During the financial crisis of 2008, the currencies of Latin America faced pressure to devalue— which evoked memories of the “contagious†crises of the 1990s. Yet even between crises, domestic macroeconomic factors can have an impact on a country's exchange market. This study...

El presente trabajo estudia un modelo sustentado en los fundamentos de la regla de Taylor para evaluar la previsibilidad de la tasa de cambio nominal de seis divisas latinoamericanas - el peso argentino, el peso chileno, el peso colombiano, el peso mexicano, el peso uruguayo y el real brasileño...

This paper examines how China's exports are affected by exchange rate shocks from countries who supply intermediate inputs to China. We build a simple small open economy model with intermediate goods trade to show that due to the intraregional trade in intermediate goods, a devaluation of other...

The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter's invoicing choice reflects structural aspects of her industry, such as market share and the...

There has recently been considerable interest in the potential adverse effects associated with excessive uncertainty in energy futures markets. Theoretical models of investment under uncertainty predict that increased uncertainty will tend to induce firms to delay investment. These models are...

Adapting Den Haan's (1996) methodology based on VARs, this paper documents stylized facts about various deviations from international no arbitrage conditions between Canada and the United States. The calculated statistics provide important information about the dynamics of the economic variables...

Le Sherman Silver Purchase Act de 1890 a causé des craintes d'inflation et une série d'attaques sur les réserves du Trésor Américain. Malgré ces attaques, le dollar s'est maintenu durant cette période. On peut se demander pourquoi. Un argument (Fels (1959)) est que les spéculateurs...

This paper offers a new intrepretation of United States balance of payments adjustment in the bimetallic period from 1820 to 1860 during which President Jackson vetoed the charter renewal of the Second Bank of the United States--an event destined to spark controversy over the macroeconomic...

This paper analyzes the relationship between net capital flow and home bias puzzle. The model suggests that both capital inflow and potential preference in home assets lead agents to allocate more in domestic and thus s home bias phenomenon. Besides, the more nontradable consumption, the fewer...

Fundamental sources of the Russian financial crisis in 1998 are discussed. Focus is made on the time horizon of judgements concerning sustainability of the economic policy. It is argued that the macroeconomic policy pursued by the monetary authorities was not robust in a medium run, but, in the...