Balance-of-payments anti-crises

Balance of payments crises under inflation targeting ¬リニ

This paper analyzes a small open economy model under a monetary regime that targets the consumer price index. It is explained why such a regime is vulnerable to speculative currency attacks. There are two differences to the exchange rate targeting case: (i) The attack takes place over a short period of time as opposed to instantaneously. (ii) Reserve losses attributable to the attack are smalle...

The Effects of Devaluation of Irans Balance of Payments

Devaluation has different effects on the structure of trade patterns in countries which have a fixed exchange rate regime. The experience of devaluation in many countries has clearly shown that devaluation policies have not always led to the improvement of their trade pattern structures. Some empirical studies have revealed that after employing devaluation, the real rate of money in some nation...

The Theory of Balance-of-Payments Adjustment: Comment

Evaluating the Impacts of Balance of Payments Variables Shock on Selected Macroeconomic Variables Using FAVAR

International balance of payments is one of the most common criteria for measuring the flow of trade and capital transfers in an open economy. The three main components of this balance are: trade balance, current account (or difference between export and import of goods and services) and capital account. In this study, factor augmented vector autoregressive model (FAVAR) was used to evaluate th...

Balance-of-Payments Constrained Growth: the Case of Turkey

In order to test the existence of Thirlwall’s law for Turkey during the period of 19802008, bounds test approach to cointegration is applied. The empirical results suggest that Thirlwall’s law holds for Turkey. This study also suggests some policy recommendations to curb the deficits in the balance-of-payments.