Question 2
... capital is flowing out of China to places with higher returns. • Phenomenon of global capital flowing “uphill” means capital is flowing from poorer to richer countries. • This is the opposite of what traditional economic theory predicts!! • One reason: China’s demand for assets cannot be met – in te ...
... capital is flowing out of China to places with higher returns. • Phenomenon of global capital flowing “uphill” means capital is flowing from poorer to richer countries. • This is the opposite of what traditional economic theory predicts!! • One reason: China’s demand for assets cannot be met – in te ...
How does the Exchange Rate React to a Cost-Push
... expected inflation and e is the logarithm for the real exchange rate, i.e. the price for foreign goods measured in NOK relative to the price of Norwegian goods. In addition, the variables ε, η and ν are shocks (or disturbances) and the β-, α- and θ parameters are positive constants. Equation (2) is ...
... expected inflation and e is the logarithm for the real exchange rate, i.e. the price for foreign goods measured in NOK relative to the price of Norwegian goods. In addition, the variables ε, η and ν are shocks (or disturbances) and the β-, α- and θ parameters are positive constants. Equation (2) is ...
International Coordination
... dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instruments at particular settings, relative to the Nash non-cooperative equilibrium where each chooses its policies taking the others as given.4 The question of international coordina ...
... dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instruments at particular settings, relative to the Nash non-cooperative equilibrium where each chooses its policies taking the others as given.4 The question of international coordina ...
Understanding the financial crisis in Asia Bhagwan Chowdhry , Amit Goyal
... Ž1983.. A loss of confidence, possibly irrational, on the part of short-term debt holders causes them to withdraw their funds en masse, causing the local banks to fail and the level of intermediation in economy to fall drastically. This leads to real contraction in the economy 12 , causing asset pri ...
... Ž1983.. A loss of confidence, possibly irrational, on the part of short-term debt holders causes them to withdraw their funds en masse, causing the local banks to fail and the level of intermediation in economy to fall drastically. This leads to real contraction in the economy 12 , causing asset pri ...
Document
... spread in the Amman Stock Exchange. Daily trading data for 50 selected companies, during a 6 years’ time period from 2001 to 2006, was collected from ASE publications. The suggested explanatory variables (security's specific factors: stock price, price volatility, trading volume, number of trades), ...
... spread in the Amman Stock Exchange. Daily trading data for 50 selected companies, during a 6 years’ time period from 2001 to 2006, was collected from ASE publications. The suggested explanatory variables (security's specific factors: stock price, price volatility, trading volume, number of trades), ...
6) stabilization programs in turkey
... are important (Demircan ve Ener, 2003: 15). Ensuring continuity of the applied program promoted the 12% rate of inflation, developed the average growth rate of 5% (Çolak, 2004: 1-2). Despite the successes of the program, the stock of debt and current account deficit still increases, TL was overvalue ...
... are important (Demircan ve Ener, 2003: 15). Ensuring continuity of the applied program promoted the 12% rate of inflation, developed the average growth rate of 5% (Çolak, 2004: 1-2). Despite the successes of the program, the stock of debt and current account deficit still increases, TL was overvalue ...
Exchange Rate Regime Choice in Historical Perspective
... transactions costs of exchanging different currencies into each other. By 1900, most nations had switched away from silver and bimetallic standards and adhered to the gold standard. Fiat money and floating was considered to be a radical departure from fiscal and monetary stability and was only to b ...
... transactions costs of exchanging different currencies into each other. By 1900, most nations had switched away from silver and bimetallic standards and adhered to the gold standard. Fiat money and floating was considered to be a radical departure from fiscal and monetary stability and was only to b ...
Economic Outlook - Ekonomski institut, Zagreb
... heavily influenced by bad conditions on the labor market and by low consumer sentiment. The latest lowering of labor tax burden, tax incentives to hire young workers, and monthly compensation for employers who employ a youth worker with no prior experience increasing from 1,600 to 2,400 kuna, are ex ...
... heavily influenced by bad conditions on the labor market and by low consumer sentiment. The latest lowering of labor tax burden, tax incentives to hire young workers, and monthly compensation for employers who employ a youth worker with no prior experience increasing from 1,600 to 2,400 kuna, are ex ...
PDF
... of the Thai baht, Korean won, and Indonesian rupiah lay systemic banking problems. Even developed countries like Finland, Norway and Sweden experienced contemporaneous currency crisis and a full-fledged domestic banking crisis in the late 1980s and early 1990s. Berg and Pattillo (1999) describe t ...
... of the Thai baht, Korean won, and Indonesian rupiah lay systemic banking problems. Even developed countries like Finland, Norway and Sweden experienced contemporaneous currency crisis and a full-fledged domestic banking crisis in the late 1980s and early 1990s. Berg and Pattillo (1999) describe t ...
LF2009.1
... a) The Ricardian model is discussed in chapter 2 in Feenstra/Taylor, the specific factors model in chapter 3 and Heckscher-Ohlin in chapter 4. Some points which should be mentioned are that in the Ricardo model, there is only one factor or production (labour) and comparative advantage is driven by p ...
... a) The Ricardian model is discussed in chapter 2 in Feenstra/Taylor, the specific factors model in chapter 3 and Heckscher-Ohlin in chapter 4. Some points which should be mentioned are that in the Ricardo model, there is only one factor or production (labour) and comparative advantage is driven by p ...
