When the North Last Headed South
... space to be aggressive, if they felt so inclined.6 All this meets the definition of “unconventional” monetary policy and quantitative easing (as in Bernanke and Reinhart 2004). In the standard rendering, there were three acts to this episode of quantitative easing. In the first act, in 1932, U.S. po ...
... space to be aggressive, if they felt so inclined.6 All this meets the definition of “unconventional” monetary policy and quantitative easing (as in Bernanke and Reinhart 2004). In the standard rendering, there were three acts to this episode of quantitative easing. In the first act, in 1932, U.S. po ...
A developing country view of the current global crisis
... to frame possible policy responses; tighter regulation of domestic financial markets being an obvious one. It would be positive for the understanding and prevention of financial crises if Minsky’s contributions have a greater influence on both economic research and policy making. Similarly, it is im ...
... to frame possible policy responses; tighter regulation of domestic financial markets being an obvious one. It would be positive for the understanding and prevention of financial crises if Minsky’s contributions have a greater influence on both economic research and policy making. Similarly, it is im ...
R C Morris Goldstein ENMINBI
... Many have argued that even if the RMB is undervalued, it would be most unwise to undertake a large revaluation since this could be catastrophic for China’s growth and economic development, as well as its social and financial stability. In this context, some opponents of RMB revaluation emphasize the ...
... Many have argued that even if the RMB is undervalued, it would be most unwise to undertake a large revaluation since this could be catastrophic for China’s growth and economic development, as well as its social and financial stability. In this context, some opponents of RMB revaluation emphasize the ...
Lessons Learned from the European Union (EU) Debt Crisis to the ASEAN Economic Community (AEC)
... One of the main causes of this financial crisis, for which the research team discovered, may result from the high discrepancies of currency exchange rates between member countries currency and the Euro; as depicted in table 1 below. This diversity is a result of countries with different economic ba ...
... One of the main causes of this financial crisis, for which the research team discovered, may result from the high discrepancies of currency exchange rates between member countries currency and the Euro; as depicted in table 1 below. This diversity is a result of countries with different economic ba ...
International Monetary System
... people began to question the ability of the United States to live up to its Bretton Woods obligation. This led to the Triffin paradox: foreigners needed to increase their holdings of dollars to finance expansion of international trade, but the more dollars they owned, the less faith they had in the ...
... people began to question the ability of the United States to live up to its Bretton Woods obligation. This led to the Triffin paradox: foreigners needed to increase their holdings of dollars to finance expansion of international trade, but the more dollars they owned, the less faith they had in the ...
The Relative Efficacy of Monetary and Fiscal Policy in Saudi Arabia
... The results indicate that there is some improvement in the specification by including private investment as part of induced expenditures. Obviously, this finding confirms official concern over possible declines in private investment brought about by capital outflows to Bahrain and other internationa ...
... The results indicate that there is some improvement in the specification by including private investment as part of induced expenditures. Obviously, this finding confirms official concern over possible declines in private investment brought about by capital outflows to Bahrain and other internationa ...
Economic Explorer 2 - Monetary Authority of Singapore
... Inflation targeting is not without its problems, however. Since inflation is ultimately an economic variable beyond central banks’ direct control, inflation targeting also faces difficulties in implementation, both in the form of unforeseen shocks to the economy, and the long and variable lags in mo ...
... Inflation targeting is not without its problems, however. Since inflation is ultimately an economic variable beyond central banks’ direct control, inflation targeting also faces difficulties in implementation, both in the form of unforeseen shocks to the economy, and the long and variable lags in mo ...
Economics of Monetary Union 10e
... • The flaws of the Stability and Growth Pact we just described led to serious problems in 2002– 4. • Major Eurozone countries were hit by an economic downturn. This led to an increase of the budget deficits of France, Germany, Italy, and Portugal. • In the name of the Pact, the European Commission ...
