Foreign exchange intervention and exchange rate volatility in Peru
... and foreign currency interest rates) and in international reserve accumulation (measured as the central bank’s net international position), these variables are also study independently. Since empirical evidence suggest high variance in the dynamics of these variables, their modeling considers the fe ...
... and foreign currency interest rates) and in international reserve accumulation (measured as the central bank’s net international position), these variables are also study independently. Since empirical evidence suggest high variance in the dynamics of these variables, their modeling considers the fe ...
Asymmetric Currency Exposure and Currency Risk Pricing
... Since the breakdown of the fixed exchange system in 1973, currency variability has been a subject of interest and concern. Because of the increasing globalization of product and financial markets, currency movements have become an important source of risk for a firm operating in an international env ...
... Since the breakdown of the fixed exchange system in 1973, currency variability has been a subject of interest and concern. Because of the increasing globalization of product and financial markets, currency movements have become an important source of risk for a firm operating in an international env ...
Capital Flows to Asia and Latin America, 1950-2007
... hypothesis). This hypothesis implies that much more capital would have flowed to East Asia and other high return regions, had international capital markets been more open. This view is standard among economists who have studied Asia, as this region adopted severe regulations and controls on internat ...
... hypothesis). This hypothesis implies that much more capital would have flowed to East Asia and other high return regions, had international capital markets been more open. This view is standard among economists who have studied Asia, as this region adopted severe regulations and controls on internat ...
NBER WORKING PAPER SERIES MONETARY SCIENCE, FISCAL ALCHEMY Eric M. Leeper
... the economy, discussing explicitly central banks’ objectives, communicating policy intentions to the public, developing operational rules that characterize good monetary policy, and deriving general principles about optimal monetary policy. In a surprising twist of fate, the practice of monetary pol ...
... the economy, discussing explicitly central banks’ objectives, communicating policy intentions to the public, developing operational rules that characterize good monetary policy, and deriving general principles about optimal monetary policy. In a surprising twist of fate, the practice of monetary pol ...
Bank-Based or Market-Based Financial Systems: Which
... they form long-run relationships with firms and do not reveal information immediately in public markets [Boot, Greenbaum, and Thakor 1993]. Proponents of the bank-based view also stress that liquid markets create a myopic investor climate [Bhide 1993]. In liquid markets, investors can inexpensively ...
... they form long-run relationships with firms and do not reveal information immediately in public markets [Boot, Greenbaum, and Thakor 1993]. Proponents of the bank-based view also stress that liquid markets create a myopic investor climate [Bhide 1993]. In liquid markets, investors can inexpensively ...
Long memory and nonlinear mean reversion in Japanese yen
... says little about one of the stylized facts of floating exchange rates, namely, that it is notably much harder to detect PPP reversion when particular currencies — such as the US dollar and the Japanese yen — are employed as the numeraire currency (Jorion and Sweeney, 1996; Koedijk et al., 1998; Pap ...
... says little about one of the stylized facts of floating exchange rates, namely, that it is notably much harder to detect PPP reversion when particular currencies — such as the US dollar and the Japanese yen — are employed as the numeraire currency (Jorion and Sweeney, 1996; Koedijk et al., 1998; Pap ...
Monetary Policy and the Determination of the Interest Rate and
... of domestic money market as in a closed economy. In this case, the exchange rate varies to maintain the balance of trade account and insulates the domestic economy from foreign disturbances. In contrast, in the Hundell-Fleming model, the exchange rate is the critical channel for the influence of mon ...
... of domestic money market as in a closed economy. In this case, the exchange rate varies to maintain the balance of trade account and insulates the domestic economy from foreign disturbances. In contrast, in the Hundell-Fleming model, the exchange rate is the critical channel for the influence of mon ...
T h e R e s e r v... b u s i n e s s c...
... earnest until late-1996. By then, evidence was emerging ...
... earnest until late-1996. By then, evidence was emerging ...
The Yen and Its East Asian Neighbors 1980
... must have moved with the yen and appreciated against the U.S. dollar to a greater extent, and its relationship with the yen may be regarded as “cooperative,” in that such behavior has tended to contribute to monetary cooperation in Asia by promoting greater exchange rate stability in the environment ...
