Hard Pegs Versus Intermediate Currency Arrangements in the Pacific
نویسندگان
چکیده
منابع مشابه
Managing Currency Pegs
When confronted with the current crisis in peripheral Europe, many specialists in emerging-market macroeconomics feel that it is déjà vu all over again. An implication of this feeling is that in order to understand the current situation in southern Europe, one should dust off the theories of exchange-rate crises that were motivated by the economic experience under fixed exchange rates in Latin ...
متن کاملUncertainty shocks and currency pegs∗
Uncertainty shocks cause economic activity to contract and more so, if monetary policy is constrained by an effective lower bound on interest rates. In this paper, we investigate whether countries with a currency peg or countries within currency unions are also particularly prone to suffer from the adverse effects of heightened uncertainty because they lack monetary independence. First, we esti...
متن کاملThe price – consumption puzzle of currency pegs
A defining stylized fact associated with exchange-rate-based stabilization programs is that their initial phase is characterized by several years of continuous expansion in private consumption and a gradual appreciation of the real exchange rate. This paper shows that a large class of standard optimizing models is unable to account for this empirical regularity. In particular, models in this cl...
متن کاملVulnerability of currency pegs: evidence from Brazil∗
This paper analyses predictions of a simple model of currency crises in which the peg will be abandoned when the currency overvaluation hits a certain threshold, unknown to the agents. Due to learning about the threshold, some features usually observed in the data and identified with models with multiple equilibria arise in the model. But the model yields distinctive predictions about the behav...
متن کاملAlternative currency arrangements for Palestine
Comparable economies to that of a new Palestinian state have mostly opted for a pegged exchange rate regime, but generally not a currency union or a currency board. The issue of a new Palestinian currency would bring only relatively small steady state seigniorage, but the transitional seigniorage gains would be more significant. Gravity models suggest the new state would do up to a third of its...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2015
ISSN: 1556-5068
DOI: 10.2139/ssrn.2605414