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The impact of macroeconomic variables on exchange rate uncertain

Kaboro, Jane; Mose, Naftaly - In: Financial internet quarterly 17 (2021) 3, pp. 47-55

Macroeconomic convergence is critical for member states to achieve the level of harmonization required for establishing a stable and resilient monetary union. The East African Community (EAC) member states, therefore, established set targets for macroeconomic convergence, intending to eliminate...

Persistent link: https://www.econbiz.de/10012803220

The political choice and collapse of fixed exchange rates

Hefeker, Carsten - 1995

Evidence suggests there is a strong tendency among states to choose fixed exchange rates. Yet he interpretation of fixed exchange rates as a monetary policy rule remains unconvincing. Adopting an endogenous policy perspective, this paper argues that political-support maximizing governments...

Persistent link: https://www.econbiz.de/10009681117

The "uncovered inflation rate parity" condition in a monetary union

Acocella, Nicola; Pasimeni, Paolo - 2018

), the problem of instability is simply transferred to inflation rate differentials, what we call the (impossibility of the …) "uncovered inflation rate parity condition" in a monetary union. The analysis of the actual divergences and imbalances in the EMU …, then, suggests that failure to respect the "uncovered inflation rate parity condition" in a monetary union may lead to …

Persistent link: https://www.econbiz.de/10011926988

Essays in monetary and international macroeconomics

Kaufmann, Christoph - 2017

Persistent link: https://www.econbiz.de/10012128782

Stochastic process switching and intervention in exchange rate target zones : empirical evidence from the EMS

Weber, Axel A. - 1991

In exchange rate target zone models the commitment of policymakers to intervene at the boundaries of the band gives rise to speculation which stabilizes exchange rates within the band. The empirical implications of such stochastic process switching are discussed and their relevance for the...

Persistent link: https://www.econbiz.de/10011613863

Exchange rates, target zones and international trade : the importance of the policy making framework

Weber, Axel A. - 1993

Stylized empirical facts about the correlation between the volume of international trade and exchange rate variability/uncertainty are at odds with the predictions of the simple open economy model. The present paper argues that this puzzle may be explained by drawing on the recent theoretical...

Persistent link: https://www.econbiz.de/10011615388

Optimal fiscal substitutes for the exchange rate in a monetary union

Kaufmann, Christoph - 2016

This paper studies Ramsey-optimal monetary and fiscal policy in a New Keynesian 2-country open economy framework, which is used to assess how far fiscal policy can substitute for the role of nominal exchange rates within a monetary union. Giving up exchange rate flexibility leads to welfare...