Overvalued and Undervalued Exchange Rates in an Equilibrium Optimizing Model 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 Overvalued and Undervalued Exchange Rates in an Equilibrium Optimizing Model PDF full book. Access full book title Overvalued and Undervalued Exchange Rates in an Equilibrium Optimizing Model by José Saul Lizondo. Download full books in PDF and EPUB format.
Author: José Saul Lizondo
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 34
Get Book Here
Book Description
For some problems it helps to think of overvalued or undervalued exchange rates as the result of unsustainable macroeconomic policies - such as undertaxation or overspending in the public sector - rather than the result of markets failing to clear or economic agents failing to behave in an optimizing manner.
Author: José Saúl Lizondo
Publisher:
ISBN:
Category :
Languages : en
Pages : 21
Get Book Here
Book Description
Author: José Saul Lizondo
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 34
Get Book Here
Book Description
For some problems it helps to think of overvalued or undervalued exchange rates as the result of unsustainable macroeconomic policies - such as undertaxation or overspending in the public sector - rather than the result of markets failing to clear or economic agents failing to behave in an optimizing manner.
Author: Jose Saul Lizondo
Publisher:
ISBN:
Category : Equilibrio economico
Languages : en
Pages : 21
Get Book Here
Book Description
Author: Mr.Angel J. Ubide
Publisher: International Monetary Fund
ISBN: 1451858736
Category : Business & Economics
Languages : en
Pages : 44
Get Book Here
Book Description
This paper presents a methodology for calculating bilateral equilibrium exchange rates for a panel of currencies in a way that guarantees global consistency. The methodology has three parts: a theoretical model that encompasses the balance of payments and the Balassa-Samuelson approaches to real exchange rate determination; an unobserved components decomposition in a cointegration framework that identifies a time-varying equilibrium real exchange rate; and an algebraic transformation that extracts bilateral equilibrium nominal rates. The results uncover that, by the start of Stage III of the European Economic and Monetary Union (EMU), the euro was significantly undervalued against the dollar and the pound, but overvalued against the yen. The paper also shows that the four major EMU currencies locked their parities with the euro at a rate close to equilibrium.
Author: Kenneth W. Clements
Publisher: Cambridge University Press
ISBN: 110701476X
Category : Business & Economics
Languages : en
Pages : 401
Get Book Here
Book Description
Discusses economic issues associated with exchange rates, commodity prices, the economic size of countries and alternatives to PPP exchange rates.
Author: Ronald MacDonald
Publisher: Springer Science & Business Media
ISBN: 9401144117
Category : Business & Economics
Languages : en
Pages : 353
Get Book Here
Book Description
How successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate? What are the determinants and dynamics of equilibrium real exchange rates? How can misalignments be measured, and what are their causes? What are the effects of specific policies upon the equilibrium exchange rate? The answers to these questions are important to academic theorists, policymakers, international bankers and investment fund managers. This volume encompasses all of the competing views of equilibrium exchange rate determination, from PPP, through other reduced form models, to the macroeconomic balance approach. This volume is essentially empirical: what do we know about exchange rates? The different econometric and theoretical approaches taken by the various authors in this volume lead to mutually consistent conclusions. This consistency gives us confidence that significant progress has been made in understanding what are the fundamental determinants of exchange rates and what are the forces operating to bring them back in line with the fundamentals.
Author: Howard J. Shatz
Publisher: World Bank Publications
ISBN:
Category : Black market in foreign exchange
Languages : en
Pages : 36
Get Book Here
Book Description
"Lessons from world experience about the consequences of exchange rate overvaluation (the frequent cause of trade crises), the consequences of trying to defend an overvalued exchange rate, and the most appropriate policies for resolving an overvaluation"--Cover.
Author: Enrique Alberola
Publisher:
ISBN:
Category :
Languages : en
Pages : 43
Get Book Here
Book Description
This paper presents a methodology for calculating bilateral equilibrium exchange rates for a panel of currencies in a way that guarantees global consistency. The methodology has three parts: a theoretical model that encompasses the balance of payments and the Balassa-Samuelson approaches to real exchange rate determination; an unobserved components decomposition in a cointegration framework that identifies a time-varying equilibrium real exchange rate; and an algebraic transformation that extracts bilateral equilibrium nominal rates. The results uncover that, by the start of Stage III of the European Economic and Monetary Union (EMU), the euro was significantly undervalued against the dollar and the pound, but overvalued against the yen. The paper also shows that the four major EMU currencies locked their parities with the euro at a rate close to equilibrium.
Author: Peter Isard
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 54
Get Book Here
Book Description
The paper describes six different methodologies that have been used to assess the equilibrium values of exchange rates and discusses their limitations. It applies several of the approaches to data for the United States as of 2006, illustrates that different approaches sometimes provide substantially different assessments, and asks which methodologies deserve the most weight in such situations. It argues that while it is generally desirable to consider the implications of several different approaches, since different approaches provide different types of perspectives, two of the methodologies seem particularly relevant for identifying threats to macroeconomic stability and growth.
Author: Megan J. Tauline
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 356
Get Book Here
Book Description
An exchange rate is the current market price for which one currency can be exchanged for another. The spot exchange rate refers to the current exchange rate whereas the forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. Exchange rates vary because of changes in the relative demand for different countries' goods and services and because national monetary and fiscal policies are inconsistent with each other. Differences in tax rates and in interest rates cause capital flows which affect a country's balance of payments and, consequently, its exchange rate. An overvalued exchange rate leads to a current account balance of payments deficit and bearish speculative capital movements; an undervalued exchange rate creates a current account surplus and an influx of capital. Volatile exchange rates and volatile interest rates coincide. This book examines important issues in the field.
