A Sentiment-based Explanation of the Forward Premium Puzzle*
... of this appreciation depends on the home agent’s risk aversion since risk aversion determines the reduction in the marginal utility. Therefore, the econometrician is likely to observe a smaller depreciation or even an appreciation of the home currency in the data. In particular, when risk aversion i ...
... of this appreciation depends on the home agent’s risk aversion since risk aversion determines the reduction in the marginal utility. Therefore, the econometrician is likely to observe a smaller depreciation or even an appreciation of the home currency in the data. In particular, when risk aversion i ...
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... influence of a principal agent who controls the institution but has a different objective set than the one publically stated by the IMF (Bird 1995, Stone 2004, Dreher and Jensen 2007). Others, such ...
... influence of a principal agent who controls the institution but has a different objective set than the one publically stated by the IMF (Bird 1995, Stone 2004, Dreher and Jensen 2007). Others, such ...
The U.S. current account deficit: Gradual correction or abrupt adjustment? Sebastian Edwards ∗
... precedents for the current large global imbalances. The rest of the paper is organized as follows: in Section 2 I discuss the U.S. current account deficit from a historical perspective. I analyze trends and other countries’ experiences. I look at both the financing of the deficit and at the evolutio ...
... precedents for the current large global imbalances. The rest of the paper is organized as follows: in Section 2 I discuss the U.S. current account deficit from a historical perspective. I analyze trends and other countries’ experiences. I look at both the financing of the deficit and at the evolutio ...
Impact of Floating Exchange Rates on Company Risk Management
... In an idealized world, without information and transaction costs, explicit or implicit contract periods, and other obstacles to instantaneous price adjustments, deviations from various equil ibrium conditions such as purchas ing power parity, the law of one price. and both the domestic and internati ...
... In an idealized world, without information and transaction costs, explicit or implicit contract periods, and other obstacles to instantaneous price adjustments, deviations from various equil ibrium conditions such as purchas ing power parity, the law of one price. and both the domestic and internati ...
Capital Inflows and Exchange Rate Volatility in Korea
... In this study we focus on capital inflows to Korea, for two reasons. First, in less than 15 years Korea has gone through two major crises. The first originated from the Asian currency crisis of 1997, and the second has arisen more recently due to the global financial crisis. This means that there ha ...
... In this study we focus on capital inflows to Korea, for two reasons. First, in less than 15 years Korea has gone through two major crises. The first originated from the Asian currency crisis of 1997, and the second has arisen more recently due to the global financial crisis. This means that there ha ...
Exchange rate arrangements and misalignments: contrasting words
... producers. It may as well be an omen for crisis. Misalignment may also trigger beggarthy-neighbor policies. Ultimately, it would hamper economic growth and development. Economic theory stipulates that the equilibrium real exchange rate is independent of the exchange rate system, it is solely determi ...
... producers. It may as well be an omen for crisis. Misalignment may also trigger beggarthy-neighbor policies. Ultimately, it would hamper economic growth and development. Economic theory stipulates that the equilibrium real exchange rate is independent of the exchange rate system, it is solely determi ...
Ms. Muffet, the Spider(gram)
... The global financial crisis (GFC) has underscored the importance of understanding macrofinancial developments in an increasingly complex and interconnected world. In the course of the crisis, countries have experienced the spillover of risks from one segment of the economy to others, sometimes exace ...
... The global financial crisis (GFC) has underscored the importance of understanding macrofinancial developments in an increasingly complex and interconnected world. In the course of the crisis, countries have experienced the spillover of risks from one segment of the economy to others, sometimes exace ...
Free Full Text ( Final Version , 406kb )
... As a methodology to measure the national competitiveness or GDP, the term “purchasing power parity” (PPP) is relatively a new one. During the past century many economists and organizations have used it as a tool to analyses exchange rates within international financial market, as well as among diffe ...
... As a methodology to measure the national competitiveness or GDP, the term “purchasing power parity” (PPP) is relatively a new one. During the past century many economists and organizations have used it as a tool to analyses exchange rates within international financial market, as well as among diffe ...
Human Capital, Fertility, and Economic Growth
... Neither Malthus's nor the neoclassicists' approach to growth pays much attention to human capital. Yet the evidence is now quite strong of a close link between investments in human capital and growth. Since human capital is embodied knowledge and skills, and economic development depends on advances ...
