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Why Has the Euro Been Falling? An Investigation into the Determinants of the Exchange Rate
Sinn, Hans-Werner; Westermann, Frank - 2021
nineties and the puzzling decline of the euro during its virtual existence to changes in the demand for deutschmarks in eastern … the dollar and the weakness of the euro reflect the prosperity of the US and the weakness of the European economy on both …
Persistent link: https://www.econbiz.de/10013230968
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Policy Responses to Exchange-Rate Movements
Ball, Laurence - 2009
This paper examines policy responses to exchange-rate movements in a simple model of an open economy. The optimal response of monetary policy to an exchange-rate change depends on the source of the change: on whether the underlying shock is a shift in capital flows, manufactured exports, or...
Persistent link: https://www.econbiz.de/10013157763
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Exchange Rate Volatility, Monetary Policy, and Capital Mobility : Empirical Evidence on the Holy Trinity
Rose, Andrew Kenan - 2021
This paper uses a panel of data from twenty-two countries between 1967 and 1992 to explore the tradeoff between the 'Holy Trinity' of fixed exchange rates, independent monetary policy, and capital mobility. I use: flexible- and sticky-price monetary exchange rate models to parameterize monetary...
Persistent link: https://www.econbiz.de/10013245316
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Domestic and Multilateral Effects of Capital Controls in Emerging Markets
Pasricha, Gurnain Kaur - 2015
Using a novel, high frequency dataset on capital control actions in 16 emerging market economies (EMEs) from 2001 to 2012, we provide new insights into the domestic and multilateral effects of capital controls. Increases in capital account openness reduce monetary policy autonomy and increase...
Persistent link: https://www.econbiz.de/10013030625
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Offset and Sterilization Under Fixed Exchange Rates with an Optimizing Central Bank
Roubini, Nouriel - 2021
The traditional approach to the estimation of the offset and sterilization equations can be criticized for the ad-hoc specification of the reaction function of the monetary authorities and the endogeneity of the domestic credit and foreign reserve variables in the estimated equations. The paper...
Persistent link: https://www.econbiz.de/10013217220
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Monetary Policy Surprises and Exchange Rate Behavior
Gürkaynak, Refet S.; Kara, Hakan; Kısacıkoğlu, Burçin - 2022
Central banks unexpectedly tightening policy rates often observe the exchange value of their currency depreciate, rather than appreciate as predicted by standard models. We document this for Fed and ECB policy days using event-studies and ask whether an information effect, where the public...
Persistent link: https://www.econbiz.de/10013289105
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When Do Central Bank Interventions Influence Intra-Daily and Longer-Term Exchange Rate Movements?
Dominguez, Kathryn M.E. - 2012
This paper examines dollar interventions by the G3 governments since 1989, and the reasons that trader reactions to these interventions might differ over time and across central banks. Market microstructure theory provides a framework for understanding the process by which sterilized central...
Persistent link: https://www.econbiz.de/10012755830
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The Effects of Conventional and Unconventional Monetary Policy on Exchange Rates
Inoue, Atsushi - 2018
affect agents' expectations; (iii) we find favorable evidence to Dornbusch's (1976) overshooting hypothesis …
Persistent link: https://www.econbiz.de/10012911113
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Activist Monetary Policy and Exchange Rate Overshooting : the Deutsche Mark/Dollar Rate
Papell, David H. - 2021
exchange rate determination. Dornbush's over-shooting hypothesis is the best known explanation of this phenomenon. This paper … exchange rate overshooting to undershooting. Using constrained maximum likelihood methods, the model is estimated for Germany … and the United States. The results provide strong evidence in support of the overshooting hypothesis for the Deutsche Mark …
Persistent link: https://www.econbiz.de/10013234404
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Shocks, Structures or Monetary Policies? The Euro Area and Us after 2001
Christiano, Lawrence J. - 2008
price stability. Other factors that account for the different economic outcomes in the Euro Area and US include differences …
Persistent link: https://www.econbiz.de/10012773305