Exchange rate target zones: A literature survey

Karakurum, Kamer


Exchange rate pass-through and inflation targeting
Gülşen, Eda; Özmen, Erdal; Department of Economics (2009)
In this study, we aim to investigate the impact of inflation targeting (IT) and the recent global disinflation on exchange rate pass-through (ERPT) using quarterly data from 1980:1 to 2009:1 for 51 industrial and emerging market (EM) countries. To this end, we employ not only the conventional panel data estimation methods but also the recent Common Correlated Effects Pooled estimation procedure by Pesaran (2006) which allows estimating the impact of common global shocks such as global inflation. We also exp...
Exchange Rate Regimes and Business Cycles: An Empirical Investigation
Erdem, Fatma Pinar; Özmen, Erdal (2015-11-01)
This paper empirically investigates the impacts of domestic and external factors along with exchange rate regimes (ERRs) on business cycles in a large panel of advanced and emerging market economies (EME). The results for classical business cycles suggest that EME tend to experience much deeper recessions and relatively steeper expansions during almost the same duration. The probability of expansions significantly increases with ERR flexibility. Our results strongly support floating ERR for both advanced an...
Exchange Rate Uncertainty in Turkey and its Impact on Export Volume
KASMAN, Adnan; KASMAN, Saadet (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2005-6)
This paper investigates the impact of real exchange rate volatility on Turkey’s exports to its most important trading partners using quarterly data for the period 1982 to 2001. Cointegration and error correction modeling approaches are applied, and estimates of the cointegrating relations are obtained using Johansen’s multivariate procedure. Estimates of the short-run dynamics are obtained through the error correction technique. Our results indicate that exchange rate volatility has a significant positive e...
Exchange Rate Regimes as Thresholds: The Main Determinants of Capital Inflows in Emerging Market Economies
Özmen, Erdal (2019-06-14)
This study investigates whether the impacts of the main common push (global financial conditions, GFC) and country-specific pull (growth) factors on capital inflows are invariant to the prevailing exchange rate regimes (ERRs) in emerging market economies. Our results suggest that endogenously estimated ERR thresholds do matter especially for the impact of GFC. The impact of GFC is substantially high under more flexible ERRs for all capital inflow types except FDI. FDI inflows are basically determined by the...
Exchange rate pass-through into domestic price indicators: a sectoral analysis of Turkish economy
Özen, Emine Özgü; Akbostancı Özkazanç, Elif; Department of Economics (2011)
The question of exchange rate pass-through into domestic inflation is a widely analyzed issue due to its importance as regards to monetary policy, exchange rate policy and in general macroeconomic policy for open economies. Although most of the literature is focused on the exchange rate pass-through at the aggregate level, there are fewer studies that are done at the sectoral level for the Turkish economy. In this study by using a distribution chain of pricing model developed by McCarthy (2000), pass-throug...
Citation Formats
K. Karakurum, “Exchange rate target zones: A literature survey,” Middle East Technical University, 1996.