University Press Scholarship Online

You are looking at 41-50 of 320 items for: keywords : exchange rate

German and British Monetary Policy, 1919–1932 Theo Balderston

in Banking, Currency, and Finance in Europe Between the Wars Published in print: 1995 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0198288034.003.0006 ISBN: 9780198288039 eISBN: 9780191596230 Item type: chapter

Balderston contrasts the exchange rate and monetary policies in Germany with those in Britain. He examines the economic and political determinants of the monetary and fiscal policies adopted in the two countries in the 1920s, and their contrasting attitudes to the defence of the currency under the gold standard. He concludes that although the failure of central banks to cooperate hastened the collapse of the gold standard, it was in each case the uncertainty of market expectations with respect to the currencies that was of primary importance. Given this uncertainty, the level of support needed to maintain confidence in the two parities would have been much larger than in earlier gold standard crises (such as 1890 or 1907), and was probably not feasible.

The Exchange Rate, Trade Policy, and the Current Account W. Max Corden

in Trade Policy and Economic Welfare Published in print: 1997 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0198775342.003.0015 ISBN: 9780198775348 eISBN: 9780191715471 Item type: chapter

A simple model that shows the relationship between the real exchange rate and tariffs is presented. In general, unilateral trade liberalization requires depreciation. The concepts of exchange rate protection and of the real appreciation problem is introduced, as well as the role of protection when the exchange rate is fixed.

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The Macroeconomic Theory of Exchange Rate Crises Giovanni Piersanti

Published in print: 2012 Published Online: Publisher: Oxford University Press September 2012 DOI: 10.1093/ ISBN: 9780199653126 eISBN: 9780191741210 acprof:oso/9780199653126.001.0001 Item type: book

This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs. The book aims to provide a survey of both the theoretical literature on international financial crises and a systematic treatment of the analytical models. It analyzes a series of macroeconomic models and demonstrates their properties and conclusions, including comparative statics and dynamic behavior. The models cover the range of phenomena exhibited in modern crises experienced in countries with fixed or managed exchange rate systems. Among the topics covered, beyond currency sustainability, are bank runs, the interaction between bank solvency and currency stability, capital flows and borrowing constraints, uncertainty about government policies, asymmetric information and herding behavior, contagion across markets and countries, financial markets runs and asset price bubbles, strategic interaction among agents and equilibrium selection, the dynamics of speculative attacks and of financial crashes in international capital markets.

Monetary Policy Without Monetary Targets J. C. R. Dow and I. D. Saville

in A Critique of Monetary Policy: Theory and British Experience Published in print: 1990 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0198283199.003.0013 ISBN: 9780198283195 eISBN: 9780191596186 Item type: chapter

The authors pursue a number of aims. They begin by placing monetary policy within the wider framework of general economic policy. They continue by examining the domestic role of monetary policy and how they see it developing in the future. This is followed by a discussion specifically on exchange rates, which the authors see as the major area of importance for monetary policy. The chapter concludes with a brief discussion of the mix between monetary and fiscal policy.

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North American Currency Integration: A Canadian Perspective Thomas J. Courchene and Richard G. Harris in The Dollarization Debate Published in print: 2003 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0195155351.003.0018 ISBN: 9780195155358 eISBN: 9780199832989 Item type: chapter

This chapter presents the case for a North American monetary union (NAMU). It focuses on three issues: the downsides of Canada’s floating exchange rate, the arguments for increased exchange rate fixity, and that the long-term objective of exchange rate fixity should be a NAMU. It argues that the NAMU should have a place in Canada’s policy and research agenda, given the emergence of currency arrangements as a supranational public good.

What Exchange Rate Arrangement Works Best for Latin America? Liliana Rojas‐Suarez

in The Dollarization Debate Published in print: 2003 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0195155351.003.0022 ISBN: 9780195155358 eISBN: 9780199832989 Item type: chapter

This chapter looks into the implementation of dollarization and flexible exchange rate regimes in Latin America. The current features of Latin American countries do no warrant the immediate implementation of a single currency. The severe constraints facing Latin American countries warrant the use of increased flexibility in exchange rates to deal with trade and financial shocks. Exchange rate flexibility should be complemented by the appropriate provision of liquidity and effective use of monetary instruments.

Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur José María Fanelli

in The Dollarization Debate Published in print: 2003 Published Online: Publisher: Oxford University Press November 2003 DOI: 10.1093/0195155351.003.0024 ISBN: 9780195155358 eISBN: 9780199832989 Item type: chapter

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This chapter examines the pros and cons of macroeconomic policy coordination in Mercosur. It reviews the macroeconomic functioning of the Argentine economy under convertibility, and the exchange regimes and trade structure of Mercosur countries. It argues that Mercosur countries would greatly benefit from gradually advancing into macro coordination. The first step is to reduce the remaining volatility in the evolution of nominal and relative prices within the bloc.

Why China Undervalues Its Exchange Rate: The Domestic Politics of Currency Manipulation David A. Steinberg

in Demanding Devaluation: Exchange Rate Politics in the Developing World Published in print: 2015 Published Online: Publisher: Cornell University Press August 2016 DOI: 10.7591/cornell/9780801453847.003.0004 ISBN: 9780801453847 eISBN: 9780801454257 Item type: chapter

China's undervalued exchange rate has affected the world economy in numerous ways and is among the most contentious issues in contemporary international politics. This chapter examines whether the conditional preference theory helps explain exchange rate politics in China between 1993 and 2009. It begins with an overview of China's political and economic system, describing the organization of the labor and financial system and the power of the manufacturing sector. It then examines how politics shaped exchange rate policy in China between 1993 and 2009. The third section summarizes key findings and explains how they shed light on the relationship between domestic politics and undervalued exchange rates more broadly. It is shows that lobbying by the powerful manufacturing sector is a major reason why China kept its exchange rate undervalued for most of the 1993–2009 period.

The Political Appeal of Overvaluation: Industrial Interests and the Repeated Overvaluation of the Argentine Peso David A. Steinberg

in Demanding Devaluation: Exchange Rate Politics in the Developing World Published in print: 2015 Published Online: Publisher: Cornell University Press August 2016 DOI: 10.7591/cornell/9780801453847.003.0005 ISBN: 9780801453847 eISBN: 9780801454257 Item type: chapter

This chapter evaluates whether exchange rate overvaluation in Argentina follows the logic of the conditional preference theory. The first part documents the Argentine state's inability to control its labor and financial Page 4 of 5

systems, and explains why the manufacturing sector should have high levels of influence over the country's exchange rate policies. The second half of the chapter examines the political dynamics of exchange policymaking in Argentina between 1966 and 2012. It is shown that Argentina's manufacturing sector has usually preferred an overvalued exchange rate to an undervalued one. There was one important exception to this general trend: between 2001 and 2005, when the country's economy was suffering from high degrees of excess capacity and business costs became disconnected from undervaluation as a result.

Endogenous Volatility in an Open Economy Phillippe Aghion and Abhijit Banerjee in Volatility and Growth Published in print: 2005 Published Online: Publisher: Oxford University Press January 2007 DOI: 10.1093/ ISBN: 9780199248612 eISBN: 9780191714719 acprof:oso/9780199248612.003.0006 Item type: chapter

This chapter argues that financial liberalization introduces a new problem: Now the real exchange rate, which is the relative price between nontradable and tradable, becomes a source of instability. It goes up in a boom, squeezing profits, which limits borrowing and hence investment and brings the economy down. The fact that the economy is open to capital inflows may actually make things worse, since it allows investment demand to grow very fast in a boom.

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