Macroeconomic Stabilization and Intervention Policy Under an Exchange Rate Band PDF Download
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Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 48
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Book Description
Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 48
Get Book Here
Book Description
Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category :
Languages : es
Pages : 28
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Book Description
Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 28
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Book Description
Author: Roel Maria Wilhelmus Jozef Beetsma
Publisher:
ISBN:
Category :
Languages : en
Pages : 29
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Book Description
Author: Mr.Alberto Carrasquilla
Publisher: International Monetary Fund
ISBN: 1451846185
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
After 25 years, the Colombian authorities decided to abandon the crawling peg exchange rate policy and implement a regime of nominal exchange rate bands. Initial conditions in Colombia contrast sharply with those of other cases in which bands were part of an ongoing effort to reduce high inflation. This paper argues that the change in regime was motivated by a change in policy objectives. Starting from a policy whose rationale implied targeting stable inflation, a simple analytical model of optimal policy is presented; initial results with the new regime suggest that inflation is now considered costlier and that policy implementation has been consistent with this new view.
Author: Mr.Daniel Gros
Publisher: International Monetary Fund
ISBN: 1451971648
Category : Business & Economics
Languages : en
Pages : 24
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Book Description
This paper discusses stabilization policy in the presence of bands for the exchange rate. The bands are modelled in a probabilistic sense: monetary policy has to be such as to keep the probability, that the exchange rate stays within the bands, above a certain threshold. In contrast to other models of target zones, this formulation leads to a linear decision rule and implies sizeable intra-marginal interventions, which corresponds to the experience in the EMS. The extent to which short-run monetary policy is constraint by the bands depends on its own long-run components and on fiscal policy.
Author: John Williamson
Publisher: Columbia University Press
ISBN: 0881324795
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
Growing global imbalances threaten to induce a collapse of the dollar, which could in turn produce a severe recession in the rest of the world. This crisis could force countries to say "never again" and search for a system to prevent similar disasters. The system that could do so is a reference rate system—where countries' authorities are forbidden from intervening in order to push the exchange rate too far from what is termed the "reference rate." It could help a country's authorities manage its exchange rate to avoid large misalignments, assist the private sector in forming more dependable expectations of future exchange rates and thus to manage their businesses more efficiently in a world of floating exchange rates, and aid the International Monetary Fund in designing and managing an effective system of multilateral surveillance. The world economy would function better as a result, with less chance of the global imbalances leading to a world recession.
Author: Mrs.Gilda Fernandez
Publisher: International Monetary Fund
ISBN: 1451854935
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
This paper identifies the institutional and operational requisites for transitions to floating exchange rate regimes. In particular, it explores key issues underlying the transition, including developing a deep and liquid foreign exchange market, formulating intervention policies consistent with the new regime, establishing an alternative nominal anchor in the context of a new monetary policy framework, and building the capacity of market participants to manage exchange rate risks and of supervisory authorities to regulate and monitor them. It also assesses the factors that influence the pace of exit and the appropriate sequencing of exchange rate flexibility and capital account liberalization.
Author: Romain Lafarguette
Publisher: International Monetary Fund
ISBN: 1513569406
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.
Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
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Book Description
