1,721,444 research outputs found
A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform
Full text linkThe Determinants of the Choice between Fixed and Flexible Exchange-Rate Regimes
Full text linkIn recent years, analysts and policy makers alike have been evaluating the nexus between exchange rates and macroeconomic stability. Among the most important questions is why have some countries adopted rigid, including fixed, exchange-rate paper addresses this question from a political economy perspective both theoretically and empirically. The model assumes that the monetary authority minimizes a quadratic loss function that captures the trade-off between infla- tion and unemployment. This framework is initially applied to the case where monetary authorities must choose between a (permanently) fixed and a flexible exchange-rate regime. In choosing the regime it is assumed authorities compare the expected losses under each scenario. The model is subsequently extended extended to cover the somewhat more complicated case where the authoriities must choose between fixed-but-adjustable and flexible exchange-rate regimes. In this latter case, potential political costs of abandoningithe pegged rate are taken into account. In the empirical section, an unbalanced panel data set of 63 countries from 1980-1992 is used to estimate a series of probit models, with a binary exchange-rate regime index as the dependent variable. Among the most important explanatory variables were measures of countries' historical degree of political instability, measures of the probability of abandoning pegged rates, and variables related to the relative importance of real (unemployment) targets in the preferences of monetary authorities. The regression results support the political economy approach developed in the theoretical discussion.
The end of large current account deficits : 1970-2002 : are there lessons for the United States?
Full text linkGreenspan, Alan ; Interest rates ; Deficit financing
The Relationship Between Exchange Rates and Inflation Targeting Revisited
Full text linkThis paper deals with the relationship between inflation targeting and exchange rates. I address three specific issues: first, I analyze the effectiveness of nominal exchange rates as shock absorbers in countries with inflation targeting. This issue is closely related to the magnitude of the “passthrough” coefficient. Second, I investigate whether exchange rate volatility is different in countries with an inflation targeting regime than in countries with alternative monetary policy arrangements. And third, I discuss whether the exchange rate should play a role in determining the monetary policy stance under inflation targeting. An alternative way of posing this question is whether the exchange rate should have an independent role in an open economy Taylor rule.
Sebastian Edwards. Real Exchange Rates, Devaluation, and Adjustment. Exchange Rate Policy in Developing Countries
No full textJoly Hervé. Sebastian Edwards. Real Exchange Rates, Devaluation, and Adjustment. Exchange Rate Policy in Developing Countries. In: Politique étrangère, n°2 - 1992 - 57ᵉannée. pp. 433-435
Reseña del libro The Economics of Crime: Lessons for and from Latin America, por Rafael Di Tella, Sebastian Edwards y Ernesto Schargrodsky
No full textReseña del libro The Economics of Crime: Lessons for and from Latin America, por Rafael Di Tella, Sebastian Edwards y Ernesto Schargrodsk
Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences
Full text linkIndia's Approach to Capital Account Liberalization
Full text linkIn this paper, I analyze India's approach to capital account liberalization through the lens of the new literature on financial globalization. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its vulnerability to crises. By now, the capital account has become quite open and reversing this is not a viable option. Moreover, the remaining capital controls are rapidly becoming ineffective, making the debate about capital controls rather moot. Managing de facto financial integration into international capital markets and aligning domestic macroeconomic policies in a manner that maximizes the indirect benefits and reduces the risks is the key challenge now facing India's policymakers on this front.India, international financial integration, capital controls, capital flows
Some New Perspectives on India's Approach to Capital Account Liberalization
Full text linkIn this paper, I analyze India's approach to capital account liberalization through the lens of the new literature on financial globalization. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its vulnerability to crises. By now, the capital account has become quite open and reversing this is not a viable option. Moreover, the remaining capital controls are rapidly becoming ineffective, making the debate about capital controls rather moot. Managing de facto financial integration into international capital markets and aligning domestic macroeconomic policies in a manner that maximizes the indirect benefits and reduces the risks is the key challenge now facing India's policymakers on this front.
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