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Balance-Sheet Diversification in General Equilibrium : Identification and Network Effects
Heipertz, Jonas - 2017
The paper uses disaggregated data on asset holdings and liabilities to estimate a general equilibrium model where each institution determines the diversification and size of the asset and liability sides of its balance-sheet. The model endogenously generates two types of financial networks: (i)...
Persistent link: https://www.econbiz.de/10012951889
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Balance-of-Payments Crises and Devaluation
Obstfeld, Maurice - 2021
The collapse of a fixed exchange rate is typically marked by a sudden balance-of-payments crisis in which"speculators" fleeing from the domestic currency acquire a large portion of the central bank's foreign exchange holdings.Faced with such an attack, the central bank often withdraws...
Persistent link: https://www.econbiz.de/10013220420
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Balance of Payments and the Foreign Exchange Market : A Dynamic Partial Equilibrium Model
Kouri, Pentti J.K - 2021
This paper develops a dynamic partial equilibrium model of the foreign exchange market extending the standard textbook model in two respects. First, capital account transactions are explicitly incorporated into the model, and secondly, 'rational' speculative behaviour is also introduced. At a...
Persistent link: https://www.econbiz.de/10013234961
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The Business Cycles of Balance-of-Payment Crises : a Revision of Mundellan Framework
Mendoza, Enrique G.; Uribe, Martín - 2021
In his seminal 1960 article Robert Mundell proposed a model of balance-of-payments crises in which confidence in the continuation of a currency peg depended on the observed holdings of central bank foreign reserves. We examine the implications of a reformulation of this view from the perspective...
Persistent link: https://www.econbiz.de/10013235602
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Exchange Rate and Current Account Dynamics Under Rational Expectations : An Econometric Analysis
Papell, David H. - 2022
An econometric portfolio balance model of an open economy, incorporating exchange rate, price, and current account dynamics, is derived and estimated.The usual stability conditions do not guarantee a unique rational expectations solution, and several proposals for resolving this situation are...
Persistent link: https://www.econbiz.de/10013323582
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On the Adequacy or Inadequacy of Keynesian Balance-of-Payments Theory : A Rejoinder
Buiter, Willem H.; Eaton, Jonathan - 2021
expansion appears to be the source of Kuska's erroneous indictment of "Keynesian" balance-of-payments theory.We also establish …
Persistent link: https://www.econbiz.de/10013230996
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Asset Markets, Exchange Rates and the Balance of Payments
Frenkel, Jacob A.; Mussa, Michael L. - 2022
This paper, written as a chapter for a Handbook of International Economics, reviews developments in the theory of … of exchange rate theory, starting with the monetary approach to exchange rate determination. Issues discussed in this … framework that views the question of exchange rate determination as part of the general theory of the determination of asset …
Persistent link: https://www.econbiz.de/10013309363
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Debt and Conditionality Under Endogenous Terms of Trade Adjustment
Aizenman, Joshua - 2010
The purpose of this study is to identify conditions under which renewed international. lending will benefit both the developed and the developing countries. Our analysis will evaluate how the presence of terms of trade adjust-rent and distorted credit markets affect the conditions for the...
Persistent link: https://www.econbiz.de/10013139886
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Trending Current Accounts
Choi, Horag - 2010
Trending current accounts pose a challenge for intertemporal open-economy macro models. This paper shows that a two-country representative-agent business cycle model is able to explain the historical time-paths of the US and Japanese current accounts, both of which display trends but in opposite...
Persistent link: https://www.econbiz.de/10013151370
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China's Current Account and Exchange Rate
Cheung, Yin-Wong - 2010
We examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and to economic activity. We find, first, that the Chinese currency, the renminbi (RMB), is substantially below the value predicted by estimates based upon a cross-country sample,...
Persistent link: https://www.econbiz.de/10012757953