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Monetary and Exchange Rate Dynamics During Disinflation :, An Empirical Analysis, Lei Zhang, A. Hamann, Andres Arias Leiva

Creator
Abstract
Based on the observed behavior of monetary aggregates and exchange rates, we classify inflation-stabilization episodes into two categories: de facto exchange rate-based stabilizations (ERBS) and non-ERBS. Unlike the standard de jure ERBS studied in the literature, de facto ERBS encompass cases in which the central bank intervenes in the foreign exchange market but does not preannounce the use of an exchange rate anchor. The number of the de facto ERBS is twice as large as that of de jure ERBS. Output dynamics during disinflation do not differ significantly between these two groups. We conclude that empirical studies on the effects of exchange rate anchors must seek to disentangle the effects of their announcement from those related to their role in the remonetization process
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. STABILIZATION EPISODES: SAMPLE SELECTION AND KEY FEATURES""; ""A. Parameterization and Episode Identification""; ""B. Stabilization Episodes: History, Duration, and Speed""; ""III. MONETARY AND EXCHANGE RATE DYNAMICS AND THE ROLE OF THE NOMINAL ANCHOR: SOME SIMPLE EXPERIMENTS""; ""A. Monetary and Exchange Rate Dynamics in ERBS and Non-ERBS""; ""B. Classifying Episodes with Cluster Analysis""; ""IV. THE EXPERIMENTS AND MAIN RESULTS""; ""A. Monetary Dynamics""; ""B. Exchange Rate Volatility""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (35 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613801678

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