Veranstaltungen

Die Veranstaltungen der Abteilung Konjunkturpolitik.

19. Dez 2018

DIW Seminar on Macroeconomics and Financial Markets Currency Manipulation

We propose a novel, risk-based transmission mechanism for the effects of currency manipulation: policies that systematically induce a country's currency to appreciate in bad times lower its risk premium in international markets and, as a result, lower the country's risk-free interest rate and increase domestic capital accumulation and wages. Currency manipulations by large countries also have external effects on foreign interest rates and capital accumulation. Applying this logic to policies that lower the variance of the bilateral exchange rate relative to some target country ("currency stabilization"), we find that a small economy stabilizing its exchange rate relative to a large economy increases domestic capital accumulation and wages. The size of this effect increases with the size of the target economy, offering a potential explanation why the vast majority of currency stabilizations in the data are to the U.S. dollar, the currency of the largest economy in the world. A large economy (such as China) stabilizing its exchange rate relative to a larger economy (such as the U.S.) diverts capital accumulation from the target country to itself, increasing domestic wages, while decreasing wages in the target country.

Mehr Informationen
Referent/-in
  • Tarek Hassan, Boston University

  • Zeit
    12:00-13:15
    Ort
    Joan Robinson Room DIW Berlin Raum 3.3.002a Mohrenstraße 58 10117 Berlin
    Ansprechpartner/-in
    im DIW Berlin
    Tel.: +49 30 89789 486
    Tel.: +49 30 89789 409
    23. Januar 2019

    DIW Seminar on Macroeconomics and Financial Markets Monetary Policy Spillovers, Capital Controls and Exchange Rate Regimes, and the Financial Channel of Exchange Rates

    Mehr Informationen
    Referent/-in
  • Georgios Georgiadis, European Central Bank

  • Zeit
    12:00-13:15
    Ort
    Joan Robinson Room DIW Berlin Raum 3.3.002a Mohrenstraße 58 10117 Berlin
    Ansprechpartner/-in
    im DIW Berlin
    Tel.: +49 30 89789 486
    Tel.: +49 30 89789 409