Risk-Premia, Carry-Trade Dynamics, and Speculative
... Tests of foreign exchange market efficiency are typically based on an assessment of uncovered interest rate parity (UIP). UIP postulates that the expected change in a bilateral exchange rate is equal to the forward premium, i.e., given that covered interest rate parity holds, it compensates for the ...
... Tests of foreign exchange market efficiency are typically based on an assessment of uncovered interest rate parity (UIP). UIP postulates that the expected change in a bilateral exchange rate is equal to the forward premium, i.e., given that covered interest rate parity holds, it compensates for the ...
Money In Modern Macro Models: A Review of the Arguments
... considering money properly. As a further step, we ask about the role of financial intermediaries in this respect. In dealing with these issues, we distinguish between narrow and broad monetary aggregates. We conclude that for theoretical as well as practical reasons a periodic review of the definiti ...
... considering money properly. As a further step, we ask about the role of financial intermediaries in this respect. In dealing with these issues, we distinguish between narrow and broad monetary aggregates. We conclude that for theoretical as well as practical reasons a periodic review of the definiti ...
PDF
... There has been a growing literature studying the empirical link between terms-oftrade and the real effective exchange rate (REER hereafter) of commodity and oilexporting countries. In general, a positive link is found between those two variables. The currencies that follow this pattern are called ei ...
... There has been a growing literature studying the empirical link between terms-oftrade and the real effective exchange rate (REER hereafter) of commodity and oilexporting countries. In general, a positive link is found between those two variables. The currencies that follow this pattern are called ei ...
Energy prices and the real exchange rate of commodity
... There has been a growing literature studying the empirical link between terms-oftrade and the real effective exchange rate (REER hereafter) of commodity and oilexporting countries. In general, a positive link is found between those two variables. The currencies that follow this pattern are called ei ...
... There has been a growing literature studying the empirical link between terms-oftrade and the real effective exchange rate (REER hereafter) of commodity and oilexporting countries. In general, a positive link is found between those two variables. The currencies that follow this pattern are called ei ...
Dreher ge08 6483485 en
... outcomes.6 Whether the IMF has an effect on the risk of currency crisis should thus also be a function of compliance. When conditions are designed to redress macroeconomic imbalances, more compliant countries should be less likely to experience crisis. A third channel by which the IMF can affect the ...
... outcomes.6 Whether the IMF has an effect on the risk of currency crisis should thus also be a function of compliance. When conditions are designed to redress macroeconomic imbalances, more compliant countries should be less likely to experience crisis. A third channel by which the IMF can affect the ...
Capital Flows and Destabilizing Policy in Latin America
... use ordinary least squares for their estimation. 3 However pro-cyclical behavior implies that fiscal and monetary policies also affect economic growth, creating the problem of endogenous regressors. While the literature has identified pro-cyclical policy, there exists the possibility endogenous regr ...
... use ordinary least squares for their estimation. 3 However pro-cyclical behavior implies that fiscal and monetary policies also affect economic growth, creating the problem of endogenous regressors. While the literature has identified pro-cyclical policy, there exists the possibility endogenous regr ...
Database of Global Economic Indicators
... the methodology described in this document, to explain what the indicators capture and what these aggregates can tell us about the global outlook. The work we’ve done offers a new look at global economic developments and the global outlook (through Global Economic Conditions web updates and charts, ...
... the methodology described in this document, to explain what the indicators capture and what these aggregates can tell us about the global outlook. The work we’ve done offers a new look at global economic developments and the global outlook (through Global Economic Conditions web updates and charts, ...
Zimbabwe: Challenges and Policy Options after Hyperinflation African Department 10/3
... exchange trading takes place in U.S. dollars, the payments systems operate in U.S. dollars, and the banking system and the Reserve Bank of Zimbabwe (RBZ) maintain accounting in U.S. dollars. In cash transactions, the U.S. dollar is the currency of choice, but the rand is prevalent in the South of th ...
... exchange trading takes place in U.S. dollars, the payments systems operate in U.S. dollars, and the banking system and the Reserve Bank of Zimbabwe (RBZ) maintain accounting in U.S. dollars. In cash transactions, the U.S. dollar is the currency of choice, but the rand is prevalent in the South of th ...
