foreign exchange and money markets in the context
... way, credibility of the exchange rate target zone where the projected future foreign exchange rate will be within the intervention target zone, or the money market interest rates for the national currency within the interest rate corridor, can be tested. When the foreign exchange rate increases, th ...
... way, credibility of the exchange rate target zone where the projected future foreign exchange rate will be within the intervention target zone, or the money market interest rates for the national currency within the interest rate corridor, can be tested. When the foreign exchange rate increases, th ...
International Coordination - Federal Reserve Bank of San Francisco
... For the purposes of this paper, coordination is defined in the conventional sense of the Nash cooperative or bargaining solution from game theory, as in the famous “prisoners’ dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instrume ...
... For the purposes of this paper, coordination is defined in the conventional sense of the Nash cooperative or bargaining solution from game theory, as in the famous “prisoners’ dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instrume ...
Figure 1-2 - 浙江工商大学金融学院
... – Some countries run large trade surpluses. For example, in 1998 both China and South Korea ran trade surpluses of about $40 billion each. – Is it good to run a trade surplus and bad to run a ...
... – Some countries run large trade surpluses. For example, in 1998 both China and South Korea ran trade surpluses of about $40 billion each. – Is it good to run a trade surplus and bad to run a ...
HOW TO SAVE THE EURO AND THE EUROPEAN UNION?
... improvement of pension system . The concept of complex associated solutions which solve economic problems, has been worked out in details by the authors, it was approved and may be prepared for interested states according to their initial data. The authors express confidence that all these measures ...
... improvement of pension system . The concept of complex associated solutions which solve economic problems, has been worked out in details by the authors, it was approved and may be prepared for interested states according to their initial data. The authors express confidence that all these measures ...
The Double Play: Simultaneous Speculative Attacks on Currency
... Furthermore, the literature had emphasized intervention in the spot foreign exchange market but more recently, Lall (1997) considered intervention by monetary authorities in the forward foreign exchange market and studied the impact of such an intervention on the domestic interest rate. He modeled ...
... Furthermore, the literature had emphasized intervention in the spot foreign exchange market but more recently, Lall (1997) considered intervention by monetary authorities in the forward foreign exchange market and studied the impact of such an intervention on the domestic interest rate. He modeled ...
East European capitalism – What went wrong? Dorothee Bohle
... Governments in Hungary and Latvia used the grace period offered by a more permissive international environment to accommodate the social pressures that had built up. In Hungary, political competition led to an acceleration of public spending on housing, welfare programs and public sector wages target ...
... Governments in Hungary and Latvia used the grace period offered by a more permissive international environment to accommodate the social pressures that had built up. In Hungary, political competition led to an acceleration of public spending on housing, welfare programs and public sector wages target ...
The monetary policies of two countries having trade relations are not
... where Et-1 is an operator of expectations being conditional upon information available in period t 1. In the case of flexible rates, the inflation-output trade-off differs from that in a closed economy since monetary policy affects the output level additionally via the exchange rate. Under flexibl ...
... where Et-1 is an operator of expectations being conditional upon information available in period t 1. In the case of flexible rates, the inflation-output trade-off differs from that in a closed economy since monetary policy affects the output level additionally via the exchange rate. Under flexibl ...
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... cost plus a normal return (i.e., the “constructed-value” method). The focus of this paper is on how macroeconomic factors in general, and fluctuations in real exchange rates in particular, can affect the determination of each of these criteria. At a theoretical level it is not obvious how real exchang ...
... cost plus a normal return (i.e., the “constructed-value” method). The focus of this paper is on how macroeconomic factors in general, and fluctuations in real exchange rates in particular, can affect the determination of each of these criteria. At a theoretical level it is not obvious how real exchang ...
Since Robert Mugabe took power in 1980, Zimbabwe`s
... To avoid speculative bubbles caused by these negative real rates, Reserve Bank of Zimbabwe governor Gideon Gono increased the interest rate to curb inflation, rather than letting the rate be market determined. The lending rate was set at 500 percent in October 20067; some reports state that it may h ...
... To avoid speculative bubbles caused by these negative real rates, Reserve Bank of Zimbabwe governor Gideon Gono increased the interest rate to curb inflation, rather than letting the rate be market determined. The lending rate was set at 500 percent in October 20067; some reports state that it may h ...
Emergent Brazil and the Curse of the `Hen`s Flight`
... 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 ...
Why may large economies suffer more at the zero lower bound?
... channel which potentially worsens the situation of SOEs at the ZLB. SOEs are prone to exchange rate appreciation that follows their inability to lower interest rates after a shock (Bäurle and Kaufmann, 2014; Bodenstein et al., 2009; Cook and Devereux, 2014). I show that there is a second channel th ...
... channel which potentially worsens the situation of SOEs at the ZLB. SOEs are prone to exchange rate appreciation that follows their inability to lower interest rates after a shock (Bäurle and Kaufmann, 2014; Bodenstein et al., 2009; Cook and Devereux, 2014). I show that there is a second channel th ...
Future of Manufacturing SMEs - National Graduate Institute For
... Compared with DPJ’s total impotence, Abe is doing much better. He has brightened Japan’s short-term psychology— but that is not enough for long-term growth. A policy mix of fiscal, monetary and growth policy is nothing new; but Abe’s policy presentation is innovative. Growth policy is primary, and f ...
