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Why has the yen failed to become a dominant invoicing currency in Asia? A firm-level analysis of Japanese Exporters' invoicing behavior

Ito, Takatoshi - 2010

the yen's status as an only fully convertible currency in Asia, two patterns stand out as puzzling features of an …It has been a well-known puzzle why the yen has not been used more in trade invoicing among Japanese exporters. Despite … excessively small share of yen invoicing: First, a strong tendency of Japanese exporters to choose importer's currency in their …

Persistent link: https://www.econbiz.de/10012462424

Globalisation, Pass-through and the Optimal Policy Response to Exchange Rates

Devereux, Michael B. - 2014

Most central banks in Asia have actively used sterilised foreign exchange intervention as a policy tool to smooth … Asia is decreasing …

Persistent link: https://www.econbiz.de/10012458414

The Plaza Accord, 30 Years Later

Frankel, Jeffrey - 2015

The paper reviews an event of 30 years ago from the perspective of today: a successful G-5 initiative to reverse what had been an overvalued dollar. The "Plaza Accord" is best viewed not as the precise product of the meeting on September 22, 1985, but as shorthand for a historic change in US...

Persistent link: https://www.econbiz.de/10012456857

Devaluation with Contract Redenomination in Argentina

Calomiris, Charles - 2006

This study offers the first empirical microeconomic analysis of the effectiveness of dollar debt and contract redenomination policies to mitigate adverse financial and relative price consequences from a large devaluation. An analysis of Argentina's policy of devaluation with redenomination in...

Persistent link: https://www.econbiz.de/10012466017

Are Currency Appreciations Contractionary in China?

Shi, Jianhuai - 2006

The Chinese economy has been in a state of external and internal imbalances for some years, which has something to do with the undervaluation of renminbi (RMB). But the Chinese Government hesitates to allow RMB to appreciate because of the worry that RMB appreciations are contractionary thus...

Persistent link: https://www.econbiz.de/10012466112

Swiss Exchange Rate Policy in the 1930s. Was the Delay in Devaluation Too High a Price to Pay for Conservatism?

Bordo, Michael - 2006

In this paper we examine the experience of Switzerland's devaluation in 1936. The Swiss case is of interest because Switzerland was a key member of the gold bloc, and much of the modern academic literature on the Great Depression tries to explain why Switzerland and the other gold bloc...

Persistent link: https://www.econbiz.de/10012466174

Real Exchange Rate Targeting and Macroeconomic Instability

Uribe, Martin - 2002

Using an optimizing model of a small open economy, this paper studies the macroeconomic effects of PPP rules whereby the government increases the devaluation rate when the real exchange rate defined as the price of tradables in terms of nontradables is below its long-run level and reduces the...

Persistent link: https://www.econbiz.de/10012469413

Was the Federal Reserve Fettered? Devaluation Expectations in the 1932 Monetary Expansion

Hsieh, Chang-Tai - 2001

A key question about the Great Depression is whether expansionary monetary policy in the United States would have led to a loss of confidence in the U. S. commitment to the gold standard. This paper uses the $1 billion expansionary open market operation undertaken in the spring of 1932 as a...

Persistent link: https://www.econbiz.de/10012470616

Devaluation Risk and the Syndrome of Exchange-Rate-Based Stabilizations

Mendoza, Enrique G. - 1999

This paper shows that the risk of devaluation can be an important factor accounting for the stylized facts of exchange-rate-based stabilizations. This conclusion follows from studying the quantitative implications of a two-sector equilibrium business cycle model of a small open economy...

Persistent link: https://www.econbiz.de/10012471786

Stochastic Devaluation Risk and the Empirical Fit of Target Zone Models

Bertola, Giuseppe - 1991

This paper proposes a tractable and realistic nonlinear model of exchange rate dynamics, and argues that its predictions are consistent with available empirical evidence on exchange rate and interest differential behavior in real-life target zones. In our model, the exchange rate fluctuates...

Persistent link: https://www.econbiz.de/10012475444