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Explaining Recent European Exchange‐Rate Stability

International Finance, 1999
In this paper we analyse the behaviour of the bilateral exchange rates that were converted into euros on 1 January 1999. Using a model of stochastic regime switching we study the effects of future conversion on current exchange‐rate dynamics. We find that exchange rates are to a large extent determined by the discounted (expected) conversion value. The
Paul De Grauwe   +2 more
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Export Promotion through Exchange Rate Policy: Exchange Rate Depreciation or Stabilization? [PDF]

open access: possible, 2005
Exchange rate movements affect exports in two ways -- its depreciation and its variability (risk). A depreciation raises exports, but the associated exchange rate risk could offset that positive effect. The present paper investigates the net effect for eight Asian countries using a dynamic conditional correlation bivariate GARCH-M model that ...
Fang, WenShwo   +2 more
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Exchange Rate Regimes and Economic Stability

Voprosy Ekonomiki, 2010
The Bank of Russia intends to introduce inflation targeting policy and exchange rate free floating regime in three years. Exogenous shocks absorption which stabilizes the real sector of economy is usually considered to be one of the advantages of free floating exchange rate policy.
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Flexible exchange rates and stabilizing speculation

Journal of International Money and Finance, 1988
Abstract This paper re-establishes the superiority of flexible exchange rates in small open economy models characterized by an efficient foreign exchange market and short-run imperfections in the product (labor) market.
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MONETARY POLICY AND EXCHANGE RATE STABILIZATION.

In this article, we examine the relationship between monetary policy and exchange rate stabilization, exploring the tools and strategies used by central banks to manage exchange rate volatility and create an environment conducive to sustainable economic development.
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Exchange Rates and Exchange Stability

The Review of Economics and Statistics, 1950
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Stability and Exchange Rate Policy [PDF]

open access: possibleHitotsubashi journal of commerce and management, 1998
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