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Explaining inflation with a classical dichotomy model and switching monetary regimes : Mexico 1932-2013

Garcés Díaz, Daniel G. - 2017

This paper applies a novel approach to study the impact of different shocks on the price level. It uses a classical dichotomy model with monetary policy regime shifts at known dates. First, there was a regime dominated by money, afterwards a regime driven by the exchange rate and a third one...

Persistent link: https://www.econbiz.de/10011759587

Exchange rate regimes in India : central bank interventions and purchasing power parity in the context of ASEAN currencies

Siddharth, Angad; Alexiou, Constantinos; Vogiazas, Sofoklis - In: Economies : open access journal 12 (2024) 4, pp. 1-21

) interventions and the validity of Purchasing Power Parity (PPP) across two distinct exchange rate regimes: the fixed exchange rate … reveals that under the fixed exchange rate regime, the environment is conducive to PPP due to frequent interventions by the … RBI. However, in the managed floating regime, selective interventions weaken the applicability of PPP. These findings …

Persistent link: https://www.econbiz.de/10014635893

Exchange Rates and Prices : Evidence from the 2015 Swiss Franc Appreciation

Auer, Raphael A. - 2019

The removal of the lower bound on the EUR/CHF exchange rate in January 2015 provides a unique setting to study the implications of a large and sudden appreciation in an otherwise stable macroeconomic environment. Using transaction-level data on non-durable goods purchases by Swiss consumers, we...

Persistent link: https://www.econbiz.de/10012896768

How is the RMB Exchange Rate Misaligned? A Recent Application of Behavioral Equilibrium Exchange Rate (BEER) to China

Cui, Yuming - 2016

The aim of this paper is to estimate the degree of RMB misalignment from its equilibrium exchange rate by applying the Behavioral Equilibrium Exchange Rate (BEER) approach. We employ monthly data with reference to China's top 20 trading partners covering the period of 1997 to 2012. We find that...

Persistent link: https://www.econbiz.de/10013007133

Economic Growth under Alternative Monetary Regimes : Inflation Targeting vs Real Exchange Rate Targeting

Cordero, José Antonio - 2008

A Post Keynesian model is developed to examine the main features and consequences of a monetary regime based on inflation targeting. The growth performance of this regime is compared to the one resulting from real exchange rate targets. Inflation targeting is shown to hurt growth and employment...

Persistent link: https://www.econbiz.de/10012726142

Foreign exchange intervention and equilibrium real exchange rates

Sideris, Dimitrios - 2022

paper is that omission of intervention effects -when they are significant- would bias the ability to detect any PPP …

Persistent link: https://www.econbiz.de/10014080564

Politics-driven exchange rate cycles : East Asia vs. Latin America

Razmi, Arslan - 2018

I develop the implications for real exchange rate cycles of different policy preferences, focusing in particular on broadly stylized features of major Latin American and East Asian economies. Recent political science literature has emphasized the role of factors such as the influence of the...

Persistent link: https://www.econbiz.de/10011872351

External shocks, trade margins, and macroeconomic dynamics

D'Addona, Stefano; Cavallari, Lilia - In: Economies : open access journal 8 (2020) 1/6, pp. 1-26

This paper studies the role of the exchange rate regime for trade of new products. It first provides VAR evidence that a rise in external productivity shifts trade away from new products and more so in fixed regimes. Then, it presents a model with firm dynamics in line with this evidence. We...

Persistent link: https://www.econbiz.de/10012168776

Political economic drivers of real exchange rate levels

Uğurlu, Esra Nur; Razmi, Arslan - 2022

Voluminous theoretical and empirical research shows that real exchange rate (RER) undervaluation could be conducive to economic development. Why do countries then often avoid the pursuit of policies that facilitate undervaluation or even intentionally pursue RER overvaluation? We address this...

Persistent link: https://www.econbiz.de/10013328137

Foreign Exchange Volatility Under Inflation Targeting in Uganda : An SVAR Approach

Lukwago, Stephen - 2016

In July 2011, Uganda reformed its monetary policy framework citing “challenges of macroeconomic management and the rapid growth and diversification of the financial system” MPC July (2011). This paper reviews the effect of foreign exchange interventions on the inflation target policy in...

Persistent link: https://www.econbiz.de/10012985181