NBER WORKING PAPER SERIES ENDOGENOUS EXCHANGE RATE PASS-THROUGH Michael B. Devereux
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... relationship between external assets and the real exchange rate characterizing the transition paths of most flexible-price, portfolio-balance models. In particular, the approach to long-run equilibrium may be oscillatory. Liberalization of the capital account is taken up in section 6.4. The key resu ...
... relationship between external assets and the real exchange rate characterizing the transition paths of most flexible-price, portfolio-balance models. In particular, the approach to long-run equilibrium may be oscillatory. Liberalization of the capital account is taken up in section 6.4. The key resu ...
Post-EMS Exchange Risk Trends: A Comparative Perspective
... price of volatility and the time-varying volatility of returns. In order to study these components, we employ two approaches: on the one hand, we compare two periods (before and after introduction of the euro) with the whole period. Thus, we estimate the DEM, BP and JY risk by using GARCH-M type mod ...
... price of volatility and the time-varying volatility of returns. In order to study these components, we employ two approaches: on the one hand, we compare two periods (before and after introduction of the euro) with the whole period. Thus, we estimate the DEM, BP and JY risk by using GARCH-M type mod ...
The Canadian Dollar and Commodity Prices
... significantly between different periods; i.e., they seem to be more stable than in the baseline specification. When we split the sample into the same four subperiods as in section 2.3, we see that the parameters are still not very stable for the first two subperiods, but the parameter estimates for ...
... significantly between different periods; i.e., they seem to be more stable than in the baseline specification. When we split the sample into the same four subperiods as in section 2.3, we see that the parameters are still not very stable for the first two subperiods, but the parameter estimates for ...
The Stockman Report
... the early 80s when we came into the White House in the Reagan administration. We were terrified by high and rising interest rates. That does get politician’s attention. Until we get interest rates that reflect the true cost of capital over time and the risks and the inflation that’s built into our s ...
... the early 80s when we came into the White House in the Reagan administration. We were terrified by high and rising interest rates. That does get politician’s attention. Until we get interest rates that reflect the true cost of capital over time and the risks and the inflation that’s built into our s ...
«Etre contesté, c`est être constaté» ("Being contested means being
... obeyed the orders of the Troika. He says that these programmes made debtors pay the costs of adjustment to ensure repayment of the creditors. An austerity programme was forced on Greece, the recession (-37% GDP between 2008 and 2014 according to Eurostat) led many Greeks to emigrate and the populati ...
... obeyed the orders of the Troika. He says that these programmes made debtors pay the costs of adjustment to ensure repayment of the creditors. An austerity programme was forced on Greece, the recession (-37% GDP between 2008 and 2014 according to Eurostat) led many Greeks to emigrate and the populati ...
HKMA-MAS Bilat Slides, 18 Jan 2003
... fertility have on real exchange rate? •Suppose fertility rate declines exogenously (e.g., improvement in female education, or decrease in contraception cost). •Child-rearing associated with increased consumption. So decline in fertility means increased savings. •Investment may drop with decline in f ...
... fertility have on real exchange rate? •Suppose fertility rate declines exogenously (e.g., improvement in female education, or decrease in contraception cost). •Child-rearing associated with increased consumption. So decline in fertility means increased savings. •Investment may drop with decline in f ...
NBER WORKING PAPER SERIES PRICE
... Consider a small, open economy and assume that financial variables influence the real variables in this economy with a lag; income, price levels, and the current account balance are assumed to be exogenous;5 the stock of wealth is given and capital gains or losses do not affect ...
... Consider a small, open economy and assume that financial variables influence the real variables in this economy with a lag; income, price levels, and the current account balance are assumed to be exogenous;5 the stock of wealth is given and capital gains or losses do not affect ...
Inflation, Exchange Rates and Interest Rates
... The study admits that several factors cause inflation in Ghana besides exchange rate movement and the nominal interest rates but the study will focus on these two factors in addition to the assessment of the FE and IFE. The FE theory postulates that nominal interest rates and the inflation rate move t ...
... The study admits that several factors cause inflation in Ghana besides exchange rate movement and the nominal interest rates but the study will focus on these two factors in addition to the assessment of the FE and IFE. The FE theory postulates that nominal interest rates and the inflation rate move t ...
Domestic securities markets and monetary policy in Latin America
... Structural change in the banking sector and the interest rate channel Specific structural changes in the banking sector, such as deregulation or consolidation, can also affect the interest rate channel. Although deregulation can take many forms, it is possible to illustrate its overall impact by con ...
... Structural change in the banking sector and the interest rate channel Specific structural changes in the banking sector, such as deregulation or consolidation, can also affect the interest rate channel. Although deregulation can take many forms, it is possible to illustrate its overall impact by con ...
Full Text - SERIWorld.org
... 21 (a 4.1% rise from two weeks ago), respectively. Major factors behind the movement: • Contracted investor sentiment, due to Argentine’s declaration of a moratorium on its foreign debt and the riots within the nation. • Worries that the weakened Japanese yen will negatively affect domestic exports. ...
... 21 (a 4.1% rise from two weeks ago), respectively. Major factors behind the movement: • Contracted investor sentiment, due to Argentine’s declaration of a moratorium on its foreign debt and the riots within the nation. • Worries that the weakened Japanese yen will negatively affect domestic exports. ...
