scholarly journals The Impact of the Exchange Rate Regime on Exports: Evidence from Bilateral Exports in the European Monetary System

2000 ◽  
Vol 15 (3) ◽  
pp. 506-526
Author(s):  
Kyriacos Aristotelous ◽  
Stilianos Fountas
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
European Monetary System ◽  
European Monetary ◽  
Monetary System ◽  
The Exchange Rate ◽  
Bilateral Exports ◽  
The Impact

Politics and Exchange Rates: Britain, France, Italy, and the Negotiation of the European Monetary System

1994 ◽  
Vol 14 (3) ◽  
pp. 345-369 ◽  
Author(s):  
James Walsh
Keyword(s):  
Exchange Rate ◽  
Domestic Politics ◽  
European Monetary System ◽  
Exchange Rate Policy ◽  
European Monetary ◽  
Policy Choices ◽  
Monetary System ◽  
Rate Policy ◽  
The Impact ◽  
Industry Relations

ABSTRACTWhen the European Monetary System was negotiated in 1978, governments in France, Britain, and Italy took very different approaches to this new international institution for coordinating exchange rate policies. The French government actively supported the creation of the European Monetary System, the Italian government entered the system but on weaker terms than the French, and the British government refused to enter the system, preferring to allow the pound to float. To explain these different policy choices, I analyze the impact of domestic politics and institutions on exchange rate policy, paying particular attention to how the organization of bank-industry relations and government instability shape policymakers' policy preferences and their abilities to implement these preferences.

scholarly journals Exchange rate and interest rate distribution and volatility under the Portuguese target zone

2010 ◽  
Vol 57 (3) ◽  
pp. 261-282 ◽  
Author(s):  
Duarte Portugal ◽  
Sousa Andrade ◽  
Adelaide Duarte
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Exchange Rate Volatility ◽  
European Monetary System ◽  
European Monetary ◽  
Target Zone ◽  
Rate Distribution ◽  
Economies In Transition ◽  
Portuguese Economy ◽  
The Exchange Rate

The aim of this study is to analyse the exchange rate and interest rate distribution and volatility under the participation of the Portuguese economy in the Exchange Rate Mechanism (ERM) of the European Monetary System (EMS) based on some of the main predictions of the target zone literature. Portugal adopted this exchange rate target zone from April 6 1992 until December 31 1998. During this period, the exchange rate distribution reveals that the majority of the observations lie close to the central parity, thus rejecting one of the key predictions of the Paul Krugman (1991) model. The analysis of the data also shows that exchange rate volatility tended to increase as the exchange rate approached the edges of the band, contrary to the predictions of the basic model. Interest rate differential volatility, on the other hand, seemed to behave in line with theoretical predictions. This suggests an increase in the credibility of monetary policy, allowing us to conclude that the adoption of a target zone has contributed decisively to the creation of the macroeconomic stability conditions necessary for the participation in the European Monetary Union (EMU). The Portuguese integration process should therefore be considered as an example to be followed by other small open economies in transition to the euro area.

scholarly journals DAMPAK FLUKTUASI NILAI TUKAR TERHADAP OUTPUT DAN HARGA: PERBANDINGAN DUA REZIM NILAI TUKAR

2007 ◽  
Vol 10 (1) ◽  
pp. 3-22
Author(s):  
Jardine A Husman
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Import Price ◽  
Regime Switch ◽  
Aggregate Supply ◽  
Rate Fluctuation ◽  
The Exchange Rate ◽  
The Impact

This paper analyzes the impact of exchange rate fluctuation on the output and price in two different regimes. The model employed distinguishes four different sources of impacts on the output and price, namely the anticipated and the un-anticipated exchange rate movement, the aggregate demand and the aggregate supply shock.The result confirms the impact of the exchange rate regime switch on how the exchange rate influences the output. The net impact of Rupiah depreciation will expand the output, indicating the dominance of the aggregate the demand shock through the competitive advantage than the aggregate supply shock through import price effect.The regime switch also alters the effectiveness of the monetary and the fiscal policy on the output. The magnitude of monetary and fiscal policy is much larger than the exchange rate impact on output, both managed and free floating regime.Keywords: exchange rate, anticipated vs. unanticipated depreciation, supply vs. demand channels.JEL Classification: F41, F43, F31

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