Download or read book Changes in Exchange Rates in Rapidly Developing Countries written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2007-12-01 with total page 466 pages. Available in PDF, EPUB and Kindle. Book excerpt: The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central component in the economic policy of developing countries and a key factor affecting economic growth. Historically, most developing nations have employed strict exchange rate controls and heavy protection of domestic industry-policies now thought to be at odds with sustainable and desirable rates of economic growth. By contrast, many East Asian nations maintained exchange rate regimes designed to achieve an attractive climate for exports and an "outer-oriented" development strategy. The result has been rapid and consistent economic growth over the past few decades. Changes in Exchange Rates in Rapidly Developing Countries explores the impact of such diverse exchange control regimes in both historical and regional contexts, focusing particular attention on East Asia. This comprehensive, carefully researched volume will surely become a standard reference for scholars and policymakers.

Download or read book Fundamental Determinants of Exchange Rates written by Jerome L. Stein and published by Oxford University Press. This book was released on 1997 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book greatly enhances our understanding of the behavior of real exchange rates. It provides an elegant model based on a solid theoretical foundation that links real exchange rates to their fundamental economic determinants and takes proper account of stock and flow considerations. The authors provide a masterful account of how changes in productivity and thrift affect the real exchange rate, and show that the long-run impact depends crucially on whether the change reflects the former fundamental (investment) or the latter (consumption). The empirical implementation uses state-of-the-art cointegration and error correction methodologies that are eminently well suited to capture the short-run adjustment of the real exchange rate to its medium- to long-run equilibrium value. The empirical results are extremely encouraging, as the economic fundamentals identified by the authors can explain a substantial part of the movement in the real exchange rate of a number of countries."--Peter Clark, International Monetary Fund

Download or read book Economic Adjustment and Exchange Rates in Developing Countries written by Sebastian Edwards and published by University of Chicago Press. This book was released on 2007-12-01 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt: In spite of the attention paid exchange rates in recent economic debates on developing countries, relatively few studies have systematically analyzed in detail the various ramifications of exchange rate policy in these countries. In this new volume from the National Bureau of Economic Research, leading economists use rigorous models to tackle various exchange rate issues, while also illuminating policy implications that emerge from their analyses. The volume, divided into four main sections, addresses: the role of exchange rates in stabilization programs and the adjustment process; the importance of exchange rate policy during liberalization reform in developing countries; exchange rate problems relevant and unique to developing countries, illustrated by case studies; and the problems defining, measuring, and identifying determinants of real exchange rates. Authors of individual papers examine the relation between commercial policies and exchange rates, the role of exchange rate policy in stabilization programs, the effectiveness of devaluations as a policy tool, and the interaction between exchange rate terms of trade an capital flow. This research will not only prove crucial to our understanding of the role of exchange rates in developing countries, but will clearly set the standard for future work in the field.

Download or read book On the Long run Determinants of Real Exchange Rates for Developing Countries written by Imed Drine and published by . This book was released on 2003 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On the Long run Determinants of Real Exchange Rates for Developing Countries written by Imed Drine and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On the long run determinants of real exchange rates for developing countries Evidence from Africa Latin America and Asia William Davidson Working Paper number 571 May 2003 written by Imed Drine and Christophe Rault and published by . This book was released on 2003 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Real and Monetary Determinants of Real Exchange Rate Behavior written by Sebastian Edwards and published by . This book was released on 1988 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a dynamic model of real exchange rate behavior in developing countries. A three goods economy (exportables, importables and nontradables) is considered. Residents of this country hold domestic and foreign assets, and there is a dual exchange rate regime. There is a government that consumes importables and nontradables. A distinction is made between equilibrium and disequilibrium movements of the RER. The determinants of real exchange rate misalignment are studied with emphasis placed on the role of devaluations and balance of payments crisis. The implications of the model are tested using data for 12 developing countries. The results obtained are generally favorable for the model. The issue of RER stationarity is also analyzed.

