Author : Luis Serven
Publisher : World Bank Publications
Page : 54 pages
File Size : 35,96 MB
Release : 1990
Category : Foreign exchange rates
ISBN :
Unanticipated changes in the real exchange rate affect investment through their impact on the desired capital stock, whose direction depends on a number of factors and is in general ambiguous. In contrast, anticipated changes can also have an important effect on the optimal timing of investment, in a direction that depends on the financial openness of the economy and on the important content of capital goods. This issue is explored using a simple macroeconomic model.
Author : Steve Brito
Publisher : International Monetary Fund
Page : 21 pages
File Size : 49,69 MB
Release : 2018-05-10
Category : Business & Economics
ISBN : 1484356349
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.
Author : Mr.Jerome L. Stein
Publisher : International Monetary Fund
Page : 46 pages
File Size : 43,17 MB
Release : 1995-08-01
Category : Business & Economics
ISBN : 1451955146
The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Author : Ben S. Bernanke
Publisher : MIT Press
Page : 364 pages
File Size : 18,36 MB
Release : 1996
Category : Business & Economics
ISBN : 9780262522052
Contents : Wage Inequality and Regional Unemployment Persistence: U.S. vs. Europe, Guiseppe BErtola and Andreas Ichino. Capital Utilization and Returns to Scale, Craig Burnside, Martin Eichenbaum, and Sergio Rebelo. Banks and Derivatives, Gary Gorton and Richard Rosen. Exchange-Rate-Based Stabilizations: Theory and Evidence, Sergio Rebelo and Carlos Vegh. Inflation Indicators and Inflation Policy, Stephen Cecchetti. Recent Central Bank Reforms and the Role of Price Stability as the Sole Objective of Monetary Policy, Carl Walsh. Is Central Bank Independence (and Low Inflation) the Result of Effective Financial Opposition to Inflation?, Adam Posen. The Unending Quest for Monetary Salvation, Stanley Fischer.
Author : Ronald MacDonald
Publisher : Routledge
Page : 334 pages
File Size : 40,64 MB
Release : 2005
Category : Foreign exchange
ISBN : 1134838220
''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 :
Publisher : World Bank Publications
Page : 30 pages
File Size : 22,60 MB
Release :
Category :
ISBN :
Author : Eduardo Levy-Yeyati
Publisher : World Bank Publications
Page : 39 pages
File Size : 48,78 MB
Release : 2007
Category : Central Bank
ISBN :
Abstract: In recent years the term "fear of floating" has been used to describe exchange rate regimes that, while officially flexible, in practice intervene heavily to avoid sudden or large depreciations. However, the data reveals that in most cases (and increasingly so in the 2000s) intervention has been aimed at limiting appreciations rather than depreciations, often motivated by the neo-mercantilist view of a depreciated real exchange rate as protection for domestic industries. As a first step to address the broader question of whether this view delivers on its promise, the authors examine whether this "fear of appreciation" has a positive impact on growth performance in developing economies. The authors show that depreciated exchange rates appear to induce higher growth, but that the effect, rather than through import substitution or export booms as argued by the mercantilist view, works largely through the deepening of domestic savings and capital accumulation.
Author : Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico
Publisher :
Page : 0 pages
File Size : 29,27 MB
Release : 2013
Category : Banks and banking, Central
ISBN : 9789291319626
Author : Ross Garnaut
Publisher : ANU E Press
Page : 466 pages
File Size : 19,15 MB
Release : 2007-08-01
Category : Business & Economics
ISBN : 1921313382
China's prosperity is at the core of the emerging Platinum Age of global economic growth. Rapid economic growth has been underpinned by expansion in its domestic markets, and the integration of domestic and international markets in goods, services, capital, labour and foreign exchange. Global commodity prices have reached historic highs, while Chinas capital outflows have helped to hold down interest rates worldwide. Linking markets, both domestic and international, has been key to Chinas success. In sustaining its strong economic growth, China has become one of the worlds most voracious consumers of energy. The challenge now facing the government and people of China is in achieving cooperation with the international community to avert the costs - both economic and environmental - of accelerating energy consumption. CHINA: LINKING MARKETS FOR GROWTH gathers together leading scholars on Chinas economic success and its effect on the world economy into the next few decades.
Author : Camila Casas
Publisher : International Monetary Fund
Page : 62 pages
File Size : 17,18 MB
Release : 2017-11-22
Category : Business & Economics
ISBN : 1484330609
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.
