scholarly journals THE ROLE OF CREDIBILITY FOR THE EFFECTS OF A CHANGE IN THE EXCHANGE-RATE POLICY *

1991 ◽  
Vol 43 (1) ◽  
pp. 85-98 ◽  
Author(s):  
TORBEN M. ANDERSEN ◽  
OLE RISAGER
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Policy ◽  
Rate Policy ◽  
The Exchange Rate

Dynamic Dependence between U.S. Inbound Visits and Exchange Rate

2020 ◽  
Vol 44 (6) ◽  
pp. 1035-1046
Author(s):  
Kuang-Liang Chang ◽  
Jui-Chuan Della Chang
Keyword(s):  
Exchange Rate ◽  
Tourism Industry ◽  
Exchange Rate Policy ◽  
Oil Price ◽  
International Tourism ◽  
Tourism Demand ◽  
Positive Dependence ◽  
Rate Policy ◽  
The Exchange Rate

This article revisits the dynamic dependence between the U.S. international tourism demand and the exchange rate using a copula-based specification that features a time-varying and state-switching comovement structure. The empirical results find a state of high-volatile dependence during the oil price upsurge (2005M11-2006M09) and economic/financial crisis (2008M06-2011M06) and a state of low-volatile dependence during the remaining periods. During the former periods, a positive dependence between U.S. inbound visits and currency depreciation is indicated most often, and the magnitude of positive dependence varies dramatically. During the remaining periods, the positive and negative dependences coexist and interchange at a smooth pace. This finding implies that the exchange rate policy affects the tourism industry in the high-volatile dependence state but not in the low-volatile dependence state. The moderating role of crude oil price on the relationship between the international tourism demand and the exchange rate is also verified.

scholarly journals On the role of the exchange rate as a tool for industrial competitiveness

2020 ◽  
Vol 40 (2) ◽  
pp. 310-331
Author(s):  
ARIEL DVOSKIN ◽  
GERMÁN DAVID FELDMAN ◽  
GUIDO IANNI
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Policy ◽  
The Other ◽  
Sector Model ◽  
Equilibrium Level ◽  
Tradable Sector ◽  
Rate Policy ◽  
Differential Rent ◽  
The Exchange Rate

ABSTRACT By means of a two-tradable-sector model for an open, price-taking economy inspired by the Classical-Sraffian tradition, which conceives the pattern of trade as a technical-choice problem, we examine some difficulties with the recourse to exchange-rate policy as a tool to promote sectorial competitiveness. To this aim, we distinguish among economies that only produce manufactures from those in which the most profitable sector exploits natural resources under conditions of differential rent. We show that, when both tradable sectors produce industrial goods, conventional devaluation does not generally allow one domestic sector to reach international competitiveness without damaging the other. While when the prevailing sector operates under conditions of differential rent, even though the development of a new sector - by setting the exchange rate at its “industrial-equilibrium” level - is possible, this requires that the policymaker determines the effect of changes in the exchange rate, both in direction and magnitude, on the other distributive variables.

On the Exchange Rate Policy

2010 ◽  
pp. 21-28
Author(s):  
K. Yudaeva
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Policy ◽  
Institutional Changes ◽  
Crisis Period ◽  
Local Currency ◽  
High Inflation ◽  
Rate Policy ◽  
The Exchange Rate

The level of trust in the local currency in Russia is very low largely because of relatively high inflation. As a result, Bank of Russia during crisis times can not afford monetary policy loosening and has to fight devaluation expectations. To change the situation in the post-crisis period Russia needs to live through a continuous period of low inflation. Modified inflation targeting can help achieve such a result. However, it should be amended with institutional changes, particularly development of hedging instruments.

Article 142 TFEU

2019 ◽  
Author(s):  
Leo Flynn
Keyword(s):  
Exchange Rate ◽  
Member State ◽  
Exchange Rate Policy ◽  
Common Interest ◽  
Member States ◽  
Exchange Rate Mechanism ◽  
Rate Policy ◽  
The Exchange Rate ◽  
Rate Mechanism

Article 124(1) EC Each Member State with a derogation shall treat its exchange-rate policy as a matter of common interest. In so doing, Member States shall take account of the experience acquired in cooperation within the framework of the exchange-rate mechanism.

Statement by the Managing Director on the Independent Evaluation Office Report on IMF Exchange Rate Policy Advice

Policy Papers ◽  
2017 ◽  
Vol 2017 (57) ◽  
Author(s):  
Keyword(s):  
Exchange Rate ◽  
Policy Advice ◽  
Exchange Rate Policy ◽  
Independent Evaluation ◽  
Rate Policy ◽  
External Sector ◽  
The Imf

I would like to thank the Independent Evaluation Office (IEO) for preparing this informative and timely report, which provides an update on the IMF’s progress in its approach to exchange rate policy advice since 2007. I am pleased with its main finding that the IMF has substantially overhauled its approach to exchange rate policy advice, and concur that some issues need our continued attention. I would like to note that management and staff remain fully committed to the role of the External Sector Report (ESR) in Fund surveillance.

scholarly journals China’s Exchange Rate Policy: Forty Years of Reforms and Prospects

2020 ◽  
Vol 64 (12) ◽  
pp. 33-43
Author(s):  
I. Kudryashova
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Policy ◽  
Economic Relations ◽  
Monetary Authorities ◽  
Key Factor ◽  
Rate Policy ◽  
Product Manufacturing ◽  
Market Factors ◽  
State Interference

After four decades of reforms, China has become one of the biggest economies of the world and its exchange rate policy is a key factor in this process. The paper focuses on the conditions that have shaped the directions of China’s exchange rate policy at every stage of its evolution, the measures taken and the results achieved in terms of the policy’s effect on the economic growth and balance of payments. It is shown that active state interference in the exchange market policy in the early stages resulted in the undervalued yuan exchange rate and also encouraged positive dynamics of internal production due to the enhanced national export competitiveness. In subsequent stages, liberalization of China’s economy, its integration in the global economic relations, its bigger contribution to the global product manufacturing and export led to the increased role of market forces in the yuan exchange rate formation. Some practical measures taken in this direction encouraged the balanced yuan exchange rate, lower surplus of current accounts and increase in balance volatility of capital and financial accounts. Currently, the yuan exchange rate is still controlled. China’s monetary authorities mostly use international reserves to regulate the yuan exchange rate. The paper concludes that it is necessary to further increase the influence of market factors in the yuan exchange rate formation and diversification of the yuan stability instruments in order to maintain export growth rates, to develop China’s financial market and to expand the scope and international spheres of the yuan use.

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