Exchange Rate Bands and Shifts in the Stabilization Policy Regime PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Exchange Rate Bands and Shifts in the Stabilization Policy Regime PDF full book. Access full book title Exchange Rate Bands and Shifts in the Stabilization Policy Regime by Mr.Alberto Carrasquilla. Download full books in PDF and EPUB format.
Author: Mr.Alberto Carrasquilla
Publisher: International Monetary Fund
ISBN: 1451846185
Category : Business & Economics
Languages : en
Pages : 40
Get Book Here
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.Alberto Carrasquilla
Publisher: International Monetary Fund
ISBN: 1451846185
Category : Business & Economics
Languages : en
Pages : 40
Get Book Here
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: Fouad Sabry
Publisher: One Billion Knowledgeable
ISBN:
Category : Business & Economics
Languages : en
Pages : 330
Get Book Here
Book Description
What is Stabilization Policy In macroeconomics, a stabilization policy is a package or set of measures introduced to stabilize a financial system or economy. The term can refer to policies in two distinct sets of circumstances: business cycle stabilization or credit cycle stabilization. In either case, it is a form of discretionary policy. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Stabilization policy Chapter 2: International Monetary Fund Chapter 3: Fiscal policy Chapter 4: Exchange rate Chapter 5: Economic policy Chapter 6: 1997 Asian financial crisis Chapter 7: Deficit spending Chapter 8: Monetary policy Chapter 9: External debt Chapter 10: Austerity Chapter 11: Foreign exchange reserves Chapter 12: Impossible trinity Chapter 13: Structural adjustment Chapter 14: Optimum currency area Chapter 15: Economic stability Chapter 16: Adolfo Diz Chapter 17: Guillermo Calvo Chapter 18: Sudden stop (economics) Chapter 19: Fear of floating Chapter 20: South Korea and the International Monetary Fund Chapter 21: South Korean International Monetary Fund Agreement, 1997 (II) Answering the public top questions about stabilization policy. (III) Real world examples for the usage of stabilization policy in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Stabilization Policy.
Author: Roel M. W. J. Beetsma
Publisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 48
Get Book Here
Book Description
Author: Guillermo E. Perry
Publisher: World Bank Publications
ISBN: 0821370855
Category : Business & Economics
Languages : en
Pages : 354
Get Book Here
Book Description
Fiscal policy in Latin America has been guided primarily by short-term liquidity targets whose observance was taken as the main exponent of fiscal prudence, with attention focused almost exclusively on the levels of public debt and the cash deficit. Very little attention was paid to the effects of fiscal policy on growth and on macroeconomic volatility over the cycle. Important issues such as the composition of public expenditures (and its effects on growth), the ability of fiscal policy to stabilize cyclical fluctuations, and the currency composition of public debt were largely neglected. As a result, fiscal policy has often amplified cyclical volatility and dampened growth. 'Fiscal Policy, Stabilization, and Growth' explores the conduct of fiscal policy in Latin America and its consequences for macroeconomic stability and long-term growth. In particular, the book highlights the procyclical and anti-investment biases embedded in the region's fiscal policies, explores their causes and macroeconomic consequences, and asesses their possible solutions.
Author: Minot, Nicholas
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 51
Get Book Here
Book Description
Rice plays a central role in the diet in Bangladesh and as a source of income for farmers. Although Bangladesh has largely liberalized international trade in rice, it maintains a public food distribution system to stablize prices, distributing an average of 2 million tons of rice per year at a cost of almost US$ 800 million per year. This study explores whether alternative policies could achieve similar stabilization at a lower cost. It uses a stochastic spatial-equilibrium model of rice markets to simulate monthly prices in eight regions of the country. Stochastic shocks are used to simulate fluctuations in regional production, replicating historical patterns at the region-season level, as well as inter-regional correlation in production shocks. It also simulates fluctuation in world rice prices, mimicking the mean, variance, and serial correlation of historical wholesale prices of rice in Delhi. Public procurement and distribution follow historic averages by month and region. Private storage is represented by a simplified version of rational expectations models, in which net storage is a non-linear function of availability in the previous month. One set of simulations tests alternative levels of distribution, finding that cutting distribution to 1 million tons would have minimal effects on the level of rice price stability. Another set of simulations tested different import tariff levels, including the baseline rate of 25%1. We find that lower tariffs result in both lower rice prices and less price instability, as world rice prices tend to be more stable than local prices. Simulating a buffer stock with different price bands shows that a narrow band can achieve high price stability but at a high fiscal cost. A 20 T/kg (USD 0.26/kg) price band generates similar price stabilization at a lower cost compared to current policy. However, it is difficult to set the “right” purchase and sale price, and many simulations result in exhausting reserves or reaching warehouse capacity. An adaptive buffer stock, in which the price is adjusted as the stock runs too low or too high, solves some of these problems. In general, the study finds that current procurement and distribution patterns do not match well with the regional and monthly patterns of surplus and deficit, possibly reflecting multiple and conflicting goals of the public food distribution system.
Author: John Williamson
Publisher: Peterson Institute
ISBN: 9780881322316
Category : Business & Economics
Languages : en
Pages : 204
Get Book Here
Book Description
This study examines in detail the experiences of three countries that have in recent years operated exchange rate systems of "crawling bands," similar in spirit to the target zones that the author has recommended in the past. Williamson compares the succcessful experiences of 3 countries that have operated crawling bands with 15 similar countries and concludes that the crawling band exchange-rate policy has been an important element in their success. The study includes a manual for managing crawling bands.
Author: Karen K. Lewis
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 48
Get Book Here
Book Description
This paper describes a class of stochastic stabilizing policies within asset price regimes that can be easily incorporated into the framework of regime switching recently proposed by Froot and Obstfeld (1991). In contrast to previous treatments of market-driven fundamentals within the regime, authorities stochastically counteract movements in these fundamentals before asset prices reach boundary points. The paper describes how the stabilizing intra-regime intervention policies can be used to characterize the behavior of monetary authorities before fixing an exchange rate, as in the case studied by Flood and Garber (1983). An intervention policy within target zone bands consistent with empirical evidence is also a member of this class of policies. Furthermore, the stylized features of these intervention policies may be matched to actual data in a natural way.
Author: Avishay Braverman
Publisher: World Bank Publications
ISBN:
Category : Analisis costo-beneficio
Languages : en
Pages : 45
Get Book Here
Book Description
Author: Jonathan Roger Coleman
Publisher: World Bank Publications
ISBN:
Category : Agricultural prices
Languages : en
Pages : 51
Get Book Here
Book Description
Of the stabilization schemes proposed to ease the liberalization of quota-driven, price-managed domestic markets for several "essential" commodities, the wide price band - based on a moving average of nominal border prices - is the least offensive. It provides benefits when price movements are extreme but preserves average international price signals.
Author: Joffrey Rodrigo Mendoza
Publisher:
ISBN:
Category :
Languages : en
Pages : 522
Get Book Here
Book Description
