IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v26y2018icp250-254.html

Unconventional monetary policy and the ‘currency wars’

Author

Listed:
  • Thornton, John
  • di Tommaso, Caterina

Abstract

Employing a panel of exchange rates and a difference-in-difference methodology, we find that unconventional monetary policy (UMP) resulted in an increase in exchange rate volatility and weaker exchange rates in UMP-adopter countries relative to others.

Suggested Citation

  • Thornton, John & di Tommaso, Caterina, 2018. "Unconventional monetary policy and the ‘currency wars’," Finance Research Letters, Elsevier, vol. 26(C), pages 250-254.
    • Handle: RePEc:eee:finlet:v:26:y:2018:i:c:p:250-254
    DOI: 10.1016/j.frl.2018.02.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612317305925
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2018.02.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ethan Ilzetzki & Carmen M Reinhart & Kenneth S Rogoff, 2019. "Exchange Arrangements Entering the Twenty-First Century: Which Anchor will Hold?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 599-646.
    2. Reinhart, Carmen, 2002. "A Modern History of Exchange Rate Arrangements: The Country Histories, 1946-2001," MPRA Paper 13191, University Library of Munich, Germany.
    3. Arteta,Carlos & Kose,Ayhan & Stocker,Marc & Taskin,Temel, 2016. "Negative interest rate policies : sources and implications," Policy Research Working Paper Series 7791, The World Bank.
    4. Gill Hammond, 2012. "State of the art of inflation targeting," Handbooks, Centre for Central Banking Studies, Bank of England, edition 4, number 29, April.
    5. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 1-48.
    6. Phil Molyneux & Rue Xie & John Thornton & Alessio Reghezza, 2017. "Did Negative Interest Rates Impact Bank Lending?," Working Papers 17002, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    7. Joseph E. Gagnon, 2016. "Quantitative Easing: An Underappreciated Success," Policy Briefs PB16-4, Peterson Institute for International Economics.
    8. Rose, Andrew & hameed, allaudeen, 2016. "Exchange Rate Behavior with Negative Interest Rates: Some Early Negative Observations," CEPR Discussion Papers 11498, Centre for Economic Policy Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thornton, John & Vasilakis, Chrysovalantis, 2019. "Negative policy interest rates and exchange rate behavior: Further results," Finance Research Letters, Elsevier, vol. 29(C), pages 61-67.
    2. Rui Mao & Yang Yao, 2016. "Fixed Exchange Rate Regimes, Real Undervaluation, and Economic Growth," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-35, June.
    3. Antonia López-Villavicencio & Marc Pourroy, 2017. "IT Countries: A Breed Apart? the case of Exchange Rate Pass-Through," Working Papers 1728, Groupe d'Analyse et de Théorie Economique Lyon St-Etienne (GATE Lyon St-Etienne), Université de Lyon.
    4. Brueckner, Markus & Van Long, Ngo & Vespignani, Joaquin, 2020. "Non-gravity trade," Working Papers 2020-04, University of Tasmania, Tasmanian School of Business and Economics.
    5. David Cobham & Peter Macmillan, 2023. "What Have the Monetary Authorities Really Stabilised, and Does it Matter?," Open Economies Review, Springer, vol. 34(1), pages 43-70, February.
    6. Michael Bleaney & Mo Tian, 2019. "Flexible exchange rates and current account adjustment," Discussion Papers 2019/02, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    7. Kubota, Megumi, 2011. "Assessing real exchange rate misalignments," Policy Research Working Paper Series 5925, The World Bank.
    8. Rui Mao & Yang Yao, 2016. "Fixed Exchange Rate Regimes, Real Undervaluation, and Economic Growth," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-35, June.
    9. Amalia Morales-Zumaquero & Simón Sosvilla-Rivero, 2012. "Real exchange rate volatility, financial crises and nominal exchange regimes," Working Papers 12-05, Asociación Española de Economía y Finanzas Internacionales.
    10. Markus Brueckner & Ngo Van Long & Joaquin Vespignani, 2022. "Trade, education, and income inequality," Applied Economics, Taylor & Francis Journals, vol. 54(40), pages 4608-4631, August.
    11. Sebnem Kalemli-Ozcan & Elias Papaioannou & José-Luis Peydró, 2013. "Financial Regulation, Financial Globalization, and the Synchronization of Economic Activity," Journal of Finance, American Finance Association, vol. 68(3), pages 1179-1228, June.
    12. Ethan Ilzetzki & Carmen M Reinhart & Kenneth S Rogoff, 2020. "Why is the euro punching below its weight?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 35(103), pages 405-460.
    13. Mao, Rui & Yao, Yang & Zou, Jingxian, 2019. "Productivity growth, fixed exchange rates, and export-led growth," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    14. Couharde, Cécile & Grekou, Carl, 2024. "Better two eyes than one: A synthesis classification of exchange rate regimes," International Economics, Elsevier, vol. 180(C).
    15. Graham Bird & Alex Mandilaras & Helen Popper, 2012. "Explaining Shifts in Exchange Rate Regimes," School of Economics Discussion Papers 1312, School of Economics, University of Surrey.
    16. Nadav Ben Zeev, 2017. "Exchange Rate Regimes And Sudden Stops," Working Papers 1712, Ben-Gurion University of the Negev, Department of Economics.
    17. Marek A. Dąbrowski & Monika Papież & Sławomir Śmiech, 2020. "Classifying de facto exchange rate regimes of financially open and closed economies: A statistical approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 29(7), pages 821-849, October.
    18. Joshua Aizenman & Daniel Riera-Crichton, 2015. "Liquidity and Foreign Asset Management Challenges for Latin American Countries," Central Banking, Analysis, and Economic Policies Book Series, in: Rodrigo Caputo & Roberto Chang (ed.),Commodity Prices and Macroeconomic Policy, edition 1, volume 22, chapter 4, pages 091-134, Central Bank of Chile.
    19. Maurizio Michael Habib & Sascha Bützer & Livio Stracca, 2016. "Global Exchange Rate Configurations: Do Oil Shocks Matter?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 443-470, August.
    20. Ogrokhina, Olena & Rodriguez, Cesar M., 2019. "The effect of inflation targeting and financial openness on currency composition of sovereign international debt," Journal of International Money and Finance, Elsevier, vol. 97(C), pages 1-18.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:26:y:2018:i:c:p:250-254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.