The International Monetary Fund: 70 Years of Reinvention
... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
Real currency appreciation in accession countries
... Richards/Tersman's (1996) arguments, for instance, resemble those of the papers which were mentioned in the previous paragraph. They attribute the real appreciation of the Baltic states' currencies partly to an adjustment of relatively low domestic prices to the levels of countries with similar inco ...
... Richards/Tersman's (1996) arguments, for instance, resemble those of the papers which were mentioned in the previous paragraph. They attribute the real appreciation of the Baltic states' currencies partly to an adjustment of relatively low domestic prices to the levels of countries with similar inco ...
NBER WORKING PAPERS SERIES OPENNESS AND INFLATION: THEORY AND EVIDENCE David Romer
... variances of the surprise monetary shocks in the two countries are equal -the fraction of firms with flexib1e prices will therefore be larger in the more open economy. This would provide another channel through which increased openness worsened the output-inflation tradeoff, and would therefore caus ...
... variances of the surprise monetary shocks in the two countries are equal -the fraction of firms with flexib1e prices will therefore be larger in the more open economy. This would provide another channel through which increased openness worsened the output-inflation tradeoff, and would therefore caus ...
The Equilibrium Exchange Rate: Alternative Concepts and
... short-term and long-term equilibrium values), any identified exchange rate misalignment is often referred to as the current misalignment. An extension of the BEER: the permanent equilibrium exchange rate (PEER) 12. A major weakness of the BEER is that it does not distinguish between the long-term an ...
... short-term and long-term equilibrium values), any identified exchange rate misalignment is often referred to as the current misalignment. An extension of the BEER: the permanent equilibrium exchange rate (PEER) 12. A major weakness of the BEER is that it does not distinguish between the long-term an ...
deflation - Mises Institute
... a matter of fact, the wage decreases occurred mainly after the deflation was over: “Most of the price deflation took place in 1921, whereas wage deflation took place primarily in 1922” (p. 101). This delayed adjustment, and not deflation per se, explains why unemployment skyrocketed in 1921 to 25 pe ...
... a matter of fact, the wage decreases occurred mainly after the deflation was over: “Most of the price deflation took place in 1921, whereas wage deflation took place primarily in 1922” (p. 101). This delayed adjustment, and not deflation per se, explains why unemployment skyrocketed in 1921 to 25 pe ...
Research and Monetary Policy Department Working Paper No:07/07
... domestic …rms, which have foreign currency liabilities in their balance sheets. Aghion et al (2000), focuses on the optimal monetary policy in currency crises where …rms have both domestic and foreign debts. By using a two-period model they show that the optimal policy response to a currency crisis ...
... domestic …rms, which have foreign currency liabilities in their balance sheets. Aghion et al (2000), focuses on the optimal monetary policy in currency crises where …rms have both domestic and foreign debts. By using a two-period model they show that the optimal policy response to a currency crisis ...
Understanding Open Market Operations - Economic Research
... objectives would cause the depository institutions’ demand for reserves to outstrip the nonborrowed reserves target, putting upward pressures on the funds rate and other short-term rates. The rise in interest rates, in turn, would reduce ...
... objectives would cause the depository institutions’ demand for reserves to outstrip the nonborrowed reserves target, putting upward pressures on the funds rate and other short-term rates. The rise in interest rates, in turn, would reduce ...
Monetary policy, doubts and asset prices
... misspecification, because this raises the cost of entropy in the minimization problem of the evil agent implying a choice for a less distorted probability distribution. When κ goes to infinity the optimal level of entropy that minimizes (1) is zero. Therefore choices are made under rational expectat ...
... misspecification, because this raises the cost of entropy in the minimization problem of the evil agent implying a choice for a less distorted probability distribution. When κ goes to infinity the optimal level of entropy that minimizes (1) is zero. Therefore choices are made under rational expectat ...
The US Capital Account Surplus
... expected to be profitable. Because of their excess saving, these countries export some portion of their saving to other countries through net purchases of foreign assets—stocks, bonds, loans, FDI outflows, and reserves. In contrast, countries that are net capital importers have more domestic investm ...
... expected to be profitable. Because of their excess saving, these countries export some portion of their saving to other countries through net purchases of foreign assets—stocks, bonds, loans, FDI outflows, and reserves. In contrast, countries that are net capital importers have more domestic investm ...
modernized barter trade, bottom up projection under the
... and services. Basing on the fact that barter trade had many limitations compared to monetary system it was dropped as a medium of exchange for goods and services. However, barter trade supported the fact that goods and services would be exchanged for others. This made me give a product or service an ...
... and services. Basing on the fact that barter trade had many limitations compared to monetary system it was dropped as a medium of exchange for goods and services. However, barter trade supported the fact that goods and services would be exchanged for others. This made me give a product or service an ...
Assessing the Impact of Exchange Rate Risk on Banks Performance
... Prior to the monetary-approach emphasis of the 1970s, it was common to emphasize international trade flows as primary determinants of exchange rates. This was due, in part, to the fact that governments maintained tight restrictions on international flows of financial capital. The role of exchange ra ...
... Prior to the monetary-approach emphasis of the 1970s, it was common to emphasize international trade flows as primary determinants of exchange rates. This was due, in part, to the fact that governments maintained tight restrictions on international flows of financial capital. The role of exchange ra ...
NEMO: An Equation for the Canadian Dollar
... nominal exchange rate fully adjusted for national prices (or real exchange rate): real non-energy commodity prices and labour productivity differentials with the United States. This relationship is augmented by nominal variables to capture short-run dynamics: Canada-US short-term interest rate diffe ...
