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The Institutional Foundations of China’s Reforms and Development

Xu, Cheng-Gang - C.E.P.R. Discussion Papers - 2010

China’s economic reforms have resulted in spectacular growth and poverty reduction. However, China’s institutions look … ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve "China puzzle" this paper … analyses China’s institution - a regionally decentralized authoritarian system. The central government has control over …

Persistent link: https://www.econbiz.de/10008468688

Optimal Exchange Rate Policy in a Growing Semi-Open Economy

Bacchetta, Philippe; Benhima, Kenza; Kalantzis, Yannick - C.E.P.R. Discussion Papers - 2013

In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy …

Persistent link: https://www.econbiz.de/10011083998

Optimal Currency Shares in International Reserves: The Impact of the Euro and the Prospects for the Dollar

Papaioannou, Elias; Portes, Richard; Siourounis, Gregorios - C.E.P.R. Discussion Papers - 2006

market countries (Brazil, Russia, India and China), adding constraints that reflect a central bank’s desire to hold a sizable …

Persistent link: https://www.econbiz.de/10005791662

A Tractable Model of Precautionary Reserves, Net Foreign Assets, or Sovereign Wealth Funds

Carroll, Christopher D; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2009

We model the motives for residents of a country to hold foreign assets, including the precautionary motive that has been omitted from much previous literature as intractable. Our model captures many of the principal insights from the existing specialized literature on the precautionary motive,...

Persistent link: https://www.econbiz.de/10008528533

Currency Substitution and the Fluctuations of Foreign-Exchange Reserves with Credibly Fixed Exchange Rates

Giovannini, Alberto - C.E.P.R. Discussion Papers - 1991

A fixed-exchange-rate system is characterized by two pillars: monetary policy coordination and foreign exchange reserves. This paper concentrates on the fluctuation of foreign exchange reserves by taking monetary policy coordination as given: the sustainability of the fixed exchange rate regime...

Persistent link: https://www.econbiz.de/10005281365

External Liabilities and Crises

Catão, Luis A. V.; Milesi-Ferretti, Gian Maria - C.E.P.R. Discussion Papers - 2014

We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970-2011, we find that the ratio of net foreign liabilities to GDP is a significant crisis predictor. This is...

Persistent link: https://www.econbiz.de/10011083620

The Dollar and its Discontents

Jeanne, Olivier - C.E.P.R. Discussion Papers - 2012

Has the US dollar delivered the benefits that the rest of the world is expecting from its holdings of international liquidity? US government debt has been liquid and safe, and it is supplied in sufficient quantity. But it has given a low return to the countries that accumulated the most...

Persistent link: https://www.econbiz.de/10011084062

Understanding the Gains from Wage Flexibility: The Exchange Rate Connection

Galí, Jordi; Monacelli, Tommaso - C.E.P.R. Discussion Papers - 2014

We study the gains from increased wage flexibility and their dependence on exchange rate policy, using a small open economy model with staggered price and wage setting. Two results stand out: (i) the impact of wage adjustments on employment is smaller the more the central bank seeks to stabilize...

Persistent link: https://www.econbiz.de/10011083937

Optimal Policy for Macro-Financial Stability

Benigno, Gianluca; Chen, Huigang; Otrok, Christopher; … - C.E.P.R. Discussion Papers - 2012

In this paper we study whether policy makers should wait to intervene until a financial crisis strikes or rather act in a preemptive manner. We study this question in a relatively simple dynamic stochastic general equilibrium model in which crises are endogenous events induced by the presence of...

Persistent link: https://www.econbiz.de/10011084032

Monetary Policy with Flexible Exchange Rates and Forward Interest Rates as Indicators

Svensson, Lars E O - C.E.P.R. Discussion Papers - 1994

In the new situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates. One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short...

Persistent link: https://www.econbiz.de/10005791726