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The Real Exchange Rate, Mercantilism and the Learning by Doing Externality

Aizenman, Joshua - 2008

This paper examines the degree to which the learning by doing externality [LBD] calls for an undervalued exchange rate, a policy suggested by recent empirical studies which concluded that mildly undervalued real exchange rate may enhance growth. We obtain mixed results. For an economy where LBD...

Persistent link: https://www.econbiz.de/10012772382

The Impacts of Renminbi Appreciation on Trades Flows and Reserve Accumulation in a Monetary Trade Model

Whalley, John - 2010

Given the rapidly growing reserves in Asia (China, Japan, Korea, Taiwan) and the pressures from trading partners to …, and that changes in trade flows can be substantial. Different treatments of China's processing trade have small impact on … changes in China's trade flow under RMB appreciation, but significant impacts on the change in the surplus. Results are …

Persistent link: https://www.econbiz.de/10012759718

Model Structure and the Combined Welfare and Trade Effects of China's Trade Related Policies

Dong, Yan - 2010

Because China's economic structure is different from that in OECD countries, using conventional neo … fully representative of modern China, but it does go some way beyond simple competitive models used elsewhere and points to … exchange rate have more impact on China's welfare than tariff liberalization. Policies of RMB appreciation and increasing China …

Persistent link: https://www.econbiz.de/10013150911

Capital Inflows and Reserve Accumulation : The Recent Evidence

Reinhart, Carmen M. - 2008

Over the past decade, policymakers in many emerging market economies have opted to limit fluctuations of the value of their domestic currencies relative to the U.S. dollar. A simple interest-parity relationship is used to identify the potential sources of upward pressure on the value of a...

Persistent link: https://www.econbiz.de/10012772450

Target Zones with Limited Reserves

Krugman, Paul R. - 2008

Like a fixed exchange rate, a target zone system may be subject to speculative attacks when the reserves of the central bank are limited. Thispaper analyzes such speculative attacks and their implications; it shows that the recently developed quot;smooth pastingquot; model of target zones should...

Persistent link: https://www.econbiz.de/10012774869

When is it Optimal to Abandon a Fixed Exchange Rate?

Rebelo, Sérgio - 2007

The influential Krugman-Flood-Garber (KFG) model of balance of payment crises assumes that a fixed exchange rate is abandoned if and only if international reserves reach a critical threshold value. From a positive standpoint, the KFG rule is at odds with many episodes in which the central bank...

Persistent link: https://www.econbiz.de/10012778081

Financial Exchange Rates and International Currency Exposures

Lane, Philip R. - 2012

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange...

Persistent link: https://www.econbiz.de/10012755324

International Capital Flow Pressures

Goldberg, Linda S. - 2018

Pressures on currencies manifest in exchange rate adjustments and international capital flows, and can also be offset by policy responses. This paper presents a theory-based measure of capital flow pressures, a new Exchange Market Pressure index, which combines pressures observed in exchange...

Persistent link: https://www.econbiz.de/10012928304

Exchange Rate Policies at the Zero Lower Bound

Amador, Manuel - 2017

We study the problem of a monetary authority pursuing an exchange rate policy that is inconsistent with interest rate parity because of a binding zero lower bound constraint. The resulting violation in interest rate parity generates an inflow of capital that the monetary authority needs to...

Persistent link: https://www.econbiz.de/10012960173

The Revived Bretton Woods System's First Decade

Dooley, Michael P. - 2014

evolve as we expected. China is likely to graduate from the periphery to the center in the next few years. This graduation … cycle. Finally, recent policy initiatives suggest that India is poised to replace China as the dominant periphery country …

Persistent link: https://www.econbiz.de/10013047779