World Economic Situation and Prospects 2016
... Finance for sustainable development Addis Ababa Action Agenda establishes a financing framework for the 2030 Agenda for Sustainable Development A primary role of the international financial system is to channel savings to productive uses and investment in order to deliver sustainable economic growth ...
... Finance for sustainable development Addis Ababa Action Agenda establishes a financing framework for the 2030 Agenda for Sustainable Development A primary role of the international financial system is to channel savings to productive uses and investment in order to deliver sustainable economic growth ...
NBER WORKING PAPER SERIES FISCAL VERSUS NET CAPITAL FLOW CONCERNS
... outflows to manage the concerns posed by surging NKI for fear of losing these revenues, but may find it easier to liberalize when there are no revenues to be lost. In fact, EMEs did liberalize outflow policy substantially in the 2000's. Most of the outflow liberalizations took place in the years of ...
... outflows to manage the concerns posed by surging NKI for fear of losing these revenues, but may find it easier to liberalize when there are no revenues to be lost. In fact, EMEs did liberalize outflow policy substantially in the 2000's. Most of the outflow liberalizations took place in the years of ...
How the Economic Machine Works – Leveragings and
... As mentioned, the previously outlined economic players buy and sell both 1) goods and services and 2) financial assets, and they can pay for them with either 1) money or 2) credit. In a capitalist system, this exchange takes place through free choice – i.e., there are “free markets” in which buyers ...
... As mentioned, the previously outlined economic players buy and sell both 1) goods and services and 2) financial assets, and they can pay for them with either 1) money or 2) credit. In a capitalist system, this exchange takes place through free choice – i.e., there are “free markets” in which buyers ...
2016 World Economic Situation
... Prospects for global macroeconomic development The world economy stumbled in 2015 The world gross product is projected to grow by a mere 2.4 per cent in 2015, a significant downward revision from the 2.8 per cent forecast in the World Economic Situation and Prospects as of mid-2015. More than seven ...
... Prospects for global macroeconomic development The world economy stumbled in 2015 The world gross product is projected to grow by a mere 2.4 per cent in 2015, a significant downward revision from the 2.8 per cent forecast in the World Economic Situation and Prospects as of mid-2015. More than seven ...
Contract Intensive Money - Munich Personal RePEc Archive
... III. Testing the Theory: Contract-Intensive Money In testing our argument that secure property and contract rights are crucial for productivity and growth, we take advantage of a fortuitous circumstance, that enforcement problems underlying the use of different forms of money and credit mirror enfor ...
... III. Testing the Theory: Contract-Intensive Money In testing our argument that secure property and contract rights are crucial for productivity and growth, we take advantage of a fortuitous circumstance, that enforcement problems underlying the use of different forms of money and credit mirror enfor ...
Differing views on monetary policy - Bank for International Settlements
... policy discussion. As far as I understand it, these objections are that monetary policy should have more objectives than stabilising inflation and unemployment or other real-economy objectives than stabilising unemployment. The objectives of price stability and the highest sustainable employment – f ...
... policy discussion. As far as I understand it, these objections are that monetary policy should have more objectives than stabilising inflation and unemployment or other real-economy objectives than stabilising unemployment. The objectives of price stability and the highest sustainable employment – f ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... represented by a set of convex indifference curves. Given his wealth constraint ab, he will choose wealth-mix E. The interest rate facing him, given by the reciprocal of the slope of ab, is parametric. While each individual can choose his desired wealth-mix, given his wealth restraint, all individua ...
... represented by a set of convex indifference curves. Given his wealth constraint ab, he will choose wealth-mix E. The interest rate facing him, given by the reciprocal of the slope of ab, is parametric. While each individual can choose his desired wealth-mix, given his wealth restraint, all individua ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT FACT AND FICTION David Backus Espen Henriksen
... In many respects, economic life in the United States has never been better. Per capita GDP reached an all-time high of $39,921 in 2004. Real GDP grew by 3.6% over the last year, modest by US standards but faster than Canada (3.0%), France (2.4%), Germany (1.5%), Italy (0.8%), Japan (0.8%), and most ...
