Why Does Foreign Direct Investment Go Where It Goes?: New
... We organize recent empirical literature on the factors that make FDI go where they do around key factors as shown below, though in many cases results revolve around multiple factors. Foreign Aid There are a few studies which examine the relation between foreign aid and FDI by using cross-country pan ...
... We organize recent empirical literature on the factors that make FDI go where they do around key factors as shown below, though in many cases results revolve around multiple factors. Foreign Aid There are a few studies which examine the relation between foreign aid and FDI by using cross-country pan ...
Real-Time Forecasting for Monetary Policy Analysis
... revisions, the Executive Board takes ownership of the forecasts and these are published in a Monetary Policy Report or Monetary Policy Update on the day after the monetary policy meeting.6 The forecasts are supported by a large number of short-term forecasting models and a smaller suite of empirical ...
... revisions, the Executive Board takes ownership of the forecasts and these are published in a Monetary Policy Report or Monetary Policy Update on the day after the monetary policy meeting.6 The forecasts are supported by a large number of short-term forecasting models and a smaller suite of empirical ...
How volatile are East Asian stocks during high volatility periods?*
... normal distributions and are characterized by fat tails. Figure 1 shows the graphs of the stock price index and stock return for each of the seven countries. Table 2 presents the estimation results where two volatility states, a low and a high state, are assumed. Figure 2 shows the graph of the smo ...
... normal distributions and are characterized by fat tails. Figure 1 shows the graphs of the stock price index and stock return for each of the seven countries. Table 2 presents the estimation results where two volatility states, a low and a high state, are assumed. Figure 2 shows the graph of the smo ...
Thirty Years of Current Account Imbalances, Current Account
... be known as a “sudden stop”—we are very likely to observe a major current account reversal. The magnitude of the current account adjustment will be particularly large during the transition from the “old” to the “new” foreign (net) demand for the country’s assets. Although portfolio-based models of t ...
... be known as a “sudden stop”—we are very likely to observe a major current account reversal. The magnitude of the current account adjustment will be particularly large during the transition from the “old” to the “new” foreign (net) demand for the country’s assets. Although portfolio-based models of t ...
DP2009/19 Whatever next? Export market choices of New Zealand firms
... (determining the destination-specific popularity of each of the firm’s potential product lines). They show that a fall in trade costs (including tariffs) will lead firms to concentrate their efforts on a smaller number of core products. However, while the model generates empirically supportable pre ...
... (determining the destination-specific popularity of each of the firm’s potential product lines). They show that a fall in trade costs (including tariffs) will lead firms to concentrate their efforts on a smaller number of core products. However, while the model generates empirically supportable pre ...
Modelling intra- and extra-area trade substitution and exchange rate
... euro area, particularly the exchange rate pass-through (ERPT) and substitution effects between intra- and extra-area trade. Using the new estimated trade equations in the trade block of the ECB’s area wide model (AWM), simulation analysis provides further insight, where second round effects are then ...
... euro area, particularly the exchange rate pass-through (ERPT) and substitution effects between intra- and extra-area trade. Using the new estimated trade equations in the trade block of the ECB’s area wide model (AWM), simulation analysis provides further insight, where second round effects are then ...
The Behavior of US Interest Rate Swap Spreads in Global Financial
... risk exposure associated with the higher future floating payments. A lower fixed swap rate will compensate for this increased risk. Swap spreads are thus expected to be negatively related to the slope of the term structure. On the other hand, expected default premium should be higher at the time of ...
... risk exposure associated with the higher future floating payments. A lower fixed swap rate will compensate for this increased risk. Swap spreads are thus expected to be negatively related to the slope of the term structure. On the other hand, expected default premium should be higher at the time of ...
A Model of Excess Volatility in Large Markets
... episodes of excess volatility, such as bubbles and crises, are observed even in markets with a very large number of traders. Intuitively, one might think that excess volatility should be less likely in large markets. For example, in large markets idiosyncratic shocks cancel out and each trader’s in‡ ...
