chapter viii
... expected exchange rate depreciation and the country risk premium. These conditions did prevail in Chile from the late 1980s, supported by a combination of five reasons. First, in 1992 and 1993 international dollar interest rates reached a thirty-year low. Second, notwithstanding the rising investmen ...
... expected exchange rate depreciation and the country risk premium. These conditions did prevail in Chile from the late 1980s, supported by a combination of five reasons. First, in 1992 and 1993 international dollar interest rates reached a thirty-year low. Second, notwithstanding the rising investmen ...
Gerald P. Dwyer Jr.
... Policy and Its Instruments What does the term policy mean? In this article, policy means a plan of action or a strategy. A policy may either be the outcome of some process or it may be a plan designed specifically to further some goal. In either case, dynamic aspects of the economy are sufficiently ...
... Policy and Its Instruments What does the term policy mean? In this article, policy means a plan of action or a strategy. A policy may either be the outcome of some process or it may be a plan designed specifically to further some goal. In either case, dynamic aspects of the economy are sufficiently ...
Riding the Wave of the Asian Financial Crisis
... this kind of bubble has developed, it can cause an extremely serious threat to the economy as a whole. c. Inability of governments to respond effectively. The market expectations brought on by international financial speculation and rapid capital movement created tremendous pressure on the currencie ...
... this kind of bubble has developed, it can cause an extremely serious threat to the economy as a whole. c. Inability of governments to respond effectively. The market expectations brought on by international financial speculation and rapid capital movement created tremendous pressure on the currencie ...
NBER WORKING PAPER SERIES WHAT HURTS MOST? Carmen M. Reinhart
... welfare would decline, representing a cost associated with developments on the foreign exchange market for this small country. Target zones for the large countries, if effective, would be able to prevent the budget line from rotating as the result of influences emanating from the developed world. Ho ...
... welfare would decline, representing a cost associated with developments on the foreign exchange market for this small country. Target zones for the large countries, if effective, would be able to prevent the budget line from rotating as the result of influences emanating from the developed world. Ho ...
GwartPPT014 - Crawfordsworld
... When decision makers fully anticipate the effects of a monetary expansion, the expansion does not alter real output even in the short-run. Suppliers, including resource suppliers, build the expected price rise into their decisions. The anticipated inflation leads to a rise in nominal costs (includin ...
... When decision makers fully anticipate the effects of a monetary expansion, the expansion does not alter real output even in the short-run. Suppliers, including resource suppliers, build the expected price rise into their decisions. The anticipated inflation leads to a rise in nominal costs (includin ...
Helicopters 101: your guide to monetary financing
... benefits of continuing wartime policy. Monetization has also been widely used in developing economies but often conjures up images of hyperinflation brought about by populist leaders in developing countries. In modern times both Zimbabwe and Venezuela have used the printing press to finance unsustai ...
... benefits of continuing wartime policy. Monetization has also been widely used in developing economies but often conjures up images of hyperinflation brought about by populist leaders in developing countries. In modern times both Zimbabwe and Venezuela have used the printing press to finance unsustai ...
MONETARY POLICY AND THE ECONOMY First
... Where would you look to find the most important macroeconomic policymakers today? In the White House? In Congress? Perhaps in the United Nations or the World Bank? Surprisingly, the answer is that you would look in an obscure marble building in Washington that houses the Federal Reserve System. It i ...
... Where would you look to find the most important macroeconomic policymakers today? In the White House? In Congress? Perhaps in the United Nations or the World Bank? Surprisingly, the answer is that you would look in an obscure marble building in Washington that houses the Federal Reserve System. It i ...
MONETARY POLICY AND THE ECONOMY First
... Where would you look to find the most important macroeconomic policymakers today? In the White House? In Congress? Perhaps in the United Nations or the World Bank? Surprisingly, the answer is that you would look in an obscure marble building in Washington that houses the Federal Reserve System. It i ...
... Where would you look to find the most important macroeconomic policymakers today? In the White House? In Congress? Perhaps in the United Nations or the World Bank? Surprisingly, the answer is that you would look in an obscure marble building in Washington that houses the Federal Reserve System. It i ...
2. I E D
... (Annual Percent Change) April World Advanced Economies USA Euro Area Germany France Italy Spain Greece Japan UK Emerging Economies Asia-Pacific* China India Latin America Brazil Eastern Europe ...
