WorldCat Identities

Shambaugh, Jay C.

Works: 36 works in 216 publications in 1 language and 3,008 library holdings
Genres: History  Academic theses 
Roles: Author, Contributor
Classifications: HG3851, 332.45
Publication Timeline
Most widely held works by Jay C Shambaugh
Exchange rate regimes in the modern era by Michael W Klein( Book )

19 editions published between 2009 and 2012 in English and held by 409 WorldCat member libraries worldwide

"The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy, trade, and macroeconomic outcomes, and is the subject of both academic and policy debate. In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international interdependence
The trilemma in history : tradeoffs among exchange rates, monetary policies, and capital mobility by Maurice Obstfeld( Book )

19 editions published between 2002 and 2004 in English and held by 61 WorldCat member libraries worldwide

The exchange-rate regime is often seen as constrained by the monetary policy trilemma, which imposes a stark tradeoff among exchange stability, monetary independence, and capital market openness. Yet the trilemma has not gone without challenge. Some (e.g., Calvo and Reinhart 2001, 2002) argue that under the modern float there could be limited monetary autonomy. Others (e.g., Bordo and Flandreau 2003), that even under the classical gold standard domestic monetary autonomy was considerable. This paper studies the coherence of international interest rates over more than 130 years. The constraints implied by the trilemma are largely borne out by history
Monetary sovereignty, exchange rates, and capital controls : the trilemma in the interwar period by Maurice Obstfeld( Book )

16 editions published in 2004 in English and held by 60 WorldCat member libraries worldwide

The interwar period was marked by the end of the classical gold standard regime and new levels of macroeconomic disorder in the world economy. The interwar disorder often is linked to policies inconsistent with the constraint of the open-economy trilemma the inability of policymakers simultaneously to pursue a fixed exchange rate, open capital markets, and autonomous monetary policy. The first two objectives were linchpins of the pre-1914 order. As increasingly democratic polities faced pressures to engage in domestic macroeconomic management, however, either currency pegs or freedom of capital movements had to yield. This historical analytic narrative is compelling with significant ramifications for today's world, if true but empirically controversial. We apply theory and empirics to the interwar data and find strong support for the logic of the trilemma. Thus, an inability to pursue consistent policies in a rapidly changing political and economic environment appears central to an understanding of the interwar crises, and the same constraints still apply today
Financial exchange rates and international currency exposures by Philip R Lane( Book )

18 editions published between 2007 and 2008 in English and held by 45 WorldCat member libraries worldwide

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade. Last, we show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth shocks
Fixed exchange rates and trade by Michael W Klein( Book )

10 editions published in 2004 in English and held by 43 WorldCat member libraries worldwide

A classic argument for a fixed exchange rate is its promotion of trade. Empirical support for this, however, is mixed. While one branch of research consistently shows a small negative effect of exchange rate volatility on trade, another, more recent, branch presents evidence of a large positive impact of currency unions on trade. This paper helps resolve this disconnect. Our results, which use a new data-based classification of fixed exchange rate regimes, show a large, significant effect of a fixed exchange rate on bilateral trade between a base country and a country that pegs to it. Furthermore, the web of fixed exchange rates created when countries link to a common base also promotes trade, but only when these countries are part of a wider system, as during the Bretton Woods period. These results suggest an economically relevant role for exchange rate regimes in trade determination since a significant amount of world trade is conducted between countries with fixed exchange rates
The impact of foreign interest rates on the economy : the role of the exchange rate regime by Julian Di Giovanni( Book )

18 editions published between 2006 and 2010 in English and held by 38 WorldCat member libraries worldwide

It is often argued that many economies are affected by conditions in foreign countries. This paper explores the connection between interest rates in major industrial countries and annual real output growth in other countries. The results show that high foreign interest rates have a contractionary effect on annual real GDP growth in the domestic economy, but that this effect is centered on countries with fixed exchange rates. The paper then examines the potential channels through which major-country interest rates affect other economies. The effect of foreign interest rates on domestic interest rates is the most likely channel when compared with other possibilities, such as a trade effect
Study guide to accompany International economics, theory and policy, sixth edition, Paul R. Krugman, Maurice Obstfeld by Linda S Goldberg( Book )

2 editions published in 2003 in English and held by 27 WorldCat member libraries worldwide

Financial stability, the trilemma, and international reserves by Maurice Obstfeld( Book )

17 editions published between 2007 and 2008 in English and held by 26 WorldCat member libraries worldwide

