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A Network Model of Multilaterally Equilibrium Exchange Rates

Kireev, Aleksej P. - 2016

This paper proposes a network model of multilaterally equilibrium exchange rates. The model introduces a topological component into the exchange rate analysis, consistently taking into account simultaneous higher-order interactions among all currencies. The paper defines the currency demand...

Persistent link: https://www.econbiz.de/10012977844

External Adjustment in Oil Exporters : The Role of Fiscal Policy and the Exchange Rate

Behar, Alberto - 2016

After the decline in oil prices, many oil exporters face the need to improve their externalbalances. Special characteristics of oil exporters make the exchange rate an ineffectiveinstrument for this purpose and give fiscal policy a sizeable role. These conclusions aresupported by regression...

Persistent link: https://www.econbiz.de/10012977864

International Capital Flow Pressures

Goldberg, Linda S. - 2018

This paper presents a new measure of capital flow pressures in the form of a recast ExchangeMarket Pressure index. The measure captures pressures that materialize in actual internationalcapital flows as well as pressures that result in exchange rate adjustments. The formulation istheory-based,...

Persistent link: https://www.econbiz.de/10012924999

Macroeconomic Impact of Foreign Exchange Intervention : Some Cross-Country Empirical Findings

Jin, Zhongxia; Wang, Haobin; Zhao, Yue - 2022

Based on VAR analyses across 26 countries, we show that, although foreign exchange intervention (FXI) is effective in stabilizing the nominal exchange rate in the short run, its impacts on the real exchange rate are less significant: Limitations on nominal exchange rate flexibility may induce...

Persistent link: https://www.econbiz.de/10013302711

Destabilizing Stability? Exchange Rate Arrangements and Foreign Currency Debt

Csonto, Balazs - 2021

Emerging markets (EMs) often respond to shocks by intervening in foreign exchange (FX) markets and thus preventing full exchange rate adjustment. This response can serve to dampen the effect of shocks and increase monetary policy space but may also incentivize economic participants to increase...

Persistent link: https://www.econbiz.de/10013315118

Global Value Chains and the Exchange Rate Elasticity of Exports

Ahmed Hannan, Swarnali - 2016

This paper analyzes how the formation of Global Value Chains (GVCs) has affected the exchange rate elasticity of exports. Using a panel framework covering 46 countries over the period 1996-2012, we first find some suggestive evidence that the elasticity of real manufacturing exports to the Real...

Persistent link: https://www.econbiz.de/10012999740

Exchange Rate Fluctuations and International Portfolio Rebalancing in Thailand

Gyntelberg, Jacob - 2012

We present empirical evidence that the Thai baht's value is driven in part by investors' cross-border equity portfolio rebalancing decisions. Our results are based on comprehensive datasets of FX and stock market transactions undertaken by nonresident investors in Thailand in 2005 and 2006....

Persistent link: https://www.econbiz.de/10013098595

Global Trade and the Dollar

Gopinath, Gita - 2018

.S. dollar is a key predictor of rest-of-world aggregate trade volume and consumer/producer price inflation. A 1 percent U ….S. dollar appreciation against all other currencies in the world predicts a 0.6-0.8 percent decline within a year in the volume … of total trade between countries in the rest of the world, controlling for the global business cycle. 4) Using a novel …

Persistent link: https://www.econbiz.de/10012928628

Can Higher Reserves Help Reduce Exchange Rate Volatility?

Nowak, M. - 2021

This paper studies the role of an increase in foreign exchange reserves in reducing currency volatility for emerging market countries. The study employs a panel of 28 countries over the period 1986-2002. Several control variables are introduced in the regressions to account for other factors...

Persistent link: https://www.econbiz.de/10013211940

Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption

Vamvakidis, Athanasios - 2021

The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity of substitution (CES) between products from different countries. We investigate the validity of...

Persistent link: https://www.econbiz.de/10013212031