The Asian Financial Crisis 1997-1998 and Malaysian Response: An
... the U.S. a more attractive investment destination relative to Southeast Asia, which had been attracting hot money flows through high short-term interest rates, and raised the value of the U.S. dollar. For the Southeast Asian nations which had currencies pegged to the U.S. dollar, the higher U.S. dol ...
... the U.S. a more attractive investment destination relative to Southeast Asia, which had been attracting hot money flows through high short-term interest rates, and raised the value of the U.S. dollar. For the Southeast Asian nations which had currencies pegged to the U.S. dollar, the higher U.S. dol ...
A Theory of Optimum Currency Areas1
... Mill, like Bagehot and others, was concerned with the costs of valuation and money changing, not stabilization policy, and it is readily seen that these costs tend to increase with the number of currencies. Any given money qua numéraire, or unit of account, fulfills this function less adequately if ...
... Mill, like Bagehot and others, was concerned with the costs of valuation and money changing, not stabilization policy, and it is readily seen that these costs tend to increase with the number of currencies. Any given money qua numéraire, or unit of account, fulfills this function less adequately if ...
Global Imbalances and the Financial Crisis
... effects of these features, it will be difficult to deal with the imbalances. As Paulson correctly observed, the imbalances and their attendant risks will emerge again once the current crisis is resolved. Since the Bretton Woods system was established after World War II, three of its features have wo ...
... effects of these features, it will be difficult to deal with the imbalances. As Paulson correctly observed, the imbalances and their attendant risks will emerge again once the current crisis is resolved. Since the Bretton Woods system was established after World War II, three of its features have wo ...
Document
... c. Central Banks as Monetary Policymakers Central banks are also usually charged with formulating and implementing monetary policy. A key goal of monetary policy is normally taken to be promoting stable, non-inflationary real growth in national output. Some economists believe that monetary policy sh ...
... c. Central Banks as Monetary Policymakers Central banks are also usually charged with formulating and implementing monetary policy. A key goal of monetary policy is normally taken to be promoting stable, non-inflationary real growth in national output. Some economists believe that monetary policy sh ...
Chapter 6 The Transition to a Monetary Union
... ERM-II) has replaced the old Exchange Rate Mechanism (ERM) since 1 January 1999 – Adherence to the mechanism is voluntary – Its operating procedures are determined in agreement between the ECB and the central banks of the 'outs' – ERM-II is based on central rates around which relatively wide margins ...
... ERM-II) has replaced the old Exchange Rate Mechanism (ERM) since 1 January 1999 – Adherence to the mechanism is voluntary – Its operating procedures are determined in agreement between the ECB and the central banks of the 'outs' – ERM-II is based on central rates around which relatively wide margins ...
FRBSF E L CONOMIC ETTER
... short-term maturities and did not apply to international trade or long-term foreign investment transactions. The exchange rate was then pegged, interest rates were lowered, and commercial banks were encouraged to lend. While Malaysia’s capital controls successfully curbed capital flows, there is no ...
... short-term maturities and did not apply to international trade or long-term foreign investment transactions. The exchange rate was then pegged, interest rates were lowered, and commercial banks were encouraged to lend. While Malaysia’s capital controls successfully curbed capital flows, there is no ...
France: Economy on probation US: Labour market India: Interest
... India: Interest rate cut Last week, the Reserve Bank of India (RBI, central bank) again cut the key policy interest rate (repo) by 25bps. This was the third cut of 25bps so far this year. The RBI’s action reflects an easing in headline and core inflationary pressures against a background of weaker e ...
... India: Interest rate cut Last week, the Reserve Bank of India (RBI, central bank) again cut the key policy interest rate (repo) by 25bps. This was the third cut of 25bps so far this year. The RBI’s action reflects an easing in headline and core inflationary pressures against a background of weaker e ...
World Trade and Its Players
... The TPP membership represents a market of nearly 800 million people and a combined GDP of $28.5 trillion. Eighty-one percent of Canada’s total exports already go to TPP members. TPP countries include some of the fastest-growing economies in the world, and this is expected to continue to be the case. ...
... The TPP membership represents a market of nearly 800 million people and a combined GDP of $28.5 trillion. Eighty-one percent of Canada’s total exports already go to TPP members. TPP countries include some of the fastest-growing economies in the world, and this is expected to continue to be the case. ...