The rapid growth of international reserves---a development concentrated in the emerging markets---remains a puzzle. In this paper we suggest that a model based on financial stability and financial openness goes far toward explaining reserve holdings in the modern era of globalized capital markets. The size of domestic financial liabilities that could potentially be converted into foreign currency (M2), financial openness, the ability to access foreign currency through debt markets, and exchange rate policy are all significant predictors of reserve stocks. Our empirical financial-stability model seems to outperform both traditional models and recent explanations based on external short-term debt
The nature of exchange rate regimes by Michael W Klein( Book )

9 editions published in 2006 in English and held by 24 WorldCat member libraries worldwide

The impermanence of fixed exchange rates has become a stylized fact in international finance. The combination of a view that pegs do not really peg with the "fear of floating" view that floats do not really float generates the conclusion that exchange rate regimes are, in practice, unimportant for the behavior of the exchange rate. This is consistent with evidence on the irrelevance of a country's choice of exchange rate regime for general macroeconomic performance. Recently, though, more studies have shown the exchange rate regime does matter in some contexts. In this paper, we attempt to reconcile the perception that fixed exchange rates are only a "mirage" with the recent research showing the effects of fixed exchange rates on trade, monetary autonomy, and growth. First we demonstrate that, while pegs frequently break, many do last and those that break tend to reform, so a fixed exchange rate today is a good predictor that one will exist in the future. Second, we study the exchange rate effect of fixed exchange rates. Fixed exchange rates exhibit greater bilateral exchange rate stability today and in the future. Pegs also display somewhat lower multilateral volatility
The long or short of it : determinants of foreign currency exposure in external balance sheets by Philip R Lane( Book )

14 editions published between 2008 and 2009 in English and held by 24 WorldCat member libraries worldwide

A major focus of the recent literature on the determination of optimal portfolios in open-economy macroeconomic models has been on the role of currency movements in determining portfolio returns that may hedge various macroeconomic shocks. However, there is little empirical evidence on the foreign currency exposures that are embedded in international balance sheets. Using a new database, we provide stylized facts concerning the cross-country and time-series variation in aggregate foreign currency exposure and its various subcomponents. In panel estimation, we find that richer, more open economies take longer foreign-currency positions. In addition, we find that an increase in the propensity for a currency to depreciate during bad times is associated with a longer position in foreign currencies, providing a hedge against domestic output fluctuations. We view these new stylized facts as informative in their own right and also potentially useful to the burgeoning theoretical literature on the macroeconomics of international portfolios
Study guide to accompany International economics, theory & policy, seventh edition, Paul R. Krugman, Maurice Obstfeld by Jay C Shambaugh( Book )

2 editions published in 2006 in English and held by 20 WorldCat member libraries worldwide

Study guide to accompany Krugman/Obstfeld International economics, theory and policy, 8[th edition] by Linda S Goldberg( Book )

1 edition published in 2009 in English and held by 13 WorldCat member libraries worldwide

Financial instability, reserves, and central bank swap lines in the panic of 2008 by Maurice Obstfeld( Book )

8 editions published in 2009 in English and held by 13 WorldCat member libraries worldwide

In this paper we connect the events of the last twelve months, "The Panic of 2008" as it has been called, to the demand for international reserves. In previous work, we have shown that international reserve demand can be rationalized by a central bank's desire to backstop the broad money supply to avert the possibility of an internal/external double drain (a bank run combined with capital flight). Thus, simply looking at trade or short-term debt as motivations for reserve holdings is insufficient; one must also consider the size of the banking system (M2). Here, we show that a country's reserve holdings just before the current crisis, relative to their predicted holdings based on these financial motives, can significantly predict exchange rate movements of both emerging and advanced countries in 2008. Countries with large war chests did not depreciate -- and some appreciated. Meanwhile, those who held insufficient reserves based on our metric were likely to depreciate. Current account balances and short-term debt levels are not statistically significant predictors of depreciation once reserve levels are taken into account. Our mode'₂s typically high predicted reserve levels provide important context for the unprecedented U.S. dollar swap lines recently provided to many countries by the Federal Reserve
Global savings and global investment : the transmission of identified fiscal shocks by James Donald Feyrer( Book )

8 editions published in 2009 in English and held by 12 WorldCat member libraries worldwide

This paper examines the effect of exogenous shocks to savings on world capital markets. Using the exogenous shocks to US tax policy identified by Romer & Romer, we trace the impact of an exogenous shock to savings through the income accounting identities of the US and the rest of the world. We find that exogenous tax increases are only partially offset by changes in private savings (Ricardian equivalence is not complete). We also find that only a small amount of the resulting change in US saving is absorbed by increased domestic investment (contrary to Feldstein & Horioka). Almost half of the fiscal shock is transmitted abroad as an increase in the US current account. Positive shocks to US savings generate current account deficits and increases in investment in other countries in the world. We cannot reject that the shock is uniformly transmitted across countries with different currency regimes and different levels of development. The results suggest highly integrated world capital markets with rapid adjustment. In short we find that the US acts like a large open economy and the world acts like a closed economy
Essays on the effects of exchange rate flexibility by Jay C Shambaugh( )

