PPT-ITF220 Prof.J.Frankel Lecture 21:

Exchange Rate Regimes ITF220 ProfJFrankel What exchange rate regimes do countries choos e Classification of exchange rate regimes What regimes should countries choose 2 Advantages . CRISES IN EMERGING MARKETS. L21: Speculative Attack Models. . • Generation I. • Generation II. • Generation III. . L22: Sudden Stops. . • Boom & bust in EMs. • Contagion. Lecture 18: Crises in Emerging Markets. Boom-bust cycles of inflows & outflows. Crashes. . Sudden stops. Managing capital . outflows. Speculative attacks. Contagion. IMF Programs. ITF220 - Prof.J.Frankel. 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 . Lecture 18: Crises in Emerging . Markets. Continuing from Lecture 12. Boom-bust . cycle . of . inflows & outflows. Sudden stops. Managing . capital . outflows. Speculative attacks. Contagion. IMF . Aggregate Demand . (AD). . & . Aggregate Supply . (AS). Ultra-Keynesian A.S.. Neoclassical . A.S. . Intermediate A.S. curve. Expectations-augmented A.S. .. Rational . expectations . A.S.. Real Business Cycles . CRISES IN EMERGING MARKETS. L21: Speculative Attack Models. . • Generation I. • Generation II. • Generation III. . L22: Sudden Stops. . • Boom & bust in EMs. • Contagion. Lecture 3. : . Country Risk. The portfolio-balance model . with default risk.. When countries default.. What determines sovereign spreads?. Debt Sustainability Analysis (DSA).. API-119 - Prof.J.Frankel. CRISES IN EMERGING MARKETS. L21: Speculative Attack Models. . • Generation I. • Generation II. • Generation III. . L22: Sudden Stops. . • Boom & bust in EMs. • Contagion. . An additional factor for portfolio investors: risk of default,. c. alled sovereign risk, in the case of risk . of default by . governments.. Defaults and restructuring.. What determines sovereign spreads?. Policy goals: Internal . balance . & . External . balance. LECTURES 7 - 9:. POLICY INSTRUMENTS, including MONEY. The Swan Diagram. The principle of goals & instruments. L8: Introduction of monetary policy. Markets. Continuing from Lecture 12. Boom-bust . cycle . of . inflows & outflows. Sudden stops. Managing . capital . outflows. Speculative attacks. Contagion. IMF . Programs. Appendices: . Car . crash analogy. International Interdependence. Theory:. . Interdependence . results from capital mobility. , . even . with floating rates.. Empirical estimates of cross-country effects.. International Coordination. . Breaching the central bank’s defenses. . LECTURE 25: . Speculative Attack Models. . • Generation . I. . • . Generation II. . . • Generation III. 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 .