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, which amplify the transmission mechanism of labor reallocation upon commodity price volatility. When labor and product …
Persistent link: https://www.econbiz.de/10012950392
-term volatility, particularly vis-a-vis the U.S. dollar. The degree of smoothing declined noticeably after the Asian Financial Crisis …
Persistent link: https://www.econbiz.de/10012977802
Many emerging market economies have relied on foreign exchange intervention (FXI) in response to gross capital inflows. In this paper, we study whether FXI has been an effective tool to dampen the effects of these inflows on the exchange rate. To deal with endogeneity issues, we look at the...
Persistent link: https://www.econbiz.de/10013016592
practice. One reason why countries may wish to limit exchange rate volatility is potential negative balance sheet effects due …
Persistent link: https://www.econbiz.de/10012998804
This paper assesses the role of trade patterns in shaping the volatility of the effective exchange rate under two …
Persistent link: https://www.econbiz.de/10013108613
(RBA) have had on the level and volatility of the Australian dollar exchange rate. First, using an event study we evaluate … Australian dollar. Second, we investigate the effects of RBA intervention policies on exchange rate volatility over the floating … volatility, which suggests that official intervention may have added to market uncertainty. Overall, the effects of RBA …
Persistent link: https://www.econbiz.de/10013211943
This paper develops a new approach for exploring the effectiveness of foreign currency intervention, focusing on real exchange cycles. Using band spectrum regression methods, it examines the role of macroeconomic fundamentals in determining the equilibrium real exchange rate at short-, medium-,...
Persistent link: https://www.econbiz.de/10014079011
We quantify the effect of exchange rate fluctuations on firm leverage. When home currency appreciates, firms who hold foreign currency debt and local currency assets observe higher net worth as appreciation lowers the value of their foreign currency debt. These firms can borrow more as a result...
Persistent link: https://www.econbiz.de/10013250079
This paper examines the impact of Dollar exchange rate volatility on firm productivity in Emerging Markets economies … volatility reduces firm productivity growth. Exploring channels, its finds that the results are driven by countries with low … impact on firm productivty. Further, exploiting firm level data, the paper shows that dollar exchange rate volatility …
Persistent link: https://www.econbiz.de/10014350158
Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the...
Persistent link: https://www.econbiz.de/10012907952