Austerity and Recovery: Exchange Rate Regime Choice, Economic Growth and Financial Crises

2015 ◽  
Author(s):  
Martin T. Bohl ◽  
Philip Michaelis ◽  
Pierre L. Siklos
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Crises ◽  
Exchange Rate Regime

Austerity and recovery: Exchange rate regime choice, economic growth, and financial crises

2016 ◽  
Vol 53 ◽  
pp. 195-207 ◽  
Author(s):  
Martin T. Bohl ◽  
Philip Michaelis ◽  
Pierre L. Siklos
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Crises ◽  
Exchange Rate Regime

scholarly journals Exchange Rate Regime and Economic Growth in Asia: Convergence or Divergence

2020 ◽  
Vol 13 (1) ◽  
pp. 9
Author(s):  
Dao Thi-Thieu Ha ◽  
Nga Thi Hoang
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Generalized Method Of Moments ◽  
Asian Countries ◽  
Quantitative Evidence ◽  
The Exchange Rate ◽  
Changing Economy ◽  
The Impact ◽  
Unbalanced Panel Data

Exchange rates and exchange rate regimes in a constantly changing economy have always attracted much attention from scholars. However, there has not been a consensus on the effect of exchange rate on economic growth. To determine the direction and magnitude of the impact of an exchange rate regime on economic growth, this study uses the exchange rate database constructed by Reinhart and Rogoff. This study also employs the GMM (Generalized Method of Moments) technique on unbalanced panel data to analyze the effect of the exchange rate regime on economic growth in Asian countries from 1994 to 2016. Empirical results suggest that a fixed exchange rate regime (weak flexibility) will affect economic growth in the same direction. As such, results from the study will serve as quantitative evidence for countries in the Asian region to consider when selecting a suitable policy and an exchange rate regime to attain high economic growth.

The Anatomy of Financial Crises and the Role of Monetary Policy

2017 ◽  
Author(s):  
Pierre L. Siklos
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Financial Crises ◽  
Exchange Rate Regime ◽  
Cautionary Tale ◽  
Current Form ◽  
The Exchange Rate ◽  
Crisis Conditions ◽  
Escape Clauses

Crises come in a variety of forms. A focus on the incidence of financial crises underemphasizes the cross-border element in financial crises. How important is the exchange-rate regime in monetary policy strategies? Is the EMU experience a cautionary tale? The exchange-rate regime matters less than we think because financial globalization has conspired to effectively reduce the scope for an independent monetary policy. The EMU is unlikely to survive in its current form. Politicians seek coordinated solutions in a system that is built on policy cooperation. International coordination is only practical in emergency or crisis conditions. Cooperation is desirable only if common standards or objectives are combined with escape clauses to render them realistic. This is a goal worth pursuing. Exiting from post-GFC is a reminder that the focus on policy spillovers is misplaced. Business cycles are rarely synchronized and there cannot be a one-size fits all monetary policy.

scholarly journals The Real Exchange Rate Regime and Economic Growth in Ghana

2020 ◽  
Vol 16 (10) ◽  
Author(s):  
Osei Enoch Kwame ◽  
Adubofour Isaac ◽  
Adamu Sumaila ◽  
Dadzie Benjamin Mensah
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Regime ◽  
The Real

scholarly journals Continental Drift: Is the Euro’s Fixed Exchange Rate Regime Undermining Cohesion Policy?

2020 ◽  
pp. 1-25
Author(s):  
Christopher James Day
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Monetary Union ◽  
European Monetary Union ◽  
Exchange Rate Regime ◽  
Continental Drift ◽  
Nominal Exchange Rate ◽  
Cohesion Policy ◽  
European Monetary ◽  
Factor Markets

The ravages of two world wars and a desire to develop a politically and economically united Europe led to the establishment of the Eurozone in January 1999. The European Monetary Union was a grand experiment that brought 11 European nations under a single currency, the euro. Complexities associated with the implementation of effective fiscal, budgetary and banking coordination left the bloc vulnerable to asymmetries in the productivity and factor markets of its members. This article analyses how adoption of the euro, which prevented nominal exchange rate adjustments, impacted on the competitiveness and real economies of member states, thereby undermining the European Union’s key priority of creating balanced economic growth and productivity.

scholarly journals Monetary Policy Convergence within the EAC: A Focus on Interest Rate and Exchange Rate

2021 ◽  
Vol 7 (5) ◽  
pp. p49
Author(s):  
Michael Oloo ◽  
Mary Mbithi ◽  
Daniel Abala
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Monetary Union ◽  
Exchange Rate Regime ◽  
East African Community ◽  
Common Trade ◽  
The Impact

This study was conducted to establish whether the key variables in monetary policy transmission mechanisms are converging within the East African Community. This region is eyeing having an economic union and subsequently a monetary union hence the significance of investing developments in the monetary sector. The analysis used panel data from the year 2005 to 2020 for five EACs. To test for convergence of interest rates and exchange rates, the analysis employed; unit-root test, sigma convergence, co-integration tests, and finally used the panel fixed effect model to establish the impact of the two variables on the GDP. The analysis shows that in the short run, there is no convergence in interest rates but there is convergence in exchange rates. However, in the long run, the two monetary policy variables are co-integrated indicating that the region is doing well in terms of integration in the financial sector in their preparation to form a common trade area and monetary union. The analysis of the impact of the two variables on economic growth shows that only the exchange rate is significant, therefore, the region should strive to foster a stable exchange rate regime to realize increased economic growth.

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