Download or read book Exchange Rate Volatility in the Eurozone written by Oscar Bajo-Rubio and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The current economic crisis has witnessed a strong deceleration in the growth of international trade. This has been even greater in the cases of the European Union and the eurozone, where the rates of export growth have even reached negative figures. In this paper, the authors examine to which extent exchange rate volatility might account for the drop in the rate of growth of exports in the eurozone since the start of the crisis. To that end, they estimate export functions, augmented to include several measures of exchange rate volatility, for the four largest economies of the eurozone, i.e., France, Germany, Italy and Spain, for the period 1994:1–2014:4. In the empirical application, the authors make use of two alternative measures for exchange rate volatility, i.e., (i) the Standard deviation and (ii) the conditional variance from the GARCH methodology, of the change in the logarithm of the exchange rate, for both nominal and real exchange rates, and in the latter case computed using as deflators both Export prices and unit labour costs. The empirical results show no clear-cut evidence on the impact of exchange rate volatility on the exports of the countries analysed, suggesting that financial markets were developed enough so that exchange rate volatility does not hinder the evolution of exports.
Download or read book Exchange Rate Fluctuations and Trade Flows written by Mr.Giovanni Dell'Ariccia and published by International Monetary Fund. This book was released on 1998-08-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the effects of exchange rate volatility on bilateral trade flows. Through use of a gravity model and panel data from western Europe, exchange rate uncertainty is found to have a negative effect on international trade. The results seem to be robust with respect to the particular measures representing exchange rate uncertainty. Particular attention is reserved for problems of simultaneous causality. The negative correlation between trade and bilateral volatility remains significant after controlling for the simultaneity bias. However, a Hausman test rejects the hypothesis of the absence of simultaneous causality.
Download or read book Exchange Rate Volatility and Euro Area Imports written by Robert Anderton and published by . This book was released on 2001 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Real Exchange Rate Volatility on Sectoral Investment written by Bahar Erdal and published by Routledge. This book was released on 2017-05-18 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.
Download or read book Exchange Rate Volatility and Euro Area Imports written by Robert Anderton and published by . This book was released on 2001 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book In Or Out written by Richard E. Baldwin and published by Centre for Economic Policy Research. This book was released on 2006 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: Annotation. "This report marshals the best available empirical evidence on the size and nature of the euro's pro-trade effects and groups the policy implications of these findings into two broad categories - lessons for potential joiners; and lessons for the euro area's current members and its economic management."--Jacket.
Download or read book Common Volatility Trends in the Central and Eastern European Currencies and the Euro written by Marcus Pramor and published by International Monetary Fund. This book was released on 2006-09 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: How much convergence has been achieved between Central and Eastern European (CEE) economies and the eurozone? We explore this question by comparing long-run volatility trends in CEE currencies and the euro. We find that these trends are closely correlated, pointing to convergence in the economic and financial structures of these economies. Nonetheless, the degree of commonality remains weaker than what had been found for major European currencies before the introduction of the euro. Spillovers of volatility across regional markets appear to have diminished over time, with the exception of the Hungarian forint, which remains a source of volatility shocks to regional currencies.
Download or read book Exchange Rate Volatility and Trade Flows Some New Evidence written by International Monetary Fund and published by International Monetary Fund. This book was released on 2004-05-19 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Download or read book European Monetary Union and Exchange Rate Dynamics written by Paul J.J. Welfens and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: The creation of the European Central Bank and the Euro have brought new challenges to EU integration and economic policy. This book looks into issues of monetary and factor market policies. The analysis presents new theoretical and empirical research on the current decline of the Euro. Issues regarding exchange rate policies and international economic relations are also addressed.
Download or read book Euro Exchange Rates written by Leonor Coutinho and published by . This book was released on 1999 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book European Currency Volatility after Economic and Monetary Union written by Richard Heaney and published by . This book was released on 2003 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate and institutional foreign exchange market participants are sensitive to the effects of volatility on their day-to-day trading activities and so an important question is whether the introduction of the euro had an impact on foreign exchange rate volatility. Rather than compare individual currencies with the Euro we compare the pre 1999 volatility of three synthetic euro exchange rate series with the volatility of the actual euro starting from the 1st of January 1999. Volatility tests are undertaken within a GARCH framework. There is evidence of a statistically significant increase in transatlantic exchange rate volatility following the introduction of the euro. Acknowledgements: We would like to express our thanks to the staff in the School of Finance and Applied Statistics at the ANU, particularly Dr Chris Bilson for his support and guidance.
