Exchange rate dynamics and international effects of monetary shocks in monetary, equilibrium models

Article Abstract:

Open-economy liquidity models, two-country extensions of Lucas' liquidity model, were used to determine if exchange rate dynamics and responses of key variables to monetary innovations can be explained. The models were shown to have the ability to explain evidence that favorable monetary shocks in a country coincide with unfavorable nominal interest rate innovations, positive employment and output innovations and declines in nominal and real exchange rates. The model economies also predict low exchange rate volatilities, which can be avoided by changing the trading opportunities available for agents.

Prices and rates, Foreign exchange, Foreign exchange rates, Monetary policy

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The structure of international banking

Article Abstract:

A study defined and explained the factors that affected the level of involvement of foreign banks in the US. There are three types of involvement. Representative offices are affected by exports, private lending and the magnitude of the foreign capital market. Agencies are affected by exports and magnitude of the foreign capital market. Branches are affected by the magnitude of the foreign capital market. An equilibrium model was used to validate these conclusions. Limitations are presented.

International banking

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Oil prices and rural migration: the Dutch disease goes south

Article Abstract:

A two-period, perfect foresight, general equilibrium system model was constructed to analyze agricultural migration and the causes of a decrease in exports. This model used data from Mexico covering the 1986-1987 period to analyze the Dutch disease. The Dutch disease is the boom in one sector of the economy at the expense of another. The model permits an examination of the policies undertaken by the Mexican government to deal with the phenomenon.

Economic aspects, Exports, Social policy, Mexico, Agriculture, Agricultural policy, Agricultural economics

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