Download or read book The Empirics of Exchange Rate Regimes and Trade written by Mr.Charalambos G. Tsangarides and published by International Monetary Fund. This book was released on 2010-02-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of exchange rate regimes on bilateral trade while differentiating the effects of "words" and "deeds". Our findings-based on an extended database for de jure and de facto exchange rate classifications-show that while fixed exchange rate regimes increase trade, there is no systematic difference in the effects of policy announcements versus actions to maintain exchange rate stability. The trade generating effect of more stable exchange rate regimes is however more pronounced when words and actions are aligned, both in the short and long-run. Policy credibility therefore plays an important role in determining the effects of de jure and de facto exchange rate arrangements such that deviations between the two could be costly. In addition, we find evidence that (i) the impact of hard pegs such as currency unions is broadly similar to that of conventional pegs; (ii) the currency union and direct peg effects evolve over time; and (iii) the effects of more stable regimes are heterogeneous across country groups.
Download or read book Noise Trading and Exchange Rate Regimes written by Andrew Kenan Rose and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both the literature and new empirical evidence show that exchange rate regimes differ primarily by the noisiness of the exchange rate, not by measurable macroeconomic fundamentals. This motivates a theoretical analysis of exchange rate regimes with noise traders. The presence of noise traders can lead to multiple equilibria in the foreign exchange market. The entry of noise traders alters the composition of the market and generates excess exchange rate volatility, since noise traders both create and share the risk associated with exchange rate volatility. In such circumstances, monetary policy can be used to lower exchange rate volatility without altering macroeconomic fundamentals.
Download or read book Exchange Rate Policies written by Charles Engel and published by DIANE Publishing. This book was released on 2010-08 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Modern macroeconomic theory teaches us new lessons about exchange rates: Currency depreciations or appreciations that change the relative competitiveness of producers in different countries are undesirable from a global perspective if they lead to relative prices that do not reflect the true relative costs of production. ¿External balance¿ does not mean that trade balances should be zero, but rather that global resources are allocated efficiently. The implications of this insight for the role of the exchange rate in monetary policy are explored here. Some of the traditional arguments for purely floating exchange rates are challenged by this approach. Also briefly considers sterilized intervention and comments on the role of international reserves.
Download or read book Exchange Rates Trade and the U S Economy written by John Tirman and published by . This book was released on 1985 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: These essays review recent advances in exchange rate analysis and new empirical analysis of the behavior of exchange rates and their effects on international trade and the U.S. economy. The first section deals with the determination of exchange rates and their alleged volatility and disequilibrium levels. The second section concerns the effects of flexible exchange rates on international trade, and the third treats the macroeconomic linkages between economies and international influences on the U.S. economy. ISBN 0-88410-948-8 : $39.95.
Download or read book Exchange Rate Regime Choice written by Mr.Robert P. Flood and published by International Monetary Fund. This book was released on 1991-09-01 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally the choice of exchange rate regime has been seen as a second-best policy choice, which can be directed toward mitigating the distortionary effects of price or information rigidities. In this paradigm the optimal degree of exchange rate flexibility is found to depend of the source and nature of shocks hitting an economy. More recent literature views the exchange rate as a widely and frequently seen manifestation of government policy with careful exchange-rate management emerging as a tool that can enhance shaky policy credibility.
Download or read book Exchange Rate Regimes in the Modern Era written by Michael W. Klein and published by MIT Press. This book was released on 2012-08-24 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of the operation and consequences of exchange rate regimes in an era of increasing international interdependence. The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice of its exchange rate regime, between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy, trade, and macroeconomic outcomes, and is the subject of both academic and policy debate. In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international interdependence. Michael Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period since 1973, which followed the Bretton Woods era of 1945–72 and the pre-World War I gold standard era. Klein and Shambaugh offer a comprehensive, integrated treatment of the characteristics of exchange rate regimes and their effects. The book draws on and synthesizes data from the recent wave of empirical research on this topic, and includes new findings that challenge preconceived notions.
Download or read book Exchange Rate Regimes written by Atish R. Ghosh and published by MIT Press. This book was released on 2002 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: An empirical study of exchange rate regimes based on data compiled from 150 member countries of the International Monetary Fund over the past thirty years. Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early 1970s, countries have adopted a wide variety of regimes, ranging from pure floats at one extreme to currency boards and dollarization at the other. While a vast theoretical literature explores the choice and consequences of exchange rate regimes, the abundance of possible effects makes it difficult to establish clear relationships between regimes and common macroeconomic policy targets such as inflation and growth. This book takes a systematic look at the evidence on macroeconomic performance under alternative exchange rate regimes, drawing on the experience of some 150 member countries of the International Monetary Fund over the past thirty years. Among other questions, it asks whether pegging the exchange rate leads to lower inflation, whether floating exchange rates are associated with faster output growth, and whether pegged regimes are particularly prone to currency and other crises. The book draws on history and theory to delineate the debate and on standard statistical methods to assess the empirical evidence, and includes a CD-ROM containing the data set used.
