Exchange Rates and Trade Balances under the Dollar Standard
... parity internationally. As a result, exchange rate determination can no longer be isolated from monetary policies. According Frankel and Mussa (1980), in an open economy, the exchange rate is a forward-looking variable. They adopted an asset-market approach which implies that investors will base the ...
... parity internationally. As a result, exchange rate determination can no longer be isolated from monetary policies. According Frankel and Mussa (1980), in an open economy, the exchange rate is a forward-looking variable. They adopted an asset-market approach which implies that investors will base the ...
The Global Crisis of the Late 2000s and Currency Substitution: A
... their local currency equivalent. In other words, because of a sudden change in exchange rates, the value of foreign deposits in terms of local currency can be inflated or deflated without a change in the amount of foreign deposits. Exchange rates are included in the study to control these effects of ...
... their local currency equivalent. In other words, because of a sudden change in exchange rates, the value of foreign deposits in terms of local currency can be inflated or deflated without a change in the amount of foreign deposits. Exchange rates are included in the study to control these effects of ...
67051073I_en.pdf
... downward tendency, standing at less than 10% per year at the end of this phase. It may be emphasized that the development model or growth strategy which prevailed during much of the first stage and was marked by a combination of rapid growth and low inflation was an almost pure primary-export strate ...
... downward tendency, standing at less than 10% per year at the end of this phase. It may be emphasized that the development model or growth strategy which prevailed during much of the first stage and was marked by a combination of rapid growth and low inflation was an almost pure primary-export strate ...
The European Central Bank — History, Structure, and the Decision
... Maastricht Treaty, as noted previously. The Maastricht Treaty laid out four criteria that countries must meet to become eligible to join the Euro Zone. First, a country’s inflation rate was not to exceed the average inflation rate of the three best-performing member states by more than 1.5 percent. ...
... Maastricht Treaty, as noted previously. The Maastricht Treaty laid out four criteria that countries must meet to become eligible to join the Euro Zone. First, a country’s inflation rate was not to exceed the average inflation rate of the three best-performing member states by more than 1.5 percent. ...
Chapter 6
... Spanish attempt to build a European “world-empire.” The Dutch United Provinces played a leading role in the protracted struggle against imperial Spain. The Treaties of Westphalia (1648) formalized a European inter-state system based on balance of power. The United Provinces was considered by histori ...
... Spanish attempt to build a European “world-empire.” The Dutch United Provinces played a leading role in the protracted struggle against imperial Spain. The Treaties of Westphalia (1648) formalized a European inter-state system based on balance of power. The United Provinces was considered by histori ...
The Global Financial Crisis and Its Impact on Trade
... Emerging market/developing countries World Advanced economies Source: IMF includes forecast for 2010-2014. ...
... Emerging market/developing countries World Advanced economies Source: IMF includes forecast for 2010-2014. ...
Managing Short-Term Capital Flows in New Central Banking
... For new (performing) general purpose standard loans (Group 1), general provisions were increased from 1 percent to 4 percent. Specific provisions for closely followed up loans (Group 2) increased from 2 percent to 8 percent. The higher provisioning requirements are for banks having a consumer loan p ...
... For new (performing) general purpose standard loans (Group 1), general provisions were increased from 1 percent to 4 percent. Specific provisions for closely followed up loans (Group 2) increased from 2 percent to 8 percent. The higher provisioning requirements are for banks having a consumer loan p ...
Slide 1
... Liquidity Trap liquidity trap – demand for money is infinitely elastic (LM curve horizontal), causing monetary policy to be completely ineffective Neoclassical economists refute this through the Pigou Effect: real money balances influence consumption and the IS curve. ...
... Liquidity Trap liquidity trap – demand for money is infinitely elastic (LM curve horizontal), causing monetary policy to be completely ineffective Neoclassical economists refute this through the Pigou Effect: real money balances influence consumption and the IS curve. ...
DP2003/04 Monetary policy transmission mechanisms and currency unions:
... countries could widen the existing cyclical variation and potentially impede the inflation-targeting role of the European Central Bank (ECB).3 The results of studies on Euro-area transmission mechanisms vary considerably. Gerlach and Smets (1995) concluded that the effects of monetary policy shocks ...
