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Searching with a thematic focus on International capital flows exchange rates and currency, International capital flows, Finance policy
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Mexican peso crisis: the foreseeable and the surprise (Brookings)
Brookings Institution, 1995The financial debacle that followed the Mexican devaluation in December 1994 left many analysts, investors and observers bewildered by its magnitude. This paper argues that the causes of the devaluation are quite different from the causes of the crisis, so different that the financial crisis was partly caused by the devaluation itself.DocumentThe Real Exchange Rate in India: Determinants and Targeting ( Patel / Srivastava / CEP)
Centre for Economic Performance, London, 1997The paper studies the behaviour of the real exhange rate (RER) in India. The first part investigates the role of important macroeconomic (behaviour and policy) variables in explaining the movement of the RER. It is found that the investment-gdp ratio, the overall fiscal deficit of the public sector and the nominal exchange rate are important explanatory variables.DocumentFiscal Imbalances, Capital Inflows, and the Real Exchange Rate: The Case of Turkey
International Monetary Fund Working Papers, 1997This paper examines the links between fiscal policy, uncovered interest rate differentials, the real exchange rate, and capital inflows in Turkey since the late 1980s. The first part reviews recent macroeconomic developments in Turkey. It shows that capital inflows coincided with a period of significant deterioration in fiscal balances, high interest rates, and an appreciating real exchange rate.DocumentWhat Determines Real Exchange Rates? The Long and Short of It
International Monetary Fund Working Papers, 1997Recently, there has been a revival of interest in modeling the long-run behavior of nominal bilateral exchange rates using fundamentals such as relative prices.DocumentForeign Exchange Risk Premium: Does Fiscal Policy Matter? Evidence from Italian Data
International Monetary Fund Working Papers, 1997Economists and policymakers have long been interested in the effects of fiscal policies on exchange rates. In particular, for countries with large fiscal imbalances, it is often contended that fiscal policy may affect exchange rates through a .risk premium channel,.DocumentExternal Stability Under Alternative Nominal Exchange Rate Anchors: An Application to the GCC Countries
International Monetary Fund Working Papers, 1997All member countries of the GCC effectively peg their currencies to the U.S. dollar.* This policy has been guided by the broad objectives of minimizing exchange risks for the private sector and ensuring stable exchange rates among the GCC member countries.DocumentThe Exchange Rate in a Dynamic-Optimizing Current Account Model with Nominal Rigidities: A Quantitative Investigation
International Monetary Fund Working Papers, 1997During the last 15 years, much effort was devoted to developing open-economy business cycle models with explicit microfoundations. With rare exceptions (discussed below), that literature considered models without money or in which money is neutral (or almost neutral), with prices and wages assumed fully flexible.DocumentExchange Rate Regimes and Location
International Monetary Fund Working Papers, 1997This paper investigates the effects of fixed versus flexible exchange rate regimes on the location choices of firms and on the degree of specialization of countries. In a two-country two-differentiated-goods monetary model, demand, supply, and monetary (and exchange rate) shocks arise after wages are set and prices are optimally chosen.DocumentCharacteristics of the Euro, the Demand for Reserves, and Policy Coordination Under EMU
International Monetary Fund Working Papers, 1997The euro.s economic base, as measured by the combined GDP of the currency area, will rival that of the dollar. Despite a monetary policy oriented toward price stability and backed by restrictive fiscal policies, the euro will face considerable initial uncertainties.Pages
