scholarly journals Current Account Dynamics, Adjustment and Capital Mobility in Bangladesh

2013 ◽  
Vol 2 (2) ◽  
pp. 117-126
Author(s):  
Mohammad Masud Alam ◽  
Rezai Karim Khondker ◽  
Mohammad Shahansha Molla
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
Capital Market ◽  
Capital Mobility ◽  
Market Integration ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Policy Implications ◽  
Current Account Dynamics ◽  
Real Shocks

This paper examines current account (CA) dynamics, its relationship with the degree of capital mobility and the state of integration of the Bangladesh capital market with the global capital market. For the period 1976-2012, findings of AR (1) process shows a rigid CA position along with its slow adjustment and its inflexibility against real shocks, lower degree of capital mobility and a slow progress of capital market integration with the rest of the world. Compared to the period of fixed exchange rate regime, lesser degree of  rigidity has been observed during the flexible exchange rate period suggesting a smooth and flexible current account position; but shows an increased degree of rigidity and capital immobility for the overall time period under consideration. These findings reveal some important policy implications in respects of current and capital account liberalization, deregulation of domestic markets and removing entry barriers on the part of Bangladesh to boost up FDI and remittance inflows.  

scholarly journals EXCHANGE RATE FLEXIBILITY, CAPITAL MOBILITY AND INFLATION TRANSMISSION IN MALAYSIA

2009 ◽  
Vol 8 (1) ◽  
Author(s):  
Mansor H. Ibrahim
Keyword(s):  
Exchange Rate ◽  
Capital Mobility ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
International Transmission ◽  
Exchange Rate Flexibility ◽  
The Us ◽  
Small Economy ◽  
Inflation Transmission ◽  
Limited Exchange

The paper assesses the international transmission of inflation for a small economy, Malaysia, over three sample periods marked by different degrees of exchange rate flexibility. Contradicting to conventional wisdom of less pronounced foreign nominal influences under the flexible exchange rate regime, this research finds evidence that the inflation transmission from the US to Malaysia is strongest during the period marked by increasing exchange rate flexibility (i.e. 1993-1998). This research also observes significant inflation effects of exchange rate depreciation during the same period. While this research observe less pronounced impacts of the US during the limited exchange rate flexibility period (i.e. 1988-1999), the US influences are virtually absent during the recent fixed regime (i.e. 1998-2005). This research believes that the intensity of capital flows across the three periods might have explained the results.

scholarly journals POST – CRISIS EXCHANGE RATE POLICY IN INDONESIA

2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Abdul Hadi Ilman
Keyword(s):  
Exchange Rate ◽  
Capital Mobility ◽  
Exchange Rate Regime ◽  
Foreign Debt ◽  
International Market ◽  
Flexible Exchange Rate ◽  
Exchange Rate Policy ◽  
Asian Tigers ◽  
Rate Policy ◽  
The Exchange Rate

In 1997 Indonesia was hit by a severe financial crisis which led to the change of almost everything in the country, including the exchange rate regime; from managed floating to free floating or flexible exchange rate. It has been a major conclusion from academic debate that maintaining exchange rate at a certain level or band (soft peg) was no longer workable in the more integrated financial system, international market, and free flow of capital mobility across economy.Indonesia once was known as one of the “Asian Tigers” which were believed to be the next industrialized economies as was being indicated by astounding macroeconomic performance since the early 1990s. The exchange rate management, in which the objective was to have a competitiveness in the international market, was making a huge contribution to that performance. No one suspected those countries would be hit by the crisis until Thailand’s Bath was under attacked and suddenly it spread expeditiously to other economies.Domestically, economy of Indonesia was funded by foreign debt in the several years before crisis to leverage the economy, especially private sector. Thus, when the currency crisis was happening, the value of rupiah was depreciated so much and the central bank could not afford to stabilize the value of rupiah in the market. Then a huge amount of the dollar-denominated short term debt was suspected to default since the debt value in rupiah was becoming very large.

scholarly journals Angola

2019 ◽  
Vol 19 (170) ◽  
pp. 1
Author(s):  
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
Current Account Deficit ◽  
Exchange Rate Regime ◽  
Oil Prices ◽  
Flexible Exchange Rate ◽  
Policy Response ◽  
Growth Recovery ◽  
Alternative Sources ◽  
Oil Revenues

A 36-month Extended Arrangement under the Extended Fund Facility (hereafter the “arrangement”) was approved last December, with access of SDR 2,673 million (361 percent of quota). Lower international oil prices would reduce oil revenues, widen the current account deficit, and stymie growth recovery. The authorities are implementing a proper policy response to the weakened outlook, through a conservative supplementary budget for 2019, alternative sources of cheaper financing, and progress toward a more flexible exchange rate regime.

A General Trend Analysis of India’s Current Account Balance

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Phool Chand
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
General Trend ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Current Account Balance ◽  
Positive Growth ◽  
Major Shift ◽  
Merchandise Trade ◽  
Negative Growth

With economic liberalization in India, a major shift on the foreign exchange front was in the form of switching from a fixed exchange rate regime to flexible exchange rate regime. This shift led to some heavy and sudden fluctuations in the prices and volumes of exports and imports. The present study is an attempt to analyse the overall trends in India’s current account balance during the period 1970-71 to 2010-11. The analysis shows that merchandise trade did not play any role towards the improvements of current account balance. In fact, it deteriorated the current account balance during the time span of the study. On the other hand, invisibles as a whole showed a very small negative growth rate which in effect is negligible. Income head has led buoyancy to current account balance. The overall positive growth of current account balance is basically an indication of good management of current account balance.

scholarly journals Exchange Rate Misalignment And Current Account Sustainability: The Australian Experience

2011 ◽  
Vol 2 (3) ◽  
Author(s):  
Francois Hermet ◽  
Jean-Francois Hoarau ◽  
Alain Nurbel
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
Current Account Deficit ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Real Effective Exchange Rate ◽  
Current Account Sustainability ◽  
Effective Exchange ◽  
Australian Experience ◽  
The Current Account

Australia’s persistent current account deficit engenders lively debates about its intertemporal solvency. This paper aims at showing whether there is really a misalignment of the $A real effective exchange rate ($A REER) and, if it is the case, at wondering about its real influence on the current account of Australia. The estimation of our empirical model puts forward a misalignment of the $A REER, but at the same time allows to emphasise the reduction in the magnitude of the misalignment since the adoption of the flexible exchange rate regime. Adding the stabilisation of the current account deficit, although recurrent, results in lending support to the Australian current account sustainability commonly held view.

scholarly journals Exchange rate regime choice

2006 ◽  
Vol 53 (3) ◽  
pp. 313-334 ◽  
Author(s):  
Emilija Beker
Keyword(s):  
Decision Making ◽  
Exchange Rate ◽  
Shelf Life ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Point Of View ◽  
External Factors ◽  
Advantages And Disadvantages ◽  
Complex Process ◽  
Highly Sensitive

The choice of an adequate exchange rate regime proves to be a highly sensitive field within which the economic authorities present and confirm themselves. The advantages and disadvantages of fixed and flexible exchange rate regimes, which have been quite relativized from the conventional point of view, together with simultaneous, but not synchronized effects of structural and external factors, remain permanently questioned throughout a complex process of exchange rate regime decision making. The paper reflects the attempt of critical identification of the key exchange rate performances with emphasis on continuous non-uniformity and (un)certainty of shelf life of a relevant choice.

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