... nominal exchange rate fully adjusted for national prices (or real exchange rate): real non-energy commodity prices and labour productivity differentials with the United States. This relationship is augmented by nominal variables to capture short-run dynamics: Canada-US short-term interest rate diffe ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... Inflation has been widely described as an economic situation where increase in money supply is faster than the new production of new goods and services in the same economy. Inflation is going on when one needs more and more money to buy some representative bundle of goods and services, or a sustaine ...
... Inflation has been widely described as an economic situation where increase in money supply is faster than the new production of new goods and services in the same economy. Inflation is going on when one needs more and more money to buy some representative bundle of goods and services, or a sustaine ...
Financial Development in Sub-Saharan Africa
... financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobiletelephone-based systems ...
... financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobiletelephone-based systems ...
NBER WORKING REAL A SELECTIVE SURVEY Rudiger Dornbusch
... rate movements is less than satisfactory. Most models have lost their ability to explain what has happened, when exchange rates moved a lot, as in ...
... rate movements is less than satisfactory. Most models have lost their ability to explain what has happened, when exchange rates moved a lot, as in ...
Risk-Premia, Carry-Trade Dynamics, and Economic Value of
... that for UIP in a speculative sense α and β do not always have to correspond to their standardly hypothesized values but rather that deviations of one or both might occur as long as these do not allow for economically significant profits. By economic significance we mean that finding excess returns ...
... that for UIP in a speculative sense α and β do not always have to correspond to their standardly hypothesized values but rather that deviations of one or both might occur as long as these do not allow for economically significant profits. By economic significance we mean that finding excess returns ...
What Drives Exchange Rates? New Evidence from a Panel of U.S.
... dollar. However, over the same time, currencies of commodity-importing countries or currency areas, like the euro area and the United Kingdom, have also appreciated against the U.S. dollar. If currencies of commodity exporters appreciate, because their economies bene t from rising commodity prices, ...
... dollar. However, over the same time, currencies of commodity-importing countries or currency areas, like the euro area and the United Kingdom, have also appreciated against the U.S. dollar. If currencies of commodity exporters appreciate, because their economies bene t from rising commodity prices, ...
Capital Account Liberalization and Inequality
... instance, the average Gini coefficient for countries in different income groups shows a rise since the late-1980s in high-income and middle-income economies (Figure 1). In particular, a significant rise in inequality took place at the beginning of the 1990s. While inequality has kept on rising in hi ...
... instance, the average Gini coefficient for countries in different income groups shows a rise since the late-1980s in high-income and middle-income economies (Figure 1). In particular, a significant rise in inequality took place at the beginning of the 1990s. While inequality has kept on rising in hi ...
Lessons From the Argentine Case of Debt Accumulation, Crisis and
... This paper presents analyses of the Argentine foreign debt issue from various perspectives. Following this Introduction, in chapter 2 we analyze the processes that led to debt accumulation in the long run and the macroeconomic policies that contribute to explain it. Particular attention is put on th ...
... This paper presents analyses of the Argentine foreign debt issue from various perspectives. Following this Introduction, in chapter 2 we analyze the processes that led to debt accumulation in the long run and the macroeconomic policies that contribute to explain it. Particular attention is put on th ...
del06 mundaca 2762891 en
... in future transfer payments (i.e. bailouts). We believe that only when liquidity transfers are determined optimally (by welfare maximising agents), one can demonstrate formally the consequences of bailing out. Also, in contrast to previous work in the subject, the government is here concerned with ...
... in future transfer payments (i.e. bailouts). We believe that only when liquidity transfers are determined optimally (by welfare maximising agents), one can demonstrate formally the consequences of bailing out. Also, in contrast to previous work in the subject, the government is here concerned with ...
Liberal Mercantilism: Exchange Rate Regimes, Foreign Currency
... but tax in local currency must increase taxation, reduce primary fiscal outlays, or draw on reserves in order to meet their debt repayments. Private borrowers risk insolvency when their foreign denominated debts are inflated relative to domestic currency denominated assets. This notably includes fin ...
... but tax in local currency must increase taxation, reduce primary fiscal outlays, or draw on reserves in order to meet their debt repayments. Private borrowers risk insolvency when their foreign denominated debts are inflated relative to domestic currency denominated assets. This notably includes fin ...
Curriculum Vita - University of Nebraska Omaha
... McMillan) Applied Financial Economics, 23 issue 12 (2013): 1043-1055. 118. “An Unobserved Components Model that Yields Business and Medium-Run Cycles,” (With Jun Ma) Journal of Money Credit and Banking (October 2013): 1351-1373 (Impact Factor=1.104) 117. “Changes in the Oil Price-Inflation Pass-Thro ...
... McMillan) Applied Financial Economics, 23 issue 12 (2013): 1043-1055. 118. “An Unobserved Components Model that Yields Business and Medium-Run Cycles,” (With Jun Ma) Journal of Money Credit and Banking (October 2013): 1351-1373 (Impact Factor=1.104) 117. “Changes in the Oil Price-Inflation Pass-Thro ...
The New Zealand experience of short- and drivers and policy implications
... We look at realised real exchange rate volatility in New Zealand over the short term (periods up to one year) and the medium term (periods longer than one year) against the background of New Zealand’s macroeconomic experience over several decades. Realised short-term volatility has been higher than ...
... We look at realised real exchange rate volatility in New Zealand over the short term (periods up to one year) and the medium term (periods longer than one year) against the background of New Zealand’s macroeconomic experience over several decades. Realised short-term volatility has been higher than ...
International Economics: Feenstra/Taylor 2/e
... with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in the real exchange rate, so the correlation is not perfect (as seen in the years ...
... with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in the real exchange rate, so the correlation is not perfect (as seen in the 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.