EXCHANGE RATE MOVEMENT OF DEVELOPING COUNTRIES LIKE INDIA: AN ALTERNATIVE THEORETICAL FRAMEWORK

2016 ◽  
Author(s):  
Atulan Guha
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Theoretical Framework ◽  
Exchange Rate Movement

The influence of inflation targeting on the pass-through effect of the exchange rate

2018 ◽  
pp. 70-84
Author(s):  
Ph. S. Kartaev ◽  
Yu. I. Yakimova
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Regime ◽  
Short And Long Term ◽  
The Exchange Rate ◽  
Pass Through ◽  
The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

Liberal development, 1925–46

2017 ◽  
Author(s):  
John Toye
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Exchange Rate ◽  
Developing Country ◽  
Trade Protection ◽  
Communist Country ◽  
Economic Policies ◽  
Government Finance ◽  
Soviet Government ◽  
Experimental Economic

Keynes’s writings are often disregarded in the context of economic development, overlooking that Russia was a developing country in his lifetime. He wrote about the experimental economic techniques that the Soviet government employed. He visited Russia three times and wrote A Short View of Russia in which he explained and criticized Bolsheviks’ policy of export and import monopolies, an overvalued exchange rate, inflationary government finance, and the subsidization of industry. These were policies that many developing countries adopted after decolonization. Keynes’s conclusion was that they were inefficient and that ‘bourgeois economics was valid in a communist country’. Did Keynes change his mind in the 1930s? If anything, he grew more harshly critical of Soviet economic policies and carefully distinguished them from his own endorsement of moderate trade protection and government supplementary investment in times of depression.

Real Exchange Rate Overvaluation and WTO Dispute Initiation in Developing Countries

2016 ◽  
Vol 70 (4) ◽  
pp. 797-821 ◽  
Author(s):  
Timm Betz ◽  
Andrew Kerner
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Trade Policy ◽  
Foreign Currency ◽  
Real Exchange Rates ◽  
Trade Disputes ◽  
Trade Dispute ◽  
Competitive Disadvantage ◽  
Dispute Initiation ◽  
Foreign Currency Debt

AbstractWhy and when do developing countries file trade disputes at the World Trade Organization (WTO)? Although financial conditions have long been considered an important driver of trade policy, they have been largely absent from the literature on trade disputes. We argue that developing country governments bring more trade dispute to the WTO when overvalued real exchange rates put exporters at a competitive disadvantage. This dynamic is most prevalent in countries where large foreign currency debt burdens discourage nominal currency devaluations that would otherwise serve exporters’ interests. Our findings provide an explanation for differences in dispute participation rates among developing countries, and also suggest a new link between exchange rate regimes and trade policy.

scholarly journals OIL PRICE BEHAVIOUR, EXCHANGE RATE MOVEMENT AND THE COVID-19 PANDEMIC IN NIGERIA: ANALYSIS OF THE FIRST THREE QUARTERS OF 2020

2021 ◽  
Vol 6 (1) ◽  
pp. 51-61
Author(s):  
Jimoh O. Saka
Keyword(s):  
Exchange Rate ◽  
Rate Increase ◽  
Discharge Rate ◽  
Oil Price ◽  
Fatality Rate ◽  
Test Statistic ◽  
Exchange Rate Movement ◽  
The Third ◽  
Corona Virus ◽  
Long Run

This paper evaluates the response of oil price and exchange rate to the corona virus pandemic shock aside from the link between oil price and exchange rate for the first three quarters of 2020 in Nigeria. The theoretical framework emanates from the informal approach and the terms of trade channels. Using VAR cointegration approach, results show existence of long run relationship among the oil price, exchange rate movement and the corona virus indicators based on Max-Eigen and Trace test statistic. End of first quarter oil price, discharge rate and fatality rate negatively relate with current exchange rate. First quarter exchange rate and fatality rate positively relates to oil price behaviour in the third quarter while end of first quarter discharge rate increase fosters oil price decline. First quarter spread rate increase gradually reduces oil demand and the price in the third quarter. All corona virus indicators and exchange rate variable Granger Cause current oil price. Diversification is key to widen export base and increase foreign exchange and stability. Policy measures to sustain the economy in the post COVID-19 and beyond are necessary for long term development.

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