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India's trilemma : financial liberalization, exchange rates and monetary policy

Hutchison, Michael M.; Sengupta, Rajeswari; Singh, Nirvikar - 2010

A key challenge for macroeconomic policy in open economies is how to simultaneously manage exchange rates, interest rates and capital account openness - the trilemma. This paper calculates a trilemma index for India and investigates its evolution over time. We find that financial integration has...

Persistent link: https://www.econbiz.de/10008698332

Should cryptocurrencies be included in the portfolio of international reserves held by central banks?

Moore, Winston; Stephen, Jeremy - In: Cogent economics & finance 4 (2016) 1, pp. 1-12

In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the …

Persistent link: https://www.econbiz.de/10011450546

Renminbi Internationalization and China’s Financial Development

McCauley, Robert N. - 2013

For now, effective capital controls allow the Chinese authorities to retain regulated deposit and lending rates, quantitative credit guidance and bond market rationing. Relaxation of the capital controls would put these policies at risk. Reserve requirements can be extended to bank inflows from...

Persistent link: https://www.econbiz.de/10013092014

A Risk-Based Theory of Exchange Rate Stabilization

Hassan, Tarek A. - 2020

We develop a novel, risk-based theory of the effects of currency manipulation. In our model, the choice of exchange rate regime allows policymakers to make their currency, and by extension, the firms in their country, a safer investment for international investors. Policies that induce a...

Persistent link: https://www.econbiz.de/10012855279

The Global Factor in Neutral Policy Rates : Some Implications for Exchange Rates, Monetary Policy, and Policy Coordination

Clarida, Richard - 2018

countries. We argue that in practice, there could well be significant costs to central bank communication and credibility under …

Persistent link: https://www.econbiz.de/10012914920

How Should Emerging Economies Float Their Currencies?

Larrain, Felipe; Velasco, Andrés - 2004

Floating exchange rates seem to be gaining ground in Latin America, East Asia and the transition economies. The recent crises left many economies with no alternative but to float. Others have moved toward floating, searching for greater flexibility and insulation from external shocks. The...

Persistent link: https://www.econbiz.de/10014114187

The portfolio theory of inflation and policy (in)effectiveness revisited : corroborating evidence

Bossone, Biagio; Cuccia, Andrea - 2020

This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness of macroeconomic policy in open and globally financially integrated economies is influenced by global investor decisions (Bossone, The portfolio theory of inflation and policy...

Persistent link: https://www.econbiz.de/10012140238

Credibility and Adjustment : Gold Standards Versus Currency Boards

Desquilbet, Jean-Baptiste A; Nenovsky, Nikolay - 2004

monetary rules, the two basic features of which are high credibility of monetary authorities and the existence of automatic … the perspective of the sources and mechanisms of generating confidence and credibility, and the elements of operation of …) although asymmetry is a typical feature of any monetary regime. The lack of credibility is typical for peripheral countries and …

Persistent link: https://www.econbiz.de/10014029231

The Credibility of the Exchange Rate Regime : An Analysis Trough 'Derivatives' of the September 1992 Crisis

Barbato, Fabio - 2009

This paper argues that, in the September 1992 European currency crisis, market trends in derivatives, in terms of price volatility and change in volumes traded, might have represented an early indicator, in reference to the spot market, of the lack of confidence in the ability of the Italian...

Persistent link: https://www.econbiz.de/10013156115

Fixed Exchange Rate Credibility with Heterogeneous Expectations

Carlson, John A.; Valev, Neven T. - 2006

proportion of sophisticated agents. Thus, the credibility of a fixed exchange rate regime grows over time partly because fewer …

Persistent link: https://www.econbiz.de/10014059017

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