Chapter 16 Output and the Exchange Rate: the Short-Run
... • The CA in the DD-AA model has assumed that nominal exchange rate changes cause proportional changes in the real exchange rates in the short run. • Degree of Pass-through – It is the percentage by which import prices rise when the home currency depreciates by 1%. – In the DD-AA model, the degree of ...
... • The CA in the DD-AA model has assumed that nominal exchange rate changes cause proportional changes in the real exchange rates in the short run. • Degree of Pass-through – It is the percentage by which import prices rise when the home currency depreciates by 1%. – In the DD-AA model, the degree of ...
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... Which of the following statements is not true about the law of one price a. investors prefer more wealth to less b. investments that offer the same return in all states must pay the risk-free rate c. if two investment opportunities offer equivalent outcomes, they must have the same price d. investor ...
... Which of the following statements is not true about the law of one price a. investors prefer more wealth to less b. investments that offer the same return in all states must pay the risk-free rate c. if two investment opportunities offer equivalent outcomes, they must have the same price d. investor ...
Session # Presentation Title
... » Time for natural fiscal break: » End of fiscal year » Jan 1, 2000 ...
... » Time for natural fiscal break: » End of fiscal year » Jan 1, 2000 ...
On the Political Economy of Monetary Policy
... monetary base strictly follows the changes in the stock of international reserves. The regime mimics most features of a gold standard. However, while the latter was an international system of fixed exchange rates, the Argentine currency board was launched in a world of floating exchange rates. We be ...
... monetary base strictly follows the changes in the stock of international reserves. The regime mimics most features of a gold standard. However, while the latter was an international system of fixed exchange rates, the Argentine currency board was launched in a world of floating exchange rates. We be ...
Does It Matter If Statistical Agencies Frame the CPI Report on a 1
... This table offers some preliminary support for the hypothesis. In Canada and the UK the expected reaction – the bond market falls when inflation is higher than expected – comes entirely with respect to the 12-month number, which is the one that these authorities headline. The coefficient is negative ...
... This table offers some preliminary support for the hypothesis. In Canada and the UK the expected reaction – the bond market falls when inflation is higher than expected – comes entirely with respect to the 12-month number, which is the one that these authorities headline. The coefficient is negative ...
Some thoughts on the Inflation Outlook and Monetary Policy
... and prolonged than expected – especially in the euro area. In many economies, deleveraging (or simply reluctance to extend already high debt levels) has been reflected in slow growth in household demand, weaker-than-forecast business investment, and persistent levels of excess capacity. Our economy ...
... and prolonged than expected – especially in the euro area. In many economies, deleveraging (or simply reluctance to extend already high debt levels) has been reflected in slow growth in household demand, weaker-than-forecast business investment, and persistent levels of excess capacity. Our economy ...
121111 FMO presentation Luxembourg EMW 2012 - e-MFP
... Within FMO I look after the Micro and SME end of the markets (with a portfolio of almost EUR 500 mln) and our funding for Capacity Development (a few mln EUR per year). Examples range from the First leasing company in country X, a new SME guarantee fund in country Y, the first investment in Zimbabwe ...
... Within FMO I look after the Micro and SME end of the markets (with a portfolio of almost EUR 500 mln) and our funding for Capacity Development (a few mln EUR per year). Examples range from the First leasing company in country X, a new SME guarantee fund in country Y, the first investment in Zimbabwe ...
ch09
... The East Asian Currency Crisis of 1997-1998 • In mid-1997, foreign investors began to worry about the long-run sustainability of growth in East Asia – they began to change their opinions of the fundamental long-term value of East Asia’s exchange rates (0) • the value of the currencies fell causing ...
... The East Asian Currency Crisis of 1997-1998 • In mid-1997, foreign investors began to worry about the long-run sustainability of growth in East Asia – they began to change their opinions of the fundamental long-term value of East Asia’s exchange rates (0) • the value of the currencies fell causing ...
short selling regulations
... Designated Securities provided he has first obtained the approval of the Chairman of the Board, which may be given either orally or in writing. Notice of such restriction or prohibition to the Exchange Participant, whether oral or written, shall take effect immediately upon communication to or servi ...
... Designated Securities provided he has first obtained the approval of the Chairman of the Board, which may be given either orally or in writing. Notice of such restriction or prohibition to the Exchange Participant, whether oral or written, shall take effect immediately upon communication to or servi ...
Global Policy Challenges in the Post-Crisis Period Jun Il Kim
... With greater responsibility, of course, might also come higher risk. For example, liquidity-providing central banks might have to bear balance sheet or policy risks if offering currency swap arrangements to emerging economies. However, the costs of such risk-taking would be far smaller than those of ...
... With greater responsibility, of course, might also come higher risk. For example, liquidity-providing central banks might have to bear balance sheet or policy risks if offering currency swap arrangements to emerging economies. However, the costs of such risk-taking would be far smaller than those of ...
NBER WORKING PAPER SERIES EXTERNAL ADJUSTMENT Maurice Obstfeld Working Paper
... These substantial asset cross-holdings represent an upsurge in international diversification -- through currencies with variable exchange rates, bonds of different maturities, and equities -- with the potential for sharp changes in asset prices leading to large international redistributions of wealt ...
... These substantial asset cross-holdings represent an upsurge in international diversification -- through currencies with variable exchange rates, bonds of different maturities, and equities -- with the potential for sharp changes in asset prices leading to large international redistributions of wealt ...
The Returns and Risks From Investing
... Copyright 2013 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the ...
... Copyright 2013 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the ...
the global imbalances: what is the problem
... ‘the world real interest rate’ (a somewhat over-simplified but useful concept), and the dispersed initiatives are those that affect savings and investment, both private and public in all the different countries of the world that make use of this market. When the United States buys goods and services ...