... countries could widen the existing cyclical variation and potentially impede the inflation-targeting role of the European Central Bank (ECB).3 The results of studies on Euro-area transmission mechanisms vary considerably. Gerlach and Smets (1995) concluded that the effects of monetary policy shocks ...
WORLD TRADE
... to developing countries, be it foreign direct investment or other forms of inflows. This is affecting capital accumulation, and hence growth, in countries that need capital the most. It is limiting investments in trade-related infrastructure that would expand their capacity to trade in the future. I ...
... to developing countries, be it foreign direct investment or other forms of inflows. This is affecting capital accumulation, and hence growth, in countries that need capital the most. It is limiting investments in trade-related infrastructure that would expand their capacity to trade in the future. I ...
Shaping Factors for Trade - World Trade Organization
... to developing countries, be it foreign direct investment or other forms of inflows. This is affecting capital accumulation, and hence growth, in countries that need capital the most. It is limiting investments in trade-related infrastructure that would expand their capacity to trade in the future. I ...
... to developing countries, be it foreign direct investment or other forms of inflows. This is affecting capital accumulation, and hence growth, in countries that need capital the most. It is limiting investments in trade-related infrastructure that would expand their capacity to trade in the future. I ...
''Re-regulating Global Finance in the Light of the Global Crisis''
... speculative behaviour of investors as elucidated by Keynes. He stressed that the crisis has presented an opportunity for developing countries to discuss with developed countries how to restructure the international economic order. However, for developing countries to raise their issues, what is requ ...
... speculative behaviour of investors as elucidated by Keynes. He stressed that the crisis has presented an opportunity for developing countries to discuss with developed countries how to restructure the international economic order. However, for developing countries to raise their issues, what is requ ...
TOPIC I
... v. Money's issue.- The states started to issue notes and coins that gave right to the bearer to exchange them for gold or silver from the country's reserves. vi. Development of support of paper money.a) By the XVIII and XIX centuries.- Many countries had a bimetallic standard, based in gold and silv ...
... v. Money's issue.- The states started to issue notes and coins that gave right to the bearer to exchange them for gold or silver from the country's reserves. vi. Development of support of paper money.a) By the XVIII and XIX centuries.- Many countries had a bimetallic standard, based in gold and silv ...
Fiscal and monetary policy determinants of the
... architecture and wrong rescue policies rather than Treaty’s regulations themselves. On the contrary, the Article 125 of the Treaty of the Functioning of the European Union is quite clear in this respect: it prohibits any direct bailout of member states. However, in spite of the letter of the Treaty, ...
... architecture and wrong rescue policies rather than Treaty’s regulations themselves. On the contrary, the Article 125 of the Treaty of the Functioning of the European Union is quite clear in this respect: it prohibits any direct bailout of member states. However, in spite of the letter of the Treaty, ...
NBER WORKING PAPER SERIES THE UNSUSTAINABLE US CURRENT ACCOUNT POSITION REVISITED
... et al., 2004a, b) that the current Asian exchange rate pegs constitute a Bretton Woods II system. Perhaps, but that analysis applies more readily to China than Japan, which accounts for a much bigger share of global current account surpluses. Even for China, current evidence suggests that more marke ...
... et al., 2004a, b) that the current Asian exchange rate pegs constitute a Bretton Woods II system. Perhaps, but that analysis applies more readily to China than Japan, which accounts for a much bigger share of global current account surpluses. Even for China, current evidence suggests that more marke ...
Download paper (PDF)
... economics profession had long come to this view2— but who was saying it. Indeed, it would have been truly striking if they had come to any other conclusion. The report should be read seriously by past and present policy-makers—including those in the US Treasury who have in the past pushed, and conti ...
... economics profession had long come to this view2— but who was saying it. Indeed, it would have been truly striking if they had come to any other conclusion. The report should be read seriously by past and present policy-makers—including those in the US Treasury who have in the past pushed, and conti ...
Ordoliberalism, Pragmatism and the Eurozone Crisis
... The roots of monetary thinking in Ordoliberalism can be traced back to the early 1920s. Trying to overcome the “Great Antinomy” between historical and theoretical social science, Eucken develops an institutional approach to economics as exemplified in his first two books on monetary policy (Eucken, ...
