NBER WORKING PAPER SERIES LESSONS FROM THE DEBT-DEFLATION THEORY OF SUDDEN STOPS
... time and states depending on whether the credit constraints bind and on how binding they are, which foreign lenders could charge so that borrowers find it optimal to respect the credit constraints in a credit market where the constraints are not imposed directly.2 The justification for this could be ...
... time and states depending on whether the credit constraints bind and on how binding they are, which foreign lenders could charge so that borrowers find it optimal to respect the credit constraints in a credit market where the constraints are not imposed directly.2 The justification for this could be ...
Economic Review no 2 - National Bank of Rwanda
... because of low wage level. In November 2007, inflation stood at 0.6%, against 0.3% in October, while it represented 0.4% when you exclude foodstuffs, against 0.1% in the same month. ...
... because of low wage level. In November 2007, inflation stood at 0.6%, against 0.3% in October, while it represented 0.4% when you exclude foodstuffs, against 0.1% in the same month. ...
Global Savings, Investments, and World Real
... world savings and investment provides insights into the factors likely to have contributed to the decline in the world real interest rate. • The behaviour of the world real interest rate has been affected by a number of key variables that change relatively slowly over time. These variables include l ...
... world savings and investment provides insights into the factors likely to have contributed to the decline in the world real interest rate. • The behaviour of the world real interest rate has been affected by a number of key variables that change relatively slowly over time. These variables include l ...
On the determinants of firms` financial surpluses and deficits
... measure economic phenomena. The activity of multinational enterprises (MNEs) is difficult to capture both for national statisticians and policy considerations (UNECE, 2011). For instance prices for goods and services exchanged between group entities differ from market prices, introducing distortions ...
... measure economic phenomena. The activity of multinational enterprises (MNEs) is difficult to capture both for national statisticians and policy considerations (UNECE, 2011). For instance prices for goods and services exchanged between group entities differ from market prices, introducing distortions ...
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... (1). We then predict that the French franc would not succumb to any attack. The Italian lira would be devalued because both relative prices were “out of line” and because the equilibrium real exchange declined. We suggest that our analysis has many useful implications and applications. There is grea ...
... (1). We then predict that the French franc would not succumb to any attack. The Italian lira would be devalued because both relative prices were “out of line” and because the equilibrium real exchange declined. We suggest that our analysis has many useful implications and applications. There is grea ...
A survey of the effects of discretionary fiscal policy
... consumers. Buffer stock agents keep a buffer of assets in order to avoid that consumption drops to zero in any single period (because of some restriction on borrowing against future income). As a ...
... consumers. Buffer stock agents keep a buffer of assets in order to avoid that consumption drops to zero in any single period (because of some restriction on borrowing against future income). As a ...
the elusive recovery
... different imbalances and the policy tradeoffs. So far, the adjustment has remained asymmetric, weighing mainly on deficit countries. The MIP should be made more symmetric so as to encourage reflationary policies in countries with high current account surpluses. A bottom value should be introduced fo ...
... different imbalances and the policy tradeoffs. So far, the adjustment has remained asymmetric, weighing mainly on deficit countries. The MIP should be made more symmetric so as to encourage reflationary policies in countries with high current account surpluses. A bottom value should be introduced fo ...
The Impact of the Financial Crisis on Emerging Asia
... and South Africa. II. Impact of the Global Financial Crisis on Asian Economies: Some Mood Music A. Before (pre‐crisis)‐ to‐ now behavior of some key economic variables As useful background, we summarize recent developments on: economic growth; inflation rates; foreig ...
... and South Africa. II. Impact of the Global Financial Crisis on Asian Economies: Some Mood Music A. Before (pre‐crisis)‐ to‐ now behavior of some key economic variables As useful background, we summarize recent developments on: economic growth; inflation rates; foreig ...