ASIA AND THE IMF
... Second, when discussing capital controls, it is important to distinguish between outflows and inflows. For controls on outflows to succeed, they need to be quite extensive. As a country develops, these are likely to become more distorting and less effective. And controls cannot prevent a devaluatio ...
... Second, when discussing capital controls, it is important to distinguish between outflows and inflows. For controls on outflows to succeed, they need to be quite extensive. As a country develops, these are likely to become more distorting and less effective. And controls cannot prevent a devaluatio ...
Distinguished Lecture on Economics in Government Exchange rate
... targeting ( movements in the exchange rate will be taken into account indirectly in setting monetary policy because exchange rate affects prices) • Q:. Why should monetary policy not target both nominal exchange rate and the inflation rate? Central banks face this question in a situation with an app ...
... targeting ( movements in the exchange rate will be taken into account indirectly in setting monetary policy because exchange rate affects prices) • Q:. Why should monetary policy not target both nominal exchange rate and the inflation rate? Central banks face this question in a situation with an app ...
Chapter 25 PPP
... Objections to Early Keynesian Evidence • Friedman and Schwartz published a monetary history of the U.S. showing that monetary policy was actually contractionary during the Great Depression • Many different interest rates • During deflation, low nominal interest rates do not necessarily indicate exp ...
... Objections to Early Keynesian Evidence • Friedman and Schwartz published a monetary history of the U.S. showing that monetary policy was actually contractionary during the Great Depression • Many different interest rates • During deflation, low nominal interest rates do not necessarily indicate exp ...
(PPT). Guiding future growth - Urbanization and Global
... • Fed stops QE: what does it mean? • Developed economies and emerging markets are entering a period of slower growth • Greater instability and volatility in current accounts, capital flows, exchange and interest rates • Changing monetary hegemony: transitions are always bumpy ...
... • Fed stops QE: what does it mean? • Developed economies and emerging markets are entering a period of slower growth • Greater instability and volatility in current accounts, capital flows, exchange and interest rates • Changing monetary hegemony: transitions are always bumpy ...
The People`s Republic of China and its Dollar Exchange Rate as a
... • Since 1994, China’s stable dollar exchange rate and current account convertibility were followed by high noninflationary growth of 8 to 10%. • In East Asia, as China surpassed Japan in trade and size by the mid 2000s, its high growth and more stable dollar rate better smoothed regional business cy ...
... • Since 1994, China’s stable dollar exchange rate and current account convertibility were followed by high noninflationary growth of 8 to 10%. • In East Asia, as China surpassed Japan in trade and size by the mid 2000s, its high growth and more stable dollar rate better smoothed regional business cy ...
Global Business Finance
... market forces of supply & demand, but only to a certain extent. The price of a nation’s currency naturally “floats” in the global market place according to how much nations & companies want to use this currency for trading purposes & by how much of the currency is available in banks. However, nation ...
... market forces of supply & demand, but only to a certain extent. The price of a nation’s currency naturally “floats” in the global market place according to how much nations & companies want to use this currency for trading purposes & by how much of the currency is available in banks. However, nation ...
The Mirage of Capital Controls by Sebastian Edwards
... Large capital flows have been at the heart of every major currency crisis during the 1990s. From Mexico in 1994, to Thailand in 1997, to Brazil in the winter of 1999, the stories are remarkably similar: Attracted by high domestic interest rates, a sense of stability stemming from rigid exchange rate ...
... Large capital flows have been at the heart of every major currency crisis during the 1990s. From Mexico in 1994, to Thailand in 1997, to Brazil in the winter of 1999, the stories are remarkably similar: Attracted by high domestic interest rates, a sense of stability stemming from rigid exchange rate ...
Exam 4 outline notes
... makers eventually anticipate the higher inflation rate and build it into their choices. As this happens, money interest rates, wages, and incomes will reflect the expectation of inflation, so real interest rates, wages, and output will return to their long-run normal levels. III. Monetary Policy Whe ...
... makers eventually anticipate the higher inflation rate and build it into their choices. As this happens, money interest rates, wages, and incomes will reflect the expectation of inflation, so real interest rates, wages, and output will return to their long-run normal levels. III. Monetary Policy Whe ...
