Pricing-to-market (PTM) and the International Transmission Effect of Monetary Policy PDF Download

Author: Akira Otani
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 44

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Author: Akira Otani
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 60

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Author: Kodjovi M. Eklou
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
Monetary policy transmission in EMs has been found to be weak historically due to under-developed financial markets and heavy central bank intervention in FX markets that undermine the exchange rate channel. Against this background, this paper investigates the transmission of monetary policy, including the role of external factors, in Malaysia and highlight findings that could be relevant for other EMs. We find an important role for the credit and the exchange rate channels. Further, we also find a complementary role for policy tools including Foreign Exchange Intervention (FXI) and liquidity tools such as Statutory Reserve Requirement in shaping the transmission of monetary policy. We then explore the spillover effects of external global factors including global monetary policy and global commodity prices on monetary policy transmission in a small open economy such as Malaysia. The results show that while global commodity prices do not impair monetary policy transmission, global monetary policy tightening could complement domestic efforts to achieve price stability by inducing a global disinflation. Finally, monetary policy transmission is delayed and weakened in high inflationary environment, with the implication that more aggressive and preemptive policy actions may be needed in such cases.

Author: Guillermo A. Calvo
Publisher: MIT Press
ISBN: 9780262532600
Category : Business & Economics
Languages : en
Pages : 572

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Essays by leading economists and scholars reflecting on Mundell's broad influence on modern open-economy macroeconomics.

Author: Michael G. Papaioannou
Publisher: Emerald Group Publishing
ISBN: 1849506027
Category : Business & Economics
Languages : en
Pages : 586

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Book Description
Contains original papers that examine various issues concerning the role, the structure and functioning of credit, currency and derivatives instruments and markets as they relate to financial crises. This title stresses the importance of the inter-linkages of these instruments and markets in promoting or hindering financial stability or crises.

Author: Ronald MacDonald
Publisher: Routledge
ISBN: 1134838220
Category : Foreign exchange
Languages : en
Pages : 334

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''In summary, the book is valuable as a textbook both at the advanced undergraduate level and at the graduate level. It is also very useful for the economist who wants to be brought up-to-date on theoretical and empirical research on exchange rate behaviour.'' ""Journal of International Economics""

Author: Kyungho Jang
Publisher:
ISBN:
Category : Cointegration
Languages : en
Pages : 58

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Author:
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 552

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Author: Camila Casas
Publisher: International Monetary Fund
ISBN: 1484330609
Category : Business & Economics
Languages : en
Pages : 62

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Book Description
Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.

Author: Hiroyuki Ōi
Publisher:
ISBN:
Category : Exports
Languages : en
Pages : 60

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Book Description
An overview of theoretical research on the choice of an invoice currency for exports from the perspective of expected profits maximization; current assessment and future outlook of the use of the yen in trade transactions.