Dynamic Analysis of the Exchange Rate Regime: Policy Implications for Emerging Countries in East Asia

2015 ◽  
Vol 19 (3) ◽  
pp. 624-637 ◽  
Author(s):  
Naoyuki Yoshino ◽  
Sahoko Kaji ◽  
Tamon Asonuma
Keyword(s):  
Exchange Rate ◽  
Dynamic Analysis ◽  
East Asia ◽  
Exchange Rate Regime ◽  
Emerging Countries ◽  
Policy Implications ◽  
The Exchange Rate

Exchange Rate Volatility in Emerging Markets:The Chilean Case

2007 ◽  
pp. 87-100
Author(s):  
Juan R. Castro
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
External Debt ◽  
Exchange Rate Volatility ◽  
Arch Model ◽  
Macroeconomic Shocks ◽  
Domestic Debt ◽  
Domestic Credit ◽  
The Face ◽  
The Exchange Rate

The document conducts an empirical investigation on the volatility of the Chilean exchange rate regime, using a model of Objective Zones. Through the use of the ARCH model, the document tests the volatility of the exchange rate in the presence of different levels of international reserves and other macroeconomic shocks. The results show that domestic credit, domestic debt and external debt have the greatest impact on the volatility of the variables studied, especially when compared with other fundamental variables. The variance of the exchange rate is heterosedastic but it is not persistent, which implies that the exchange rate is stable, probably when it oscillates between two bands. The volatility of the exchange rate fluctuates to a greater extent in the face of changes in internal and external debt, than with the other variables used.

scholarly journals Euroisation in the Western Balkans: The Evidence for Macedonian Economy

2017 ◽  
Vol 8 (2) ◽  
pp. 307-315
Author(s):  
Tatjana Boshkov ◽  
Zoran Temelkov ◽  
Aleksandra Zezova
Keyword(s):  
Exchange Rate ◽  
Foreign Currency ◽  
Exchange Rate Regime ◽  
Extended Period ◽  
Emerging Countries ◽  
Western Balkans ◽  
Balkan Countries ◽  
High Level ◽  
Benefits And Costs ◽  
Prudential Policy

Abstract Euroisation is a problem with a long history and usually persistent phenomena. The high level of euroisation is common in emerging countries in Europe as in the countries with fixed exchange rate regime. In Western Balkan countries have been identified a strong presence of foreign currency. The fact is that transactions could take a place outside of the banking channels, which is not a case for FX-loan and FX-deposit ratios. It’s difficult to measure how much foreign money is in the economy. This is the reason to use data for currency substitution index. This index is high for Macedonia indicating high level of real euroisation. After the crisis, the levels are reduced (lower remittances from abroad). Considering the exchange rate experience of Macedonia, it’s likely to remain significantly euroised country for an extended period. IMF considers appropriate strategy which provides support for the gradual de-euroisation in maintaining macro-prudential policy and development of the domestic market. Another important strategy is the maintenance of prudent policies that mitigate foreign currency risks. The paper shows the persistence of FX mainly in Macedonian economy and discusses about benefits and costs, in light of the recent economic crisis.

scholarly journals Does the Exchange Rate Regime Affect the Economy?

1993 ◽  
Vol 75 (4) ◽  
Author(s):  
Terry C. Mills ◽  
Geoffrey E. Wood
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
The Exchange Rate
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