Download or read book The Periphery of the Euro written by Philippe De Lombaerde and published by Routledge. This book was released on 2017-11-30 with total page 391 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the monetary and exchange rate policies in Eastern European countries not covered by the current EU enlargement process. Specifically the book examines the major CIS countries: Belarus, Kazakhstan, Russia and the Ukraine. (The new Eastern European EU members are also frequently referenced for comparison purposes.) Current and prospective monetary policy options are considered and the applicability of the EU monetary integration experience for the CIS countries and the prospects of a monetary re-unification around the Russian Federation are assessed. This is the first book to formally deal with many of these questions.
Download or read book Effect of Exchange Rate Volatility on Trade in Euro Mediterranean Countries written by Rima Mounir El Kadi and published by . This book was released on 2003 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Volatility and the Euro written by John Cotter and published by . This book was released on 2007 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: With Ireland joining European Monetary Union (EMU) and adopting the euro, exchange rate risk between participating Member States is gone.1 However, as is known, this new currency will continue to face exchange rate risk, and any general reduction of volatility on a day to day basis for Irish economic agents neglects to take account of possible extreme problems with the euro. In this paper we will see that even though the euro is a managed, or irrevocably fixed, system, trade between Ireland and non-members, most notably the UK and the US, involves two separate currencies. This trade will require currency trading, leading to the possibility of large downside exposure to exchange rate risk for Irish firms. In addition, dealings in capital markets may be inhibited thereby reducing the funds available for investment purposes.The issue of currency volatility is important for policy-makers as high levels will generally reduce economic growth. Causes of an economic slowdown may be due to a reduction in investment, or firms setting prices too high in an attempt to satisfy their risk averseness. Two recent examples of exchange rate volatility show the downside implications of large currency changes. First is the experience of the Mexican peso disaster that reduced that country's real output by 6 percent in 1995 (Source). 2 Second, with more relevance to the Irish economy, is the 1992/93 crises of the EU Exchange Rate Mechanism (ERM) where failed attempts to avert forced devaluations cost all participating members between 100 billion pounds and 150 billion pounds (Source). These two examples show the power of speculators in exchange rate trading, and there is no reason to believe that the creation of a single currency will eliminate this type of activity in the foreign exchange markets.The methodological approach relied on in this paper is two-fold. First, conditional volatility is measured using a Generalised AutoRegressive Conditional Heteroskedasticity (GARCH) model. This will demonstrate the extent to which exchange rate movements have varied over time, with periods of low and high volatility. Second, exchange rate fluctuations are examined using Extreme Value Theory (EVT). This in essence determines exchange rate fluctuations allowing for the true data characteristics to be imbedded in the calculations.
Download or read book Exchange Rate Pass through and the Welfare Effects of the Euro written by Michael B. Devereux and published by . This book was released on 1999 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the implications of the European single currency within a simple sticky price intertemporal model. The main issue we focus on is how the euro may alter the responsiveness of consumer prices to exchange rate changes. Our central conjectures is that the acceptance of the euro will lead European prices to become more insulated from exchange-rate volatility, much the way U.S. consumer prices already are. We show that this has profound consequences for both the volatility and levels of macroeconomic aggregates in both the U.S. and Europe. We find that European welfare is enhanced, and, more surprisingly U.S. shares in Europe's good fortune. Alternative assumptions about how pricing behavior will change lead to different conclusions, but in all cases we can derive specific implications for expected levels and volatility of macroeconomic varialbes.
Download or read book Exchange Rate Volatility and Optimal Currency Area Theory written by Robert W. Dobson and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Currency Competition and Foreign Exchange Markets written by Philipp Hartmann and published by Cambridge University Press. This book was released on 1998-12-10 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: Currency Competition and Foreign Exchange Markets by Philipp Hartmann of the European Central Bank is a major theoretical and empirical study of international currencies, which focuses on the role which the Euro will play in the international monetary and financial system along with the US dollar and the Japanese yen. In contrast to much of the existing literature which approaches the subject from a macroeconomic perspective, Philipp Hartmann develops a theoretical model which uses game theory, time series and panel econometrics, and links financial markets analysis with transaction cost economics. The results of Currency Competition and Foreign Exchange Markets are presented with reference to political, historical and institutional considerations, and provide accessible answers to policy-makers, business people and scholars worldwide. The sections on Spread Estimation and Multiple Vehicles with Inter-Dealer Price and Entry Competition will be of particular use for finance professionals.
