Optimal And Sustainable Exchange Rate Regimes

Download Optimal And Sustainable Exchange Rate Regimes full books in PDF, epub, and Kindle. Read online Optimal And Sustainable Exchange Rate Regimes ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Optimal and Sustainable Exchange Rate Regimes

Author : Masahiro Kawai
Publisher : International Monetary Fund
ISBN 13 : 1451852320
Total Pages : 44 pages
Book Rating : 4.4/5 (518 download)

DOWNLOAD NOW!

Book Synopsis Optimal and Sustainable Exchange Rate Regimes by : Masahiro Kawai

Download or read book Optimal and Sustainable Exchange Rate Regimes written by Masahiro Kawai and published by International Monetary Fund. This book was released on 1992-11-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares noncooperative equilibria under different assumptions of monetary policy credibility and different exchange rate regimes. Using a two-stage game approach to the strategic choice of policy instruments, it identifies optimal (in a Pare to sense) and sustainable (self-enforcing) exchange rate regimes. The theoretical results indicate that the choice of such regimes depends fundamentally on the credibility of monetary policy commitments by the two countries’ authorities. The nature of shocks to the economies and the substitutability between goods produced in the two countries also play some role. International coordination on instrument choice is necessary to design optimal and sustainable exchange rate regimes.

Optimal and Sustainable Exchange Rate Regimes

Author : United Nations. Economic Commission for Africa
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (122 download)

DOWNLOAD NOW!

Book Synopsis Optimal and Sustainable Exchange Rate Regimes by : United Nations. Economic Commission for Africa

Download or read book Optimal and Sustainable Exchange Rate Regimes written by United Nations. Economic Commission for Africa and published by . This book was released on 1994 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Exchange Rate Regime Choice

Author : Mr.Robert P. Flood
Publisher : International Monetary Fund
ISBN 13 : 1451851324
Total Pages : 9 pages
Book Rating : 4.4/5 (518 download)

DOWNLOAD NOW!

Book Synopsis Exchange Rate Regime Choice by : Mr.Robert P. Flood

Download or read book Exchange Rate Regime Choice written by Mr.Robert P. Flood and published by International Monetary Fund. This book was released on 1991-09-01 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally the choice of exchange rate regime has been seen as a second-best policy choice, which can be directed toward mitigating the distortionary effects of price or information rigidities. In this paradigm the optimal degree of exchange rate flexibility is found to depend of the source and nature of shocks hitting an economy. More recent literature views the exchange rate as a widely and frequently seen manifestation of government policy with careful exchange-rate management emerging as a tool that can enhance shaky policy credibility.

Optimal and Sustainable Exchange Rate Regimes

Author : Masahiro Kawai
Publisher :
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Optimal and Sustainable Exchange Rate Regimes by : Masahiro Kawai

Download or read book Optimal and Sustainable Exchange Rate Regimes written by Masahiro Kawai and published by . This book was released on 1992 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Exchange Rate Regime Transitions

Author : Paul R. Masson
Publisher :
ISBN 13 :
Total Pages : 24 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Exchange Rate Regime Transitions by : Paul R. Masson

Download or read book Exchange Rate Regime Transitions written by Paul R. Masson and published by . This book was released on 2000 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some have argued that the only sustainable regimes are free floating and hard exchange rate commitments--essentially currency boards or monetary unions (Eichengreen, 1994, 1998; Obstfeld and Rogoff, 1995). For instance, Eichengreen (1994, pp. 4-5) says that ..". contingent policy rules to hit explicit exchange rate targets will no longer be viable in the twenty-first century ... Countries ... will be forced to choose between floating exchange rates on the one hand and monetary unification on the other." Similarly, Obstfeld and Rogoff (1995, pp. 74) state ..". there is little, if any, comfortable middle ground between floating rates and the adoption of a common currency." Hence, in the view of these authors, in the future we will see a disappearance of the middle ground that corresponds to soft commitments to some sort of intermediate exchange rate regime--adjustable pegs, crawling pegs, or bands, and perhaps also managed floating. This view is sometimes called the "two poles" or "hollowing out" (e.g., Eichengreen, 1994, pp. 6) theory of exchange rate regimes, and is based on the observation that higher capital mobility makes exchange rate commitments increasingly fragile. However, like the optimal currency area literature, which is essentially static, an explicit or implicit assumption is made that regimes are chosen to last forever, and from this perspective, one would only choose a regime that could be sustained once and for all. Only the hardest peg and the absence of any exchange rate commitment whatsoever are likely to qualify on that basis. Thus Eichengreen (1994, pp. 5), states "This will rule out the maintenance for extended periods of pegged but adjustable exchange rates, crawling pegs, and other regimes in which governments pre-announce limits on exchange rate fluctuations ..." (italics added).

