Who’s Manipulating Whom? E BRI D APER • TRA
... the foundation for a more market-based currency system. Earlier this year, the government legalized currency trading between banks in China. The daily opening price for the yuan is now set by trading among 13 banks, so-called market makers who assume the risk of daily fluctuations. The Chinese gover ...
... the foundation for a more market-based currency system. Earlier this year, the government legalized currency trading between banks in China. The daily opening price for the yuan is now set by trading among 13 banks, so-called market makers who assume the risk of daily fluctuations. The Chinese gover ...
What is a macroprudential policy framework?
... bubble, central bank may act at an early stage when asset prices are starting to accelerate and before the expansion in credit has become too sharp. • By raising interest rates CB may help to avoid a subsequent collapse in asset prices that could lead to considerably lower output and inflation in th ...
... bubble, central bank may act at an early stage when asset prices are starting to accelerate and before the expansion in credit has become too sharp. • By raising interest rates CB may help to avoid a subsequent collapse in asset prices that could lead to considerably lower output and inflation in th ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... rates. In the early 1980s more than 40 IMF members had at least one multiple currency practice, and in its 1984 review the IMF (p. 37) noted: During 1983, as in 1980-82, about one-third of the Fund’s members engaged in multiple currency practices, although on a trdde-weighted basis the proportion of ...
... rates. In the early 1980s more than 40 IMF members had at least one multiple currency practice, and in its 1984 review the IMF (p. 37) noted: During 1983, as in 1980-82, about one-third of the Fund’s members engaged in multiple currency practices, although on a trdde-weighted basis the proportion of ...
Economic Effects of Currency Unions ∗ Silvana Tenreyro Robert J. Barro
... A vast empirical literature in international finance investigates the effects of exchange rate regimes on different economic outcomes. For example, several studies have analyzed the effect of exchange rate variability on bilateral trade, foreign direct investment, and relative prices. Other studies hav ...
... A vast empirical literature in international finance investigates the effects of exchange rate regimes on different economic outcomes. For example, several studies have analyzed the effect of exchange rate variability on bilateral trade, foreign direct investment, and relative prices. Other studies hav ...
Fixing Argentina Executive Summary by Kurt Schuler No. 445
... offered nothing but a diet of ashes. Critics of the current policies must propose other options, not just complain about existing policies. Nobody has offered a set of alternative policies that is both comprehensive and beneficial, though a few economists have made valuable analyses of and suggestio ...
... offered nothing but a diet of ashes. Critics of the current policies must propose other options, not just complain about existing policies. Nobody has offered a set of alternative policies that is both comprehensive and beneficial, though a few economists have made valuable analyses of and suggestio ...
Equilibrium Exchange Rates - National Bureau of Economic Research
... determine equilibrium exchange rates that may be appropriate targets for coordinated policies. I do not here attempt to address the question of whether it makes sense to have exchange rate targets at all, which would bring a number of additional issues into the picture; of course to the extent that ...
... determine equilibrium exchange rates that may be appropriate targets for coordinated policies. I do not here attempt to address the question of whether it makes sense to have exchange rate targets at all, which would bring a number of additional issues into the picture; of course to the extent that ...
Downgrade risk of South Africa`s sovereign debt
... Reasonable steps have been taken to ensure the validity and accuracy of the information in this document. However, Momentum Investments does not accept any responsibility for any claim, damages, loss or expense, howsoever arising out of or in connection with the information in this document, whether ...
... Reasonable steps have been taken to ensure the validity and accuracy of the information in this document. However, Momentum Investments does not accept any responsibility for any claim, damages, loss or expense, howsoever arising out of or in connection with the information in this document, whether ...
a stable money demand function for zimbabwe as a pre
... The model was estimated by Ordinary Least Squares (OLS). The results showed that it was the expected exchange rate that entered the estimated equation for Zimbabwe’s money demand function more appropriately than the foreign interest rate. This approach yielded a predicted path of M1 velocity that cl ...
... The model was estimated by Ordinary Least Squares (OLS). The results showed that it was the expected exchange rate that entered the estimated equation for Zimbabwe’s money demand function more appropriately than the foreign interest rate. This approach yielded a predicted path of M1 velocity that cl ...
