Cointegration Tests of the Monetary Exchange Rate Model for Three High-Inflation Economies

1994 ◽  
Vol 26 (3) ◽  
pp. 396 ◽  
Author(s):  
Robert McNown ◽  
Myles S. Wallace
Keyword(s):  
Exchange Rate ◽  
Rate Model ◽  
Cointegration Tests ◽  
High Inflation

Cointegration Tests Of The Monetary Exchange Rate Model: The Canadian—U.S. Dollar, 1970 – 1994

1996 ◽  
Vol 10 (4) ◽  
pp. 83-97 ◽  
Author(s):  
Panayiotis F Diamandis ◽  
Dimitris A. Georgoutsos ◽  
Georgios.P Kouretas
Keyword(s):  
Exchange Rate ◽  
Rate Model ◽  
Cointegration Tests

COINTEGRATION TESTS OF THE MONETARY EXCHANGE RATE MODEL: THE CANADIAN - U.S. DOLLAR, 1970–1994

1996 ◽  
Vol 10 (4) ◽  
pp. 83-97 ◽  
Author(s):  
PANAYIOTIS F. DIAMANDIS ◽  
DIMITRIS A. GEORGOUTSOS ◽  
GEORGIOS P. KOURETAS
Keyword(s):  
Exchange Rate ◽  
Rate Model ◽  
Cointegration Tests

On the Exchange Rate Policy

2010 ◽  
pp. 21-28
Author(s):  
K. Yudaeva
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Policy ◽  
Institutional Changes ◽  
Crisis Period ◽  
Local Currency ◽  
High Inflation ◽  
Rate Policy ◽  
The Exchange Rate

The level of trust in the local currency in Russia is very low largely because of relatively high inflation. As a result, Bank of Russia during crisis times can not afford monetary policy loosening and has to fight devaluation expectations. To change the situation in the post-crisis period Russia needs to live through a continuous period of low inflation. Modified inflation targeting can help achieve such a result. However, it should be amended with institutional changes, particularly development of hedging instruments.

scholarly journals Liberia

2021 ◽  
Vol 21 (9) ◽  
Author(s):  
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Central Bank ◽  
Financial Management ◽  
Purchasing Power ◽  
Inclusive Growth ◽  
Public Financial Management ◽  
The Poor ◽  
Bank Financing ◽  
High Inflation

Restoring macroeconomic stability, providing a foundation for sustainable inclusive growth, and addressing weaknesses in governance remain the main objectives of this program. While allowing for a slight fiscal loosening to meet humanitarian needs during the COVID-19 pandemic, tight monetary policy, much improved public financial management, domestic revenue mobilization, and zero central bank financing have supported the administration’s efforts to achieve price and exchange rate stability. This has helped to preserve the purchasing power of the poor who were the most affected by the high inflation environment at the program’s inception. The authorities consider bringing the ECF-supported program back on track of utmost importance and are committed to their development plan, the Pro-Poor Agenda for Prosperity and Development (PAPD).

Does productivity drive the real exchange rate movements? A re-examination of the Balassa–Samuelson hypothesis

2020 ◽  
Vol 47 (5) ◽  
pp. 1093-1118
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Fixed Effects ◽  
Traditional Approach ◽  
Threshold Model ◽  
Annual Data ◽  
Content Type ◽  
Cointegration Tests ◽  
Increase In Productivity

PurposeThe primary purpose of this study is to examine whether the classification of industries into the tradable and nontradable matters for the Balassa–Samuelson (BS) effect.Design/methodology/approachThe study uses annual data for 38 countries from 1995 to 2014. To examine whether the classification of industries matter, the study proceeds with two approaches, that is, “traditional” and “benchmark”.FindingsFirst, by applying panel cointegration tests of Pedroni and Westerlund, the results validate the BS hypothesis. However, the coefficients of long-run elasticities show appreciation of real exchange rate (RER) due to increase in productivity in the case of “traditional approach”, whereas depreciation of RER in the case of “benchmark approach”. Second, by applying the Dumitrescu-Hurlin panel Granger causality test, the results reveal the bi-directional causality among RER and productivity for both the approaches. Further, to provide more insights, the study employs a fixed-effects panel threshold model. The results indicate that increase in productivity leads to both appreciation and depreciation of RER depending on threshold regimes.Practical implicationsThe study ascertains that the evidence of BS effect depends on the choice of approach considered. However, irrespective of the classification, there exists a BS effect beyond a threshold.Originality/valueAlthough the BS effect is well established in the literature; there is no study examining the importance of classification of industries at a disaggregated level. Furthermore, there is no consideration of threshold effects.

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