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Foreign currency denominated assets and international shock absorption in Switzerland and Japan

Schnabl, Gunther - 2015

Currencies of countries with persistent current account surpluses and high foreign currency denominated assets such as the Swiss franc and Japanese yen are under a persistent appreciation pressure, what restricts the degree of freedom in the choice of exchange rate regime. Official announcements...

Persistent link: https://www.econbiz.de/10011392509

China's exchange rate and financial repression : the conflicted emergence of the renminbi as an international currency

McKinnon, Ronald I.; Schnabl, Gunther - 2014

China has been provoked into speeding renminbi internationalization. But despite rapid growth in offshore financial markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls-reinforced by financial repression in domestic interest rates→to avoid an...

Persistent link: https://www.econbiz.de/10010249643

China and its Dollar exchange rate : a worldwide stabilizing influence?

McKinnon, Ronald I.; Schnabl, Gunther - 2011

We argue that criticism concerning the Chinese dollar peg is misplaced as no predictable link exists between the exchange rate and the trade balance of an international creditor economy. The stable nominal yuan/dollar rate is argued to have stabilized Chinese, East Asian and global growth....

Persistent link: https://www.econbiz.de/10009127709

The impact of Yuan internationalization on the Euro-Dollar exchange rate

Bénassy-Quéré, Agnès; Forouheshfar, Yeganeh - 2013

the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the … euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the … shock. -- China ; yuan ; exchange-rate regime ; euro ; dollar …

Persistent link: https://www.econbiz.de/10009721995

Wage setting under different monetary regimes

Holden, Steinar - 2002

In an economy with large wage setters (like industry unions), the monetary regime affects the trade-off between consumer real wages and employment and profits faced by the wage setters. This paper shows that an exchange rate target, including participation in a monetary union, is likely to...

Persistent link: https://www.econbiz.de/10011408717

A risk allocation approach to optimal exchange rate policy

Mundaca, B. Gabriela (contributor); Strand, Jon (contributor) - 2004

We derive the optimal exchange rate policy for a small open economy subject to terms-oftrade shocks. Firm owners and workers are risk averse but workers more so. Wages are given or partially indexed in the short run, and capital markets are imperfect. The government sets the exchange rate to...

Persistent link: https://www.econbiz.de/10002524066

Exit strategies, capital flight and speculative attacks : Europe's version of the trilemma

Steiner, Andreas; Steinkamp, Sven; Westermann, Frank - 2017

proposing a theory-based index of exchange market pressure within the euro area. We argue that the euro area entails an inherent …

Persistent link: https://www.econbiz.de/10011754245

The renminbi central parity : an empirical investigation

Cheung, Yin-Wong; Hui, Cho H.; Tsang, Andrew - 2016

On August 11 2015, China revamped its procedure of setting the official central parity of the renminbi (RMB) against the US dollar. Our empirical investigation shows that the intertemporal dynamics of China's central parity are not the same before and after this policy change. They are more...

Persistent link: https://www.econbiz.de/10011497600

How economic, political and institutional factors influence the choice of exchange rate regimes? : new evidence from selected countries of the MENA region

Maraoui, Najia; Hadj Amor, Thouraya; Khefacha, Islem; … - 2022

In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run random-effects ordered probit regressions of the...

Persistent link: https://www.econbiz.de/10013177144

Pegxit pressure : evidence from the classical gold standard

Mitchener, Kris; Pina, Gonçalo - 2016

We develop a simple model that highlights the costs and benefits of fixed exchange rates as they relate to trade, and show that negative export-price shocks reduce fiscal revenue and increase the likelihood of an expected currency devaluation. Using a new high-frequency data set on...

Persistent link: https://www.econbiz.de/10011568741