Skip to main navigation Skip to main content
info(at)avldigital.remove-this.de
Deutsch English
Last searches

Results for *

Displaying results 1 to 20 of 20.

  1. How economic, political and institutional factors influence the choice of exchange rate regimes?
    new evidence from selected countries of the MENA region
    Author: Maraoui, Najia; Hadj Amor, Thouraya; Khefacha, Islem; Rault, Christophe
    Published: April 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 4
    Inter-library loan:
    No inter-library loan

     

    In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run random-effects ordered probit regressions of the likelihood of exchange rate regimes on potential determinants of exchange rate regimes. Three important findings emerge from the analysis. i) Political and institutional factors play an important role in determining the exchange rate regime in MENA countries: a democratic political regime and a low level of corruption increases the probability to opt for a fixed regime. While, strong governments, political stability such as less internal conflicts and more government stability, more law and order enforcement and left-wing Government decreases the probability to opt for a fixed regime. ii) Bureaucracy, independent central banks, elections, terms of trade as well as the monetary independence have no effect on the choice of exchange rate regimes. iii) Financial development is not a robust determinant of the choice of exchange rate regimes. Our results still hold when considering alternative specifications and have important implications for policy makers in MENA countries.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/263450
    Series: Discussion paper series / IZA ; no. 15234
    Subjects: exchange rate regimes; country risk; political and institutional factors; panel data; ordered probit regression; MENA
    Scope: 1 Online-Ressource (circa 37 Seiten)
  2. How economic, political and institutional factors influence the choice of exchange rate regimes?
    new evidence from selected countries of the MENA region
    Author: Maraoui, Najia; Hadj Amor, Thouraya; Khefacha, Islem; Rault, Christophe
    Published: April 2022
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 63
    Inter-library loan:
    No inter-library loan

     

    In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run random-effects ordered probit regressions of the likelihood of exchange rate regimes on potential determinants of exchange rate regimes. Three important findings emerge from the analysis. i) Political and institutional factors play an important role in determining the exchange rate regime in MENA countries: a democratic political regime and a low level of corruption increases the probability to opt for a fixed regime. While, strong governments, political stability such as less internal conflicts and more government stability, more law and order enforcement and left-wing Government decreases the probability to opt for a fixed regime. ii) Bureaucracy, independent central banks, elections, terms of trade as well as the monetary independence have no effect on the choice of exchange rate regimes. iii) Financial development is not a robust determinant of the choice of exchange rate regimes. Our results still hold when considering alternative specifications and have important implications for policy makers in MENA countries.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/260839
    Series: CESifo working paper ; no. 9709 (2022)
    Subjects: exchange rate regimes; country risk; political and institutional factors; panel data; ordered probit regression; MENA
    Scope: 1 Online-Ressource (circa 37 Seiten)
  3. Signaling virtue or vulnerability?
    the changing impact of exchange rate regimes on government bond yields
    Author: Barta, Zsófia; Baccaro, Lucio; Johnston, Alison
    Published: September 2022
    Publisher:  Max Planck Institute for the Study of Societies, Cologne, Germany

    Do exchange rate regimes affect the conditions under which developed countries borrow? This paper argues that they do, but their impact on yields depends on the prevailing macroeconomic context. When investors regard inflation as the most relevant... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    Resolving-System (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    Archiv der Max-Planck-Gesellschaft, Bibliothek
    Signature:
    Z 125 - 2022,5
    Inter-library loan:
    No inter-library loan

    Location:
    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
    Inter-library loan:
    No inter-library loan

    Location:
    Bundesverfassungsgericht, Bibliothek
    Signature:
    Online-Ressource
    Inter-library loan:
    No inter-library loan

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 31
    Inter-library loan:
    No inter-library loan

    Location:
    Universitätsbibliothek Mannheim
    Inter-library loan:
    No inter-library loan
    Location:
    Mannheimer Zentrum für Europäische Sozialforschung, Bibliothek
    Signature:
    WP/Online
    Inter-library loan:
    No inter-library loan

     

