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The Choice of Monetary and Exchange Rate Arrangements for a Small, Open, Low-Income Economy; The Case of Sao tome and Principe

Wang, Jian-Ye; Farhan, Nisreen H.; Shanghavi, Amar; … - International Monetary Fund (IMF) - 2008

This paper assesses São Tomé and Príncipe's monetary and exchange rate arrangements in light of the country's monetary history and the relevant experience of comparable countries in Africa. The study highlights several structural characteristics of São Tomé and Príncipe including its very...

Persistent link: https://www.econbiz.de/10005605143

Parity Reversion in Real Exchange Rates; Fast, Slow or Not At All?

McDermott, C. John; Cashin, Paul - International Monetary Fund (IMF) - 2004

Consensus estimates put the half-life of deviations from purchasing power parity (PPP) at about four years (Rogoff, 1996). However, conventional least squares estimates of half-lives are biased downward. Accordingly, as a preferred measure of the persistence of real exchange rate shocks, this...

Persistent link: https://www.econbiz.de/10005604970

Liberalized Markets Have More Stable Exchange Rates; Short-Run Evidence From Four Transition Countries

Bulir, Ales - International Monetary Fund (IMF) - 2004

The paper looks at the hypothesis that financial market liberalization can create a basis for more stable exchange rates, as deviations of exchange rates from equilibrium levels bring forth stabilizing flows of liquidity. This "endogenous liquidity" hypothesis suggests that opening financial...

Persistent link: https://www.econbiz.de/10005599329

Financial Stability in Dollarized Economies

Gulde, Anne Marie; Hoelscher, David S.; Ize, Alain; … - International Monetary Fund (IMF) - 2004

This paper addresses the challenges to prudential supervision in highly dollarized economies, where central banks and supervisors may be constrained in the use of standard money and financial policy tools. The studyâ€™s conclusions are the basis of an ongoing policy dialogue with IMF member...

Persistent link: https://www.econbiz.de/10005824860

Determinants of Foreign Currency Borrowing in the New Member States of the EU

Rosenberg, Christoph B.; Tirpák, Marcel - International Monetary Fund (IMF) - 2008

The paper investigates the determinants of foreign currency borrowing by the private sector in the new member states of the European Union. We find that striking differences in patterns of foreign currency borrowing between countries are explained by the loan-to-deposit ratios, openness, and the...

Persistent link: https://www.econbiz.de/10005825762

External Performance in Low-Income Countries

Prati, Alessandro; Ricci, Luca Antonio; Christiansen, … - International Monetary Fund (IMF) - 2011

Assessments of exchange rate misalignments and external imbalances for low-income countries are challenging because methodologies developed for advanced and emerging economies cannot be automatically applied to poorer nations. This paper uses a large database, unique in the set of indicators and...

Persistent link: https://www.econbiz.de/10010790491

Exits From Heavily Managed Exchange Rate Regimes

Detragiache, Enrica; Okada, Eisuke; Mody, Ashoka - International Monetary Fund (IMF) - 2005

A widely held nostrum is that countries should exit heavily managed exchange rate regimes when the going is good, rather than when the exchange rate is under pressure to depreciate. Have countries followed this advice in practice? And, if so, how good has the going been? We find that in the past...

Persistent link: https://www.econbiz.de/10005769205

Real Exchange Rates and Productivity; Closed-Form Solutions and Some Empirical Evidence

Begum, Jahanara - International Monetary Fund (IMF) - 2000

This paper examines the impact of productivity shocks on real exchange rate fluctuations in a dynamic international general equilibrium model with nontraded goods. The model predicts a close association between relative technology shocks and bilateral real exchange rate movements. Empirical...

Persistent link: https://www.econbiz.de/10005599752

External Balance in Low Income Countries

Christiansen, Lone Engbo; Prati, Alessandro; Ricci, … - International Monetary Fund (IMF) - 2009

This paper offers a coherent empirical analysis of the determinants of the real exchange rate, the current account, and the net foreign assets position in low income countries. The paper focuses on indicators specific to low income countries, such as the quality of policies and institutions, the...

Persistent link: https://www.econbiz.de/10008559280

Inflation Targeting in Dollarized Economies

Leiderman, Leonardo; Maino, Rodolfo; Parrado, Eric - International Monetary Fund (IMF) - 2006

instruments to hedge exchange rate risks, together with fear of floating and dollarization, have been stressed as factors that … in two highly dollarized economies (Peru and Bolivia) vis-à-vis two economies with low levels of dollarization (Chile and … Colombia), we found that, while dollarization imposes differences in both the transmission capacity of monetary policy and its …

Persistent link: https://www.econbiz.de/10005599767