Este documento de trabajo provee un análisis empírico de la relación entre movimientos del tipo de cambio y los principales índices de precios en los países de la OECD. El análisis del trabajo esta centrado en cómo diferentes ambientes inflacionarios permitirían explicar el descenso en...

In this paper, forward market unbiasedness hypothesis (FRUH) is tested and its underline assumptions of rationally formed expectations and non existence of time varying risk premium is examined empirically in case of Rupee/US$. Taking in to account the non-stationarity of the spot and forward...

Exchange rates, savings and productivity: short and long-term impacts - The objective of this paper is to analyze, from a theoretical point of view, the relation between real exchange rates and economic development. The main hypothesis is very much in line with the Dutch disease literature and...

This paper considers the general equilibrium relationship between exchange rates and global imbalances. It emphasizes that the exchange rate is not a primitive but an equilibrium price determined by the policy mix. It uses extensions of the two-country Obstfeld-Rogoff model to analyze the...

Manufacturers selling in foreign markets often do not completely pass on the effects of fluctuations in exchange rates to the trade prices of their products. Our paper addresses this puzzle and studies the effects of the international distribution channel on exchange rate pass-through. We...

The Chinese economy has been reasonably stable during the Asian financial crisis. However, there is a widespread speculation about the prospect of the stability of RMB, the Chinese currency. While the Chinese government has repeatedly promised the stability of RMB, many oversea economists have...

While much empirical work has addressed the role of monetary policy shocks in exchange rate behavior, conclusions have been clouded by the lack of plausible identifying assumptions. We apply a recently developed inference procedure allowing us to relax dubious identifying assumptions. This work...

This paper estimates short horizon exchange rate sensitivity with an event study methodology. We look at stock price reactions to very large, unexpected exchange rate changes: the decisions to allow the Mexican peso and Thai baht to float. For both events, we find evidence of a statistically and...

This paper explores the effect of global shocks in a two-country New Keynesian model in which US government debt has an advantage as a superior collateral asset in the balance sheets of banks. We show that the model can account for the observed response of the US dollar and US bond returns to a...

The United States (US) extracts a large macroeconomic premium from foreigners: she enjoys higher consumption and GDP growths on average relative to the rest of the world (ROW). This is earned even though the US is relatively insulated against global consumption and GDP risks, challenging a...