December 2009 - Harvard Kennedy School
... one should use a numeraire that is similar to the yardstick used by the authorities in measuring what constitutes a large deviation. The authorities are unlikely to use the Swiss franc or Canadian dollar in thinking about the size of deviations from their reference point. They are more likely to us ...
... one should use a numeraire that is similar to the yardstick used by the authorities in measuring what constitutes a large deviation. The authorities are unlikely to use the Swiss franc or Canadian dollar in thinking about the size of deviations from their reference point. They are more likely to us ...
the choice of exchange rate regime
... The ability to adjust, at a stroke, the domestic price level in terms of international currencies has at times been regarded as a valuable instrument of policy - for example, with a view to influencing the current account of the balance of payments - but nowadays the consensus is that it may be diff ...
... The ability to adjust, at a stroke, the domestic price level in terms of international currencies has at times been regarded as a valuable instrument of policy - for example, with a view to influencing the current account of the balance of payments - but nowadays the consensus is that it may be diff ...
Currency Crisis in Thailand: The Leading Indicators
... exchange rate in 1996 to stimulate the economy, but the high foreign debt many of the domestic companies held steered the government away from such actions. They thought it would be much more costly to repay the foreign currency loans with a lower baht (Alexander and Guthrie). Most of Thailand’s deb ...
... exchange rate in 1996 to stimulate the economy, but the high foreign debt many of the domestic companies held steered the government away from such actions. They thought it would be much more costly to repay the foreign currency loans with a lower baht (Alexander and Guthrie). Most of Thailand’s deb ...
On Some Unresolved Problems Of Monetary
... international aspect very clearly, wanted to get at Bretton Woods, but all he got was a currency board (for it is little more than a currency board, being so tied up with rules and regulations) – the IMF. That, we are finding –and Mill could have told us, one hundred twenty years ago, that it is wha ...
... international aspect very clearly, wanted to get at Bretton Woods, but all he got was a currency board (for it is little more than a currency board, being so tied up with rules and regulations) – the IMF. That, we are finding –and Mill could have told us, one hundred twenty years ago, that it is wha ...
投影片 1 - Hong Kong Shue Yan University
... However, RMB still have many problems • can’t freely exchange with other currencies • since the economic development in China is not stable • If the bubbles explode again, it can certainly affect HK’s exchange system • so suitable period to have changes for HK exchange rates system should be consi ...
... However, RMB still have many problems • can’t freely exchange with other currencies • since the economic development in China is not stable • If the bubbles explode again, it can certainly affect HK’s exchange system • so suitable period to have changes for HK exchange rates system should be consi ...
FRBSF L CONOMIC
... insulation from foreign monetary policies and give the People’s Bank of China scope to conduct independent monetary policy. However, investors find ways to evade China’s capital controls and are pouring in money to take advantage of higher interest rates, a booming stock market, and an apparent gamb ...
... insulation from foreign monetary policies and give the People’s Bank of China scope to conduct independent monetary policy. However, investors find ways to evade China’s capital controls and are pouring in money to take advantage of higher interest rates, a booming stock market, and an apparent gamb ...
China Unexpectedly Reports Trade Surplus
... Asian stocks fell amid renewed concern about growth in China, fiscal woes in Europe and Federal Reserve Chairman Ben S. Bernanke’s comment that the U.S. economy was far from a full recovery. Premier Wen Jiabao may need to balance gains in external demand with a slowdown in domestic consumption in de ...
... Asian stocks fell amid renewed concern about growth in China, fiscal woes in Europe and Federal Reserve Chairman Ben S. Bernanke’s comment that the U.S. economy was far from a full recovery. Premier Wen Jiabao may need to balance gains in external demand with a slowdown in domestic consumption in de ...
Monetary Model
... some of the burden of fixing the exchange rate. But in practice, fiscal policy is not a useful tool for exchange rate management, because it takes too long to be implemented. •Financial policies can help also through sterilized interventions: to keep the exchange rate fix, the government may have to ...
... some of the burden of fixing the exchange rate. But in practice, fiscal policy is not a useful tool for exchange rate management, because it takes too long to be implemented. •Financial policies can help also through sterilized interventions: to keep the exchange rate fix, the government may have to ...
Principles of Microeconomics
... ◦ The Exchange Rate Method: Each country’s currency is converted into a common currency (usually US$) and divided by the country’s population. Ex: India’s GDP per capita in 2009 was about 57,000 rupees. Converted into USD is about US$1,160 Problem: 1 USD goes much further in India than in the US ...
... ◦ The Exchange Rate Method: Each country’s currency is converted into a common currency (usually US$) and divided by the country’s population. Ex: India’s GDP per capita in 2009 was about 57,000 rupees. Converted into USD is about US$1,160 Problem: 1 USD goes much further in India than in the US ...
Taming your dollar exposure: What Canadian
... 1. Short-term interest rates. Investors seek the best returns on their money, and so currencies with higher short-term interest rates tend to be stronger due to greater demand. This can be seen, for instance, in periods when U.S. and Canadian short-term interest rates (as set by the central banks) d ...
... 1. Short-term interest rates. Investors seek the best returns on their money, and so currencies with higher short-term interest rates tend to be stronger due to greater demand. This can be seen, for instance, in periods when U.S. and Canadian short-term interest rates (as set by the central banks) d ...
Get Paid to Borrow – Monetary Madness?
... expecting their bond holders to mail in monthly checks; rather, the buyers pay a premium for a bond that pays no interest, recognizing that the bond will mature at a price below what the buyer paid. That way, the loss (or negative interest rate) is built in. If you borrow from the Japanese governmen ...
... expecting their bond holders to mail in monthly checks; rather, the buyers pay a premium for a bond that pays no interest, recognizing that the bond will mature at a price below what the buyer paid. That way, the loss (or negative interest rate) is built in. If you borrow from the Japanese governmen ...
