Exchange rate regime Research Papers (original) (raw)

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Central banks’ liquidity management plays a crucial role in the implementation of monetary policy. In most countries central banks influence short term interest rates through determining the equilibrium conditions of supply and demand in... more

Central banks’ liquidity management plays a crucial role in the implementation of monetary policy. In most countries central banks influence short term interest rates through determining the equilibrium conditions of supply and demand in the market for bank reserves (liquidity). This article describes the liquidity management practice of the National Bank of Hungary in the period of 1998-2001. This period is characterized by two particular circumstances. First, there is a substantial liquidity surplus, therefore the Bank influences market interest rates using the liabilities side instruments of its balance sheet. Second, as a result of the narrow-band exchange rate regime and the fact that the Treasury Account is held with the Bank, the amount of liquidity is highly volatile and hard to forecast. The article explains how the Bank forecasts liquidity and the movements of overnight interest rate in these circumstances, and it describes the development of monetary policy instruments ap...

The paper intends to analyze aspects of international economic order that are relevant to understand the integration of underdeveloped countries. Its main hypothesis is that globalization is the result of financial liberalization at the... more

The paper intends to analyze aspects of international economic order that are relevant to understand the integration of underdeveloped countries. Its main hypothesis is that globalization is the result of financial liberalization at the domestic level and of progressive capital mobility in the international field. To characterize globalization different aspects are examined, such as the influence of financial liberalization on

This paper analyzes the link between the choice of exchange rate regime and inflationary performance in four acceding countries to the EU: the Czech Republic, Hungary, Poland and Slovenia. The results allow a clear ranking of countries... more

This paper analyzes the link between the choice of exchange rate regime and inflationary performance in four acceding countries to the EU: the Czech Republic, Hungary, Poland and Slovenia. The results allow a clear ranking of countries according to the size of the pass-through effect and the importance of exchange rate shocks to overall inflationary performance. In particular, perfect pass-through

Ghana's cocoa production has declined in the past 25 years from half the world market share to about one tenth of the market. This has been partly due to policies that overvalued the domestic currency and heavily taxed cocoa exports.... more

Ghana's cocoa production has declined in the past 25 years from half the world market share to about one tenth of the market. This has been partly due to policies that overvalued the domestic currency and heavily taxed cocoa exports. This study addresses the dilemma Ghana's government faces: how to provide enough producer incentives to stimulate the cocoa exports Ghana

Giriş Bir ülkenin mal ve hizmet hareketleri sonucunda oluşan döviz giriş ve çıkışını, başka bir deyişle parasal hareketliliğinin çerçevesini belirleyen mevzuat kambiyo rejimini oluşturmaktadır. Dünyada hızlı küreselleşme eğilimiyle... more

