Exchange Rate Rules
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Exchange-rate Management in Theory and Practice
Author | : Victor E. Argy |
Publisher | : |
Total Pages | : 374 |
Release | : 1982 |
Genre | : Business & Economics |
ISBN | : |
Foreign Exchange Intervention Rules for Central Banks: A Risk-based Framework
Author | : Romain Lafarguette |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2021-02-12 |
Genre | : Business & Economics |
ISBN | : 1513569406 |
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.
Exchange Rate Rules
Author | : John Williamson |
Publisher | : Springer |
Total Pages | : 426 |
Release | : 1981-06-18 |
Genre | : Business & Economics |
ISBN | : 1349051667 |
Handbook of Development Economics
Author | : Dani Rodrick |
Publisher | : Elsevier |
Total Pages | : 1066 |
Release | : 2009-11-09 |
Genre | : Business & Economics |
ISBN | : 0080931723 |
What guidance does academic research really provide to economic policy development? The critical and analytical surveys in this volume investigate links between policies and outcomes by surveying work from broad macroeconomic policies to interventions in microfinance. Asserting that there are no universal correspondences between policies and outcomes, contributors demonstrate instead that only an intense familiarity with the development context and the universe of applicable economic models can generate successful policies. Getting cause-and-effect right is essential for policy design and implementation. With the goal of drawing researchers and policy makers closer, this volume highlights our increasing understanding of ways to combine economic theorizing with careful, thoughtful empirical work. - Presents an accurate, self-contained survey of the current state of the field - Summarizes the most recent discussions, and elucidates new developments - Although original material is also included, the main aim is the provision of comprehensive and accessible surveys
Exchange Rate Economics
Author | : Ronald MacDonald |
Publisher | : Routledge |
Total Pages | : 334 |
Release | : 2005 |
Genre | : Foreign exchange |
ISBN | : 1134838220 |
''In summary, the book is valuable as a textbook both at the advanced undergraduate level and at the graduate level. It is also very useful for the economist who wants to be brought up-to-date on theoretical and empirical research on exchange rate behaviour.'' ""Journal of International Economics""
Foreign Exchange Intervention as a Monetary Policy Instrument
Author | : Felix Hüfner |
Publisher | : Springer Science & Business Media |
Total Pages | : 180 |
Release | : 2012-12-06 |
Genre | : Business & Economics |
ISBN | : 3790826723 |
Foreign exchange intervention is frequently being used by central banks in countries which have a floating exchange rate. Most theoretical monetary policy models, however, do not take this phenomenon into account. This book contributes to close this gap between theory and practice by interpreting foreign exchange intervention as an additional monetary policy instrument for inflation targeting central banks. In-depth empirical analyses of the foreign exchange operations and interest rate policy of five inflation targeting countries (Australia, Canada, New Zealand, Sweden and the United Kingdom) demonstrate how foreign exchange intervention is used in practice.
Exchange Rate Misalignment in Developing Countries
Author | : Sebastian Edwards |
Publisher | : Johns Hopkins University Press |
Total Pages | : 110 |
Release | : 1988 |
Genre | : Business & Economics |
ISBN | : |
This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.
Currency Conflict and Trade Policy
Author | : C. Fred Bergsten |
Publisher | : Columbia University Press |
Total Pages | : 392 |
Release | : 2017-06-27 |
Genre | : Business & Economics |
ISBN | : 0881327255 |
Conflicts over currency valuations are a recurrent feature of the modern global economy. To strengthen their international competitiveness, many countries resort to buying foreign currencies to make their exports cheaper and their imports more expensive. In the first decade of the 21st century, for example, China's currency manipulation practices were so flagrant that they produced a backlash in the United States and other trading partners, prompting threats of retaliation. How damaging is the practice of currency manipulation—and how extensive is the problem? This book by C. Fred Bergsten and Joseph E. Gagnon—two leading experts on trade, investment, and the effects of currency manipulation—traces the history, causes, and effects of currency manipulation and analyzes a range of policy responses that the United States could adopt. The book is an indispensable guide to a complex and serious problem and what might be done to solve it.
The Management of Foreign Exchange Reserves
Author | : Scott Roger |
Publisher | : |
Total Pages | : 116 |
Release | : 1993 |
Genre | : Foreign exchange |
ISBN | : |