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A Note on the Volatilities of the Interest Rate and the Exchange Rate Under Different Monetary Policy Instruments : Mexico 1998-2008

Benavides, Guillermo - 2010

multiple structural changes, we document that both volatilities decreased around the time Banco de Mexico started the … transition from the former to the latter. With respect to the volatility transmission from interest rates to exchange rates and …

Persistent link: https://www.econbiz.de/10013144183

Interest rate rules, exchange market pressure, and successful exchange rate management

Klaassen, Franc; Mavromatis, Kostas - 2016

Central banks with an exchange rate objective set the interest rate in response to what they call "pressure." Instead, existing interest rate rules rely on the exchange rate minus its target. To stay closer to actual policy, we introduce a rule that uses exchange market pressure (EMP), the...

Persistent link: https://www.econbiz.de/10011479735

Monetary policy and the exchange rate in Norway

Mæhlum, Mathis - 2025

I estimate how monetary policy affects the exchange rate in Norway using a local projection instrumental variables (LP-IV) framework with high-frequency monetary policy surprises as instruments. I find that a surprise increase in the Norwegian policy interest rate leads to an immediate...

Persistent link: https://www.econbiz.de/10015396868

Exchange Rate Dynamics Under Alternative Optimal Interest Rate Rules

Binici, Mahir - 2013

We explore the role of interest rate policy in the exchange rate determination process. Specifically, we derive exchange rate equations from interest rate rules that are theoretically optimal under a few alternative settings. The exchange rate equation depends on its underlying interest rate...

Persistent link: https://www.econbiz.de/10013092385

Exchange Rate Dynamics Under Alternative Optimal Interest Rate Rules

Binici, Mahir - 2012

Persistent link: https://www.econbiz.de/10013113128

Interest Rate Rules, Exchange Market Pressure, and Successful Exchange Rate Management

Klaassen, Franc - 2016

Central banks with an exchange rate objective set the interest rate in response to what they call ''pressure.'' Instead, existing interest rate rules rely on the exchange rate minus its target. To stay closer to actual policy, we introduce a rule that uses exchange market pressure (EMP), the...

Persistent link: https://www.econbiz.de/10012993375

Monetary policy response on exchange rate volatility in Indonesia

Syarifuddin, Ferry; Achsani, Noer Azam; Hakim, Dedi Budiman - In: Journal of contemporary economic and business issues 1 (2014) 2, pp. 35-54

intervention to stabilize the exchange rate. In this study, USD/IDR volatility is investigated using TGARCH approach. The result … reveals that, USD/IDR volatility in Indonesia is obviously persistent. This study also presents the outcomes of effectiveness …

Persistent link: https://www.econbiz.de/10011533477

Home Bias, Exchange Rate Disconnect, and Optimal Exchange Rate Policy

Wang, Jian - 2015

in consumption is important to duplicate the exchange rate volatility and exchange rate disconnect documented in the data … volatility while leaving the volatility of real macroeconomic variables, such as GDP, almost untouched. The model predicts the … volatility of the real exchange rate relative to that of GDP increases with the extent of home bias. This relation is strongly …

Persistent link: https://www.econbiz.de/10012707889

Interest rate and exchange rate volatility spillovers : multiscale perspective of monetary policy transmission in Ghana

Akosah, Nana Kwame; Alagidede, Paul; Schaling, Eric - In: Journal of central banking theory and practice 9 (2020) 1, pp. 135-167

Persistent link: https://www.econbiz.de/10012167220

The zero-interest-rate and the role of the exchange rate for monetary policy in Japan

Coenen, Günter; Wieland, Volker - 2003

In this paper we study the role of the exchange rate in conducting monetary policy in an economy with near-zero nominal interest rates as experienced in Japan since the mid-1990s. Our analysis is based on an estimated model of Japan, the United States and the euro area with rational expectations...

Persistent link: https://www.econbiz.de/10009765351