No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect

2018 ◽  
Author(s):  
Yan Carriere-Swallow ◽  
Nicolas E. Magud ◽  
Juan F. Yépez
Keyword(s):  
Exchange Rate ◽  
Switching Effect ◽  
Exchange Rate Flexibility ◽  
Expenditure Switching

scholarly journals No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect

2018 ◽  
Vol 18 (213) ◽  
pp. 1
Author(s):  
Yan Carriere-Swallow ◽  
Nicolas Magud ◽  
Juan Yepez
Keyword(s):  
Exchange Rate ◽  
Switching Effect ◽  
Exchange Rate Flexibility ◽  
Expenditure Switching

scholarly journals EXCHANGE RATE FLEXIBILITY, CAPITAL MOBILITY AND INFLATION TRANSMISSION IN MALAYSIA

2009 ◽  
Vol 8 (1) ◽  
Author(s):  
Mansor H. Ibrahim
Keyword(s):  
Exchange Rate ◽  
Capital Mobility ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
International Transmission ◽  
Exchange Rate Flexibility ◽  
The Us ◽  
Small Economy ◽  
Inflation Transmission ◽  
Limited Exchange

The paper assesses the international transmission of inflation for a small economy, Malaysia, over three sample periods marked by different degrees of exchange rate flexibility. Contradicting to conventional wisdom of less pronounced foreign nominal influences under the flexible exchange rate regime, this research finds evidence that the inflation transmission from the US to Malaysia is strongest during the period marked by increasing exchange rate flexibility (i.e. 1993-1998). This research also observes significant inflation effects of exchange rate depreciation during the same period. While this research observe less pronounced impacts of the US during the limited exchange rate flexibility period (i.e. 1988-1999), the US influences are virtually absent during the recent fixed regime (i.e. 1998-2005). This research believes that the intensity of capital flows across the three periods might have explained the results.

The Determinants of Exchange Rate Flexibility: An Empirical Investigation

1979 ◽  
Vol 61 (3) ◽  
pp. 327 ◽  
Author(s):  
Paul Holden ◽  
Merle Holden ◽  
Esther C. Suss
Keyword(s):  
Exchange Rate ◽  
Empirical Investigation ◽  
Exchange Rate Flexibility

Inflation targeting and exchange rate regimes in emerging markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Christian Ebeke ◽  
Armand Fouejieu
Keyword(s):  
Exchange Rate ◽  
Emerging Markets ◽  
Inflation Targeting ◽  
Propensity Scores ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Marginal Effect ◽  
It Adoption ◽  
Exchange Rate Flexibility ◽  
The Exchange Rate

Abstract This paper investigates the effects of the adoption of inflation targeting (IT) on the choice of exchange rate regime in emerging markets (EMs), conditional on certain macroeconomic conditions. Using a large sample of EMs and after dampening the endogeneity of the adoption of IT using a selection on observables, we find that IT countries on average have a relatively more flexible exchange rate regime than other EMs. However, the flexibility of the exchange rate regime shows strong heterogeneity among IT countries. IT countries with low trade and financial openness and with a large share of external debt exhibit a lower exchange rate flexibility than others. Moreover, the marginal effect of IT adoption on the exchange rate flexibility increases with the duration of the IT regime in place, and with the propensity scores to adopt it.

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