Put-Call Parity, Transaction Costs and PHLX Currency
... are time synchronized, because the FX and interest rates used to determine the PCP deviations are not synchronized, the deviations do not necessarily represent actual arbitrage opportunities. However, due to PHLX market organization and trading conventions used to price and trade PHLX foreign exchan ...
... are time synchronized, because the FX and interest rates used to determine the PCP deviations are not synchronized, the deviations do not necessarily represent actual arbitrage opportunities. However, due to PHLX market organization and trading conventions used to price and trade PHLX foreign exchan ...
The New Zealand experience of short- and drivers and policy implications
... The New Zealand dollar exchange rate is widely perceived to be among the more volatile in its advanced-country peer group. 2 Exchange rate volatility is also often viewed as potentially harmful to macroeconomic performance, through adverse effects on trade or investment, or by encouraging protection ...
... The New Zealand dollar exchange rate is widely perceived to be among the more volatile in its advanced-country peer group. 2 Exchange rate volatility is also often viewed as potentially harmful to macroeconomic performance, through adverse effects on trade or investment, or by encouraging protection ...
PDF
... These impacted upon the value of its overall exports, their profitability and their competitiveness and led to a mild recession during the first two quarters of 1997, from which the economy was starting to recover. Japan's economic slowdown had started in 1990, and had led to a steadily declining ex ...
... These impacted upon the value of its overall exports, their profitability and their competitiveness and led to a mild recession during the first two quarters of 1997, from which the economy was starting to recover. Japan's economic slowdown had started in 1990, and had led to a steadily declining ex ...
Economics of Monetary Union 10e
... Benefits of an international currency: easy government finance • US profits most from international role of dollars • Foreign central banks (e.g. China) hold a few trillion dollars as reserves • Thereby allowing for easier finance of US government deficits • This can also lead to moral hazard ...
... Benefits of an international currency: easy government finance • US profits most from international role of dollars • Foreign central banks (e.g. China) hold a few trillion dollars as reserves • Thereby allowing for easier finance of US government deficits • This can also lead to moral hazard ...
NBER WORKING PAPER SERIES ECONOMIC EFFECTS OF CURRENCY UNIONS Silvana Tenreyro
... the independent decisions of these two countries to keep a close parity with a third country’s currency. In this case, the level of exchange rate variability between the two countries will be exogenous to their bilateral trade. The methodology proposed in this study exploits this triangular relatio ...
... the independent decisions of these two countries to keep a close parity with a third country’s currency. In this case, the level of exchange rate variability between the two countries will be exogenous to their bilateral trade. The methodology proposed in this study exploits this triangular relatio ...
ECONOMIC SURVEY OF NORWAY 2007: MONETARY
... inflation and stabilising growth, while fiscal policy looks after the real exchange rate (Box 2.1). The framework has performed rather well thus far. Norges Bank has earned a high reputation for its conduct of monetary policy and is considered an exemplary inflation-targeting central bank. The curre ...
... inflation and stabilising growth, while fiscal policy looks after the real exchange rate (Box 2.1). The framework has performed rather well thus far. Norges Bank has earned a high reputation for its conduct of monetary policy and is considered an exemplary inflation-targeting central bank. The curre ...
Greek exchange rate policies for the EMU. The economy, the public and the Euro.
... This study will not question the reasoning behind the choice of the European Council to use the CERP proposed method instead of the other proposed methods. This is because the arguments put forward by both the CERP paper (Begg et al, 1997), and Paul De Grauwe against the use of those methods can per ...
... This study will not question the reasoning behind the choice of the European Council to use the CERP proposed method instead of the other proposed methods. This is because the arguments put forward by both the CERP paper (Begg et al, 1997), and Paul De Grauwe against the use of those methods can per ...
Tight Money in a Post-Crisis Defense of the Exchange Rate: What
... than the spot rate that prevails before a monetary shock, making Se+1 a decreasing function of R. It is easy to see that if this is so, condition (1) would immediately imply that increases in R must be associated with decreases in S—that is, tight money must be associated with exchange rate apprecia ...
... than the spot rate that prevails before a monetary shock, making Se+1 a decreasing function of R. It is easy to see that if this is so, condition (1) would immediately imply that increases in R must be associated with decreases in S—that is, tight money must be associated with exchange rate apprecia ...
Energy prices and the real exchange rate of commodity
... T OT refers to the terms-of-trade measured in foreign prices, BS embodies the Balassa-Samuelson effect: an increase in productivity in the exposed sector will tend to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously d ...
