The rupee's current real undervaluation is beneficial for exports, but its impact risks quick neutralization by high import ...

The currency exchange rates that we see and use every day are nominal exchange rates. They tell us what we get if we swap a unit of one currency for another – for example, a pound-dollar exchange rate ...

According to conventional wisdom, industrial country floating exchange rates contain unit roots. SUR tests on panels of monthly Group of Ten (G-10) log nominal rates reject the null of unit roots for ...

Based on VAR analyses across 26 countries, we show that, although foreign exchange intervention (FXI) is effective in stabilizing the nominal exchange rate in the short run, its impacts on the real ...

Exchange rate pass‐through refers to the extent to which fluctuations in the nominal exchange rate affect domestic prices—both at the producer and consumer levels. This dynamic plays a pivotal role in ...

Most countries hold large gross asset positions, lending in domestic currency and borrowing in foreign. Thus, their balance sheets are exposed to nominal exchange rates. We argue that when asset ...

Citations: Rebelo, Sergio, Benjamin Johannsen, Martin Eichenbaum. 2021. Monetary Policy and the Predictability of Nominal Exchange Rates. Review of Economic Studies. (1)192-228..

Tara Iyer of the University of Oxford’s economics department takes a look at monetary policy in emerging market economies, writing that the majority of households in such economies are excluded from ...