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This paper offers empirical evidence that real exchange rate volatility can have a significant impact on the long … with relatively low levels of financial development, exchange rate volatility generally reduces growth, whereas for … rate volatility, and outliers. We also oer a simple monetary growth model in which real exchange rate uncertainty …
Persistent link: https://www.econbiz.de/10005858527
monetaryregime chosen, though not necessarily on monetary shocks. Wegive a simple account of exchange rate volatility in terms … ofmonetary policy rules, we provide an explanation of the relationbetween nominal exchange rate volatility and …
Persistent link: https://www.econbiz.de/10009138475
Can pegging reduce real as well as nominal, and multilateral as well as bilateralexchange rate volatility? We …
Persistent link: https://www.econbiz.de/10005868570
Real effective exchange rate volatility is examined for 90 countries using monthlydata from January 1990 to June 2006 …. Volatility decreases with openness tointernational trade and per capita GDP, and increases with inflation, particularlyunder a … horizontal peg or band, and with terms-of-trade volatility. The choice ofexchange rate regime matters... …
Persistent link: https://www.econbiz.de/10005868573
A striking and unexpected feature of the financial crisis has been the sharpappreciation of the US dollar against virtually all currencies globally. The paper findsthat negative US-specific macroeconomic shocks during the crisis have triggered asignificant strengthening of the US dollar, rather...
Persistent link: https://www.econbiz.de/10005866568
Early warning systems (EWSs) are subject to restrictions that apply to exchangerates in general: fundamentals matter but their influence is small and unstable. Despitethis limitation four major lessons emerge: First, EWSs have robust forecastingpower and thus help policy-makers to prevent...
Persistent link: https://www.econbiz.de/10005867584
In a Lucas orchard with heterogeneous beliefs, we study the link between market-wide uncertainty, difference of opinionsand co-movement of stock returns. We show that this link plays an important role in explaining the dynamics of equilibriumvolatility and correlation risk premia. In our...
Persistent link: https://www.econbiz.de/10009305103
Finanzkrise, Wirtschaftsflaute, Rezession – kaum eine Branche ist nicht von den starken Turbulenzen auf den globalen …
Persistent link: https://www.econbiz.de/10005869258
In practice, central banks have been confronted with a trade-off between stabilising inflation and output when dealing with rising oil prices. This contrasts with the result in the standard New Keynesian model that ensuring complete price stability is the optimal thing to do, even when an oil...
Persistent link: https://www.econbiz.de/10005870912
Predictions from the original geophysical approach to oil explorationand production suggest that oil production will develop according to a predeterminedand inflexible bell-shaped trajectory, quite independent of variables relatingto technological development, economics, and policy. Exploring...
Persistent link: https://www.econbiz.de/10009305228