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Full-Text Articles in Social and Behavioral Sciences
The Political Economy Of The Cost Of Foreign Exchange Intervention, Devika Dutt
The Political Economy Of The Cost Of Foreign Exchange Intervention, Devika Dutt
Doctoral Dissertations
Central Banks around the world increasingly intervene in the foreign exchange market for a variety of reasons, such as maintaining exchange rate stability and maintaining a buffer against the impact of capital flight. In fact, research shows that central banks can lean against the macroeconomic policy trilemma through maintaining reserves and intervening in the foreign exchange market, and thereby secure policy space. However, securing this policy space can come at substantial cost. This dissertation explores the political economy of these costs of foreign exchange intervention. Chapter I discusses the concept of the direct cost of intervention, calculates these costs for …
Essays On Exchange Rate Shocks And The Political Economy Of Local Fiscal Policy In Brazil, Raphael Rocha Gouvea
Essays On Exchange Rate Shocks And The Political Economy Of Local Fiscal Policy In Brazil, Raphael Rocha Gouvea
Doctoral Dissertations
Do exchange rate shocks have distributional consequences? Does employment respond to exchange rate shocks? Do political parties matter when it comes to governing cities? Each chapter of this dissertation attempts to answer one of these questions in the Brazilian context. In the first chapter, titled Large devaluations and inflation inequality: evidence from Brazil, I show that prices of tradable goods/lower-priced varieties increase significantly more than the prices of nontradables/higher-priced varieties. These relative price changes may lead to inflation inequality when household consumption baskets are different across the distribution of income. Using Cravino and Levchenko (2017)'s methodology, we show that …