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on Central and Western Asia |
| By: | Yasin Kursat Onder (Central Bank of Turkey); Mauricio Villamizar-Villegas (Banco de la República de Colombia) |
| Abstract: | Many central banks that have opted for monetary autonomy have also been reluctant to relinquish control over the value of their currencies. As a result, they have operated through both interest rate and foreign exchange interventions. However, in the context of the monetary trilemma, both effects can potentially offset each other. Using daily data from the Central Bank of Turkey during the period of 2002 - 2010, we study the effects of simultaneous policies by first purging the intended monetary decisions from responses to real-time macroeconomic variables, and then determining their impact on economic activity. We find that the Central Bank of Turkey adjusted its policy rate mostly in response to inflation levels relative to both the yearly target and agents’ expectations, and conducted purchases and sales of foreign currency in response to exchange rate behavior. These responses varied depending on whether interventions were pre-announced. We also find that unannounced purchases of foreign currency had a significant effect in reducing exchange rate volatility but appeared to have no effect on exchange rate changes. On the other hand, changes in the policy rate significantly affected inflation but had no discernible effect on output growth. Classification JEL: E43, E52, E58, F31 |
| Keywords: | Central bank intervention, simultaneous policies, monetary shocks, price puzzle, monetary policy trilemma, foreign exchange intervention. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:893&r=cwa |
| By: | Adam Heal (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)); Teodora Mladenovic (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)) |
| Abstract: | This policy brief provides information including that Kazakhstan joined the Eurasian Customs Union (ECU) with Russia and Belarus in 2010 leading to changes in Kazakhstan’s tariff schedule and non-tariff measures (NTMs).By 2015, tariffs will nearly have doubled on a trade-weighted basis from 2009.NTMs have also become more trade restrictive. This has led to some trade diversion towards ECU partners and away from other trading partners, in particular the European Union and China. In addition, Kazakhstan has been negotiating World Trade Organization (WTO) membership since 1996. Eurasian Customs Union membership has further complicated negotiations over WTO accession. |
| Keywords: | Eurasian Customs Union, economic diversification, tariff, tariff-rate quotas |
| JEL: | F1 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:unt:arpobr:apb39&r=cwa |
| By: | Angélica Guerra-Barón; Álvaro Méndez |
| Abstract: | Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa (CIVETS) have shaped their foreign economic policies in line with the Washington Consensus and have implemented strategies to attract foreign investment as a possible way out of the current financial crisis. Once multilateral trade rules were agreed under the WTO, these countries revised their domestic trade policies in order to cope with both the organisational principles and the international investment standards promoted by international financial institutions. Despite the fact that transnational economic groups have been focussing their attention on these ‘new investment miracles’ since the coining of the term CIVETS in 2009, the CIVETS governments have shown no interest in coordinating their foreign economic policies on investment issues. In this paper we argue that the emerging economies of CIVETS exemplify a case of unintended foreign economic policy convergence, facilitated by systemic causes. These include their common need to overcome historic processes of adverse economic transition while getting inserted successfully into world trade; as well as domestic variables like the similar ideas of CIVETS policy makers. |
| Keywords: | foreign economic policies; CIVETS; convergence; emerging economies; foreign direct investment (FDI); negotiating strategies; free trade agreements (FTAs); bilateral investment treaties (BITs) |
| JEL: | J1 R14 J01 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:62636&r=cwa |
| By: | Aydoğuş, Osman; Deger, Cagacan; Tunalı Çalışkan, Elif; Gürel Günal, Gülçin |
| Abstract: | Izmir has lost the bid for EXPO 2020. Izmir’s expectations were high, but to the best information of the authors, these expectations were never systematically quantified. This article quantifies the expected expenditures related to a mega event in Izmir due to i) additional hotel constructions, and, ii) arrival of foreign visitors. Then, the effects of these additional expenditures on regional economy are examined through a closed regional I-O model, where closure is due to endogenized consumption expenditures. The calculations are based on a regional I-O table of İzmir, available from İzmir Regional Development Agency IZKA. It is observed that constructions related to a mega event require considerable recycling imports, due to scrap metal dependency of metal production. |
| Keywords: | EXPO; Mega-Events; Regional Economic Analysis; Input-Output Tables; Impact Analysis |
| JEL: | C63 L83 R12 R15 |
| Date: | 2015–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65547&r=cwa |