... episodes of excess volatility, such as bubbles and crises, are observed even in markets with a very large number of traders. Intuitively, one might think that excess volatility should be less likely in large markets. For example, in large markets idiosyncratic shocks cancel out and each trader’s in‡ ...
Policy Reform, Shadow Prices and Market Prices
... influence proposals for reform. In so doing we attempt to provide help in identifying the empirical questions that should be raised and the judgements that need to be made before deciding on a particular line of policy. We shall begin the analysis (in section 2) by defining shadow prices. We shall a ...
... influence proposals for reform. In so doing we attempt to provide help in identifying the empirical questions that should be raised and the judgements that need to be made before deciding on a particular line of policy. We shall begin the analysis (in section 2) by defining shadow prices. We shall a ...
Foreign Aid, Government Policies and Economic Growth
... bank accommodates the real appreciation with a rise in public expenditures during a period of inflation. The real appreciation results in an increase of net import demand, whereupon the central bank must defend the peg by selling foreign exchange (Buffie et al., 2004). Countries can choose to spend ...
... bank accommodates the real appreciation with a rise in public expenditures during a period of inflation. The real appreciation results in an increase of net import demand, whereupon the central bank must defend the peg by selling foreign exchange (Buffie et al., 2004). Countries can choose to spend ...
NBER WORKING PAPER SERIES INFLATION TARGETING: LESSONS Frederic S. Mishkin
... country no longer exercises control over its own monetary policy. Not on'y is the country unable to use monetary policy to respond to domestic shocks, but it is also vulnerable to shocks emanating from the country to which its currency is pegged. Furthermore, in the current environment of open, glob ...
... country no longer exercises control over its own monetary policy. Not on'y is the country unable to use monetary policy to respond to domestic shocks, but it is also vulnerable to shocks emanating from the country to which its currency is pegged. Furthermore, in the current environment of open, glob ...
Stock Return and the Volatility Persistence in the Nigerian Capital
... changes in market volatility would merely reflect changes in the local or global economic environment. Volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of ...
... changes in market volatility would merely reflect changes in the local or global economic environment. Volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of ...
NBER WORKING PAPER SERIES IMBALANCES Sebastian Edwards
... The data are taken from the World Bank data set and cover all countries – advanced, transition and emerging – for which there is information.8 In order to organize the discussion I have divided the data into six groups: (1) Africa; (2) Asia; (3) Eastern Europe; (4) Industrialized (or advanced) natio ...
... The data are taken from the World Bank data set and cover all countries – advanced, transition and emerging – for which there is information.8 In order to organize the discussion I have divided the data into six groups: (1) Africa; (2) Asia; (3) Eastern Europe; (4) Industrialized (or advanced) natio ...
Global Export Forecast
... additional 17% hit in the past 12 months. As opposed to seeking an unfair advantage, China’s currency move seemed overdue. It should help China to cash in on global recovery, if only partially. So growth is returning, bit by bit. If so, why the turbulence? Isn’t market mayhem a sign that things are ...
... additional 17% hit in the past 12 months. As opposed to seeking an unfair advantage, China’s currency move seemed overdue. It should help China to cash in on global recovery, if only partially. So growth is returning, bit by bit. If so, why the turbulence? Isn’t market mayhem a sign that things are ...
Last update: 09 October 2014 Swiss Chartset Chief Investment Office WM
... the risk to which you are exposed may be difficult to quantify. UBS relies on information barriers to control the flow of information contained in one or more areas within UBS, into other areas, units, divisions or affiliates of UBS. Futures and options trading is considered risky. Past performance ...
... the risk to which you are exposed may be difficult to quantify. UBS relies on information barriers to control the flow of information contained in one or more areas within UBS, into other areas, units, divisions or affiliates of UBS. Futures and options trading is considered risky. Past performance ...
Real-Time Forecasting for Monetary Policy Analysis
... the forecasts eventually published by the central banks typically include also judgemental adjustments. Some of this judgement is motivated by a need to take into account extra-model information. Other judgement is motivated by the aim to reach the inflation target in a few years’ time, which may re ...
