scholarly journals Denmark's Fixed Exchange Rate Regime and the Delayed Recovery from the Global Financial Crisis: A Comparative Macroeconomic Analysis

2014 ◽  
Author(s):  
Thomas Barnebeck Andersen ◽  
Nikolaj Malchow-MMller
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Exchange Rate Regime ◽  
Macroeconomic Analysis ◽  
Fixed Exchange Rate ◽  
Delayed Recovery ◽  
The Global Financial Crisis

ASYMMETRIC IMPACT OF EXCHANGE RATE CHANGES ON THE TRADE BALANCE: DOES GLOBAL FINANCIAL CRISIS MATTER?

2018 ◽  
Vol 13 (04) ◽  
pp. 1850015 ◽  
Author(s):  
BISHARAT HUSSAIN CHANG ◽  
SURESH KUMAR OAD RAJPUT ◽  
NIAZ HUSSAIN GHUMRO
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Trade Balance ◽  
Global Financial Crisis ◽  
Sample Period ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Long Run ◽  
Exchange Rate Changes ◽  
The Global Financial Crisis

Recent studies have been mainly focusing on whether exchange rate changes have a symmetric or asymmetric effect on the trade balance. We revisit this question in the context of US and further extend previous studies by determining whether the relationship between these underlying variables change as a result of the global financial crisis. We use both linear autoregressive distributed lag (ARDL) and non-linear ARDL models for the whole sample period as well as in the pre- and post-crisis periods. Findings suggest that exchange rate changes have an asymmetric effect on the trade balance; however, the asymmetric behavior of the underlying variables change as a result of the financial crisis. In the short run, exchange rate asymmetrically affects trade balance in the post-crisis period only. In the long run, there is an asymmetric effect for all sample periods, where only the devaluation of currency significantly affects the trade balance when the whole sample period is selected. On the other hand, in pre- and post-crisis periods, only appreciation of currency significantly affects the trade balance. This study indicates that determining the asymmetric relationship without considering the global financial crisis may lead to spurious results.

scholarly journals DAMPAK KRISIS KEUANGAN GLOBAL TERHADAP PEREKONOMIAN DAERAH

2010 ◽  
Vol 12 (3) ◽  
Author(s):  
Andry Prasmuko ◽  
Donni Fajar Anugrah
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Aggregate Demand ◽  
Major Effect ◽  
Macro Model ◽  
Simulation Results ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Simultaneous Model

This paper discusses the impact of global financial crisis to the Indonesia's economy by using the simultaneous macro model approach.The analysis and simulation results of such model show that the impact of the global financial crisis is dominantly distributed through the trade line, which decreases the regional output.To the components of aggregate demand, the movement of exchange rate has major effect to the exports and imports, whereas to the consumption and investment, it gives relatively small effect.The impact of external shock, which causes the depreciation of Rupiah, is relatively small to the increase of inflation.JEL classification: C32, E44Keywords:Financial crisis, simultaneous model, Indonesia.

scholarly journals The Exchange Rate Effects of Macro News after the Global Financial Crisis

2017 ◽  
Vol 2017 (305) ◽  
Author(s):  
Yin-Wong Cheung ◽  
◽  
Rasmus Fatum ◽  
Yohei Yamamoto ◽  
◽  
...  
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Rate Effects ◽  
Macro News ◽  
The Exchange Rate ◽  
The Global Financial Crisis

scholarly journals Dynamic Perspective of Trade Balance: Evidence from Southeast Asia before the Global Financial Crisis of 2008

2019 ◽  
Vol 4 (1) ◽  
pp. 58-67
Author(s):  
Putu Mahardika Adi Saputra
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Southeast Asia ◽  
Trade Balance ◽  
Bilateral Trade ◽  
Global Financial Crisis ◽  
Income Effect ◽  
Cash Balance ◽  
J Curve ◽  
The Global Financial Crisis

Objective - This paper studies the influence of some determinants of trade balance for Southeast Asia countries in dynamics perspective before the global financial crisis of 2008. Methodology/Technique - Based on quarterly data (1980q1 to 2007q3), the investigation is carried out using VECM. Findings - The results show that in the long run: (i) income effect is found to be dominant in determining the change in trade balance; (ii) the cash balance effect does influence bilateral trade; (iii) bilateral trade is affected by exchange rate movements. Further, the effect of small economies are suspected to be present in Southeast Asia region. Meanwhile, in the short run: (i) the cash balance effect plays a major role in influencing trade balance improvement; (ii) compared to the cash balance effect, the income effect is present with slightly less contribution; (iii) the exchange rate effect is observed in the analysis, while a J-curve phenomenon exists in minor cases. Novelty - This paper concludes that in the long term, income effect is found to be dominant in determining the change in trade balance. Type of Paper: Empirical. Keywords: Export; Trade Balance; VECM; J-curve; Income Effect. JEL Classification: C33, F14, O14. DOI: https://doi.org/10.35609/jber.2019.4.1(7)

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