... must have moved with the yen and appreciated against the U.S. dollar to a greater extent, and its relationship with the yen may be regarded as “cooperative,” in that such behavior has tended to contribute to monetary cooperation in Asia by promoting greater exchange rate stability in the environment ...
Contributed Session 45 - Financial Systems and Banking II
... As you may know, 2010 is declared as Year of Japan in Turkey. Taking this into consideration, we proposed to Professor Aoki that we could organize Special Year of Japan Sessions at the conference. He supported this proposition and led the way, with important help from Professor Katsuhito Iwai, in th ...
... As you may know, 2010 is declared as Year of Japan in Turkey. Taking this into consideration, we proposed to Professor Aoki that we could organize Special Year of Japan Sessions at the conference. He supported this proposition and led the way, with important help from Professor Katsuhito Iwai, in th ...
the Case of a Small Open Economy
... Despite the increased volumes of goods and factors which cross national borders, one must recognise that asymmetries exist in the speed, incentives and policies applied to these movements. In a few last decades, the barriers to international labour movements have become higher than those applied to ...
... Despite the increased volumes of goods and factors which cross national borders, one must recognise that asymmetries exist in the speed, incentives and policies applied to these movements. In a few last decades, the barriers to international labour movements have become higher than those applied to ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... If the real exchange rate is stationary, (limk→∞ Et qt+k = q̄) and N is large, then Et q̂t+N → 0. That is, the risk of level shifts in the real exchange rate become unimportant. With identical preferences and complete markets in a one-good world economy, consumption in one country should be perfectl ...
... If the real exchange rate is stationary, (limk→∞ Et qt+k = q̄) and N is large, then Et q̂t+N → 0. That is, the risk of level shifts in the real exchange rate become unimportant. With identical preferences and complete markets in a one-good world economy, consumption in one country should be perfectl ...
Monetary Institutions, Partisanship, and Inflation Targeting Bumba
... conservative inflation-fighters, as required by the classic model by Rogoff (1985). In short, if a fixed exchange rate is not a viable option, policymakers have an important decision to make about monetary policy rules, even if the central bank has a high degree of independence from political pressu ...
... conservative inflation-fighters, as required by the classic model by Rogoff (1985). In short, if a fixed exchange rate is not a viable option, policymakers have an important decision to make about monetary policy rules, even if the central bank has a high degree of independence from political pressu ...
Monetary and Macroprudential Policy Rules in a Model with House
... The model used in this paper has a number of modi…cations to the standard New Keynesian model (Galí, 2009) with regard to the characterization of households and …nancial markets, which create a special role for asset prices. Because housing wealth is generally more important for households than equi ...
... The model used in this paper has a number of modi…cations to the standard New Keynesian model (Galí, 2009) with regard to the characterization of households and …nancial markets, which create a special role for asset prices. Because housing wealth is generally more important for households than equi ...
The Purchasing Power Parity Debate
... The general idea behind purchasing power parity is that a unit of currency should be able to buy the same basket of goods in one country as the equivalent amount of foreign currency, at the going exchange rate, can buy in a foreign country, so that there is parity in the purchasing power of the unit ...
... The general idea behind purchasing power parity is that a unit of currency should be able to buy the same basket of goods in one country as the equivalent amount of foreign currency, at the going exchange rate, can buy in a foreign country, so that there is parity in the purchasing power of the unit ...
Exchange Rate Management within the Middle East
... countries been choosing the appropriate exchange rate arrangements? The question is complex. A great deal of research has been devoted to improving our understanding of how exchange rate regime choices are made, with two major branches of research emerging. The first branch has produced models of ex ...
... countries been choosing the appropriate exchange rate arrangements? The question is complex. A great deal of research has been devoted to improving our understanding of how exchange rate regime choices are made, with two major branches of research emerging. The first branch has produced models of ex ...
Capital Controls: Gates and Walls
... account restrictions could help achieve this external goal by enabling its government to manage its real exchange rate (Jeanne 2011). Episodic controls on capital inflows could, theoretically, enable monetary authorities to fight inflation by raising interest rates without simultaneously facing the ...
... account restrictions could help achieve this external goal by enabling its government to manage its real exchange rate (Jeanne 2011). Episodic controls on capital inflows could, theoretically, enable monetary authorities to fight inflation by raising interest rates without simultaneously facing the ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: American Economic Policy in the 1980s
... effectively resist a persistent rise in the rate of inflation, even if it is not the only influence on the general price level. Monetary policy is also far from the only important factor that influences the course of economic activity. The general slowdown in the rate of real economic growth since t ...
