Listing 1 - 10 of 18 | << page >> |
Sort by
|
Choose an application
This paper compares the experience with exchange-rate–based stabilization (ERBS) of four Western European countries with that of high-inflation developing countries. In general, the behavior of key macroeconomic variables—inflation, output, demand, the real exchange rate and the current account—in the four countries examined did not correspond to the pattern observed in developing countries, although some resemblance to this pattern could be found in Italy in 1987–92 and Greece in 1994–96. The experience with ERBS in Western Europe highlights the importance of incomes policy as an ingredient of a successful stabilization program and shows that the adoption of a looser anchor does not necessarily reduce the output cost of disinflation.
Foreign Exchange --- Inflation --- Macroeconomics --- Price Level --- Deflation --- Open Economy Macroeconomics --- Fiscal Policy --- Currency --- Foreign exchange --- Exchange rates --- Real exchange rates --- Fiscal consolidation --- Disinflation --- Prices --- Fiscal policy --- Italy
Choose an application
This paper creates an index of capital controls to analyze the determinants of capital flows to Brazil, accounting for the endogeneity of capital controls by considering a government that sets controls in response to capital flows. It finds that the government reacts strongly to capital flows by increasing controls on inflows during booms and relaxing them in moments of distress. The paper estimates a vector autoregression with capital flows, controls, and interest differentials. It shows that controls have been temporarily effective in altering levels and composition of capital flows but have had no sustained effects in the long run.
Exports and Imports --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- International Investment --- Long-term Capital Movements --- International economics --- Capital flows --- Capital controls --- Capital inflows --- Capital outflows --- Private capital flows --- Balance of payments --- Capital movements --- Brazil
Choose an application
This paper investigates the consequences of exchange rate volatility on the variability of export prices and quantities in the presence of market segmentation and pricing to market. Firms stabilize destination prices through systematic price discrimination, limiting the degree of exchange rate pass-through. Consequently, the variability of exchange rates is not fully translated into prices and quantities at the point of destination. Empirical estimates using aggregate price data for the G-7 industrial countries show incomplete pass-through in variances, with considerable variation among these countries. U.S. industry specific data also indicate incomplete pass-through in most cases, with considerable variation across industries.
Foreign Exchange --- Macroeconomics --- Money and Monetary Policy --- Price Level --- Inflation --- Deflation --- Open Economy Macroeconomics --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Currency --- Foreign exchange --- Monetary economics --- Exchange rates --- Export prices --- Exchange rate adjustments --- Import prices --- Currencies --- Exports --- Imports --- Money --- United States
Choose an application
This paper provides some new empirical perspectives on the relationship between international trade and macroeconomic fluctuations in industrial economies. First, a comprehensive set of stylized facts concerning fluctuations in trade variables and their determinants are presented. A measure of the quantitative importance of international trade for the propagation of domestic business cycles is then constructed, focusing on the role of external trade as a catalyst for cyclical recoveries. Finally, structural vector autoregression models are used to characterize the joint dynamics of output, exchange rates, and trade variables in response to different types of macroeconomic shocks.
Exports and Imports --- Foreign Exchange --- Macroeconomics --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- Empirical Studies of Trade --- Trade: General --- Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) --- International economics --- Currency --- Foreign exchange --- Economic growth --- Trade balance --- Exports --- Real exchange rates --- Business cycles --- Exchange rates --- International trade --- Balance of trade --- United States
Choose an application
Import and export stability is examined under two alternative nominal exchange rate anchors, the U.S. dollar and the SDR. Stability under the two pegs depends critically on import and export elasticity with respect to exchange rates. The implications of import and export elasticity for an optimal currency basket are also explored. The elasticity estimates for the GCC countries suggest that the SDR peg may not outperform the dollar peg in improving external stability. Nevertheless, switching to some other nominal exchange rate anchor may improve external stability, a possibility that remains to be explored.
