Topic
Currency
About: Currency is a research topic. Over the lifetime, 26697 publications have been published within this topic receiving 485370 citations. The topic is also known as: monetary unit & unit of money.
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Posted Content•
TL;DR: In this article, the authors argue that the RMB is significantly undervalued and that China has been "manipulating" its currency, contrary to the IMF rules of the game.
Abstract: In this paper the author argues that China's exchange rate policy is seriously flawed given its current macroeconomic circumstances and its longer-term policy objectives. The main conclusions are the following: (i) the RMB is significantly under-valued; (ii) China has been "manipulating" its currency, contrary to the IMF rules of the game; (iii) it is in China's own interest, as well as in the interest of the international community, for China to initiate an appreciation of the RMB soon; and (iv) China should neither stand pat with its existing currency regime nor opt for a freely floating RMB and completely open capital markets. Instead, China should undertake a "two step" currency reform. Step one would involve a switch from a unitary peg to the US dollar to a basket peg, a 15-25 percent appreciation of the RMB, and wider margins around the new peg. Existing controls on China's capital outflows would be either maintained or liberalized only marginally, at least in the short run. Step two, to be implemented later when China's banking system is considerably stronger than it is today, would involve a transition to a "managed float," along with a significant liberalization of China's capital outflows.
119 citations
Journal Article•
TL;DR: The authors compared the macroeconomic performance of countries with currency boards to those with other forms of pegged exchange rate regime and found that currency boards are associated with better inflation performance, even allowing for potential endogeneity of the choice of regime.
Abstract: The growing integration of world capital markets has made it fashionable to argue that only extreme exchange rate regimes are sustainable. Short of adopting a common currency, currency board arrangements represent the most extreme form of exchange rate peg. This paper compares the macroeconomic performance of countries with currency boards to those with other forms of pegged exchange rate regime. Currency boards are indeed associated with better inflation performance, even allowing for potential endogeneity of the choice of regime. Perhaps more surprisingly, this better inflation performance is accompanied by higher output growth.
119 citations
TL;DR: A casual reading of contemporary news reports suggests that during the past decade economic issues have taken on growing importance in the relations of non-Communist developed countries as mentioned in this paper, which is perhaps symbolic of the enormous success of early postwar foreign policy that issues no graver than these play such a prominent part in relations among countries that, earlier in the century, were sporadically at each other's throats.
Abstract: A Casual reading of contemporary news reports suggests that during the past decade economic issues have taken on growing importance in the relations of non-Communist developed countries. The disputes between the United States and Japan over textiles, between the United States and the European Economic Community over agricultural trade, and between France and Germany over currency alignments come readily to mind. It is perhaps symbolic of the enormous success of early postwar foreign policy that issues no graver than these play such a prominent part in relations among countries that, earlier in the century, were sporadically at each other's throats.
119 citations
Posted Content•
TL;DR: The global long-term interest rate now matters much more for the monetary policy choices facing emerging market economies than a decade ago as mentioned in this paper, and the low or negative term premium in the yield curve in the advanced economies from mid-2010 has pushed international investors into EM local bond markets.
Abstract: The global long-term interest rate now matters much more for the monetary policy choices facing emerging market economies than a decade ago. The low or negative term premium in the yield curve in the advanced economies from mid-2010 has pushed international investors into EM local bond markets: by lowering local long rates, this has considerably eased monetary conditions in the emerging markets. It has also encouraged much increased foreign currency borrowing in international bond markets by emerging market corporations, much of it by affiliates offshore. These developments strengthen the feedback effects between bond and foreign exchange markets. They also have significant implications for local banking systems.
119 citations
Posted Content•
TL;DR: Income comparisons between persons or groups of persons in different countries are a special field of inquiry mainly because there are different currency units as mentioned in this paper, and some writers hold that international comparisons are complicated or even invalidated by differences in consumption patterns, variations that are often much larger between countries than those found between regions within a country or between different periods in the same country.
Abstract: Income comparisons between persons or groups of persons in different countries are a special field of inquiry mainly because there are different currency units. For the most part, the other theoretical and empirical problems encountered in international income comparisons are similar to those of within-nation comparisons between different persons at the same time or different groups of persons either interspatially or, what is more common, intertemporally (e.g., constant price series of national income). The qualifications "mainly" and "for the most part" are included because some writers hold that international comparisons are complicated or even invalidated by differences in consumption patterns. Sometimes differences in tastes are held to underlie these variations in consumption patterns, variations that are often much larger between countries than those found between regions within a country or between different periods in the same country. This essay focuses, in its methodological aspects, on these special problems. The basic problems that are common to international and within-nation comparisons are left to the standard literature on national accounts.2 We turn now to the currency unit problems and reserve the question of tastes for a later section.
119 citations