100 80 60 40
... merely involving the dollar but perhaps several currencies in the region. Such a
phenomenon would, in turn, have a negative impact on the regional economy by
making consumers and investors more risk averse, tempting them to divert more
savings into real estate and precious metals than is currently t ...
Foreign Direct Investment
... Trends in FDI
• Both the flow and stock of FDI in the world
economy have increased over the last 20 years
• FDI has grown more rapidly than world trade
and world output because
– firms still fear the threat of protectionism
– the general shift toward democratic political
institutions and free marke ...
The Drivers and Dynamics of Illicit Financial Flows from India: 1948
... economy under the leadership of P.V. Narasimha Rao, the twelfth Prime Minister of India. He has since
been seen as the father of Indian economic reforms. The then Finance Minister Dr. Manmohan Singh,
the present Prime Minister of India, launched India’s free market reforms that saved the country fro ...
... comparative static nature of the GTAP model.
The comparative static long-run closure developed here defines the long run in terms of the
steady state. In order to use the method of comparative steady states, the database must reflect
steady state conditions; this restricts the ratios between investm ...
The sustainability of public finances lies at the core of sound
... and currency crises. According to these authors “the lack of evidence on the relationship
between currency crises and budget deficits has arisen primarily because budget deficits as
measured and reported do not truly reflect the actual fiscal position of the countries”.
Blejer and Cheasty (1991) pro ...
LINK Global Economic Outlook 2015-2016 Unedited United Nations
... the range of 0 to ¼ percent until mid-2015. The Fed will then start to raise interest rates
gradually in the third quarter of 2015 with the federal funds interest rate reaching 2.75 per
cent by the end of 2016. It is also assumed that the Fed will not continue the QE but will hold
the assets that it ...
Official PDF , 37 pages
... sovereign debt. The third dimension involves factors that could stress private sector balance sheets,
and eventually lead to the buildup of contingent …scal liabilities— such as the ratio of external debtto-GDP or to foreign reserves, the share of short-term debt in external debt, and domestic credi ...
Final Budget Outcome 2013-14
... The Final Budget Outcome 2013-14 has been prepared in a manner consistent with the
Charter of Budget Honesty Act 1998 (the Charter). The Charter requires that, inter alia,
the Government provide a final budget outcome report no later than three months
after the end of the financial year. Consistent ...
mmi11 Sturm 15004126 en
... XDEBTGNI (external debt scaled to Gross National Income, GNI): First, a high debt
ratio may reduce the creditworthiness of the country concerned and, hence, increase its
demand for IMF credit. Second, so-called “highly-indebted poor countries” are only
eligible for debt relief, if they maintain macr ...
H E B C
... plans. They combined the flexibility and freedom for policymakers of a
floating-rate system, which the British representatives wanted, with the
nominal stability of the gold standard rule emphasized by the United
States. The system established was one of pegged exchange rates, but
members could alte ...
managing foreign exchange risk with derivatives
... risks to firm value arising from macroeconomic shocks, competitive forces, or strategic
concerns. For HDG, the cashflows to be hedged are typically the result of anticipated, but not
firmly committed, transactions. Specifically, HDG’s “economic” exposures arise primarily
from the following four sour ...
The Portuguese Crisis and the IMF - Independent Evaluation Office
... The first period that we study, 1995–2000, saw the run-up to and immediate aftermath of the
creation of the euro. In Portugal these years were marked by high real GDP growth, a substantial
decline in borrowing costs, and an investment boom. At the same time, the trade and current
account deficits ra ...
Foreign Direct Investment: South Africa’s Elixir of Life?
... countries were discouraged from turning towards FDI as it was regarded as an expensive form of
capital. Many thus borrowed instead and in so doing acquired significant international debt. As a
direct result of these debts already cash strapped, poor countries now experience even further
reduced acce ...