... the forecasts eventually published by the central banks typically include also judgemental adjustments. Some of this judgement is motivated by a need to take into account extra-model information. Other judgement is motivated by the aim to reach the inflation target in a few years’ time, which may re ...
Financial Liberalization and Emerging Stock Market Volatility
... SPAIN; e-mail: [email protected]. ...
... SPAIN; e-mail: [email protected]. ...
the political economy of protection
... of protection across countries and over time. The review also identifies authors who have paid attention to economic conditions, interest-group pressures (or distributive conflicts), domestic institutions, economic ideas, and ideologies. This categorization of the determinants of trade policies is now ...
... of protection across countries and over time. The review also identifies authors who have paid attention to economic conditions, interest-group pressures (or distributive conflicts), domestic institutions, economic ideas, and ideologies. This categorization of the determinants of trade policies is now ...
Heat Waves, Meteor Showers, and Trading Volume: An Analysis of
... The U.S. Treasury market offers an interesting, alternative testing ground for these hypotheses on volatility spillovers. Since the Treasury market operates around-the-clock from different trading centers, the methodology of Engle et al. (1990) can be applied with only minor modifications. However, ...
... The U.S. Treasury market offers an interesting, alternative testing ground for these hypotheses on volatility spillovers. Since the Treasury market operates around-the-clock from different trading centers, the methodology of Engle et al. (1990) can be applied with only minor modifications. However, ...
Chapter 6.
... (e) reserve assets. 6.2 The functional categories are built on the classification of financial assets and liabilities discussed in Chapter 5, but with an additional dimension that takes into account some aspects of the relationship between the parties and the motivation for investment. The functiona ...
... (e) reserve assets. 6.2 The functional categories are built on the classification of financial assets and liabilities discussed in Chapter 5, but with an additional dimension that takes into account some aspects of the relationship between the parties and the motivation for investment. The functiona ...
International Financial Remoteness and Macroeconomic Volatility
... 1. Introduction and Motivation This paper introduces a new stylized fact; countries that are remote from international financial activity are systematically more volatile. While most of this paper is concerned with establishing the empirical finding, we begin by motivating our study. The effect of ...
... 1. Introduction and Motivation This paper introduces a new stylized fact; countries that are remote from international financial activity are systematically more volatile. While most of this paper is concerned with establishing the empirical finding, we begin by motivating our study. The effect of ...
Are twin currency and debt crises special?
... example, Frankel and Rose (1996) as one of the first approaches to study macroeconomic variables as predictors of currency crises yield only a low explanatory and predictive potential: While the numbers of false alarms remains below 1%, they only predict 5 out of 69 currency crises. One reason for t ...
... example, Frankel and Rose (1996) as one of the first approaches to study macroeconomic variables as predictors of currency crises yield only a low explanatory and predictive potential: While the numbers of false alarms remains below 1%, they only predict 5 out of 69 currency crises. One reason for t ...
IMF Staff Papers, Vol,48 Special Issue, 2001
... Central-Eastern and Southeastern Europe, and 1995–99 for the others).5 Figure 2 shows stark differences in both the levels and the composition of capital flows to the region. The Baltic countries received by far the largest inflows as a percentage of GDP (and also in per capita terms) over the perio ...
... Central-Eastern and Southeastern Europe, and 1995–99 for the others).5 Figure 2 shows stark differences in both the levels and the composition of capital flows to the region. The Baltic countries received by far the largest inflows as a percentage of GDP (and also in per capita terms) over the perio ...
- Department of Economics
... already been threatened. Although the fiscal consequences for developing countries were less severe, substantial fiscal deteriorations did occur in a number of cases. These events have placed fiscal sustainability back on the policy agenda. This paper discusses the South African fiscal experience si ...
... already been threatened. Although the fiscal consequences for developing countries were less severe, substantial fiscal deteriorations did occur in a number of cases. These events have placed fiscal sustainability back on the policy agenda. This paper discusses the South African fiscal experience si ...