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Criteria To Be Considered In Assessing A Country`s
Criteria To Be Considered In Assessing A Country`s

... In this paper I compare and discuss the foreign exchange currency regime options available to Argentina (section 1) and then discuss the formal criteria to assess a country’s readiness for dollarization (section 2). Alternative exchange rate regimes have different implications for the amount of dome ...
Balance of Payments: Accounts and Analysis
Balance of Payments: Accounts and Analysis

... does a current account deficit become a source of concern? When it is a lasting (structural) deficit rather than a temporary (cyclical) deficit  When it is financed by short-term external borrowing or by a protracted reduction in net foreign assets  When foreign exchange reserves are low in terms ...
Paper III - Is East Africa an Optimum Currency Area
Paper III - Is East Africa an Optimum Currency Area

... arrangement in that the nominal exchange rate is already redundant as a policy instrument. Frankel and Rose (1996) also noted that a small open economy will ...
Market Integration and Contagion in Asian Emerging Stock and
Market Integration and Contagion in Asian Emerging Stock and

... capital markets since their official liberalization dates by estimating and testing a dynamic international asset pricing model (ICAPM) in the absence of purchasing power parity (PPP) using an asymmetric multivariate GARCH-in-Mean (MGARCH-M) approach. Also examined in this paper is whether there are ...
DCF Tutorial Part 1
DCF Tutorial Part 1

We estimate a small macro model, where the short
We estimate a small macro model, where the short

... Granger’s concept of “thick modeling”, i.e., diversification, is surely the right strategy to ensure robustness, among other things. In this paper we use three different methods to analyze issues about GCC currency area. First, we don’t use a VAR, SVAR…etc but rather we estimate a small simultaneous ...
the relationship between exchange rate volatility and balance of
the relationship between exchange rate volatility and balance of

... controls were an easy response to contain balance of payments and inflationary pressures, but they created major distortions in the economy that were not evident until the early 1980s. The major instruments of monetary policy in Kenya have been open market operations, cash and liquidity ratios, cred ...
Models of Economic and Financial Crises
Models of Economic and Financial Crises

... rates, gross international reserves and short-term interest rate differentials (e.g. local versus US rates when dealing with crises in the Philippines). Explanatory variables typically would be variables in the real sector of the economy, financial variables, external sector and fiscal variables. Th ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero

... A salient feature of the global economy is the emergence of significant global imbalances over the past decade, reflected principally by the large current account deficit of the U.S. with the rest of the world portrayed in the top panel of figure 1. There has been considerable debate over the source ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero

... A salient feature of the global economy is the emergence of significant global imbalances over the past decade, reflected principally by the large current account deficit of the U.S. with the rest of the world portrayed in the top panel of figure 1. There has been considerable debate over the source ...
understanding monetary policy series no 24 how central
understanding monetary policy series no 24 how central

... Price instability manifests as price volatility, where volatility refers to the pace at which prices move higher or lower, and how wildly they swing. It is the frequency and severity with which the general price level rises and falls. In general, price instability is caused by factors including mone ...
Russian experience Digital BRICS conference, New Delhi, 29.04.2016
Russian experience Digital BRICS conference, New Delhi, 29.04.2016

... of society. They are empowering the more entrepreneurial individuals, but may put psychological stress on others. ...
The US-EU Relationship: How European Integration Affects US
The US-EU Relationship: How European Integration Affects US

... economies, exports as a percentage of GDP have been increasing steadily. Since, other things being equal, exports have been rising; we expect β1 to be positive. This would mean that all other things equal, the amount of exports in one year would be larger than the amount of exports in the previous y ...
Time-Intensive R&D and Unbalanced Trade∗
Time-Intensive R&D and Unbalanced Trade∗

