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Optimal and Sustainable Exchange Rate Regimes : A Simple Game-Theoretic Approach

Kawai, Masahiro - 1992

This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares noncooperative equilibria under different assumptions of monetary policy...

Persistent link: https://www.econbiz.de/10014397821

Exchange Rate Appreciation As a Signal of a New Policy Stance

Winckler, Georg - 1991

It is shown in a game theoretic framework that it may pay off to signal a “conservative” policy stance--giving a high priority to price stability--by appreciating the exchange rate. Such an appreciation demonstrates to domestic producers and more precisely to the trade union that the new...

Persistent link: https://www.econbiz.de/10014398467

To bet or not to bet : copper price uncertainty and investment in Chile

Comelli, Fabio; Pérez Ruiz, Esther - 2016

prices' sharp decline and forecast uncertainty since the end of the commodity super-cycle has rekindled the debate on Chile … uncertainty using options contracts. VAR analysis shows that the investment response to an uncertainty shock of average magnitude … alternative definitions for investment, uncertainty, and options' maturing time …

Persistent link: https://www.econbiz.de/10011715577

Government Ponzi Games and Debt Dynamics Under Uncertainty

Bartolini, Leonardo - 1991

We investigate the conditions for sustainability of debt roll-over schemes under uncertainty. In contrast with the …

Persistent link: https://www.econbiz.de/10014398012

We are all in the same boat : cross-border spillovers of climate risk through international trade and supply chain

Feng, Alan; Li, Haishi - 2021

Are assets in a landlocked country subject to sea-level rise risk? In this paper, we study the cross-border spillovers of physical climate risks through international trade and supply chain linkages. As we base our findings on historical data between 1970 and 2018, we observe that globalization...

Persistent link: https://www.econbiz.de/10012487302

Destabilizing stability? : exchange rate arrangements and foreign currency debt

Csonto, Balazs; Gudmundsson, Tryggvi - 2020

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/10012301949

China's evolving exchange rate regime

Das, Sonali - 2019

China's exchange rate regime has undergone gradual reform since the move away from a fixed exchange rate in 2005. The renminbi has become more flexible over time but is still carefully managed, and depth and liquidity in the onshore FX market is relatively low compared to other countries with de...

Persistent link: https://www.econbiz.de/10012009461

Recent shifts in capital flow patterns in Korea : an investor base perspective

Hansen, Niels-Jakob Harbo; Krogstrup, Signe - 2019

Koreas cross border capital flows have tended to respond negatively in global risk-off episodes, resulting in volatility in the foreign exchange market and occasional policy responses in the form of foreign exchange interventions. We study the relationship between Korean capital flows and global...

Persistent link: https://www.econbiz.de/10012154900

Global value chains and external adjustment : do exchange rates still matter?

Adler, Gustavo; Meleshchuk, Sergii; Osorio Buitron, Carolina - 2019

The paper explores how international integration through global value chains shapes the working of exchange rates to induce external adjustment both in the short and medium run. The analysis indicates that greater integration into international value chains reduces the exchange rate elasticity...

Persistent link: https://www.econbiz.de/10012155213

Real exchange rate overshooting in large depreciations : determinants and consequences

Culiuc, Alexander - 2020

The consequences of large depreciations on economic activity depend on the relative strength of the contractionary balance sheet and expansionary expenditure switching effects. However, the two operate over different time horizons: the balance sheet effect hits almost immediately, while...

Persistent link: https://www.econbiz.de/10012251364