... T OT refers to the terms-of-trade measured in foreign prices, BS embodies the Balassa-Samuelson effect: an increase in productivity in the exposed sector will tend to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously d ...
Money and the Rule of Law in Ecuador
... Given Germany’s experience with hyperinflation in the 1920s, it is not surprising that members of the Freiburg School (Ordo-liberals) elaborated on the money—rule of law nexus after the Second World War. For example, Walter Eucken, the founder of the Freiburg School, laid great stress on the rule of ...
... Given Germany’s experience with hyperinflation in the 1920s, it is not surprising that members of the Freiburg School (Ordo-liberals) elaborated on the money—rule of law nexus after the Second World War. For example, Walter Eucken, the founder of the Freiburg School, laid great stress on the rule of ...
Official PDF , 23 pages
... than the spot rate that prevails before a monetary shock, making Se+1 a decreasing function of R. It is easy to see that if this is so, condition (1) would immediately imply that increases in R must be associated with decreases in S—that is, tight money must be associated with exchange rate apprecia ...
... than the spot rate that prevails before a monetary shock, making Se+1 a decreasing function of R. It is easy to see that if this is so, condition (1) would immediately imply that increases in R must be associated with decreases in S—that is, tight money must be associated with exchange rate apprecia ...
PDF
... T OT refers to the terms-of-trade measured in foreign prices, BS embodies the Balassa-Samuelson effect: an increase in productivity in the exposed sector will tend to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously d ...
... T OT refers to the terms-of-trade measured in foreign prices, BS embodies the Balassa-Samuelson effect: an increase in productivity in the exposed sector will tend to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously d ...
German Monetary Policy in the Second Half
... and against the backdrop of staggeringly high unemployment during the depression, there was unanimous political opposition within postwar Germany to an independent central bank (Buchheim 2002). At the same time, there was a demand for monetary stability. That demand arose out of the prewar experienc ...
... and against the backdrop of staggeringly high unemployment during the depression, there was unanimous political opposition within postwar Germany to an independent central bank (Buchheim 2002). At the same time, there was a demand for monetary stability. That demand arose out of the prewar experienc ...
24. The Limits of Monetary Policy
... shocks that would lead to one-time increases or decreases in the price level. The public’s trust and confidence in the future purchasing power of the dollar can be permanently increased by a legal mandate directing the Fed to adopt a monetary rule to achieve long-run price stability. According to Po ...
... shocks that would lead to one-time increases or decreases in the price level. The public’s trust and confidence in the future purchasing power of the dollar can be permanently increased by a legal mandate directing the Fed to adopt a monetary rule to achieve long-run price stability. According to Po ...
Nominal GDP Targeting for Middle-Income Countries
... change. The version of NGDP targeting that has been revived in recent years is often a proposal to target the level of NGDP rather than the rate of change. (Recall that the immediate context, in the case of industrialized countries, is an attempt to achieve monetary expansion even when the nominal i ...
... change. The version of NGDP targeting that has been revived in recent years is often a proposal to target the level of NGDP rather than the rate of change. (Recall that the immediate context, in the case of industrialized countries, is an attempt to achieve monetary expansion even when the nominal i ...
QUANTIFYING THE SECOND-ROUND EFFECTS OF SUP
... expectations. It is assumed that nominal wage contracts are set according to the corresponding specification of the open economy version of the Fuhrer, Moore (1995) model. In the Fuhrer–Moore model it is assumed that nominal wage contracts are set in order to keep the resulting real wage close to th ...
... expectations. It is assumed that nominal wage contracts are set according to the corresponding specification of the open economy version of the Fuhrer, Moore (1995) model. In the Fuhrer–Moore model it is assumed that nominal wage contracts are set in order to keep the resulting real wage close to th ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... depreciated real exchange rate in an effort to reduce domestic absorption and stimulate expenditure switching toward exports. In this vein, the authorities adopted a flexible exchange rate policy, which took the form of daily adjustments (from mid-1981 on) against a currency basket. As was shown pre ...
... depreciated real exchange rate in an effort to reduce domestic absorption and stimulate expenditure switching toward exports. In this vein, the authorities adopted a flexible exchange rate policy, which took the form of daily adjustments (from mid-1981 on) against a currency basket. As was shown pre ...