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Differences in Exchange Rate Pass-Through in the Euro Area

Campa, José Manuel; Mìnguez, González; Manuel, Jose - C.E.P.R. Discussion Papers - 2004

This Paper focuses on the pass-through of exchange rate changes into the prices of imports made by euro area countries originating outside the area. Using data on import unit values for 13 different product categories for each country, we estimate industry-specific rates of pass-through across...

Persistent link: https://www.econbiz.de/10005067653

Exchange Rate Predictability

Rossi, Barbara - C.E.P.R. Discussion Papers - 2013

The main goal of this article is to provide an answer to the question: "Does anything forecast exchange rates, and if … article provides a critical review of the recent literature on exchange rate forecasting and illustrates the new methodologies …" on the choice of predictor, forecast horizon, sample period, model, and forecast evaluation method. Predictability is …

Persistent link: https://www.econbiz.de/10011084576

The Returns to Currency Speculation in Emerging Markets

Burnside, Craig; Eichenbaum, Martin; Rebelo, Sérgio - C.E.P.R. Discussion Papers - 2007

The carry trade strategy involves selling forward currencies that are at a forward premium and buying forward currencies that are at a forward discount. We compare the payoffs to the carry trade applied to two different portfolios. The first portfolio consists exclusively of developed country...

Persistent link: https://www.econbiz.de/10005504278

Exchange Rate Policies for the EFTA Countries in the 1990s

Branson, William H - C.E.P.R. Discussion Papers - 1991

As the European Community (EC) unifies its financial markets and fixes its exchange rates, the EFTA countries are liberalizing capital movements to the same extent. The EFTA countries thus face a decision on financial markets and exchange rate policy: should they essentially join the European...

Persistent link: https://www.econbiz.de/10005504364

Modeling Exchange Rate Passthrough After Large Devaluations

Burstein, Ariel Tomas; Eichenbaum, Martin; Rebelo, Sérgio - C.E.P.R. Discussion Papers - 2005

Large devaluations are generally associated with large declines in real exchange rates. We develop a model which embodies two complementary forces that account for the large declines in the real exchange rate that occur in the aftermath of large devaluations. The first force is sticky...

Persistent link: https://www.econbiz.de/10005504694

Psychological Barriers in the Foreign Exchange Market

De Grauwe, Paul; Decupere, Danny - C.E.P.R. Discussion Papers - 1992

This paper undertakes an empirical analysis of the existence of psychological barriers in the dollar/DM and the dollar/yen exchange markets. Psychological barriers occur when agents attach some special importance to the last trailing digits of the price of an asset or a currency. Our empirical...

Persistent link: https://www.econbiz.de/10005497745

Foreign Exchange, Prices and Economic Activity in Bulgaria

Hughes, Gordon - C.E.P.R. Discussion Papers - 1991

Bulgaria, like other socialist economies in transition, is attempting to implement an ambitious programme which combines a price reform to reduce price distortions and to liberalize pricing mechanisms, with macroeconomic stabilization to reduce the budget deficit and lower the underlying rate of...

Persistent link: https://www.econbiz.de/10005497844

A Panel Project on Purchasing Power Parity: Mean Reversion Within and Between Countries

Frankel, Jeffrey A; Rose, Andrew K - C.E.P.R. Discussion Papers - 1995

Previous time-series studies have shown evidence of mean-reversion in real exchange rates. Deviations from purchasing power parity (PPP) appear to have half-lives of approximately four years. The long samples required for statistical significance are unavailable for most currencies, however, and...

Persistent link: https://www.econbiz.de/10005498061

Is Monetary Policy in an Open Economy Fundamentally Different?

Monacelli, Tommaso - C.E.P.R. Discussion Papers - 2012

Openness per se requires optimal monetary policy to deviate from the canonical closed-economy principle of domestic price stability, even if domestic prices are the only ones to be sticky. I review this argument using a simple partial equilibrium analysis in an economy that trades in final...

Persistent link: https://www.econbiz.de/10011083335

Rose, Andrew K - C.E.P.R. Discussion Papers - 2013

In contrast to earlier recessions, the monetary regimes of many small economies have not changed in the aftermath of the global financial crisis. This is due in part to the fact that many small economies continue to use hard exchange rate fixes, a reasonably durable regime. However, most of the...

Persistent link: https://www.econbiz.de/10011083734