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How shocks affect international reserves? : a quasi-experiment of earthquakes

Jinjarak, Yothin; Noy, Ilan; Ta, Quy - 2020

/or inflation targeting regimes, and (iv) the patterns of reserves holding post-earthquake vary with a country’s income level. …

Persistent link: https://www.econbiz.de/10012300233

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

A tale of two surplus countries : China and Germany

Cheung, Yin-Wong; Steinkamp, Sven; Westermann, Frank - 2019

We analyze current account imbalances through the lens of the two largest surplus countries; China and Germany. We observe two striking patterns visible since the 2007/8 Global Financial Crisis. First, while China has been gradually reducing its current account surplus, Germany’s surplus has...

Persistent link: https://www.econbiz.de/10012024585

The relative effectiveness of spot and derivatives based intervention

Nedeljkovic, Milan; Saborowski, Christian - 2018 - This version: June 2018

This paper studies the relative effectiveness of foreign exchange intervention in spot and derivatives markets. We make use of Brazilian data where spot and non-deliverable futures based intervention have been used in tandem for more than a decade. The analysis finds evidence in favor of a...

Persistent link: https://www.econbiz.de/10011867236

Speculative eurozone attacks and departure strategies

Homburg, Stefan - 2018

This paper shows that the eurozone payment system does not effectively protect member states from speculative attacks. Suspicion of a departure from the common currency induces a terminal outflow of central bank money in weaker member states. TARGET2 cannot inhibit this drain but only protects...

Persistent link: https://www.econbiz.de/10011931367

The worst of both worlds : fiscal policy and fixed exchange rates

Born, Benjamin; D'Ascanio, Francesco; Müller, Gernot J.; … - 2019

Under fixed exchange rates, fiscal policy is an effective tool. According to classical views because it impacts the real exchange rate, according to Keynesian views because it impacts output. Both views have merit because the effects of government spending are asymmetric. A spending cut lowers...

Persistent link: https://www.econbiz.de/10012118599

Chinese exchange rate policy : lessons for global investors

Melvin, Michael; Westermann, Frank - 2020

Chinese currency policy has had a strong impact on the value of investors' portfolios in recent years. On August 11, 2015, the People's Bank of China announced a new exchange rate policy where the RMB central parity rate against the USD would be determined each morning by the previous day's...

Persistent link: https://www.econbiz.de/10012261124

The Eurozone as an inflation target zone

Della Posta, Pompeo; Tamborini, Roberto - 2022

aiming for two per cent inflation over the medium term", with "symmetric commitment" to this target. "Symmetry means that the … therefore analyse this policy strategy through a model of inflation target zone, with a central value and symmetric upper and … lower bounds on inflation, within which the central bank may decide not to intervene, provided inflation is expected to …

Persistent link: https://www.econbiz.de/10013413505

Macroeconomic policy and development in India : some analytical issues

Sen, Partha - 2022

Persistent link: https://www.econbiz.de/10013473920

Optimal exchange rate policy

Itskhoki, Oleg; Mukhin, Dmitry - 2023

We develop a general policy analysis framework for an open economy that features nominal rigidities and financial frictions giving rise to endogenous PPP and UIP deviations. The efficient allocation can be implemented with monetary policy closing the output gap and FX interventions eliminating...

Persistent link: https://www.econbiz.de/10014444401