Showing 1 - 10 of 4,499
Summary. This is an extended working paper version of the paper that appeared in Economic Theory. It paper compares the merits of alternative exchange rate regimes in small open economies where financial intermediaries perform a real allocative function, there are multiple reserve requirements,...
Persistent link: https://www.econbiz.de/10005037728
The effectiveness of exchange rate adjustments depends critically on the extent to which depreciations "pass through" to inflation, an effect that is known as exchange rate pass-through (ERPT). In particular, if an exchange rate depreciation does not result in a lasting change in relative...
Persistent link: https://www.econbiz.de/10011535784
The paper develops a short-run model of a small open financially repressed economy characterized by unorganized money markets, intermediate good imports, capital mobility and flexible exchange rates. The analysis shows that financial liberalization, in the form of increased rate of interest on...
Persistent link: https://www.econbiz.de/10005773168
The paper develops a short-run structural model of a small open financially repressed economy with current account convertibility. The analysis shows that the effect of financial liberalization on rate of inflation and the movements of the nominal exchange rate proves ambiguous, and hinges...
Persistent link: https://www.econbiz.de/10005773210
The paper develops a short-run model of a small open financially repressed economy characterized by unorganized money markets, capital good imports, capital mobility, wage indexation, and flexible exchange rates. The analysis shows that financial liberalization, in the form of an increased rate...
Persistent link: https://www.econbiz.de/10005746100
The paper develops a short-run structural model of a small open financially repressed economy with current account convertibility. The analysis shows that the effect of financial liberalization on rate of inflation and the movements of the nominal exchange rate proves ambiguous, and hinges...
Persistent link: https://www.econbiz.de/10005168551
The effectiveness of exchange rate adjustments depends critically on the extent to which depreciations "pass through" to inflation, an effect that is known as exchange rate pass-through (ERPT). In particular, if an exchange rate depreciation does not result in a lasting change in relative...
Persistent link: https://www.econbiz.de/10011521215
This paper calculates the exchange rate pass through (ERPT) with time constant and time varying coefficients for Colombia between 2006 and 2023. It then estimates the ERPT during four specific depreciation events during the period of analysis: the 2008 financial crisis, the 2014-2016 fall in...
Persistent link: https://www.econbiz.de/10015193778
We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve framework. We decompose output gaps and changes in unitlabor costs into common (or global) and idiosyncratic components using a factor analysis andintroduce these components...
Persistent link: https://www.econbiz.de/10005866174
The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of competing hypotheses are evaluated on a stand-alone basis, and all are found to be inadequate. This includes the view that this outcome has been solely the result of more...
Persistent link: https://www.econbiz.de/10009305090