Purchasing Power Parity: Implication with respect to
... America’s own economy. First, sharply increasing the general prices in auction-market goods like prices of primary commodities or foreign exchange are useful early warning to the Fed that it is being too easy but Fed is again ignoring this warning. Second, due to U.S. monetary shock, hot money flows ...
... America’s own economy. First, sharply increasing the general prices in auction-market goods like prices of primary commodities or foreign exchange are useful early warning to the Fed that it is being too easy but Fed is again ignoring this warning. Second, due to U.S. monetary shock, hot money flows ...
PATTERNS OF FINANCIAL CAPITAL FLOWS AND
... Frankel (1991, and 1993); Marston (1995); Halwood and MacDonald (1994); Blecker (1998) and Eatwell (1996). Finally it is also to be noted that while the post-financial liberalization episodes are characterized by very large gross capital flows, they have generated rather small net transfers. As is a ...
... Frankel (1991, and 1993); Marston (1995); Halwood and MacDonald (1994); Blecker (1998) and Eatwell (1996). Finally it is also to be noted that while the post-financial liberalization episodes are characterized by very large gross capital flows, they have generated rather small net transfers. As is a ...
Exchange Rate Regime Choice with Multiple Key Currencies
... and categorize interests in the choice of an exchange rate regime. Frieden and others (Frieden 1991, 2002; Frieden et al. 2001; Frieden et al. 2008; Bearce and Hallerberg 2008) have claimed that individuals who predominantly receive income from the production of tradable goods favor a fixed exchang ...
... and categorize interests in the choice of an exchange rate regime. Frieden and others (Frieden 1991, 2002; Frieden et al. 2001; Frieden et al. 2008; Bearce and Hallerberg 2008) have claimed that individuals who predominantly receive income from the production of tradable goods favor a fixed exchang ...
The Global City: Whose Social Construct is it Anyway?
... made somewhat schematically. (For a more extensive analysis see Smith, 1994, 1995; Guarnizo and Smith, 1998.) Hopefully, despite its brevity, the case is made with sufficient clarity to move the "global cities" debate to a different level of analysis. First, the "global city" is best though of as a ...
... made somewhat schematically. (For a more extensive analysis see Smith, 1994, 1995; Guarnizo and Smith, 1998.) Hopefully, despite its brevity, the case is made with sufficient clarity to move the "global cities" debate to a different level of analysis. First, the "global city" is best though of as a ...
160715 gmp q3
... We are seeing a pick-up in activity in developed economies. In the US, retail and auto sales have strengthened after a soft first quarter and employment growth remains robust. Europe continues to expand, with little evidence that the Greek crisis has significantly damaged business or consumer confid ...
... We are seeing a pick-up in activity in developed economies. In the US, retail and auto sales have strengthened after a soft first quarter and employment growth remains robust. Europe continues to expand, with little evidence that the Greek crisis has significantly damaged business or consumer confid ...
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... compares the German unification shock with the shock created by Reagan's policies and analyses its impact on interest and exchange rates and on the performance of the European Monetary System (EMS). An attempt is made to determine which currencies have survived the German unification shock in a cond ...
... compares the German unification shock with the shock created by Reagan's policies and analyses its impact on interest and exchange rates and on the performance of the European Monetary System (EMS). An attempt is made to determine which currencies have survived the German unification shock in a cond ...
Business Cycle Synchronization in Asia
... At the economic theory level, it is not clear whether intensified bilateral trade results in more or less synchronization in business cycles. On the one hand, economic models of international trade (with monetary or technology innovation) focus on the cross-country spillover effects from shocks, and ...
... At the economic theory level, it is not clear whether intensified bilateral trade results in more or less synchronization in business cycles. On the one hand, economic models of international trade (with monetary or technology innovation) focus on the cross-country spillover effects from shocks, and ...
Economics of Money, Banking, and Financial Markets, 8e
... B) bank failures during the Great Depression were not the cause of the decline in the money supply. C) evidence from the Great Depression demonstrated the ineffectiveness of monetary policy. D) there is a weak link between interest rates and investment spending. Answer: A Ques Status: Revised ...
... B) bank failures during the Great Depression were not the cause of the decline in the money supply. C) evidence from the Great Depression demonstrated the ineffectiveness of monetary policy. D) there is a weak link between interest rates and investment spending. Answer: A Ques Status: Revised ...
