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Expectations, Risk, Interest Rates and Consequences for External
Expectations, Risk, Interest Rates and Consequences for External

... Given essentially perfect capital mobility, Australian interest rates and the expected exchange rate change should satisfy international arbitrage conditions. We examine an arbitrage condition for a US investor, with a view to explaining the large short-term real interest differential between Austra ...
LF and FEM
LF and FEM

... together to determine equilibrium, and then the effects of shifts in demand and supply are analyzed. • The two markets are linked together and r, NCO, EP/P*, and NX are jointly determined. • Different policies and situations are then analyzed and their affect on r, NCO, EP/P*, and NX identified. ...
70013029I_en.pdf
70013029I_en.pdf

... When there are no firm bases for projecting future opportunities, decisions and interpretations of observed behaviour are necessarily of a speculative nature, not only because the plans made at a given moment are contingent upon uncertain future events, but also because, for each agent, those plans ...
bnp paribas issuance bv
bnp paribas issuance bv

... rights of the holders of CBBCs and the obligations of the Issuer with respect to the CBBCs shall cease. Market participants are requested to note that all Post MCE Trades will be cancelled by the Stock Exchange either on 12 July 2017 or on the following Trading Day.Post MCE Trades refer to all aucti ...
FRBSF E L CONOMIC ETTER
FRBSF E L CONOMIC ETTER

... short-term maturities and did not apply to international trade or long-term foreign investment transactions. The exchange rate was then pegged, interest rates were lowered, and commercial banks were encouraged to lend. While Malaysia’s capital controls successfully curbed capital flows, there is no ...
bnp paribas issuance bv
bnp paribas issuance bv

... rights of the holders of CBBCs and the obligations of the Issuer with respect to the CBBCs shall cease. Market participants are requested to note that all Post MCE Trades will be cancelled by the Stock Exchange either on 12 July 2017 or on the following Trading Day.Post MCE Trades refer to all aucti ...
Choosing an Anchor Currency for the Pacific
Choosing an Anchor Currency for the Pacific

... Solomon Islands, Tonga and Vanuatu – that issue their own currencies. Empirical estimates indicate that these states already stabilize their currencies against the US dollar because of their large and increasing trade with emerging Asia which denominates its trade in US dollars. Building on the theo ...
9.220 — CORPORATION FINANCE
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... the one-year forward rates that can be determined today. I.e., the one year forward rates of interest are the best unbiased estimates of future one year spot rates. If this theory is true, then an implication is that we can use forward rates (that we can easily calculate) to determine expected futur ...
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inb#14

... expenditure of effort and money will enable the firm to market its goods and services  Assessment of basic need potential  Easier for producers of specialized industrial materials or equipment  More difficult for specialized consumer products LO1 ...
The Fiscal and Monetary History of Chile 1960-2010
The Fiscal and Monetary History of Chile 1960-2010

... reached almost 170%, a record since the Chilean independence in 1810 (see Braun-Llona et al. (1995)). In terms of real activity, according to Edwards (1985), a particularly serious problem evolved around the de facto process of expropriations of manufacturing firms implemented by Allende´s administr ...
Exchange Rates and Asset Prices: heterogeneous agents at work
Exchange Rates and Asset Prices: heterogeneous agents at work

... attention by some of the most renowned economic experts. This is due to two main factors. On the one hand the two time series show similarities typical of financial markets. This makes it possible to use similar statistical tools to study both the markets. On the other hand a full understanding of t ...
NBER Working Paper Series
NBER Working Paper Series

... demand shocks for most of the countries included in the study, are negatively correlated with few exceptions (France and Poland), while supply shocks are positive and strong for France and Poland, while for Germany and Italy is negative and seems relatively week; In Romania’s case, demand disturbanc ...
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... AR(1), i.e., autoregressive of order one, with parameter ρ. Equation (2) is a Taylor rule in which the central bank is depicted as setting an interest rate instrument Rt each period so as to tighten policy when inflation exceeds its target value π* and/or when output is high. In (2), yt should be in ...
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This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy

... The framework is a variation of OR’s model of current account adjustment and the exchange rate. Whereas OR studied a simple two-country endowment economy, we add production, nominal price rigidities, and monetary policy. In addition, while OR performed the static experiment of examining the response ...
Mankiw 6e PowerPoints
Mankiw 6e PowerPoints

... A fiscal expansion causes national saving to fall. The effects of this depend on openness & size: ...
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... A fiscal expansion causes national saving to fall. The effects of this depend on openness & size: ...
How Could ECB-Fed Divergence Affect LIBOR? - Blog
How Could ECB-Fed Divergence Affect LIBOR? - Blog

... date of publication, are subject to change based on subsequent developments, and may not ref lect the views of the f irm as a whole. This commentary is not intended to be relied upon as a f orecast, research, or investment advice regarding a particular investment or the markets in general. Nor is ...
Generate PDF - H-Net
Generate PDF - H-Net

... Pho claims, “revealed to the U.S. public the far-reaching consequences of the currency black market in South Vietnam for the United States: that millions of U.S. taxpayer dollars went straight to the bank accounts of Americans, Vietnamese, and citizens of other nationalities” (775). Pho’s examinatio ...
NBER TECHNICAL WORKING PAPERS SERIES FINANCIAL INTERMEDIATION AND MONETARY
NBER TECHNICAL WORKING PAPERS SERIES FINANCIAL INTERMEDIATION AND MONETARY

... of this paper is obviously not the discovery that changes in the rate of growth of money can affect the level of real activity both domestically and internationally. This is a well—known issue and is one of the main subjects of macroeconomics and international finance. However, most of the classic m ...
Mankiw 6e PowerPoints
Mankiw 6e PowerPoints

... A fiscal expansion causes national saving to fall. The effects of this depend on openness & size: ...
Exchange Rate Devaluation and Reshuffling of Global Jobs
Exchange Rate Devaluation and Reshuffling of Global Jobs

... transferred to the home country (Das, 1980; Buffie, 1982; Hanson, 1983). Devaluations would then modify the allocation of production processes. Various models have been produced to deal with the international splitting of production processes. The oldest approach is developed by Vanek (1963) and fol ...
What Drives Movements in Exchange Rates?
What Drives Movements in Exchange Rates?

... The long-run relationship that was identified between the real Can$/US$ exchange rate and the two commodity variables has considerable intuitive appeal, since Canada is known as a major commodity exporter. It is important to enter these variables separately, however, as they seem to affect the Canad ...
Maintaining Financial Stability in the People`s Republic of China
Maintaining Financial Stability in the People`s Republic of China

... of financial regulators. Government intervention is excessive in some areas of the financial system and wholly insufficient in other areas. For example, while much of the rest of the economy has been opened to competition from private and foreign enterprises, the financial sector is still dominated ...
Currency Investor Roundtable
Currency Investor Roundtable

... passion for the currencies in which they trade, who have an instinctive understanding of the behaviour of the markets, but who can clearly demonstrate the ability to think independently of the herd. Experience matters a lot in this respect. Apart from that, my list of key attributes is unsurprising: ...
What Drives Movements in Exchange Rates?
What Drives Movements in Exchange Rates?

... The long-run relationship that was identified between the real Can$/US$ exchange rate and the two commodity variables has considerable intuitive appeal, since Canada is known as a major commodity exporter. It is important to enter these variables separately, however, as they seem to affect the Canad ...
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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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