    Do exchange rate regimes affect the conditions under which developed countries borrow? This paper argues that they do, but their impact on yields depends on the prevailing macroeconomic context. When investors regard inflation as the most relevant risk to bond holdings, monetary union has a distinct advantage over floating and fixed exchange rates because of its credible in-built mechanism to control inflation. However, once default is seen as the most relevant risk, exchange rate rigidity becomes a liability due to its constraining effect on governments' ability to respond to adverse shocks. We test our argument with a moving window panel analysis for twenty-three OECD countries from 1980 to 2017. We find that before the late 2000s, inflation was penalized under floating and (to a lesser extent) fixed exchange rate regimes, but not in countries in monetary union. Since the 2010s, inflation carries no penalty under any exchange rate regime. Variables linked to default risk (debt and entitlement spending) did not affect yields under any exchange rate arrangements until the mid-2000s. Afterwards, countries in monetary union (and to a lesser extent in fixed exchange rate regimes) were significantly penalized for public debt and entitlement spending, whereas countries with floating regimes were not. Our results speak to the literatures on governments' institutional commitments and "room to move. Haben Wechselkursregime einen Einfluss auf die Konditionen, zu denen entwickelte Länder Staatsanleihen ausgeben können? Wir argumentieren in diesem Beitrag, dass dies der Fall ist, wobei ihre Wirkung auf die Anleiherenditen vom vorherrschenden makroökonomischen Kontext abhängt. Erachten Investoren Inflation als das entscheidende Risiko für Investitionen in Anleihen, so hat eine Währungsunion durch ihren glaubwürdigen integrierten Mechanismus zur Inflationskontrolle klare Vorteile gegenüber flexiblen und festen Wechselkursen. Wird jedoch ein Ausfall der Rückzahlungen als das entscheidende Risiko angesehen, werden starre Wechselkurse zum Nachteil, da sie die Fähigkeit von Regierungen, auf negative Schocks zu reagieren, verringern. Wir testen unser Argument mithilfe einer für den Zeitraum von 1980 bis 2017 mit gleitenden Zeitfenstern durchgeführten Panelanalyse von 23 OECD-Ländern. Die Ergebnisse zeigen, dass Inflation vor den späten 2000er-Jahren in flexiblen und (weniger stark) in festen Wechselkursregimen finanziell abgestraft wurde, jedoch nicht in den Ländern einer Währungsunion. Seit den 2010er-Jahren wirkt sich Inflation in keinem der Wechselkursregime auf die Renditen aus. Mit dem Ausfallrisiko verknüpfte Variablen (Staatsverschuldung und Sozialausgaben) hatten bis zur Mitte der 2000er-Jahre in keinem der Wechselkursregime einen Einfluss auf die Renditen. Danach wurden Länder in einer Währungsunion erheblich (und Länder in festen Wechselkursregimen weniger stark) für Staatsverschuldung und Sozialausgaben abgestraft, während dies bei Ländern in flexiblen Regimen nicht der Fall war. Unsere Ergebnisse tragen zur Literatur über institutionelle Selbstverpflichtungen und Handlungsspielräume von Regierungen bei."

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 21.11116/0000-000B-36A1-2
    Series: MPIfG discussion paper ; 22, 5
    Subjects: bond yields; euro; exchange rate regimes; financial markets; international political economy; Anleiherenditen; Euro; Finanzmärkte; internationale politische Ökonomie; Wechselkurssysteme
    Scope: 1 Online-Ressource (IV, 44 Seiten), Diagramme
  4. Mussa puzzle redux
    Author: Itskhoki, Oleg; Mukhin, Dmitry
    Published: 27 June 2021
    Publisher:  Centre for Economic Policy Research, London

    Access:
    Verlag (lizenzpflichtig)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    LZ 161
    Inter-library loan:
    No inter-library loan

    Location:
    Universitätsbibliothek Mannheim
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Array ; DP16301
    Subjects: exchange rate regimes; monetary non-neutrality; segmented financial markets; Monetary transmission Mechanism
    Scope: 1 Online-Ressource (circa 62 Seiten), Illustrationen
  5. Rethinking exchange rate regimes
    Author: Ilzetzki, Ethan; Reinhart, Carmen M.; Rogoff, Kenneth S.
    Published: 13 November 2021
    Publisher:  Centre for Economic Policy Research, London

    Access:
    Verlag (lizenzpflichtig)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    LZ 161
    Inter-library loan:
    No inter-library loan

