Week 12
... can be used in turn to modify the AS-AD model to account for international trade with inflation As we saw last week, the price level can be included through the analysis of real exchange rates ...
... can be used in turn to modify the AS-AD model to account for international trade with inflation As we saw last week, the price level can be included through the analysis of real exchange rates ...
Time Inconsistency and the Exchange Rate Channel of
... looking variables, there is a difference between the case of discretion and the case of commitment to an optimal rule. The inclusion of uncovered interest rate parity and rational expections makes the analytical solution intractable. As is common in the literature on monetary policy in dynamic ratio ...
... looking variables, there is a difference between the case of discretion and the case of commitment to an optimal rule. The inclusion of uncovered interest rate parity and rational expections makes the analytical solution intractable. As is common in the literature on monetary policy in dynamic ratio ...
Surprising Similarities: Recent Monetary Regimes of Small Economies Andrew K. Rose
... world. The two regimes are also quite different, potentially providing a sharp contrast. The question I raise is, Did one monetary regime provide more insulation from the crisis than the other? The Great Recession associated with the crisis was the most dramatic macroeconomic event in generations; a ...
... world. The two regimes are also quite different, potentially providing a sharp contrast. The question I raise is, Did one monetary regime provide more insulation from the crisis than the other? The Great Recession associated with the crisis was the most dramatic macroeconomic event in generations; a ...
Economic and Strategy Viewpoint - January 2016
... hinted at a substantial increase in its QE programme by the end of the year. In October, Canada elected Justin Trudeau as its new Liberal Prime Minister, ending nine years of Conservative party rule. The Liberals campaigned on a message of real change, promising to use fiscal policy to galvanise the ...
... hinted at a substantial increase in its QE programme by the end of the year. In October, Canada elected Justin Trudeau as its new Liberal Prime Minister, ending nine years of Conservative party rule. The Liberals campaigned on a message of real change, promising to use fiscal policy to galvanise the ...
Ultra Easy Monetary Policy and the Law of Unintended Consequences
... In this paper, an attempt is made to evaluate the desirability of ultra easy monetary policy by weighing up the balance of the desirable short run effects and the undesirable longer run effects – the unintended consequences. In Section B, it is suggested that there are grounds to be ...
... In this paper, an attempt is made to evaluate the desirability of ultra easy monetary policy by weighing up the balance of the desirable short run effects and the undesirable longer run effects – the unintended consequences. In Section B, it is suggested that there are grounds to be ...
T I GLOBAL AND REGIONAL ECONOMIC DEVELOPMENTS: IMPLICATIONS
... the situation has significant worrisome elements. The United States current account deficit of –5.2 per cent of GDP is the worst in the country’s history and there is the likelihood of a further deterioration in 2004. Here the principal concern is that the appetite of foreigners to invest in United ...
... the situation has significant worrisome elements. The United States current account deficit of –5.2 per cent of GDP is the worst in the country’s history and there is the likelihood of a further deterioration in 2004. Here the principal concern is that the appetite of foreigners to invest in United ...
Fiscal policy
... Moving to the right on the horizontal axis refers to expansionary fiscal policy, while moving upward along the vertical axis refers to tight monetary policy and higher interest rates The various combinations of fiscal and monetary policies that result in internal balance are given by the IB line ...
... Moving to the right on the horizontal axis refers to expansionary fiscal policy, while moving upward along the vertical axis refers to tight monetary policy and higher interest rates The various combinations of fiscal and monetary policies that result in internal balance are given by the IB line ...
The International Implications of October 1979 (7 Oct 04).
... Chairman Volcker and his colleagues were resolute for the next couple years and their efforts, along with subsequent ongoing vigilance to prevent the economy from overheating, paid tremendous dividends for the United States. Core CPI inflation, which surpassed 11 percent in 1979, fell to under 5 per ...
... Chairman Volcker and his colleagues were resolute for the next couple years and their efforts, along with subsequent ongoing vigilance to prevent the economy from overheating, paid tremendous dividends for the United States. Core CPI inflation, which surpassed 11 percent in 1979, fell to under 5 per ...
