Author: George S. Alogoskoufis
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 44
Book Description
Stabilization Policy, Fixed Exchange Rates and Target Zones
Author: George S. Alogoskoufis
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 44
Book Description
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 44
Book Description
Stabilization Policy, Fixed Exchange Rates and Target Zones
Essays on Exchange Rate Target Zones and Stabilization Policies
Author: Alejandro M. Werner
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 132
Book Description
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 132
Book Description
On the credibility issue of exchange rate target zones
Author: Matthias Rau-Göhring
Publisher: diplom.de
ISBN: 3832467351
Category : Business & Economics
Languages : en
Pages : 68
Book Description
Inhaltsangabe:Zusammenfassung: Währungskrisen, wie die des Europäischen Währungssystems (EWS) 1992, können noch immer nur unzureichend vorausgesagt werden. Es wird jedoch anerkannt, dass die Glaubwürdigkeit eines jeden Währungssystems ausschließlich endogen bestimmt wird, d.h. durch Interaktion der einzelnen Akteure an den Wechselkursmärkten. Die vorliegende Arbeit untersucht, ob ein bestimmtes Glaubwürdigkeitsmaß, eingeführt von Avesani, Gallo und Salmon (1995), geeignet ist, die große EWS Krise 1992 vorauszusagen. Dabei handelt es sich um ein dynamisches Spiel, in dem die beiden Akteure (Zentralbank und Finanzmarkt) miteinander interagieren und damit die Glaubwürdigkeit des Systems aushandeln . Es wird gezeigt, dass o.g. Glaubwürdigkeitsmaß ein geeigneter Indikator für Währungskrisen darstellt, was empirisch anhand des französischen Francs, der italienischen Lira und des niederländischen Guldens nachgewiesen wird. Introduction: The objective of the present study is to present the literature of exchange rate target zones and to explore empirically the Avesani-Gallo-Salmon credibility measure for selected currencies belonging to the Exchange-Rate Mechanism (ERM) of the European Monetary System (EMS). In the past decade the empirical literature on real world target zones mushroomed considerably, but still, its overall significance in explaining strains in the relevant foreign exchange markets remains relatively low. In this context, I will explore whether the Avesani-Gallo-Salmon (1995) credibility measure demonstrates more power than earlier studies in the analysis of the 1992/3 EMS crisis. It is not my intention to pursue a normative analysis whether flexible or fixed exchange rates or intermediate regimes are superior to one another in terms of their economic implications. This question is beyond the scope of my analysis.1 Given that target zones are applied frequently in the real world, I purely want to figure out, whether their application is sensible on grounds of a firm commitment of the policy-makers. Exchange rate bands have been discussed widely after the breakdown of the Bretton Woods System in 1973. Although experiences with the fixed exchange rate regime were disappointing in the 1960s, increased volatility and/or overshooting of the exchange rates in the 1970s let economists doubt the famous argument by Friedman (1953) that speculation would stabilize exchange rate movements in the floating system. McKinnon (1976) reckoned that [...]
Publisher: diplom.de
ISBN: 3832467351
Category : Business & Economics
Languages : en
Pages : 68
Book Description
Inhaltsangabe:Zusammenfassung: Währungskrisen, wie die des Europäischen Währungssystems (EWS) 1992, können noch immer nur unzureichend vorausgesagt werden. Es wird jedoch anerkannt, dass die Glaubwürdigkeit eines jeden Währungssystems ausschließlich endogen bestimmt wird, d.h. durch Interaktion der einzelnen Akteure an den Wechselkursmärkten. Die vorliegende Arbeit untersucht, ob ein bestimmtes Glaubwürdigkeitsmaß, eingeführt von Avesani, Gallo und Salmon (1995), geeignet ist, die große EWS Krise 1992 vorauszusagen. Dabei handelt es sich um ein dynamisches Spiel, in dem die beiden Akteure (Zentralbank und Finanzmarkt) miteinander interagieren und damit die Glaubwürdigkeit des Systems aushandeln . Es wird gezeigt, dass o.g. Glaubwürdigkeitsmaß ein geeigneter Indikator für Währungskrisen darstellt, was empirisch anhand des französischen Francs, der italienischen Lira und des niederländischen Guldens nachgewiesen wird. Introduction: The objective of the present study is to present the literature of exchange rate target zones and to explore empirically the Avesani-Gallo-Salmon credibility measure for selected currencies belonging to the Exchange-Rate Mechanism (ERM) of the European Monetary System (EMS). In the past decade the empirical literature on real world target zones mushroomed considerably, but still, its overall significance in explaining strains in the relevant foreign exchange markets remains relatively low. In this context, I will explore whether the Avesani-Gallo-Salmon (1995) credibility measure demonstrates more power than earlier studies in the analysis of the 1992/3 EMS crisis. It is not my intention to pursue a normative analysis whether flexible or fixed exchange rates or intermediate regimes are superior to one another in terms of their economic implications. This question is beyond the scope of my analysis.1 Given that target zones are applied frequently in the real world, I purely want to figure out, whether their application is sensible on grounds of a firm commitment of the policy-makers. Exchange rate bands have been discussed widely after the breakdown of the Bretton Woods System in 1973. Although experiences with the fixed exchange rate regime were disappointing in the 1960s, increased volatility and/or overshooting of the exchange rates in the 1970s let economists doubt the famous argument by Friedman (1953) that speculation would stabilize exchange rate movements in the floating system. McKinnon (1976) reckoned that [...]
Economic Stability Under Alternative Exchange Rate Regimes
Target Zones and Interest Rate Variability
Author: Mr.Lars E. O. Svensson
Publisher: International Monetary Fund
ISBN: 1451979991
Category : Business & Economics
Languages : en
Pages : 52
Book Description
The trade-off between interest rate variability and the width of an exchange rate target zone is examined, using the regulated Brownian motion model of target zones. The interest rate differential’s asymptotic (unconditional) variability is increasing in the exchange rate band for narrow bands; whereas it is slowly decreasing for wide bands. The interest rate differential’s instantaneous (conditional) variability is decreasing in the exchange rate band. The model is extended to include a realignment/devaluation risk, as well as an endogenous exchange rate risk premium. The risk premium is small for reasonable parameter values.
Publisher: International Monetary Fund
ISBN: 1451979991
Category : Business & Economics
Languages : en
Pages : 52
Book Description
The trade-off between interest rate variability and the width of an exchange rate target zone is examined, using the regulated Brownian motion model of target zones. The interest rate differential’s asymptotic (unconditional) variability is increasing in the exchange rate band for narrow bands; whereas it is slowly decreasing for wide bands. The interest rate differential’s instantaneous (conditional) variability is decreasing in the exchange rate band. The model is extended to include a realignment/devaluation risk, as well as an endogenous exchange rate risk premium. The risk premium is small for reasonable parameter values.
On Optimal World Stabilization and the Target Zones Proposal
Author: George S. Alogoskoufis
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 52
Book Description
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 52
Book Description
Flexible Exchange Rates and Stabilization Policy
Author: J. Herin
Publisher: Springer
ISBN: 1349033596
Category : Business & Economics
Languages : en
Pages : 286
Book Description
Publisher: Springer
ISBN: 1349033596
Category : Business & Economics
Languages : en
Pages : 286
Book Description
On the Evolution of Credibility and Flexible Exchange Rate Target Zones
Author: Renzo G. Avesani
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages : 60
Book Description
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages : 60
Book Description
Exchange Rate Stability in International Finance
Author: United States. Congress. House. Committee on Banking and Financial Services
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 140
Book Description
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 140
Book Description