4 editions published in 2002 in English and held by 10 WorldCat member libraries worldwide

This dissertation examines the effects of exchange rate flexibility. The essays fit into the literature on the appropriate exchange rate regime and seek to better understand how exchange rate flexibility affects the domestic economy and thus better inform the debate on optimal currency arrangements
Study guide to accompany International economics by Linda S Goldberg( Book )

6 editions published between 2000 and 2009 in English and held by 9 WorldCat member libraries worldwide

International currency exposures, valuation effects and the global financial crisis by Agustín S Bénétrix( Book )

9 editions published between 2014 and 2015 in English and held by 7 WorldCat member libraries worldwide

We examine the evolution of international currency exposures, with a particular focus on the 2002-12 period. During the run up to the global financial crisis, there was a widespread shift towards positive net foreign currency positions, such that relatively few countries exhibited the archetypal emerging-market \short foreign currency" position on the eve of the global financial crisis. During the crisis, the upheaval in currency markets generated substantial currency-generated valuation effects - much of which were not reversed. There is some evidence that the distribution of valuation effects was stabilizing in the sense of showing a negative covariation pattern with pre-crisis net foreign asset positions
Rounding the Corners of the Policy Trilemma Sources of Monetary Policy Autonomy by Michael W Klein( Book )

7 editions published in 2013 in English and held by 4 WorldCat member libraries worldwide

A central result in international macroeconomics is that a government cannot simultaneously opt for open financial markets, fixed exchange rates, and monetary autonomy; rather, it is constrained to choosing no more than two of these three. In the wake of the Great Recession, however, there has been an effort to address macroeconomic challenges through intermediate measures, such as narrowly targeted capital controls or limited exchange rate flexibility. This paper addresses the question of whether these intermediate policies, which round the corners of the triangle representing the policy trilemma, afford a full measure of monetary policy autonomy. Our results confirm that extensive capital controls or floating exchange rates enable a country to have monetary autonomy, as suggested by the trilemma. Partial capital controls, however, do not generally enable a country to have greater monetary control than is the case with open capital accounts unless they are quite extensive. In contrast, a moderate amount of exchange rate flexibility does allow for some degree of monetary autonomy, especially in emerging and developing economies
The Evolution of Current Account Deficits in the Euro Area Periphery and the Baltics: Many Paths to the Same Endpoint by Joong Shik Kang( Book )

4 editions published in 2013 in English and Undetermined and held by 2 WorldCat member libraries worldwide

Explanations of the large current account deficits for the euro area periphery and the Baltics in the run up to the crisis revolve around two main factors: deteriorating export performance or demand driven booms. We add that there were important movements in transfers and net income balances. While export performance remained relatively stable in most countries, for some countries, when transfers declined, households and firms borrowed so as to maintain the same level of spending. This was part of a persistent failure to adjust to trade deficits, which, along with rising net income payments, l
Progress towards external adjustment in the Euro area periphery and the Baltics by Joong Shik Kang( Book )

2 editions published in 2014 in Undetermined and English and held by 1 WorldCat member library worldwide

"The euro area periphery countries and the Baltic countries, which had large current account deficits in the run-up to the crisis, needed adjustment of relative prices to achieve both internal and external balances. Thus far, tangible progress has been made through lower wages and/or higher productivity relative to trading partners ("internal devaluation"), which contributed to narrowing current account deficits and shifting output towards the tradables sector. While some early adjusters cut wages more rapidly followed by productivity improvement, others have only slowly improved productivity largely through labor shedding. This adjustment for most countries has come along with a substantial recession as the unit labor cost improvement has largely come from falling employment and much of the current account improvement from import compression. Going forward, these countries still need to generate growing tradables sector employment and to continue adjustment to prevent imbalances from returning as output gaps close"--Abstract
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Exchange rate regimes in the modern era
Alternative Names
Shambaugh, J.

Shambaugh, Jay

Shambaugh, Jay Curtis


English (191)

Study guide to accompany International economics, theory & policy, seventh edition, Paul R. Krugman, Maurice ObstfeldStudy guide to accompany Krugman/Obstfeld International economics, theory and policy, 8[th edition]Study guide to accompany International economics