Financial Development and Economic Growth: Views and
... savers receive shocks after choosing between two investments: an illiquid, highreturn project and a liquid, low-return project. Those receiving shocks want access to their savings before the illiquid project produces. This risk creates incentives for investing in the liquid, lowreturn projects. The ...
... savers receive shocks after choosing between two investments: an illiquid, highreturn project and a liquid, low-return project. Those receiving shocks want access to their savings before the illiquid project produces. This risk creates incentives for investing in the liquid, lowreturn projects. The ...
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 ...
Losing Our Marbles in the New Century? Perspective
... Of course, this kind of scenario can cause umbrage among the creditors: those nations in the rest of the world who run persistent net trade surpluses are “winners” in a mercantilist sense, but gain nothing from this situation as they give back, in the form of net investment income flows, their “marbl ...
... Of course, this kind of scenario can cause umbrage among the creditors: those nations in the rest of the world who run persistent net trade surpluses are “winners” in a mercantilist sense, but gain nothing from this situation as they give back, in the form of net investment income flows, their “marbl ...
Integrating Macroeconomic and Financial Sector Analyses
... During the 1990s, in the aftermath of the Mexican and East Asian crises, the IMF developed substantial capacity on financial sector issues, integrating financial sector and macroeconomic analyses into a new macro-prudential framework to provide the basis for strengthening the Fund’s role in surveill ...
... During the 1990s, in the aftermath of the Mexican and East Asian crises, the IMF developed substantial capacity on financial sector issues, integrating financial sector and macroeconomic analyses into a new macro-prudential framework to provide the basis for strengthening the Fund’s role in surveill ...
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... under perfect competition that produces a single product, which contains no imported input, for sale in export markets. The firm is paid only in foreign currency; hence, the proceeds of its exports in domestic currency depend on the (unpredictable) level of the exchange rate. In the model, the firm ...
... under perfect competition that produces a single product, which contains no imported input, for sale in export markets. The firm is paid only in foreign currency; hence, the proceeds of its exports in domestic currency depend on the (unpredictable) level of the exchange rate. In the model, the firm ...
Multinational Finance
... 1946 The Bretton Woods Conference - US dollar convertible into gold at $35/oz; other currencies are pegged to the dollar - Created the IMF and the World Bank ...
... 1946 The Bretton Woods Conference - US dollar convertible into gold at $35/oz; other currencies are pegged to the dollar - Created the IMF and the World Bank ...
devaluation and its impact on ethiopian economy
... There are different reasons for the need of the existence of trade between different nations to mention some of them, the existence of comparative advantage over some products for each of the nations, differences in specialization, the existence of division of labor, different allocation of natural ...
... There are different reasons for the need of the existence of trade between different nations to mention some of them, the existence of comparative advantage over some products for each of the nations, differences in specialization, the existence of division of labor, different allocation of natural ...
general assessment of the macroeconomic situation
... number of countries. The forthcoming UK referendum on EU membership has already raised uncertainty, and an exit would depress growth in Europe and elsewhere substantially. In China, the risk of an abrupt near-term growth decline has eased as policy stimulus takes effect, but the choices will likely ...
... number of countries. The forthcoming UK referendum on EU membership has already raised uncertainty, and an exit would depress growth in Europe and elsewhere substantially. In China, the risk of an abrupt near-term growth decline has eased as policy stimulus takes effect, but the choices will likely ...
UK economic policy in the 1960s and 1970s and the challenge to
... monetary policy relegated to the back-burner. ...
... monetary policy relegated to the back-burner. ...
interest rate risk in turkish financial markets across
... Risk is divided into two as systemic and systematic risks. All securities in financial markets are subject to systematic risks, and systematic risks arise for example when fluctuations within political and economic conditions affect the behavior of assets in financial markets. As a result systematic ...
... Risk is divided into two as systemic and systematic risks. All securities in financial markets are subject to systematic risks, and systematic risks arise for example when fluctuations within political and economic conditions affect the behavior of assets in financial markets. As a result systematic ...
The Impact of the Financial Crisis on Emerging Asia
... growth in the emerging and developing countries went from 6.6 percent in April 2008 to just 1.5 percent this July. In October 2008, the emerging‐market bond spread hit 850 points – almost six times its pre‐crisis level in June 2007. Industrial production and exports in emerging economies have ...
... growth in the emerging and developing countries went from 6.6 percent in April 2008 to just 1.5 percent this July. In October 2008, the emerging‐market bond spread hit 850 points – almost six times its pre‐crisis level in June 2007. Industrial production and exports in emerging economies have ...
Management of Transaction Exposure
... Transaction exposure can also be hedged by lending and borrowing in the domestic and foreign money markets—that is, money market hedge. Generally speaking, the firm may borrow (lend) in foreign currency to hedge its foreign currency receivables (payables), thereby matching its assets and liabilities ...
... Transaction exposure can also be hedged by lending and borrowing in the domestic and foreign money markets—that is, money market hedge. Generally speaking, the firm may borrow (lend) in foreign currency to hedge its foreign currency receivables (payables), thereby matching its assets and liabilities ...
IMF World Economic Outlook, May 1998-
... At times elements of currency, banking, and debt crises may be present simultaneously, as in the recent east Asian crisis and in the 1994–95 Mexican crisis. The 1992–93 ERM crises were essentially currency crises, although the Nordic countries that experienced currency crises also had domestic banki ...
... At times elements of currency, banking, and debt crises may be present simultaneously, as in the recent east Asian crisis and in the 1994–95 Mexican crisis. The 1992–93 ERM crises were essentially currency crises, although the Nordic countries that experienced currency crises also had domestic banki ...
