Author: Huiran Pan
Publisher:
ISBN:
Category :
Languages : en
Pages : 182
Book Description
External Adjustment and Exchange Rate Forecasting
Friedman Redux
Author: Mr.Atish R. Ghosh
Publisher: International Monetary Fund
ISBN: 1484331451
Category : Business & Economics
Languages : en
Pages : 43
Book Description
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.
Publisher: International Monetary Fund
ISBN: 1484331451
Category : Business & Economics
Languages : en
Pages : 43
Book Description
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.
External Adjustment in Oil Exporters
Author: Mr.Alberto Behar
Publisher: International Monetary Fund
ISBN: 1475535384
Category : Business & Economics
Languages : en
Pages : 45
Book Description
After the decline in oil prices, many oil exporters face the need to improve their external balances. Special characteristics of oil exporters make the exchange rate an ineffective instrument for this purpose and give fiscal policy a sizeable role. These conclusions are supported by regression analysis of the determinants of the current account balance and of the trade balance. The results show little or no relationship with the exchange rate and, especially for the less diversified oil exporters (including the Gulf Cooperation Council), a strong relationship with the fiscal balance or government spending.
Publisher: International Monetary Fund
ISBN: 1475535384
Category : Business & Economics
Languages : en
Pages : 45
Book Description
After the decline in oil prices, many oil exporters face the need to improve their external balances. Special characteristics of oil exporters make the exchange rate an ineffective instrument for this purpose and give fiscal policy a sizeable role. These conclusions are supported by regression analysis of the determinants of the current account balance and of the trade balance. The results show little or no relationship with the exchange rate and, especially for the less diversified oil exporters (including the Gulf Cooperation Council), a strong relationship with the fiscal balance or government spending.
No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect
Author: Mr.Yan Carriere-Swallow
Publisher: International Monetary Fund
ISBN: 1484379373
Category : Business & Economics
Languages : en
Pages : 30
Book Description
Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the expenditure switching effect is positively associated to the degree of exchange rate flexibility. Moreover, results show that flexible exchange rates allow for significant adjustment in relative prices, which in turn lowers the burden of adjustment on demand for domestic goods and, in some cases, facilitates a faster and more durable external adjustment process. These results, which are robust to accounting for possible non-linearities due to balance sheet effects or currency mismatches, shed new light on the shock absorbing properties of flexible exchange rates.
Publisher: International Monetary Fund
ISBN: 1484379373
Category : Business & Economics
Languages : en
Pages : 30
Book Description
Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the expenditure switching effect is positively associated to the degree of exchange rate flexibility. Moreover, results show that flexible exchange rates allow for significant adjustment in relative prices, which in turn lowers the burden of adjustment on demand for domestic goods and, in some cases, facilitates a faster and more durable external adjustment process. These results, which are robust to accounting for possible non-linearities due to balance sheet effects or currency mismatches, shed new light on the shock absorbing properties of flexible exchange rates.
Flexible Exchange Rates After 6 Years' Experience
Author: Richard N. Cooper
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 8
Book Description
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 8
Book Description
Exchange Rate Forecasting Techniques, Survey Data, and Implications for the Foreign Exchange Market
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451975007
Category : Business & Economics
Languages : en
Pages : 32
Book Description
This paper examines the dynamics of the foreign exchange market. The first half addresses a number of key questions regarding the forecasts of future exchange rates made by market participants, by means of updated estimates using survey data. Here we follow most of the theoretical and empirical literature in acting as if all market participants share the same expectation. The second half then addresses the possibility of heterogeneous expectations, particularly the distinction between “chartists” and “fundamentalists,” and the implications for trading in the foreign exchange market and for the formation of speculative bubbles.
Publisher: International Monetary Fund
ISBN: 1451975007
Category : Business & Economics
Languages : en
Pages : 32
Book Description
This paper examines the dynamics of the foreign exchange market. The first half addresses a number of key questions regarding the forecasts of future exchange rates made by market participants, by means of updated estimates using survey data. Here we follow most of the theoretical and empirical literature in acting as if all market participants share the same expectation. The second half then addresses the possibility of heterogeneous expectations, particularly the distinction between “chartists” and “fundamentalists,” and the implications for trading in the foreign exchange market and for the formation of speculative bubbles.
The Exchange Rate System
Author: Ella H. Wright
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 80
Book Description
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 80
Book Description
The Economics of Exchange Rates (Collected Works of Harry Johnson)
Author: Jacob A. Frenkel
Publisher: Routledge
ISBN: 1135039461
Category : Business & Economics
Languages : en
Pages : 252
Book Description
The studies in this book deal with the determination of foreign exchange rates and the characteristics of the foreign exchange market. Analysis is made of flexible exchange rates through an approach developed by the authors, called the ‘asset-market approach’. Theory is combined with practical application in a clear concise way that will be understood by readers with a basic understanding of economics.
Publisher: Routledge
ISBN: 1135039461
Category : Business & Economics
Languages : en
Pages : 252
Book Description
The studies in this book deal with the determination of foreign exchange rates and the characteristics of the foreign exchange market. Analysis is made of flexible exchange rates through an approach developed by the authors, called the ‘asset-market approach’. Theory is combined with practical application in a clear concise way that will be understood by readers with a basic understanding of economics.
Exchange Rate Determination
Author: Michael Rosenberg
Publisher: McGraw Hill Professional
ISBN: 9780071415019
Category : Business & Economics
Languages : en
Pages : 300
Book Description
Models and Strategies for Exchange Rate ForecastingMichael R. RosenbergGetting an accurate exchange rate is critical for any company doing business in today's global economy. Exchange Rate Determination--written by the number one-ranked foreign exchange team in the world--examines the methods used to accurately and profitably forecast foreign exchange rates. This hands-on guidebook uses extensive charts and tables to examine currency option markets, productivity trends and exchange rates; technical analysis methods to improve currency forecasting accuracy; and more.
Publisher: McGraw Hill Professional
ISBN: 9780071415019
Category : Business & Economics
Languages : en
Pages : 300
Book Description
Models and Strategies for Exchange Rate ForecastingMichael R. RosenbergGetting an accurate exchange rate is critical for any company doing business in today's global economy. Exchange Rate Determination--written by the number one-ranked foreign exchange team in the world--examines the methods used to accurately and profitably forecast foreign exchange rates. This hands-on guidebook uses extensive charts and tables to examine currency option markets, productivity trends and exchange rates; technical analysis methods to improve currency forecasting accuracy; and more.
Predicting External Imbalances for the United States and Japan
Author: William R. Cline
Publisher: Peterson Institute for International Economics
ISBN:
Category : Business & Economics
Languages : en
Pages : 112
Book Description
Publisher: Peterson Institute for International Economics
ISBN:
Category : Business & Economics
Languages : en
Pages : 112
Book Description