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Exchange-rate overshooting : an analysis for intermediate macro

Natividad-Carlos, Fidelina Borja - 2014

While exchange rate dynamics is an important topic in open economy macroeconomics, the standard tool commonly used to introduce exchange rate dynamics - the Dornbusch (1976) seminal paper along with phase diagram - is not well-suited for undergraduate students as most of them do not have yet a...

Persistent link: https://www.econbiz.de/10010422230

Germany versus the United States : monetary Dominance in the Eurozone

Quah, Chee Heong - In: Economies : open access journal 4 (2016) 2, pp. 1-16

This study inspects if there is greater convergence with Germany amongst the Eurozone founding members and if their relations with the hegemonic economy have been more symmetrical after "euroization". The dimensions explored are those inspired by the optimum currency areas (OCA) framework. To...

Persistent link: https://www.econbiz.de/10011499412

Shifts in monetary policy and exchange rate dynamics : is Dornbusch's overshooting hypothesis intact, after all?

Rüth, Sebastian - 2019

- empirical support for his hypothesis is at best mixed. I argue that the failure to discover overshooting may result from …

Persistent link: https://www.econbiz.de/10012124364

Exchange rate overshooting : unraveling the puzzles

Braig, Miriam; Rüth, Sebastian; Van der Veken, Wouter - 2024

vector autoregression, and assess whether best-practice structural identifications detect textbook "overshooting" after a … monetary policy hike-i.e., an instant real appreciation that monotonically reverts. Our results include "delayed overshooting …," "exchange rate puzzles," "forward discount puzzles," and model-consistent overshooting. Identifications that regularly indicate …

Persistent link: https://www.econbiz.de/10015069881

Exports and the exchange rate : a general equilibrium perspective

Alexander, Patrick; Reza, Abeer - 2022 - Last updated: April 4, 2022

Understanding and predicting the evolution of exports after a change in the nominal exchange rate is of central importance in international economics. Most of the literature focuses on estimating this relationship by reduced form, with the aim of uncovering a single structural parameter, but...

Persistent link: https://www.econbiz.de/10013172465

Unconventional monetary policy under appreciation pressure : the role of financial frictions

Aregger, Nicole; Leutert, Jessica - 2017 - This draft: September 2017

We build a two-country model with imperfect financial intermediation. Banks face limits to arbitrage which lead to positive excess returns in the investment markets and a risk premium in the international credit market. Gross capital flows affect the exchange rate since banks are balance sheet...

Persistent link: https://www.econbiz.de/10011742713

Sudden stops and asset purchase programmes in the euro area

Fabiani, Josefina; Fidora, Michael; Setzer, Ralph; … - 2021

This paper analyses the incidence and severity of sudden stops in euro area countries before and after the introduction of the ECB's asset purchase programmes. We define sudden stops as abrupt declines in private net financial inflows, i.e. total flows adjusted for EU and IMF loans and changes...

Persistent link: https://www.econbiz.de/10012643263

On the Hump-Shaped Output Effect of Monetary Policy in an Open Economy

Pierdzioch, Christian; Yener, Serkan - 2004

Results of empirical research have revealed a characteristic hump-shaped effect of monetary policy shocks on output: the effect builds to a peak after several months and then gradually dies out. We analyze, in the context of a "new open economy macroeconomics" model, factors that imply a hump-...

Persistent link: https://www.econbiz.de/10010260498

Excess Reserves and Macroeconomic Instability

Scaramozzino, Pasquale - 2010

This paper is concerned with international reserves. It makes two main points. Firstly, excess reserves cannot be regarded as a substitute for sound fundamentals because the former may destabilize the economic system in the longer term. Secondly, reserve accumulation financed by public debt can...

Persistent link: https://www.econbiz.de/10013139882

Lessons on the 'Impossible Trinity'

Moreno, Ramon - 2013

This is one of the contributions which is part of BIS Paper 68 and which was presented at the BIS-sponsored sessions at the Latin American and Caribbean Economic Association (LACEA) meetings in 2010-11, focusing on the drivers and effects of capital flows and the challenges they pose for the...

Persistent link: https://www.econbiz.de/10013088038

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