... Neither Malthus's nor the neoclassicists' approach to growth pays much attention to human capital. Yet the evidence is now quite strong of a close link between investments in human capital and growth. Since human capital is embodied knowledge and skills, and economic development depends on advances ...
WT/BOP/R/91 - WTO Documents Online
... Some other Members considered that Ecuador's recourse to trade measures for balance-ofpayments purposes was fully justifiable in the current circumstances and that there were no alternative policy options available. One Member noted that Ecuador's tariffs were low, and in the lack of an independent ...
... Some other Members considered that Ecuador's recourse to trade measures for balance-ofpayments purposes was fully justifiable in the current circumstances and that there were no alternative policy options available. One Member noted that Ecuador's tariffs were low, and in the lack of an independent ...
Foreign Exchange Risk Management Practices
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
Estimating Trade Elasticities for World Capital Goods Exports
... by stimulating exports. These findings also indicate that concerns among British policy makers about the harmful effects of a stronger pound are justified (see Hamilton, 2012). Finally, the results imply that U.S. monetary policy to lower the exchange rate, as Chinn (2012) advocates, would have a sa ...
... by stimulating exports. These findings also indicate that concerns among British policy makers about the harmful effects of a stronger pound are justified (see Hamilton, 2012). Finally, the results imply that U.S. monetary policy to lower the exchange rate, as Chinn (2012) advocates, would have a sa ...
Factors Influencing Emerging Market Central Banks` Decision
... three IMF CGER methodologies) and reserve adequacy ratios (reserves-to short-term debt and reserves-to-M2). They find that that the exchange rate misalignment variable has a positive coefficient (i.e. more overvaluation leads to an increase in net FX purchases) and is statistically significant in si ...
... three IMF CGER methodologies) and reserve adequacy ratios (reserves-to short-term debt and reserves-to-M2). They find that that the exchange rate misalignment variable has a positive coefficient (i.e. more overvaluation leads to an increase in net FX purchases) and is statistically significant in si ...
Exchange Rate Volatility and Productivity Growth
... split into tradable and nontradable goods while rms face costs in tradable goods when innovating; 2) the rms' debt can be partially or completely denominated in terms of tradable goods. The question then is: depending on the level of dollarization, what regime stabilizes better the cash ows -that ...
... split into tradable and nontradable goods while rms face costs in tradable goods when innovating; 2) the rms' debt can be partially or completely denominated in terms of tradable goods. The question then is: depending on the level of dollarization, what regime stabilizes better the cash ows -that ...
"Monetary Policy According to HANK"
... The most compelling corroboration of this behavior is perhaps the quasi-experimental evidence that uncovers (i) an aggregate quarterly marginal propensity to consume out of unanticipated, transitory, small government transfers of around 25 percent (Johnson et al., 2006; Parker et al., 2013) and (ii) ...
... The most compelling corroboration of this behavior is perhaps the quasi-experimental evidence that uncovers (i) an aggregate quarterly marginal propensity to consume out of unanticipated, transitory, small government transfers of around 25 percent (Johnson et al., 2006; Parker et al., 2013) and (ii) ...
Monetary Policy According to HANK ∗ Greg Kaplan Benjamin Moll
... 2010). The most compelling corroboration of this behavior is perhaps the quasiexperimental evidence that uncovers (i) an aggregate quarterly marginal propensity to consume out of unanticipated, transitory, small government transfers of around 25 percent (Johnson et al., 2006; Parker et al., 2013) an ...
... 2010). The most compelling corroboration of this behavior is perhaps the quasiexperimental evidence that uncovers (i) an aggregate quarterly marginal propensity to consume out of unanticipated, transitory, small government transfers of around 25 percent (Johnson et al., 2006; Parker et al., 2013) an ...
the relationship between selected macroeconomic factors and gold
... Dollar and gold price. The inflation rate significantly affects the gold price and the US Real GDP is positively correlated to the gold price. Furthermore, Wang (2013) stated that crude oil has the possibility to affect any macroeconomic factor. The study aims to analyse the relationship between cru ...
... Dollar and gold price. The inflation rate significantly affects the gold price and the US Real GDP is positively correlated to the gold price. Furthermore, Wang (2013) stated that crude oil has the possibility to affect any macroeconomic factor. The study aims to analyse the relationship between cru ...
