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Monday, August 10, 2020 | History

2 edition of Exchange rate volatility and misalignment found in the catalog.

Exchange rate volatility and misalignment

Jacob A. Frenkel

Exchange rate volatility and misalignment

evaluating some proposals for reform

by Jacob A. Frenkel

  • 123 Want to read
  • 31 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Foreign exchange.,
  • Economic policy -- International cooperation.

  • Edition Notes

    StatementJacob A. Frenkel, Morris Goldstein.
    SeriesNBER working paper series -- working paper no. 2894, Working paper series (National Bureau of Economic Research) -- working paper no. 2894.
    ContributionsGoldstein, Morris, 1944-
    The Physical Object
    Pagination46 p. :
    Number of Pages46
    ID Numbers
    Open LibraryOL22437445M

      The Effects of the Real Exchange Rate Volatility and Misalignments on Foreign Trade Flows in Uzbekistan Article (PDF Available) in . Previous analytical models focused on the effects of the real exchange rate (RER) and the RER volatility on Chinese aggregate exports. An important and related variable, the RER misalignment, has been hitherto omitted from the analysis. Yet this has been an issue of paramount importance facing not only China but also the rest of the world.

    exchange rate and accept the floating exchange rate systems, to accept exchange rate fluctuations. Asian Economic and Financial Review, , 4(4): relationship between the mean growth rate of per capita (GDP) and real exchange rate misalignment, using data from 33 developing countries. He concludes that average real exchange rate.   Real Exchange Rate Determination: Theory and Evidence 9. Equilibrium Exchange Rates: Measurement and Misalignment The New Open Economy Macroeconomics and Exchange Rate Behaviour The New Open Economy Macroeconomics: Pricing to Market and Exchange Rate Volatility Redux The Economics of Fixed Exchange Rates.

    In addition, the exchange rate’s excessive volatility and misalignment are apparent, relative to the effi cient benchmark. Instead of remaining unchanged, the real exchange rate (and nominal, given price stability) not only surges upon the arrival of the news, but also continues to appreciate in a sustained way. Even if the exchange rate.   This paper surveys a wide body of economic literature on the relationship between exchange rates and trade. Specifically, two main issues are investigated: the impact of exchange rate volatility and of currency misalignments on international trade flows. On average, exchange rate volatility has a negative (even if not large) impact on trade.


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Exchange rate volatility and misalignment by Jacob A. Frenkel Download PDF EPUB FB2

We also review key characteristics of the behavior of major-currency exchange rates over the period of floating rates and examine the various criteria or standards for drawing inferences about excess volatility and misalignment. In evaluating exchange rate volatility, attention is directed toward the influence of the exchange rate regime, to the behavior of fundamentals, to the volatility of both goods prices and other asset prices, to the costs of exchange rate volatility Cited by: The need for reform of the international monetary system has been a recurring theme in the writings of Robert Triffin.

2 In this paper, we follow Professor Triffin’s lead and analyse several proposals for reducing the volatility and/or misalignment of key-currency exchange rates. The proposals examined are a system of target zones, the imposition of controls or taxes on Cited by: The book Exchange rate volatility and misalignment book of Exchange Rates: Effects on Trade and Industry, Edited by Richard C.

Marston is published by University of Chicago Press. This paper analyzes several proposals for reducing the volatility and/or misalignment of key-currency exchange rates. The proposals examined are a system of target zones, the imposition of controls or taxes on international capital flows, and a strengthening of inter- national coordination over economic policies.

Author: International Monetary ch Dept Publisher: International Monetary Fund ISBN: Size: MB Format: PDF, Docs View: Get Books. Exchange Rate Volatility And World Trade Exchange Rate Volatility And World Trade by International Monetary Fund. Research Dept, Exchange Rate Volatility And World Trade Books available in PDF.

Exchange rate misalignment: concepts and measurement for developing countries (English) Abstract. The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during the last decade.

In this study, panel vector autoregression (PVAR) models are employed to examine the relationships between industrial production growth rate, consumer price inflation, short-term interest rates, stock returns and exchange rate volatility.

More specifically, I explored the consequences of the dynamics detected by the models on monetary policy implementation. This paper investigates the impact of exchange rate volatility on export in Nigeria.

The paper employed three models, viz: Ordinary Least Square (OLS); Granger causality test. The study by Kiptoo () focused on the real exchange rate, volatility, and misalignment, and its impact on the Kenya's international trade, and investment.

Sifunjo, () focused on chaos and non-linear dynamical approaches to predicting exchange rates in Kenya. Exchange rate volatility refers to the tendency for foreign currencies to appreciate or depreciate in value, thus affecting the profitability of foreign exchange trades.

The volatility is the measurement of the amount that these rates change and the frequency of those changes. There are many circumstances when exchange rate volatility comes.

international trade by investigating the effect of exchange rate volatility and misalignment on international trade and by exploring whether exchange rate misalignment affects trade policy decisions.

The methodological framework consists of fixed effects regressions estimated on a detailed panel dataset comprising about countries and. There is a growing agreement in the literature that prolonged and substantial exchange rate volatility can create severe macroeconomic disequilibria and the correction of external balance will require both exchange rate devaluation and demand management policies.

The main intuition behind this is that an increase in exchange rate volatility leads to. Exchange rate volatility and misalignment. Cambridge, MA ( Massachusetts Ave., Cambridge, MA ): National Bureau of Economic Research, [] (OCoLC) Document Type: Book: All Authors / Contributors: Jacob A Frenkel; Morris Goldstein; National Bureau of Economic Research.

Volatile exchange rates can quickly and significantly change the profitability of importing and exporting. Despite the expectation that fixed exchange rates are less volatile, a IMF study notes that on average, during the s, s, and s, the volatility of fixed exchange rates was approximately the same as that of floating rates.

Misaligned exchange rates. The evolution of competitiveness Competitiveness is a measure of a country's advantage or disadvantage in selling its products in international markets. more at the national level is mainly shaped by two factors: first, the rate of increase in wages (and other costs) relative to the rate of productivity growth and, second, the nominal exchange rate Nominal.

Downloadable. This paper investigates the effect of real exchange rate misalignment and volatility on Malaysian import flows during Q1 to Q4.

A measure of the quantitative proxy of the real exchange rate misalignment is constructed using the Natural Real Exchange Rate (NATREX) equilibrium model, whereas the volatility of real exchange rate is generated.

We also review key characteristics of the behavior of major-currency exchange rates over the period of floating rates and examine the various criteria or standards for drawing inferences about excess volatility and misalignment. In evaluating exchange rate volatility, attention is directed toward the influence of the exchange rate regime, to the behavior of fundamentals, to the volatility of both goods prices and other asset prices, to the costs of exchange rate volatility.

Handbook of Exchange Rates is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics.

The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels. Abstract This paper investigates the importance of exchange rates on international trade by analyzing the impact that exchange rate volatility and misalignment have on trade and then by exploring whether exchange rate misalignments affect governments' decisions regarding trade policies.

The goal of this paper is to address the role of the real effective exchange rate (fundamentals, misalignment and volatility) for the current account using a panel data analysis for a set of 58 countries, over the period of –.

(). Exchange-rate volatility and commodity trade between the USA and Indonesia. New Zealand Economic Papers: Vol. 49, No. 1, pp. literature on the causes of exchange rate volatility and its effects on economic growth.

Section 3 outlines the empirical strategy and model specifications while section 4 presents the empirical results. We discuss the implications of the long and short run determinants of exchange rate volatility and the volatility growth-nexus.

Section 6.Exchange rate misalignment: concepts and measurement for developing countries (英语) 摘要. The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during the last decade.