Exchange-Rate Policies in Emerging Countries: Eleven Empirical Regularities From Latin America and East Asia

Edwards, Sebastián

doi:10.1007/s11079-011-9206-4

Cited by 25 publications

(18 citation statements)

References 58 publications

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“…71 and 99). Similar conclusion has been drawn in more recent studies by Edwards (2011) and Erdem and Özmen (2015). They found that the impact of external shocks on economic activity is less pronounced in economies under flexible exchange rate regimes.…”

Section: Introductionsupporting

confidence: 89%

Insulating property of the flexible exchange rate regime: A case of Central and Eastern European countries

Dąbrowski

Wróblewska

2020

International Economics

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We examine the insulating property of flexible exchange rate in CEE economies using the fact that they have adopted different regimes. A set of Bayesian structural VAR models with common serial correlations is estimated on data spanning 1998q1-2015q4. The long-term identifying restrictions are derived from a macroeconomic model. We find that irrespective of the exchange rate regime output is driven mainly by real shocks. Its reactions to these shocks, however, are substantially stronger under less flexible regimes, whereas the responses to nominal shocks are similar. Hence, the insulating property of flexible regimes can reduce the costs from economic shocks.

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Section: Introductionsupporting

confidence: 89%

Insulating property of the flexible exchange rate regime: A case of Central and Eastern European countries

Dąbrowski

Wróblewska

2020

International Economics

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“…The impact of different variables is episodic, varies from country to country and is dependent on the economic conditions within a country. Results not only depend on the sample under study but also on research methodologies applied and the frequency of data used (Auboin and Ruta, 2012;Edwards, 2011).…”

Section: Jfep 121mentioning

confidence: 99%

Granger-causes of the Ringgit-US dollar exchange rate after 2005

Kan

Leibrecht

2019

JFEP

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Purpose This study aims to investigate Granger-causal relations between the Ringgit-USD exchange rate and selected domestic and international economic variables after the flotation of the Ringgit beginning with 25 July 2005. Design/methodology/approach The study uses lag-augmented vector autoregression (LA-VAR) developed by Toda and Yamamoto (1995) to test for Granger-causality. To visualize short-run dynamics in the Malaysian Ringgit (RM)-USD exchange rate to shocks in predictor variables, generalized impulse-response functions (Pesaran and Shin, 1998) are derived from the estimated LA-VAR models. Findings Results based on LA-VAR generalized impulse responses and data measured in daily frequency indicate strong Granger-causal relationships with the Dow Jones Industrial Average and oil prices. Evidence is also indicative for a causal relationship with the Shanghai Composite Index. Positive shocks in these three variables lead an appreciation of the Ringgit. Practical implications These results provide insights for policymakers in East Asia in their attempt to manage the floating of their currency. Originality/value The paper adds to existing empirical literature in three ways. First, it investigates the RM-USD exchange rate after its managed flotation beginning with 25 July 2005. Second, the study provides results for exchange rates measured in two frequencies, namely, daily and monthly. Third, the empirical LA-VAR model applied includes variables capturing economic and financial conditions in China. Prior literature puts a focus on macroeconomic conditions in the USA. Yet, since 2009, China has been the largest trading partner of Malaysia.

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“…The next day the dollar strengthened further as a result of rumors indicating that the parallel tripartite conference had reached an agreement and that the dollar would be stabilized at approximately $4.00 per pound. 24 On June 14 Secretary of the Treasury Will Woodin decided to put an end to the rumors, and he released a statement in Washington stating that "any proposal concerning stabilization would have to be submitted to the President and to the Treasury and no suggestion of such a proposal 21 For a discussion on exchange rate misalignment see Edwards (2011) and the literature cited therein. 22 Cassel (1922), Keynes (1924).…”

Section: Rumors and More Rumorsmentioning

confidence: 99%

The London Monetary and Economic Conference of 1933 and the End of The Great Depression: A “Change of Regime” Analysis

Edwards

2017

Self Cite

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I thank Michael Poyker for his assistance. I thank Michael Bordo, Josh Hausman, and George Tavlas for comments. I have benefitted from conversations with Ed Leamer. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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Exchange-Rate Policies in Emerging Countries: Eleven Empirical Regularities From Latin America and East Asia

Abstract: Exchange Rate Policy, Growth, Currency Crisis, Currency War, F31 (International Economics /International Finance / Foreign Exchange),

Cited by 25 publications

References 58 publications

Insulating property of the flexible exchange rate regime: A case of Central and Eastern European countries

Insulating property of the flexible exchange rate regime: A case of Central and Eastern European countries

Granger-causes of the Ringgit-US dollar exchange rate after 2005

The London Monetary and Economic Conference of 1933 and the End of The Great Depression: A “Change of Regime” Analysis

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