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... pressures lead to high inflation in the sheltered services sector. Therefore, relatively high inflation, i.e. rates above those in the euro area should not affect competitiveness (Balassa-Samuelson (BS) effect).3 ...
... pressures lead to high inflation in the sheltered services sector. Therefore, relatively high inflation, i.e. rates above those in the euro area should not affect competitiveness (Balassa-Samuelson (BS) effect).3 ...
EXCHANGE RATE AS AN INSTRUMENT OF ECONOMIC POLICY
... influence on foreign trade. The hypothesis of an economic growth based on exports sees the export expansion as one of the most important determinants of the growth which is based on technological acceleration. One of the ways in which the foreign trade drives growth is by technological progress, whi ...
... influence on foreign trade. The hypothesis of an economic growth based on exports sees the export expansion as one of the most important determinants of the growth which is based on technological acceleration. One of the ways in which the foreign trade drives growth is by technological progress, whi ...
Minutes of the Monetary Policy Committee meeting, February 2017
... According to the forecast published in Monetary Bulletin on 8 February 2017, the inflation outlook has improved since the Bank’s November forecast. Domestic inflationary pressures are considerable, however, and stronger than was forecast in November. Pulling in the other direction are low global in ...
... According to the forecast published in Monetary Bulletin on 8 February 2017, the inflation outlook has improved since the Bank’s November forecast. Domestic inflationary pressures are considerable, however, and stronger than was forecast in November. Pulling in the other direction are low global in ...
Monetary Policy under Alternative Exchange-Rate Regimes" Simulations with a Multi-Country Model
... utilization and unemployment.3 Each country model has a monetary sector which determines short- and long-term interest rates together with monetary aggregates. The most important instruments of monetary and fiscal policy -reserve requirements, the discount rate, central bank holdings of domestic and ...
... utilization and unemployment.3 Each country model has a monetary sector which determines short- and long-term interest rates together with monetary aggregates. The most important instruments of monetary and fiscal policy -reserve requirements, the discount rate, central bank holdings of domestic and ...
Bringing it all together: where does this leave John McDermott
... exchange rate. New Zealand has made a similar choice. If New Zealand was to move in a different direction and pursue greater exchange rate control, that would imply less use of monetary policy for stabilising domestic conditions such as inflation and output, or a lessopen capital account and probabl ...
... exchange rate. New Zealand has made a similar choice. If New Zealand was to move in a different direction and pursue greater exchange rate control, that would imply less use of monetary policy for stabilising domestic conditions such as inflation and output, or a lessopen capital account and probabl ...
Money Market - Tata Mutual Fund
... • CAC also allows the people and companies not only to convert one currency to another, but also free crossborder movement of those currencies, without the interventions of the law of the country concerned. ...
... • CAC also allows the people and companies not only to convert one currency to another, but also free crossborder movement of those currencies, without the interventions of the law of the country concerned. ...
MF.pdf
... • Mundell-Fleming Model based on idea that capital flows must offset trade deficits for stable international reserves. 1. Speed of capital flows depends on perceptions as captured by F. 2. The same differences in interest rate between two countries can cause very different movement in international cap ...
... • Mundell-Fleming Model based on idea that capital flows must offset trade deficits for stable international reserves. 1. Speed of capital flows depends on perceptions as captured by F. 2. The same differences in interest rate between two countries can cause very different movement in international cap ...
Chapter 14: Exchange Rates and Purchasing Power Parity.
... The PPP is useful to get a sense of the long-term tendency towards which nominal exchange rates move absent other changes ...
... The PPP is useful to get a sense of the long-term tendency towards which nominal exchange rates move absent other changes ...
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... • Gross domestic product: High growth of national income represents the potentiality of sales promotion that results in high stock market index • Employment rate: More employment indicates more effective demands. Unemployment of not only the workers but also other inputs particularly capital indicat ...
... • Gross domestic product: High growth of national income represents the potentiality of sales promotion that results in high stock market index • Employment rate: More employment indicates more effective demands. Unemployment of not only the workers but also other inputs particularly capital indicat ...
3460Chap12
... A firm may wish to diversify the location of their production sites to mitigate the effect of exchange rate movements. i.e. Honda built North American factories in response to a strong yen, but later found itself importing more cars from Japan due to a weak yen. May prevent economies of scale and ...
... A firm may wish to diversify the location of their production sites to mitigate the effect of exchange rate movements. i.e. Honda built North American factories in response to a strong yen, but later found itself importing more cars from Japan due to a weak yen. May prevent economies of scale and ...
5.2-Risk-or-Certainty3.4 MB
... The pressure group, War on Want, doubted this. Its spokesperson, Paul Collins, said ‘It is clearly suspect if it costs less than £10. Time and again, Asda’s goods have been found to be made using cheap labour’. The year before, a War on Want report on Bangladeshi factories that made George clothing ...
... The pressure group, War on Want, doubted this. Its spokesperson, Paul Collins, said ‘It is clearly suspect if it costs less than £10. Time and again, Asda’s goods have been found to be made using cheap labour’. The year before, a War on Want report on Bangladeshi factories that made George clothing ...
chapter 16 exchange-rate systems
... Reserve decreases the money supply of the United States. Under a floating exchange rate system, the dollar would: a. Appreciate in value relative to other currencies b. Depreciate in value relative to other currencies c. Be officially devalued by the government d. Be officially revalued by the gover ...
... Reserve decreases the money supply of the United States. Under a floating exchange rate system, the dollar would: a. Appreciate in value relative to other currencies b. Depreciate in value relative to other currencies c. Be officially devalued by the government d. Be officially revalued by the gover ...