Identifying Monetary Policy in Open Economies
... shocks with innovations in the ratio of non-borrowed reserves to total reserves in a recursive VAR model, Eichenbaum and Evans (1995) reported a persistent appreciation of the US dollar for a prolonged period of time. Using the same policy instrument in a recursive VAR approach for the US, Strongin ...
... shocks with innovations in the ratio of non-borrowed reserves to total reserves in a recursive VAR model, Eichenbaum and Evans (1995) reported a persistent appreciation of the US dollar for a prolonged period of time. Using the same policy instrument in a recursive VAR approach for the US, Strongin ...
Increasing US real interest rates
... This period of time can be called “the century of gold”. After rising dramatically and continuously in a long time, the price had the trend of reducing (from October 2011 to July 2012). However, this trend could not remain any longer as from the end of August 2012, gold price started to rise sharpl ...
... This period of time can be called “the century of gold”. After rising dramatically and continuously in a long time, the price had the trend of reducing (from October 2011 to July 2012). However, this trend could not remain any longer as from the end of August 2012, gold price started to rise sharpl ...
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... Mexico and East Asia, and once the crises erupted almost every observer was surprised by their intensity.1 This inability to predict major financial collapses is as an embarrassment of sorts by the economics profession. As a result, during the last few years macroeconomists in academia, in the multi ...
... Mexico and East Asia, and once the crises erupted almost every observer was surprised by their intensity.1 This inability to predict major financial collapses is as an embarrassment of sorts by the economics profession. As a result, during the last few years macroeconomists in academia, in the multi ...
DOES THE CURRENT ACCOUNT MATTER?* By Sebastian Edwards University of California, Los Angeles
... Mexico and East Asia, and once the crises erupted almost every observer was surprised by their intensity.1 This inability to predict major financial collapses is as an embarrassment of sorts by the economics profession. As a result, during the last few years macroeconomists in academia, in the multi ...
... Mexico and East Asia, and once the crises erupted almost every observer was surprised by their intensity.1 This inability to predict major financial collapses is as an embarrassment of sorts by the economics profession. As a result, during the last few years macroeconomists in academia, in the multi ...
econometric testing of purchasing power parity in less developed
... where all countries were required to sustain some type of currency peg. Therefore, there is an enormous literature on the validity of the PPP theory in industrialized countries. However, the developing countries have maintained the fixed exchange rate regime after the collapse of Bretton Woods syste ...
... where all countries were required to sustain some type of currency peg. Therefore, there is an enormous literature on the validity of the PPP theory in industrialized countries. However, the developing countries have maintained the fixed exchange rate regime after the collapse of Bretton Woods syste ...
John Maynard Keynes
... its economic system on capitalist principles. During this “golden age”, these nations experienced no significant unemployment problems. Moreover, the income and wealth of these nations grew more rapidly than they ever had in the history of mankind. Existing inequalities were reduced, and almost all ...
... its economic system on capitalist principles. During this “golden age”, these nations experienced no significant unemployment problems. Moreover, the income and wealth of these nations grew more rapidly than they ever had in the history of mankind. Existing inequalities were reduced, and almost all ...
John Maynard Keynes
... its economic system on capitalist principles. During this “golden age”, these nations experienced no significant unemployment problems. Moreover, the income and wealth of these nations grew more rapidly than they ever had in the history of mankind. Existing inequalities were reduced, and almost all ...
... its economic system on capitalist principles. During this “golden age”, these nations experienced no significant unemployment problems. Moreover, the income and wealth of these nations grew more rapidly than they ever had in the history of mankind. Existing inequalities were reduced, and almost all ...
EmErging CurrEnCy - Societe Generale
... Société Générale holds at your disposal a detailed presentation of each product it is able to offer to its clients. Société Générale´s provision of liquidity will only be available under normal market conditions. This document is confidential and may be neither communicated to any third party (with ...
... Société Générale holds at your disposal a detailed presentation of each product it is able to offer to its clients. Société Générale´s provision of liquidity will only be available under normal market conditions. This document is confidential and may be neither communicated to any third party (with ...
IMF-Supported Macroeconomic Policies and the World Recession: A
... binding foreign exchange constraint. That is, if they stimulate their economies during a downturn they run the risk of expanding current account deficits and therefore running low on foreign exchange. Countries with hard currencies (the United States, Eurozone countries, Japan) do not face the same ...
