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Macroeconomic Policy and Economic Performance

de Lima, Pedro - 2003

economies. The general findings for monetary policy are that, while it was costly to lower inflation (in terms of output and … inflation further from its already low level. While inflation was being lowered, in a number of cases central banks were also … evidence that these changes have helped in terms of better anchoring inflation expectations. At the same time there is no firm …

Persistent link: https://www.econbiz.de/10012444501

Policy options to durably resolve euro area imbalances

Guillemette, Yvan; Turner, David - 2013

labour and product markets more flexible, accepting above-normal inflation for an extended period and boosting demand …

Persistent link: https://www.econbiz.de/10009767761

Risk-premia, carry-trade dynamics, and economic value of currency speculation

Wagner, Christian - In: Journal of International Money and Finance 31 (2012) 5, pp. 1195-1219

In this paper, we derive the dynamics and assess the economic value of currency speculation by formalizing the concept of a trader inaction range. We show that exchange rate returns comprise a time-varying risk-premium and that uncovered interest parity (UIP) holds in a speculative sense. The...

Persistent link: https://www.econbiz.de/10010599337

Purchasing power parity in the eastern Caribbean currency union

Simmons, Walter; Aggarwal, Raj - In: Journal of Developing Areas 38 (2004) 2, pp. 155-169

There is increasing interest in regional trade, investment, and currency blocs, and in the optimal public policies for such blocs. There is also much managerial interest in the co-movement of exchange rates in a region. The Eastern Caribbean Currency Bloc is one of only three (and one of the...

Persistent link: https://www.econbiz.de/10011213280

The Micro-Macro Disconnect of Purchasing Power Parity

Bergin, Paul R.; Glick, Reuven; Wu, Jyh-Lin - In: The Review of Economics and Statistics 95 (2013) 3, pp. 798-812

This paper reconciles the persistence of aggregate real exchange rates with the faster adjustment of international relative prices in microeconomic data. Error correction model estimates indicate that a different mix of shocks drives international price deviations at the microeconomic level and...

Persistent link: https://www.econbiz.de/10011009866

What Does the Yield Curve Tell Us about Exchange Rate Predictability?

Chen, Yu-chin; Tsang, Kwok Ping - In: The Review of Economics and Statistics 95 (2013) 1, pp. 185-205

Persistent link: https://www.econbiz.de/10011009952

Carry Trade and Momentum in Currency Markets

Burnside, Craig; Eichenbaum, Martin; Rebelo, Sérgio - C.E.P.R. Discussion Papers - 2011

We examine the empirical properties of the payoffs to two popular currency speculation strategies: the carry trade and momentum. We review three possible explanations for the apparent profitability of these strategies. The first is that speculators are being compensated for bearing risk. The...

Persistent link: https://www.econbiz.de/10009003384

The J- and S-curves: a survey of the recent literature

Bahmani-Oskooee, Mohsen; Hegerty, Scott W. - In: Journal of Economic Studies 37 (2010) September, pp. 580-596

Purpose – Since the introduction of the concepts of the J- and S-curves, many researchers have tried to verify their validity empirically. This paper aims to review the related papers and to offer direction for future research. Design/methodology/approach – This is a review paper. As such,...

Persistent link: https://www.econbiz.de/10009143642

Properties of Foreign Exchange Risk Premiums

Sarno, Lucio; Schneider, Paul; Wagner, Christian - C.E.P.R. Discussion Papers - 2011

We study the properties of foreign exchange risk premiums that can explain the forward bias puzzle, defined as the tendency of high-interest rate currencies to appreciate rather than depreciate. These risk premiums arise endogenously from the no-arbitrage condition relating the term structure of...

Persistent link: https://www.econbiz.de/10009209825

China’s Dominance Hypothesis and the Emergence of a Tri-polar Global Currency System

Fratzscher, Marcel; Mehl, Arnaud - C.E.P.R. Discussion Papers - 2011

This paper assesses whether the international monetary system is already tri-polar and centred around the US dollar, the euro and the Chinese renminbi (RMB). It focuses on what we call China’s" dominance hypothesis", i.e. whether the renminbi is already the dominant currency in Asia, exerting...

Persistent link: https://www.econbiz.de/10009371469