Inflation Developments 1.
... and to keep worries about risk perception limited. In a period where the global risk perception tends to rise, avoiding any implementation that would deteriorate the expectations is of critical importance. In this framework, the continuation of the adaptation and convergence process to the European ...
... and to keep worries about risk perception limited. In a period where the global risk perception tends to rise, avoiding any implementation that would deteriorate the expectations is of critical importance. In this framework, the continuation of the adaptation and convergence process to the European ...
Translation Exposure
... management of a firm; if stockholders do not wish to accept the currency risk of any specific firm, they can diversify their portfolios to manage that risk, investors have already factored the foreign exchange effect into a firm’s market valuation – Currency risk management does not increase the exp ...
... management of a firm; if stockholders do not wish to accept the currency risk of any specific firm, they can diversify their portfolios to manage that risk, investors have already factored the foreign exchange effect into a firm’s market valuation – Currency risk management does not increase the exp ...
BALANCE OF PAYMENTS
... instrument that is linked to another specific financial instrument or indicator or commodity and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and commodity price risks, credit risk, etc.) can be traded in their own right in financial markets. The ...
... instrument that is linked to another specific financial instrument or indicator or commodity and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and commodity price risks, credit risk, etc.) can be traded in their own right in financial markets. The ...
Euro-Dollar Real Exchange Rate Dynamics in an
... countries (taking logs and first differences) is 0:18. Hence, models that incorporate complete markets are bound to fail in explaining key features of the international dimension of the data, as shown by Chari, Kehoe and McGrattan (2002, CKM) in a model with several nominal and real rigidities but w ...
... countries (taking logs and first differences) is 0:18. Hence, models that incorporate complete markets are bound to fail in explaining key features of the international dimension of the data, as shown by Chari, Kehoe and McGrattan (2002, CKM) in a model with several nominal and real rigidities but w ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... analysis and policy recommendations have been provided by HarrodDomar aggregate-growth models, static and dynamic linearprogramming models, and Chenery-Strout two-gap models.' These *This paper draws on Behrman, "Econometric Modeling of National Income Determination in Latin America, with Special Re ...
... analysis and policy recommendations have been provided by HarrodDomar aggregate-growth models, static and dynamic linearprogramming models, and Chenery-Strout two-gap models.' These *This paper draws on Behrman, "Econometric Modeling of National Income Determination in Latin America, with Special Re ...
Empirical Analysis of Macroeconomic Factors Affecting the Stock Price
... indexes in sequence exist between error terms. When the DW value falls on (du, 4 - du), you can think that there is no sequence between error terms. Here DW = 1.762, so there is no sequence. 2.5 Analysis of the model’s economic meaning In the paper, the exchange rate, interest rates, macroeconomic p ...
... indexes in sequence exist between error terms. When the DW value falls on (du, 4 - du), you can think that there is no sequence between error terms. Here DW = 1.762, so there is no sequence. 2.5 Analysis of the model’s economic meaning In the paper, the exchange rate, interest rates, macroeconomic p ...
As Interest Rates Rise, Muni Bonds` Unique Characteristics Matter
... The relative steadiness of muni bonds reflects the unique intrinsic characteristics of the bonds themselves. Many municipal bond investors in the US own these securities for the tax-free income they provide and tend to hold the bonds to maturity which reduces concern about the impact of rising and f ...
... The relative steadiness of muni bonds reflects the unique intrinsic characteristics of the bonds themselves. Many municipal bond investors in the US own these securities for the tax-free income they provide and tend to hold the bonds to maturity which reduces concern about the impact of rising and f ...
Exchange rate volatility and economic performance in Peru: A firm
... large contraction in economic activity and the collapse of the financial sector. The most striking characteristics of these currency crises were that, previous to the crises themselves, the degree of exchange rate misalignment was considered small, and the macroeconomic fundamentals were considered ...
... large contraction in economic activity and the collapse of the financial sector. The most striking characteristics of these currency crises were that, previous to the crises themselves, the degree of exchange rate misalignment was considered small, and the macroeconomic fundamentals were considered ...
A Currency Boards: Once and Future Monetary Regimes?
... and banks’ credit from increasing more rapidly than the boards’ stock of reserve assets for very long. These regulations also can specify minimum values for reserve requirements that prevent the money multiplier from rising very high. This linking of banks’ credit to reserve assets is most important ...
... and banks’ credit from increasing more rapidly than the boards’ stock of reserve assets for very long. These regulations also can specify minimum values for reserve requirements that prevent the money multiplier from rising very high. This linking of banks’ credit to reserve assets is most important ...
OMFIF-Bulletin-Octob..
... entral bankers responded to the global financial crisis with a mix of unconventional policies, including negative rates and asset purchases. Addressing September’s OMFIF main meeting in Rome, Banca d’Italia Governor Ignazio Visco noted that such policies helped cushion the initial shock, and that bo ...
... entral bankers responded to the global financial crisis with a mix of unconventional policies, including negative rates and asset purchases. Addressing September’s OMFIF main meeting in Rome, Banca d’Italia Governor Ignazio Visco noted that such policies helped cushion the initial shock, and that bo ...