Exchange Depreciation

Exchange Depreciation
Author: Seymour Edwin Harris
Publisher: Cambridge : Harvard University Press
Total Pages: 556
Release: 1936
Genre: Currency question
ISBN:

Global Value Chains and the Exchange Rate Elasticity of Exports

Global Value Chains and the Exchange Rate Elasticity of Exports
Author: Swarnali Ahmed
Publisher: International Monetary Fund
Total Pages: 28
Release: 2015-11-30
Genre: Business & Economics
ISBN: 1513560972

This paper analyzes how the formation of Global Value Chains (GVCs) has affected the exchange rate elasticity of exports. Using a panel framework covering 46 countries over the period 1996-2012, we first find some suggestive evidence that the elasticity of real manufacturing exports to the Real Effective Exchange Rate (REER) has decreased over time. We then examine whether the formation of supply chains has affected this elasticity using different measures of GVC integration. Intuitively, as countries are more integrated in global production processes, a currency depreciation only improves competitiveness of a fraction of the value of final good exports. In line with this intuition, we find evidence that GVC participation reduces the REER elasticity of manufacturing exports by 22 percent, on average.

Exchange Rate Rules

Exchange Rate Rules
Author: John Williamson
Publisher: Springer
Total Pages: 426
Release: 1981-06-18
Genre: Business & Economics
ISBN: 1349051667

Exchange Rate Theory and Practice

Exchange Rate Theory and Practice
Author: John F. Bilson
Publisher: University of Chicago Press
Total Pages: 542
Release: 2007-12-01
Genre: Business & Economics
ISBN: 0226050998

This volume grew out of a National Bureau of Economic Research conference on exchange rates held in Bellagio, Italy, in 1982. In it, the world's most respected international monetary economists discuss three significant new views on the economics of exchange rates - Rudiger Dornbusch's overshooting model, Jacob Frenkel's and Michael Mussa's asset market variants, and Pentti Kouri's current account/portfolio approach. Their papers test these views with evidence from empirical studies and analyze a number of exchange rate policies in use today, including those of the European Monetary System.

Dominant Currency Paradigm: A New Model for Small Open Economies

Dominant Currency Paradigm: A New Model for Small Open Economies
Author: Camila Casas
Publisher: International Monetary Fund
Total Pages: 62
Release: 2017-11-22
Genre: Business & Economics
ISBN: 1484330609

Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.

Achieving Price, Financial and Macro-Economic Stability in South Africa

Achieving Price, Financial and Macro-Economic Stability in South Africa
Author: Nombulelo Gumata
Publisher: Springer Nature
Total Pages: 556
Release: 2021-05-27
Genre: Business & Economics
ISBN: 303066340X

This book explores the macro-financial effects of central bank balance sheets, macro-prudential tools, and financial regulation in South Africa. How employment can be maximised while keeping inflation low and stable is examined in relation to the structural changes required to alter the composition of South African bank balance sheets. Quantitative methods and approaches are utilised to highlight the impact of suggested policies. This book aims to outline strategies and policy interventions that can help achieve the National Development Plan in South Africa. It will be of interest to researchers and policymakers working within development economics, African economics, development finance, and financial policy.

Exchange Rate Movements and International Interdependence of Stock Markets

Exchange Rate Movements and International Interdependence of Stock Markets
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 52
Release: 1989-05-12
Genre: Business & Economics
ISBN: 1451974493

This paper investigates linkages between stock markets in seven industrialized countries since 1974. Empirical evidence shows that both nominal and real stock prices (and returns) are strongly positively correlated across countries, and that nominal exchange rate changes do not have systematic effects on nominal stock prices. A two-country theoretical model is developed and an attempt is made to reconcile the empirical findings with the properties of this model. Independent evidence on the main sources of shocks is used to argue that the time-varying correlation in the data can be reconciled with the predictions of the theory.

Exchange Rates and Inflation

Exchange Rates and Inflation
Author: Rudiger Dornbusch
Publisher: MIT Press
Total Pages: 490
Release: 1988
Genre: Business & Economics
ISBN: 9780262540605

Collected for the first time in Exchange Rates and Inflation, twenty-two articles are gathered in four parts covering exchange rate theory, special topics in exchange rate economics, equilibrium real exchange rates, and inflation and stabilization.