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We present a model of a quot;softquot; exchange rate target zone and interpret it as a stylized description of the post-August 1993 ERM. Our central bank targets a moving average of the current and past exchange rates, rather than the exchange rate's current level, thus allowing the rate to move...
Persistent link: https://www.econbiz.de/10012782117
the U.S. dollar) currency depreciation of emerging market economies. We also show the negative effect on emerging markets …
Persistent link: https://www.econbiz.de/10013015605
these do not display a uniform importance across currency pairs and time, and some are associated with possible temporary …
Persistent link: https://www.econbiz.de/10012892902
This paper investigates possible drivers of volatility in the South African rand since the onset of the global financial crisis. We assess the role played by local and international economic surprises, commodity price volatility, global market risk perceptions, and local political uncertainty....
Persistent link: https://www.econbiz.de/10012977761
the Canadian $ and the Euro; (iii) oil price shocks play a particularly important role for the Canadian $ (an oil exporter …
Persistent link: https://www.econbiz.de/10012977825
volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate …
Persistent link: https://www.econbiz.de/10012864100
We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o … without a currency hedge and about the same with a currency hedge when compared to the euro. This observed parity in currency … short maturities, attributes similar to those of safe sovereigns. Finally, we find that firms flexibly adjust the currency …
Persistent link: https://www.econbiz.de/10013306776
This paper examines the impact of Dollar exchange rate volatility on firm productivity in Emerging Markets economies (EMs). Using firm level data covering 16 EMs over the period 1998 -2019, the paper shows that dollar exchange rate volatility reduces firm productivity growth. Exploring channels,...
Persistent link: https://www.econbiz.de/10014350158
This paper explores the effects of unconventional monetary and exchange rate policies. We find that official foreign asset purchases have large effects on current accounts that diminish as capital mobility rises and spill over to financially integrated countries. There is an additional effect...
Persistent link: https://www.econbiz.de/10012956495
emerging Asia. Our main result is that, despite an appreciation of their currencies vis-a-vis the yen, the impact on emerging … Asia's GDP tended to be positive and significant. Our results suggest that the positive effect of QQE on expectations, by …
Persistent link: https://www.econbiz.de/10012977736