... • The flaws of the Stability and Growth Pact we just described led to serious problems in 2002– 4. • Major Eurozone countries were hit by an economic downturn. This led to an increase of the budget deficits of France, Germany, Italy, and Portugal. • In the name of the Pact, the European Commission ...
Adverse Effects of Ultra-Loose Monetary Policies on Investment
... Although the drop in interest rates and the dramatic expansion of central bank balance sheets had a stabilizing effect on financial markets and employment, investment and growth may be dampened in the medium and long term. This is most evident in Japan, where an exuberant financial market boom (the ...
... Although the drop in interest rates and the dramatic expansion of central bank balance sheets had a stabilizing effect on financial markets and employment, investment and growth may be dampened in the medium and long term. This is most evident in Japan, where an exuberant financial market boom (the ...
exchange rate
... Example Suppose that the exchange rate we are looking at is the number of Mexican pesos per U.S. dollar. Let PUS and PMex be indexes of the aggregate price levels in the United States and Mexico, respectively. Then the real exchange rate between the Mexican peso and the U.S. dollar is defined as: Re ...
... Example Suppose that the exchange rate we are looking at is the number of Mexican pesos per U.S. dollar. Let PUS and PMex be indexes of the aggregate price levels in the United States and Mexico, respectively. Then the real exchange rate between the Mexican peso and the U.S. dollar is defined as: Re ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... occurs when banks sell government securities in order to expand loans, a question widely discussed in the early 1950's. Another ex- ...
... occurs when banks sell government securities in order to expand loans, a question widely discussed in the early 1950's. Another ex- ...
Costs, Benefits, and Constraints of the Basket Currency Regime
... Ito et al. (1998) stressed the fact that Asian countries’ adoption of de facto dollar peg regimes, although their trade weight with Japan was substantial, was one of the most significant factors that induced the crisis. As the Japanese yen depreciated against the US dollar from April 1995 to the sum ...
... Ito et al. (1998) stressed the fact that Asian countries’ adoption of de facto dollar peg regimes, although their trade weight with Japan was substantial, was one of the most significant factors that induced the crisis. As the Japanese yen depreciated against the US dollar from April 1995 to the sum ...
2. What is deflation?
... In uncertain times, such as those we are currently living in, policy-makers must act with extreme caution. Economic agents and market participants listen to and read our words very carefully, in an effort to gain a better understanding of economic developments and possibly also to anticipate policy ...
... In uncertain times, such as those we are currently living in, policy-makers must act with extreme caution. Economic agents and market participants listen to and read our words very carefully, in an effort to gain a better understanding of economic developments and possibly also to anticipate policy ...
■' ■Æi.'ÿUw * S^pSsSSíií HÎKSfeïiiii
... The means of intervention used by governments to direct credit generated in the financial system towards its already determined priorities included directives issued to banks to allocate a given percentage of their loan portfolio to a particular sector, for example, agriculture, industry, etc., or t ...
... The means of intervention used by governments to direct credit generated in the financial system towards its already determined priorities included directives issued to banks to allocate a given percentage of their loan portfolio to a particular sector, for example, agriculture, industry, etc., or t ...
The demand for currency in Malta
... Note that both specifications differ slightly in two ways from those used in literature. A linear trend was included to account for growing financial sophistication (such as the increasing use of electronic payments). Two dummy variables were used to capture the impact of oneoff shocks, namely a sig ...
... Note that both specifications differ slightly in two ways from those used in literature. A linear trend was included to account for growing financial sophistication (such as the increasing use of electronic payments). Two dummy variables were used to capture the impact of oneoff shocks, namely a sig ...
Mexico`s Macroeconomic Policy Dilemma: How to deal with the
... further. The action is expected to lower interest rates further and put pressure on the peso to depreciate. Moreover, although not quite at international levels, inflation for the year is expected to be close to or below the official target of 6.5%, giving monetary authorities room to maneuver. Star ...
... further. The action is expected to lower interest rates further and put pressure on the peso to depreciate. Moreover, although not quite at international levels, inflation for the year is expected to be close to or below the official target of 6.5%, giving monetary authorities room to maneuver. Star ...