... Compared with DPJ’s total impotence, Abe is doing much better. He has brightened Japan’s short-term psychology— but that is not enough for long-term growth. A policy mix of fiscal, monetary and growth policy is nothing new; but Abe’s policy presentation is innovative. Growth policy is primary, and f ...
Globalization and China`s Economic and Financial Development
... An important determinant of foreign trade and foreign investment is the exchange rate. A low value of Chinese RMB makes Chinese exports cheaper and investment in China more attractive if the investment is to produce for export. Many countries in the world including those in the European Union, Japan ...
... An important determinant of foreign trade and foreign investment is the exchange rate. A low value of Chinese RMB makes Chinese exports cheaper and investment in China more attractive if the investment is to produce for export. Many countries in the world including those in the European Union, Japan ...
The Hysteresis of Currency Substitution: Currency Risk vs. Network
... face more trade frictions. Furthermore, they have less access to banks and other financial institutions where they can convert local currency into foreign currency at a low cost and, thus, reduce their currency risk exposure. Therefore, we can expand Hypothesis 2 as follows: The dollar will be prefe ...
... face more trade frictions. Furthermore, they have less access to banks and other financial institutions where they can convert local currency into foreign currency at a low cost and, thus, reduce their currency risk exposure. Therefore, we can expand Hypothesis 2 as follows: The dollar will be prefe ...
Globalization and China s Economic and Financial Development
... An important determinant of foreign trade and foreign investment is the exchange rate. A low value of Chinese RMB makes Chinese exports cheaper and investment in China more attractive if the investment is to produce for export. Many countries in the world including those in the European Union, Japan ...
... An important determinant of foreign trade and foreign investment is the exchange rate. A low value of Chinese RMB makes Chinese exports cheaper and investment in China more attractive if the investment is to produce for export. Many countries in the world including those in the European Union, Japan ...
The Asian Economic Crisis: The Way Ahead For
... economics have long recognized that short-term capital flows are extremely large in relation to trade flows and foreign exchange reserves of countries and that, in the short-run, exchange rates are determined more by capital flows than by the trade account. The extreme volatility is also well known. ...
... economics have long recognized that short-term capital flows are extremely large in relation to trade flows and foreign exchange reserves of countries and that, in the short-run, exchange rates are determined more by capital flows than by the trade account. The extreme volatility is also well known. ...
Balance of Payment
... It measures flow of goods, services and capital taking place over a period of time (usually one year). It is divided into 3 categories: Current Account: The value of visible and invisible trade accounts a. Goods – Visible Trade b. Services – Invisible Trade Capital Account: Short-term or long-term i ...
... It measures flow of goods, services and capital taking place over a period of time (usually one year). It is divided into 3 categories: Current Account: The value of visible and invisible trade accounts a. Goods – Visible Trade b. Services – Invisible Trade Capital Account: Short-term or long-term i ...
How to Boost Growth as the Oil Price Falls: transformation and reform of the Norwegian economy
... reorganised the railway sector to achieve a more market-oriented and efficient governance structure, and established a new road development company in order to develop our big highway projects more efficiently and at a lower cost. I believe in a free and independent business sector without special t ...
... reorganised the railway sector to achieve a more market-oriented and efficient governance structure, and established a new road development company in order to develop our big highway projects more efficiently and at a lower cost. I believe in a free and independent business sector without special t ...
How to boost growth as the oil price falls – Transformation and
... reorganised the railway sector to achieve a more market-oriented and efficient governance structure, and established a new road development company in order to develop our big highway projects more efficiently and at a lower cost. I believe in a free and independent business sector without special t ...
... reorganised the railway sector to achieve a more market-oriented and efficient governance structure, and established a new road development company in order to develop our big highway projects more efficiently and at a lower cost. I believe in a free and independent business sector without special t ...
To view this press release as a file
... increasing, but the positive momentum in the financial markets continues. In the US, it appears that the labor market is nearing full employment. In January, a further 225,000 jobs were added, and the unemployment rate stabilized at a low level of 4.8 percent. With that, the annual growth rate of av ...
... increasing, but the positive momentum in the financial markets continues. In the US, it appears that the labor market is nearing full employment. In January, a further 225,000 jobs were added, and the unemployment rate stabilized at a low level of 4.8 percent. With that, the annual growth rate of av ...
The Adjustment Mechanism: Theory and Problems Rudiger Dornbusch*
... The more mortal the individuals, the larger the trade deficits implied by current government spending with deferred taxation. Conversely, with full current taxation, the trade deficit is less since it implies a larger reduction in lifetime income. It is immediately apparent that the story can be fur ...
... The more mortal the individuals, the larger the trade deficits implied by current government spending with deferred taxation. Conversely, with full current taxation, the trade deficit is less since it implies a larger reduction in lifetime income. It is immediately apparent that the story can be fur ...
Chapter 21 - Pearson Canada
... 2. Anchors expectations 3. Automatic rule, avoids time-consistency 4. Easy to understand: “sound currency” as rallying cry 5. Helps economic integration 6. Successful in reducing France, UK, Mexico © 2005 Pearson Education Canada Inc. ...
... 2. Anchors expectations 3. Automatic rule, avoids time-consistency 4. Easy to understand: “sound currency” as rallying cry 5. Helps economic integration 6. Successful in reducing France, UK, Mexico © 2005 Pearson Education Canada Inc. ...