... The theory is framed in the classical two-country model of trade in varieties à la Krugman (1980), which is amended in two dimensions. First, countries trade in two periods, which allows for non-trivial international borrowing and lending. Second, varieties are produced in two different sectors under ...
Aalborg Universitet Monetary Policy in an Agent-Based Monetary Production Economy Bruun, Charlotte
Aalborg Universitet Monetary Policy in an Agent-Based Monetary Production Economy Bruun, Charlotte

... interest they may use information on the rate of change of the volume of money, or the level of activity in the model. 3.2 The Money Stock as Policy Target Following monetarist prescriptions, monetary authorities may attempt to control the volume of money by increasing interest rates when the volume ...
OCASSIONAL POLICY PAPER MEASURES FOR FINANCIAL
OCASSIONAL POLICY PAPER MEASURES FOR FINANCIAL

... Macroeconomic stability risks stem from the large size of potential inflows relative to the ability of the economy to absorb these flows. Large capital inflows may lead to excessive expansion of domestic demand, which is likely to be reflected in inflationary pressures, real exchange rate appreciati ...
Brazil in the 21 Century:
Brazil in the 21 Century:

... exchange rate (since it was a crawling peg, the pressure would materialize in a loss of foreign reserves to preserve the peg). During those periods, the BCB would act as a developed country central bank, concerned only with the inflation expectation and with the output gap. During crises, however, t ...
Why Trade Forex
Why Trade Forex

... for any person that prefers his money working for him. Forex means the foreign currency exchange, and that today alone nearly $2 Trillion will be traded by banks, governments, corporations, trading partners and private and corporate speculators. Forex traders around the world are competing against ...
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES

... fundamentals are steadily deteriorating in the period leading up to a speculative attack or not. However, it is difficult to infer from the data whether the collapse of the peg is a result of deteriorating fundamentals or self-fulfilling prophecies (see, for example, Eichengreen et al. (1995) and Kr ...
Interest rate projections in theory and practice
Interest rate projections in theory and practice

... percentage points (see Chart 1). We indicated that the interest rate would remain low until we saw clear signs of rising inflation. Since summer 2003, the Norwegian economy has been in a clear upswing. Low interest rates, high oil prices and a favourable global environment have been important drivin ...
Postwar Iraq's Financial System:  Building from Scratch Looney, Robert 2005
Postwar Iraq's Financial System: Building from Scratch Looney, Robert 2005

... rates.” On July 18, 2004, the Central Bank of Iraq raised about 150 billion dinars ($103 million) for the government, selling threemonth bonds. The bonds offered a market-determined interest rate of 5-8 percent, not enough to entice foreign banks given the political risks involved. Instead, the vast ...
Working Paper No. 412 - Levy Economics Institute of Bard College
Working Paper No. 412 - Levy Economics Institute of Bard College

This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy

... Over the past twenty years there has been a marked shift toward more flexible exchange rate regimes and more open capital accounts by both industrial and emerging market countries. Exchange rate targets accounted for over half of monetary policy regimes in 1985, but declined to just 5 percent in 200 ...
Foreign Currency Borrowing: The Case of Hungary
Foreign Currency Borrowing: The Case of Hungary

... Numerous theories have been proposed to account for liability dollarization. The ‘original sin’ theory of Eichengreen and Hausmann (1999) argues that less developed countries cannot borrow abroad (or even domestically on longer maturities) in their national currency. Indeed, less developed countries ...
Meanwhile, Jassim Alseddiqi, Chairman of SHUAA Capital, said
Meanwhile, Jassim Alseddiqi, Chairman of SHUAA Capital, said

... Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices. ...
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Currency intervention

Currency intervention, also known as foreign exchange market intervention, or currency manipulation, occurs when a government buys or sells foreign currency to push the exchange rate of its own currency away from equilibrium value or to prevent the exchange rate from moving toward its equilibrium value.Generally, central banks intervene in foreign exchange markets in order to achieve a variety of overall economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy and how they are reflected in currency manipulation depend on a number of factors, including the stage of a country’s development, the degree of financial market development and integration, and the country’s overall vulnerability to shocks.
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