Download or read book Real Exchange Rate Movements in Developed and Developing Economies written by Taya Dumrongrittikul and published by . This book was released on 2013 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of this thesis is to combine economic theory and empirical analysis in an effort to understand the dynamic effects of real exchange rate determinants, policies and global factors on real exchange rates. This thesis comprises three related essays.The first essay examines the validity of the Balassa-Samuelson hypothesis (BSH). This study introduces a new approach for classifying traded and non-traded industries which allows for country-specific heterogeneity and trade endogeneity, and then uses this classification in the construction of a model that allows for the Balassa-Samuelson effect. We find that in developed countries, productivity growth in traded sectors leads to a real depreciation, inconsistent with the BSH; however, higher economic growth will be followed by a real appreciation. The results of developing countries support the BSH, although persistence profiles show slow speeds of convergence.The second essay extends the analysis into a general model of real exchange rates. It investigates the impact of trade liberalisation, productivity growth, monetary policy and government consumption on real exchange rates in four panels of countries consisting of European, non-European developed, Asian developing and non-Asian developing countries. The analysis is based on a panel structural vector error correction model augmented with foreign variables, and a Bayesian approach is used to implement sign restrictions with a penalty function for undertaking impulse response analysis. We find that trade liberalisation generates depreciation and higher government consumption causes persistent appreciation. A contractionary monetary policy shock has only short-run impact on real exchange rates, corresponding to the long-run neutrality of monetary policy. Traded-sector productivity gains cause an impact appreciation in Asian developing countries and lead to persistent appreciation in non-Asian developing countries, whereas the shocks induce long-run depreciation in developed countries, in line with the results in the first essay.The third essay combines the four panels of countries into a Global Vector Autoregressive (GVAR) model to examine how real exchange rates and key macroeconomic variables respond to an oil price shock, a US monetary policy shock and simultaneous shocks to productivity in four large Asian emerging economies. Using a sign restricted impulse response approach, we find that an oil price shock causes a depreciation of the US dollar as well as economic recession and excessive inflation in the global economy. The way in which monetary policy deals with the shock matters for the long-run level of economic activity. An unexpected US monetary tightening causes an appreciation of the US dollar and a fall in real GDP and inflation over the long run. The monetary policy reaction to this change seems to be stronger in developing countries than in developed countries. Simultaneous shocks to traded-sector productivity in China, India, Korea and Indonesia induce a rise in real GDP and currency appreciation in these four countries. Meanwhile, many Asian countries benefit from the shocks with higher productivity and GDP. The value of their currency is likely to appreciate.

Download or read book Real Exchange Rates In Developing Countries written by Mr.Mohsin S. Khan and published by International Monetary Fund. This book was released on 2004-10-01 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new evidence on this issue based on a panel data sample of 16 developing countries. The paper finds that the traded-nontraded productivity differential is a significant determinant of the relative price of nontraded goods, and the relative price in turn exerts a significant effect on the real exchange rate. The terms of trade also influence the real exchange rate. These results provide strong verification of Balassa-Samuelson effects for developing countries.

Download or read book Exchange Rate Policy the Real Exchange Rate and Inflation written by Miguel Alberto Kiguel and published by . This book was released on 1992 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Attempts to achieve real depreciation through continuous devaluation or by accelerating the rate of crawl - when not supported by changes in other policies and in the underlying conditions - usually end up increasing inflation, yet remain ineffective in changing the real exchange rate.

Download or read book Long run Determinants of East Asian Real Exchange Rates written by Menzie David Chinn and published by . This book was released on 1998 with total page 3 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Terms of Trade Commercial Policy and the Black Market for Foreign Exchange written by Ibrahim Elbadawi and published by . This book was released on 1989 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Macroeconomic Implications of Real Exchange Rate Targeting in Developing Countries written by Peter J. Montiel and published by . This book was released on 1991 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries written by Mr.Peter Montiel and published by International Monetary Fund. This book was released on 1993-08-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is often argued that the parallel market premium is a useful indicator of real exchange rate misalignment in developing countries. The empirical evidence does not, however, suggest the existence of a robust correlation between these two endogenous variables that is independent of the nature of economic shocks and various structural relationships in the economy. This paper presents an analytical investigation of the reliability of the parallel market premium as an indicator of real exchange rate misalignment in the context of a fully optimizing model of a developing country. The analysis suggests that one should exercise caution in drawing inferences about the sign and magnitude of real exchange rate misalignment from the parallel market premium.

Download or read book Long Run Exchange Rate Dynamics written by Karl Friedrich Habermeier and published by International Monetary Fund. This book was released on 1999-04 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investigates some traditional propositions in exchange rate economics through an empirical multi-country analysis and relies on real effective (trade weighted) exchange rates, which in principle are more likely to conform to PPP than simple bilateral real exchange rate indices.

Download or read book Exchange Rate Misalignment in Developing Countries written by Sebastian Edwards and published by Johns Hopkins University Press. This book was released on 1988 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.

Download or read book External Performance in Low Income Countries written by Mr.Alessandro Prati and published by International Monetary Fund. This book was released on 2011-03-15 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assessments of exchange rate misalignments and external imbalances for low-income countries are challenging because methodologies developed for advanced and emerging economies cannot be automatically applied to poorer nations. This paper uses a large database, unique in the set of indicators and number of countries it covers, to estimate the relationship in low-income countries between a set of fundamentals in the medium to long term and the real effective exchange rate, the current account, and the net external assets position.