... effectively resist a persistent rise in the rate of inflation, even if it is not the only influence on the general price level. Monetary policy is also far from the only important factor that influences the course of economic activity. The general slowdown in the rate of real economic growth since t ...
chapter iii balance of payments – theoretical
... It helps in formulation of a country’s monetary, fiscal and trade policies. It helps in determining the influence of foreign trade & transactions on the level of national income of a country. It is useful to banks, firms, financial institutions and individuals which are directly or indirectly ...
... It helps in formulation of a country’s monetary, fiscal and trade policies. It helps in determining the influence of foreign trade & transactions on the level of national income of a country. It is useful to banks, firms, financial institutions and individuals which are directly or indirectly ...
Republic of Croatia: 2015 Article IV Consultation
... Directors welcomed Croatia’s ongoing fiscal consolidation under the European Commission’s Excessive Deficit Procedure. They encouraged the authorities to flesh out a comprehensive medium term plan of fiscal adjustment that focuses on growth friendly measures. In particular, Directors recommended a s ...
... Directors welcomed Croatia’s ongoing fiscal consolidation under the European Commission’s Excessive Deficit Procedure. They encouraged the authorities to flesh out a comprehensive medium term plan of fiscal adjustment that focuses on growth friendly measures. In particular, Directors recommended a s ...
This David Longworth Working Paper No. 535 1050 Massachusetts Avenue
... very sharp growth of external borrowing by Canadians in the 1974—76 period. Our attempt to explain this growth relies in part upon the existence of irrationality in the formation of long—run expectations in the bond market or exchange market or both. Finally, in Section 4 we turn to an analysis of t ...
... very sharp growth of external borrowing by Canadians in the 1974—76 period. Our attempt to explain this growth relies in part upon the existence of irrationality in the formation of long—run expectations in the bond market or exchange market or both. Finally, in Section 4 we turn to an analysis of t ...
How Do Financial Systems Affect Economic Cycles?
... structure proceeded at a differing pace, leading to greater divergence? Have these trends influenced the relative attractiveness of different countries as a destination for cross-border capital flows? • Does the responsiveness of household consumption and residential investment to changes in income ...
... structure proceeded at a differing pace, leading to greater divergence? Have these trends influenced the relative attractiveness of different countries as a destination for cross-border capital flows? • Does the responsiveness of household consumption and residential investment to changes in income ...
Spillover Effect of US Quantitative Easing From the
... realm has shown us that the world was smaller than we thought. In this respect, the financial crisis of 2008 started in the United States catalysed world media’s attention, as the crisis became global in a record time. Due to the leading position of the USA, the exceptional monetary measures taken b ...
... realm has shown us that the world was smaller than we thought. In this respect, the financial crisis of 2008 started in the United States catalysed world media’s attention, as the crisis became global in a record time. Due to the leading position of the USA, the exceptional monetary measures taken b ...
NBER WORKING PAPER SERIES DECOMPOSING THE EFFECTS OF FINANCIAL LIBERALIZATION: Romain Ranciere
... in the pattern of foreign inflows and it covers portfolio flows, bank flows and foreign direct investments. Appendix C presents the dates of liberalization for the countries in the sample. We chose to focus on financial crises that are characterized by the coincidence of a banking crisis and a curre ...
... in the pattern of foreign inflows and it covers portfolio flows, bank flows and foreign direct investments. Appendix C presents the dates of liberalization for the countries in the sample. We chose to focus on financial crises that are characterized by the coincidence of a banking crisis and a curre ...
What Drives Movements in Exchange Rates?
... the early 1990s (Amano and van Norden 1993). This equation was capable of tracking most of the major swings in the Can$/US$ exchange rate over the 1973–1990 estimation period. More importantly, its surprisingly good performance continued through most of the next 13 years. The Amano-van Norden equati ...
... the early 1990s (Amano and van Norden 1993). This equation was capable of tracking most of the major swings in the Can$/US$ exchange rate over the 1973–1990 estimation period. More importantly, its surprisingly good performance continued through most of the next 13 years. The Amano-van Norden equati ...
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.