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.

Risk and Exchange Rates

Abstract: Nominal exchange risk is a ubiquitous factor in international economic policy analysis. For example, sudden appreciations of the dollar following financial crises outside the United States often are ascribed to “safe haven” portfolio shifts. The elimination of national currencies in Europe has been rationalized in part by the claim that uncertain exchange rates discourage trade, and thereby hamper the full realization of the gains from removing other obstacles to commodity and asset-market integration. Unfortunately, the analytical underpinnings of such widely discussed phenomena have received scant attention. In analyzing the properties of stochastic general-equilibrium monetary models, researchers typically rely on a certainty equivalence assumption to approximate exact equilibrium relationships. This practice, as Kimball (1995, p. 1243) remarks, “precludes a serious welfare analysis of changes that affect the variance of output.” In the relatively rare cases in which higher moments are considered theoretically, tractability usually has required the assumption of instantaneously flexible commodity prices and wages. That modeling choice not only assumes away much of the real effect of nominal exchange rate uncertainty. It simultaneously precludes discussion of the feedback from monetary nonneutralities to market risks, and instead imposes exogenously the covariances between monetary shocks and consumption levels. And it is unrealistic. There is strong, indeed overwhelming, empirical evidence that the nominal prices of domestically produced goods tend to adjust far more sluggishly than exchange rates.

Interpreting the Korean crisis: financial liberalisation, industrial policy and corporate governance

Abstract: As the interpretation of its economic ‘miracle’ has been, so the interpretation of the recent crisis in Korea remains highly controversial.1 Although there are many important issues which have been raised by the Korean crisis, such as exchange rate policy, labour market policy, and the architecture of the international financial system (Chang, 1998a), three issues have been especially controversial in the debate: financial liberalization, industrial policy and corporate governance.

The Economics of Adjustment and Growth

Abstract: Introduction and Overview Consumption, Saving, and Investment The Financial System, Money Demand, and Monetary Policy Fiscal Deficits, Public Debt, and the Current Account Exchange Rate Regimes, Credibility, and Exchange Rate Adjustment Inflation and Disinflation Capital Inflows: Causes and Policy Responses Currency Crises and Financial Volatility Aggregate Accounts, Budget Constraints, and Model Consistency Policy Tools for Macroeconomic Analysis Growth, Poverty, and Income Distribution: Some Basic Facts Growth and Technological Progress: The Solow-Swan Model Knowledge, Human Capital, and Endogenous Growth The Determinants of Economic Growth: An Empirical Overview Structural Adjustment: Agriculture, Trade, and the Labor Market Fiscal and Financial Sector Reforms Adjustment and External Debt in Low-Income Countries Sequencing, Gradualism, and the Political Economy of Adjustment Annex A: The Information Sector and the Urban Labor Market Annex B: Informal Financial Markets Annex C: Exchange Market Unification References Index of Names Index of Subjects