This article analyses the implications of currency substitution and exchange rate volatility for monetary policy in Nigeria. It adopts the unrestricted portfolio In their model monetary policy can be used to lower exchange rate volatility without affecting macroeconomic fundamentals. Similarly, Canzoneri et al. (1996) . 1 The author would like to thank IMF African Department Monetary Policy Network exchange rate volatility increases risk premia and local currency sovereign Keywords: exchange rates, monetary policy, intraday data surprise, |∆i s. |. Exchange rate volatility measured as the average absolute change in the exchange Speculative Capital Flows, Exchange Rate Volatility and Monetary Policy: South African Experience. Authors; Authors and affiliations. Shakill Hassan. They claim 'looser' monetary policy, which implies a higher mean of inflation and a higher volatility of the exchange rate, will lead to more frequent price changes
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Effects of monetary policy announcements on exchange rate volatility: an analysis for Colombia, 2008-2015. Les effets des annonces de politique monétaire sur Toni (2014) : Monetary policy response on exchange rate volatility in Indonesia, Journal of. Contemporary Economic and Business Issues, ISSN 1857-9108, Ss. Monetary Policy and Exchange Rate Volatility in a Small Open Economy. UPF Economics and Business Working Paper 835. 39 Pages Posted: 29 Nov 2005. This article analyses the implications of currency substitution and exchange rate volatility for monetary policy in Nigeria. It adopts the unrestricted portfolio In their model monetary policy can be used to lower exchange rate volatility without affecting macroeconomic fundamentals. Similarly, Canzoneri et al. (1996) . 1 The author would like to thank IMF African Department Monetary Policy Network exchange rate volatility increases risk premia and local currency sovereign
Abstract. We analyze the contribution of the real exchange rate to the macroeconomic volatility of Czech economy and its role in cushioning economic
Exchange rate volatility is loosely linked to both monetary divergence and the degree of capital mobility. Interestingly, exchange rate volatility is significantly correlated with the width of the explicitly declared exchange rate band, even after taking monetary divergence and capital mobility into account.
Yinusa, D. Olalekan (2008): Exchange Rate Volatility, Currency Substitution and Monetary Policy in Nigeria. Published in: Botswana Journal of Economics , Vol. Vol. 5
11 Feb 2014 Exchange rate volatility affects not just multinationals and large as monetary policy in Japan remains very stimulative and the European 26 Oct 2015 Exchange Rate volatility and its impact: Case of India and China Group exchange rate on trade, i.e., a depreciated domestic currency in real terms Exchange Rate Policy India follows a managed floating exchange rate Learn how exchange rate volatility raises risk for international traders and This is an example of the risk an importer faces because of a change in the currency nominal exchange rate and the terms of trade. Hence, a policy of strict domestic inflation targeting, which in our framework can achieve a simultaneous stabilization of the output gap and domestic inflation, implies a substantially greater volatility in the nominal exchange rate and 4. See Lane (2001) for a survey of the new open economy macroeconomics literature. The introduction of price
This article analyses the implications of currency substitution and exchange rate volatility for monetary policy in Nigeria. It adopts the unrestricted portfolio
In order to curb exchange rate volatility, policy makers and researchers employ quantitative models to determine which macroeconomic and financial factors can be important. According to , it can be asserted that exchange rate volatility can both be explained by monetary and non-monetary factors. Financial openness can be regarded as another crucial factor influencing the relationship between exchange rate volatility and macroeconomic variables. In Section 13.2.6, exchange rate volatility was mentioned as one of the limitations of the EPR policy. Given the eurozone within the EU, this is maybe less an issue in Europe than in other regions of the world. But even in the EU some EPR-applying countries and some reference countries do not have the euro. Exchange rate stability is one of the potential goals of monetary policy. Why? First, foreign exchange markets can be subject to great volatility, leading to risk to those engaging in international trade and finance. "Monetary Policy and Exchange Rate Volatility in a Small Open Economy," NBER Working Papers 8905, National Bureau of Economic Research, Inc. Jordi Galí & Tommaso Monacelli, 2004. " Monetary policy and exchange rate volatility in a small open economy ," Economics Working Papers 835, Department of Economics and Business, Universitat Pompeu Fabra.