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On the Benefits of Capital Account Liberalization for Emerging
... emphasizes two benefits in terms of allocative efficiency. First, through access to international financial markets, an open economy will be able to stabilize consumption more efficiently against output fluctuations. The welfare gains associated with this consumption smoothing are discussed in Obstfeld ...
... emphasizes two benefits in terms of allocative efficiency. First, through access to international financial markets, an open economy will be able to stabilize consumption more efficiently against output fluctuations. The welfare gains associated with this consumption smoothing are discussed in Obstfeld ...
S0412976_en.pdf
... growth are those that allow the exchange rate to stay flexible and take on relatively depreciated values. In these terms, all other things being equal, policy-makers who emphasize stability objectives will prefer “harder” regimes and exchange-rate appreciation, while policy-makers more focused on gr ...
... growth are those that allow the exchange rate to stay flexible and take on relatively depreciated values. In these terms, all other things being equal, policy-makers who emphasize stability objectives will prefer “harder” regimes and exchange-rate appreciation, while policy-makers more focused on gr ...
The Libyan Asset Freeze and Its Application to Foreign Government
... banks may claim that the accounts are actually exchange contracts involving United States currency.2 5 Performance of the obligations arising under these exchange contracts, particularly the repayment obligations of the United States bank, would violate United States exchange control regulations pro ...
... banks may claim that the accounts are actually exchange contracts involving United States currency.2 5 Performance of the obligations arising under these exchange contracts, particularly the repayment obligations of the United States bank, would violate United States exchange control regulations pro ...
Our Rationale for Investing in Physical Gold
... majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today. The effect of this action, in other words, will be to stabilize the dollar.” – Richard Nixon, August 1971 Nixon blamed the inescapable consequence of inflating the monet ...
... majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today. The effect of this action, in other words, will be to stabilize the dollar.” – Richard Nixon, August 1971 Nixon blamed the inescapable consequence of inflating the monet ...
A New Decade of the Global Age, 1996-2006
... globalization story to suit American interests. When, as the Modern Age was emerging in the early seventeenth century, Bishop Bossuet (1887 [1681]) sought to persuade the French prince that universal history was worth studying, he told him it was not for the common people but only for rulers to read ...
... globalization story to suit American interests. When, as the Modern Age was emerging in the early seventeenth century, Bishop Bossuet (1887 [1681]) sought to persuade the French prince that universal history was worth studying, he told him it was not for the common people but only for rulers to read ...
A Contribution to the Chronology of Turning Points in Global
... understanding about the role of globalization and international business cycles—the latter topic is discussed in this paper. The preoccupation with business cycles has its origins in the study of crises, so it is no surprise that renewed interest followed the financial recession of 2007-08. As econo ...
... understanding about the role of globalization and international business cycles—the latter topic is discussed in this paper. The preoccupation with business cycles has its origins in the study of crises, so it is no surprise that renewed interest followed the financial recession of 2007-08. As econo ...
NBER WORKING PAPER SERIES 1880-1913 vs. 1972-1997
... offshoots and Scandinavia generally avoided severe financial meltdowns while today many advanced countries have high original sin but have had few financial crises. The common denominator in both periods is that currency mismatches matter. A strong reserve position or high exports relative to hard c ...
... offshoots and Scandinavia generally avoided severe financial meltdowns while today many advanced countries have high original sin but have had few financial crises. The common denominator in both periods is that currency mismatches matter. A strong reserve position or high exports relative to hard c ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom
... resources by the private sector, which encourages excessive external borrowing, dollarization of international liabilities, and other actions that increase their exposure to potential capital shortfalls (see, e.g., Caballero and Krishnamurthy 2001, 2004, 2005). One way to mitigate the costs of this ...
... resources by the private sector, which encourages excessive external borrowing, dollarization of international liabilities, and other actions that increase their exposure to potential capital shortfalls (see, e.g., Caballero and Krishnamurthy 2001, 2004, 2005). One way to mitigate the costs of this ...
Chapter 7
... Nominal Exchange Rates--Choosing a Definition: Nominal exchange rates (E): price of foreign currency in terms of domestic currency ...
... Nominal Exchange Rates--Choosing a Definition: Nominal exchange rates (E): price of foreign currency in terms of domestic currency ...
MULTINATIONAL FINANCIAL MANAGEMENT: AN OVERVIEW
... multicurrency bonds, international mutual funds, country funds, and foreign stock index futures and options. Corporations also played an active role in integrating the world financial markets by listing their shares across national treasury hard-currency foreign reserves. The sale proceeds are often ...
... multicurrency bonds, international mutual funds, country funds, and foreign stock index futures and options. Corporations also played an active role in integrating the world financial markets by listing their shares across national treasury hard-currency foreign reserves. The sale proceeds are often ...
Robert Barro and Jong-Wha Lee IMF Programs: Who Is Chosen and What Are the Effects? (Second IMF Research Conference).
... the tie to a country’s past program experience would seem doubtful in this case. In any event, quotas are extremely persistent over time, with much of the allocations determined by the rules set out in 1944 at Bretton Woods. The IMF is also a political organization governed by its major shareholders ...
... the tie to a country’s past program experience would seem doubtful in this case. In any event, quotas are extremely persistent over time, with much of the allocations determined by the rules set out in 1944 at Bretton Woods. The IMF is also a political organization governed by its major shareholders ...
Optimal Monetary Policy in a Currency Union: Implications of a
... in …nancial systems. For countries with a highly regulated …nancial sector such as Germany or Japan, they do not …nd a signi…cant cost channel. However, for countries with a more market-based system such as in the UK or in the U.S., the authors estimate a coe¢ cient of 1.3, which is very much in lin ...