... binding foreign exchange constraint. That is, if they stimulate their economies during a downturn they run the risk of expanding current account deficits and therefore running low on foreign exchange. Countries with hard currencies (the United States, Eurozone countries, Japan) do not face the same ...
Foreign Aid, Government Policies and Economic Growth
... very large, but most countries are too small to have any influence on the international price level. However, additional spending on non-traded goods and services is likely to lead to price increases (inflation). Nevertheless there are various ways to avoid price increases when foreign increase real ...
... very large, but most countries are too small to have any influence on the international price level. However, additional spending on non-traded goods and services is likely to lead to price increases (inflation). Nevertheless there are various ways to avoid price increases when foreign increase real ...
Measuring and explaining the volatility of capital flows towards
... Over the last decades, several emerging and developing economies have engaged in a far-reaching process of capital account liberalization. To a large extent, this process has been aimed at attracting foreign capital flows to spur economic development. However, due to a combination of policy failures ...
... Over the last decades, several emerging and developing economies have engaged in a far-reaching process of capital account liberalization. To a large extent, this process has been aimed at attracting foreign capital flows to spur economic development. However, due to a combination of policy failures ...
Risk Sharing through Remittances: Evidence from
... construction of the variables and the data sources, while the estimation findings are discussed in detail in Section 4. Finally, Section 5 concludes this paper. ...
... construction of the variables and the data sources, while the estimation findings are discussed in detail in Section 4. Finally, Section 5 concludes this paper. ...
2014 Pilot External Sector Report: Individual Economy
... sections would note the vulnerabilities arising from international liabilities and the potential policy response section of the overall assessment would focus on the need to rein in the fiscal deficit and limit asset price excesses. For Country B, however, if there were no domestic policy distortion ...
... sections would note the vulnerabilities arising from international liabilities and the potential policy response section of the overall assessment would focus on the need to rein in the fiscal deficit and limit asset price excesses. For Country B, however, if there were no domestic policy distortion ...
Keynes, Uncertainty and the Global Economy - Post
... prices at a lower level. Victoria Chick approaches microfoundations for Keynes through Kalecki’s critique of Keynes’s theory of investment. Her purpose is to expose the distinction between Walrasian microfoundations which are formally consistent with macroeonomics, via the device of the auctioneer, ...
... prices at a lower level. Victoria Chick approaches microfoundations for Keynes through Kalecki’s critique of Keynes’s theory of investment. Her purpose is to expose the distinction between Walrasian microfoundations which are formally consistent with macroeonomics, via the device of the auctioneer, ...
Thirty Years of Current Account Imbalances, Current Account
... intertemporal model traces reality quite closely. In this setting the behavior of countries’ net foreign assets play an important role in explaining current account behavior. In particular, and as pointed out by Lane and Milesi-Ferretti (2002, 2003), changes in foreign asset valuation stemming from ...
... intertemporal model traces reality quite closely. In this setting the behavior of countries’ net foreign assets play an important role in explaining current account behavior. In particular, and as pointed out by Lane and Milesi-Ferretti (2002, 2003), changes in foreign asset valuation stemming from ...
EM Currency Handbook 2014
... Flows: What next? We expect EM currencies to face another difficult year, but we find the hurdles ahead to be lower than in 2013. US rates will likely remain a major risk factor into the New Year, but forward rates have already moved to Deutsche Bank’s 10Y yield forecast (3.25%). Moreover, EMFX is s ...
... Flows: What next? We expect EM currencies to face another difficult year, but we find the hurdles ahead to be lower than in 2013. US rates will likely remain a major risk factor into the New Year, but forward rates have already moved to Deutsche Bank’s 10Y yield forecast (3.25%). Moreover, EMFX is s ...
stop-loss orders and price cascades in currency markets
... The analysis first shows that exchange rates tend to move rapidly after reaching levels where stop-loss orders cluster. 6 This indicates that a trend can be prolonged by the execution of some stop-loss orders triggered by that trend, consistent with the paper’s main hypothesis. However, this result ...
... The analysis first shows that exchange rates tend to move rapidly after reaching levels where stop-loss orders cluster. 6 This indicates that a trend can be prolonged by the execution of some stop-loss orders triggered by that trend, consistent with the paper’s main hypothesis. However, this result ...