There are four things I would do differently next time
... instituted tight fiscal and monetary policies to help curb inflationary pressures and stabilize the exchange rate. The current exchange rate of 12% seems dangerously high by western standards, but considering that the inflation rate in 1992 was over 80%,10 it becomes obvious that substantial improve ...
... instituted tight fiscal and monetary policies to help curb inflationary pressures and stabilize the exchange rate. The current exchange rate of 12% seems dangerously high by western standards, but considering that the inflation rate in 1992 was over 80%,10 it becomes obvious that substantial improve ...
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... use of global and China-specific computable general equilibrium models and the analysis of the impact of all of China’s WTO accession commitments, not only its agricultural commitments. The focus on general equilibrium research has two, related justifications. First, when analysing the impacts of ag ...
... use of global and China-specific computable general equilibrium models and the analysis of the impact of all of China’s WTO accession commitments, not only its agricultural commitments. The focus on general equilibrium research has two, related justifications. First, when analysing the impacts of ag ...
Stock prices and the East Asian Financial Crisis
... Apart from the US stock market, we have investigated whether the crisis could have originated from any of the main neighbouring stock markets, in Japan, Hong Kong and China. Although the crisis began in Thailand in 1997, others have suggested the crisis began earlier than this, with both China/ Hong ...
... Apart from the US stock market, we have investigated whether the crisis could have originated from any of the main neighbouring stock markets, in Japan, Hong Kong and China. Although the crisis began in Thailand in 1997, others have suggested the crisis began earlier than this, with both China/ Hong ...
report - Financial Policy Forum
... composition of capital flows by unbundling risk and redistributing it away from investors who did not want it and towards those more willing and able to bear it. At the same time, derivatives created new risks that were potentially destabilizing for developing economies. The following is an analysis ...
... composition of capital flows by unbundling risk and redistributing it away from investors who did not want it and towards those more willing and able to bear it. At the same time, derivatives created new risks that were potentially destabilizing for developing economies. The following is an analysis ...
NBER WORKING PAPER SERIES EXTERNAL CONSTRAINTS ON MONETARY POLICY Mark Gertler
... Christiano, Gust and Roldos [17], Devereux and Lane [23], and Schneider and Tornell [40]. Our paper is probably closest to CCV, who similarly emphasize the role of the exchange rate policy. The analysis in virtually all of this literature, however, is focused on qualitative results. In contrast, we ...
... Christiano, Gust and Roldos [17], Devereux and Lane [23], and Schneider and Tornell [40]. Our paper is probably closest to CCV, who similarly emphasize the role of the exchange rate policy. The analysis in virtually all of this literature, however, is focused on qualitative results. In contrast, we ...
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... This procedure has the advantages of being computationally simple and easy to implement. As discussed by Stock and Watson (2002), it also imposes few distributional assumptions and allows for some degree of cross‐correlation in the idiosyncratic error term et . Boivin and Ng (2005) document the good ...
... This procedure has the advantages of being computationally simple and easy to implement. As discussed by Stock and Watson (2002), it also imposes few distributional assumptions and allows for some degree of cross‐correlation in the idiosyncratic error term et . Boivin and Ng (2005) document the good ...
The IMF’s Indonesian Myths
... Four IMF Myths The are four myths concerning the IMF’s role in Indonesia to justify continued deference to the institution. The first myth is that the presence of an IMF agreement increases investor confidence in Indonesia. Yet after numerous Letters of Intent and four years under IMF supervision, ...
... Four IMF Myths The are four myths concerning the IMF’s role in Indonesia to justify continued deference to the institution. The first myth is that the presence of an IMF agreement increases investor confidence in Indonesia. Yet after numerous Letters of Intent and four years under IMF supervision, ...
ch17
... Depression? An increase in financial risk drove the banks to increase their holdings of reserves and everyone else to lower their bank deposits and hold more currency. Between 1929 and 1933, the banks’ desired reserve ratio increased from 8 percent to 12 ...
... Depression? An increase in financial risk drove the banks to increase their holdings of reserves and everyone else to lower their bank deposits and hold more currency. Between 1929 and 1933, the banks’ desired reserve ratio increased from 8 percent to 12 ...
Should Iraq Dollarize, Adopt a Currency Board or Let Its Currency
... – will strongly shape the choices that Iraq will subsequently be able to make. Facts on the ground have a way of becoming permanent. Once the interim authority starts paying people in dollars, the use of the dollar as a means of exchange is likely to increase rapidly. The supply of dollar bills – an ...
