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The paper contributes to understanding the economic dynamics at the zero lower bound and the exchange rate movements under different central bank intervention regimes. It provides a theoretical framework for modeling foreign exchange interventions at the ZLB within a dynamic general equilibrium...
Persistent link: https://www.econbiz.de/10010532424
Exchange Rate is one of the most important factor for any economic growth of any country, it has direct effect on international trade. The present study investigates the impact of macroeconomic factors (Current Account Deficit (CAD), Import, Export and Purchasing Power Parity (PPP)) on Exchange...
Persistent link: https://www.econbiz.de/10012931463
authors examine the exchange rate influence on the inflation in Switzerland, separately for the pre-crisis and the …-through into inflation. Despite the effect's moderate influence, the decline was not immediate. The authors additionally analysed … intervention than from the precrisis period. The exchange rate effect on inflation was thus in a better accordance with theory …
Persistent link: https://www.econbiz.de/10011751859
This paper analyses the effects of the foreign exchange re-serves accumulation on the key nominal and real macroeconomicvariables (GDP, employment, prices and exchange rates) in BRICcountries (Brazil, Russia, India, China). VAR model was used toempirically examine the effect of accumulation of...
Persistent link: https://www.econbiz.de/10014566381
The implementation of economic reforms under new economic policies in India was associated with a paradigmatic shift in monetary and fiscal policy. While monetary policies were solely aimed at "price stability" in the neoliberal regime, fiscal policies were characterized by the objective of...
Persistent link: https://www.econbiz.de/10010385761
This paper develops a dynamic general equilibrium model with two currencies to study the effect of negative interest rates on domestic money demand and exchange rates. Money demand for a currency depends on the relative ratio of the money market rate and the deposit rate of the central bank. If...
Persistent link: https://www.econbiz.de/10012240039
This paper analyses the impact of central bank interven-tions in the inflation targeting regime. The results of …, inflation is lower. As a result of lower price growth, the need for a monetary policy response to an interest rate is also lower …
Persistent link: https://www.econbiz.de/10012805926
The economic characteristics of the COVID-19 crisis differ from those of previous crises. It is a combination of demand- and supply-side constraints which led to the formation of a monetary overhang that will be unfrozen once the pandemic ends. Monetary policy must take this effect into...
Persistent link: https://www.econbiz.de/10012592174
financial markets, economic activity or inflation. We also investigate the impacts of QE policy on regional bond yields and …
Persistent link: https://www.econbiz.de/10009379704
We show that the FX impact of monetary policy has been growing significantly. We use a high-frequency event study of the joint response of fixed income instruments and exchange rates to monetary policy news from seven major central banks spanning 2004-2015. News affecting short maturity bonds...
Persistent link: https://www.econbiz.de/10012962972