Topic
Exchange rate
About: Exchange rate is a research topic. Over the lifetime, 47255 publications have been published within this topic receiving 944563 citations. The topic is also known as: foreign-exchange rate & forex rate.
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TL;DR: In this article, the authors look at the responsiveness of a country's export supply to exchange rate changes and measure its quantitative importance by breaking down export adjustments between changes in output levels by existing exporters and movements due to changes in the number of exporters.
215 citations
TL;DR: This article showed that a successful devaluation raises the real (in terms of domestic goods) debt service burden, causing a Krugman-Taylor like contractionary effect on aggregate demand, while a cut in aggregate supply leads to upward pressure on inflation while a reduction in aggregate demand tends to abate inflation.
214 citations
Posted Content•
TL;DR: In this article, the authors studied the institutional and political determinants of capital controls in a sample of 20 OECD countries for the period 1950 89 to 1989 and found that capital controls are more likely to be imposed by strong governments, which have a relatively 'free' hand over monetary policy, because the Central Bank is not very independent.
Abstract: This paper studies the institutional and political determinants of capital controls in a sample of 20 OECD countries for the period 1950 89. One of the most interesting results is that capital controls are more likely to be imposed by strong governments, which have a relatively `free' hand over monetary policy, because the Central Bank is not very independent. By imposing capital controls these governments raise more seigniorage revenue and keep interest rates artificially low. As a result, public debt accumulates at a slower rate than otherwise. This suggests that an institutional reform which makes the Central Bank more independent makes it more difficult for the government to finance its budget. The tightening of the fiscal constraint may force the government to adjust towards a more `sound' fiscal policy. We also find that, as expected, and in accordance with the theory, capital controls are more likely to be introduced when the exchange rate is pegged or managed. We found no effects of capital controls on growth, however, and reject rather strongly the hypothesis that capital controls reduce growth.
214 citations
TL;DR: In this article, the authors investigated whether a transition to a low-inflation environment, induced by a shift in monetary policy, results in a decline in the degree of pass-through of exchange rate movements to consumer prices.
Abstract: This paper investigates the question of whether a transition to a low-inflation environment, induced by a shift in monetary policy, results in a decline in the degree of pass-through of exchange rate movements to consumer prices.
214 citations
Book•
08 Aug 1997
TL;DR: In this paper, Cargill, Hutchison, and Takatoshi investigated the formulation and execution of monetary and financial policies in Japan within a broad technical, political, and institutional context.
Abstract: In The Political Economy of Japanese Monetary Policy, Cargill, Hutchison, and Takatoshi investigate the formulation and execution of monetary and financial policies in Japan within a broad technical, political, and institutional context. Their emphasis is on the period since the collapse of the Bretton Woods system of fixed exchange rates in the early 1970s, and on the effects of policies and institutions in shaping the modern Japanese economy. The authors present basic themes and recent developments, as well as their own research findings. They also review and integrate the large literature in the area. They consider theoretical arguments and empirical evidence for each topic discussed. Topics covered include Japan's low inflation record (despite the central bank's lack of formal independence from the government); politically motivated business cycles and the timing of elections; exchange rate policy and international policy coordination; the historical development of central banking; Japan's "bubble economy" of the 1980s; and the causes, magnitude, and regulatory responses to Japan's banking and financial crisis of the 1990s.
214 citations