Money-based Versus Exchange Rate-based Stabilization with Endogenous Fiscal Policy
Author: Aaron Tornell
Publisher:
Published: 1995
Total Pages: 46
ISBN-13:
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Author: Aaron Tornell
Publisher:
Published: 1995
Total Pages: 46
ISBN-13:
DOWNLOAD EBOOKAuthor: Aarón Tornell
Publisher:
Published: 1995
Total Pages: 34
ISBN-13:
DOWNLOAD EBOOKAuthor: Sergio Rebelo
Publisher:
Published: 1995
Total Pages: 72
ISBN-13:
DOWNLOAD EBOOKThis paper uses a unified analytical framework to assess, both qualitatively and quantitatively, the relevance of the different hypotheses that have been proposed to explain the real effects of exchange rate-based stabilizations. The four major hypotheses analyzed are: (i) the supply-side effects associated with an inflation decline; (ii) the perception that the exchange rate peg is temporary; (iii) the fiscal adjustments that tend to accompany the peg; and (iv) the existence of nominal rigidities in wages or prices.
Author: Mr.A. Javier Hamann
Publisher: International Monetary Fund
Published: 1999-10-01
Total Pages: 29
ISBN-13: 1451855362
DOWNLOAD EBOOKDo exchange-rate-based stabilizations generate distinctive economic dynamics? To address this question, this paper identifies stabilization episodes using criteria that differ from those in previous empirical studies of exchange-rate-based stabilizations. We find that, while some differences can be detected between exchange-rate-based stabilizations and stabilizations where the exchange rate is not the anchor, the behavior of important variables does not appear to differ—especially output growth, which is good in both cases. There is also no evidence that fiscal discipline is enhanced by adopting an exchange-rate anchor, or that there are any systematic differences in the success records of stabilizations that use the exchange rate as a nominal anchor and those that do not.
Author:
Publisher:
Published: 1995
Total Pages: 34
ISBN-13:
DOWNLOAD EBOOKAuthor: Ben S. Bernanke
Publisher: MIT Press
Published: 1996
Total Pages: 364
ISBN-13: 9780262522052
DOWNLOAD EBOOKContents : 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: Mr.Guillermo Calvo
Publisher: International Monetary Fund
Published: 1991-08-01
Total Pages: 34
ISBN-13: 1451849915
DOWNLOAD EBOOKThis paper analyzes stabilization policy under predetermined exchange rates in a cash-in-advance, staggered-prices model. Under full credibility, a reduction in the rate of devaluation results in an immediate and permanent reduction in the inflation rate, with no effect on output or consumption. In contrast, a non-credible stabilization results in an initial expansion of output, followed by a later recession. The inflation rate of home goods remains above the rate of devaluation throughout the program, thus resulting in a sustained real exchange rate appreciation.
Author: Enrique G. Mendoza
Publisher:
Published: 2000
Total Pages: 72
ISBN-13:
DOWNLOAD EBOOKThis paper examines two potential benefits that emerging economies may derive from dollarization. First, dollarization may eliminate distortions induced by the lack of credibility of monetary policy. Second, dollarization may weaken financial frictions that result in endogenous credit constraints. The analysis is based on numerical simulations of a two-sector dynamic, stochastic general equilibrium model calibrated to Mexican data. The results indicate that policy uncertainty and credit constraints are very costly distortions. The mean welfare gains of eliminating policy uncertainty range between 6.4 and 9 percent of the trend level of consumption per capita. The mean welfare gain of weakening credit frictions is about 4.6 percent.
Author: Leonardo Auernheimer
Publisher:
Published: 1983
Total Pages: 74
ISBN-13:
DOWNLOAD EBOOKAuthor: Aaron Tornell
Publisher:
Published: 1995
Total Pages: 52
ISBN-13:
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