    Location:
    Universitätsbibliothek Mannheim
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Array ; DP16722
    Subjects: exchange rate regimes; international monetary system; capital controls; anchorcurrencies; Exchange Rate Volatility; Triffin dilemma
    Scope: 1 Online-Ressource (circa 68 Seiten), Illustrationen
  6. Monetary policy under natural disaster shocks
    Author: Cantelmo, Alessandro; Fatouros, Nikos; Melina, Giovanni; Papageorgiou, Chris
    Published: [2024]
    Publisher:  Banca d'Italia Eurosistema, [Rom]

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    VS 450
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    Series: Temi di discussione / Banca d'Italia ; number 1443 (March 2024)
    Subjects: natural disasters; climate change; DSGE; monetary policy; exchange rate regimes
    Scope: 1 Online-Ressource (circa 75 Seiten), Illustrationen
  7. Monetary policy in Sweden after the end of Bretton Woods
    Author: Bylund, Emma; Iversen, Jens; Vredin, Anders
    Published: [2024]
    Publisher:  Sveriges Riksbank, Stockholm

    This paper discusses how monetary policy in Sweden has evolved since 1973. We provide a chronology of the different monetary policy regimes in place during the past fifty years and identify two main regimes, the pegged-but-adjustable exchange rate... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 204
    Inter-library loan:
    No inter-library loan

     

    This paper discusses how monetary policy in Sweden has evolved since 1973. We provide a chronology of the different monetary policy regimes in place during the past fifty years and identify two main regimes, the pegged-but-adjustable exchange rate regime (1973 - 1992) and the inflation targeting regime (1993 - 2022). Inflation in Sweden has been more stable under the inflation targeting regime than under both the Bretton Woods system, and the pegged-but-adjustable exchange rate regime. GDP growth was higher and more stable during the Bretton Woods System. We argue that inflation targeting was implemented according to the simple text book version only during a short period, 1999-2007. We illustrate that economic developments in Sweden have in many respects been similar to that of Denmark. Lastly, we identify and discuss recurrent themes in the discussions of monetary policy under inflation targeting.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/299287
    Series: Sveriges Riksbank working paper series ; 429
    Subjects: monetary policy; inflation targeting; exchange rate regimes
    Scope: 1 Online-Ressource (circa 63 Seiten), Illustrationen
  8. Harry Johnson's "Case for flexible exchange rates" - 50 years later
    Author: Obstfeld, Maurice
    Published: March 2020
    Publisher:  National Bureau of Economic Research, Cambridge, MA

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    W 1 (26874)
    Inter-library loan:
    Unlimited inter-library loan, copies and loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Contributor: Johnson, Harry G. (VerfasserIn des Bezugswerks)
    Language: English
    Media type: Book
    Format: Print
    Series: Working paper series / National Bureau of Economic Research ; 26874
    Subjects: Wechselkurssystem; Flexibler Wechselkurs; Internationales Währungssystem; Globale Wertschöpfungskette; Internationales Finanzsystem; exchange rate regimes; Floating Exchange Rates; international monetary system; effective lower bound; global value chains; Global financial cycle
    Scope: 32 Seiten, Illustrationen
    Notes:

    Erscheint auch als Online-Ausgabe
  9. Harry Johnson's "case for flexible exchange rates" - 50 years later
    Author: Obstfeld, Maurice
    Published: 13 March 2020
    Publisher:  Centre for Economic Policy Research, London

    Access:
    Verlag (lizenzpflichtig)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    LZ 161
    Inter-library loan:
    No inter-library loan

    Location:
    Universitätsbibliothek Mannheim
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Array ; DP14488
    Subjects: exchange rate regimes; Floating Exchange Rates; international monetary system; effective lower bound; global value chains; Global financial cycle; dominant currency pricing
    Scope: 1 Online-Ressource (circa 35 Seiten), Illustrationen
  10. Exchange rate dynamics and monetary integration in the EAC countries
    Author: Cuiabano, Simone Maciel; Opoku-Afari, Maxwell
    Published: [2017]
    Publisher:  Toulouse School of Economics, [Toulouse]