... – will strongly shape the choices that Iraq will subsequently be able to make. Facts on the ground have a way of becoming permanent. Once the interim authority starts paying people in dollars, the use of the dollar as a means of exchange is likely to increase rapidly. The supply of dollar bills – an ...
NBER WORKING PAPER SERIES THE EFFECT OF CONVENTIONAL AND UNCONVENTIONAL MONETARY
... monetary policy. In the wake of the 2008 financial crisis, the Fed lowered the interest rate close to zero and conventional monetary policy became ineffective; the interest rate could not be lowered further. At this point, the Fed began to engage in unconventional monetary policy in which it extende ...
... monetary policy. In the wake of the 2008 financial crisis, the Fed lowered the interest rate close to zero and conventional monetary policy became ineffective; the interest rate could not be lowered further. At this point, the Fed began to engage in unconventional monetary policy in which it extende ...
Financial Stability and Monetary Policy Erdem BAŞÇI Hakan KARA
... emphasis on global imbalances, capital flows, and associated macro financial risks. The CBRT stated explicitly that the rapid divergence between domestic and external demand as well as short-term capital inflows have contributed to financial stability risks, and underscored the need to use alternati ...
... emphasis on global imbalances, capital flows, and associated macro financial risks. The CBRT stated explicitly that the rapid divergence between domestic and external demand as well as short-term capital inflows have contributed to financial stability risks, and underscored the need to use alternati ...
Demand Imbalances, Exchange Rate Misalignment and Monetary Policy
... lighting the forward-looking nature of exchange rate determination.5 With a complete set of Arrow-Debreu securities – the case studied by DE – goods price stabilization, the same monetary policy that would be optimal in the face of standard, unanticipated technology shocks, is also optimal in respo ...
... lighting the forward-looking nature of exchange rate determination.5 With a complete set of Arrow-Debreu securities – the case studied by DE – goods price stabilization, the same monetary policy that would be optimal in the face of standard, unanticipated technology shocks, is also optimal in respo ...
Nicholas C Garganas: Macroeconomic management
... when dealing with supply-side shocks, unlike demand shocks, which influence both growth and inflation in the same direction, thereby simplifying somewhat the policy response. A negative supply shock tends to reduce growth (perhaps even causing it to become negative), while increasing inflation. Thus ...
... when dealing with supply-side shocks, unlike demand shocks, which influence both growth and inflation in the same direction, thereby simplifying somewhat the policy response. A negative supply shock tends to reduce growth (perhaps even causing it to become negative), while increasing inflation. Thus ...
Debt Composition and Balance Sheet Effects of Exchange and
... sharply after the crisis from about 24% to 31%. Foreign debt which was about 60% of total debt, increased to more than 70%. It is also interesting to see that the ratio of short term debt to sales abroad is much higher than 1, although it has been decreasing in recent years. In the years leading up ...
... sharply after the crisis from about 24% to 31%. Foreign debt which was about 60% of total debt, increased to more than 70%. It is also interesting to see that the ratio of short term debt to sales abroad is much higher than 1, although it has been decreasing in recent years. In the years leading up ...
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... Because it rises in all periods t t*, the opportunity cost of holding money (the third summand on the left) also increase. Due to the equilibrium condition M td M t and the identity M t Btcb , this increase is matched by an equivalent increase in seigniorage (the second summand on the right). ...
... Because it rises in all periods t t*, the opportunity cost of holding money (the third summand on the left) also increase. Due to the equilibrium condition M td M t and the identity M t Btcb , this increase is matched by an equivalent increase in seigniorage (the second summand on the right). ...
Thomas Plümper Department of Government, University of Essex Eric Neumayer
... In the empirical section of this paper we test the predictions of our theory with respect to exchange rate regime choice with multiple key currencies. We find that imports from the country issuing the key currency and imports from countries that have already pegged to that currency explain a countr ...
... In the empirical section of this paper we test the predictions of our theory with respect to exchange rate regime choice with multiple key currencies. We find that imports from the country issuing the key currency and imports from countries that have already pegged to that currency explain a countr ...
International monetary systems
International monetary systems are sets of internationally agreed rules, conventions and supporting institutions, that facilitate international trade, cross border investment and generally the reallocation of capital between nation states. They provide means of payment acceptable between buyers and sellers of different nationality, including deferred payment. To operate successfully, they need to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade and to provide means by which global imbalances can be corrected. The systems can grow organically as the collective result of numerous individual agreements between international economic factors spread over several decades. Alternatively, they can arise from a single architectural vision as happened at Bretton Woods in 1944.