Multiple-choice questions to accompany
... a) it is added when measuring GDP, as an element of investment demand
b) it is added when measuring GDP, as an element of consumption demand
c) it is subtracted when measuring GDP, as an element of investment demand
d) it is subtracted when measuring GDP, as an element of consumption demand
41. If t ...
The determinants of liberalization of FDI policy in developing countries
... the 1980s and over five-fold (520%) during the 1990s, reaching
$22.9 billion in 1999. FDI inflows as a percentage of gross
fixed capital formation in developing countries grew from 3.6%
in 1990 to 14.3% by the decade’s end. Last, stocks of FDI as a
percentage of GDP doubled during the 1990s, increa ...
Generally, only accounts receivable is disclosed
since the other types of receivables are not
material. In some cases, the other types of
receivables are disclosed in the notes to the
... Firms then shift production to low-cost developing countries
when product standardization and market saturation give
rise to price competition and cost pressures
... There are two possible adverse effects of FDI on a host
1. with the initial capital inflows that come with FDI
must be the subsequent outflow of capital as the
foreign subsidiary repatriates earnings to its parent
2. when a foreign subsidiary imports a substan ...
Are stocks desirable in tax-deferred accounts?
... predicts that such violations are more likely, for example, when (i) the tax rate differential
across assets increases over time due either to tax law changes or to tax bracket changes for
investors; (ii) asset returns are more volatile; and (iii) investors anticipate large future liquidity
Global Economic Prospects January 2015
... Third-party content—The World Bank does not necessarily own each component of the content contained within
the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component
or part contained in the work will not infringe on the rights of those third parti ...
Uncertainty, Capital Flows, and Maturity Mismatch
... This Version: February 2015. First Version: November 2012
Output growth in emerging markets is significantly more volatile than in advanced
economies, due in large part to fluctuations in total factor productivity (TFP). This
paper shows that where maturity mismatch is widespread, as in eme ...
Balance of payments
The balance of payments, also known as balance of international payments and abbreviated BoP or BP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year). These transactions are made by individuals, firms and government bodies. Thus the balance of payments includes all external visible and non-visible transactions of a country . It represents a summation of country's current demand and supply of the claims on foreign currencies and of foreign claims on its currency..These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.It is prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus items. Uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items.When all components of the BOP accounts are included they must sum to zero with no overall surplus or deficit. For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counterbalanced in other ways – such as by funds earned from its foreign investments, by running down central bank reserves or by receiving loans from other countries.While the overall BOP accounts will always balance when all types of payments are included, imbalances are possible on individual elements of the BOP, such as the current account, the capital account excluding the central bank's reserve account, or the sum of the two. Imbalances in the latter sum can result in surplus countries accumulating wealth, while deficit nations become increasingly indebted. The term balance of payments often refers to this sum: a country's balance of payments is said to be in surplus (equivalently, the balance of payments is positive) by a specific amount if sources of funds (such as export goods sold and bonds sold) exceed uses of funds (such as paying for imported goods and paying for foreign bonds purchased) by that amount. There is said to be a balance of payments deficit (the balance of payments is said to be negative) if the former are less than the latter. A BOP surplus (or deficit) is accompanied by an accumulation (or decumulation) of foreign exchange reserves by the central bank.Under a fixed exchange rate system, the central bank accommodates those flows by buying up any net inflow of funds into the country or by providing foreign currency funds to the foreign exchange market to match any international outflow of funds, thus preventing the funds flows from affecting the exchange rate between the country's currency and other currencies. Then the net change per year in the central bank's foreign exchange reserves is sometimes called the balance of payments surplus or deficit. Alternatives to a fixed exchange rate system include a managed float where some changes of exchange rates are allowed, or at the other extreme a purely floating exchange rate (also known as a purely flexible exchange rate). With a pure float the central bank does not intervene at all to protect or devalue its currency, allowing the rate to be set by the market, and the central bank's foreign exchange reserves do not change, and the balance of payments is always zero.