The Current Account and Macroeconomic Adjustment in the 1970s
... these issues would suggest."2 One aim of this paper is to evaluate these contrasting positions. Although there is some evidence of links between current account deficits and oil import dependence in cross-country data, these connections tend to hold only in the short run, and they disappear a few ye ...
... these issues would suggest."2 One aim of this paper is to evaluate these contrasting positions. Although there is some evidence of links between current account deficits and oil import dependence in cross-country data, these connections tend to hold only in the short run, and they disappear a few ye ...
Stop-loss orders and price cascades in currency markets
... The analysis first shows that exchange rates tend to move rapidly after reaching levels where stop-loss orders cluster. 6 This indicates that a trend can be prolonged by the execution of some stop-loss orders triggered by that trend, consistent with the paper’s main hypothesis. However, this result ...
... The analysis first shows that exchange rates tend to move rapidly after reaching levels where stop-loss orders cluster. 6 This indicates that a trend can be prolonged by the execution of some stop-loss orders triggered by that trend, consistent with the paper’s main hypothesis. However, this result ...
CHAPTER VI CURRENCY RISK MANAGEMENT: FUTURES AND
... could otherwise be held in the form of an interest-bearing asset. In general, however, a part of the initial margin can be posted in the form of interest-bearing assets, such as Treasury bills. This allows market participants to reduce the opportunity costs associated with margin requirements. A fut ...
... could otherwise be held in the form of an interest-bearing asset. In general, however, a part of the initial margin can be posted in the form of interest-bearing assets, such as Treasury bills. This allows market participants to reduce the opportunity costs associated with margin requirements. A fut ...
The Behavior of US Interest Rate Swap Spreads in Global Financial
... proxies for differential probability of counterparty default are statistically significant determinants of the difference between OTC swap rates and swap rates derived from Eurodollar futures prices for maturities of three and four years. Fehle (2003) analyzes 2- year and 5-year swap spreads in 7 co ...
... proxies for differential probability of counterparty default are statistically significant determinants of the difference between OTC swap rates and swap rates derived from Eurodollar futures prices for maturities of three and four years. Fehle (2003) analyzes 2- year and 5-year swap spreads in 7 co ...
digital globalization: the new era of global flows
... commerce, information, searches, video, communication, and intracompany traffic continue to surge. Digital platforms change the economics of doing business across borders, bringing down the cost of international interactions and transactions. They create markets and user communities with global s ...
... commerce, information, searches, video, communication, and intracompany traffic continue to surge. Digital platforms change the economics of doing business across borders, bringing down the cost of international interactions and transactions. They create markets and user communities with global s ...
Capital Imports Composition, Complementarities, and the Skill
... facilitating R&D spillovers and technology transfers. None of these studies address changes in relative demand for skill and distributional consequences. Burstein, Cravino, and Vogel (2013) and Parro (2013) assume that aggregate capital is complementary to skill, but do not test whether this is inde ...
... facilitating R&D spillovers and technology transfers. None of these studies address changes in relative demand for skill and distributional consequences. Burstein, Cravino, and Vogel (2013) and Parro (2013) assume that aggregate capital is complementary to skill, but do not test whether this is inde ...
This PDF is a selection from an out-of-print volume from the... of Economic Research Volume Title: Exchange Rate Theory and Practice
... Experience with floating exchange rates between the United States dollar and other major currencies (the British pound, the German mark, the French franc, the Swiss franc, and the Japanese yen) during the 1970s has revealed five general characteristics of the behavior of exchange rates and related v ...
... Experience with floating exchange rates between the United States dollar and other major currencies (the British pound, the German mark, the French franc, the Swiss franc, and the Japanese yen) during the 1970s has revealed five general characteristics of the behavior of exchange rates and related v ...
NBER WORKING PAPER SERIES THIRTY YEARS OF CURRENT ACCOUNT IMBALANCES,
... distributed although the more slowly it happens, the better. But, clearly, if the euro has to bear the lion's share of the adjustment in the dollar, that is going to create a lot more difficulties than if it is more evenly distributed; than if the Asian currencies--not just China but all the Asian c ...
... distributed although the more slowly it happens, the better. But, clearly, if the euro has to bear the lion's share of the adjustment in the dollar, that is going to create a lot more difficulties than if it is more evenly distributed; than if the Asian currencies--not just China but all the Asian c ...
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.