Showing 91 - 100 of 151
In this paper, we argue that the effect of monetary and fiscal policies on the exchange rate depends on the fiscal regime. A contractionary monetary (expansionary fiscal) shock can lead to a depreciation, rather than an appreciation, of the domestic currency if debt is not backed by future...
Persistent link: https://www.econbiz.de/10013308762
After the recent crisis, a reduction was observed in global current account (“flow”) imbalances. Even so, global disequilibria as measured in terms of countries' net foreign assets (“stock imbalances”) kept increasing. This paper discusses whether stock imbalances have a stabilising or...
Persistent link: https://www.econbiz.de/10012942328
This paper presents a methodology for calculating bilateral equilibrium exchange rates for a panel of currencies in a way that guarantees global consistency. The methodology has three parts: a theoretical model that encompasses the balance of payments and the Balassa-Samuelson approaches to real...
Persistent link: https://www.econbiz.de/10014400091
A remarkable fact of the mushrooming remittances market is the absence of commercial banks as relevant players. Furthermore, remittances have been identified as a potential catalyst for the financial deepening of receiving countries through higher access to banking services by migrants'...
Persistent link: https://www.econbiz.de/10014056144
Reserves and sovereign wealth funds (SWFs) assets should be jointly considered for the assessment of global imbalances, hence their denomination as sovereign external assets (SEAs): both are public capital outflows from developing to developed countries, both hinder adjustment in current account...
Persistent link: https://www.econbiz.de/10014211400
We adapt to the Japanese case a model of stochastic debt sustainability within a monetary policymaking framework. The model incorporates the effects of unconventional monetary policy and its potential unwinding on sovereign debt dynamics. A scenario tree represents stochastic and correlated...
Persistent link: https://www.econbiz.de/10014359168
Their strong macroeconomic position when the financial crisis erupted allowed Latin American economies to mitigate its impact through fiscal expansions, reversing the characteristic procyclical behaviour of fiscal policy. At the same time, in the last two decades fiscal rules have been...
Persistent link: https://www.econbiz.de/10012999337
This paper explores the role of international reserves as a stabilizer of international capital flows, in particular during periods of global financial stress. In contrast with previous contributions, aimed at explaining net capital flows, we focus on the behavior of gross capital flows. We...
Persistent link: https://www.econbiz.de/10013049868
This paper attempts to measure the degree of misalignment of the euro - in particular against the dollar - by estimating equilibrium exchange rates for the euro and the rest of G-7 currencies. Building on the methodology of Alberola et al. (1999), we show that the stock of net foreign assets and...
Persistent link: https://www.econbiz.de/10014093303
"Recognising the regained importance of fiscal policy over the last two decades, this timely book provides much-needed insight into the manifold changes and challenges of fiscal policy and how it is adapting to the unpredictable nature of the 21st century. Fiscal Policy in a Turbulent Era brings...
Persistent link: https://www.econbiz.de/10014512164