South Africa`s high unemployment rate is no accident
... When the strength of the rand was allowed to rise rapidly after it had plunged to the level of R13,84 to the dollar in December 2001, the rate of inflation as measured by the general increase in rand denominated prices dropped to less than 1% during 2003. This was considered a policy success. Howeve ...
... When the strength of the rand was allowed to rise rapidly after it had plunged to the level of R13,84 to the dollar in December 2001, the rate of inflation as measured by the general increase in rand denominated prices dropped to less than 1% during 2003. This was considered a policy success. Howeve ...
Working Paper, No. 121 - Wirtschaftswissenschaftliche Fakultät der
... Second, the gradual growth of international financial markets allowed money supply growth to be absorbed by capital markets rather than goods markets. Easing monetary conditions showed up in rising asset rather than goods prices. With national monetary expansion in the large industrialized countrie ...
... Second, the gradual growth of international financial markets allowed money supply growth to be absorbed by capital markets rather than goods markets. Easing monetary conditions showed up in rising asset rather than goods prices. With national monetary expansion in the large industrialized countrie ...
Gold Standard - Pennsylvania State University
... the east tell him — but of course he finds that he has one by the end. • Once an independent and hard working human being, the Woodman found that each time he swung his axe it chopped off a different part of his body. Knowing no other trade he "worked harder than ever," for luckily in Oz tinsmiths c ...
... the east tell him — but of course he finds that he has one by the end. • Once an independent and hard working human being, the Woodman found that each time he swung his axe it chopped off a different part of his body. Knowing no other trade he "worked harder than ever," for luckily in Oz tinsmiths c ...
Lecture 1 (POWER POINT)
... The Changing Financial Landscape • There are financial crises and contagion among international financial markets. – With the increase in size and mobility of capital internationally, market reactions are faster, more severe, and broader in scope. – This new climate raises important questions for t ...
... The Changing Financial Landscape • There are financial crises and contagion among international financial markets. – With the increase in size and mobility of capital internationally, market reactions are faster, more severe, and broader in scope. – This new climate raises important questions for t ...
Document
... The monetary base is the liabilities of the Federal Reserve system and is composed of currency held by the public and reserves in the banking system. Because the Fed controls the amount of currency it has issued and can control reserves by changing the reserve ratio, the Fed has very close control o ...
... The monetary base is the liabilities of the Federal Reserve system and is composed of currency held by the public and reserves in the banking system. Because the Fed controls the amount of currency it has issued and can control reserves by changing the reserve ratio, the Fed has very close control o ...
ECON 202 - Macroeconomic Principles
... The Fed can increase or decrease the total amount of reserves in the banking system through either of the following operations: ...
... The Fed can increase or decrease the total amount of reserves in the banking system through either of the following operations: ...
Monetary Policy - Maria Jose Rodriguez
... The Fed has discretionary power to implement monetary policy. Would it be better if monetary authorities followed a rule that limited their power? Arguments for a policy rule: Prevents any abuse of power (this is unlikely in the U.S., however). Policy can be time inconsistent, leading to a loss of c ...
... The Fed has discretionary power to implement monetary policy. Would it be better if monetary authorities followed a rule that limited their power? Arguments for a policy rule: Prevents any abuse of power (this is unlikely in the U.S., however). Policy can be time inconsistent, leading to a loss of c ...
How to Characterise Financial Systems
... The importance of arm’s length transactions has increased in almost all countries. There remains a significant divide between the “Anglo-Saxon” and the other advanced countries, with the United States still substantially more arms-length than any other. ...
... The importance of arm’s length transactions has increased in almost all countries. There remains a significant divide between the “Anglo-Saxon” and the other advanced countries, with the United States still substantially more arms-length than any other. ...
European Integration in Crisis: the Centre
... Regarding the analysis of the dynamics of accumulation according to regulation theory, three different axes of regulation can be distinguished: Productive/financialized accumulation, extensive/intensive accumulation, and introverted/extraverted accumulation (Becker 2002: 67ff.). It is essential to ...
... Regarding the analysis of the dynamics of accumulation according to regulation theory, three different axes of regulation can be distinguished: Productive/financialized accumulation, extensive/intensive accumulation, and introverted/extraverted accumulation (Becker 2002: 67ff.). It is essential to ...