... In many respects, economic life in the United States has never been better. Per capita GDP reached an all-time high of $39,921 in 2004. Real GDP grew by 3.6% over the last year, modest by US standards but faster than Canada (3.0%), France (2.4%), Germany (1.5%), Italy (0.8%), Japan (0.8%), and most ...
Factors Determining a `Safe` Level of Public Debt
... question of the extent to which external sources of borrowing create an additional risk factor. The above questions has become particularly important after beginning of the global financial and economic crisis in 2007–2008 and its subsequent European phase, which started in early 2010 with the de fa ...
... question of the extent to which external sources of borrowing create an additional risk factor. The above questions has become particularly important after beginning of the global financial and economic crisis in 2007–2008 and its subsequent European phase, which started in early 2010 with the de fa ...
The International Monetary Fund and Current Account
... It must be said from the outset that this policy has been interpreted to apply to any system of multiple rates where an official action is involved, even if they are not giving rise to differences of more than 2 percent at the time they are introduced if there is no mechanism in place that will prev ...
... It must be said from the outset that this policy has been interpreted to apply to any system of multiple rates where an official action is involved, even if they are not giving rise to differences of more than 2 percent at the time they are introduced if there is no mechanism in place that will prev ...
Output and Exchange Rate in the Short Run
... short run due to increased aggregate demand, thereby reducing the expected return on foreign currency deposits, making the domestic currency appreciate. ...
... short run due to increased aggregate demand, thereby reducing the expected return on foreign currency deposits, making the domestic currency appreciate. ...
Introducción - Banco de España
... rate as the price of an asset which, among other things, depends on money supply's expected path. So long as interventions, even sterilized ones, influence market expectations on the future trend of the quantity of money or interest rates, then foreign exchange rate levels will change during the cur ...
... rate as the price of an asset which, among other things, depends on money supply's expected path. So long as interventions, even sterilized ones, influence market expectations on the future trend of the quantity of money or interest rates, then foreign exchange rate levels will change during the cur ...
NBER WORKING PAPER SERIES CAPITAL FLOWS, INVESTMENT, AND EXCHANGE RATES Alan C. Stockman
... rates, the relations between capital flows and interest rates, the Harberger— Laursen—Metzler effect of changes in the terms of trade on saving and capital ...
... rates, the relations between capital flows and interest rates, the Harberger— Laursen—Metzler effect of changes in the terms of trade on saving and capital ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL MOBILITY AND IMPERFECT INTEGRATION OF FINANCIAL
... Conventional wisdom in the field of international finance holds that the U.S. economy has become so open financiallly as to be characterized by perfect capital mobility: a highly elastic supply of foreign capital prevents the domestic rate of return from rising significantly above the world rate of ...
... Conventional wisdom in the field of international finance holds that the U.S. economy has become so open financiallly as to be characterized by perfect capital mobility: a highly elastic supply of foreign capital prevents the domestic rate of return from rising significantly above the world rate of ...
Is Mercosur an Optimal Currency Area? A shock correlation
... The size of shocks is, however, historically much larger in Mercosur than in the EU or NAFTA, and the exchange rate has played a strong role in the adjustment process. The big historical role of the exchange rate is partly associated to the large number of failed inflation stabilization attempts. Si ...
... The size of shocks is, however, historically much larger in Mercosur than in the EU or NAFTA, and the exchange rate has played a strong role in the adjustment process. The big historical role of the exchange rate is partly associated to the large number of failed inflation stabilization attempts. Si ...
Peltonen-del05 1039031 en
... is predictable is another issue. According to the first generation models of currency crisis,6 the exact timing of currency crisis is linearly determined by, and therefore, predictable with economic fundamentals. In contrast, in the second generation models of currency crisis,7 economic fundamentals ...
... is predictable is another issue. According to the first generation models of currency crisis,6 the exact timing of currency crisis is linearly determined by, and therefore, predictable with economic fundamentals. In contrast, in the second generation models of currency crisis,7 economic fundamentals ...
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.