Optimal Monetary and Prudential Policies
... International Economic Policy and Reform (2011)] have summarized alternative views about the potential substitutability or complementarity of these policies and the need for policy coordination. There is a general presumption that both policies will be counter-cyclical most of the time, as reflected ...
... International Economic Policy and Reform (2011)] have summarized alternative views about the potential substitutability or complementarity of these policies and the need for policy coordination. There is a general presumption that both policies will be counter-cyclical most of the time, as reflected ...
The Zero Bound in an Open Economy: A Foolproof Way of Escaping from
... Stockholm University; CEPR and NBER (Internet home page: www.iies.su.se/leosven/) A previous version of this paper was presented at Bank of Japan’s Ninth International Conference, “The Role of Monetary Policy under Low Inflation: Deflationary Shocks and Their Policy Responses,” held in Tokyo, July 3 ...
... Stockholm University; CEPR and NBER (Internet home page: www.iies.su.se/leosven/) A previous version of this paper was presented at Bank of Japan’s Ninth International Conference, “The Role of Monetary Policy under Low Inflation: Deflationary Shocks and Their Policy Responses,” held in Tokyo, July 3 ...
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... the extent to which monetary shocks can account for the observed volatility and persistence of real exchange rates. We show that if risk aversion is high and preferences are separable in leisure, then the model can account for the volatility of real exchange rates. With pricestickiness of one year, ...
... the extent to which monetary shocks can account for the observed volatility and persistence of real exchange rates. We show that if risk aversion is high and preferences are separable in leisure, then the model can account for the volatility of real exchange rates. With pricestickiness of one year, ...
Hyder, Zulfiqar and Adil Mahboob, 2006, “Equilibrium Real Effective
... Mechanism (NERM) on 22nd July, 1998, replacing the managed-floatingexchange-rate system. The underlying philosophy of the dual exchange rate was to pass on the advantages of devaluation to exporters, expatriate workers wishing to remit money to Pakistan and to compress non-essential imports. It was ...
... Mechanism (NERM) on 22nd July, 1998, replacing the managed-floatingexchange-rate system. The underlying philosophy of the dual exchange rate was to pass on the advantages of devaluation to exporters, expatriate workers wishing to remit money to Pakistan and to compress non-essential imports. It was ...
Money Overhang, Credit Overhang and Financial Imbalances in the
... adjustment mechanisms than any other country or region in the world. The absence of an adjustable nominal exchange rate – an advantage when it comes to facilitating financial integration – may become a liability when divergent developments require significant adjustments. Alternative adjustment chan ...
... adjustment mechanisms than any other country or region in the world. The absence of an adjustable nominal exchange rate – an advantage when it comes to facilitating financial integration – may become a liability when divergent developments require significant adjustments. Alternative adjustment chan ...
Price Levels and the Exchange Rate in the Long Run
... comes by its name. According to the statement of PPP in equation (16-1), the dollar price of a euro is simply the dollar price of U.S. output divided by the euro price of European output. These two price levels, in turn, are determined completely by the supply and demand for each currency area’s mon ...
... comes by its name. According to the statement of PPP in equation (16-1), the dollar price of a euro is simply the dollar price of U.S. output divided by the euro price of European output. These two price levels, in turn, are determined completely by the supply and demand for each currency area’s mon ...
An Economic Analysis of the Effects of Exchange Rate Regimes on
... For over a decade, China has fixed the nominal exchange rate between the dollar and the Yuan at a value that is widely believed to be lower than it otherwise would be. The intention of this policy is to give Chinese producers a competitive advantage over producers in other countries, including the U ...
... For over a decade, China has fixed the nominal exchange rate between the dollar and the Yuan at a value that is widely believed to be lower than it otherwise would be. The intention of this policy is to give Chinese producers a competitive advantage over producers in other countries, including the U ...
Form 19b-4 - NASDAQTrader.com
... pound and Euro, the modified spot rate will be calculated by the Exchange, based on spot prices (bids and asks) it receives from Thomson Financial LLC ("Thomson"). Like the British pound and the Euro, for the Australian dollar the Exchange will determine the midpoint between the bid and the ask and ...
... pound and Euro, the modified spot rate will be calculated by the Exchange, based on spot prices (bids and asks) it receives from Thomson Financial LLC ("Thomson"). Like the British pound and the Euro, for the Australian dollar the Exchange will determine the midpoint between the bid and the ask and ...
Financial Development and International Trade
... Zambrano for their helpful feedback and suggestions. ...
... Zambrano for their helpful feedback and suggestions. ...
- Department of Economics
... reported by the authorities is the one that provides a statistical equivalent to their complex rules for determining sustainable income.8 They then apply this filter to revenues from other countries to compute their ‘structural balances’. The results for South Africa are presented in Figure 4, which ...
... reported by the authorities is the one that provides a statistical equivalent to their complex rules for determining sustainable income.8 They then apply this filter to revenues from other countries to compute their ‘structural balances’. The results for South Africa are presented in Figure 4, which ...
Bade_Parkin_Macro_Lecture_CH20
... Net taxes minus government expenditure on goods and services. Table 20.2 on the next slide shows what determines net exports. ...
... Net taxes minus government expenditure on goods and services. Table 20.2 on the next slide shows what determines net exports. ...
What Determines Government Spending Multipliers?
... exploit variation in economic conditions across space and time to gauge their impact on fiscal policy transmission. In a first step, we estimate a fiscal policy rule that is meant to describe the statistical process of government spending and provide estimates of spending shocks. The rule we conside ...
... exploit variation in economic conditions across space and time to gauge their impact on fiscal policy transmission. In a first step, we estimate a fiscal policy rule that is meant to describe the statistical process of government spending and provide estimates of spending shocks. The rule we conside ...
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.