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172
result(s)
External Stability, Real Exchange Rate Adjustment and the Exchange Rate Regime in Emerging-Market Economies
Staff Discussion Paper 2011-5
Olivier Gervais,
Lawrence L. Schembri,
Lena Suchanek
In emerging-market economies, real exchange rate adjustment is critical for maintaining a sustainable current account position and thereby for helping to reduce macroeconomic and financial instability.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Development economics,
Exchange rate regimes,
International topics
JEL Code(s):
F,
F3,
F31,
F32,
F4,
F41
Belief Dispersion and Order Submission Strategies in the Foreign Exchange Market
Staff Working Paper 2011-8
Ingrid Lo,
Stephen Sapp
This paper empirically examines how dispersions across investors beliefs influence traders order submission decisions in the foreign exchange market. Previous research has found that dispersion in traders beliefs regarding future macroeconomic announcements has a significant impact on both price dynamics and trading volume before the announcements in the foreign exchange and other financial markets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Market structure and pricing
JEL Code(s):
D,
D4,
G,
G1
November 19, 2010
Has Exchange Rate Pass-Through Really Declined? Some Recent Insights from the Literature
Building on an earlier Review article, the authors critically reassess the premise that exchange rate pass-through (ERPT) has declined in light of recent studies of the issue in the context of a dynamic stochastic general-equilibrium framework.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Economic models,
Exchange rates,
Inflation and prices,
Monetary policy framework
The Effect of Exchange Rate Movements on Heterogeneous Plants: A Quantile Regression Analysis
Staff Working Paper 2010-25
Ben Tomlin,
Loretta Fung
In this paper, we examine how the effect of movements in the real exchange rate on manufacturing plants depends on the plant's placement within the productivity distribution. Appreciations of the local currency expose domestic plants to more competition from abroad as export opportunities shrink and import competition intensifies.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Market structure and pricing,
Productivity
JEL Code(s):
D,
D2,
D21,
F,
F1,
L,
L1,
L16,
L6,
L60
Exchange Rate Fluctuations, Plant Turnover and Productivity
Staff Working Paper 2010-18
Ben Tomlin
In a small open economy fluctuations in the real exchange rate can affect plant turnover, and thus aggregate productivity, by altering the makeup of plants that populate the market. An appreciation of the local currency increases the level of competition in the domestic market as import competition intensifies and export opportunities shrink, forcing less productive plants from the market and compelling new entrants to be more competitive than they otherwise would have been.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Market structure and pricing,
Productivity
JEL Code(s):
D,
D2,
D21,
D24,
L,
L1,
L11
The Transmission of Shocks to the Chinese Economy in a Global Context: A Model-Based Approach
Staff Working Paper 2010-17
Jeannine Bailliu,
Patrick Blagrave
To better understand the dynamics of the Chinese economy and its interaction with the global economy, the authors incorporate China into an existing model for the G-3 economies (i.e., the United States, the euro area, and Japan), paying particular attention to modelling the exchange rate and monetary policy in China.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Exchange rate regimes,
International topics
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4,
F41
The Role of Expenditure Switching in the Global Imbalance Adjustment
Staff Working Paper 2010-16
Wei Dong
In theory, nominal exchange rate movements can lead to “expenditure switching” when they generate changes in the relative prices of goods across countries. This paper explores whether the expenditure-switching role of exchange rates has changed in the current episode of significant global imbalances.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
International topics
JEL Code(s):
F,
F3,
F4
Market Expectations and Option Prices: Evidence for the Can$/US$ Exchange Rate
Staff Discussion Paper 2010-2
Alejandro García,
Andrei Prokopiw
Security prices contain valuable information that can be used to make a wide variety of economic decisions. To extract this information, a model is required that relates market prices to the desired information, and that ideally can be implemented using timely and low-cost methods.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Econometric and statistical methods,
Exchange rates,
Financial markets
JEL Code(s):
C,
C0,
C00,
C02,
G,
G1,
G13
What Drives Exchange Rates? New Evidence from a Panel of U.S. Dollar Bilateral Exchange Rates
Staff Working Paper 2010-5
Jean-Philippe Cayen,
Donald Coletti,
René Lalonde,
Philipp Maier
We use a novel approach to identify economic developments that drive exchange rates in the long run. Using a panel of six quarterly U.S. bilateral real exchange rates – Australia, Canada, the euro, Japan, New Zealand and the United Kingdom – over the 1980-2007 period, a dynamic factor model points to two common factors.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rates
JEL Code(s):
J,
J3,
J31