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Exchange Rate Choices with Inflexible Markets and Costly Price Adjustments
Iyer, Tara - 2017
This paper analyzes the appropriate choice of an exchange rate regime in agricultural commodity-exporting economies. In an open economy model that incorporates key structural characteristics of agricultural commodity exporters including dual labor markets, the benefits of exchange rate...
Persistent link: https://www.econbiz.de/10012950392
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The Cost of Foreign Exchange Intervention : Concepts and Measurement
Adler, Gustavo - 2016
The accumulation of large foreign asset positions by many central banks through sustained foreign exchange (FX) intervention has raised questions about its associated fiscal costs. This paper clarifies conceptual issues regarding how to measure these costs both from an ex-post and an ex-ante...
Persistent link: https://www.econbiz.de/10012977750
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Exchange-Rate Swings and Foreign Currency Intervention
Filardo, Andrew; Gelos, Gaston; McGregor, Thomas - 2022
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
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Destabilizing Stability? Exchange Rate Arrangements and Foreign Currency Debt
Csonto, Balazs - 2021
Emerging markets (EMs) often respond to shocks by intervening in foreign exchange (FX) markets and thus preventing full exchange rate adjustment. This response can serve to dampen the effect of shocks and increase monetary policy space but may also incentivize economic participants to increase...
Persistent link: https://www.econbiz.de/10013315118
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Exchange Rates and Trade : A Disconnect?
Leigh, Daniel - 2017
We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over...
Persistent link: https://www.econbiz.de/10012956490
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Exchange Rate Misalignment and Growth : A Myth?
Goncalves, Carlos - 2018
The impact of real exchange rate movements on GDP growth is a hotly debated issue bothin policy and academic circles. In this paper, we provide evidence suggesting that theassociation between exchange rate misalignment and growth for a broad panel ofcountries is very weak. Controlling for...
Persistent link: https://www.econbiz.de/10012929924
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Inflation Targeting and Exchange Rate Regimes in Emerging Markets
Ebeke, Christian - 2016
This paper investigates the effects of the adoption of inflation targeting (IT) on the choice of exchange rate regime …
Persistent link: https://www.econbiz.de/10013002150
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Foreign Exchange Intervention Rules for Central Banks : A Risk-Based Framework
Lafarguette, Romain; Veyrune, Romain - 2021
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market...
Persistent link: https://www.econbiz.de/10013243054
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Monetary Policy Under an Exchange Rate Anchor
El Hamiani Khatat, Mariam; Buessings-Loercks, Mark; … - 2021
while the policy rate can target the exchange rate. An exchange rate anchor is compatible with an inflation objective …
Persistent link: https://www.econbiz.de/10013315111
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Tunisia Monetary Policy Since the Arab Spring : The Fall of the Exchange Rate Anchor and Rise of Inflation Targeting
End, Nicolas; El Hamiani Khatat, Mariam; Kolsi, Rym - 2021
In this paper, we argue that inflation targeting could be the future of Tunisia's monetary policy. Monetary targeting … reserves, current account deficit, and inflation differentials with main trading partners. The Central Bank of Tunisia has … already made important progress toward inflation targeting. The paper evidences the existence of increasingly effective …
Persistent link: https://www.econbiz.de/10013315123