The Stabilizing Effect Of The Ermon Exchange Rates And Interest Rates
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The Stabilizing Effect Of The Ermon Exchange Rates And Interest Rates
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Author : Michael J. Artis
language : en
Publisher:
Release Date : 1993
The Stabilizing Effect Of The Ermon Exchange Rates And Interest Rates written by Michael J. Artis and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1993 with categories.
This paper applies nonparametric test procedures to test for a shift in the volatility of nominal and real exchange rates for ERM members and nonmembers. The results imply a reduction in volatility for the ERM members, especially during the second half of the period of operation of the ERM. We also demonstrate that this enhanced stability was not bought at the expense of increased interest rate volatility. The issue of interest rate volatility during sterling's participation in the ERM is also examined.
The Stabilizing Effect Of The Ermon Exchange Rates And Interest Rates
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Author : Mr.Mark P. Taylor
language : en
Publisher: International Monetary Fund
Release Date : 1993-08-01
The Stabilizing Effect Of The Ermon Exchange Rates And Interest Rates written by Mr.Mark P. Taylor 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 1993-08-01 with Business & Economics categories.
This paper applies nonparametric test procedures to test for a shift in the volatility of nominal and real exchange rates for ERM members and nonmembers. The results imply a reduction in volatility for the ERM members, especially during the second half of the period of operation of the ERM. We also demonstrate that this enhanced stability was not bought at the expense of increased interest rate volatility. The issue of interest rate volatility during sterling’s participation in the ERM is also examined.
The Behavior Of Real Interest Rates In Exchange Rate Based Stabilization Programs
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Author : Pierre-Richard Agénor
language : en
Publisher: International Monetary Fund
Release Date : 1994-06
The Behavior Of Real Interest Rates In Exchange Rate Based Stabilization Programs written by Pierre-Richard Agénor 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 1994-06 with Business & Economics categories.
This paper examines the behavior of real interest rates in exchange-rate based stabilization programs. The analysis is based on a model with imperfect capital mobility and optimizing agents. A permanent reduction in the devaluation rate is first shown to have an ambiguous effect on real interest rates on impact. The analysis is then extended to consider a stabilization program characterized by an initial reduction in the rate of devaluation of the nominal exchange rate, and the announcement of a future increase in income taxes. The impact effect on real interest rates is shown to depend upon the degree of credibility of the announcement. Real interest rates may fall if agents do not believe that taxes will be raised, and rise if the future tax reform is sufficiently credible.
Does Monetary Policy Stabilize The Exchange Rate Following A Currency Crisis
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Author : Ilan Goldfajn
language : en
Publisher: International Monetary Fund
Release Date : 1999-03
Does Monetary Policy Stabilize The Exchange Rate Following A Currency Crisis written by Ilan Goldfajn 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 1999-03 with Business & Economics categories.
Tight money in a given financial crisis can serve either to attract funds or to repel them, depending on the expectations that a rise in interest rates generates. With inelastic expectations, no fear of crisis or of currency depreciation, an increase in the discount rate attracts funds from abroad, and helps provide the cash needed to ensure liquidity; with elastic expectations of change - of falling prices, bankruptcies, or exchange depreciation - raising the discount rate may suggest to foreigners the need to take more funds out rather than in.
The Exchange Rate System
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Author : John Williamson
language : en
Publisher:
Release Date : 1983
The Exchange Rate System written by John Williamson and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1983 with Business & Economics categories.
Now available directly from: IIE 11 Dupont Circle, NW Washington, DC 20036 Tel: (202) 328-9000 This book examines the system of flexible exchange rates, estimating misalignments of major currencies and analyzing costs and benefits of volatility and deviations from equilibrium. It considers target zones, reference rates, and other alternatives for stabilizing the system.
Limits Of Floating Exchange Rates
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Author : Mr.Sebastian Weber
language : en
Publisher: International Monetary Fund
Release Date : 2011-02-01
Limits Of Floating Exchange Rates written by Mr.Sebastian Weber 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 2011-02-01 with Business & Economics categories.
A traditional argument in favor of flexible exchange rates is that they insulate output better from real shocks, because the exchange rate can adjust and stabilize demand for domestic goods through expenditure switching. This argument is weakened in models with high foreign currency debt and low exchange rate pass-through to import prices. The present study evaluates the empirical relevance of these two factors. We analyze the transmission of real external shocks to the domestic economy under fixed and flexible exchange rate regimes for a broad sample of countries in a Panel VAR and let the responses vary with foreign currency indebtedness and import structure. We find that flexible exchange rates do not insulate output better from external shocks if the country imports mainly low pass-through goods and can even amplify the output response if foreign indebtedness is high.
The Impact Of Foreign Interest Rates On The Economy
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Author : Julian Di Giovanni
language : en
Publisher:
Release Date : 2007
The Impact Of Foreign Interest Rates On The Economy written by Julian Di Giovanni and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with Foreign exchange administration categories.
This paper explores the connection between interest rates in major industrial countries and annual real output growth in other countries. The results show that high large-country interest rates have a contractionary effect on annual real GDP growth in the domestic economy, but that this effect is centered on countries with fixed exchange rates. The paper then examines the potential channels through which large-country interest rates affect small economies. The direct monetary policy channel is the most likely channel when compared with other possibilities, such as a general capital market effect or a trade effect.
The Effects Of Real Exchange Rate Volatility On Sectoral Investment
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Author : Bahar Erdal
language : en
Publisher: Routledge
Release Date : 2017-05-18
The Effects Of Real Exchange Rate Volatility On Sectoral Investment written by Bahar Erdal and has been published by Routledge this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-05-18 with Business & Economics categories.
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.
Exchange Rate Regime Choice
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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.
Nominal Exchange Rates And Nominal Interest Rate Differentials
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Author : Mr.Francisco Nadal De Simone
language : en
Publisher: International Monetary Fund
Release Date : 1999-10-01
Nominal Exchange Rates And Nominal Interest Rate Differentials written by Mr.Francisco Nadal De Simone 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 1999-10-01 with Business & Economics categories.
This paper reexamines some unsettled theoretical and empirical issues regarding the relationship between nominal exchange rates and interest rate differentials and provides a model for the behavior of exchange rates in the long run, where interest rates are determined in the bond market. The model predicts that an increase in the interest rate differential appreciates the home currency. We test the model for the U.S. dollar against the Deutsche mark, the British pound, the Japanese yen, and the Canadian dollar. The first two pairs of exchange rates—for which purchasing power parity seems to hold—display a strong relationship with interest rate differentials.