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Trade Liberalization, Macroeconomic Adjustment, and Welfare; Unifying Trade and Macro Models

Choudhri, Ehsan U.; Faruqee, Hamid; Tokarick, Stephen - International Monetary Fund (IMF) - 2006

Trade liberalization leads to long-run gains, but it can also involve costly short-run macroeconomic adjustment. The … elements of both international trade and macroeconomic models. The welfare effect of trade liberalization is decomposed into a …

Persistent link: https://www.econbiz.de/10011242371

Exchange Rate Regime Considerations for Jordan and Lebanon

Bhattacharya, Rina - International Monetary Fund (IMF) - 2003

This paper addresses the issue of the appropriate exchange rate regimes for Jordan and Lebanon in the context of the literature on optimum currency areas and the arguments concerning the use of the exchange rate as a nominal anchor for the economy. It presents some empirical results on the...

Persistent link: https://www.econbiz.de/10005768808

Currency Boards, Credibility, and Macroeconomic Behavior

Sy, Amadou N. R.; Rivera-Batiz, Luis - International Monetary Fund (IMF) - 2000

Currency boards operate differently from standard pegs. The former exhibit greater currency stability and lower transaction costs, inflation, and nominal interest rates, but are limited in their use of devaluation. We extend Drazen and Masson’s (1994) signaling model to consider the choice...

Persistent link: https://www.econbiz.de/10005768949

Exchange Rates in the Periphery and International Adjustment Under the Gold Standard

Catão, Luis; Solomou, Solomos - International Monetary Fund (IMF) - 2003

builds a new dataset on trade-weighed exchange rates for the period 1870-1913 and finds that large currency movements in … exchange rates worldwide. We relate the phenomenon to the international trade structure at the time and show that such currency … fluctuations had powerful effects on trade flows. We conclude that nominal exchange rate flexibility in the periphery was an …

Persistent link: https://www.econbiz.de/10005769107

Evolution and Performance of Exchange Rate Regimes

Husain, Aasim M.; Mody, Ashoka; Oomes, Nienke; Brooks, Robin - International Monetary Fund (IMF) - 2003

Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis...

Persistent link: https://www.econbiz.de/10005599274

Europe and Global Imbalances

Lane, Philip R.; Milesi-Ferretti, Gian-Maria - International Monetary Fund (IMF) - 2007

Although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and … alternative scenarios, emphasizing both trade and financial channels. Finally, we consider heterogeneous exposure across …

Persistent link: https://www.econbiz.de/10005599397

Are Pegged and Intermediate Regimes More Crisis Prone?

Bubula, Andrea; Ötker, Inci - International Monetary Fund (IMF) - 2003

This paper provides evidence on the susceptibility of different types of exchange rate regimes to currency crises during 1990-2001. It explores the incidence of crises, identified as episodes of severe exchange market pressure, to seek evidence on whether pegged regimes are more crisis prone...

Persistent link: https://www.econbiz.de/10005604829

Net Foreign Assets and International Adjustment; The United States, Japan, and Germany

Horne, Jocelyn; Masson, Paul R.; Kremers, Jeroen J. M. - International Monetary Fund (IMF) - 1993

This paper examines external adjustment in the United States, Japan and Germany from the perspective of net foreign asset positions. It asks two questions: What are, in the long run, the determinants of net foreign asset equilibrium? and: What are, in the short run, some of the adjustment...

Persistent link: https://www.econbiz.de/10005604961

Parity Reversion in Real Exchange Rates; Fast, Slow or Not At All?

McDermott, C. John; Cashin, Paul - International Monetary Fund (IMF) - 2004

Consensus estimates put the half-life of deviations from purchasing power parity (PPP) at about four years (Rogoff, 1996). However, conventional least squares estimates of half-lives are biased downward. Accordingly, as a preferred measure of the persistence of real exchange rate shocks, this...

Persistent link: https://www.econbiz.de/10005604970

Do Fixed Exchange Rates Induce More Fiscal Discipline?

Sun, Yan - International Monetary Fund (IMF) - 2003

Conventional wisdom has held that a fixed exchange rate regime induces more fiscal discipline, but Tornell and Velasco (1995, 1998) argue the opposite. Using a dynamic model with fragmented fiscal policymaking, this paper evaluates the two arguments in a single framework and shows that (1)...

Persistent link: https://www.econbiz.de/10005604987