... ‘the world real interest rate’ (a somewhat over-simplified but useful concept), and the dispersed initiatives are those that affect savings and investment, both private and public in all the different countries of the world that make use of this market. When the United States buys goods and services ...
The US Dollar, IMF and the Global Financial Crisis
... together with gold, and reserve currencies (dollar, Euro, pound, yen, etc.) are to be used as international money. 2. SDR is not gold and not paper money. It only exists in the books of the IMF. 3. This is nothing new. In developed countries, currency notes and coins are no longer used much for mark ...
... together with gold, and reserve currencies (dollar, Euro, pound, yen, etc.) are to be used as international money. 2. SDR is not gold and not paper money. It only exists in the books of the IMF. 3. This is nothing new. In developed countries, currency notes and coins are no longer used much for mark ...
How does monetary policy affect real sector of Papua New Guinea?
... private capital outflows increased, the domestic currency, kina, depreciated despite central bank intervention (Marciniak 2006). Expansionary policies of the 1990s However, as the pick-up of the economy was too slow, the government decided in the second half of 1990s to launch expansionary policies ...
... private capital outflows increased, the domestic currency, kina, depreciated despite central bank intervention (Marciniak 2006). Expansionary policies of the 1990s However, as the pick-up of the economy was too slow, the government decided in the second half of 1990s to launch expansionary policies ...
Harris Delias Alan C. Stockman Working Paper No. 13142
... future nominal and real variables that are important in exchange rate determination. Nominal goods prices are viewed as less flexible and hence less responsive to this information. While many models have been developed with these characteristics, two important examples are Dornbusch (1976) and Mussa ...
... future nominal and real variables that are important in exchange rate determination. Nominal goods prices are viewed as less flexible and hence less responsive to this information. While many models have been developed with these characteristics, two important examples are Dornbusch (1976) and Mussa ...
A New Currency for the East African Community?
... When fulfilled for a group of regions or countries, the corresponding member economies would most likely be linked by trade in goods and services and also by factor mobility. Such group of countries could therefore be considered as an ideal regional zone, having a single common currency or group of ...
... When fulfilled for a group of regions or countries, the corresponding member economies would most likely be linked by trade in goods and services and also by factor mobility. Such group of countries could therefore be considered as an ideal regional zone, having a single common currency or group of ...
14.02 PRINCIPLES OF MACROECONOMICS Fall 2003- Quiz Three READ INSTRUCTIONS FIRST:
... 5. In Country A, the growth rate of nominal GDP per capita is 5 per cent. In Country B, the growth rate of real GDP (NB: real GDP, not real GDP per capita) is 3 per cent. In Country C the growth rate of real GDP per capita is 4 per cent. If population growth and inflation is positive in all three c ...
... 5. In Country A, the growth rate of nominal GDP per capita is 5 per cent. In Country B, the growth rate of real GDP (NB: real GDP, not real GDP per capita) is 3 per cent. In Country C the growth rate of real GDP per capita is 4 per cent. If population growth and inflation is positive in all three c ...
Capital Flows and Financial Crises - E-Prints Complutense
... might be summarized as follows (see more details in Bustelo, 1998 and Bustelo et al., 1999 and 2000). First, financial opening, together with the currency pegs to the US dollar and with the low interest rates prevailing a the time in developed countries, led to large capital inflows, mainly in the f ...
... might be summarized as follows (see more details in Bustelo, 1998 and Bustelo et al., 1999 and 2000). First, financial opening, together with the currency pegs to the US dollar and with the low interest rates prevailing a the time in developed countries, led to large capital inflows, mainly in the f ...
An interest rate defense of a fixed exchange rate?
... see that this requires a departure from uncovered interest parity (UIP), which was a basic KFG building block. UIP implies that the domestic currency interest rate is the passive reflection of devaluation expectations. There is, therefore, no room for active interest rate policy. A policy-responsive ...
... see that this requires a departure from uncovered interest parity (UIP), which was a basic KFG building block. UIP implies that the domestic currency interest rate is the passive reflection of devaluation expectations. There is, therefore, no room for active interest rate policy. A policy-responsive ...
CONCLUSIONS: GLOBALISATION AND THE END OF THE NATION
... analysis, the power of an interest group to assert its preferences is directly related to its capacity to move, which in turn depends on the mobility of its factor. If an interest group is able to credibly threaten leaving the country, its bargaining power increases. Therefore, globalization reduces ...
... analysis, the power of an interest group to assert its preferences is directly related to its capacity to move, which in turn depends on the mobility of its factor. If an interest group is able to credibly threaten leaving the country, its bargaining power increases. Therefore, globalization reduces ...
Referee report on Ph.D. dissertation “Essays on the Behavior of
... hypothesis is that the market makers with large investors have a significant source of private information on the PSE. The paper relies of private information measure (PIN), proposed in Easley et al. (1996), in order to detect whether some market makers possess private information about a large bloc ...
... hypothesis is that the market makers with large investors have a significant source of private information on the PSE. The paper relies of private information measure (PIN), proposed in Easley et al. (1996), in order to detect whether some market makers possess private information about a large bloc ...
File
... A current account deficit allows a country to enjoy greater consumption than production-even on borrowed money. If deficit is relatively short-lived-less chance of damage ,if inflows on capital account are used for investments. For example; The difference with the USA capital account deficit is that ...
... A current account deficit allows a country to enjoy greater consumption than production-even on borrowed money. If deficit is relatively short-lived-less chance of damage ,if inflows on capital account are used for investments. For example; The difference with the USA capital account deficit is that ...