Targeting The Real Exchange Rate

Author : Mr.Guillermo Calvo
Publisher : International Monetary Fund
ISBN 13 : 1451921217
Total Pages : 50 pages
Book Rating : 4.12/5 ( download)

DOWNLOAD NOW!

Download or read book Targeting the Real Exchange Rate written by Mr.Guillermo Calvo and published by International Monetary Fund. This book was released on 1994-02-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained temporarily. This can be achieved by means of higher inflation and/or higher real interest rates, depending on the degree of capital mobility. Evidence for Brazil, Chile, and Colombia supports the model’s prediction that undervalued real exchange rates are associated with higher inflation.

Author : Carmen M. Reinhart
Publisher :
ISBN 13 :
Total Pages : 50 pages
Book Rating : 4.79/5 ( download)

DOWNLOAD NOW!

Download or read book Targeting the Real Exchange Rate written by Carmen M. Reinhart and published by . This book was released on 2006 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained temporarily. This can be achieved by means of higher inflation and/or higher real interest rates, depending on the degree of capital mobility. Evidence for Brazil, Chile, and Colombia supports the model`s prediction that undervalued real exchange rates are associated with higher inflation.

Author : Peter J. Montiel
Publisher :
ISBN 13 :
Total Pages : 54 pages
Book Rating : 4.32/5 ( download)

DOWNLOAD NOW!

Download or read book Macroeconomic Implications of Real Exchange Rate Targeting in Developing Countries written by Peter J. Montiel and published by . This book was released on 1991 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Carlos A. Végh
Publisher :
ISBN 13 :
Total Pages : 37 pages
Book Rating : 4.19/5 ( download)

DOWNLOAD NOW!

Download or read book Targeting the Real Exchange Rate written by Carlos A. Végh and published by . This book was released on 1994 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Peter Montiel
Publisher :
ISBN 13 :
Total Pages : 24 pages
Book Rating : 4.51/5 ( download)

DOWNLOAD NOW!

Download or read book Real Exchange Rate Targeting in Developing Countries written by Peter Montiel and published by . This book was released on 1993 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mr.Peter Montiel
Publisher : International Monetary Fund
ISBN 13 : 1451961014
Total Pages : 25 pages
Book Rating : 4.10/5 ( download)

DOWNLOAD NOW!

Download or read book Real Exchange Rate Targeting Under Capital Controls written by Mr.Peter Montiel and published by International Monetary Fund. This book was released on 1991-07-01 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the issue of whether the money supply can serve as a nominal anchor for the domestic price level under real exchange rate targeting. When capital controls are perfect so that there is complete separation between official and unofficial markets for foreign exchange, the domestic inflation rate can be stabilized, but only at the expense of a widening gap between official and parallel market exchange rates. When cross - transactions between the two markets are permitted, the steady state of the model is identical to that of a model without capital controls and, hence, the money supply cannot serve as a nominal anchor for the price level in the long run. If capital controls are nevertheless maintained temporarily, and are known to be temporary, targeting the money supply fails to stabilize the rate of inflation even in the short run.

Author : Mr.José Saúl Lizondo
Publisher : International Monetary Fund
ISBN 13 : 1451845626
Total Pages : 30 pages
Book Rating : 4.24/5 ( download)

DOWNLOAD NOW!

Download or read book Real Exchange Rate Targeting Under Imperfect Asset Substitutability written by Mr.José Saúl Lizondo and published by International Monetary Fund. This book was released on 1993-04-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of an economy that uses nominal exchange rate policy to keep the real exchange rate constant at a certain target level, under imperfect asset substitutability. The paper discusses the determinants of inflation under such a policy, and examines the consequences of exogenous and policy-induced shocks on inflation, the external accounts, and the fiscal accounts. The shocks considered include changes in the real exchange rate target, changes in fiscal policy, changes in foreign interest rates, and open market sales of public sector domestic bonds.

Author : Mr. Marco Airaudo
Publisher : International Monetary Fund
ISBN 13 : 1475523165
Total Pages : 65 pages
Book Rating : 4.64/5 ( download)

DOWNLOAD NOW!

Download or read book Inflation Targeting and Exchange Rate Management In Less Developed Countries written by Mr. Marco Airaudo and published by International Monetary Fund. This book was released on 2016-03-08 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.

Author : P. J. Montiel
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.74/5 ( download)

DOWNLOAD NOW!

Download or read book Real Exchange Rate Targeting in Developing Countries written by P. J. Montiel and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mr.Marco Airaudo
Publisher : International Monetary Fund
ISBN 13 : 1513567438
Total Pages : 65 pages
Book Rating : 4.33/5 ( download)

DOWNLOAD NOW!

Download or read book Inflation Targeting and Exchange Rate Management In Less Developed Countries written by Mr.Marco Airaudo and published by International Monetary Fund. This book was released on 2016-03-08 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.