Good Financial Planning Considering the Exchange Rate Fluctuation

Financial Fragility and the Exchange Rate Regime

We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails, banking crises and speculative attacks become possible. We compare currency boards, fixed rates, and...

Supply chain master planning considering material-financial flows

In this study, tactical decisions considering the material and financial flows in a supply chain have been made. To achieve these aims and some effective solutions, a multi-objective mathematical model proposed for an integrated supply chain master planning problem. The multi-product, multi-period and capacitated supply chain network has three objective functions. Two first objective functions ...

Assessing the Exchange Rate Fluctuation on Tehrans Stock Market Price: A GARCH Application

This paper empirically investigates the exchange rate effects of Iranian Rial against Dollar (Rial vs.US) on stock prices in Iran. The sample period for the study has been taken from March 20, 2004 to March 20, 2010 using daily nominal exchange rate of Rial /us and daily closing values of Tehran Stock Exchange. Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model has been use...

Exchange Rate Adjustment in Financial Crises∗

In the 1990’s many economists criticized emerging market countries for their unwillingness to allow exchange rates to adjust. The ‘fear of floating’ was seen as severe distortion in the international monetary system, and a hindrance to good macroeconomic policy for these countries. In the worst case, a persistent defence of an exchange rate peg could lead to over -borrowing and precipitate curr...

Effects of Financial Liberalization on Macroeconomic Volatilities: Applications to Economic Growth, Exchange Rate and Exchange Rate Pass-Through