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    VS 330
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Working papers / Toulouse School of Economics ; no 17-848 (September 2017)
    Subjects: Real exchange rates; EAC countries; cointegration; exchange rate regimes
    Scope: 1 Online-Ressource (circa 23 Seiten), Illustrationen
  11. Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes
    a global cross-country analysis
    Author: Afonso, António; Alves, José; Jalles, João Tovar; Monteiro, Sofia
    Published: September 2024
    Publisher:  CESifo, Munich, Germany

    This study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 63
    Inter-library loan:
    No inter-library loan

     

    This study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices and whether exchange rate flexibility mediates these effects. Using panel data techniques, including OLS and Panel VAR, we assess both demand and supply-side channels, exploring country-specific differences. Our key findings indicate that uncertainty shocks significantly raise energy prices, particularly in countries with flexible exchange rates, where currency depreciation amplifies global price fluctuations. Asymmetric results are found regarding emerging markets, with flexible exchange rates, which tend to have lower energy prices, while oil-exporting countries and OPEC members experience distinct pricing dynamics. These results underscore the importance of exchange rate policy choices in shaping energy market responses to global shocks. Policymakers may need to adopt complementary measures to manage the volatility arising from global uncertainty.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/305626
    Series: CESifo working papers ; 11384 (2024)
    Subjects: geopolitical risk; world uncertainty index; global energy markets; exchange rate regimes; asymmetric effects
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  12. Deciding to peg the exchange rate in developing countries
    the role of private-sector debt
    Author: Harms, Philipp; Hoffmann, Mathias
    Published: 2009
    Publisher:  Study Center Gerzensee, Gerzensee

    We argue that a higher share of the private sector in a country's external debt raises the incentive to stabilize the exchange rate. We present a simple model in which exchange rate volatility does not affect agents' welfare if all the debt is... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 529 (2009,6)
    Inter-library loan:
    No inter-library loan

     

    We argue that a higher share of the private sector in a country's external debt raises the incentive to stabilize the exchange rate. We present a simple model in which exchange rate volatility does not affect agents' welfare if all the debt is incurred by the government. Once we introduce private banks who borrow in foreign currency and lend to domestic firms, the monetary authority has an incentive to dampen the distributional consequences of exchange rate fluctuations. Our empirical results support the hypothesis that not only the level, but also the composition of foreign debt matters for exchange-rate policy.

     
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/128048
    Series: Working paper / Study Center Gerzensee ; 09.06
    Subjects: Wechselkurssystem; Wechselkurspolitik; Internationale Staatsschulden; Private Verschuldung; Anreiz; Entwicklungsländer; exchange rate regimes; foreign debt; monetary policy
    Scope: Online-Ressource (25 S.)
  13. When is foreign exchange intervention effective? Evidence from 33 countries
    Author: Fratzscher, Marcel; Gloede, Oliver; Menkhoff, Lukas; Sarno, Lucio; Heidland, Tobias
    Published: 2017
    Publisher:  Deutsches Institut für Wirtschaftsforschung (DIW), Berlin

    Export to reference management software   RIS file
      BibTeX file
  14. Sudden stops in capital inflows and the design of exchange rate regimes
    Author: Ritter, Raymond
    Published: 2003
    Publisher:  HWWA, Hamburg

    Export to reference management software   RIS file
      BibTeX file
  15. Sudden Stops in Capital Inflows and the Design of Exchange Rate Regimes
    Author: Ritter, Raymond
    Published: 2003
    Publisher:  Hamburg Institute of International Economics (HWWA), Hamburg

    Export to reference management software   RIS file
      BibTeX file
  16. Capital control, exchange rate regime, and monetary policy
    indeterminacy and bifurcation
    Author: Barnett, William A.; Hu, Jingxian
    Published: September 16, 2017
    Publisher:  University of Kansas, Department of Economics, Lawrence, Kansas

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    VS 526
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Volltext (kostenfrei)
    Volltext (kostenfrei)
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Working papers series in theoretical and applied economics ; 2017, 06
    Subjects: Capital controls; open economy monetary policy; exchange rate regimes; Bayesian methods; bifurcation; indeterminacy
    Scope: 1 Online-Ressource (circa 57 Seiten)
  17. Trilemma challenges for the People's Republic of China
    Author: Kawai, Masahiro; Liu, Li-gang
    Published: 2015
    Publisher:  Asian Development Bank Inst., Tokyo

