The Optimal Choice Of Exchange Rate Regime
DOWNLOAD
Download The Optimal Choice Of Exchange Rate Regime PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get The Optimal Choice Of Exchange Rate Regime book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Exchange Rate Regime Choice
DOWNLOAD
Author : Mr.Robert P. Flood
language : en
Publisher: International Monetary Fund
Release Date : 1991-09-01
Exchange Rate Regime Choice written by Mr.Robert P. Flood and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1991-09-01 with Business & Economics categories.
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.
The Optimal Choice Of Exchange Rate Regime
DOWNLOAD
Author : Michael B. Devereux
language : en
Publisher:
Release Date : 1999
The Optimal Choice Of Exchange Rate Regime written by Michael B. Devereux and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999 with Foreign exchange rates categories.
We investigate the choice of exchange-rate regime fixed or floating in a dynamic, intertemporal general equilibrium framework. Our framework extends Devereux and Engel (1998) by investigating the implications of internationalized production. We examine the role of price-setting -- whether prices are set in the currency of producers or the currency of consumers in determining the optimality of exchange-rate regimes in an environment of uncertainty created by monetary shocks. We find that when prices are set in producers' currencies, floating exchange rates are preferred when the country is large enough, or not too risk averse. On the other hand, floating exchange rates are always preferred when prices are set in consumers' currencies because floating exchange rates allow domestic consumption to be insulated from foreign monetary shocks. The gains from floating exchange rates are greater when there is internationalized production in this case
Fixed Vs Floating Exchange Rates
DOWNLOAD
Author : Michael B. Devereux
language : en
Publisher:
Release Date : 1998
Fixed Vs Floating Exchange Rates written by Michael B. Devereux and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998 with Consumption (Economics) categories.
We investigate the welfare properties of fixed and floating exchange rate regimes in a two-country, dynamic, infinite-horizon model with agents optimizing in an environment of uncertainty created by monetary shocks. The optimal exchange rate regime may depend on whether prices are set in the currency of producers or the currency of consumers. When prices are set in consumers' currency, the variance of home consumption is not influenced by foreign monetary variance under floating exchange rates, while there is transmission of foreign disturbances under floating rates if prices are set in producers' currencies, or under fixed exchange rates. An important feature of the model is the exchange rate regime affects not just the variance of consumption and output, but also their average levels. When prices are set in producer's currency, as in the traditional framework, we find that there is a trade-off between floating and fixed exchange rates. Exchange rate adjustment under floating rates allows for a lower variance of consumption, but exchange rate volatility itself leads to a lower average level of consumption. When prices are set in consumer's currency, floating exchange rates always dominate fixed exchange rates.
Optimal And Sustainable Exchange Rate Regimes
DOWNLOAD
Author : Masahiro Kawai
language : en
Publisher: International Monetary Fund
Release Date : 1992-11-01
Optimal And Sustainable Exchange Rate Regimes written by Masahiro Kawai and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1992-11-01 with Business & Economics categories.
This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares noncooperative equilibria under different assumptions of monetary policy credibility and different exchange rate regimes. Using a two-stage game approach to the strategic choice of policy instruments, it identifies optimal (in a Pare to sense) and sustainable (self-enforcing) exchange rate regimes. The theoretical results indicate that the choice of such regimes depends fundamentally on the credibility of monetary policy commitments by the two countries’ authorities. The nature of shocks to the economies and the substitutability between goods produced in the two countries also play some role. International coordination on instrument choice is necessary to design optimal and sustainable exchange rate regimes.
Exchange Rate Management In Interdependent Economies
DOWNLOAD
Author : Silke Fabian
language : en
Publisher: Springer Science & Business Media
Release Date : 2012-12-06
Exchange Rate Management In Interdependent Economies written by Silke Fabian and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-12-06 with Business & Economics categories.
With the breakdown of the Bretton Woods System and the begin of floating between the major currencies, central banks have been formally freed from their obligations to defend the fixed parities of bilateral exchange rates. Nev ertheless, since then there have been countless occasions on which monetary authorities have officially intervened in the foreign exchange market. More over, numerous studies indicate that exchange rates have been much more variable than originally anticipated - in real and in nominal, as well as in short run and longer run measures (see for example Hesse and Braasch [1989] and Marston [1988]). Through the experience of high real sector costs, the topic of optimal exchange rate management soon reentered policy discussions. The term exchange rate management encompasses both the choice of ex change rate regime as well as active intervention policies within the given 1 system. Much of the recent policy discussion has focussed on the first issue, in particular proposals of how to reform the present international monetary order. And new systems such as the European Monetary System (EMS) have emerged for subgroups of countries. However, the question of finding the optimal system has not yet been resolved.
Fixed Vs Floating Exchange Rates How Price Setting Affests The Optimal Choice Of Exchange Rate Regime
DOWNLOAD
Author : Michael B. Devereux
language : en
Publisher:
Release Date : 1998
Fixed Vs Floating Exchange Rates How Price Setting Affests The Optimal Choice Of Exchange Rate Regime written by Michael B. Devereux and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998 with categories.
The Political Choice Of The Optimal Exchange Rate Regime
DOWNLOAD
Author : L. J. Ruland
language : en
Publisher:
Release Date : 1992
The Political Choice Of The Optimal Exchange Rate Regime written by L. J. Ruland and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1992 with categories.
Too Sensational
DOWNLOAD
Author : W. Max Corden
language : en
Publisher: MIT Press
Release Date : 2004-08-20
Too Sensational written by W. Max Corden and has been published by MIT Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004-08-20 with Business & Economics categories.
Most of the literature on exchange rate regimes has focused on the developed countries. Since the recent crises in emerging markets, however, attention has shifted to the choice of exchange rate regimes for developing countries, especially those that are more integrated into the world capital markets. In Too Sensational, W. Max Corden presents a systematic and accessible overview of the choice of exchange rate regimes. Reviewing many types of regimes, he shows how the choice of an exchange rate regime is related to both fiscal policy and trade policy. Building on the theory of optimum currency areas, Corden develops an analytic framework of three approaches (nominal anchor, real targets, and exchange rate stability) and three polar exchange rate regimes (absolutely fixed, pure floating, and fixed but adjustable). He considers all other regimes to be mixtures of two or three of the polar regimes. Beginning with theory and later turning to case studies of countries in Asia, Europe, and Latin America, Corden focuses on how economies react to negative and positive shocks under various exchange rate regimes. He examines in particular the Asian and Latin American currency crises of the 1990s. He concludes that although "too sensational" crises have discredited fixed but adjustable regimes, the extremes of absolutely fixed regimes or pure floating regimes need not be chosen.
Fixed Floating Exchange Rates
DOWNLOAD
Author : Michael B. Devereux
language : en
Publisher:
Release Date : 1998
Fixed Floating Exchange Rates written by Michael B. Devereux and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998 with categories.
Exchange Rate Regimes
DOWNLOAD
Author : Atish R. Ghosh
language : en
Publisher: MIT Press
Release Date : 2002
Exchange Rate Regimes written by Atish R. Ghosh and has been published by MIT Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2002 with Business & Economics categories.
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.