Hot Money Flows, Cycles in Primary Commodity Prices, and
... For better or for worse, the world economy is on a dollar standard—and has been since the end of World War II [McKinnon 2013, chs. 1& 2]. From 1945 up to the late 1960s, this accident of history was for the better. Monetary policy of the United States remained stable, and its current account showed ...
... For better or for worse, the world economy is on a dollar standard—and has been since the end of World War II [McKinnon 2013, chs. 1& 2]. From 1945 up to the late 1960s, this accident of history was for the better. Monetary policy of the United States remained stable, and its current account showed ...
166 SOME FEATURES OF POSTWAR BUSINESS CYCLES
... However, the gold standard period was quite stable and experienced significant growth. We can not say the same about the interwar period that meant a mixed regime of floating, managed floating and convertibility. Great Depression, the last century’s biggest economic problem, is attributed to progold ...
... However, the gold standard period was quite stable and experienced significant growth. We can not say the same about the interwar period that meant a mixed regime of floating, managed floating and convertibility. Great Depression, the last century’s biggest economic problem, is attributed to progold ...
Module: 2103Y Economic Regulation Groups: 1001 and 1002
... 58. Graphically explain the effect of export subsidies on domestic and international prices. 59. Describe the effect of quotas on the economy. 60. List the arguments in favour and against the free trade. 61. What are the main duties of World Trade Organization? 62. Imagine that, the government has d ...
... 58. Graphically explain the effect of export subsidies on domestic and international prices. 59. Describe the effect of quotas on the economy. 60. List the arguments in favour and against the free trade. 61. What are the main duties of World Trade Organization? 62. Imagine that, the government has d ...
Determining Aggregate Demand (AD)
... the graph, Y C relationship affects the shape of the AD curve. Changes in Wealth or Consumer Confidence make up autonomous consumption (consumption due to causes other than Y) -- shift the AD curve. ...
... the graph, Y C relationship affects the shape of the AD curve. Changes in Wealth or Consumer Confidence make up autonomous consumption (consumption due to causes other than Y) -- shift the AD curve. ...
Current Cacophony of Monetary Policy
... interest rates did not materialize and hence the longer-term interest rates did not rise that time around. Chairman Greenspan was caught by surprise and declared it a CONUNDRUM. The FED, at that time, did not have sufficient longer-term securities to sell as they do now thanks to the QEs. This would ...
... interest rates did not materialize and hence the longer-term interest rates did not rise that time around. Chairman Greenspan was caught by surprise and declared it a CONUNDRUM. The FED, at that time, did not have sufficient longer-term securities to sell as they do now thanks to the QEs. This would ...
Eurogroup Study Guide EuroMUN 2017
... All these states started taking foreign assistance, predominantly from Germany. States that receives assistance, such as Greece, were asked to adhere to the same standards of work and tax payment as in the lending countries. Meaning a cut in spending, and a reduction in borrowing money. It was soon ...
... All these states started taking foreign assistance, predominantly from Germany. States that receives assistance, such as Greece, were asked to adhere to the same standards of work and tax payment as in the lending countries. Meaning a cut in spending, and a reduction in borrowing money. It was soon ...
Reserve flows & the gold standard
... Initially, the PBoC had no trouble sterilizing the inflows. => The MB growth rate was kept down to the growth rate of the real economy (≈ 10%/year), so there was little inflationary pressure. ...
... Initially, the PBoC had no trouble sterilizing the inflows. => The MB growth rate was kept down to the growth rate of the real economy (≈ 10%/year), so there was little inflationary pressure. ...
Slides
... Note: Carnegie is now owned by the Swedish National Debt Office and the Riksbank’s liquidity assistance has been repaid ...
... Note: Carnegie is now owned by the Swedish National Debt Office and the Riksbank’s liquidity assistance has been repaid ...
The Political Economy of Exchange Rate Policy
... > Models do not deal with the reciprocity between interests groups, politicians and central bankers > Partisan Theory: MP is somehow driven by economic preferences of voters, since they know politicians preferences, but still face electioral uncertainties. ...
... > Models do not deal with the reciprocity between interests groups, politicians and central bankers > Partisan Theory: MP is somehow driven by economic preferences of voters, since they know politicians preferences, but still face electioral uncertainties. ...
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.