Exchange Rate Adjustment Under Generalized Currency Floating
Author: Romeo M. Bautista
Publisher:
Published: 1980
Total Pages: 99
ISBN-13:
DOWNLOAD EBOOKRead and Download eBook Full
Author: Romeo M. Bautista
Publisher:
Published: 1980
Total Pages: 99
ISBN-13:
DOWNLOAD EBOOKAuthor: Bela A. Balassa
Publisher:
Published: 1980
Total Pages: 508
ISBN-13:
DOWNLOAD EBOOKAuthor: Romeo M. Bautista
Publisher:
Published: 1980
Total Pages: 99
ISBN-13:
DOWNLOAD EBOOKAuthor: Franz Gehrels
Publisher: Springer Science & Business Media
Published: 2012-12-06
Total Pages: 308
ISBN-13: 3642841988
DOWNLOAD EBOOKHelmut Schneider 1. The Formulation of the Research Programme 1. In the late sixties the acceleration of US inflation revived the discussion of the fifties about the superiority of flexible exchange rates: The US balance of payments deteriorated since 1965, the dollar shortage after World War II changed to a dollar surplus. The import of US inflation by their main trading partners intensified political pressures so that at the beginning of the seventies most leading countries decided, contrary to the rules of the Bretton Woods agreement, to stop their intervention in the market for foreign exchange and to let the exchange rates be determined by market forces. It is worthwhile recalling that at that time one had only very limited experience with the regime of flexible exchange rates: The most important case, the floating of Canadian against the US dollar, could not be generalized to a world where nearly all important countries adhered to the regime of flexible exchange rates. ! - But one really had rich experience with destabilizing capital flows (or "hot money") that forced monetary authorities to adjust exchange rates in a system of managed flexibility to the expecta tions of "speculators".
Author: United States. General Accounting Office
Publisher:
Published: 1984
Total Pages: 92
ISBN-13:
DOWNLOAD EBOOKAuthor: Franz Gehrels
Publisher: Springer Verlag
Published: 1990
Total Pages: 302
ISBN-13: 9780387525914
DOWNLOAD EBOOKAuthor: Jacques R. Artus
Publisher:
Published: 1978
Total Pages: 52
ISBN-13:
DOWNLOAD EBOOKAuthor: World Bank
Publisher:
Published: 1981
Total Pages: 100
ISBN-13:
DOWNLOAD EBOOKAuthor: Michael B. Devereux
Publisher:
Published: 1998
Total Pages: 66
ISBN-13:
DOWNLOAD EBOOKWe investigate the welfare properties of fixed and floating exchange rate regimes in a two-country, dynamic, infinite-horizon model with agents optimizing in an environment of uncertainty created by monetary shocks. The optimal exchange rate regime may depend on whether prices are set in the currency of producers or the currency of consumers. When prices are set in consumers' currency, the variance of home consumption is not influenced by foreign monetary variance under floating exchange rates, while there is transmission of foreign disturbances under floating rates if prices are set in producers' currencies, or under fixed exchange rates. An important feature of the model is the exchange rate regime affects not just the variance of consumption and output, but also their average levels. When prices are set in producer's currency, as in the traditional framework, we find that there is a trade-off between floating and fixed exchange rates. Exchange rate adjustment under floating rates allows for a lower variance of consumption, but exchange rate volatility itself leads to a lower average level of consumption. When prices are set in consumer's currency, floating exchange rates always dominate fixed exchange rates.
Author: Mr.Marco Airaudo
Publisher: International Monetary Fund
Published: 2016-03-08
Total Pages: 65
ISBN-13: 1475523165
DOWNLOAD EBOOKWe analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.