Uncertainty, Currency Areas and the Exchange Rate System

Economica ◽  
1972 ◽  
Vol 39 (156) ◽  
pp. 432 ◽  
Author(s):  
Robert Z. Aliber
Keyword(s):  
Exchange Rate ◽  
Rate System ◽  
Exchange Rate System ◽  
The Exchange Rate

scholarly journals Measuring the relationship between the balance of payments and the exchange rate - A case study of a group of Arab countries during the period 2000/2016-

2018 ◽  
Vol 2 (2) ◽  
pp. 44-66
Author(s):  
Abd Elouahid SERARMA ◽  
Newfel BAALOUL
Keyword(s):  
Exchange Rate ◽  
Empirical Studies ◽  
Arab Countries ◽  
Balance Of Payments ◽  
Rate System ◽  
Exchange Rate System ◽  
Independent Variable ◽  
The Exchange Rate ◽  
The Relationship

The Objective of this study is to examine the effect of exchange rate system on the balance of payments, with a case study of a group of Arab countries. First we shed light on the most important theoretical and empirical studies of exchange rate systems and their macroeconomics effects in one hand. In the other hand we study a case of six oil exporting Arab countries. To achieve this purpose we adopted a panel data and run an econometric model to examine the relationships between the variables during the period 2000 to 2016. The study concluded that there is a significant positive correlation between the exchange rate as an independent variable and the balance of payments as a dependent variable, and there is no deference in the effects of the exchange system in the study of six Arab economies.

scholarly journals Does Exchange-Rate Stability Increase Trade and Welfare?

2000 ◽  
Vol 90 (5) ◽  
pp. 1093-1109 ◽  
Author(s):  
Philippe Bacchetta ◽  
Eric van Wincoop
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Monetary Shocks ◽  
Price Setting ◽  
Power Parity ◽  
Rate System ◽  
Monetary Policy Rules ◽  
Separable Preferences ◽  
Exchange Rate System ◽  
The Exchange Rate

This paper develops a simple general-equilibrium framework to study the effect of the exchange-rate system on trade and welfare. An important feature of the model is deviations from purchasing-power parity, caused by rigid price setting in buyers' currency. In a benchmark model with separable preferences and only monetary shocks, trade is unaffected by the exchange-rate system, consistent with most evidence. In general, both trade and welfare can be higher under either exchange-rate system, depending on preferences and on the monetary-policy rules followed under each system. There is no one-to-one relationship between the levels of trade and welfare across exchange-rate systems. (JEL F31, F33, F41)

Reforming the Exchange-Rate System

SAIS Review ◽  
1986 ◽  
Vol 6 (2) ◽  
pp. 1-9
Author(s):  
C. Fred Bergsten
Keyword(s):  
Exchange Rate ◽  
Rate System ◽  
Exchange Rate System ◽  
The Exchange Rate

scholarly journals Macroeconomic Fundamentals and the Exchange Rate Volatility: Empirical Evidence From Somalia

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989884
Author(s):  
Mohamed Ibrahim Nor ◽  
Tajul Ariffin Masron ◽  
Tariq Tawfeeq Yousif Alabdullah
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Regulatory Authority ◽  
Exchange Rate Volatility ◽  
Rate System ◽  
Macroeconomic Factors ◽  
Post Conflict ◽  
Macroeconomic Fundamentals ◽  
Exchange Rate System ◽  
The Exchange Rate

The purpose of this research is to investigate the effect of macroeconomic factors on the volatility of Somalia’s unregulated exchange rates. While utilizing the EGARCH (exponential generalized autoregressive conditional heteroskedastic) model, this study found that the unregulated exchange rate volatility of Somalia is influenced by its own shocks and the macroeconomic factors. This study implies that although Somali shilling circulated without regulatory authority for the period of the statelessness, this circulation has been accompanied by volatile exchange rates. This phenomenon makes this study an appealing work that should be pursued further. Hence, this study contributes notably to the process of reforming the exchange rate system and the monetary policy of the post-conflict economy of Somalia. In addition, the results of this study imply that even in times of war and lawlessness the laws of economics do not change completely.

Exchange rate system, policy distortions, and the maintenance of trade dependence

1982 ◽  
Vol 36 (4) ◽  
pp. 715-739 ◽  
Author(s):  
Bruce E. Moon
Keyword(s):  
Exchange Rate ◽  
Developed Countries ◽  
The United States ◽  
Exchange Rate Policy ◽  
Rate System ◽  
Rate Policy ◽  
Exchange Rate System ◽  
The Exchange Rate ◽  
Actual Exchange ◽  
External Actors

Two central tenets of dependency theory are supported by the analysis of the causes and consequences of the exchange rate policies of less developed countries (LDCs). First, one critical component—high partner trade concentrations—is recreated by the choice of exchange arrangements. Specifically, nations that have maintained a dollar peg have significantly increased their concentration of trade with the United States since 1973. This occurs because of the exchange rate risk present in any transaction that involves a dollar-pegged currency and any other major currency against which it floats. Second, such an effect produces incentives for internal and external actors with an interest in the partner composition of future trade to influence the exchange rate policy of LDCs. Various components of the dependence situation that strengthen the role of such actors—partner trade concentrations, treaty arrangements, foreign aid, etc.—are significantly correlated with actual exchange rate practice. Thus, exchange rate policy is a linch-pin mechanism, in that it both manifests distortions produced by dependency and further acts to recreate a vital aspect of the situation that gave rise to the distortions.

scholarly journals PERKEMBANGAN KEBIJAKAN NILAI TUKAR RUPIAH DAN PERTUMBUHAN EKONOMI INDONESIA

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Fitriyani Fitriyani ◽  
Diana Sapha ◽  
Cut Zakia Rizki ◽  
Nur Aidar ◽  
Ferayanti Ferayanti ◽  
...  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Exchange Rate ◽  
Exchange Rate Regimes ◽  
Descriptive Analysis ◽  
Annual Data ◽  
Analysis Model ◽  
Rate System ◽  
Exchange Rate System ◽  
The Exchange Rate

This study aims to analyze the development of exchange rate system, inflation and economic growth policies in Indonesia. The model used is a descriptive analysis model by dividing 3 exchange rate regimes from 1978 to 2018. The data used is annual data sourced from the world bank, the federal reserve economic data, and Bank Indonesia. The results showed that the exchange rate system in Indonesia is fluctuated throughout the year. This has an impact on economic growth rate and inflation which is also unstable. Therefore, Bank Indonesia must stabilize the rupiah exchange rate. For further research, it is also advisable to further analyze how the 3 periods of the exchange rate regimes work effectively in transmitting monetary policy through the exchange rate channel to macro variables.Key Words: Exchange rate, growth rate, inflation

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