Author : International Monetary Fund. Legal Dept.
Publisher : International Monetary Fund
Page : 45 pages
File Size : 39,13 MB
Release : 2006-10-10
Category : Business & Economics
ISBN : 1498332137
The paper finds that simple econometric specifications yield surprising rich and complex dynamics -- relative prices respond to the nominal exchange rate and pass-through effects, import and export volumes respond to relative price changes, and the trade balance responds to changes in import and export values.
Author : Internationaler Währungsfonds
Publisher :
Page : 0 pages
File Size : 13,40 MB
Release : 2006
Category :
ISBN :
The paper finds that simple econometric specifications yield surprising rich and complex dynamics -- relative prices respond to the nominal exchange rate and pass-through effects, import and export volumes respond to relative price changes, and the trade balance responds to changes in import and export values.
Author : Mr.Plamen K Iossifov
Publisher : International Monetary Fund
Page : 38 pages
File Size : 39,58 MB
Release : 2019-06-28
Category : Political Science
ISBN : 1498322824
There is an ongoing debate in the literature on whether global trade flows have become disconnected from the large real effective exchange rate movements in the wake of the global financial crisis. The question has important policy implications for the role of exchange rates in supporting growth and restoring external balance. In this paper, we use Turkey---a large and open emerging market economy that has experienced sizable swings of the real effective exchange rate---as a case study to test competing hypotheses. Our results lend support to the finding in existing cross-country studies that the real effective exchange rate remains an important determinant of trade flows. But, its effect is not symmetric in secular periods of appreciation and depreciation and is, oftentimes, dwarfed by the impact on trade flows of the income growth differential between trade partners.
Author : Richard J Sweeney
Publisher : Routledge
Page : 347 pages
File Size : 34,70 MB
Release : 2019-03-13
Category : Political Science
ISBN : 0429721064
With the loss of Soviet control in Central and Eastern Europe, as well as the move toward economic liberalization in many developing countries, a huge increase in the number of convertible currencies in the world has occurred. A key aspect of the management of these currencies involves their relationships with the world economy, which is determined
Author : Mr.Jaewoo Lee
Publisher : International Monetary Fund
Page : 34 pages
File Size : 32,19 MB
Release : 2008-04-07
Category : Business & Economics
ISBN : 1589066383
The rapid increase in international trade and financial integration over the past decade and the growing importance of emerging markets in world trade and GDP have inspired the IMF to place stronger emphasis on multilateral surveillance, macro-financial linkages, and the implications of globalization. The IMF's Consultative Group on Exchange Rate Issues (CGER)--formed in the mid-1990s to provide exchange rate assessments for a number of advanced economies from a multilateral perspective--has therefore broadened its mandate to cover both key advanced economies and major emerging market economies. This Occasional Paper summarizes the methodologies that underpin the expanded analysis.
Author : Gustavo Adler
Publisher : International Monetary Fund
Page : 46 pages
File Size : 22,61 MB
Release : 2020-07-20
Category : Business & Economics
ISBN : 1513512153
The extensive use of the US dollar when firms set prices for international trade (dubbed dominant currency pricing) and in their funding (dominant currency financing) has come to the forefront of policy debate, raising questions about how exchange rates work and the benefits of exchange rate flexibility. This Staff Discussion Note documents these features of international trade and finance and explores their implications for how exchange rates can help external rebalancing and buffer macroeconomic shocks.
Author : Ms.Isabelle Mejean
Publisher : International Monetary Fund
Page : 31 pages
File Size : 32,62 MB
Release : 2011-03-01
Category : Business & Economics
ISBN : 1455218960
A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in the terms of trade and real exchange rates in a three-country open economy model of the U.S., China, and other emerging Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the case where export prices remain constant in one country and increase in the other. Our results are robust to different assumptions about elasticities of substitution and to introducing a high degree of vertical fragmentation in production in the model.
Author : Marialuz Moreno Badia
Publisher : International Monetary Fund
Page : 23 pages
File Size : 16,84 MB
Release : 2014-01-10
Category : Business & Economics
ISBN : 1475525052
A number of emerging markets have experienced substantial real exchange rate appreciation in recent years, generating concerns about competitiveness and prompting policymakers to respond with a combination of mitigating policies. This paper shows that fiscal policy can play a role in alleviating these pressures. Using a sample of 28 emerging market economies over 1983-2011, we estimate a dynamic model of the real exchange rate and find that a permanent fiscal adjustment may reduce appreciation pressures over the long term. Furthermore, the composition of public spending matters, with reductions in current spending playing a key role. To illustrate the importance of these findings, the paper focuses on the case of Brazil. Our results suggest that maintaining fiscal discipline while increasing public investment in Brazil is likely to ease real appreciation pressures, highlighting the importance of tackling long-standing budget rigidities.
Author : Felipe Larraín B.
Publisher :
Page : 60 pages
File Size : 10,90 MB
Release : 1999
Category : Foreign exchange
ISBN :
Reviews some empirical evidence on the recent performance of alternative exchange rate arrangements in emerging markets. Examines the concrete circumstances under which either polar regime should be adopted. Studies how to make flexibility work in practice, with special attention to inflation targets and alternativie monetary policy rules. Focuses on the possible role of capital controls as a complementary policy.
Author : Mr.Jonathan David Ostry
Publisher : International Monetary Fund
Page : 25 pages
File Size : 13,66 MB
Release : 2012-02-29
Category : Business & Economics
ISBN : 1475503628
Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