Monetary Policy and Exchange Rates

Author : Liliana Rojas-Suarez
Publisher :
ISBN 13 :
Total Pages : 33 pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Monetary Policy and Exchange Rates by : Liliana Rojas-Suarez

Download or read book Monetary Policy and Exchange Rates written by Liliana Rojas-Suarez and published by . This book was released on 2015 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is there an optimal monetary/exchange rate system for Latin America? An analysis of the evidence leads us to conclude that "one size does not fit all", but that with the exception of a few countries, more rather than less exchange rate flexibility is desired. However, facing a set of constraints particular to Latin America, "pure flexibility" is not the right choice. Inflation targeting combined with managed floating, involving clear and limited instances for intervention in the foreign exchange market, appears to be an appropriate choice for most of the region's countries, at least in the short run. Accumulation of foreign liquidity in the banking sector and in government-managed funds is also a necessary complement. The true long-term challenge, however, lies in removing the constraints that limit the options of viable exchange rate regimes.

Evolution and Performance of Exchange Rate Regimes

Author : Mr.Kenneth Rogoff
Publisher : International Monetary Fund
ISBN 13 : 1451875843
Total Pages : 85 pages
Book Rating : 4.4/5 (518 download)

DOWNLOAD NOW!

Book Synopsis Evolution and Performance of Exchange Rate Regimes by : Mr.Kenneth Rogoff

Download or read book Evolution and Performance of Exchange Rate Regimes written by Mr.Kenneth Rogoff and published by International Monetary Fund. This book was released on 2003-12-01 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Exchange Rate Determination and Optimal Economic Policy Under Various Exchange Rate Regimes

Author : Eelke de Jong
Publisher : Springer
ISBN 13 :
Total Pages : 284 pages
Book Rating : 4.:/5 (43 download)

DOWNLOAD NOW!

Book Synopsis Exchange Rate Determination and Optimal Economic Policy Under Various Exchange Rate Regimes by : Eelke de Jong

Download or read book Exchange Rate Determination and Optimal Economic Policy Under Various Exchange Rate Regimes written by Eelke de Jong and published by Springer. This book was released on 1991 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Optimal Currency Areas

Author : Willem H. Buiter
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (535 download)

DOWNLOAD NOW!

Book Synopsis Optimal Currency Areas by : Willem H. Buiter

Download or read book Optimal Currency Areas written by Willem H. Buiter and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Monetary Contracting Between Central Banks and the Design of Sustainable Exchange-rate Zones

Author : Francisco Delgado
Publisher :
ISBN 13 :
Total Pages : 46 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Monetary Contracting Between Central Banks and the Design of Sustainable Exchange-rate Zones by : Francisco Delgado

Download or read book Monetary Contracting Between Central Banks and the Design of Sustainable Exchange-rate Zones written by Francisco Delgado and published by . This book was released on 1990 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: An exchange-rate system is a set of contracts which commits central banks to intervene in the foreign-exchange market. The design features of the system include: the rules of intervention, the limits placed on exchange rates and the "crisis scenario" which describes possible transitions to new regimes in case one central bank runs out of reserves or borrowing capacity. This paper considers the various trade-offs one faces in designing an exchange-rate system. Svensson (1989) has already analyzed the degree of variability in the exchange rate, the interest rate and the fundamentals. But the tradeoff also pertains to the amount of reserves which the central banks must have on hand in order to forestall a speculative attack and make the system sustainable. The amount of reserves needed depends crucially on the assured crisis scenario

Revised System for the Classification of Exchange Rate Arrangements

Author : Mr.Harald Anderson
Publisher : International Monetary Fund
ISBN 13 : 1451873581
Total Pages : 20 pages
Book Rating : 4.4/5 (518 download)

DOWNLOAD NOW!

