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E-zone - Miguel Goede
E-zone - Miguel Goede

... Real GDP ...
Snímek 1
Snímek 1

... determines (nominal) ExR in the long run: • Monetary disturbances affect only prices, not real ExR, so – Shift in relative money supply (relative to money supply in foreign country), e.g. permanent one time increase of MS → after adjustment, output and unemployment back to potential levels, but P, ...
PDF
PDF

... adjustment policies implemented throughout the region may have created an economic environment that attracts U.S. FDI in food and kindred products. In regard to the effect of nominal exchange rates on FDI, the depreciation of the local currency in relation to the dollar was shown to be a generally p ...
The Effects of Oil Revenues on the Dynamics of
The Effects of Oil Revenues on the Dynamics of

... economies. Unstructured approach to modeling based on statistical analysis of data does not allow receiving recommendations for changing conducted macroeconomic policy. Inflation expectations are not accounted, which play a crucial role in behavior of agents. It is hardly possible to build a reliabl ...
FOR APPROVAL - Robert Kollmann
FOR APPROVAL - Robert Kollmann

... Abstract Standard macro models fail to explain why real exchange rates are volatile and disconnected from macro aggregates. Recent research argues that models with persistent growth rate shocks and recursive preferences can solve that puzzle. I show that this result is highly sensitive to the struct ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL MOBILITY AND IMPERFECT INTEGRATION OF FINANCIAL
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL MOBILITY AND IMPERFECT INTEGRATION OF FINANCIAL

... They ran cross—section regressions of investment against national saving, found coefficients much closer to one than to zero, and interpreted the results as evidence that capital mobility is in fact far less than perfect. ...
The Cost-benefit Analysis on International Reserve Currency Status
The Cost-benefit Analysis on International Reserve Currency Status

... from USD 1.8 trillion at the turn of the century which has been increased by 5.4 times in the last fifteen years. The countries “producing” reserve currencies are different from the countries “consuming” reserve currencies. Most of the reserve currency in the world is held by emerging market and dev ...
Download attachment
Download attachment

... From the microeconomic level standpoint, the exchange rate is seen as influencing the value of domestic and multinational companies, and the research undertook in this area deals with the issue of domestic economies’ exposure to exchange rate risk. Fluctuations in exchange rates can significantly ha ...
Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models
Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models

... persistence. In fact, if the policy rule followed by the monetary authorities has too strong an interest rate smoothing component, even the multisector sticky-price model fails to generate meaningful real exchange rate persistence in response to monetary shocks. Our …nding that policy inertia hampe ...
the notification of the capital market supervisory board
the notification of the capital market supervisory board

... repealed and replaced by the following texts: “(2) a financial institution whose core businesses are already under supervision and are licensed subsequently to operate securities business. This does not include financial institutions licensed to undertake securities borrowing and lending business wh ...
Download paper (PDF)
Download paper (PDF)

... economies. One common strategy has been to model the EA economy using only EA aggregates. Examples include evidence based on VARs (Peersman and Smets 2003), more structural models (the ECB area‐wide model [AWM]; Fagan, Henry, and Mestre 2005), and optimization‐based macroeconomic models (Smets and W ...
Monetary Policy Strategies for Emerging Market Countries
Monetary Policy Strategies for Emerging Market Countries

... performance of Panama illustrates the key advantage of full dollarization: its ability to deliver low inflation. From 1960 to 2000, Panama's inflation rate has averaged 2.8% per year, which is significantly lower than in any other country in Latin America, and is even lower than the 4.6% average ove ...
Chapeter 10. - State Bank of Pakistan
Chapeter 10. - State Bank of Pakistan

discussion paper series - University of California, Berkeley
discussion paper series - University of California, Berkeley

... early 1990s, as a number of erstwhile relatively closed and now rapidly growing emerging economies entered into world markets. One important reason lying behind this resilience was the much greater share taken by intra-European exchanges (Table 1). Of the world’s three major trading areas, Europe is ...
Ignorance and Influence: U.S. Economists on Argentina`s
Ignorance and Influence: U.S. Economists on Argentina`s

NBER WORKING PAPER SERIES ASSET PRICES AND EXCHANGE RATES Anna Pavlova Roberto Rigobon
NBER WORKING PAPER SERIES ASSET PRICES AND EXCHANGE RATES Anna Pavlova Roberto Rigobon

... Bonds, whose interest rates are uncovered endogenously within the model, provide further opportunities for international borrowing and lending. A representative agent in each country consumes both goods, albeit with a preference bias toward the home good, and invests in the stock and bond markets. ...
Volkswagen Bank relies on Faxination for its 100,000 plus car
Volkswagen Bank relies on Faxination for its 100,000 plus car

... fax-over-IP has the added benefit of being the best choice for ...
Financial stress and economic activity in Germany
Financial stress and economic activity in Germany

... leads to widespread financial strains and financial instability, which may cause severe financial crises and recessions in general (Borio and Lowe (2002), Borio and Drehmann (2009), and Bloom (2009)). It is therefore a crucial challenge to monitor and to detect potential signs of financial stress fo ...
- World Bank eLibrary
- World Bank eLibrary

Introducing the Bank of Canada`s Projection Model for the Global
Introducing the Bank of Canada`s Projection Model for the Global

... economy to another through trade and exchange rate channels is vital when constructing the outlook for individual economies. Thus, in order to ensure the internal consistency of the Bank of Canada staff projection, we have developed a version of the Global Projection Model (GPM) jointly with staff a ...
Commodity prices and real and financial processes in the Euro area
Commodity prices and real and financial processes in the Euro area

... for the oil price (see e.g. Akram [1]). The conventional explanation is that commodity prices are quoted in US dollars, so when the dollar depreciates foreign currency commodity prices (i.e. converted into euros or pounds) are lower. Thus, the demand for commodities goes up, which results in an upwa ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... in promoting the so-called heavy and chemical industries (HCIs),’ with package assistance programs for these “strategic” industries. For these reasons, many-both inside and outside Korea-have questioned whether Korea’s success was possible because of, or in spite of, a very activist role for governm ...
Entry Dynamics and the Decline in Exchange-Rate Pass-Through
Entry Dynamics and the Decline in Exchange-Rate Pass-Through

... pass-through estimate for the 1980s would be roughly 50 percent for the United States, implying that, following a 10 percent depreciation of the dollar, a foreign exporter selling to the U.S. market would raise its price in the United States by 5 percent. Moreover, there is substantial evidence that ...
The Concepts, Consequences, and Determinants of Currency
The Concepts, Consequences, and Determinants of Currency

Paul Krugman
Paul Krugman

... current travails not because economic policies had not been reformed, but because they had. Around the world countries responded to the very real flaws in post-Depression policy regimes by moving back toward a regime with many of the virtues of pre-Depression free-market capitalism. However, in brin ...
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Currency intervention

Currency intervention, also known as foreign exchange market intervention, or currency manipulation, occurs when a government buys or sells foreign currency to push the exchange rate of its own currency away from equilibrium value or to prevent the exchange rate from moving toward its equilibrium value.Generally, central banks intervene in foreign exchange markets in order to achieve a variety of overall economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy and how they are reflected in currency manipulation depend on a number of factors, including the stage of a country’s development, the degree of financial market development and integration, and the country’s overall vulnerability to shocks.
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