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AN
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... received from seigniorage. If the country goes further and uses a foreign money, it loses all seigniorage. This paper uses an optimal inflation tax approach to analyze the consequences for optimal rates of income taxation and welfare of the alternative exchange rate and monetary arrangements. From t ...
Which Anchor Will Hold?
Which Anchor Will Hold?

... intermediate regimes. De jure pegs and pre-announced narrow bands are less common today. Also less common in the 21st century are the chronically collapsing currencies that accompany very high inflation. We classify these cases as freely falling, but in other classifications these “anchorless” curre ...
Revaluation of the Chinese currency and its impact on China
Revaluation of the Chinese currency and its impact on China

This PDF is a selec on from a published volume... Bureau of Economic Research
This PDF is a selec on from a published volume... Bureau of Economic Research

... when the Federal Reserve was lowering interest rates to cope with the contractionary shock resulting from the financial crisis that began during the summer of 2007. Not only does a commitment to and credibility for inflation control have the benefit of producing better inflation outcomes, but it als ...
No. 193. A Simultaneous Model of the Swedish Krona, the US Dollar
No. 193. A Simultaneous Model of the Swedish Krona, the US Dollar

This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... by foreign interests, and fish meal paid for imported manufactures. In turn, the government had little direct participation in the economy, and economic activities were largely unregulated. Industrialization by import substitution and government spending in the infrastructure started with the first ...
Knowledge Management in Finance
Knowledge Management in Finance

... would be referred to as spillover effect showed how contagion alone could make an economy more vulnerable to a currency crisis. ...
THE ROLE OF MODERN FINANCIAL SYSTEM
THE ROLE OF MODERN FINANCIAL SYSTEM

... currency board arrangements to EMU without any transitional period of greater exchange rate flexibility could be the first-best policy for prospective EU membership. However, if country choose to maintain its currency board up to the point of adopting the euro, it will face a number of challenges. C ...
The Long or Short of it: Determinants of Foreign Currency
The Long or Short of it: Determinants of Foreign Currency

... where xt denotes the portfolio payoff, st is the domestic-currency price of foreign currency, ρ is the coefficient of relative risk aversion, (1 + α)/2 is the share of home goods in nominal expenditure, b is the degree of pass through and ω is the elasticity of substitution between home and foreign goo ...
The Impact of RMB Appreciation on Shandong Foreign Trade Enterprises
The Impact of RMB Appreciation on Shandong Foreign Trade Enterprises

... the cost of capital investment, and bring about the decline of the competitiveness of Chinese exports, and also affect the development of Shandong export’s foreign trade enterprises, for example Japan, in 1985, in order to curb the export surge of cheap Japanese goods, the United States, France, Ger ...
A Simple, Structural, and Empirical Model of the Antipodean Transmission Mechanism ∗
A Simple, Structural, and Empirical Model of the Antipodean Transmission Mechanism ∗

... across the Tasman Sea. This issue is of importance for the conduct of policy since Australia is at once New Zealand’s largest trading partner and her main competitor on export markets. Because of that and their close economic as well as geographic proximity, I treat both economies are well integrate ...
Why are some exchange rates more volatile than others? Evidence from
Why are some exchange rates more volatile than others? Evidence from

... Nowak and Ricci, 2004) has shown that after controlling for macroeconomic conditions, increasing the level of reserves (relative to short-term debt) also reduces the volatility of the real e¤ective exchange rate. Hviding et al (2004) argue that although theoretically freely-‡oating exchange rates do ...
Discussion papers are a series of manuscripts in their draft form
Discussion papers are a series of manuscripts in their draft form

... After departing from the gold standard, BOJ reduced the rate three times in 1932 and once in 1933. The rate fell to an unprecedented low of 3.65 percent from July 1933 through the end of Takahashi’s term.10 I should note that interest rates in private sector were higher than the ODR and more or less ...
   ASIAN INITIATIVES
  ASIAN INITIATIVES

... portfolio  investments  in  East  Asia  are  coming  from  outside  the  region.  Although  there  has  been  an  increase  from  2001  to  2007  in  the  share  of  East  Asian  portfolio  investments in the same region with Singapore leading the intra‐region investments,  the  share  of  East  Asi ...
2. Global setting and outlook - Hong Kong Monetary Authority
2. Global setting and outlook - Hong Kong Monetary Authority

... 2. Global setting and outlook Global financial markets have recently experienced sharp sell-offs amid fears that sharper economic slowdown in Mainland China, continued weakness in global commodity prices and the resultant stress on emerging market economies could result in a deeper and more protract ...
GE Bank Indonesia Paper1
GE Bank Indonesia Paper1

... makes. Bonds in this model are traded bonds, which have the lowest risk level represented by government bonds. Bonds are traded in Open Market Operations conducted by the central bank. In the case of Indonesia, the proxy for this bond is Sertifikat Bank Indonesia (SBI) issued by the central bank as ...
The Official Start of QE2 - Canada`s Excellent Future
The Official Start of QE2 - Canada`s Excellent Future

... 10-year yields surged to almost 9% yesterday (from about 5% in early-August), before declining 76 bps today on more conciliatory talk from European officials. Prior to today’s bond rally, Portuguese yields were up another 50bps (to 7.0%) this week and Greece yields were another 15 bps higher (to 11. ...
International Finance
International Finance

... capital accounts), it must finance the difference by borrowing or selling more assets than it buys (a surplus on the financial account). When a country sells more goods and services than it buys (a surplus on the combined current and capital accounts), it uses the earnings of foreign money to buy fo ...
Comparative Practice 2012 WHAP Name: E. Napp Date: The
Comparative Practice 2012 WHAP Name: E. Napp Date: The

... (D) Copper mining was a critical part of the economy in both colonies. (E) all of the above ...
Extending the Reserve Bank’s macroeconomic balance model of the exchange rate
Extending the Reserve Bank’s macroeconomic balance model of the exchange rate

... and trade elasticities that determine how responsive New Zealand’s trade balance is to movements in the real exchange rate. In the earlier version of the model the parameters that described these assumptions were held constant at estimates of their medium term values. However, the model’s estimates ...
China`s Exchange Rate Policy - Peterson Institute for International
China`s Exchange Rate Policy - Peterson Institute for International

... is particularly likely to be the case for small countries that are price takers in international goods and capital markets. Capital controls, in theory, could prevent large inflows (outflows) when domestic interest rates are higher (lower) than foreign rates, but in practice it is difficult to maint ...
DOC - World bank documents
DOC - World bank documents

... of risk and tighter global credit conditions, signs of increasing weakness in the US economy, rising global inflation and volatile equity markets. The new member states of the EU, and Croatia as well, have yet to be more substantially affected by these external developments, but risks have risen tha ...
Does the Kiwi fly when the Kangaroo jumps?
Does the Kiwi fly when the Kangaroo jumps?

... the New Zealand economy, could come from the traditional trade channel: A stronger Australian economy would require more of New Zealand’s exports. The boost can also come from FDI, where the Australian firms may invest more in the New Zealand economy. The remainder of the paper is structured as foll ...
Convergence and shocks in the road to EU: Empirical investigations
Convergence and shocks in the road to EU: Empirical investigations

...  Does poor countries (catch-up countries) need the same cycle and the same institutions like in the rich countries? ...
The Real Exchange Rate and US Manufacturing Profits
The Real Exchange Rate and US Manufacturing Profits

... elasticities are not constant, and markups decline with a rise in product prices, pass-through is less than complete even with constant marginal cost, and the dollar price of output sold abroad must rise relative to the domestic price, P^t. Our interest is not in pricing behavior, per se, but rather ...
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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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