Download or read book Friedman Redux written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 2014-08-08 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Milton Friedman argued that flexible exchange rates would facilitate external adjustment. Recent studies find surprisingly little robust evidence that they do. We argue that this is because they use composite (or aggregate) exchange rate regime classifications, which often mask very heterogeneous bilateral relationships between countries. Constructing a novel dataset of bilateral exchange rate regimes that differentiates by the degree of exchange rate flexibility, as well as by direct and indirect exchange rate relationships, for 181 countries over 1980–2011, we find a significant and empirically robust relationship between exchange rate flexibility and the speed of external adjustment. Our results are supported by several “natural experiments” of exogenous changes in bilateral exchange rate regimes.
Download or read book Exchange Rate Overvaluation and Trade Protection written by Howard J. Shatz and published by World Bank Publications. This book was released on 2000 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Lessons from world experience about the consequences of exchange rate overvaluation (the frequent cause of trade crises), the consequences of trying to defend an overvalued exchange rate, and the most appropriate policies for resolving an overvaluation"--Cover.
Download or read book The Exchange Rate Regime and the International Trade written by Romulus-Catalin Damaceanu and published by LAP Lambert Academic Publishing. This book was released on 2010 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: The analysis of complex relation between the exchange rate regime and the international trade is done based on the next methodological principles: 1) The analysis of pure theory of international trade; 2) The analysis of the main theoretical approaches of the international trade taking into consideration the monetary factor; 3) A historical analysis of the relation between the exchange rates regime and the international trade; 4) The mathematical modelling of relation between the exchange rate and the international trade. The process of modelling will follow the next steps: a) Defining the object of research (the relation exchange rate regime-the international trade) and the precise task of the model (to find an exchange rate regime in order to obtain an optimal volume of the international trade); b) Describing the concepts, the indicators and other relevant information; c) Studying and selecting of the main elements and connections of the researched phenomenon; d) Elaborating the hypothesis and the restrictions of the factors and of the entire studied phenomenon; e) Determining the criteria of the most efficient variant; f) Constructing the model.
Download or read book Exchange Rate Policy and International Monetary Reform written by United States. Congress. House. Committee on Banking, Currency and Housing. Subcommittee on International Trade, Investment and Monetary Policy and published by . This book was released on 1975 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Regime Considerations in an Oil Economy written by Oya Celasun and published by International Monetary Fund. This book was released on 2003-03-04 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a brief overview of the evolution of exchange rate policy in the Islamic Republic of Iran from 1993 to 2002 and reviews the basic criteria for the choice of the exchange rate regime in the medium term. The analysis highlights the merits of an intermediate regime which would allow the authorities to smooth out excessive short-term exchange rate fluctuations while letting nominal exchange rate movements facilitate real exchange rate adjustments called for by major oil price shocks.
Download or read book Exchange Rates and Economic Policy in the 20th Century written by Derek H. Aldcroft and published by Routledge. This book was released on 2017-07-05 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: The themes of this study are the exchange rate regimes chosen by policy makers in the twentieth century, the means used to maintain these regimes, and the impact of these decisions on individual national economies and the world economy in general. The book draws heavily on new research showing the lessons and the legacy left for policy makers by the gold standard and the attempt at its resurrection in the 1920s. In examining issues such as the gold exchange standard, the gold bullion standard, the experience of floating exchange rates, the Bretton Woods arrangements, the EMS and the ERM, and the Currency Board approach, there is a conscious attempt to draw out the relevance of history for policy makers now.
Download or read book Choosing Exchange Regimes in the Middle East and North Africa written by International Monetary Fund and published by International Monetary Fund. This book was released on 2003-09-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the exchange regimes of five emerging market countries in the Middle East and North Africa region-Egypt, Jordan, Lebanon, Morocco, and Tunisia-and one oil-exporting country-Iran-to see whether they need to consider adopting more flexible arrangements as they further open their economies to trade and capital flows.
Download or read book Currency Conflict and Trade Policy written by C. Fred Bergsten and published by Columbia University Press. This book was released on 2017-06-27 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conflicts over currency valuations are a recurrent feature of the modern global economy. To strengthen their international competitiveness, many countries resort to buying foreign currencies to make their exports cheaper and their imports more expensive. In the first decade of the 21st century, for example, China's currency manipulation practices were so flagrant that they produced a backlash in the United States and other trading partners, prompting threats of retaliation. How damaging is the practice of currency manipulation—and how extensive is the problem? This book by C. Fred Bergsten and Joseph E. Gagnon—two leading experts on trade, investment, and the effects of currency manipulation—traces the history, causes, and effects of currency manipulation and analyzes a range of policy responses that the United States could adopt. The book is an indispensable guide to a complex and serious problem and what might be done to solve it.
Download or read book China s Exchange Rate Regime and Its Effects on the U S Economy written by United States. Congress. House. Committee on Financial Services. Subcommittee on Domestic and International Monetary Policy, Trade, and Technology and published by . This book was released on 2004 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Policy and Exchange Rate Issues in the Former Soviet Union written by Warner Max Corden and published by World Bank Publications. This book was released on 1992 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: One approach to trade policy among the former Soviet republics is to have no trade policy - to have completely free trade with convertibility for current account transactions. Trade policy should be transparent. Any tariff and export tax structures should be simple. Quantitative controls should be avoided. And no barriers to existing trade between the republics should be introduced.
