Exchange Rate, Foreign Borrowing and Economic Stability in Barbados

2011 ◽  
Author(s):  
Arindam Banik
Keyword(s):  
Exchange Rate ◽  
Economic Stability ◽  
Foreign Borrowing

Exchange Rate Regimes and Economic Stability

2010 ◽  
pp. 29-43
Author(s):  
S. Smirnov
Keyword(s):  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Regime ◽  
Exchange Rate Policy ◽  
Real Sector ◽  
Economic Stability ◽  
Exogenous Shocks ◽  
Floating Exchange Rate ◽  
Rate Policy ◽  
Managed Floating

The Bank of Russia intends to introduce inflation targeting policy and exchange rate free floating regime in three years. Exogenous shocks absorption which stabilizes the real sector of economy is usually considered to be one of the advantages of free floating exchange rate policy. However, our research based on the analysis of 25 world largest economies exchange rates and industrial production during the crisis of 2008-2009 does not confirm this hypothesis. The article also analyzes additional risks associated with free floating exchange rate regime in Russia and presents some arguments in favor of managed floating exchange rate regime.

scholarly journals Financial and economic stability as ‘two sides of a coin’

2015 ◽  
Vol 7 (4) ◽  
pp. 327-353 ◽  
Author(s):  
Muhammad Ali Nasir ◽  
Mushtaq Ahmad ◽  
Ferhan Ahmad ◽  
Junjie Wu
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Stability ◽  
Strong Association ◽  
Price Stability ◽  
Economic Stability ◽  
Data Set ◽  
Content Type ◽  
The Real ◽  
Stability And Instability

Purpose – The purpose of this paper is to provide a different context for considering issues of financial stability and instability, with reference to economic growth and price stability in particular. Design/methodology/approach – This paper pursued an empirical exploration of six pillars of financial stability, based on a data set for the UK extending from 1985 (Q1) to 2008 (Q2), through the construction of a vector error correction model, including an impulse response function analysis. Findings – The findings show a strong association between the financial and economic stability even in a non-crisis regime. This includes, for example, a strong association exists between the stock market and the real economy; exchange rate appreciation may not provide for long-term real economic growth; inflation does not contribute to real economic growth, both the sensitivity of the economy to yields and a significant lag in transitional effects from financial markets to the real sector; a positive role of credit creation within a non-crisis regime; exchange rate appreciation affects purchasing power; and potential points of linkage between sovereign debt activity and general price levels. Research limitations/implications – The findings should be considered in the context of a concept of the economy as fundamentally dynamic and subject to complex cumulative processes. Practical implications – The findings indicate there is a role for state oversight and intervention within a non-crisis regime based on the complexity of possible interactions that may undermine financial and price stability, with consequences for their association with economic growth. Originality/value – The study provides a new perspective for considering issues of financial stability and instability.

scholarly journals PENGARUH KEMAMPUAN, PENGALAMAN DAN DISIPLIN KERJA TERHADAP KINERJA KARYAWAN

2017 ◽  
Vol 4 (1) ◽  
pp. 99
Author(s):  
Eza Herlambang Taufik ◽  
Muhammad Harlie ◽  
Kurniaty Kurniaty
Keyword(s):  
Exchange Rate ◽  
Market Mechanism ◽  
Test Statistic ◽  
Economic Stability ◽  
Fixed Rate ◽  
Bretton Woods ◽  
The Exchange Rate ◽  
And Performance ◽  
Exchange Rate Changes ◽  
Two Stages

The evolution of the forex market is divided into two stages. World War IPeriod and the Bretton Woods period is included Fixed Rate Periodstage. At this stage, forex does not excite transactions because of exchange rate changes can only occur in a relatively narrow range. After a period of Bretton Woods, after the failure of Period Exchange Rates Remain in maintaining economic stability, forex transactions getting psyched. This occurs because the assessment of the exchange rate between countries be left entirely to the market mechanism. The market will determine whether the exchange rate is too expensive (over-valued) or too low (under-valued).This study aims to determine the effect of ability, experience and discipline together and partially on the performance forex trader in South Kalimantan. This type of research is quantitative method. The samples were obtained 56 votes. To determine the effect the ability, experience and discipline to the performance of the test statistic methods trader used multiple linear regression. Data processing was performed using IBM SPSS Statistics 23 program for Windows.Based on the results of the research show that together the ability, experience and discipline significant effect on the performance of forex traders in South Kalimantan. Partially, ability, experience and discipline positive and significant impact on the performance of forex traders in South Kalimantan.Keywords: Capability, Experience, Discipline and Performance

scholarly journals Exchange Rate Fluctuations & Economy of Pakistan, Time series Analysis (1989-2013)

