Exchange Rates and Global Rebalancing
Eichengreen, Barry; Rua, Gisela | April 2011
Abstract
This paper considers the general equilibrium relationship between exchange rates and global imbalances. It emphasizes that the exchange rate is not a primitive but an equilibrium price determined by the policy mix. It uses extensions of the two-country Obstfeld-Rogoff model to analyze the response of imbalances and real exchange rates to shocks. Finally, it analyzes the characteristics of episodes in which chronic current account surpluses (as opposed to deficits) come to an end.
Citation
Eichengreen, Barry; Rua, Gisela. 2011. Exchange Rates and Global Rebalancing. © Asian Development Bank. http://hdl.handle.net/11540/3866. License: CC BY 3.0 IGO.Keywords
Development
Finance
Development Challenges
Development Issues
Development Problems
Microenterprises Finance
Commercial Finance Companies
Enterprise Financing
Show allCollapse
Citable URI
http://hdl.handle.net/11540/3866Metadata
Show full item record
Users also downloaded
-
Asian Development Bank Sustainability Report 2015: Investing for an Asia and the Pacific Free of Poverty
(Asian Development Bank, 2015-12-18)The Asian Development Bank (ADB) has issued its Sustainability Report every 2 years since 2007. For 2015, the Sustainability Report highlights the sustainability of ADB’s investments and organizational activities during 2013– 2014. A separate detailed ... -
Fighting Poverty in Asia and the Pacific: The Poverty Reduction Strategy
(Asian Development Bank, 1999-11-15)As an institution whose purpose is the economic development of the region, the Asian Development Bank (ADB) has always been concerned with poverty reduction. Beginning with a focus on economic growth, ADB has progressively expanded its approach to ... -
Special Evaluation Study: Real-Time Evaluation Study of the Multitranche Financing Facility (Complete Report)
(Asian Development Bank, 2012-12-15)Introduced at the Asian Development Bank (ADB) in mid-2005, the modality of the multitranche financing facility (MFF) was intended to facilitate the programming of a set of individual loan tranches in a sector and country in an efficient and sequential ...