... (Annual Percent Change) April World Advanced Economies USA Euro Area Germany France Italy Spain Greece Japan UK Emerging Economies Asia-Pacific* China India Latin America Brazil Eastern Europe ...
Monetary Velocity in a Systemic
... considered as a neutral mirror of values. But apart from that it was difficult to explain the purchasing power of money and its effects like inflation, when expansion of the volume of money influences prices. So there had to be found a connection between prices and money to connect price-based equil ...
... considered as a neutral mirror of values. But apart from that it was difficult to explain the purchasing power of money and its effects like inflation, when expansion of the volume of money influences prices. So there had to be found a connection between prices and money to connect price-based equil ...
Testing the Taylor Model Predictability for Exchange Rates
... variables is given in Table 1. The first comparison model is the Flexible Price Monetary Model (FPMM) which became very representative in the 1970s, after the emergence of the Bretton Woods system in 1973, and the adoption of floating exchange rates by the main industrialized economies. The FPMM ass ...
... variables is given in Table 1. The first comparison model is the Flexible Price Monetary Model (FPMM) which became very representative in the 1970s, after the emergence of the Bretton Woods system in 1973, and the adoption of floating exchange rates by the main industrialized economies. The FPMM ass ...
Should China Revalue Its Currency?
... instead of experiencing a persistent fall against the US dollar from 6:1 at the end of 1996 to the current level of 31:1. Furthermore, more and more empirical studies show that PPP theory often tends to overvalue the exchange rate of the developing countries. In fact, one recent analysis conducted b ...
... instead of experiencing a persistent fall against the US dollar from 6:1 at the end of 1996 to the current level of 31:1. Furthermore, more and more empirical studies show that PPP theory often tends to overvalue the exchange rate of the developing countries. In fact, one recent analysis conducted b ...
A. The Impact on Mainland China`s Economy (continued)
... medium-scale state-owned enterprises and to increase their equities above the 49 per cent ceiling on most state-owned enterprises except companies in certain key industries. (3) The new policy would lift restraints on foreign enterprises taking out Renminbidenominated project financing. (4) China wi ...
... medium-scale state-owned enterprises and to increase their equities above the 49 per cent ceiling on most state-owned enterprises except companies in certain key industries. (3) The new policy would lift restraints on foreign enterprises taking out Renminbidenominated project financing. (4) China wi ...
Advanced Studies in International Economic Policy Research Kiel
... the EMU, which is an area of ongoing research. This topic is of practical significance, since the response of fiscal policy may either dampen or amplify the effects of monetary policy shocks, depending on whether fiscal and monetary policy are substitutes or complements.1 Within the G7, Muscatelli e ...
... the EMU, which is an area of ongoing research. This topic is of practical significance, since the response of fiscal policy may either dampen or amplify the effects of monetary policy shocks, depending on whether fiscal and monetary policy are substitutes or complements.1 Within the G7, Muscatelli e ...
The role of bank loans and deposits in the monetary transmission
... monetary policy causes banks to terminate the existing loans and stop making new loans. The brunt of the tight monetary policy is especially felt by borrowers who are dependent on bank lending. Consequently, the tighter monetary policy results in a decline in the aggregate economic output. Until now ...
... monetary policy causes banks to terminate the existing loans and stop making new loans. The brunt of the tight monetary policy is especially felt by borrowers who are dependent on bank lending. Consequently, the tighter monetary policy results in a decline in the aggregate economic output. Until now ...
MPC Communique No. 70 - May10-11, 2010
... wake of the abating global financial and economic crises does not endanger the stability of financial markets. In most of the affected countries, the huge fiscal deficits arose not only from increased spending but also from reduced revenues, thus suggesting the need for greater focus on revenue gene ...
... wake of the abating global financial and economic crises does not endanger the stability of financial markets. In most of the affected countries, the huge fiscal deficits arose not only from increased spending but also from reduced revenues, thus suggesting the need for greater focus on revenue gene ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... States money supply, current account balance, interest rate, and foreign exchange reserves.) He draws inferences from these correlations about the extent of policy intervention in each of four industrial countries. The results are quite interesting. The theoretical model predicts, for example, two a ...
... States money supply, current account balance, interest rate, and foreign exchange reserves.) He draws inferences from these correlations about the extent of policy intervention in each of four industrial countries. The results are quite interesting. The theoretical model predicts, for example, two a ...
