Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility

This paper uses synchronization indicators of domestic and foreign fundamentals to choose suitable currency allocation of public external debt. The selection of explanatory variables for exchange rate volatility is motivated using a New Keynesian Policy model that predicts that not only traditional...

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Main Author:	Melecky, Martin
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Foreign Exchange F310 International Lending and Debt Problems F340 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
Online Access:	http://hdl.handle.net/10986/4766

id	okr-10986-4766
recordtype	oai_dc
spelling	okr-10986-47662021-04-23T14:02:19Z Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility Melecky, Martin Foreign Exchange F310 International Lending and Debt Problems F340 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 This paper uses synchronization indicators of domestic and foreign fundamentals to choose suitable currency allocation of public external debt. The selection of explanatory variables for exchange rate volatility is motivated using a New Keynesian Policy model that predicts that not only traditional optimum currency area (OCA) variables, but also variables considered by the literature on currency preferences, such as money velocity, should be relevant for explaining exchange rate volatility. I find that measures of inflation synchronization, money velocity synchronization, and interest rate synchronization are useful indicators for deciding on the currency denomination of public external debt. 2012-03-30T07:29:38Z 2012-03-30T07:29:38Z 2010 Journal Article Comparative Economic Studies 08887233 http://hdl.handle.net/10986/4766 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Foreign Exchange F310 International Lending and Debt Problems F340 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
spellingShingle	Foreign Exchange F310 International Lending and Debt Problems F340 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Melecky, Martin Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper uses synchronization indicators of domestic and foreign fundamentals to choose suitable currency allocation of public external debt. The selection of explanatory variables for exchange rate volatility is motivated using a New Keynesian Policy model that predicts that not only traditional optimum currency area (OCA) variables, but also variables considered by the literature on currency preferences, such as money velocity, should be relevant for explaining exchange rate volatility. I find that measures of inflation synchronization, money velocity synchronization, and interest rate synchronization are useful indicators for deciding on the currency denomination of public external debt.
format	Journal Article
author	Melecky, Martin
author_facet	Melecky, Martin
author_sort	Melecky, Martin
title	Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
title_short	Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
title_full	Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
title_fullStr	Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
title_full_unstemmed	Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility
title_sort	currency allocation of public external debt and synchronization indicators of exchange rate volatility
publishDate	2012
url	http://hdl.handle.net/10986/4766
_version_	1764392675819126784

Currency Allocation of Public External Debt and Synchronization Indicators of Exchange Rate Volatility

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