PDF
... countries, because price variability is much less for industrial prices then for agricultural prices during the transition period especially comparing similar price movements in developed countries. Overshooting of agricultural prices can at least partially explain the observed agricultural-price va ...
... countries, because price variability is much less for industrial prices then for agricultural prices during the transition period especially comparing similar price movements in developed countries. Overshooting of agricultural prices can at least partially explain the observed agricultural-price va ...
5 Chartalism and the tax-driven approach to money
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
U.S. MartinJ. Bailey and George S. Tavias TRADE AND INVESTMENT UNDER FLOATING
... original value because the current account deficits result in reduced income from net foreign assets. As Dornbusch (1987, p. 7) has argued: “The reduction in net external assets means that following a period ofdeficits, the current account cannot be balanced simply by returning to the initial real e ...
... original value because the current account deficits result in reduced income from net foreign assets. As Dornbusch (1987, p. 7) has argued: “The reduction in net external assets means that following a period ofdeficits, the current account cannot be balanced simply by returning to the initial real e ...
forward rate
... not be accurate in predicting future exchange rates • Two general conclusions can be drawn from the tests: – PPP holds up well over the very long term but is poor for short term estimates – The theory holds better for countries with relatively high rates of inflation and underdeveloped capital marke ...
... not be accurate in predicting future exchange rates • Two general conclusions can be drawn from the tests: – PPP holds up well over the very long term but is poor for short term estimates – The theory holds better for countries with relatively high rates of inflation and underdeveloped capital marke ...
Inflation, Exchange Rates and Interest Rates
... nominal interest rates. This theory attributes changes in exchange rates to interest rate differentials, rather than inflation rate differentials. Inflation is one macroeconomic variable that remains elusive to the policy makers in the country. Though the much desired single digit level was attained in ...
... nominal interest rates. This theory attributes changes in exchange rates to interest rate differentials, rather than inflation rate differentials. Inflation is one macroeconomic variable that remains elusive to the policy makers in the country. Though the much desired single digit level was attained in ...
1 United Nations
... perspectives about the impacts of, responses to, and lessons learned from the global financial crisis, by the countries of the region. These views reflect discussions during a series of high-level policy dialogues organized by the United Nations Economic and Social Commission for Asia and the Pacif ...
... perspectives about the impacts of, responses to, and lessons learned from the global financial crisis, by the countries of the region. These views reflect discussions during a series of high-level policy dialogues organized by the United Nations Economic and Social Commission for Asia and the Pacif ...
Capital Flight, Natural Resources and Institutions
... inflation values are associated with higher levels of capital flight. A high value of exchange rate signals a depreciated local currency, high currency risk and is associated with high level of capital flight. Inflationary and exchange rate risks are correlated positively with levels of capital flig ...
... inflation values are associated with higher levels of capital flight. A high value of exchange rate signals a depreciated local currency, high currency risk and is associated with high level of capital flight. Inflationary and exchange rate risks are correlated positively with levels of capital flig ...
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... (1979) Inverse Mills Ratio (IMR) approach does not adequately control for selection bias in this case, since “participation equations” in this literature (predicting whether a country participates in an IMF program) generally have low explanatory power. This is partly because 2/3 of IMF programs are ...
... (1979) Inverse Mills Ratio (IMR) approach does not adequately control for selection bias in this case, since “participation equations” in this literature (predicting whether a country participates in an IMF program) generally have low explanatory power. This is partly because 2/3 of IMF programs are ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... inflation rates? Finally, can the inflation predictions of first-generation-type models be reconciled with the data? To pay for the fiscal costs of twin crises, a government must use a combination of the following strategies: (a) implementing an explicit fiscal reform by raising taxes or reducing sp ...
... inflation rates? Finally, can the inflation predictions of first-generation-type models be reconciled with the data? To pay for the fiscal costs of twin crises, a government must use a combination of the following strategies: (a) implementing an explicit fiscal reform by raising taxes or reducing sp ...
Institutional structure of technological modes
... dogma of market fundamentalism prevented the G8 leadership from developing effective anti-crisis measures. That said, left suffering the most were those countries where a high degree of economic openness had been exacerbated by the political rejection of monetary control and financial-market regulat ...
... dogma of market fundamentalism prevented the G8 leadership from developing effective anti-crisis measures. That said, left suffering the most were those countries where a high degree of economic openness had been exacerbated by the political rejection of monetary control and financial-market regulat ...
Finance, Financial Sector Policies, and Long-Run Growth
... exist and since laws, regulations, and policies differ markedly across economies and over time, improvements along any single dimension may have different implications for resource allocation and welfare depending on the other frictions at play in the economy. 1.2. Producing information and allocati ...
... exist and since laws, regulations, and policies differ markedly across economies and over time, improvements along any single dimension may have different implications for resource allocation and welfare depending on the other frictions at play in the economy. 1.2. Producing information and allocati ...
Chapter 16: Foreign Exchange Derivative Markets
... From 1944 to 1971, the exchange rate at which one currency could be exchanged for another was maintained by governments within 1 percent of a specified rate. This period was known as the Bretton Woods era, because the agreement establishing the system was negotiated at the Bretton Woods Conference i ...