2020 ◽  
Vol 8 (16) ◽  
pp. 474-489
Author(s):  
Muhammad Salih Memon ◽  
Raheem Bux Soomro ◽  
Sajid Hussain Mirani ◽  
Mansoor Ahmed Soomro
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Linear Regression ◽  
External Debt ◽  
Economic Policies ◽  
Economic Stability ◽  
Policy Makers ◽  
Independent Variables ◽  
Exchange Rate Fluctuations ◽  
Ministry Of Finance

Economic stability is remained on topmost priority of every country, and different measures were suggested by the researchers worldwide, by moving on the same track study was carried out to predict the currency valuation factors, data were collected from export promotion bureau, state bank of Pakistan, and ministry of finance for 25 years (1989-2013), by using linear regression; currency valuation as dependent variable, exports, changes in external debt, and total reserves as independent variables and concluded that only the exports of Pakistan is a right predictor of currency valuation of the country which policy makers must have incorporate in formation of economic policies and setting the targets before fiscal policy. 

scholarly journals Korzyści członkostwa w mechanizmie kursowym ERM II – alternatywy dla wprowadzenia euro w Polsce

2017 ◽  
Vol 1 (1) ◽  
pp. 27
Author(s):  
Magdalena Maria Redo
Keyword(s):  
Exchange Rate ◽  
Risk Premium ◽  
Inductive Inference ◽  
Positive Impact ◽  
Eastern European ◽  
Economic Stability ◽  
Floating Exchange Rate ◽  
Eastern European Countries ◽  
Rate Mechanism ◽  
The Eu

Aim: The aim of this paper is to outline the essential features of the EU Exchange Rate Mechanism - ERM II - including the past experience of its participants and to analyze the benefits arising from Poland’s accession to it.Research method: To this end, the method of inductive inference based on the comparative analysis of the experience of the present members of the ERM II system was employed.Findings: Participation in the ERM II system does not obligate its participants to join the eurozone; further, it allows for sustaining a floating exchange rate and guarantees help of the European Central Bank, thus reinforcing economic stability and credibility. This, in turn, should translate into the reduction of the investor’s risk premium and of the relatively high cost of capital in Poland, compared to other Central and Eastern European countries, and to facilitate access to that capital, thus having a positive impact on economic growthContribution to science: Considering the unwillingness of subsequent governments and citizens to adopt euro, this paper attempts to disseminate knowledge and reinforce the substantive arguments within this area at a time when, in spite of the crisis, the group of the EU countries outside the eurozone has been shrinking.

scholarly journals Indonesia Macro Economy Stability Pattern Prediction

2017 ◽  
Author(s):  
Andysah Putera Utama Siahaan
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Government Spending ◽  
Economic Stability ◽  
Monetary Policies ◽  
Economic Fundamentals ◽  
The Exchange Rate ◽  
Fiscal And Monetary Policy

This study examines whether economic stability in Indonesia capable predicted by the model Mundell-Fleming. Prediction proxy stability of the interaction of fiscal and monetary policy. During Indonesia's economic stability is largely determined by the strength of economic fundamentals, while economic fundamentals are strongly influenced by fiscal and monetary policies. Therefore flemming Mundell predicts how strong the economic stability in Indonesia ?, the statement in the analysis by using a long-term predictions are Vector Autoregression. Research findings indicate patterns of interaction predictions variety of fiscal and monetary policy, both short term, medium term and long term. It turned out that fiscal policies are derived from taxes are more effective than government spending to control economic growth, investment and inflation, but government spending is more effective to control the exchange rate. The monetary policy of interest rates more effectively control the exchange rate and inflation, while the money supply is more effective in controlling the growth of economy and investment.

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.

scholarly journals Can Devaluation Cause Perverse Effects if the Macroeconomy is Stable?

1994 ◽  
Vol 33 (4II) ◽  
pp. 1033-1042
Author(s):  
Syed Zahid Ali ◽  
W. M. Scartil
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Foreign Exchange Market ◽  
Correspondence Principle ◽  
Aggregate Demand ◽  
Balance Of Payments ◽  
Exchange Market ◽  
Economic Stability ◽  
Contractionary Devaluation ◽  
Necessary And Sufficient

The theoretical literature on devaluation has involved an appeal to the Correspondence Principle for many years. In the early work, it was noted that a devaluation would improye the trade balance only if the Marshall-Lerner condition held, and this restriction was also necessary and sufficient for stability in the foreign exchange market. Thus, the presumption of economic stability precluded the perverse outcome. More recently, analysts have viewed this early work as limited in that it considered only the aggregate demand effects of the exchange rate, and it did not consider more general specifications of dynamics. The more recent work for example, Buffie (1986) and Lizondo and Montiel (1989) involves intermediate imports and a fully specified aggregate supply sector, and this work recognises that there are at least two kinds of perverse results that can follow from devaluation: the balance of payments can worsen, and the level of employment can fall. (This latter outcome is the so-called contractionary devaluation possibility.)

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