
Maurice Obstfeld Working
... The main motivation to adjust exchange rates, in the present rarefied setup, would be to offset an excessive trend inflation rate in the center country. I have relegated this consideration ...
... The main motivation to adjust exchange rates, in the present rarefied setup, would be to offset an excessive trend inflation rate in the center country. I have relegated this consideration ...
The Unsustainable US Current Account Position Revisited * Maurice Obstfeld and Kenneth Rogoff
... of goods produced and exported by the United States. Although that effect realistically is absent in the short run, over the longer run it might soften the terms of trade effects of various economic disturbances. Third, the sanguine view that capital markets are deep and the US current account can e ...
... of goods produced and exported by the United States. Although that effect realistically is absent in the short run, over the longer run it might soften the terms of trade effects of various economic disturbances. Third, the sanguine view that capital markets are deep and the US current account can e ...
Section 4 The Exchange Rate in the Long Run
... – Several goods, such as services (haircuts) are nontradable. ...
... – Several goods, such as services (haircuts) are nontradable. ...
S0212088_en.pdf
... authorities do not think either it is necessary), as has happened in many events in Latin America. Among others, two reasons can be mentioned. One is that foreigners have a demand for dollardenominated assets. The other is that the US does not need to make its financial obligations contingent on com ...
... authorities do not think either it is necessary), as has happened in many events in Latin America. Among others, two reasons can be mentioned. One is that foreigners have a demand for dollardenominated assets. The other is that the US does not need to make its financial obligations contingent on com ...
FGV – Economia – 1
... as of 3:25 p.m. in New York, extending its loss this year to 26 percent. The jobless rate climbed to a five-year high of 7.5 percent last month. The central bank boosted its key rate to 14.25 percent in July, making it ever more expensive to finance the purchase of a home. “It’s a matter of demand ...
... as of 3:25 p.m. in New York, extending its loss this year to 26 percent. The jobless rate climbed to a five-year high of 7.5 percent last month. The central bank boosted its key rate to 14.25 percent in July, making it ever more expensive to finance the purchase of a home. “It’s a matter of demand ...
The black market exchange rate and Oil prices in
... exchange rate US Dollar/Algerian Dinar is more than the official exchange rate about 45%. This importance gap between two exchange rates reveals the informal sector in the Algerian economy. Between January 1975 and January 2003, the Algerian black market exchange rate has varied continuously; from J ...
... exchange rate US Dollar/Algerian Dinar is more than the official exchange rate about 45%. This importance gap between two exchange rates reveals the informal sector in the Algerian economy. Between January 1975 and January 2003, the Algerian black market exchange rate has varied continuously; from J ...
REAL EFFECTS OF DEVALUATION IN INDEBTED AND RISKY ECONOMIES
... Developing countries are scared stiff of devaluations that inflict negative impacts on domestic economic activity. Indeed, in the last decades there are several examples where devaluations – triggered or not by currency crises – have been followed, at least in the short run, by severe losses in term ...
... Developing countries are scared stiff of devaluations that inflict negative impacts on domestic economic activity. Indeed, in the last decades there are several examples where devaluations – triggered or not by currency crises – have been followed, at least in the short run, by severe losses in term ...
Title of Presentation Here
... Financing the Risks of Natural Disasters World Bank Conference June 2003 ...
... Financing the Risks of Natural Disasters World Bank Conference June 2003 ...
CURRENCY COMPETITION BETWEEN EURO AND US DOLLAR Li
... difficulties in establishing sound fiscal policies); political factors (e.g. the Danish referendum not joining the European Monetary Union); world oil shocks; policies by the European Central Bank (uncertainties, and/or an anti-growth bias); contrast with US new economy (e.g. productivity growth); p ...
... difficulties in establishing sound fiscal policies); political factors (e.g. the Danish referendum not joining the European Monetary Union); world oil shocks; policies by the European Central Bank (uncertainties, and/or an anti-growth bias); contrast with US new economy (e.g. productivity growth); p ...
Exchange rate or inflation targeting in monetary policy?
... support for the notion that countries are increasingly being forced to choose between either a “strict” exchange rate policy, involving the adoption of another currency or a currency board, or a much more flexible regime using a different nominal anchor for monetary policy. This is the theory of the ...
... support for the notion that countries are increasingly being forced to choose between either a “strict” exchange rate policy, involving the adoption of another currency or a currency board, or a much more flexible regime using a different nominal anchor for monetary policy. This is the theory of the ...
Dollarization - Peterson Institute for International Economics
... depreciation is called for, it will occur under dollarization via a gradual fall in nominal prices (rather than mainly via a rapid change in the nominal exchange rate under floating). At the end of the day, the real value of debt service will have increased relative to the price of nontradable goods ...
... depreciation is called for, it will occur under dollarization via a gradual fall in nominal prices (rather than mainly via a rapid change in the nominal exchange rate under floating). At the end of the day, the real value of debt service will have increased relative to the price of nontradable goods ...
Chapter 1: Introduction
... are less valued than the items they replace. The Paasche index reports, in the example of Box 2.5, that the skyrocketing price of oranges has no effect on fruit prices: it makes no sense to say that a frost that makes oranges completely unaffordable has no effect on the price of fruit. So which is t ...