... in …nancial systems. For countries with a highly regulated …nancial sector such as Germany or Japan, they do not …nd a signi…cant cost channel. However, for countries with a more market-based system such as in the UK or in the U.S., the authors estimate a coe¢ cient of 1.3, which is very much in lin ...
NBER WORKING PAPER SERIES SOURCES OF MACROECONOMIC IMBALANCES A SIMULATION APPROACH
... hospitality during his visit to the Bank of Japan, November 1986 to January 1987. Financial support from the Brookings Institution and the Ford FOundation is gratefully acknowledged. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed ar ...
... hospitality during his visit to the Bank of Japan, November 1986 to January 1987. Financial support from the Brookings Institution and the Ford FOundation is gratefully acknowledged. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed ar ...
Money and the Transmission Mechanism in the Optimizing IS
... It is true that Hicks’ (1937) original derivation of his “IS-LL” curves was under the assumption of fully rigid nominal wages, while even some modern textbook treatments (e.g. Auerbach and Kotlikoff, 1995, p. 314) give the impression that the derivation of IS and LM relations requires the assumptio ...
... It is true that Hicks’ (1937) original derivation of his “IS-LL” curves was under the assumption of fully rigid nominal wages, while even some modern textbook treatments (e.g. Auerbach and Kotlikoff, 1995, p. 314) give the impression that the derivation of IS and LM relations requires the assumptio ...
Causes of and Remedies for the People`s Republic of China`s
... into six broad categories: measurement error, savings and investment gap, demographic transition, industry relocation, by-product of policies promoting strong growth, and exchange rate distortion. It should be noted that these explanations are not necessarily mutually exclusive. For instance, the pe ...
... into six broad categories: measurement error, savings and investment gap, demographic transition, industry relocation, by-product of policies promoting strong growth, and exchange rate distortion. It should be noted that these explanations are not necessarily mutually exclusive. For instance, the pe ...
"Two Decades Of Japanese Monetary Policy And The Deflation
... One may question whether monetary policy was too lax for too long during the bubble experience, that is the second half of the 1980s. What if monetary policy was tightened in 1988? Maybe that might have prevented the inflation rate from rising too quickly to the 3% level at the end of 1989. The Bank ...
... One may question whether monetary policy was too lax for too long during the bubble experience, that is the second half of the 1980s. What if monetary policy was tightened in 1988? Maybe that might have prevented the inflation rate from rising too quickly to the 3% level at the end of 1989. The Bank ...
Put-Call Parity, Transaction Costs and PHLX Currency
... However, due to PHLX market organization and trading conventions used to price and trade PHLX foreign exchange options,2 the use of synchronized data for rates would produce deviations that are primarily due to noise arising from, say, difficulties in determining actual bid and ask prices at which t ...
... However, due to PHLX market organization and trading conventions used to price and trade PHLX foreign exchange options,2 the use of synchronized data for rates would produce deviations that are primarily due to noise arising from, say, difficulties in determining actual bid and ask prices at which t ...
Why doesn’t Capital Flow from Rich to Poor Countries? An
... to scale production function and the same factors of production—capital and labor—differences in income per capita reflect differences in capital per capita. Thus, if capital were allowed to flow freely, the return to investment in any location should be the same. However, in his now classic example ...
... to scale production function and the same factors of production—capital and labor—differences in income per capita reflect differences in capital per capita. Thus, if capital were allowed to flow freely, the return to investment in any location should be the same. However, in his now classic example ...
On the trade impact of nominal exchange rate volatility
... increase bilateral trade among the two clients. In Section 3.2 I elaborate further on this point. Using a broad sample of countries from 1970 to 1997, and after accounting for all sources of bias, the analysis leads to the conclusion that exchange rate variability has no significant impact on trade. ...
... increase bilateral trade among the two clients. In Section 3.2 I elaborate further on this point. Using a broad sample of countries from 1970 to 1997, and after accounting for all sources of bias, the analysis leads to the conclusion that exchange rate variability has no significant impact on trade. ...
Determinants of Currency Risk Premiums
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
(PDF)
... A constant markup of price over costs is typical of industries with a very large number of firms, where the impact of any individual firm’s price changes on the industry price is negligible.5 In an oligopoly setting, instead, the markup will usually depend on the good’s dollar price and the dollar p ...
... A constant markup of price over costs is typical of industries with a very large number of firms, where the impact of any individual firm’s price changes on the industry price is negligible.5 In an oligopoly setting, instead, the markup will usually depend on the good’s dollar price and the dollar p ...
18.6 Problems In Implementing Monetary Policy
... The central bank can and does impose regulations on private commercial banks; it thereby regulates the size of the money supply and influences the level of economic activity. The central bank also implements monetary policy, which along with fiscal policy, forms the basis of efforts to direct the ec ...
... The central bank can and does impose regulations on private commercial banks; it thereby regulates the size of the money supply and influences the level of economic activity. The central bank also implements monetary policy, which along with fiscal policy, forms the basis of efforts to direct the ec ...
Monetary Policy And Sustainability: The Case of
... markets, and this will remain a key focus of BB”. The authorities have taken important steps in this direction — including tightening regulations on related lending, strengthening monitoring of banks’ stock market exposures, as well as recapitalization of state-owned commercial banks. Bangladesh Ban ...
... markets, and this will remain a key focus of BB”. The authorities have taken important steps in this direction — including tightening regulations on related lending, strengthening monitoring of banks’ stock market exposures, as well as recapitalization of state-owned commercial banks. Bangladesh Ban ...
International monetary systems
![](https://commons.wikimedia.org/wiki/Special:FilePath/International_money_montage.jpg?width=300)
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.