Finance as a Magnet for the Best and Brightest
... markets (Levine and Zervos, 1998), reductions in the cost of capital (Charis and Henry, 2002), a relaxation of capital constraints (Lins, Strickland and Zenner (2003), Gelos and Werner (2002), Gupta and Yuan (2009), and Laeven (2003)) and improvements in the efficiency of capital allocation (Galind ...
... markets (Levine and Zervos, 1998), reductions in the cost of capital (Charis and Henry, 2002), a relaxation of capital constraints (Lins, Strickland and Zenner (2003), Gelos and Werner (2002), Gupta and Yuan (2009), and Laeven (2003)) and improvements in the efficiency of capital allocation (Galind ...
Expanding the Central Bank mandate in the “Soy Republic”
... the money supply and the nominal exchange rate have direct bearing on the real exchange rate and on the real prices of agricultural goods. The compelling question, then, is whether Argentina’s agricultural interest groups have the incentives, means, and government access to influence monetary policy ...
... the money supply and the nominal exchange rate have direct bearing on the real exchange rate and on the real prices of agricultural goods. The compelling question, then, is whether Argentina’s agricultural interest groups have the incentives, means, and government access to influence monetary policy ...
Global Horse Trading: IMF Loans for Votes in the United Nations Security Council
... According to Malone (2000), there is extensive competition for these seats as countries might expect to receive rewards during their tenure. In fact, Kuziemko and Werker (2006) find that average US foreign aid increases by 54 percent and average UN development aid by 7 percent when a country is elec ...
... According to Malone (2000), there is extensive competition for these seats as countries might expect to receive rewards during their tenure. In fact, Kuziemko and Werker (2006) find that average US foreign aid increases by 54 percent and average UN development aid by 7 percent when a country is elec ...
Currency Mismatch: New Database and Indicators for Latin America
... employ these data to construct a regional database that offers several advantages in conducting crosscountry comparative studies and evaluating the effectiveness of various policies aimed at reducing currency mismatches: The data are comparable across countries at the highest possible level because ...
... employ these data to construct a regional database that offers several advantages in conducting crosscountry comparative studies and evaluating the effectiveness of various policies aimed at reducing currency mismatches: The data are comparable across countries at the highest possible level because ...
Three Essays on Macroeconomic and Financial Stability by MEI LI
... Global games, first studied by Carlsson and van Damme (1993), introduce incomplete information to games with strategic complementarities, addressing economic situations where both Bayesian learning and strategic complementarities exist. In a typical global game, a finite number or continuum of play ...
... Global games, first studied by Carlsson and van Damme (1993), introduce incomplete information to games with strategic complementarities, addressing economic situations where both Bayesian learning and strategic complementarities exist. In a typical global game, a finite number or continuum of play ...
Trade Effect of a Single Currency in East Africa
... with each other. Strategies to increase intra-regional trade include elimination of trade barriers through a regional trade block, the East African Common Market, and a monetary union. The purpose of this study is to evaluate the trade effect of a single currency policy for Kenya, Tanzania and Ugand ...
... with each other. Strategies to increase intra-regional trade include elimination of trade barriers through a regional trade block, the East African Common Market, and a monetary union. The purpose of this study is to evaluate the trade effect of a single currency policy for Kenya, Tanzania and Ugand ...
bordering capabilities versus borders
... components of what have historically been formalized as mutually exclusive domains. I have been especially interested in instances marked by contingency rather than lineal and determinative causalities. That is the conceptual advantage of the category of assemblages as compared to systems, a concept ...
... components of what have historically been formalized as mutually exclusive domains. I have been especially interested in instances marked by contingency rather than lineal and determinative causalities. That is the conceptual advantage of the category of assemblages as compared to systems, a concept ...
Monetary Policy without Central Bank Money: A Swiss Perspective
... In the past decade, it has become widely accepted that central banks should focus their attention on achieving and maintaining price stability. To underline their commitment to price stability, more and more central banks are adopting inflation targets. This is a far cry from the situation a quarter ...
... In the past decade, it has become widely accepted that central banks should focus their attention on achieving and maintaining price stability. To underline their commitment to price stability, more and more central banks are adopting inflation targets. This is a far cry from the situation a quarter ...
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.