... are less valued than the items they replace. The Paasche index reports, in the example of Box 2.5, that the skyrocketing price of oranges has no effect on fruit prices: it makes no sense to say that a frost that makes oranges completely unaffordable has no effect on the price of fruit. So which is t ...
Chapter Ten
... Countries agreed to peg their currencies to US$ which was convertible to gold at $35/oz. Agreed not to engage in competitive devaluations for trade purposes and defend their currencies. Weak currencies could be devalued up to 10% w/o approval. IMF and World Bank created. © McGraw Hill Companies, ...
... Countries agreed to peg their currencies to US$ which was convertible to gold at $35/oz. Agreed not to engage in competitive devaluations for trade purposes and defend their currencies. Weak currencies could be devalued up to 10% w/o approval. IMF and World Bank created. © McGraw Hill Companies, ...
NBER WORKING PAPERS SERIES THE FRANC ZONE IN AFRICA
... countries.6 On one dimension, however, the CFA countries continued to shine: their average inflation rate was roughly half that of other African countries in the 1970s, and one-seventh that of these countries in the l9BOs. Furthermore, the degree of inflation-reduction between the l970s and l98Os, c ...
... countries.6 On one dimension, however, the CFA countries continued to shine: their average inflation rate was roughly half that of other African countries in the 1970s, and one-seventh that of these countries in the l9BOs. Furthermore, the degree of inflation-reduction between the l970s and l98Os, c ...
The advantages of a small European Monetary Union
... foreign cheques, for example) also play a role in this market segment, the conversion costs are probably between 2 and 3%. An estimate of the possible direct cost savings shows that the effects are large in absolute terms but not particularly high in relation to GDP. Assuming for the sake of simplic ...
... foreign cheques, for example) also play a role in this market segment, the conversion costs are probably between 2 and 3%. An estimate of the possible direct cost savings shows that the effects are large in absolute terms but not particularly high in relation to GDP. Assuming for the sake of simplic ...
In Order to Form a More Perfect Monetary Union
... of credit. But although this prohibition was considered, it was not enacted. A second cause for doubt is that during the Confederation period, states that had issued paper money (for instance, Pennsylvania) experienced deflations as large as the wartime inflation. Also unanswered are the questions o ...
... of credit. But although this prohibition was considered, it was not enacted. A second cause for doubt is that during the Confederation period, states that had issued paper money (for instance, Pennsylvania) experienced deflations as large as the wartime inflation. Also unanswered are the questions o ...
EC2 scheme of work for EC2
... supply curves. Market equilibrium and calculating total revenue. Students have seen this material before (at the start of EC1) so we can skip through it quite quickly. Then: Three elasticities – price, supply and income. Applications of elasticity followed by an elasticity quiz. Introduce Production ...
... supply curves. Market equilibrium and calculating total revenue. Students have seen this material before (at the start of EC1) so we can skip through it quite quickly. Then: Three elasticities – price, supply and income. Applications of elasticity followed by an elasticity quiz. Introduce Production ...
AB Global High Yield Portfolio1
... Investment in the Fund entails certain risks. Investment returns and principal value of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund is meant as a vehicle for diversification and does not represent a complete invest ...
... Investment in the Fund entails certain risks. Investment returns and principal value of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund is meant as a vehicle for diversification and does not represent a complete invest ...
Addressing the Urgent Fiscal Crisis in South Sudan
... national economy. The consequence of which the economy has been deprived from getting scarce foreign exchange and essential imports for both consumption and production purposes. For instance, the report of the Auditor General to the National Legislative Assembly (NLA) shows that the total value of t ...
... national economy. The consequence of which the economy has been deprived from getting scarce foreign exchange and essential imports for both consumption and production purposes. For instance, the report of the Auditor General to the National Legislative Assembly (NLA) shows that the total value of t ...
Classical Economics & Relative Prices
... Suppose that trade is initially balanced. A rise in productivity increases investment demand In a closed economy, interest rates would rise In an open economy, the trade deficit would increase. In the case, the deficit increases from zero to $15,000 Do interest rates rise at all? ...
... Suppose that trade is initially balanced. A rise in productivity increases investment demand In a closed economy, interest rates would rise In an open economy, the trade deficit would increase. In the case, the deficit increases from zero to $15,000 Do interest rates rise at all? ...
Assignment3Answ
... worth of reserves (equal to 1000*0.30 = $300) each period to buy up the excess supply of shekels in the foreign exchange market. Hence the country’s international reserves will decline over time. c. If the shekel is fixed at 0.20 dollars, less than the fundamental value of 0.25 dollars, the shekel i ...
... worth of reserves (equal to 1000*0.30 = $300) each period to buy up the excess supply of shekels in the foreign exchange market. Hence the country’s international reserves will decline over time. c. If the shekel is fixed at 0.20 dollars, less than the fundamental value of 0.25 dollars, the shekel i ...
Answer Key
... Describe some advantages and disadvantages of using subjective measures vs. objective measures of health We see that East Asian countries do the worst in subjective measures of Health while the USA does by far the best. This contrasts with objective measures which we saw in our homework shows that t ...
... Describe some advantages and disadvantages of using subjective measures vs. objective measures of health We see that East Asian countries do the worst in subjective measures of Health while the USA does by far the best. This contrasts with objective measures which we saw in our homework shows that t ...