Models of Economic and Financial Crises
... specific index of vulnerability exceeds an arbitrarily chosen threshold. For example, for currency crises, the index of vulnerability is sometimes based on a weighted average of percentage changes in nominal exchange rates, gross international reserves and short-term interest rate differentials (e.g ...
... specific index of vulnerability exceeds an arbitrarily chosen threshold. For example, for currency crises, the index of vulnerability is sometimes based on a weighted average of percentage changes in nominal exchange rates, gross international reserves and short-term interest rate differentials (e.g ...
Book Review on - Portland State University
... has shown that deflation can occur in the aftermath of an asset price boom, and also that the possibility of a post-bubble deflation can pose a most challenging problem to monetary policy makers. That is, in the event bubbles in asset prices occur, central bankers face the necessity to tighten poli ...
... has shown that deflation can occur in the aftermath of an asset price boom, and also that the possibility of a post-bubble deflation can pose a most challenging problem to monetary policy makers. That is, in the event bubbles in asset prices occur, central bankers face the necessity to tighten poli ...
3460Chap12
... How to Measure Economic Exposure Economic exposure is the sensitivity of the future home currency value of the firm’s assets and liabilities and the firm’s operating cash flow to random changes in exchange rates. There exist statistical measurements of ...
... How to Measure Economic Exposure Economic exposure is the sensitivity of the future home currency value of the firm’s assets and liabilities and the firm’s operating cash flow to random changes in exchange rates. There exist statistical measurements of ...
The Capital Account and Pakistani Rupee Convertibility
... large capital inflows that have put pressure on their currencies to appreciate. The affected countries have tried to stem this inflow through various measures (notably, taxing short-term inflows) but with limited success. This problem has led the International Monetary Fund (IMF) to recognize that c ...
... large capital inflows that have put pressure on their currencies to appreciate. The affected countries have tried to stem this inflow through various measures (notably, taxing short-term inflows) but with limited success. This problem has led the International Monetary Fund (IMF) to recognize that c ...
The Drivers of Financial Globalization Philip R. Lane Gian Maria Milesi-Ferretti
... (rather than declining) over the period 1999-2006, with an increase in their share of crossborder assets and a decline in the share of cross-border liabilities. In general, the typical emerging market economy or developing country has much smaller cross-border asset and liability positions (with a m ...
... (rather than declining) over the period 1999-2006, with an increase in their share of crossborder assets and a decline in the share of cross-border liabilities. In general, the typical emerging market economy or developing country has much smaller cross-border asset and liability positions (with a m ...
Full Paper Here - Center for Economic and Social
... gained value during the past three months by appreciating 11.4% against the US dollar in the international currency exchange market (see Figure 1). ...
... gained value during the past three months by appreciating 11.4% against the US dollar in the international currency exchange market (see Figure 1). ...
Speaking points for Euro50-Natixis Breakfast Seminar
... Review (FSR), prior to the August turmoil, stated: “If history is any guide, liquidity can vanish abruptly from financial markets when investor uncertainty and risk aversion rise… and primary issuers… could struggle to find investors for their securities. Some banks would also face heightened counte ...
... Review (FSR), prior to the August turmoil, stated: “If history is any guide, liquidity can vanish abruptly from financial markets when investor uncertainty and risk aversion rise… and primary issuers… could struggle to find investors for their securities. Some banks would also face heightened counte ...
First Quarter Macro Insights
... global growth engine. The starkest example recently is the rebound in consumer confidence in Europe and upward revisions to economic growth there. Within the US, consumers are expected to lead the economy toward a 3% GDP growth rate this year. With the US job market powering ahead, the Federal Reser ...
... global growth engine. The starkest example recently is the rebound in consumer confidence in Europe and upward revisions to economic growth there. Within the US, consumers are expected to lead the economy toward a 3% GDP growth rate this year. With the US job market powering ahead, the Federal Reser ...
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.