We investigate monetary policy under the assumption that a country's capital market is "open" under the WTO framework while the exchange rate is fixed. Our purpose is to determine if it is possible in this case for the economy to maintain an effective monetary policy for stabilizing the domestic...

In this paper the relationship between the demand for international reserves and exchange rate adjustments is empirically investigated for agroup of LDC's. It is shown that countries that have maintained a fixed exchange rate for a long period of time have a different demand function than...

This paper finds that limited exchange rate flexibility in the form of “fear of appreciation” significantly slows adjustment of current account imbalances, providing novel support for Friedman’s conjecture regarding exchange-rate flexibility. We present a new stylized fact: floaters have...

The primary aim of this paper is to explore the effectiveness of Hoarding International Reserves and Sterilization in dollarized and indebted countries such as Turkey and Lebanon, by measuring the sterilization coefficient, and the offset coefficient. It also focuses on exploring the link...

În ultimele decenii, utilizarea cursurilor valutare drept ancore nominale de fixare a preţurilor pare să cunoască un declin. Totuşi, pentru unele ţări, ţintirea cursurilor valutare ar putea fi o soluţie la actualele circumstanţe. În această lucrare vom aborda câteva elemente...