... The roots of monetary thinking in Ordoliberalism can be traced back to the early 1920s. Trying to overcome the “Great Antinomy” between historical and theoretical social science, Eucken develops an institutional approach to economics as exemplified in his first two books on monetary policy (Eucken, ...
The Measurement of Money Supply
... relative to other macroeconomic targets including inflation and economic ...
... relative to other macroeconomic targets including inflation and economic ...
T I GLOBAL AND REGIONAL ECONOMIC DEVELOPMENTS: IMPLICATIONS
... the threat of war in Iraq, which could potentially exacerbate the weaknesses in the global economy.2 One effect that is already making itself felt is the rise in oil prices, which will negatively influence the terms of trade for the region. While there are some grounds for optimism as far as the ESC ...
... the threat of war in Iraq, which could potentially exacerbate the weaknesses in the global economy.2 One effect that is already making itself felt is the rise in oil prices, which will negatively influence the terms of trade for the region. While there are some grounds for optimism as far as the ESC ...
Macroeconomic imbalances and institutional reforms in EMU
... rising foreign demand, both from EMU and the rest of the world. Some of the countries (Greece, Portugal, and Spain) seemed to have repositioned themselves better within global value chains. France and Italy on the contrary lost some of their share in the production of demanded goods. Furthermore, in ...
... rising foreign demand, both from EMU and the rest of the world. Some of the countries (Greece, Portugal, and Spain) seemed to have repositioned themselves better within global value chains. France and Italy on the contrary lost some of their share in the production of demanded goods. Furthermore, in ...
The Role of Currency Board Regime during Economic Crisis
... serve as a more solid weapon in the fight with downturn, as opposed to most economic literature. The “impossible trinity” of simultaneously maintaining a pegged exchange rate, open capital account, and an independent monetary policy is well established. Secondly, Ghosh and Ostry (2009) also found th ...
... serve as a more solid weapon in the fight with downturn, as opposed to most economic literature. The “impossible trinity” of simultaneously maintaining a pegged exchange rate, open capital account, and an independent monetary policy is well established. Secondly, Ghosh and Ostry (2009) also found th ...
Macroeconomics of Keynesian and Marxian inspirations: Toward a
... for example, the relative stocks of capital or prices. “Dimension” refers to the general or average values of the variables, for example, total output as in a macro model.3 2. Time frames. The distinction between various time frames is based on the hypothesis that one set of variables is involved wi ...
... for example, the relative stocks of capital or prices. “Dimension” refers to the general or average values of the variables, for example, total output as in a macro model.3 2. Time frames. The distinction between various time frames is based on the hypothesis that one set of variables is involved wi ...
2006-5
... econometric techniques did not allow any serious investigation of the problem due to the insufficient number of available observations. Nevertheless some work has been undertaken. In particular, two recent studies of post-communist countries warrant mention. In the first place, Dawson (2003) used fi ...
... econometric techniques did not allow any serious investigation of the problem due to the insufficient number of available observations. Nevertheless some work has been undertaken. In particular, two recent studies of post-communist countries warrant mention. In the first place, Dawson (2003) used fi ...
The political economy of the Ecuadorian financial crisis
... expansion falls. The economy becomes financially fragile endogenously because agents have institutional and psychological incentives to make mistakes in judgment and confuse temporary increases in creditworthiness with permanent changes (see Crotty, 1994; Grabel, 1995). McKinnon and Pill (1996) and ...
... expansion falls. The economy becomes financially fragile endogenously because agents have institutional and psychological incentives to make mistakes in judgment and confuse temporary increases in creditworthiness with permanent changes (see Crotty, 1994; Grabel, 1995). McKinnon and Pill (1996) and ...
Chinese Foreign Exchange Reserves, Policy Choices and the U.S.
... Managed exchange rates are common. The IMF (2014) estimates that 66 percent of exchange rate arrangements are managed, leaving only about 34 percent of such arrangements as floating. 2 Most countries that choose to float their currencies are developed. For example, the currencies of Australia, Cana ...
... Managed exchange rates are common. The IMF (2014) estimates that 66 percent of exchange rate arrangements are managed, leaving only about 34 percent of such arrangements as floating. 2 Most countries that choose to float their currencies are developed. For example, the currencies of Australia, Cana ...
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.