Optimal Exchange Rate Beyond Purchase Power Parity
... little returns. Growth in frivolous lending (which is testable) is likely to increase the quantum of nonperforming loans which may lead to instability in the banking system. The excess money, created due to lower currency values, for a small segment of national population will likely generate (testa ...
... little returns. Growth in frivolous lending (which is testable) is likely to increase the quantum of nonperforming loans which may lead to instability in the banking system. The excess money, created due to lower currency values, for a small segment of national population will likely generate (testa ...
Current Policy Challenges Faced by Emerging Market Economies and Korea 1. introduction
... interest rates speed up the draining of foreign funds from the bond market, further weakening the domestic currency and raising concerns about financial stability. Where the domestic financial system is still far from being mature, the additional liquidity resulting from the low policy rate may not ...
... interest rates speed up the draining of foreign funds from the bond market, further weakening the domestic currency and raising concerns about financial stability. Where the domestic financial system is still far from being mature, the additional liquidity resulting from the low policy rate may not ...
the global financial crisis: emerging markets` prospects for economic
... starting with Latvia, a new European Union member and not long ago a performer (just two years ago it posted the highest growth rate in Europe), Hungary, characterized by the largest in the EU debt-to-GDP ratio, continuing with Ukraine, desperately struggling for its economic survival with 50% deval ...
... starting with Latvia, a new European Union member and not long ago a performer (just two years ago it posted the highest growth rate in Europe), Hungary, characterized by the largest in the EU debt-to-GDP ratio, continuing with Ukraine, desperately struggling for its economic survival with 50% deval ...
Inflation Game Redistributions and Economic Crisis Path
... the interest rate of the monetary policy will produce more expensive and more difficult to procure money, but it will not solve the fundamental problem of economy, that is slowing the rhythm of the needs-wants dynamics or a significant limitation of them. Moreover, this measure will only partially i ...
... the interest rate of the monetary policy will produce more expensive and more difficult to procure money, but it will not solve the fundamental problem of economy, that is slowing the rhythm of the needs-wants dynamics or a significant limitation of them. Moreover, this measure will only partially i ...
Exchange Rate Regimes
... was abandoned in 1914. From the beginning of the First World War (1914-1918), through the interwar period, and up to the end of the Second World War (1939-45), there was extensive recourse to exchange controls by national governments, some experimentation with exchange flexibility, and an unsuccessf ...
... was abandoned in 1914. From the beginning of the First World War (1914-1918), through the interwar period, and up to the end of the Second World War (1939-45), there was extensive recourse to exchange controls by national governments, some experimentation with exchange flexibility, and an unsuccessf ...
4The Failed Attempts of the Interwar Years
... harm to trade cooperation. Some countries raised their tariffs as the bill was being debated. When it passed into law, numerous other nations introduced retaliatory increases. From the point of view of long-term trade cooperation, the most discouraging feature of the event was the ease with which co ...
... harm to trade cooperation. Some countries raised their tariffs as the bill was being debated. When it passed into law, numerous other nations introduced retaliatory increases. From the point of view of long-term trade cooperation, the most discouraging feature of the event was the ease with which co ...
Speech: The Federal Reserve System: Balancing Independence
... policy in the long-term interests of the American public. Another way independence is currently threatened arises from efforts to make political appointees out of the Reserve Bank presidents or members of their boards of directors. Both the threat of “policy audits” and the political appointment of ...
... policy in the long-term interests of the American public. Another way independence is currently threatened arises from efforts to make political appointees out of the Reserve Bank presidents or members of their boards of directors. Both the threat of “policy audits” and the political appointment of ...
Exchange rate determination
... To test the model many have used Frankel's (1979) observation that, under a reasonably general set of assumptions, Dornbusch model predicts that high real interest rates will cause the real exchange rate to appreciate. Looking at data: the model captures major turning points in monetary policy qui ...
... To test the model many have used Frankel's (1979) observation that, under a reasonably general set of assumptions, Dornbusch model predicts that high real interest rates will cause the real exchange rate to appreciate. Looking at data: the model captures major turning points in monetary policy qui ...
Ministerial Roundtable Presentation by Standrad Chartered
... or the particular needs of any particular person. Any investments discussed may not be suitable for all investors. Past performance is not necessarily indicative of future performance; the value, price or income from investments may fall as well as rise. SCB, and/or a connected company, may have a p ...
... or the particular needs of any particular person. Any investments discussed may not be suitable for all investors. Past performance is not necessarily indicative of future performance; the value, price or income from investments may fall as well as rise. SCB, and/or a connected company, may have a p ...
December 2009 - Harvard Kennedy School
... one should use a numeraire that is similar to the yardstick used by the authorities in measuring what constitutes a large deviation. The authorities are unlikely to use the Swiss franc or Canadian dollar in thinking about the size of deviations from their reference point. They are more likely to us ...
... one should use a numeraire that is similar to the yardstick used by the authorities in measuring what constitutes a large deviation. The authorities are unlikely to use the Swiss franc or Canadian dollar in thinking about the size of deviations from their reference point. They are more likely to us ...
