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When are Fixed Exchange Rates Really Fixed?

Velasco, Andrés - 2021

This paper analyzes the sustainability of fixed exchange rates by extending the Barro-Gordon framework to a fully dynamic context in which the level of a state variable (in this case debt) determines the payoffs available to the government at each point in time. The model yields the following...

Persistent link: https://www.econbiz.de/10013222968

Currency Substitution and the Fluctuations of Foreign-Exchange Reserves with Credibly Fixed Exchange Rates

Giovannini, Alberto - 2021

This paper studies the fluctuations of foreign exchange reserves under a regime of credibly fixed exchange rates. The paper considers a variety of assumptions on the determinants of money demand and currency substitution

Persistent link: https://www.econbiz.de/10013224196

An Options-Based Analysis of Emerging Market Exchange Rate Expectations : Brazil'S Real Plan, 1994-1997

Campa, José Manuel; Chang, P. H. Kevin; Refalo, James F. - 2021

credibility of the crawling peg' and target zone ( maxiband') regimes governing the exchange rate. Since we do not impose an … one of the first to use options data from an emerging market, finds that target zone credibility was poor prior to …

Persistent link: https://www.econbiz.de/10013224319

The Mexican Peso Crisis : Sudden Death or Death Foretold?

Sachs, Jeffrey; Tornell, Aaron; Velasco, Andrés - 2021

occur for some levels of reserves or debt, but not for others. Lastly, we argue that the imperfect credibility of Mexican …

Persistent link: https://www.econbiz.de/10013240321

The Continental Dollar : Initial Design, Ideal Performance, and the Credibility of Congressional Commitment

Grubb, Farley Ward - 2011

Continental dollar lost credibility. Depreciation and collapse followed shortly thereafter …

Persistent link: https://www.econbiz.de/10013121724

Credible Commitment and Exchange Rate Stability : Canada'S Interwar Experience

Bordo, Michael D.; Redish, Angela - 2021

In January 1929 the Canadian government suspended gold exports and began a floating exchange rate regime that endured until the onset of World War 11. In sharp contrast with the experience of other countries which left the gold standard, deflation and declining economic activity continued in...

Persistent link: https://www.econbiz.de/10013246076

Verifiability and the Vanishing Intermediate Exchange Rate Regime

Frankel, Jeffrey A.; Schmukler, Sergio L.; Servén, Luis - 2021

lack verifiability, needed for credibility. Central banks announce intermediate targets such as exchange rates, so that the …

Persistent link: https://www.econbiz.de/10013217196

European Exchange Rate Credibility Before the Fall

Rose, Andrew; Svensson, Lars E. O. - 2022

Realignment expectations which measure exchange rate credibility are analyzed for European exchange rates, using daily … expectations and macroeconomic variables, although there are signs that lower inflation improves credibility. Statistically, many … movements to realignment expectations are common to ERM participants. There were few indications of poor ERM credibility before …

Persistent link: https://www.econbiz.de/10013324139

Establishing Credibility : Evolving Perceptions of the European Central Bank

Goldberg, Linda S. - 2010

The perceptions of a central bank's inflation aversion may reflect institutional structure or, more dynamically, the history of its policy decisions. In this paper, we present a novel empirical framework that uses high frequency data to test for persistent variation in market perceptions of...

Persistent link: https://www.econbiz.de/10012761892

Trust in Large Organizations

La Porta, Rafael; López-de-Silanes, Florencio; … - 2010

Several authors suggest that trust is an important determinant of cooperation between strangers in a society, and therefore of performance of social institutions. We argue that trust should be particularly important for the performance of large organizations. In a cross-section of countries,...

Persistent link: https://www.econbiz.de/10014222386