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Monday, August 3, 2020 | History

2 edition of Optimal and sustainable exchange rate regimes found in the catalog.

Optimal and sustainable exchange rate regimes

Masahiro Kawai

Optimal and sustainable exchange rate regimes

a simple game-theoretic approach

by Masahiro Kawai

  • 274 Want to read
  • 16 Currently reading

Published by International Monetary Fund in Washington, D.C .
Written in English


Edition Notes

Includes bibliographical references.

Statementprepared by Masahiro Kawai.
SeriesIMF working paper -- WP/92/100
ContributionsInternational Monetary Fund. Research Dept.
The Physical Object
Paginationiii, 37 p. ;
Number of Pages37
ID Numbers
Open LibraryOL17902987M

An analysis of the operation and consequences of exchange rate regimes in an era of increasing international interdependence. The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice of its exchange rate regime, between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy. The book investigates how does the choice of each of the possible exchange rate regime influence the behavior of economic participants: households, firms, banks, fiscal policy. The model is tested versus the data in post-communist transition countries and it is clearly shown the choice of the exchange rate regime presents an important choice Author: Neven Vidaković.

Reasons for Fixed Exchange Rate Regimes. A fixed exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to. This makes trade and investments between the two countries easier and more predictable and is especially useful for small economies in which external trade forms a large part of their GDP. An empirical study of exchange rate regimes based on data compiled from member countries of the International Monetary Fund over the past thirty years. Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early s, countries have adopted a wide variety of regimes, ranging from pure.

This paper examines optimal exchange-rate policy in two-country sticky-price general equilibrium models in which households and firms optimize over an infinite horizon in an environment of uncertainty. The models are in the vein of the new open-economy macroeconomics' as exemplified by Obstfeld and. An exchange rate regime is the way a monetary authority of a country or currency union manages the currency in relation to other currencies and the foreign exchange is closely related to monetary policy and the two are generally dependent on many of the same factors, such as economic scale and openness, inflation rate, elasticity of the labor market, financial market development.


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Optimal and sustainable exchange rate regimes by Masahiro Kawai Download PDF EPUB FB2

This paper attempts to identify optimal and sustainable exchange rate regimes in a world economy comprising two countries. By developing a Barro-Gordon two-country macroeconomic model, noncooperative equilibria are obtained under different assumptions of monetary policy commitments and different exchange rate regimes.

Then, using a three-stage game approach to the strategic choice of Cited by: 4. This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a. A third approach is the bipolar view which holds that intermediate exchange rate regimes in countries open to international capital flows are not sustainable for extended periods, and that these countries should move away from the middle towards both extremes of the exchangeAuthor: Mustapha Ziky, Aleksander Berentsen, Mariam Ouchen.

Downloadable. This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries.

It develops a Barro-Gordon type Optimal and sustainable exchange rate regimes book model and compares noncooperative equilibria under different assumptions of monetary policy credibility and different exchange rate regimes.

This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares noncooperative equilibria under different assumptions of monetary policy credibility and different exchange rate regimes.

Using a two-stage game approach to the strategic choice of Cited by: 2. Get this from a library. Optimal and sustainable exchange rate regimes: a simple game-theoretic approach. [Masahiro Kawai; International Monetary Fund. Research Department,] -- This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries.

It develops a Barro-Gordon type two-country model. Downloadable (with restrictions). This paper attempts to identify optimal and sustainable exchange rate regimes in a world economy comprising two countries.

By developing a Barro-Gordon two-country macroeconomic model, noncooperative equilibria are obtained under different assumptions of monetary policy commitments and different exchange rate regimes. The optimal exchange rate regime for a small country Article in International Economics and Economic Policy 6(3) October with 9 Reads How we measure 'reads'.

The choice and design of exchange rate regimes Már Gudmundsson even if the OCA criteria suggest that a fixed exchange rate is not optimal. This is the basis for the use of the exchange rate as a thought needs to be given to an exit strategy to a more sustainable regime, especially when capital controls are limited or are in the process.

Praise for Handbook of Exchange Rates “This book is remarkable. I expect it to become the anchor reference for people working in the foreign exchange field.” —Richard K. Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley “It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come across.

An exchange rate regime is the system that a country’s monetary authority, -generally the central bank- adopts to establish the exchange rate of its own currency against other currencies.

Each country is free to adopt the exchange-rate regime that it considers optimal, and will do so using mostly monetary and sometimes even fiscal policies. The distinction amongst these exchange rates. The exchange rate between two currencies may be determined in international foreign exchange markets or in a government office.

If an exchange rate — say, the yen–dollar rate — is determined in international foreign exchange markets based on the demand for and supply of the yen, then the markets determine the exchange rate.

This situation [ ]. rate regime remains unresolved. Indeed, we experienced a diversity of regimes and an instability of the choices made with many countries switching from one regime to another. The paper investigates empirically the possible link between financial development and the Cited by: 1.

methodology for the of exchange rate regimes with a more clear classification (de facto). This paper is outlined as follows; in the first section, we present the literature review of the relationship between the exchange rate regime and economic growth.

In the second section, we. I begin with a critical review of Michael Klein and Jay C. Shambaugh's () book Exchange Rate Regimes in the Modern Era, and then proceed to provide an alternative overview of what the.

Monetary Policy and Exchange Rates: Guiding Principles for a Sustainable Regime LILIANA ROJAS-SUAREZ During the past three decades, experiments with alternative exchange rate regimes have not been in short supply in Latin America. Mexico typifies this “search for an optimal regime.” Since the beginning of its Inter.

This paper examines the welfare comparisons between a freely floating, a managed floating, and a pegged exchange rate regime. We compare the expected loss under these regimes by modifying and generalizing Hamada’s () model to accommodate intervention policy.

We consider the de jure and de facto classifications, where the former is defined by the officially stated intentions of the Cited by: 5.

Eichengreen () reviews the main changes in monetary regimes and exchange rate regimes (ERR) from a historical perspective: Fixed-exchange-rate commodity-based systems – bimetallic beforethe gold standard thereafter – until World War I.

The postwar reconstruction of a. The Political Economy of Asian Regionalism - Ebook written by Giovanni Capannelli, Masahiro Kawai. Read this book using Google Play Books app on your PC, android, iOS devices. Download for offline reading, highlight, bookmark or take notes while you read The Political Economy of Asian Regionalism.

ON EXCHANGE RATE POLICY: THE CASE OF EGYPT * Mahmoud Mohieldin** and Ahmed Kouchouk*** Working Paper * An earlier version of this paper was presented at the conference Exchange Rate Policies and Regimes, organised by the Arab Monetary Fund and the IMF Institute on the 16th and 17th of December in Abu Dhabi.

the exchange rate regime debate between what has come to be known as a “bipolar view“ or “corner solution“. 2 - Classifications and theories of exchange rate regimes This section examines the distinct classifications (de jure and de facto) of exchange rate ly theoretical literature is : Mariam Ouchen.(iii) how this changes with features of the economy, such the exchange rate (ER) regime or the commodity being exported?

Using a New Keynesian model, we show that optimal fiscal policy is actually pro-cyclical in countries with flexible ERs, because commodity price shocks are usually highly persistent, and so should be spent according to the.The Economics of Exchange Rates is the first essential volume on this subject in a decade' Richard Clarida, Columbia University, NBER and CEPR 'This book is a breath of fresh air.

It's current. It's comprehensive. It's going to be a delight to teach from. I look forward to its success.' Richard Lyons, University of California, BerkeleyCited by: