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Ch22 - OCCC.edu
Ch22 - OCCC.edu

... b. taxpayers – if inflation occurs they may see a rise in investment price and have to pay taxes even though this is not really an increase in value. c. currency holders – those who decide to hold $ and not invest d. it can artificially alter how firms and HH spend money due to uncertainty. e. gene ...
Brazil`s Derivatives Markets
Brazil`s Derivatives Markets

... of how the presence of derivatives markets affect the stability and efficiency of a large, open developing economy like Brazil. Of special interest will be the question of whether, and if so to what extent, the presence of derivatives markets result in pro-cyclical pressures on key variables such as ...
PDF
PDF

... which seems segmented by both product form and origin (Norman-López and Asche, 2008; Norman-López and Bjørndal, 2009)3. While it may be that the market for tilapia is different, it can also be that the choices of species being studied is somewhat biased. It is clear that salmon, whitefish, shrimp an ...
NBER WORKING PAPER SERIES OF CHINA'S TRADE RELATED POLICIES
NBER WORKING PAPER SERIES OF CHINA'S TRADE RELATED POLICIES

... neo-classical competitive trade models to analyze the welfare and trade impacts of trade related policy change can be misleading. In particular, both the exchange rate regime and output and pricing policies of state owned enterprises (SOE’s) will have effects on trade and welfare which differ from a ...
Exchange Rate Regime: Does it Matter for Inflation?
Exchange Rate Regime: Does it Matter for Inflation?

... arguing that fixed (or pegged) exchange rate regime, through powerful constraints it imposes on domestic policy actions, leads to a discipline and credibility effects and, therefore, lower inflation. Flexible exchange rate regime, on the other hand, affords freedom of actions and monetary growth und ...
How Do Changes in the Money Supply Affect Aggregate Demand?
How Do Changes in the Money Supply Affect Aggregate Demand?

Achieving Price Stability in Nigeria:
Achieving Price Stability in Nigeria:

... developing economies where the impact is more visible and spiral. The effect of inflation on import dependent nation could be more devastating than a similar scenario in other developed economies Price stability in the economy regardless of its directional movements can cause either capital flights ...
CON/2016/49 - ECB
CON/2016/49 - ECB

... currencies’ and ‘virtual currencies’, one of which is the volatility associated with virtual currencies, which is typically higher than with currencies issued by central banks or whose issue is otherwise authorised by central banks, as this volatility does not always appear to be related to economic ...
EditedxThesis
EditedxThesis

... is complete government intervention in the foreign exchange market. The exchange rate is fixed at a given equilibrium level; and if the market forces of demand and supply tend to upset this equilibrium, the central bank would intervene and see that the fixed exchange rate is maintained (IBID). This ...
Brazil in the 1990s: an economy in transition
Brazil in the 1990s: an economy in transition

... would, simply by bringing forward their consumption. If they can obtain finance (in the belief that they will have higher permanent incomes) through an open capital account, present consumption will increase (Conley and Maloney, 1995). The current account imbalance resulting from such actions can le ...
Brazil in the 1990s: an economy in transition
Brazil in the 1990s: an economy in transition

... would, simply by bringing forward their consumption. If they can obtain finance (in the belief that they will have higher permanent incomes) through an open capital account, present consumption will increase (Conley and Maloney, 1995). The current account imbalance resulting from such actions can le ...
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Lecture 3

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Implications of Chinese Yuan on China`s competitiveness
Implications of Chinese Yuan on China`s competitiveness

... the USD, EUR, JPY, AUD and MYR. It also includes a review of their volatilities and most importantly, the economic implications of the RMB rates on exports and foreign investment flows. The Renminbi has come a long way since its pegged days of 1994 to 2005. Most recently, head of the International M ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
The Exchange Rate and the Interest Rate Differential in Kenya: A

... interest rates have remained high even when inflation has been low and declining. That is, the economy has been on a deflationary trend since 1994, save for a few blips in 1997, and the exchange rate has been volatile. The paper analyses the relationship between real exchange rate movements and the ...
The euro as an international reserve currency: macroeconomic
The euro as an international reserve currency: macroeconomic

How Poland`s EU Membership Helped Transform its
How Poland`s EU Membership Helped Transform its

... worked in the university’s Institute of Economics. He earned a PhD in 1978 and a postdoctoral degree in economics in 1986. Since 1986, he has been associated with the Polish Academy of Sciences. During 1978–79 and 1985–86, he was a research fellow at Columbia University and the University of Chicago ...
Bolivia`s Fiscal Rules: Dynamic Stochastic General Equilibrium
Bolivia`s Fiscal Rules: Dynamic Stochastic General Equilibrium

... and Caputo et. al. (2006), we use a Taylor rule where the interest rate not only reacts to the inflation and output deviations, but also to interest rate lags and changes to nominal exchange rate. We use DYNARE in order to solve the model, but first it must be log – linearized. Furthermore, paramete ...
View/Open
View/Open

... Sectors that are capital-intensive and responsive to improved incentives for exports or import substitution tend to grow by a larger amount in the long-run since they are now able to acquire more easily the capital necessary to increase production. Growth in real value-added is strongest for the sa ...
22-30 Latin American Financial Crises (cont.)
22-30 Latin American Financial Crises (cont.)

... – High default rates on loans made by banks reduce their income to pay for liabilities and may increase bankruptcy. – If depositors fear bankruptcy due to possible devaluation of the currency or default on government debt (assets for banks), then they will quickly withdraw funds from banks (and poss ...
Volume 68 No. 4, December 2005 Contents
Volume 68 No. 4, December 2005 Contents

... This article looks at New Zealand’s oil consumption at a disaggregated level and discusses the consequences of movements in international oil prices for inflation, taking into account New Zealand’s industry structure as well as the tax treatment of different fuel types. Relative to the size of its ec ...
4. Supply and Demand Developments
4. Supply and Demand Developments

... GDP data for the second quarter of 2015 show that economic activity was stronger than anticipated in the July Inflation Report and national income posted a quarterly and annual growth of 1.3 and 3.8 percent, respectively. The annual GDP growth was mainly driven by industrial value added that exhibit ...
NBER WORKING PAPER SERIES PRICING TO MARKET
NBER WORKING PAPER SERIES PRICING TO MARKET

... This is useful, because during the first half of the 1980s Germany had fairly stable exchange rates against most of the EC, while the ecu depreciated sharply against the dollar and to a lesser extent the yen. Two series are shown, both for finished manufactures. First, we show the ratio of import un ...
What Is the Balance of Payments?
What Is the Balance of Payments?

What Washington Means by Policy Reform
What Washington Means by Policy Reform

O D : C E
O D : C E

... foreign country from which a country imports a currency, by making the foreign currency full legal tender and reducing its own currency, if any, to a subsidiary role. In officially dollarized countries, there is no domestic currency, no currency risk and, therefore, no risk of currency crises. As a ...
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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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