Overview
- Real exchange rate determination and the workings of monetary policy of individual countries in a world economy
- Includes supplementary material: sn.pub/extras
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Table of contents (16 chapters)
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Front Matter
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A Theoretical Framework
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Front Matter
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Exchange Rate Determination
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Front Matter
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Implications for Monetary Policy
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Front Matter
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Keywords
About this book
A careful basic theoretical and econometric analysis of the factors determining the real exchange rates of Canada, the U.K., Japan, France and Germany with respect to the United States is conducted. The resulting conclusion is that real exchange rates are almost entirely determined by real factors relating to growth and technology such as oil and commodity prices, international allocations of world investment across countries, and underlying terms of trade changes. Unanticipated money supply shocks, calculated in five alternative ways have virtually no effects. A Blanchard-Quah VAR analysis also indicates that the effects of real shocks predominate over monetary shocks by a wide margin. The implications of these facts for the conduct of monetary policy in countries outside the U.S. are then explored leading to the conclusion that all countries, to avoid exchange rate overshooting, have tended to automatically follow the same monetary policy as the United States. The history of worldmonetary policy is reviewed along with the determination of real exchange rates within the Euro Area.
Authors and Affiliations
Bibliographic Information
Book Title: Interest Rates, Exchange Rates and World Monetary Policy
Authors: John E. Floyd
DOI: https://doi.org/10.1007/978-3-642-10280-6
Publisher: Springer Berlin, Heidelberg
eBook Packages: Business and Economics, Economics and Finance (R0)
Copyright Information: Springer-Verlag Berlin Heidelberg 2010
Hardcover ISBN: 978-3-642-10279-0Published: 18 December 2009
Softcover ISBN: 978-3-642-42454-0Published: 31 October 2014
eBook ISBN: 978-3-642-10280-6Published: 04 December 2009
Edition Number: 1
Number of Pages: XII, 404
Topics: Macroeconomics/Monetary Economics//Financial Economics, International Economics, Econometrics, Statistics for Business, Management, Economics, Finance, Insurance