Search results for "exchange rate"
showing 10 items of 102 documents
Did the European exchange-rate mechanism contribute to the integration of peripheral countries?
2007
Abstract This paper analyses the effect on trade of the exchange-rate mechanism I by member country. We find that it has contributed to a deeper integration of those peripheral countries that participated in the mechanism for at least several years, providing a lesson for the ten new European Union members.
We Had to Feed the People: The Italian Lira and the Political Economy of Currency in British Eritrea, 1941–1950
2021
Following the occupation of Eritrea in 1941, British authorities in London promoted a currency policy aimed at replacing the Italian lira with a sterling-based currency basket. In May 1942, they opted for the enforcement of the East African shilling as the new legal tender. The lire, however, did not disappear overnight. Their circulation was tolerated—and, in some cases, even encouraged—by British authorities in Asmara, which exploited the small deal of autonomy they enjoyed from London to adapt the new monetary system to the needs of local governance. The case study is a useful lens to analyse the multiplicity of interests that shaped the political economy of currency of the United Kingdo…
Is an Increase of the Fiscal Budget at EMU level Desirable?
2005
The birth of the European Monetary Union (EMU) has determined the creation of a common currency, the Euro, but unlike other monetary unions, the EMU does not have a central fiscal authority. The role of fiscal policy is left to the responsibility of the governments of the EMU member States. The new architecture modifies the assignment of the instruments to the objectives, especially those of stabilization. The loss of the sovereignty of monetary policy and exchange rate control by the individual member states has determined the inability to use two important instruments of insurance against the risks of shocks. Moreover, the Treaty of Maastricht and the Stability and Growth Pact (SGP) could…
The Macroeconomy After Tariffs
2021
AbstractWhat does the macroeconomy look like in the aftermath of tariff changes? This study estimates impulse response functions from local projections using a panel of annual data that spans 151 countries from 1963 to 2014. Tariff increases are associated with persistent, economically and statistically significant declines in domestic output and productivity, as well as higher unemployment and inequality, real exchange rate appreciation, and insignificant changes to the trade balance. Output and productivity impacts are magnified when tariffs rise during expansions and when they are imposed by more advanced or smaller (as opposed to developing or larger) economies; effects are asymmetric, …
Finances and credit: problems, conceptions, management
2001
Economic situation in the Baltic States is investigated, in particular the development of economics in transition is analysed in Latvia, Lithuania, Estonia and Poland. There are studied the following details: Monetary and exchange rate policy; Crediting and bank management; Development of securities market; Management of taxes and finance; Development of accounting policy; Pension reform perspective etc.
Long-Run Growth and Volatility: Which Source Really Matters
2010
The aim of the article is to analyse the relationship between long-run growth and business cycle volatility. In particular, the main purpose of this article is to identify which source of volatility is most detrimental to growth. Using cross-country data from 1970 to 2000, and several indicators of volatility (such as inflation, exchange rate, government expenditure, output and investment volatility) this article shows that although, all these measures of volatility are remarkably harmful for growth, business cycle investment volatility is the main source that hampers long-run growth. This relation is robust to different measures of business cycle, and to different sub-samples of countries.
Export market integration in the European Union
2004
This paper examines the degree and recent evolution (1988-2001) of export-price dispersion among European Union countries. It also explores the effect of exchange rates on exportprice dispersion by reviewing the experience of some European countries that participated in the exchange rate stability zone. The results indicate that export-price dispersion across European Union countries was usually lower than across OECD countries. Moreover, although there is little evidence of convergence, this is stronger across European Union countries. Finally, even though price dispersion was often lower across European Union countries where exchange rates have been relatively stable than across countries…
Reforming the international financial and monetary system: from Keynes to Davidson and Stiglitz
2004
International audience; With the usual debates trumpeting the usual merits of fixed versus flexible exchange rates, or some various incarnations thereof, the authors draw attention to Keynes's original plan for an international clearing union. The paper takes a close look at Joseph Stiglitz's recent suggestions to deal with financial crises along with Paul Davidson's Keynes-Post Keynesian clearinghouse. In the former case, the analysis is left wanting: the author offers nothing more than simple solutions to a system in need of dramatic changes. On the other hand, Davidson's analysis of the current state of affairs requires more than mere "plumbing" and addresses the root causes of the crise…
Monetary policy and the exchange rate during the Asian crisis: identification through heteroscedasticity
2005
Abstract This paper examines whether a monetary policy tightening (i.e., an increase in the domestic interest rate) was successful in defending the exchange rate from speculative pressures during the Asian financial crisis. We estimate a bivariate VECM for four Asian countries, and improve upon existing studies in two important ways. First, by using a long data span we are able to compare the effects of an interest rate rise on the nominal exchange rate during tranquil and turbulent periods. Second, we take into account the endogeneity of interest rates and identify the system by exploiting the heteroscedasticity properties of the relevant time series, following Rigobon [Identification thro…
Exchange Rate and Macroeconomic Fluctuations as Sources of Luck in CEO Compensation
2011
Exchange rate and other macroeconomic fluctuations can be considered sources of good or bad “luck” for corporate performance. Incentive effects of performance-based compensation for management may be weakened or biased by macroeconomic influences on remuneration depending on the ability of management to adjust operations. We decompose the changes in CEO-compensation to distinguish between (anticipated-and unanticipated) macroeconomic and “intrinsic” sources. Total US CEO-compensation is measured both including options awarded and options exercised. Both depend strongly on variations in macro-factors but the time patterns differ. Allowing for asymmetric effects on compensation we find that c…