Short-Term International Capital Flows
... economy. Similarly, as the world's second largest economy after the United States, China is the world's fastest-growing major economy with growth rates averaging 10% over the past 30 years since the implementation of reform and opening up policy. China's high increasing economy is to change the char ...
... economy. Similarly, as the world's second largest economy after the United States, China is the world's fastest-growing major economy with growth rates averaging 10% over the past 30 years since the implementation of reform and opening up policy. China's high increasing economy is to change the char ...
Monetary and Macroprudential Policies in Saudi Arabia
... Key takeaways Short run issues There is limited evidence of an adverse impact on GDP from normalization of US monetary policy Monetary policy framework Saudi Arabia’s exchange rate peg has served it well Although liquidity management toolkit is being developed, monetary base is volatile The ...
... Key takeaways Short run issues There is limited evidence of an adverse impact on GDP from normalization of US monetary policy Monetary policy framework Saudi Arabia’s exchange rate peg has served it well Although liquidity management toolkit is being developed, monetary base is volatile The ...
NBER WORKING PAPER SERIES HISTORICAL PERSPECTIVE ON GLOBAL IMBALANCES Michael D. Bordo
... which has seen a disproportionate growth in the demand for its assets because it offers a higher real rate of return based on the economy’s long-run good performance. Moreover according to Bernanke (2005), the imbalances largely reflect a glut in global savings partially reflecting the aging of pop ...
... which has seen a disproportionate growth in the demand for its assets because it offers a higher real rate of return based on the economy’s long-run good performance. Moreover according to Bernanke (2005), the imbalances largely reflect a glut in global savings partially reflecting the aging of pop ...
Microsoft Word - WD No 379 Valladao Emergent Brazil
... Brazil is entering a vicious cycle: less investment, less growth, more public-backed credit, more consumer indebtedness (more than 50% of families have debts), more public deficits, more inflation, more government intervention, less trust in the future of the economy and… less investment. In spite o ...
... Brazil is entering a vicious cycle: less investment, less growth, more public-backed credit, more consumer indebtedness (more than 50% of families have debts), more public deficits, more inflation, more government intervention, less trust in the future of the economy and… less investment. In spite o ...
Lecture 1 (POWER POINT)
... Liberalization of Protectionist Legislation • The General Agreement on Tariffs and Trade (GATT) a multilateral agreement among member countries has reduced many barriers to trade. • The World Trade Organization has the power to enforce the rules of international trade. • Other agreements: NAFTA, AS ...
... Liberalization of Protectionist Legislation • The General Agreement on Tariffs and Trade (GATT) a multilateral agreement among member countries has reduced many barriers to trade. • The World Trade Organization has the power to enforce the rules of international trade. • Other agreements: NAFTA, AS ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL PERSPECTIVES
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
Bade_Parkin_Macro_Lecture_CH20
... currency, the greater is the quantity of that currency demanded and so the greater is the quantity of dollars supplied in the foreign exchange market. The expected profit depends on the exchange rate. Other things remaining the same, the higher the exchange rate, the larger is the expected profit fr ...
... currency, the greater is the quantity of that currency demanded and so the greater is the quantity of dollars supplied in the foreign exchange market. The expected profit depends on the exchange rate. Other things remaining the same, the higher the exchange rate, the larger is the expected profit fr ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... depended mainly on primary exports and is now rapidly moving into industrial exports. While it may still have a multiple protective tariff system and thus be more "closed" in the real sense than some optimum degree of free trade might dictate, it will rely quite heavily on the use of the formal exch ...
... depended mainly on primary exports and is now rapidly moving into industrial exports. While it may still have a multiple protective tariff system and thus be more "closed" in the real sense than some optimum degree of free trade might dictate, it will rely quite heavily on the use of the formal exch ...
Bulgarian context in teaching international economics
... • Bulgaria and the currency regime • Bulgaria and the euro area. • BoP specifics for Bulgaria. The story about high current account deficit • FDI and multinational companies in Bulgaria • Free trade and Bulgaria • The external debt of Bulgaria • Bulgaria and the IFIs • BG goods on the global stock e ...
... • Bulgaria and the currency regime • Bulgaria and the euro area. • BoP specifics for Bulgaria. The story about high current account deficit • FDI and multinational companies in Bulgaria • Free trade and Bulgaria • The external debt of Bulgaria • Bulgaria and the IFIs • BG goods on the global stock e ...
PDF
... locations, storage costs, quality difference, etc.) of these commodities. For instance, in the case of wheat in Chile, adjustments were made for domestic transport costs from the main port of entry for wheat to the mills, for customs duties and custom agent fees, for unloading costs and losses in tr ...
... locations, storage costs, quality difference, etc.) of these commodities. For instance, in the case of wheat in Chile, adjustments were made for domestic transport costs from the main port of entry for wheat to the mills, for customs duties and custom agent fees, for unloading costs and losses in tr ...
Currency hierarchy, liquidity preference and exchange rates: a
... to the trade-off returns/risks, like commodities, bonds, securities etc. Considering currencies as financial assets is not so evident for some branches of economic theory, but is more than obvious for financial market operators. The wealth stock dynamics and the logic used by financial market player ...
... to the trade-off returns/risks, like commodities, bonds, securities etc. Considering currencies as financial assets is not so evident for some branches of economic theory, but is more than obvious for financial market operators. The wealth stock dynamics and the logic used by financial market player ...