There are various causes for inflation in macroeconomics. One of the important channels of experiencing inflation is through the international economy caused by external shocks. In this context, the impact of exchange rate volatilities on domestic prices known as Exchange Rate Pass-Through (ERPT) plays a vital role. The present paper deals with the impact of Exchange Rate Pass-Through on inflat...

This paper compares the welfare costs of business cycles in a dollarized economy to those arising in economies with different monetary arrangements. The alternative monetary policy regimes studied belong to three broad families: devaluation rate rules, inflation targeting, and money growth rate rules. The analysis is conducted within an optimizing model of a small open economy with sticky price...

S tock returns of companies listed on the stock exchange is one of the most important criteria in assessing the macroeconomic. This study investigates the effect of exchange rate Volatility on the stock exchange Returns of D8 countries. It takes monthly data during the period (2008:1-2015:6) constituting 90 observations. At first we used Panel-GARCH model to estimate Exchange Rate Vo...

In this paper we use a new classification of exchange rate arrangements developed by Reinhart and Rogoff (2002) to test whether reserve holdings decrease with increasing exchange-rate flexibility. Using pooled data for 137 countries over the period 1980-2000, we find several new results. First, the degree of exchange rate flexibility has an inverted-U relationship with the country’s reserve hol...

Abstract Russian monetary policy has been challenged by large and continuous private capital outflows a sharp drop in oil prices during 2014. Both contributed to significant depreciation pressures on the ruble led central bank give up its exchange rate management strategy. Against this background, work estimates small open economy model for Russia, featuring an price sector extended specificati...