Flexible exchange rates: The better option?
Living with flexible exchange rates:
... the exchange rate, what still remains open is the interpretation of this ...and exchange rate pass-through among emerging market ...of exchange rate management could be interpreted not necessarily as ...
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Flexible Exchange Rates and Interdependence
... A high price elasticity thus implies a longrun increase in wages to accommodate the reduced demand for real balances and therefore exchange rate overshooting as shown in Figure 3.. A hig[r] ...
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Openness and the case for flexible exchange rates
... of exchange rates as a substitute for nominal price exibility in fostering relative price ...the exchange rate does not play the stabilizing role envisioned by the received ...limit exchange ...
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Flexible exchange rates and insulation: A reexamination
... every instant in time by the flexible exchange rate; the.. transmission of foreign income fluctuations through trade sur- pluses or deficits thus becomes impossible. 95) pointed out that[r] ...
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"Fixed and Flexible Exchange Rates and Currency Sovereignty"
... fixed exchange rates, we briefly look at the recent Argentinean and European ...more flexible exchange rates would have likely produced a more viable and dynamic European economic ...
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The Case for Flexible Exchange Rates in a Great Recession
... fixed exchange rate ...pursues flexible exchange ...real rates is less rather than more accommodative; and the fiscal multiplier is correspondingly ...
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Price Stability and the Case for Flexible Exchange Rates
... is conditional on the ability of the monetary authorities to design monetary policy optimally, rather than rely on some simple rules. This may be the- oretically interesting but seems to be of limited practical ...
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The case for flexible exchange rates in a great recession
... 5 Conclusion The risk of large global shocks causing once again the world to fall in a great recession is a challenge to policymaking in small open economies, which may be particularly vulnerable to external shocks. In ...
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Conference Summary: Revisiting the Case for Flexible Exchange Rates
... Canada’s exchange rate equation probably reflects the fact that the ...foreign exchange market is often in the form of changes in monetary ...interest rates are incorporated into the Bank’s equation, ...
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The case for flexible exchange rates after the Great Recession
... the exchange-rate regime on the type and propagation of large contractionary ...credible exchange rate target can enhance the policymaker’s ability to pursue macroeconomic stability when the risk of such ...
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Inflation, Flexible Exchange Rates, and the Natural Rate of Unemployment
... The inflation equation is the same as before, but equations are added that explain changes in the unemployment rate and the productivity deviation as a function of current and lagged cha[r] ...
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The middle way between flexible and fixed exchange rates
... of exchange rate regime has been hollowed out to one of the two corners: indeed, Larry Summers worked inter alia on "noise traders" (De Long et al 1987, 1988), which is the type of model that provides the ...
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From fixed to flexible exchange rates: the case of india
... (monthly) exchange rate, ID 1 and SD 1 are the intercept and slope dummies for devaluation (July 1991) and the figures in brackets are the t values 9 ...nominal exchange rate series reveals the following: ...
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Spillover Effects of Fiscal Policy Under Flexible Exchange Rates
... PTM goods tends to reinforce the prosper-thy-neighbor effect while a stronger home bias in consumption reduces the positive spillover of expansive domestic fiscal policy. 5 CONCLUDING REMARKS This paper has analyzed the ...
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Energy and Growth under Flexible Exchange Rates: A Simulation Study
... The consumption demand in the oil-producing home economy falls less than in the foreign economy, and given that output is fixed in the short-run, its real exchange rate appreciates 1.1 p[r] ...
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Some Aspects of the Canadian Experience with Flexible Exchange Rates in the 1970s
... A three—sector model comprising non—tradable goods, resource—based tradable goods and non resource—based tradable goods, is used to study the effects of changes in raw material prices, d[r] ...
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Exchange Rate Uncertainty and Labour Market Adjustment under Fixed and Flexible Exchange Rates
... alternative exchange rate ...by exchange rate ...appropriate exchange rate regime has mushroomed. To date, however, exchange rate regimes and labour adjustment decisions have mainly been ...
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Exchange rates. Exchange rates
... of flexible exchange rates decreased international trade? The evidence shows that international trade has actually grown more quickly as the world has shifted to flexible exchange ...
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Interactions Between Monetary and Fiscal Policy under Flexible Exchange Rates
... real exchange rate depreciation this induces allows them to accumulate net foreign assets and maintain consumption at a higher level than their neighbours for a sustained ...interest rates in both ...
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Flexible Exchange Rates and Traded Goods Prices: A Theory of the Short-Run
... Exchange Rates and Trade Prices: A Short-Run Theory 11 differ from the elasticity with respect to the exchange rate, even though in theory they should be ...by exchange rate movements that ...
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