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... nominal interest rate. However, we emphasise our worries about short-term exchange rate volatility, which may increase the risk premium of forint denominated loans. In small foreign exchange markets, excessive exchange rate volatility may contribute to illiquid market conditions, typically character ...
... nominal interest rate. However, we emphasise our worries about short-term exchange rate volatility, which may increase the risk premium of forint denominated loans. In small foreign exchange markets, excessive exchange rate volatility may contribute to illiquid market conditions, typically character ...
Jack Yeager - Bauer College of Business
... The challenge for every company is to both ensure adequate capital to sustain the business while delivering returns that grow capital ...
... The challenge for every company is to both ensure adequate capital to sustain the business while delivering returns that grow capital ...
SUGGESTED SOLUTIONS TO CHAPTER 7 PROBLEMS
... If B&D didn't produce overseas, but instead exported from its U.S. plants, then currency changes would lead to much greater swings in its profits. Note that B&D's domestic profitability is also affected by currency changes since it faces competition in the U.S. from foreign companies such as Japan' ...
... If B&D didn't produce overseas, but instead exported from its U.S. plants, then currency changes would lead to much greater swings in its profits. Note that B&D's domestic profitability is also affected by currency changes since it faces competition in the U.S. from foreign companies such as Japan' ...
Document
... have integrated markets. • The integration of financial markets implies that there can be no significant differences in exchange rates across locations. – Arbitrage: buy at low price and sell at higher price for a profit. – If the euro were to sell for $1.1 in New York and $1.2 in London, could buy ...
... have integrated markets. • The integration of financial markets implies that there can be no significant differences in exchange rates across locations. – Arbitrage: buy at low price and sell at higher price for a profit. – If the euro were to sell for $1.1 in New York and $1.2 in London, could buy ...
Document
... Makes recession worse Speculators try to sell their holdings of the domestic currency – Self fulfilling prophecy – Devaluation usually but not always occurs. ...
... Makes recession worse Speculators try to sell their holdings of the domestic currency – Self fulfilling prophecy – Devaluation usually but not always occurs. ...
On Floating Exchange Rates, Currency Depreciation
... market, will in fact be set at a level compatible with external equilibrium. Second, there is the question of whether or not a currency depreciation would have a beneficial effect on aggregate demand and hence on employment2. In connection with the first point, it is widely accepted that macroeconom ...
... market, will in fact be set at a level compatible with external equilibrium. Second, there is the question of whether or not a currency depreciation would have a beneficial effect on aggregate demand and hence on employment2. In connection with the first point, it is widely accepted that macroeconom ...
NBER WORKING PAPER SERIES AREAS Pierre-Richard Agenor
... when countries should elect to form or participate in a currency union.1 These criteria include similarity of inflation rates, the degree of factor mobility, the openness and size of the economy, the scope of production diversification, the degree of price and wage flexibility, the extent of integra ...
... when countries should elect to form or participate in a currency union.1 These criteria include similarity of inflation rates, the degree of factor mobility, the openness and size of the economy, the scope of production diversification, the degree of price and wage flexibility, the extent of integra ...
Perspectives on International Political Economy
... U.S. policy on fighting against the Taliban in Afghanistan and ratcheting up pressure on Iran to abandon its effort to develop nuclear weapons. Many analysts believe that Obama’s decisions reveal a significant weakening of U.S. influence in the Middle East. Perhaps to counteract this decline, Obama ...
... U.S. policy on fighting against the Taliban in Afghanistan and ratcheting up pressure on Iran to abandon its effort to develop nuclear weapons. Many analysts believe that Obama’s decisions reveal a significant weakening of U.S. influence in the Middle East. Perhaps to counteract this decline, Obama ...
Pacific Basin Working Paper Series CAPITAL CONTROLS AND EXCHANGE RATE INSTABILITY
... that “…the relative absence of contagion effect on Chile [during the currency crises of the 1990s] is due to its sturdy banking regulation and not to its capital controls policy” (p. 22). This finding is supported by Edwards’ (1989) analysis of the role of capital controls in thirty-nine devaluation ...
... that “…the relative absence of contagion effect on Chile [during the currency crises of the 1990s] is due to its sturdy banking regulation and not to its capital controls policy” (p. 22). This finding is supported by Edwards’ (1989) analysis of the role of capital controls in thirty-nine devaluation ...
Working Paper No. 405 Monetary policy, capital
... A range of hypotheses have been put forward to explain the boom in house prices that occurred in the United States from the mid-1990s to 2007. This paper considers the relative importance of two of these hypotheses. First, global imbalances increased liquidity in the US nancial system, driving down ...
... A range of hypotheses have been put forward to explain the boom in house prices that occurred in the United States from the mid-1990s to 2007. This paper considers the relative importance of two of these hypotheses. First, global imbalances increased liquidity in the US nancial system, driving down ...
Carbaugh, International Economics 9e, Chapter 14
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
CH 17 PP
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
the long-run behavior of the yen and the dollar
... is a good place to begin. Since exchange rates measure the relative values of currencies and currencies are used to buy the output of an economy — the gross domestic product — many analysts turn to the GDP deflator. This broad index, however, has the major drawback that foreign exchange is not used ...
