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Do Exchange Rates Move to Address International Macroeconomic Imbalances?

Canzoneri, Matthew B; Vallés Liberal, Javier; Viñals, … - C.E.P.R. Discussion Papers - 1996

This paper provides empirical evidence on the effectiveness of movements in nominal exchange rates in smoothing cyclical imbalances between countries, as explained by the literature on optimal currency areas. We use restrictions from the Mundell-Flemming model (on which the theory of optimal...

Persistent link: https://www.econbiz.de/10005124317

Sovereign Risk, Credibility and the Gold Standard: 1870-1913 versus 1925-31

Obstfeld, Maurice; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2003

What determines sovereign risk? We study the London bond market from the 1870s to the 1930s. Our findings support conventional wisdom concerning the limited credibility of the interwar gold standard. Before 1914, gold standard adherence effectively signalled credibility and shaved 40 to 60 basis...

Persistent link: https://www.econbiz.de/10005497898

Monetary policy in open economies: Practical perspectives for pragmatic central bankers

Clarida, Richard H. - In: Journal of Economic Dynamics and Control 49 (2014) C, pp. 21-30

This paper reviews and interprets some of the key policy implications that flow from a class of DSGE models for optimal monetary policy in the open economy. The framework suggests that good macroeconomic outcomes in open economies are possible by focusing inflation targeting that is implemented...

Persistent link: https://www.econbiz.de/10011117354

Monetary Sovereignty, Exchange Rates, and Capital Controls: The Trilemma in the Interwar Period

Obstfeld, Maurice; Shambaugh, Jay C; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2004

The interwar period was marked by the end of the classical gold standard regime and new levels of macroeconomic disorder in the world economy. The interwar disorder is often linked to policies inconsistent with the constraint of the open-economy trilemma - the inability of policy-makers...

Persistent link: https://www.econbiz.de/10005067639

New Open Economy Macroeconomics

Corsetti, Giancarlo - C.E.P.R. Discussion Papers - 2007

'New open economy macroeconomics' (NOEM) refers to a body of literature embracing a new theoretical framework for policy analysis in open economy, aiming to overcome the limitations of the Mundell-Fleming model while preserving the empirical wisdom and policy friendliness of traditional...

Persistent link: https://www.econbiz.de/10005789191

The Trilemma in History: Trade-offs Among Exchange Rates, Monetary Policies and Capital Mobility

Obstfeld, Maurice; Shambaugh, Jay C; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2004

The exchange-rate regime is often seen as constrained by the monetary policy trilemma, which imposes a stark trade-off among exchange stability, monetary independence, and capital market openness. Yet the trilemma has not gone without challenge. Some (e.g., Calvo and Reinhart 2001, 2002) argue...

Persistent link: https://www.econbiz.de/10005123496

Chapter 10. External Adjustment, Global Imbalances, Valuation Effects

Gourinchas, Pierre-Olivier; Rey, Hélène - In: Handbook of international economics : Volume 4, (pp. 585-645). 2014

We provide an overview of the recent developments of the literature on the determinants of long-term capital flows, global imbalances, and valuation effects. We present the main stylized facts of the new international financial landscape in which external balance sheets of countries have grown...

Persistent link: https://www.econbiz.de/10014025376

Has the euro affected the choice of invoicing currency?

Ligthart, Jenny E.; Werner, Sebastian E.V. - In: Journal of International Money and Finance 31 (2012) 6, pp. 1551-1573

We present a new approach to study empirically the effect of the introduction of the euro on the pattern of currency … invoicing after the introduction of the euro, whereas the home currency share of non-eurozone countries fell slightly. In … addition, the euro as a vehicle currency has overtaken the role of the US dollar in Norwegian imports. The substantial rise in …

Persistent link: https://www.econbiz.de/10010869452

"Living and Dying with Hard Pegs: The Rise and Fall of Argentina's Currency Board"

Torre, Augusto de la; Yeyati, Eduardo Levy; Schmukler, … - In: ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN … (2003)

The rise and fall of Argentina´s currency board illustrates the extent to which the advantages of hard pegs have been overstated. The currency board did provide nominal stability and boosted financial intermediation, at the cost of endogenous financial dollarization, but did not foster fiscal...

Persistent link: https://www.econbiz.de/10009021334

Monetary Integration in Europe: Implications for Real Interest Rates, National Stock Markets and the Volatility of Prices and Exchange Rates

Canzoneri, Matthew B; Dellas, Harris - C.E.P.R. Discussion Papers - 1995

Monetary arrangements in Europe vacillated wildly over the last decade, and they may be expected to continue to do so over the next. The literature on this chaotic process has focused on issues of credibility. Here, we focus instead on the longer-run implications of Europe's choice of monetary...

Persistent link: https://www.econbiz.de/10005662228