Author: Mark de BroeckPublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 40
Book Description
Interpreting Real Exchange Rate Movements in Transition Countries
Author: Mark de BroeckPublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 40
Book Description
Interpreting Real Exchange Rate Movements in Transition Countries
Author: International Monetary FundPublisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451847703
Category : Business & Economics
Languages : en
Pages : 0
Book Description
Several transition countries have experienced strong real exchange rate appreciations. This paper tests the hypothesis that these appreciations reflect underlying productivity gains in the tradable sector. Using panel data over the period 1993-98, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European and Baltic countries. Transition countries, particularly the EU accession countries that have begun to catch up, can expect to experience further productivity-driven real exchange rate appreciations. Evidence from a large cross-section of non-transition countries indicates that catching up by one percent will be associated with a 0.4 percent real appreciation.
Balance of Payments, Exchange Rates, and Competitiveness in Transition Economies
Author: Mario I. BlejerPublisher: Springer Science & Business Media
ISBN: 0585313466
Category : Business & Economics
Languages : en
Pages : 501
Book Description
Integrating transition economies into the global commercial and trade market system is a prolonged and risky process. This book is a collection of studies dealing with the different issues related to the liberalization of external relations in economies moving from a socialist to a market-based system The focus is on external sector developments, and the topics deal with balance of payments conditions, exchange rate policies and regimes, international competitiveness, international capital flows, trade, and other matters related to the integration of transition economies into the world economy. An understanding of the principles involved and of the experiences of both transition and advanced economies during this process is crucial to ensure its ultimate success. Written by internationally recognized scholars, the chapters cover these issues in a systematic manner. The first section treats current account developments, capital flows, and exchange rate policies in transition countries, the second section deals with specific issues related to international trade, and the final section consists of six specific country experiences. In this final section, a chapter dealing with the Russian Federation discusses the collapse of the ruble in August 1998.
Real Exchange Rates, Economic Complexity, and Investment
Author: Steve BritoPublisher: International Monetary Fund
ISBN: 1484356349
Category : Business & Economics
Languages : en
Pages : 21
Book Description
We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and developing economies, as well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when the domestic currency strengthens. This result is consistent with Diaz Alejandro (1963)—in economies where capital goods are mostly imported, a stronger real exchange rate reduces investment costs for domestic firms.
Changes in Exchange Rates in Rapidly Developing Countries
Author: Takatoshi ItoPublisher: University of Chicago Press
ISBN: 0226386937
Category : Business & Economics
Languages : en
Pages : 466
Book Description
The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central component in the economic policy of developing countries and a key factor affecting economic growth. Historically, most developing nations have employed strict exchange rate controls and heavy protection of domestic industry-policies now thought to be at odds with sustainable and desirable rates of economic growth. By contrast, many East Asian nations maintained exchange rate regimes designed to achieve an attractive climate for exports and an "outer-oriented" development strategy. The result has been rapid and consistent economic growth over the past few decades. Changes in Exchange Rates in Rapidly Developing Countries explores the impact of such diverse exchange control regimes in both historical and regional contexts, focusing particular attention on East Asia. This comprehensive, carefully researched volume will surely become a standard reference for scholars and policymakers.
Real Exchange Rate Uncertainty and Private Investment in Developing Countries
Author: Luis ServénPublisher: World Bank Publications
ISBN:
Category : Capital stock
Languages : en
Pages : 24
Book Description
Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.
Exchange Rate Volatility and Trade Flows--Some New Evidence
Author: International Monetary FundPublisher: International Monetary Fund
ISBN: 1498330282
Category : Business & Economics
Languages : en
Pages : 132
Book Description
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REAL EXCHANGE RATES IN TRANSITION ECONOMIES
Author: BOSIJAN JAZBECEquilibrium Exchange Rates in Transition Economies
Author: Lionel HalpernPublisher: International Monetary Fund
ISBN: 145185479X
Category : Business & Economics
Languages : en
Pages : 40
Book Description
A stylized fact of the transition process is an early profound exchange rate depreciation followed by continuing real appreciation. Absent historical reference points, it is difficult to judge whether the real appreciation is threatening competitiveness. This paper interprets the stylized facts and offers estimates of the equilibrium real exchange rate based on an international comparison of dollar wages and on a study of the dynamics of real exchange rates in several transition economies. The results suggest that the process of real appreciation is a combination of a return to equilibrium following the early overshooting and equilibrium appreciation.
Real Exchange Rates and the Prices of Nontradable Goods
Author: Mr.Gian Milesi-FerrettiPublisher: International Monetary Fund
ISBN: 1451922515
Category : Business & Economics
Languages : en
Pages : 38
Book Description
This paper attempts to provide a perspective on real exchange rate developments following the inception of the EMS. The focus is on structural determinants of real exchange rates, notably the behavior of tradables and nontradable prices and productivity. It is found that changes in the relative price of tradable goods in terms of nontradables account for a sizable fraction of real exchange rate dynamics during the EMS period. Sectoral productivity growth differential help explain the behavior of the relative price of tradable goods, especially in the long run. There is also some evidence that the EMS has extended on relative price behavior.