Book Synopsis Revised System for the Classification of Exchange Rate Arrangements by : Mr.Harald Anderson

Download or read book Revised System for the Classification of Exchange Rate Arrangements written by Mr.Harald Anderson and published by International Monetary Fund. This book was released on 2009-09-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since 1998, the staff of the International Monetary Fund has published a classification of countries' de facto exchange rate arrangements. Experience in operating this classification system has highlighted a need for changes. The present paper provides information on revisions to the system in early 2009. The changes are expected to allow for greater consistency and objectivity of classifications across countries, expedite the classification process, conserve resources, and improve transparency.

Fixed Vs. Floating Exchange Rates

Author : Michael B. Devereux
Publisher :
ISBN 13 :
Total Pages : 66 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Fixed Vs. Floating Exchange Rates by : Michael B. Devereux

Download or read book Fixed Vs. Floating Exchange Rates written by Michael B. Devereux and published by . This book was released on 1998 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the welfare properties of fixed and floating exchange rate regimes in a two-country, dynamic, infinite-horizon model with agents optimizing in an environment of uncertainty created by monetary shocks. The optimal exchange rate regime may depend on whether prices are set in the currency of producers or the currency of consumers. When prices are set in consumers' currency, the variance of home consumption is not influenced by foreign monetary variance under floating exchange rates, while there is transmission of foreign disturbances under floating rates if prices are set in producers' currencies, or under fixed exchange rates. An important feature of the model is the exchange rate regime affects not just the variance of consumption and output, but also their average levels. When prices are set in producer's currency, as in the traditional framework, we find that there is a trade-off between floating and fixed exchange rates. Exchange rate adjustment under floating rates allows for a lower variance of consumption, but exchange rate volatility itself leads to a lower average level of consumption. When prices are set in consumer's currency, floating exchange rates always dominate fixed exchange rates.

Moving to a Flexible Exchange Rate

Author : Mrs.Gilda Fernandez
Publisher : International Monetary Fund
ISBN 13 : 1589064763
Total Pages : 29 pages
Book Rating : 4.5/5 (89 download)

DOWNLOAD NOW!

Book Synopsis Moving to a Flexible Exchange Rate by : Mrs.Gilda Fernandez

Download or read book Moving to a Flexible Exchange Rate written by Mrs.Gilda Fernandez and published by International Monetary Fund. This book was released on 2006-01-09 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: A growing number of countries are adopting flexible exchange rate regimes because flexibility offers more protection against external shocks and greater monetary independence. Other countries have made the transition under disorderly conditions, with the sharp depreciation of their currency during a crisis. Regardless of the reason for adopting a flexible exchange rate, a successful transition depends on the effective management of a number of institutional and operational issues. The authors of this Economic Issue describe the necessary ingredients for moving to a flexible regime, as well as the optimal pace and sequencing under different conditions.

Exchange Rate Regimes

Author : Atish R. Ghosh
Publisher : MIT Press
ISBN 13 : 9780262072403
Total Pages : 252 pages
Book Rating : 4.0/5 (724 download)

DOWNLOAD NOW!

Book Synopsis Exchange Rate Regimes by : Atish R. Ghosh

Download or read book Exchange Rate Regimes written by Atish R. Ghosh and published by MIT Press. This book was released on 2002 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: An empirical study of exchange rate regimes based on data compiled from 150 member countries of the International Monetary Fund over the past thirty years. Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early 1970s, countries have adopted a wide variety of regimes, ranging from pure floats at one extreme to currency boards and dollarization at the other. While a vast theoretical literature explores the choice and consequences of exchange rate regimes, the abundance of possible effects makes it difficult to establish clear relationships between regimes and common macroeconomic policy targets such as inflation and growth. This book takes a systematic look at the evidence on macroeconomic performance under alternative exchange rate regimes, drawing on the experience of some 150 member countries of the International Monetary Fund over the past thirty years. Among other questions, it asks whether pegging the exchange rate leads to lower inflation, whether floating exchange rates are associated with faster output growth, and whether pegged regimes are particularly prone to currency and other crises. The book draws on history and theory to delineate the debate and on standard statistical methods to assess the empirical evidence, and includes a CD-ROM containing the data set used.

