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January 1993 to December 2020 for five inflation-targeting countries (the UK, Canada, Australia, New Zealand and Sweden) and … speed is twice as fast when deviations are small and the credibility of the central bank is higher. Third, inflation …
Persistent link: https://www.econbiz.de/10012491545
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We test a simple model of exchange rate regime choice with data for 65 non-OECD countries covering the period 1980-94.We find that the variance of output at home and in potential target c ountries as well as the correlation between home and foreign real activity are powerful and robust...
Persistent link: https://www.econbiz.de/10009781534
China has been provoked into speeding renminbi internationalization. But despite rapid growth in offshore financial … repression in domestic interest rates→to avoid an avalanche of foreign capital inflows that would threaten inflation and asset … could attract even more hot money inflows, the People's Bank of China should focus on tightly stabilizing the yuan/ dollar …
Persistent link: https://www.econbiz.de/10010249643
Since 2004, China has been backed into a situation where the renminbi is expected to go ever higher against the dollar ….S. dollar, the resulting monetary explosion in China contributes to the worldwide increase in primary commodity priceswith … excess liquidity reminiscent of the global inflation generated by the weak dollar in the 1970s. -- Inflation ; exchange rates …
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experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the "standard model" suffice to explain the broad contours of macroeconomic outcomes in …
Persistent link: https://www.econbiz.de/10013201664
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
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