Rapid-Growth Markets
... (RGMs). Though still uneven, the pickup in activity that began there at the end of last year is becoming the driver of global recovery, even as developed economies continue to lag. For directors and executives charged with shaping investment policies, decisions are becoming more urgent. Only the ver ...
... (RGMs). Though still uneven, the pickup in activity that began there at the end of last year is becoming the driver of global recovery, even as developed economies continue to lag. For directors and executives charged with shaping investment policies, decisions are becoming more urgent. Only the ver ...
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... affects its impact. He thus distinguished between (i) deficit financed expenditure, (ii) government expenditure financed by taxing profits, and (iii) net government revenue from persons; i.e. the net balance between taxes and transfers. As I said, the first two items add to aggregate demand because ...
... affects its impact. He thus distinguished between (i) deficit financed expenditure, (ii) government expenditure financed by taxing profits, and (iii) net government revenue from persons; i.e. the net balance between taxes and transfers. As I said, the first two items add to aggregate demand because ...
Brazil: Recent Macroeconomic and Financial Developments
... Recent Initiatives to Inject Liquidity in Foreign Currency Market • Sales of USD in repurchase agreement auctions; • Reduction of reserve requirements for banks acquiring USD with repurchase agreement; ...
... Recent Initiatives to Inject Liquidity in Foreign Currency Market • Sales of USD in repurchase agreement auctions; • Reduction of reserve requirements for banks acquiring USD with repurchase agreement; ...
A Review of Crisis Management Programs Supported by IMF Stand
... The IMF-supported programs likely helped avert deeper contractions of output and a financial meltdown. While the average GDP growth of SBA countries in 2009 was lower by 2.7 percentage points than that of their non-program peers, the difference narrowed in 2010 to 1.6 percentage points. Though attri ...
... The IMF-supported programs likely helped avert deeper contractions of output and a financial meltdown. While the average GDP growth of SBA countries in 2009 was lower by 2.7 percentage points than that of their non-program peers, the difference narrowed in 2010 to 1.6 percentage points. Though attri ...
NBER WORKING PAPER SERIES Michael B. Devereux
... Gourinchas (2007) refers to these as ‘unpredictable’ valuation terms. But other recent discussion of valuation effects in international financial data stress the presence of ‘predictable’ valuation effects at the national level, meaning that there are predictable excess returns on some component of a ...
... Gourinchas (2007) refers to these as ‘unpredictable’ valuation terms. But other recent discussion of valuation effects in international financial data stress the presence of ‘predictable’ valuation effects at the national level, meaning that there are predictable excess returns on some component of a ...
Are Budget Deficits Used Strategically?
... that the incumbent’s probability of re-election has a significant effect on the budget surplus in either model. Then, I do some robustness checks. To control for the fact that fiscal decisions are taken once a year and quarterly data may introduce noise and sampling errors, all the regressions are a ...
... that the incumbent’s probability of re-election has a significant effect on the budget surplus in either model. Then, I do some robustness checks. To control for the fact that fiscal decisions are taken once a year and quarterly data may introduce noise and sampling errors, all the regressions are a ...
The Current Account and the Interest Rate Differential in Canada
... study this version of the interest differential because it is widely used in the literature (see, for example, Letendre (2004), Nason and Rogers (2003), and Schmitt-Grohé and Uribe 2003). In this version, the interest differential worsens with a deterioration in the net foreign asset position. A ris ...
... study this version of the interest differential because it is widely used in the literature (see, for example, Letendre (2004), Nason and Rogers (2003), and Schmitt-Grohé and Uribe 2003). In this version, the interest differential worsens with a deterioration in the net foreign asset position. A ris ...
The long history of financial boom-bust cycles in Iceland1 Part I
... deficit and, to a lesser extent, the real exchange rate, give a more robust warning signal. Our results also suggest an important role of contagion from global financial crises in most of these episodes, with five of the six episodes coinciding with a global financial crisis of some type; only the f ...
