Patrick Osakwe

Latest

Currency Fluctuations, Liability Dollarization, and the Choice of Exchange Rate Regimes in Emerging Markets

Staff Working Paper 2002-6 Patrick Osakwe
Traditional models of exchange rate regimes ignore the destabilizing effects of sharp and unanticipated exchange rate movements.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Exchange rate regimes JEL Code(s): E, E5, E52, F, F3, F31, F4, F41

Real Effects of Collapsing Exchange Rate Regimes: An Application to Mexico

Staff Working Paper 1999-10 Patrick Osakwe, Lawrence L. Schembri
This paper examines the impact of a collapsing exchange rate regime on output in an open economy in which shocks to capital flows and exports predominate. A sticky-price rational expectations model is used to compare the variability of output under the collapsing regime to that under alternative fixed and flexible regimes. Output is found to […]
Content Type(s): Staff Research, Staff Working Papers Topic(s): Exchange rates JEL Code(s): F, F3, F31, F4, F41
November 13, 1998

Currency crises and fixed exchange rates in the 1990s: A review

Currency crises in the 1990s, especially those in emerging markets, have sharply disrupted economic activity, affecting not only the country experiencing the crisis, but also those with trade, investment, and geographic links. The authors review the theoretical literature and empirical evidence regarding these crises. They conclude that their primary cause is a fixed nominal exchange rate combined with macroeconomic imbalances, such as current account or fiscal deficits, that the market perceives as unsustainable at the prevailing real exchange rate. They also conclude that currency crises can be prevented through the adoption of sound monetary and fiscal policies, effective regulation and supervision of the financial sector, and a more flexible nominal exchange rate.

Evaluating Alternative Measures of the Real Effective Exchange Rate

Staff Working Paper 1998-20 Robert Lafrance, Patrick Osakwe, Pierre St-Amant
This paper discusses the merits and shortcomings of alternative price indices used in constructing real effective exchange rate indices and examines the effects of different weighting schemes. It also compares selected measures of the real effective exchange rate in terms of their ability to explain movements in Canadian net exports and real output. The paper […]

Fundamentals, Contagion and Currency Crises: An Empirical Analysis

Staff Working Paper 1998-10 Mark Kruger, Patrick Osakwe, Jennifer Page
This paper examines the determinants of currency crises in Latin America, Asia and Africa. It asks two basic questions: (a) Are currency crises linked to economic fundamentals? and; (b) Is there any evidence of a contagion effect after controlling for the potential effects of economic fundamentals? Using pooled annual data for 19 developing countries spanning […]
Content Type(s): Staff Research, Staff Working Papers Topic(s): Exchange rates JEL Code(s): F, F3

See More

Follow the Bank