Giriş Bir ülkenin mal ve hizmet hareketleri sonucunda oluşan döviz giriş ve çıkışını, başka bir deyişle parasal hareketliliğinin çerçevesini belirleyen mevzuat kambiyo rejimini oluşturmaktadır. Dünyada hızlı küreselleşme eğilimiyle birlikte artan uluslararası mal ve hizmet ticareti ülkelerin uyguladıkları kambiyo rejiminin öneminin artmasına neden olmuştur. Günümüzde her ülkenin kendi koşullarına göre uyguladığı farklı bir kam-biyo rejimi bulunmakta ve uygulanan bu rejimler de zamanla değişebilmektedir. Ülkelerin kambiyo rejimlerinde ortaya çıkan bu değişiklikler planlı olabildiği gibi, mali piyasalardan kaynaklanan baskılar ve krizler sonucu da gerçekleşebilmek-tedir. Hangi sebeple olursa olsun kambiyo rejimindeki değişiklikler dış ticaret, yabancı yatırımlar veya döviz pozisyonları aracılığıyla hem mali sektör hem de reel sektör üzerinde önemli etkiler yaratmaktadır. Ayrıca bir ülkede ekonomik büyümenin finansmanında kullanılabilecek kaynakların temini o ülkede uygulanan kambiyo rejimiyle yakından ilgilidir. Osmanlı İmparatorluğu döneminde kambiyo istikrarının sağlanmasına iliş-kin sorunlar Tanzimat Fermanı'nın ilanından sonra belirgin bir şekilde ortaya çık-mıştır. Bu dönemde sterlin-kuruş paritesinin sürekli artış göstermesinden dolayı kambiyo istikrarının sağlanması Osmanlı ekonomisinin öncelikli konularından biri haline gelmiştir. Osmanlı yönetimi kambiyo istikrarının sağlanması görevini 1843 yılında iki yıllık bir süre için iki Galata bankerine devretmiş; iki yıllık süre için başlayan bu uygulama 1849 yılında Dersaadet Bankası kuruluncaya kadar devam etmiştir. Ancak Osmanlı İmparatorluğu'nu finanse etmek için kurduğu sistemin çökmesiyle dört yıla yakın faaliyeti sonrasında bu banka kapanmıştır. Dersaadet Bankası'nın kapanmasından sonra kambiyo istikrarı ara sıra bazı tüccarlarla imza-lanan sözleşmeler çerçevesinde yürütülmeye çalışılmıştır. * Yrd. Doç. Dr., Nişantaşı Üniversitesi İktisadi İdari ve Sosyal Bilimler Fakültesi, Ekonomi ve Finans Bölümü.

A growing number of papers have studied positive and normative implications of financial frictions in DSGE models. We contribute to this literature by studying the welfare-based monetary policy in a two-country model characterized by... more

A growing number of papers have studied positive and normative implications of financial frictions in DSGE models. We contribute to this literature by studying the welfare-based monetary policy in a two-country model characterized by financial frictions, alongside a number of key features, like capital accumulation, non-traded goods and foreign-currency debt denomination. We compare the cooperative Ramsey monetary policy with standard

We show that the composition of imports has important implications for the optimal volatility of the exchange rate. Using input-output data for 25 countries we document substantial differences in the import and non-tradable content of... more

We show that the composition of imports has important implications for the optimal volatility of the exchange rate. Using input-output data for 25 countries we document substantial differences in the import and non-tradable content of final demand components, and in the role played by imported inputs in domestic production. We build a business cycle model of a small open economy to discuss how the problem of the optimizing policy-maker changes endogenously as the composition of imports and of final demand is altered. Contrary to models where steady state trade openness is entirely characterized by home bias, we find that trade openness is a very poor proxy of the welfare impact of alternative monetary policies. Finally, we quantify the loss from an exchange rate peg relative to the Ramsey policy conditional on the composition of imports, using parameter values that are estimated from OECD input-output tables data. We find that the main determinant of the losses is the share of non-traded goods in final demand. JEL Classification: E52, E31, F02, F41.

In what follows, we revisit this history with an eye toward establishing what is new and different about the recent wave of crises. We consider banking crises, currency crises and twin crises (where banking and currency crises coincide).... more

In what follows, we revisit this history with an eye toward establishing what is new and different about the recent wave of crises. We consider banking crises, currency crises and twin crises (where banking and currency crises coincide). The core comparison is with the earlier age of globalisation from 1880 to 1914. Interpretations of recent decades emphasise the role of

Renewed interest in the issue of appropriate exchange rate arrangements, particularly for developing countries, has been prompted by the general increase in global capital modility and the currency and payments crises of the 1990s. Three... more

Renewed interest in the issue of appropriate exchange rate arrangements, particularly for developing countries, has been prompted by the general increase in global capital modility and the currency and payments crises of the 1990s. Three propositions are currently heard as prescriptions regarding countries' choice of exchange rate regimes.

During the 90s emerging markets have been hit by recurrent exchange rate crises. Almost all these countries shared a common characteristic: they adopted in previous years soft pegs, the so-called intermediate exchange rate regimes.... more

During the 90s emerging markets have been hit by recurrent exchange rate crises. Almost all these countries shared a common characteristic: they adopted in previous years soft pegs, the so-called intermediate exchange rate regimes. International institutions and academic ...

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