... deficit and, to a lesser extent, the real exchange rate, give a more robust warning signal. Our results also suggest an important role of contagion from global financial crises in most of these episodes, with five of the six episodes coinciding with a global financial crisis of some type; only the f ...
Chapter 2: Review of Literature
... Chancellor of Exchequer defined the inflationary gap in budget speech of 1941 as ...
... Chancellor of Exchequer defined the inflationary gap in budget speech of 1941 as ...
Politics, Surpluses, Deficits, and Debt Chapter 12
... Both short- and long-term economic frameworks would recommend cutting the national debt. Instead of doing so, government looked at ways to spend the surplus, either by cutting taxes or by increasing spending. ...
... Both short- and long-term economic frameworks would recommend cutting the national debt. Instead of doing so, government looked at ways to spend the surplus, either by cutting taxes or by increasing spending. ...
The Politics of Investment Partisanship and the Sectoral Allocation of
... with the interests of domestic business owners. When in power the party of the right will offer a more favorable investment environment to foreign investors that would flow into those sectors where FDI is a complement of domestic capital, and limit the inflow of foreign capital to those sectors wher ...
... with the interests of domestic business owners. When in power the party of the right will offer a more favorable investment environment to foreign investors that would flow into those sectors where FDI is a complement of domestic capital, and limit the inflow of foreign capital to those sectors wher ...
(TZS) versus the US Dollar (USD) and other major world currenc
... contributes to the weakening of the TZS as the majority of export earnings of mining companies are not repatriated to Tanzania. The business people feel that this issue should be addressed in the mining industry and that mining companies should be obliged to repatriate a significant percentage of th ...
... contributes to the weakening of the TZS as the majority of export earnings of mining companies are not repatriated to Tanzania. The business people feel that this issue should be addressed in the mining industry and that mining companies should be obliged to repatriate a significant percentage of th ...
integration of the baltic states into the eu and institutions of fiscal
... finances promote price stability and strong, sustainable growth in output and employment. In principle, market forces could work against irresponsible fiscal policies. However, practice shows that the discipline exerted by financial markets does not necessarily ensure that governments take into acco ...
... finances promote price stability and strong, sustainable growth in output and employment. In principle, market forces could work against irresponsible fiscal policies. However, practice shows that the discipline exerted by financial markets does not necessarily ensure that governments take into acco ...
Effects of the Exchange Rate on Output and Price Level:Evidence
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
S0701051_en.pdf
... the Commission’s country offices in Argentina, Brazil, Colombia, the United States of America and Uruguay. We are grateful to the central banks and statistical offices of the countries in the region for their valuable cooperation in supplying the statistical information used in the preparation of t ...
... the Commission’s country offices in Argentina, Brazil, Colombia, the United States of America and Uruguay. We are grateful to the central banks and statistical offices of the countries in the region for their valuable cooperation in supplying the statistical information used in the preparation of t ...
Optimal Reserves in Financially Closed Economies
... for the central bank, and the spread between the cost of external borrowing and the return on reserves. The carry cost is a theoretical construct that can be calibrated based on the model and involves a counterfactual interest rate that is not observed in the data. We then calibrate our model using ...
... for the central bank, and the spread between the cost of external borrowing and the return on reserves. The carry cost is a theoretical construct that can be calibrated based on the model and involves a counterfactual interest rate that is not observed in the data. We then calibrate our model using ...
Surprising Similarities: Recent Monetary Regimes of Small Economies Andrew K. Rose
... switched their regimes countercyclically, that is, especially during recessions. Since small economies now have two reasonably stable monetary regime options that appear to be starkly different, it is natural to ask which has performed better, especially during the turbulent period since 2006. In pr ...
... switched their regimes countercyclically, that is, especially during recessions. Since small economies now have two reasonably stable monetary regime options that appear to be starkly different, it is natural to ask which has performed better, especially during the turbulent period since 2006. In pr ...