... is a good place to begin. Since exchange rates measure the relative values of currencies and currencies are used to buy the output of an economy — the gross domestic product — many analysts turn to the GDP deflator. This broad index, however, has the major drawback that foreign exchange is not used ...
MishkinCh17
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
The Foreign Exchange Market
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
... • Using the theory of asset demand—the most important factor affecting the demand for domestic (dollar) assets and foreign (euro) assets is the expected return on these assets relative to each other ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom
... Before tackling the issue from a theoretical perspective, I want to raise some empirical issues: there are some endogeneity issues that are hard to deal with. Indeed, foreign aid is not randomly assigned and targeted toward countries that most need it. In particular, in periods of large current acco ...
... Before tackling the issue from a theoretical perspective, I want to raise some empirical issues: there are some endogeneity issues that are hard to deal with. Indeed, foreign aid is not randomly assigned and targeted toward countries that most need it. In particular, in periods of large current acco ...
Kiel Paper Bordo Helbling NBER version final
... In this paper, we document evidence on the synchronization of business cycles across 16 countries over the past century and a quarter, demarcated into four exchange rate regimes. We find using three different methodologies that there is a secular trend towards increased synchronization for much of t ...
... In this paper, we document evidence on the synchronization of business cycles across 16 countries over the past century and a quarter, demarcated into four exchange rate regimes. We find using three different methodologies that there is a secular trend towards increased synchronization for much of t ...
Currency Crises
... monetary policy. In practice, this means that it must be willing to raise domestic interest rates high enough to maintain the attractiveness of its currency to speculators. But, as the examples above show, many countries with pegged exchange rate regimes at some time or another have found forgoing a ...
... monetary policy. In practice, this means that it must be willing to raise domestic interest rates high enough to maintain the attractiveness of its currency to speculators. But, as the examples above show, many countries with pegged exchange rate regimes at some time or another have found forgoing a ...
Achieving Price Stability in Nigeria:
... There is no generally acceptable definition of price stability (Douch and Essadam, 2010) though Cihak (2007) argues that inflation provides the operational definition. Most definitions of price stability evolve around country inflation target. For instance, price stability in Nigeria according Owoye ...
... There is no generally acceptable definition of price stability (Douch and Essadam, 2010) though Cihak (2007) argues that inflation provides the operational definition. Most definitions of price stability evolve around country inflation target. For instance, price stability in Nigeria according Owoye ...
Asset Price Bubble in Japan in the 1980s: Lessons for Financial and
... The bursting of the asset price bubble not only triggered the materialization of adverse effects but also amplified them as time passed, thereby making such structural adjustment more difficult. This incomplete economic adjustment to major changes in a relative price system resulted in the downward ...
... The bursting of the asset price bubble not only triggered the materialization of adverse effects but also amplified them as time passed, thereby making such structural adjustment more difficult. This incomplete economic adjustment to major changes in a relative price system resulted in the downward ...
Crisis Prevention through Global Surveillance: A Task beyond the IMF
... • The supervisory framework has been improved and the supervisor’s capacity to supervise banks has been enhanced, but the bank resolution framework should be strengthened. • Given the significant size of cross-border activities, continued and strengthened cooperation with host supervisors is warrant ...
... • The supervisory framework has been improved and the supervisor’s capacity to supervise banks has been enhanced, but the bank resolution framework should be strengthened. • Given the significant size of cross-border activities, continued and strengthened cooperation with host supervisors is warrant ...
Department of Economics, University of Toronto
... framework, discuss the effects of this Agreement on Mexican output, employment, real wages, consumption, investment, exports and imports, prices, the level of real money balances, the level of foreign reserves held by Mexico. Carefully explain all adjustment mechanisms. Consider both the short-run a ...
... framework, discuss the effects of this Agreement on Mexican output, employment, real wages, consumption, investment, exports and imports, prices, the level of real money balances, the level of foreign reserves held by Mexico. Carefully explain all adjustment mechanisms. Consider both the short-run a ...
Principality of Liechtenstein `AAA/A- 1+`
... government does not expect that this will affect its labor market because many people who intend to work in Liechtenstein in the future could decide to reside in neighboring Austria or Germany instead of Switzerland. In our view, even if the relationship between the EU and Switzerland deteriorated b ...
... government does not expect that this will affect its labor market because many people who intend to work in Liechtenstein in the future could decide to reside in neighboring Austria or Germany instead of Switzerland. In our view, even if the relationship between the EU and Switzerland deteriorated b ...
Exchange rate and monetary policy for Kazakhstan in light of
... and others who set wages and prices then perceive that inflation will be low in the future because the currency peg will prevent the central bank from expanding even if it wanted to. When workers and firm managers have low expectations of inflation, they set their wages and prices accordingly. The r ...
... and others who set wages and prices then perceive that inflation will be low in the future because the currency peg will prevent the central bank from expanding even if it wanted to. When workers and firm managers have low expectations of inflation, they set their wages and prices accordingly. The r ...
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... policies among open and interdependent economies? From the recent policy and academic debate, it is far from obvious that monetary policy should have any ‘international’ dimension at all. In fact, there is little or no consensus on such questions as of whether domestic monetary policy should react t ...
... policies among open and interdependent economies? From the recent policy and academic debate, it is far from obvious that monetary policy should have any ‘international’ dimension at all. In fact, there is little or no consensus on such questions as of whether domestic monetary policy should react t ...
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.