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Shock Therapy! What Role for Thai Monetary Policy?

Alp, Harun - 2012

Thailand had to endure three major shocks during 2008-2011: the global financial crisis, the Japanese earthquake, and the Thai floods of 2011. Over this period, consistent with its inflation targeting framework, the Bank of Thailand (BOT) let the exchange rate depreciate and cut interest rates...

Persistent link: https://www.econbiz.de/10013096276

Exchange Rate and Foreign Interest Rate Linkages for Sub-Saharan Africa Floaters

Thomas, Alun H. - 2014

The paper considers the determinants of exchange rate movements among sub-Saharan countries that have flexible exchange rate regimes. The determinants are based on the law of one price and interest parity conditions. Results indicate that the exchange rates have responded significantly to...

Persistent link: https://www.econbiz.de/10013065150

Debt Limits and the Structure of Public Debt

Pienkowski, Alex - 2017

This paper provides a tractable framework to assess how the structure of debt instruments-specifically by currency denomination and indexation to GDP-can raise the debt limit of a sovereign. By calibrating the model to different country fundamentals, it is clear that there is no...

Persistent link: https://www.econbiz.de/10012955174

No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect

Carriere-Swallow, Yan - 2018

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

Evolution of Exchange Rate Behavior in the ASEAN-5 Countries

Klyuev, Vladimir - 2016

This paper examines exchange rate behavior in the ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand). It finds that for the last 10 years there is no evidence that their central banks target particular exchange rate levels against any currency or basket. Thus,...

Persistent link: https://www.econbiz.de/10012977802

Friedman Redux : External Adjustment and Exchange Rate Flexibility

Ghosh, Atish R. - 2014

Milton Friedman argued that flexible exchange rates would facilitate external adjustment. Recent studies find surprisingly little robust evidence that they do. We argue that this is because they use composite (or aggregate) exchange rate regime classifications, which often mask very...

Persistent link: https://www.econbiz.de/10013047975

Exchange Rate Flexibility and Credit During Capital Inflow Reversals : Purgatory…Not Paradise

Magud, Nicolás E. - 2014

We document the behavior of macro and credit variables during episodes of capital inflows reversals in economies with different degrees of exchange rate flexibility. We find that exchange rate flexibility is associated with milder credit growth during the boom but, even though smaller than in...

Persistent link: https://www.econbiz.de/10013053959

Comfort in Floating : Taking Stock of Twenty Years of Freely-Floating Exchange Rate in Chile

Albagli, Elias - 2020

Chile offers an example of a country that has overcome the fear of floating by reducing balance sheet mismatches … policy credibility. Under the floating regime, Chile's economic adjustment to external shocks appears significantly improved … credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller …

Persistent link: https://www.econbiz.de/10012828243

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

Weather Shocks and Exchange Rate Flexibility

Elekdag, Selim Ali; Tuuli, Maxwell - 2022

This paper assesses the stabilization properties of fixed versus flexible exchange rate regimes and aims to answer this research question: Does greater exchange rate flexibility help an economy’s adjustment to weather shocks? To address this question, the impact of weather shocks on real per...

Persistent link: https://www.econbiz.de/10014030697