The Credibility of Nordic Exchange Rate Bands, 1987-91 PDF Download

Author: Sami Geadah
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 32

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Author: Mr.Sami Geadah
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451841817
Category : Business & Economics
Languages : en
Pages : 24

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The credibility of the exchange rate bands in the Nordic countries during 1987-91 is examined with two tests. The results suggest that the credibility of Finland’s exchange rate band within a twelve-month horizon could not be rejected except in the fall of 1991; however, the band lacked credibility within a five-year horizon throughout the period. Denmark’s and Norway’s bands lacked both short- and long-term credibility at the beginning of the period, but credibility could not be rejected from 1989 for Norway and as of 1990 for Denmark. The credibility of Sweden’s band within a one-year horizon could not be rejected up to fall 1989, but thereafter its credibility deteriorated sharply.

Author: Sami Geadah
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
The credibility of the exchange rate bands in the Nordic countries during 1987-91 is examined with two tests. The results suggest that the credibility of Finland`s exchange rate band within a twelve-month horizon could not be rejected except in the fall of 1991; however, the band lacked credibility within a five-year horizon throughout the period. Denmark`s and Norway`s bands lacked both short- and long-term credibility at the beginning of the period, but credibility could not be rejected from 1989 for Norway and as of 1990 for Denmark. The credibility of Sweden`s band within a one-year horizon could not be rejected up to fall 1989, but thereafter its credibility deteriorated sharply.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451966482
Category : Business & Economics
Languages : en
Pages : 54

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The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.

Author: Alex Cukierman
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 68

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Author: Matthias Rau-Göhring
Publisher: diplom.de
ISBN: 3832467351
Category : Business & Economics
Languages : en
Pages : 64

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Inhaltsangabe:Zusammenfassung: Währungskrisen, wie die des Europäischen Währungssystems (EWS) 1992, können noch immer nur unzureichend vorausgesagt werden. Es wird jedoch anerkannt, dass die Glaubwürdigkeit eines jeden Währungssystems ausschließlich endogen bestimmt wird, d.h. durch Interaktion der einzelnen Akteure an den Wechselkursmärkten. Die vorliegende Arbeit untersucht, ob ein bestimmtes Glaubwürdigkeitsmaß, eingeführt von Avesani, Gallo und Salmon (1995), geeignet ist, die große EWS Krise 1992 vorauszusagen. Dabei handelt es sich um ein dynamisches Spiel, in dem die beiden Akteure (Zentralbank und Finanzmarkt) miteinander interagieren und damit die Glaubwürdigkeit des Systems aushandeln . Es wird gezeigt, dass o.g. Glaubwürdigkeitsmaß ein geeigneter Indikator für Währungskrisen darstellt, was empirisch anhand des französischen Francs, der italienischen Lira und des niederländischen Guldens nachgewiesen wird. Introduction: The objective of the present study is to present the literature of exchange rate target zones and to explore empirically the Avesani-Gallo-Salmon credibility measure for selected currencies belonging to the Exchange-Rate Mechanism (ERM) of the European Monetary System (EMS). In the past decade the empirical literature on real world target zones mushroomed considerably, but still, its overall significance in explaining strains in the relevant foreign exchange markets remains relatively low. In this context, I will explore whether the Avesani-Gallo-Salmon (1995) credibility measure demonstrates more power than earlier studies in the analysis of the 1992/3 EMS crisis. It is not my intention to pursue a normative analysis whether flexible or fixed exchange rates or intermediate regimes are superior to one another in terms of their economic implications. This question is beyond the scope of my analysis.1 Given that target zones are applied frequently in the real world, I purely want to figure out, whether their application is sensible on grounds of a firm commitment of the policy-makers. Exchange rate bands have been discussed widely after the breakdown of the Bretton Woods System in 1973. Although experiences with the fixed exchange rate regime were disappointing in the 1960s, increased volatility and/or overshooting of the exchange rates in the 1970s let economists doubt the famous argument by Friedman (1953) that speculation would stabilize exchange rate movements in the floating system. McKinnon (1976) reckoned that [...]

Author: Johnny Åkerholm
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 310

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The papers in this volume were originally presented at a conference in Helsinki as the initial turmoil broke out. Now revised in many cases to reflect the events of 1992 and 1993, they contribute to our understanding of the motivations behind the drive to peg currencies in the Nordic countries to the Deutschmark, and of the problems these countries encountered in that process.

Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 145197325X
Category : Business & Economics
Languages : en
Pages : 236

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This paper assesses alternative auction techniques for pricing and allocating various financial instruments, such as government securities, central bank refinance credit, and foreign exchange. Before recommending appropriate formats for auctioning these items, the paper discusses basic auction formats, assessing the advantages and disadvantages of each, based on the existing, mostly theoretical, literature. It is noted that auction techniques can be usefully employed for a broad range of items and that their application is of particular relevance to the impetus in many parts of the world toward establishing market-oriented economies.

Author: Willem H. Buiter
Publisher: Cambridge University Press
ISBN: 9780521794404
Category : Business & Economics
Languages : en
Pages : 242

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This book provides a comprehensive assessment of the causes and implications of the 1992-3 crisis of the exchange rate mechanism.

Author: Olli-Pekka Lehmussaari
Publisher:
ISBN:
Category :
Languages : en
Pages : 66

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