Similar Search Results

The Real Exchange Rate in Transition Economies

Grafe, Clemens; Wyplosz, Charles - C.E.P.R. Discussion Papers - 1997

Real exchange rates appear to present a specific behaviour in the early phase of transition: they are largely … unaffected by nominal exchange rate movements and exhibit trend appreciation. The model presented here describes the transition …

Persistent link: https://www.econbiz.de/10005498147

Real exchange rate adjustment, wage-setting institutions, and fiscal stabilization policy: Lessons of the Eurozone’s first decade

Carlin, Wendy - C.E.P.R. Discussion Papers - 2012

In terms of macroeconomic performance, the Eurozone’s first decade is a story of successful inflation-targeting by the ECB for the common currency area as a whole combined with the persistence of real exchange rate and current account disequilibria at member country level. According to the...

Persistent link: https://www.econbiz.de/10011084267

Real Exchange Rate Dynamics in Transition Economies

Coricelli, Fabrizio; Jazbec, Bostjan - C.E.P.R. Discussion Papers - 2001

Real exchange appreciation has been a common feature in transition economies since the launching of stabilization and … sixth year into the transition. The dynamics of the real exchange rate in several Central-Eastern European countries (CEE … transition. The Paper concludes by discussing the implications for exchange rate policy for transition economies and potential …

Persistent link: https://www.econbiz.de/10005656337

The Composition of Government Spending and the Real Exchange Rate

Galstyan, Vahagn A.; Lane, Philip R. - C.E.P.R. Discussion Papers - 2008

We show that the composition of government spending influences the long-run behaviour of the real exchange rate. We develop a two-sector small open economy model in which an increase in government consumption is associated with real appreciation, while an increase in government investment may...

Persistent link: https://www.econbiz.de/10005662050

Nonlinear Aspects of Goods-Market Arbitrage and Adjustment: Heckscher's Commodity Points Revisited

Obstfeld, Maurice; Taylor, Alan M. - C.E.P.R. Discussion Papers - 1997

We propose that analysis of purchasing power parity (PPP) and the law of one price (LOOP) should explicitly take into account the possibility of ‘commodity points’ – thresholds delineating a region of no central tendency among relative prices, possibly due to lack of perfect arbitrage in...

Persistent link: https://www.econbiz.de/10005662194

Fundamentals at Odds? The US Current Account Deficit and The Dollar

Milesi-Ferretti, Gian Maria - C.E.P.R. Discussion Papers - 2008

In mid-2008, the real effective exchange rate of the dollar was close to its minimum level for the past 4 decades. At the same time, however, the U.S. trade and current account deficits remain large and, absent a significant correction in coming years, would contribute to a further accumulation...

Persistent link: https://www.econbiz.de/10005662389

Nonlinear Mean-Reversion in Real Exchange Rates: Towards a Solution to the Purchasing Power Parity Puzzles

Peel, David; Sarno, Lucio; Taylor, Mark P - C.E.P.R. Discussion Papers - 2001

We fit nonlinearly mean-reverting models to real dollar exchange rates over the post-Bretton Woods period, consistent with a theoretical literature on transaction costs in international arbitrage. The half lives of real exchange rate shocks, calculated through Monte Carlo integration, imply...

Persistent link: https://www.econbiz.de/10005666576

Official Intervention in the Foreign Exchange Market: Is It Effective, and, If So, How Does It Work?

Sarno, Lucio; Taylor, Mark P - C.E.P.R. Discussion Papers - 2001

In this Paper we assess the progress made by the profession in understanding whether and how exchange rate intervention works. To this end, we review the theory and evidence on official intervention, concentrating primarily on work published within the last decade or so. Our reading of the...

Persistent link: https://www.econbiz.de/10005666659

Is Official Exchange Rate Intervention Effective?

Taylor, Mark P - C.E.P.R. Discussion Papers - 2003

I examine the effectiveness of exchange rate intervention within the context of a Markov-switching model for the real exchange rate. The probability of switching between stable and unstable regimes depends non-linearly upon the amount of intervention, the degree of misalignment and the duration...

Persistent link: https://www.econbiz.de/10005789130

Real Exchange Rate Overshooting RBC Style

Meenagh, David; Minford, Patrick; Nowell, Eric; Sofat, … - C.E.P.R. Discussion Papers - 2005

This paper establishes the ability of a Real Business Cycle model to account for real exchange rate (RXR) behaviour, using UK experience as empirical focus. We show that a productivity burst simulation is capable of explaining the appreciation of RXR and its cyclical pattern observed in the...

Persistent link: https://www.econbiz.de/10005791457