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The Real Exchange Rate in the Long Run : Balassa-Samuelson Effects Reconsidered
Bordo, Michael D. - 2014
Historical data for over hundred years and 14 countries is used to estimate the long-run effect of productivity on the … real exchange rate. We find large variations in the productivity effect across four distinct monetary regimes in the sample … argue that changes in trade costs over time may affect the impact of productivity on the real exchange rate over time. We …
Persistent link: https://www.econbiz.de/10013050476
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The Real Exchange Rate in the Long Run: Balassa-Samuelson Effects Reconsidered
Bordo, Michael D.; Choudhri, Ehsan U.; Fazio, Giorgio; … - CESifo - 2014
Historical data for over hundred years and 14 countries is used to estimate the long-run effect of productivity on the … real exchange rate. We find large variations in the productivity effect across four distinct monetary regimes in the sample … argue that changes in trade costs over time may affect the impact of productivity on the real exchange rate over time. We …
Persistent link: https://www.econbiz.de/10010877817
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International Financial Market Integration, Asset Compositions, and the Falling Exchange Rate Pass-Through
Enders, Almira - 2018
This paper provides an explanation for the observed decline of the exchange rate pass-through into import prices by modeling the effects of financial market integration on the optimal choice of the pricing currency in the context of rigid nominal goods prices. Contrary to previous literature, we...
Persistent link: https://www.econbiz.de/10012933708
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Monetary Policy, Model Uncertainty and Exchange Rate Volatility
Markiewicz, Agnieszka - 2021
This paper proposes an explanation of the shifts in the volatility of exchange rate returns that relies on standard present value exchange rate models. Agents are uncertain about the true data generating model and deal with the model uncertainty by making inference on the models and their...
Persistent link: https://www.econbiz.de/10013316252
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Terms of Trade, Catch-Up, and Home Market Effect : The Example of Japan
Urban, Dieter M. - 2021
interdependencies between the terms of trade and economic growth are offered: the home market effect and the productivity shock effect …
Persistent link: https://www.econbiz.de/10013316647
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Terms of Trade, Catch-up, and Home Market Effect: The Example of Japan
Urban, Dieter M. - CESifo - 2007
interdependencies between the terms of trade and economic growth are offered: the home market effect and the productivity shock effect …
Persistent link: https://www.econbiz.de/10005405944
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Exchange Rate Misalignment - The Case of the Chinese Renminbi
Cheung, Yin-Wong - 2013
Assessing exchange rate misalignment is not an easy task. With reference to the debate on the value of China's currency, the renminbi (RMB), this article highlights a few challenges in properly assessing the extent of currency misalignment. The results derived from the fundamental equilibrium...
Persistent link: https://www.econbiz.de/10013091077
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Exchange Rate Misalignment Estimates - Sources of Differences
Cheung, Yin-Wong - 2013
We study the differences of currency misalignment estimates obtained from alternative datasets derived from two International Comparison Program (ICP) surveys. A decomposition exercise reveals that the year 2005 misalignment estimates are substantially affected by the ICP price revision....
Persistent link: https://www.econbiz.de/10013092474
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Exchange Rates Dynamics in a Target Zone - A Heterogeneous Expectations Approach
Bauer, Christian; De Grauwe, Paul; Reitz, Stefan - 2021
The target zone model of Krugman (1991) has failed empirically. In this paper, we develop a model of the exchange rate with heterogeneous agents in a free floating and a target zone regime. We show that this simple model mimics the empirical puzzles of exchange rates: excessive volatility, fat...
Persistent link: https://www.econbiz.de/10013316875
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Dissecting the PPP Puzzle : The Unconventional Roles of Nominal Exchange Rate and Price Adjustments
Cheung, Yin-Wong; Lai, Kon S.; Bergman, U. Michael - 2021
The conventional view, as expounded by sticky-price models, is that price adjustment determines the PPP reversion rate. This study examines the mechanism by which PPP deviations are corrected. Nominal exchange rate adjustment, not price adjustment, is shown to be the key engine governing the...
Persistent link: https://www.econbiz.de/10013319983