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Real Exchange Rates and Commodity Prices

Dupont, Dominique Yves - 1996

fluctuations in real commodity prices. Increased exchange rate volatility calls for a better understanding of these relations. To … multi-country model, with world market clearing, which incorporates speculative and non-speculative demands for inventories … matters, and that supply and demand elasticities are important in determining the commodity price in world markets above and …

Persistent link: https://www.econbiz.de/10014398636

Exchange rate uncertainty and deviations from purchasing power parity : evidence from the G7 area

Arghyrou, Michael Georgiou; Gregoriou, Andros; … - 2009

Arghyrou, Gregoriou and Pourpourides (2009) argue that exchange rate uncertainty causes deviations from the law of one price. We test this hypothesis on aggregate data from the G7-area. We find that exchange rate uncertainty explains to a significant degree deviations from Purchasing Power...

Persistent link: https://www.econbiz.de/10003898776

Escape Clauses and Targeting of the Real Exchange Rate : The Case of Nominal Exchange Rate Pegging

Gonzalez, Pablo - 2010

We consider an economy under a fixed exchange rate system, but with bounds (a minimum level or a band) on the real exchange rate. The international price of the tradable good is characterized by the continuous arrival of shocks that change its level. In a model with microfoundations, we...

Persistent link: https://www.econbiz.de/10013135111

Measuring Renminbi Misalignment : Where do We Stand?

Cheung, Yin-Wong - 2010

The value of China's currency, the renminbi (RMB), and the conduct of China's exchange rate policy have generated intense debate in academic and international policy circles. Despite the accumulation of empirical evidence regarding the degree of RMB misalignment over the past few years, the...

Persistent link: https://www.econbiz.de/10013137220

Exchange Rate Misalignment Estimates – Sources of Differences

Cheung, Yin-Wong - 2011

We study the differences in currency misalignment estimates obtained from alternative datasets derived from two International Comparison Program (ICP) surveys. A decomposition exercise reveals that the year 2005 misalignment estimates are substantially affected by the ICP price revision....

Persistent link: https://www.econbiz.de/10013119692

Exchange Rate Misalignment - The Case of the Chinese Renminbi

Cheung, Yin-Wong - 2013

Assessing exchange rate misalignment is not an easy task. With reference to the debate on the value of China's currency, the renminbi (RMB), this article highlights a few challenges in properly assessing the extent of currency misalignment. The results derived from the fundamental equilibrium...

Persistent link: https://www.econbiz.de/10013091077

Exchange Rate Misalignment Estimates - Sources of Differences

Cheung, Yin-Wong - 2013

We study the differences of currency misalignment estimates obtained from alternative datasets derived from two International Comparison Program (ICP) surveys. A decomposition exercise reveals that the year 2005 misalignment estimates are substantially affected by the ICP price revision....

Persistent link: https://www.econbiz.de/10013092474

Aid, Real Exchange Rate Misalignment and Economic Performance in Sub-Saharan Africa

Elbadawi, Ibrahim - 2009

Generating sustained growth in Sub-Saharan Africa is one of the most pressing challenges in global development. As the region needs foreign assistance to jump start its development, foreign aid becomes crucial. However, aid booms can also lead to exchange rate overvaluation curtailing exports...

Persistent link: https://www.econbiz.de/10013152994

Real Exchange Rate Targeting Under Imperfect Asset Substitutability

Lizondo, J. Saul - 2006

This paper presents a model of an economy that uses nominal exchange rate policy to keep the real exchange rate constant at a certain target level, under imperfect asset substitutability. The paper discusses the determinants of inflation under such a policy, and examines the consequences of...

Persistent link: https://www.econbiz.de/10012781732

Exchange Rates and Trade : A Disconnect?

Leigh, Daniel - 2017

We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over...

Persistent link: https://www.econbiz.de/10012956490