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Regime Shifts and the Stability of Backward Looking Phillips Curves in Open Economies

Castelnuovo, Efrem - EconWPA - 2005

In this paper we assess the stability of open economy backward-looking Phillips curves estimated over two different exchange rate regimes. The pseudo-data employed in our econometric exercise come from the simulation of a New-Keynesian hybrid model suited for performing monetary policy analysis....

Persistent link: https://www.econbiz.de/10005076797

The Real Interest Differential Model after Twenty Years

Isaac, Alan G.; Mel, Suresh de - EconWPA - 1999

It has been twenty years since Frankel (1979) offered the classic empirical support for the Dornbusch (1976) overshooting model against the simple monetary approach model, and almost that long since Driskill and Sheffrin (1981) uncovered some important inconsistencies between Frankel’s...

Persistent link: https://www.econbiz.de/10005124947

WHAT DOES REALLY DISCIPLINE FISCAL POLICY IN EMERGING MARKETS? THE ROLE AND DYNAMICS OF EXCHANGE RATE REGIMES

Alberola, Enrique; Molina, Luis - EconWPA - 2005

Fixing the exchange rate stabilises inflation and reduces monetary seignoriage, a key source of financing under the fiscal dominance hypothesis. However, the link between fixed exchange rate regimes and fiscal discipline in emerging markets has been found to be weak. This paper thoroughly...

Persistent link: https://www.econbiz.de/10005125499

Exchange rates and employment in Turkish manufacturing

Filiztekin, Alpay - EconWPA - 2005

This paper investigates the effects of exchange rate fluctuations on Turkish manufacturing employment and wages using data for a panel of manufacturing industries over the period 1981-1999. The net effect of depreciations are found to be negative for both employment and wages, though the effects...

Persistent link: https://www.econbiz.de/10005125502

Financial contagion, interest rates and the role of the exchange rate as shock absorber in Central and Eastern Europe

Habib, Maurizio Michael - EconWPA - 2002

This paper studies the impact of external factors on daily exchange rates and short-term interest rates in the Czech Republic, Hungary and Poland during the period August 1997 – May 2001. I find that neither exchange rates nor interest rates are influenced by short-term German interest rates....

Persistent link: https://www.econbiz.de/10005125528

Aspects of Exchange Rate Behaviour and Management in India 1993- 98

Kohli, Renu - EconWPA - 2004

The change in regime in India from a multi-currency peg to a floating price convertibility provides sufficient motivation for a preliminary analysis of the country s exchange rate behaviour and management between 1993-99.Using international experience as a comparator, the paper finds several...

Persistent link: https://www.econbiz.de/10005125540

Equilibrium Exchange Rates in Transition Countries: Evidence from Dynamic Heterogeneous Panel Models

Kim, Byung-Yeon; Korhonen, Iikka - EconWPA - 2002

We use a dynamic heterogeneous panel model to estimate real equilibrium exchange rates for advanced transition countries. Our method is based on out-of-sample estimations from middle-income and high-income countries, and we use a pooled mean group estimator. We find that exchange rates have...

Persistent link: https://www.econbiz.de/10005126445

Are Exchange Rates Really Random Walks? Some Evidence Robust to Parameter Instability

Rossi, Barbara - EconWPA - 2005

Many authors have documented that it is challenging to explain exchange rate fluctuations with macroeconomic fundamentals: a random walk forecasts future exchange rates better than existing macroeconomic models. This paper applies newly developed tests for nested model that are robust to the...

Persistent link: https://www.econbiz.de/10005062396

The interplay of export supply and the real exchange rate. Evidence for Mercosur exports to the EU.

Felicitas Nowak-Lehmann D.; Zarzoso, Inmaculada Martínez- - EconWPA - 2003

This paper applies a dynamic macroeconomic trade model to assess Mercosur-European Union trade. Looking at export … common effect model. The variables income and income-absorption surplus are found to be important determinants of trade flows … changes in the real exchange rate seem to play no role for current total export trade in the short-and medium-term. Having …

Persistent link: https://www.econbiz.de/10005062646

Exchange RAte Dynamics with Financial Repression: A Test of Exchange Rate Models for India

Kohli, Renu; Kletzer, Kenneth - EconWPA - 2004

This paper examines the relevance of the monetary approach for exchange rate behaviour in India, unde rthe managed float regime. It finds supprot for purchaisng power parity in traded goods and that the monetary approach provdies a reasonable description of exchange rate behaviour in the period...

Persistent link: https://www.econbiz.de/10005408178