The Collapse of Exchange Rate Regimes

Author : George S. Tavlas
Publisher : Springer Science & Business Media
ISBN 13 : 1461562899
Total Pages : 247 pages
Book Rating : 4.4/5 (615 download)

DOWNLOAD NOW!

Book Synopsis The Collapse of Exchange Rate Regimes by : George S. Tavlas

Download or read book The Collapse of Exchange Rate Regimes written by George S. Tavlas and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: ical) and to self-fulfilling currency crisis, respectively. Research stressing the former approach was pioneered by Krugman (1979) and Flood and Garber (1984). According to this line of research, the failure of governments to adopt domestic monetary and fiscal policies consistent with their stated exchange rate targets leads to a gradual diminution of reserves and eventually a stock adjustment that depletes reserves suddenly in one attack (Sachs, Tornell, and Velasco, 1996, page 47). The result is either a devaluation of the exchange rate or a switch to floating. Subsequent work of this genre has specified a number of other channels, in addition to that involving inconsistent and unsustainable monetary and fiscal policies, that can precipitate an attack: 1. Inconsistency between external and internal objectives. The stances of monetary and fiscal policies may be consistent with the authorities' exchange rate target, but domestic economic indicators (such as the unemployment rate) may be inconsistent with internal balance, resulting in pressures on the authorities to relax macroeconomic policies. Private agents, aware of this inconsistency, perceive an opportunity for profits from a currency devaluation and precipitate an attack. 2. Contagion effects. Prior to an attack on another currency (say that of country B), the market may view a country's (say, country A's) exchange rate as consistent with economic fundamentals and, thus, sustainable.

Fix Vs. Float: Evaluating the Transition to a Sustainable Equilibrium in Bolivia

Author : Andres Gonzalez
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4.4/5 (2 download)

DOWNLOAD NOW!

Book Synopsis Fix Vs. Float: Evaluating the Transition to a Sustainable Equilibrium in Bolivia by : Andres Gonzalez

Download or read book Fix Vs. Float: Evaluating the Transition to a Sustainable Equilibrium in Bolivia written by Andres Gonzalez and published by International Monetary Fund. This book was released on 2022-02-25 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bolivia has achieved noteworthy success over the past 15 years in raising incomes, reducing poverty, and maintaining macroeconomic stability by deploying commodity revenues to finance transfers, public investment, and state-led development, using an exchange rate peg as a policy anchor. However, with the end of the commodity boom in 2014, fiscal deficits have grown and reserves have fallen. One route to restoring long-run sustainability would be to combine fiscal consolidation with a switch to a floating exchange rate. However, a preference for maintaining the peg could be accommodated with adjustments elsewhere in the policy framework. Employing a detailed dynamic stochastic general equilibrium model of the Bolivian economy, this study assesses the long-run sustainability and relative benefits of alternative policy combinations, and calculates optimal adjustment paths for the transition from the present situation to the steady state. It concludes that continued adherence to a fixed-rate regime, while not optimal, is feasible, if supported by a larger fiscal effort.

Exchange Rate Management in Interdependent Economies

Author : Silke Fabian
Publisher : Springer Science & Business Media
ISBN 13 : 3642500293
Total Pages : 175 pages
Book Rating : 4.6/5 (425 download)

DOWNLOAD NOW!

Book Synopsis Exchange Rate Management in Interdependent Economies by : Silke Fabian

Download or read book Exchange Rate Management in Interdependent Economies written by Silke Fabian and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the breakdown of the Bretton Woods System and the begin of floating between the major currencies, central banks have been formally freed from their obligations to defend the fixed parities of bilateral exchange rates. Nev ertheless, since then there have been countless occasions on which monetary authorities have officially intervened in the foreign exchange market. More over, numerous studies indicate that exchange rates have been much more variable than originally anticipated - in real and in nominal, as well as in short run and longer run measures (see for example Hesse and Braasch [1989] and Marston [1988]). Through the experience of high real sector costs, the topic of optimal exchange rate management soon reentered policy discussions. The term exchange rate management encompasses both the choice of ex change rate regime as well as active intervention policies within the given 1 system. Much of the recent policy discussion has focussed on the first issue, in particular proposals of how to reform the present international monetary order. And new systems such as the European Monetary System (EMS) have emerged for subgroups of countries. However, the question of finding the optimal system has not yet been resolved.