PPT-Exchange Rate Experience Between the Oil Shocks,

19731980 Megan Garcia Jessica Hoffer First Oil Shock and I ts Effects 19731975 War between Israel and Arab countries OPEC Organization of Petroleum Exporting Countries International Cartel with the largest oil producers. Two polar cases. Fixed (pegged) exchange rates. CB buys or sells reserves to maintain a set price of foreign exchange. Flexible exchange rates. CB does not intervene in market for foreign exchange. and . the Central Bank. Chapter 19. Exchange Rates are Volatile. Costs of Volatile Exchange Rates. Exchange rate volatility increases risk in international finance. . Ex. Many developing economy corporates issue securities in US$. An exchange rate devaluation will make this more expensive to repay. . Care About Exchange Rates . in Addition to Inflation?. SNB-IMF Conference on. the International Monetary System. Zurich, May 13, 2014. Jeffrey Frankel. Harpel. Professor of Capital Formation & Growth Harvard University. Prof.J.Frankel. Lecture 21: . Exchange Rate Regimes. ITF220 Prof.J.Frankel. What exchange rate regimes do . countries . choos. e. ?. Classification of exchange rate regimes. What regimes . should. countries . Exchange Rate Regimes. ITF220 Prof.J.Frankel. What exchange rate regimes do . countries . choos. e. ?. Classification of exchange rate regimes. What regimes . should. countries . choose?. 2. Advantages . Care About Exchange Rates . in Addition to Inflation?. SNB-IMF Conference on. the International Monetary System. Zurich, May 13, 2014. Jeffrey Frankel. Harpel. Professor of Capital Formation & Growth Harvard University. Why do some countries choose to fix. and others to float? Why do they. change their minds at different times?. These are among the most enduring and controversial questions in international macroeconomics.. Fixed vs. Floating. The exchange rate fluctuates in a narrow range (or not at all) against a base currency over a sustained period of time. . Government action is needed to maintain the exchange rate.. Exchange Rate Regimes. ITF220 Prof.J.Frankel. What exchange rate regimes do . countries . choos. e. ?. Classification of exchange rate regimes. What regimes . should. countries . choose?. 2. Advantages . Explain how exchange rate movements are measured.. Explain how the equilibrium exchange rate is determined.. Examine factors that determine the equilibrium exchange rate.. Explain . the movement in cross exchange rates.. What is VAR?. A . var. (p) model is:. with and. Originally proposed by Sims (1980). Efficient way of summarizing information contained in the data. Useful for forecasting. Conduct economically interesting analysis under meaningful identification restrictions. Annina Kaltenbrunner, Leeds University Business School, a.kaltenbrunner@leeds.ac.uk. Daniel Perez Ruiz, Leeds University Business School, bndapr@leeds.ac.uk. Anjelo Okot, Leeds University Business School and Central Bank of Uganda, bn15ao@leeds.ac.uk. Jeffrey . Frankel. Harpel . Professor of Capital Formation and . Growth. Harvard . Kennedy . School, Harvard University. 4. th. Asian Monetary Policy Forum. Singapore. , 26 May, . 2017. under . the auspices of the Asian Bureau of Finance and Economic Research (ABFER), . Panel . on Monetary Policy,. Conference . on Monetary Policy. and Financial Stability in . Emerging . Markets,. NBER & Central Bank of the Republic . of . Turkey,. Istanbul, Turkey, June 13-14, 2014.