14.02 PRINCIPLES OF MACROECONOMICS QUIZ 3 READ INSTRUCTIONS FIRST:
... 1. If a Central Bank is fully committed to a fixed exchange rate but investors expect a devaluation, it is likely that the economy will experience: A. an increase in the amount of money in circulation B. no change in the amount of money in circulation C. a decrease in the level of output D. a decrea ...
... 1. If a Central Bank is fully committed to a fixed exchange rate but investors expect a devaluation, it is likely that the economy will experience: A. an increase in the amount of money in circulation B. no change in the amount of money in circulation C. a decrease in the level of output D. a decrea ...
The Collapse of the Bretton Woods Fixed Exchange Rate System
... Starting from 1960, efforts to patch perceived deficiencies in the operation of the system assumed the form of perfecting interventions in the private gold market through the organization of the Gold Pool and the establishment of various formal liquidity-increasing techniques-the General Arrangement ...
... Starting from 1960, efforts to patch perceived deficiencies in the operation of the system assumed the form of perfecting interventions in the private gold market through the organization of the Gold Pool and the establishment of various formal liquidity-increasing techniques-the General Arrangement ...
Collapse. The story of the international financial crisis, its causes
... substantially in the wake of this decision (Chomsisengphet and Pennington-Cross, 2006). Other factors, such as the long economic upswing of the nineties and the stable macroeconomic environment since the mid-eighties as well as political and social pressures, contributed to a dramatic expansion of ...
... substantially in the wake of this decision (Chomsisengphet and Pennington-Cross, 2006). Other factors, such as the long economic upswing of the nineties and the stable macroeconomic environment since the mid-eighties as well as political and social pressures, contributed to a dramatic expansion of ...
When Policies Fuel Economic Cycles
... that potential growth in the EU slowed down from cca 2.5% in the late 1990s to 2% during 2005-2007, while trend growth in the 1970s and 1980s was around 5% on average. An analogous evolution can be ascribed to the US economy, too, over that period of time (see also Gordon, 2016). The impact of the f ...
... that potential growth in the EU slowed down from cca 2.5% in the late 1990s to 2% during 2005-2007, while trend growth in the 1970s and 1980s was around 5% on average. An analogous evolution can be ascribed to the US economy, too, over that period of time (see also Gordon, 2016). The impact of the f ...
Vienna vs. Chicago on Monetary Issues
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... inflows, all else being constant. In an economic sense, this is very different from a situation in which the country faces a sudden drop in the supply of external financing, to which the current account has to improve (unless the country possesses sufficient international reserves to smoothe the capita ...
... inflows, all else being constant. In an economic sense, this is very different from a situation in which the country faces a sudden drop in the supply of external financing, to which the current account has to improve (unless the country possesses sufficient international reserves to smoothe the capita ...
Greece shows the flaws in pursuing a common monetary policy
... more common economic behaviour, although there is little evidence that this has happened over recent years. The recent problems in Greece and the Eurozone have had a severe impact on the value of the euro, which has suffered increased volatility and a loss of value against other major currencies ove ...
... more common economic behaviour, although there is little evidence that this has happened over recent years. The recent problems in Greece and the Eurozone have had a severe impact on the value of the euro, which has suffered increased volatility and a loss of value against other major currencies ove ...
High-level Regional Policy Dialogue on
... The vulnerability has two specifics. One is so-called capital inflows problem, vulnerability of economy and financial system caused by massive capital inflows followed by sudden stop and reversal.1 The other is highly volatile FX market. The latter is somewhat related to the former but needs to be e ...
... The vulnerability has two specifics. One is so-called capital inflows problem, vulnerability of economy and financial system caused by massive capital inflows followed by sudden stop and reversal.1 The other is highly volatile FX market. The latter is somewhat related to the former but needs to be e ...
Islamic Financial System
... Sale and purchase of similar ribawi commodities should be performed at the same quantity and quality and must be hand to hand. Sale and purchase of different ribawi commodities at the different quantity and quality is permissible but it should be performed on the spot. The exchange of ribawi c ...
... Sale and purchase of similar ribawi commodities should be performed at the same quantity and quality and must be hand to hand. Sale and purchase of different ribawi commodities at the different quantity and quality is permissible but it should be performed on the spot. The exchange of ribawi c ...
Economy: Undo Jonathan`s Sealed Failure (2)
... instrument (PSI) on undiscerning (compromised?) Nigerian fiscal and monetary authorities through which the IMF/World Bank instituted WDAS (February 2006) and BDCs (April 2006) for use in the management of official foreign exchange. Both policy instruments were aimed at continued defoliation of the e ...
... instrument (PSI) on undiscerning (compromised?) Nigerian fiscal and monetary authorities through which the IMF/World Bank instituted WDAS (February 2006) and BDCs (April 2006) for use in the management of official foreign exchange. Both policy instruments were aimed at continued defoliation of the e ...
PDF
... post-1979 monetary policy designed to bring down the rate of inflation, which drops from 13% in 1979 to just 2% in 1986. The consequences of this monetary policy are severe for agriculture: net farm income drops sharply from over $70 billion in 1979 and remains below that level for the next 9 years. ...
... post-1979 monetary policy designed to bring down the rate of inflation, which drops from 13% in 1979 to just 2% in 1986. The consequences of this monetary policy are severe for agriculture: net farm income drops sharply from over $70 billion in 1979 and remains below that level for the next 9 years. ...
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.