... From 1944 to 1971, the exchange rate at which one currency could be exchanged for another was maintained by governments within 1 percent of a specified rate. This period was known as the Bretton Woods era, because the agreement establishing the system was negotiated at the Bretton Woods Conference i ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... with the rest of the world. 3. The sources and types of economic disturbances giving rise to fluctuations in exchange rates. To some extent the analysis will follow that of the literature on fixed versus flexible exchange rates, of which Mundell’s (1963) study is representative. But the decision to ...
... with the rest of the world. 3. The sources and types of economic disturbances giving rise to fluctuations in exchange rates. To some extent the analysis will follow that of the literature on fixed versus flexible exchange rates, of which Mundell’s (1963) study is representative. But the decision to ...
NBER WORKING PAPER SERIES CAPITAL FLOWS AND CONTROLS Ilan Goldfajn
... 3). As a consequence of the surge in capital inflows, exchange rate overvaluation, and higher economic growth, large trade deficits emerged from 1995 through 1998 (average of 0.7% of GDP, which is a value largely underestimated by the increase in dollardenominated GDP resulting from the exchange rat ...
... 3). As a consequence of the surge in capital inflows, exchange rate overvaluation, and higher economic growth, large trade deficits emerged from 1995 through 1998 (average of 0.7% of GDP, which is a value largely underestimated by the increase in dollardenominated GDP resulting from the exchange rat ...
Capital Infows and Investment Barbara Pels Institute for International Integration Studies and
... public governance could all lead to higher long-run growth. No consensus has emerged among economists and policymakers on the topic of the desirability of capital account openness for less developed countries. A clear understanding of the link between capital inflows and investment is important for ...
... public governance could all lead to higher long-run growth. No consensus has emerged among economists and policymakers on the topic of the desirability of capital account openness for less developed countries. A clear understanding of the link between capital inflows and investment is important for ...
LCcarG715_en.pdf
... seen as the outcome of the interaction of flow supplies and demands. Alternatively, it may be determined like an asset in the sense that “its present value depends on expected future returns to holding assets valued in home or foreign money” (Eatwell and Taylor, 2000, p. 62). In the first case, the ...
... seen as the outcome of the interaction of flow supplies and demands. Alternatively, it may be determined like an asset in the sense that “its present value depends on expected future returns to holding assets valued in home or foreign money” (Eatwell and Taylor, 2000, p. 62). In the first case, the ...
Emerging Countries and Inconsistencies in Macroeconomic Policy
... general demand for market based price determination, floating exchange rate regimes ended up being the dominant choice. Most frequently these were complemented with the institutional framework of an inflation targeting regime (e.g. independent central bank, transparent monetary policy, fiscal discip ...
... general demand for market based price determination, floating exchange rate regimes ended up being the dominant choice. Most frequently these were complemented with the institutional framework of an inflation targeting regime (e.g. independent central bank, transparent monetary policy, fiscal discip ...
The Response of Stock Market Volatility to Futures
... variables of interest cannot be included in a typical monetary VAR as this would entail estimating a large number of parameters and leads to degrees of freedom problems. Embedding the monetary policy shocks as an exogenous variable in the VAR thus circumvents the need to estimate a large VAR model i ...
... variables of interest cannot be included in a typical monetary VAR as this would entail estimating a large number of parameters and leads to degrees of freedom problems. Embedding the monetary policy shocks as an exogenous variable in the VAR thus circumvents the need to estimate a large VAR model i ...
Global Pricing
... When local currency is not freely convertible, firms resort to counter trade. Exchange local currency for some other goods that is then sold for US$ or other currency Systems pricing or Pricing for turnkey projects have several subcomponents that may be separately priced or priced as a bundle ...
... When local currency is not freely convertible, firms resort to counter trade. Exchange local currency for some other goods that is then sold for US$ or other currency Systems pricing or Pricing for turnkey projects have several subcomponents that may be separately priced or priced as a bundle ...
Macroeconomic Review April 2017 Vol XVI Issue 1
... emerged as a driver of growth in Asia ex-Japan. At the global level, industrial production, trade flows and corporate earnings have all registered some improvement. These developments have, accordingly, led to a slight upgrade of the international economic outlook since the last Review, with the glo ...
... emerged as a driver of growth in Asia ex-Japan. At the global level, industrial production, trade flows and corporate earnings have all registered some improvement. These developments have, accordingly, led to a slight upgrade of the international economic outlook since the last Review, with the glo ...
Lecture 1 International Economics Introduction and
... of cars by a small Tennessee company. – China has become Germany's largest trading partner, as exports-plus-imports with China in 2016 surpassed both France and the US. ...
... of cars by a small Tennessee company. – China has become Germany's largest trading partner, as exports-plus-imports with China in 2016 surpassed both France and the US. ...
What Is Global History? - Introduction
... with the long-standing and pervasive tendency to conceive of national histories as the history of discrete, self-contained spaces.2 The communication revolution that began in the 1990s also has had an important impact on our interpretations of the past. Historians—and their readers—travel and ex ...
... with the long-standing and pervasive tendency to conceive of national histories as the history of discrete, self-contained spaces.2 The communication revolution that began in the 1990s also has had an important impact on our interpretations of the past. Historians—and their readers—travel and ex ...
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.