کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5063457 1372232 2008 27 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Automatic stabilizer feature of fixed exchange rate regimes
موضوعات مرتبط
علوم انسانی و اجتماعی مدیریت، کسب و کار و حسابداری کسب و کار و مدیریت بین المللی
پیش نمایش صفحه اول مقاله
Automatic stabilizer feature of fixed exchange rate regimes
چکیده انگلیسی

This paper shows that countries characterized by a financial accelerator mechanism may reverse the usual finding of the literature - flexible exchange rate regimes do a worse job of insulating open economies from external shocks. I obtain this result with a calibrated small open economy model that endogenizes foreign interest rates by linking them to the banking sector's financial leverage. This relationship renders exchange rate policy more important compared to the usual exogeneity assumption. I find empirical support for this prediction using the Local Projections method. Finally, 2nd order approximation to the model finds larger welfare losses under flexible exchange rate regimes.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Emerging Markets Review - Volume 9, Issue 4, December 2008, Pages 302-328
نویسندگان
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