Why is the business-cycle behaviour of fundamentals alike across exchange-rate regimes?

2001 ◽  
Vol 6 (4) ◽  
pp. 401-419 ◽  
Author(s):  
Luca Dedola ◽  
Sylvain Leduc
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
Exchange Rate Regimes ◽  
The Business Cycle

BUY NATIONAL AND THE BUSINESS CYCLE

2015 ◽  
Vol 20 (5) ◽  
pp. 1196-1218 ◽  
Author(s):  
Mario Larch ◽  
Wolfgang Lechthaler
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
Real Exchange Rate ◽  
Domestic Economy ◽  
Similar Magnitude ◽  
Fiscal Multipliers ◽  
Foreign Products ◽  
Public Consumption ◽  
The Business Cycle ◽  
Domestic Products

By concentrating a stimulus on the domestic economy, Buy National clauses are argued to lead to higher fiscal multipliers. We show that this argument falls short. Although it is true that domestic demand for domestic goods is increased, at the same time foreign demand for domestic goods is reduced by adverse changes in the real exchange rate. The two effects are of similar magnitude, so that Buy National clauses do not lead to a stronger stimulus to GDP. Apart from that, restricting the stimulus to domestic products makes the stimulus more expensive, because cheap foreign products are ignored. Consequently, real public consumption is lowered by Buy National clauses.

scholarly journals Exchange Rate Pass-Through Over the Business Cycle in Singapore

2011 ◽  
Vol 11 (141) ◽  
pp. 1 ◽  
Author(s):  
Siang Meng Tan ◽  
Joey Chew ◽  
Sam Ouliaris ◽  
◽  
◽  
...  
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
The Business Cycle ◽  
Pass Through ◽  
Exchange Rate Pass Through

scholarly journals Exchange Rates Under The East Asia Dollar Standard: The Future Of East Asian Economies

2011 ◽  
Vol 6 (3) ◽  
Author(s):  
Ordean Olson
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
East Asia ◽  
East Asian ◽  
Asian Countries ◽  
Economic Stability ◽  
Dollar Exchange Rate ◽  
Asian Economies ◽  
The Business Cycle ◽  
East Asian Economies

The effects of fluctuations in the yen/dollar exchange rate on the business cycle of the smaller East Asian economies are examined in this paper. The cointegration error-correction model is employed to examine the nature of the interrelationship between the yen/dollar exchange rate and the economic stability of the East Asian countries. The empirical results reveal strong and lasting effects of changes in the yen/dollar exchange rate on the economic income and exchange rate stability of the East Asian countries. The results also indicate that stabilizing the yen/dollar exchange rate with the East Asian business cycle would benefit Japan as well as the economies of East Asia.

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