投影片 1 - Hong Kong Shue Yan University
... system in some different ways • link a basket of currency with HKD • only link with RMB and replace U.S dollar • can all use RMB in Hong Kong > reduce the transaction cost of currency exchange ...
... system in some different ways • link a basket of currency with HKD • only link with RMB and replace U.S dollar • can all use RMB in Hong Kong > reduce the transaction cost of currency exchange ...
International Macro
... rates will lead to a capital outflow (which depreciates the exchange rates and leads to greater NX). The higher demand leads to higher inflation and higher interest rates which reduces consumption and investment. Fixed Exchange rates. A rise in the foreign interest rates will lead directly 1-for-1 i ...
... rates will lead to a capital outflow (which depreciates the exchange rates and leads to greater NX). The higher demand leads to higher inflation and higher interest rates which reduces consumption and investment. Fixed Exchange rates. A rise in the foreign interest rates will lead directly 1-for-1 i ...
MEASURING THE EFFECTS OF MONETARY POLICY FOR
... Eichenbaum, and Evans (1994), among others. Monetary aggregates such as the monetary base, M1 and M2 have traditionally been used to measure the stance of monetary policy; however, it is generally agreed that the growth rates of monetary aggregates vary according to a variety of non-policy influence ...
... Eichenbaum, and Evans (1994), among others. Monetary aggregates such as the monetary base, M1 and M2 have traditionally been used to measure the stance of monetary policy; however, it is generally agreed that the growth rates of monetary aggregates vary according to a variety of non-policy influence ...
Slides Escaith
... - The pass-through effect of exporters is limited to their domestic content: need for higher revaluation, but ... - Alternative suppliers can substitute the exporter if appreciation is too high. 2. Exchange rate policy still effective to reduce global imbalances: ceteris paribus, a devaluation tends ...
... - The pass-through effect of exporters is limited to their domestic content: need for higher revaluation, but ... - Alternative suppliers can substitute the exporter if appreciation is too high. 2. Exchange rate policy still effective to reduce global imbalances: ceteris paribus, a devaluation tends ...
Chapter 10
... • For foreign currency x, the maximum oneday loss = E( ex ) – z[P] x E(ex) = expected % in x for the next day z[P] = if u ~ N(0,1), Prob (u < z[P] ) = P for 95% confidence level, z[.95] = 1.65 x = standard deviation of the daily % in x ...
... • For foreign currency x, the maximum oneday loss = E( ex ) – z[P] x E(ex) = expected % in x for the next day z[P] = if u ~ N(0,1), Prob (u < z[P] ) = P for 95% confidence level, z[.95] = 1.65 x = standard deviation of the daily % in x ...
Presentation, Powerpoint 665Kb - The Cambridge Trust for New
... • Differences in the productivity growth: higher TFP growth in the US nontradable sector and higher TFP growth in the tradable sector of the rest of the world (Obstfeld and Rogoff, 2007; Cova et al 2008) ...
... • Differences in the productivity growth: higher TFP growth in the US nontradable sector and higher TFP growth in the tradable sector of the rest of the world (Obstfeld and Rogoff, 2007; Cova et al 2008) ...
Chapter No. 6
... Application: Changes in the Equilibrium Exchange Rate • Changes in Interest Rates – When domestic real interest rates raise, the domestic currency appreciates. – When domestic interest rates rise due to an expected increase in inflation, the domestic currency depreciates. ...
... Application: Changes in the Equilibrium Exchange Rate • Changes in Interest Rates – When domestic real interest rates raise, the domestic currency appreciates. – When domestic interest rates rise due to an expected increase in inflation, the domestic currency depreciates. ...
PROFESSIONAL BIOGRAPHY Allan H. Meltzer The Allan H. Meltzer
... “The Main Forces Leading to the Common Currency Remain in Place”. The International Economy “Interview with Allan Meltzer on Keynes”, Fortune “Gold Fever is a Symptom”, New York Times “Meltzer: Solve Long-Term Problems”, Pittsburgh Tribune-Review ...
... “The Main Forces Leading to the Common Currency Remain in Place”. The International Economy “Interview with Allan Meltzer on Keynes”, Fortune “Gold Fever is a Symptom”, New York Times “Meltzer: Solve Long-Term Problems”, Pittsburgh Tribune-Review ...
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.