Exports and Imports --- Foreign Exchange --- Money and Monetary Policy --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- Trade: General --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Empirical Studies of Trade --- International economics --- Monetary economics --- Currency --- Foreign exchange --- Imports --- Exports --- Currencies --- Exchange rates --- Trade balance --- International trade --- Money --- Balance of trade --- Kuwait
Choose an application
Applying a consumption-smoothing model to five ASEAN countries reveals that excessive private consumption has not tended to characterize their widening external imbalances in recent years, except to a small degree in Indonesia and Malaysia. Beyond consumption smoothing, however, a number of factors influence the desirability of running large external deficits, including the level and composition of external liabilities, the flexibility of macroeconomic policies, and the health of banking systems. Even when the current account deficit appears sustainable, there is a case to reduce them in order to lower the risks arising from such factors.
Exports and Imports --- Macroeconomics --- Macroeconomics: Consumption --- Saving --- Wealth --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- Economywide Country Studies: Asia including Middle East --- Aggregate Factor Income Distribution --- International economics --- Current account --- Current account deficits --- Consumption --- Current account balance --- Consumption distribution --- Balance of payments --- National accounts --- Economics --- Income distribution --- Malaysia
Choose an application
A model reflecting the monetary approach to the balance of payments was developed in the International Monetary Fund (IMF) in the 1950s. Its purpose was to integrate monetary, income, and balance of payments analysis, and it became the basis of the conditionality applied to IMF credits. Extremely simple, with primary focus on the balance of payments effects of credit creation by the banking system, the model has retained its usefulness for policy purposes over time, as it was adapted to changes in member countries’ priorities and in the international monetary system, in particular the disappearance of the par value system.
Foreign Exchange --- Money and Monetary Policy --- Multiple or Simultaneous Equation Models --- Multiple Variables: General --- Monetary Policy --- Open Economy Macroeconomics --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Monetary economics --- Currency --- Foreign exchange --- Credit --- Monetary base --- Exchange rates --- Domestic credit --- Currencies --- Money --- Money supply --- Sri Lanka
Choose an application
This paper provides a new argument for “shock” versus “gradualism” in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as an unanticipated shock, or gradually over a preannounced length of time. The gradualist policy introduces a distortion in consumption-accumulation decisions and generates welfare costs. And if the gradual change is extended over “too long” a period, these costs may exceed the long-run benefits of liberalization.
Investments: Commodities --- Exports and Imports --- Macroeconomics --- Taxation --- Open Economy Macroeconomics --- Trade Policy --- International Trade Organizations --- Macroeconomics: Consumption --- Saving --- Wealth --- International Investment --- Long-term Capital Movements --- Commodity Markets --- Public finance & taxation --- International economics --- Investment & securities --- Consumption --- Tariffs --- Trade liberalization --- Foreign assets --- Commodities --- Economics --- Tariff --- Commercial policy --- Investments, Foreign --- Commercial products
Choose an application
It is well known that the long-run viability of a fixed exchange rate regime imposes constraints on monetary policy. This paper shows that, in a model with forward-looking agents, short-run viability imposes a fiscal constraint. When policy change, which destroys long-run viability, also violates the fiscal constraint, collapse is instantaneous. Delayed predictable collapse requires satisfaction of the fiscal constraint.
Banks and Banking --- Foreign Exchange --- Macroeconomics --- Money and Monetary Policy --- International Monetary Arrangements and Institutions --- Open Economy Macroeconomics --- International Policy Coordination and Transmission --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Monetary Policy --- Macroeconomics: Consumption --- Saving --- Wealth --- Currency --- Foreign exchange --- Monetary economics --- Banking --- Exchange rates --- Domestic credit --- Conventional peg --- International reserves --- Consumption --- Credit --- Foreign exchange reserves --- Economics
Choose an application
This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how changes in the federal fund rate affect gross job flows in the U.S. manufacturing industry, and it finds evidence of asymmetry. Tight policy increases job destruction and reduces net employment changes. Conversely, easy policy appears ineffective in stimulating job creation.
Labor --- Production and Operations Management --- Open Economy Macroeconomics --- Foreign Exchange --- Labor Demand --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Macroeconomics: Production --- Unemployment: Models, Duration, Incidence, and Job Search --- Labour --- income economics --- Macroeconomics --- Job creation --- Job destruction --- Productivity --- Production --- Labor market --- Economic theory --- Industrial productivity --- United States --- Income economics
Listing 1 - 10 of 18 | << page >> |
Sort by
|