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Financial Dollarization and European Union Membership

Neanidis, Kyriakos C. - CESifo - 2010

convergence of exchange rates to the euro and the subsequent anticipation for a lower currency risk, which diminishes the cost of …

Persistent link: https://www.econbiz.de/10008572484

The Impact of Yuan Internationalization on the Euro-Dollar Exchange Rate

Benassy-Quere, Agnes; Forouheshfar, Yeganeh - CESifo - 2013

the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the … euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the …

Persistent link: https://www.econbiz.de/10010877786

Has the Euro Affected the Choice of Invoicing Currency?

Ligthart, Jenny; Werner, Sebastian E. V. - CESifo - 2010

We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our … home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the … role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above …

Persistent link: https://www.econbiz.de/10008533991

The Role of Monetary Aggregates in the Policy Analysis of the Swiss National Bank

Kirchgässner, Gebhard; Wolters, Jürgen - CESifo - 2010

Using Swiss data from 1983 to 2008, this paper investigates whether growth rates of the different measures of the quantity of money and or excess money can be used to forecast inflation. After a preliminary data analysis, money demand relations are specified, estimated and tested. Then,...

Persistent link: https://www.econbiz.de/10008533982

The Quantity Theory of Money: An Assessment of its Real Linchpin Prediction

Hillinger, Claude; Süßmuth, Bernd - CESifo - 2010

This study approaches the Quantity Theory of Money at a conceptual level, asking how it can be most reasonably interpreted and quantitatively assessed. The resulting approach is straightforward. Unlike studies relying on other methods we find evidence of its linchpin prediction that is not...

Persistent link: https://www.econbiz.de/10008534035

The Quantity Theory of Money and Friedmanian Monetary Policy: An Empirical Investigation

Hillinger, Claude; Süssmuth, Bernd; Sunder, Marco - CESifo - 2012

We introduce an approach for the empirical study of the quantity theory of money (QTM) that is novel both with respect to the specific steps taken as well as the general methodology employed. Empirical studies of the QTM have focused directly on the relationship between the rate of change of the...

Persistent link: https://www.econbiz.de/10009653372

China’s Exchange Rate Impasse and the Weak U.S. Dollar

McKinnon, Ronald Ian; Schnabl, Gunther - CESifo - 2008

Since 2004, China has been backed into a situation where the renminbi is expected to go ever higher against the dollar, and this one-way bet has led to a loss of domestic monetary control. Combined with a more general flight from the U.S. dollar, the resulting monetary explosion in China...

Persistent link: https://www.econbiz.de/10005405730

Exchange Rates Dynamics in a Target Zone – A Heterogeneous Expectations Approach

Bauer, Christian; Grauwe, Paul De; Reitz, Stefan - CESifo - 2007

The target zone model of Krugman (1991) has failed empirically. In this paper, we develop a model of the exchange rate with heterogeneous agents in a free floating and a target zone regime. We show that this simple model mimics the empirical puzzles of exchange rates: excessive volatility, fat...

Persistent link: https://www.econbiz.de/10005405760

Purchasing Power Parity for Developing and Developed Countries. What can we Learn from Non-Stationary Panel Data Models?

Drine, Imed; Rault, Christophe - CESifo - 2008

The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) and generalized by Banerjee and Carrion-i-Silvestre (2006) to examine the robustness of the PPP concept for a sample of 80 developed and developing countries. We find that strong...

Persistent link: https://www.econbiz.de/10005405826

Real Exchange Rates in Small Open OECD and Transition Economies: Comparing Apples with Oranges?

Egert, Balazs; Lommatzsch, Kirsten; Lahrèche-Révil, Amina - CESifo - 2007

We find that productivity gains in tradables cause an appreciation of the real exchange rate via both tradable and nontradable prices in the CEE-5 and have no affect in the Baltic countries, while they lead to a depreciation of the real exchange rate of tradables in OECD economies that...

Persistent link: https://www.econbiz.de/10005405897