    This paper first reviews recent developments in exchange rate regimes, capital account liberalization, interest rate liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 188 (513)
    Inter-library loan:
    No inter-library loan

     

    This paper first reviews recent developments in exchange rate regimes, capital account liberalization, interest rate liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy autonomy may have been reduced with falling capital control effectiveness and a rigid exchange regime that is still tightly managed against the United States ( US ) dollar. This hypothesis is investigated empirically using both the Taylor rule and the McCallum-like rule to test whether the PRC's money market interest rate and/or quantity of money supply are being increasingly influenced by the US interest rate or reserve accumulation. The paper concludes that there is considerable evidence suggesting diminishing monetary policy autonomy in the PRC. To regain policy autonomy, the monetary authority needs to substantially increase exchange rate flexibility of the renminbi as long as it continues to pursue capital account opening.

     
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/115333
    Series: ADBI working paper series ; 513
    Subjects: trilemma challenges; exchange rate regimes; monetary policy autonomy; peoples republic of china; taylor rule; mccallum rule
    Scope: Online-Ressource (39 S.)
  18. Exchange rate regimes and current account adjustment
    an empirical investigation
    Author: Eguren-Martín, Fernando
    Published: 2015
    Publisher:  Bank of England, London

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Staff working paper / Bank of England ; 544
    Subjects: External dynamics; exchange rate regimes; current account imbalances
    Scope: Online-Ressource (30 S.), graph. Darst.
  19. Dynamic analysis of exchange rate regimes
    policy implications for emerging countries in Asia
    Author: Yoshino, Naoyuki; Kaji, Sahoko; Asonuma, Tamon
    Published: 2014
    Publisher:  Asian Development Bank Inst., Tokyo

    This paper discusses desirable exchange rate regimes and how countries can shift from their current regimes to these regimes over the medium term. We demonstrate the superiority of a basket-peg regime with the basket weight rule over a floating... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 188 (502)
    Inter-library loan:
    No inter-library loan

     

    This paper discusses desirable exchange rate regimes and how countries can shift from their current regimes to these regimes over the medium term. We demonstrate the superiority of a basket-peg regime with the basket weight rule over a floating regime with the interest rate rule or the money supply rule in small open economies, during periods when volatility of exchange rates is moderate. Countries which currently have fixed exchange rates would be better moving toward either a basket-peg or a floating regime over the medium term. A shift to a basket-peg regime is preferred when exchange rate fluctuations are large.

     
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/115318
    Series: ADBI working paper series ; 502
    Subjects: exchange rate regimes; basket-peg; floating regime; interest rate rules
    Scope: Online-Ressource (19 S.), graph. Darst.
  20. The role of the exchange rate regime in the process of real and nominal convergence
    Author: D'Adamo, Gaetano; Rovelli, Riccardo
    Published: 2013
    Publisher:  IZA, Bonn

    During the last decade, economists have intensively searched for evidence on the importance of the Balassa-Samuelson (B-S) hypothesis in explaining nominal convergence. One general result is that B-S can at best explain only part of the excess... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 4 (7627)
    Inter-library loan:
    No inter-library loan

     

    During the last decade, economists have intensively searched for evidence on the importance of the Balassa-Samuelson (B-S) hypothesis in explaining nominal convergence. One general result is that B-S can at best explain only part of the excess inflation observed in the European catching-up countries, which suggests that other factors may be at play. In these and related studies, however, the potential role of the exchange rate regime in affecting price convergence in Europe has been overlooked. In this respect, we claim that the choice of the exchange rate regime has decisively affected the path of nominal convergence. To show this, we first model the (endogenous) choice of the exchange rate regime and, in a second stage, estimate a B-S type of regression for each regime. Our results show that, for countries which pegged to or adopted the euro, the effect of the same increase in the dual productivity growth (that is, the difference in productivity growth between the traded and non-traded sectors) on the dual inflation differential is more than twice as large as that in the "flexible" countries. We conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be expected as a consequence of productivity convergence on the basis of the B-S effect.

     
    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/89852
    Series: Discussion paper series / Forschungsinstitut zur Zukunft der Arbeit ; 7627
    Subjects: exchange rate regimes; Balassa-Samuelson effect; inflation; euro adoption
    Scope: Online-Ressource (31 S.), graph. Darst.