DOCUMENTOS DE TRABAJO Serie Economía
... markets stand to benefit most from opening up their capital accounts, while the impact of this effect declines as the level of the local capital market’s development improves. Furthermore, it is notable that most of the coefficients associated with our firm- and country-level control variables have ...
... markets stand to benefit most from opening up their capital accounts, while the impact of this effect declines as the level of the local capital market’s development improves. Furthermore, it is notable that most of the coefficients associated with our firm- and country-level control variables have ...
5. F M F
... with the recent tightening in the liquidity policy imposed by the CBRT, short-term rates rose substantially, while the yield curve remained flat (Chart 5.1.14). The CBRT will closely monitor inflation expectations, pricing behavior and other factors affecting inflation in the upcoming period and mai ...
... with the recent tightening in the liquidity policy imposed by the CBRT, short-term rates rose substantially, while the yield curve remained flat (Chart 5.1.14). The CBRT will closely monitor inflation expectations, pricing behavior and other factors affecting inflation in the upcoming period and mai ...
Chapter 19
... full employment level or potential GDP, then any decrease in the money supply, M, will cause an equal proportional decrease in the price level, P. Thus we can conclude that, for a country’s central bank to keep the currency permanently overvalued, it must create domestic deflation. Deflation, by inc ...
... full employment level or potential GDP, then any decrease in the money supply, M, will cause an equal proportional decrease in the price level, P. Thus we can conclude that, for a country’s central bank to keep the currency permanently overvalued, it must create domestic deflation. Deflation, by inc ...
PDF
... This paper examines the competitiveness of the US timber industry under different exchange rate policies using a dynamic optimization model of global timber markets. We assume that exchange rates affect the cost structure of harvesting and managing forests and simulate the model for baseline conditi ...
... This paper examines the competitiveness of the US timber industry under different exchange rate policies using a dynamic optimization model of global timber markets. We assume that exchange rates affect the cost structure of harvesting and managing forests and simulate the model for baseline conditi ...
ge14 Fidrmuc
... Corresponding to the rising importance of the Chinese economy and its increasing trade integration with other economies, China’s economic developments and policy measures are of great and increasing consequence not only for itself but also for its trading partners. Exchange rate regimes and the leve ...
... Corresponding to the rising importance of the Chinese economy and its increasing trade integration with other economies, China’s economic developments and policy measures are of great and increasing consequence not only for itself but also for its trading partners. Exchange rate regimes and the leve ...
The Feasibility of Open Market Operations in Suriname:
... domestic money and capital market under similar conditions as other sectors. Therefore, it enables the government to refrain from monetization of fiscal deficits and facilitates government’s borrowing at market-determined interest rates. Based on the fundamental advantages of OMOs as indirect tool S ...
... domestic money and capital market under similar conditions as other sectors. Therefore, it enables the government to refrain from monetization of fiscal deficits and facilitates government’s borrowing at market-determined interest rates. Based on the fundamental advantages of OMOs as indirect tool S ...
Financial Crisis and the "Big Bang"
... a best fit for Japanese sense of creativity. In this connection, current lower PC price, in reaction to the boom at one point, may invoke genuine demand for it hereafter. The year 1998 would be the first year for us to become familiar with electronic money and electronic payment system. In fact, lar ...
... a best fit for Japanese sense of creativity. In this connection, current lower PC price, in reaction to the boom at one point, may invoke genuine demand for it hereafter. The year 1998 would be the first year for us to become familiar with electronic money and electronic payment system. In fact, lar ...
Simulation of Exchange Rates of Nigerian Naira
... dollar [24]. From the CBN statistical report, the average AFEM intervention rate which closed at 82.33 to a dollar in 1995 appreciated to 81.48 per dollar in 1996. The rate depreciated continuously to 81.98, 84.84 and 91.83 in 1997, 1998 and 1999 respectively. From 1960 until 2011 the USD-NGN exchan ...
... dollar [24]. From the CBN statistical report, the average AFEM intervention rate which closed at 82.33 to a dollar in 1995 appreciated to 81.48 per dollar in 1996. The rate depreciated continuously to 81.98, 84.84 and 91.83 in 1997, 1998 and 1999 respectively. From 1960 until 2011 the USD-NGN exchan ...
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.