Chapter 2 The Financial Markets and Interest Rates
... • Opportunity Cost — Rate of return on next best investment alternative to the investor • Standard Deviation — Dispersion or variability around the mean, or average of the rate of return in the financial markets • Maturity Premium — Additional return required by investors in long-term securities to ...
... • Opportunity Cost — Rate of return on next best investment alternative to the investor • Standard Deviation — Dispersion or variability around the mean, or average of the rate of return in the financial markets • Maturity Premium — Additional return required by investors in long-term securities to ...
The euro as an international reserve currency: macroeconomic
... of euro-denominated corporate bonds. As a result, the euro in its first decade advanced quickly into the ranks of the top reserve currencies, also considering the fact that about a quarter of COFER’s unallocated reserves may be denominated in euro (Chinn, 2012). This process came abruptly to a halt ...
... of euro-denominated corporate bonds. As a result, the euro in its first decade advanced quickly into the ranks of the top reserve currencies, also considering the fact that about a quarter of COFER’s unallocated reserves may be denominated in euro (Chinn, 2012). This process came abruptly to a halt ...
Obstfeld Working Paper No. 1692
... mOst likely to be informative about the extent of international capital mobility involve assets denomi nated in the same currency but issued in different countries. There are two countries in the world, a "home" country and a 'foreign' country, each with its own, country—specific currency. On any da ...
... mOst likely to be informative about the extent of international capital mobility involve assets denomi nated in the same currency but issued in different countries. There are two countries in the world, a "home" country and a 'foreign' country, each with its own, country—specific currency. On any da ...
Capital Inflows, Inflation and Exchange Rate Volatility
... and an exogenous increase in productivity of domestic capital—have an upward pressure on market rate of interest. In contrast, when foreign capital inflows fuelled owing to external factors—such as a decline in international interest rate etc.—will be associated with a decline in interest rates. Reg ...
... and an exogenous increase in productivity of domestic capital—have an upward pressure on market rate of interest. In contrast, when foreign capital inflows fuelled owing to external factors—such as a decline in international interest rate etc.—will be associated with a decline in interest rates. Reg ...
What the Icelandic Crisis Revealed about Global Finance
... bank employees’ motivation to increase stock prices, at the expense of financial stability and sustainability. Together, Zoega, Danielsson, and Sigurjonsson argue that the integrated effect of these policy and corporate governance changes has been to destabilize the Icelandic financial sector, and ...
... bank employees’ motivation to increase stock prices, at the expense of financial stability and sustainability. Together, Zoega, Danielsson, and Sigurjonsson argue that the integrated effect of these policy and corporate governance changes has been to destabilize the Icelandic financial sector, and ...
Chapter 12national Income, Accounting and the Balance of Payments
... eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level or the long-run relative prices of goods and services. D. eventually results in ongoing price level inflation at the same rate, but changes ...
... eventually results in ongoing price level inflation at the same rate, but changes in this long-run inflation rate do not affect the full-employment output level or the long-run relative prices of goods and services. D. eventually results in ongoing price level inflation at the same rate, but changes ...
A Global Perspective on External Positions Philip Lane
... deficits. As was already discussed in the previous section, external imbalances were reduced or reversed in some emerging markets, particularly so in Asia after the 1997 crisis, and from the following year in Latin America. As shown in Table 1, valuation effects implied some losses for the United St ...
... deficits. As was already discussed in the previous section, external imbalances were reduced or reversed in some emerging markets, particularly so in Asia after the 1997 crisis, and from the following year in Latin America. As shown in Table 1, valuation effects implied some losses for the United St ...
Central, Eastern, and Southeastern Europe
... There are also some external tailwinds, such as lower oil prices and improved euro-area growth prospects. Furthermore, several CESEE European Union (EU) member states benefited from a temporary boost to investment from a sharp increase in utilization of EU Structural and Cohesion Funds (SCFs). In co ...
... There are also some external tailwinds, such as lower oil prices and improved euro-area growth prospects. Furthermore, several CESEE European Union (EU) member states benefited from a temporary boost to investment from a sharp increase in utilization of EU Structural and Cohesion Funds (SCFs). In co ...
NBER WORKING PAPERS SERIES Nouriel Roubini
... o the aggregate production function (that is given that financial development increases the the aggregate marginal product of capital of an economy). A number of arguments of why this may be the case are also exposed in section 3. For instance, financially developed economies can allocate their inpu ...
... o the aggregate production function (that is given that financial development increases the the aggregate marginal product of capital of an economy). A number of arguments of why this may be the case are also exposed in section 3. For instance, financially developed economies can allocate their inpu ...
DEPARTMENT OF ECONOMICS
... wage is partially or fully passed through to the export price, making domestic goods less competitive internationally. This counters any positive e§ects on growth through increased utilization and investment. Thus, if the MarshallLerner condition is satisfied, open economy considerations constrain t ...
... wage is partially or fully passed through to the export price, making domestic goods less competitive internationally. This counters any positive e§ects on growth through increased utilization and investment. Thus, if the MarshallLerner condition is satisfied, open economy considerations constrain t ...
Effects of changes in the official interest rate in an inflation
... to be extensively used for stabilisation purposes, hence monetary policy has become the main vehicle for effecting stabilisation. Central banks are the institutions responsible for implementing monetary policy. To attain the ultimate economic goals stipulated for monetary policy, central banks have ...
... to be extensively used for stabilisation purposes, hence monetary policy has become the main vehicle for effecting stabilisation. Central banks are the institutions responsible for implementing monetary policy. To attain the ultimate economic goals stipulated for monetary policy, central banks have ...
Exchange rate regimes in Latin America
... In Mexico, there was a severe balance of payments crisis in 1976, forcing the authorities to devalue for the first time in more than twenty years. After a year of sequential adjustments, the NER was fixed again in early 1977. The next big external shock came in 1979, when the U.S. Federal Reserve dr ...
... In Mexico, there was a severe balance of payments crisis in 1976, forcing the authorities to devalue for the first time in more than twenty years. After a year of sequential adjustments, the NER was fixed again in early 1977. The next big external shock came in 1979, when the U.S. Federal Reserve dr ...
International Business Chapter 18 International Accounting Issues 1
... 16) German companies like Deutsche Bank and Daimler Chrysler have been relatively optimistic and transparent in their financial reporting compared with many Germanic companies because ________. A) German accounting standards have always been optimistic and transparent B) they adopted U.S. Generally ...
... 16) German companies like Deutsche Bank and Daimler Chrysler have been relatively optimistic and transparent in their financial reporting compared with many Germanic companies because ________. A) German accounting standards have always been optimistic and transparent B) they adopted U.S. Generally ...
Linkages Between Exchange Rate Policy and Macroeconomic
... associated with higher growth exceed those to reduction of business cycle volatility, little attention has been paid to empirical modeling of macroeconomic volatility. In comparison to the huge literature devoted to finding statistically robust factors in the growth regression framework (see Levine ...
... associated with higher growth exceed those to reduction of business cycle volatility, little attention has been paid to empirical modeling of macroeconomic volatility. In comparison to the huge literature devoted to finding statistically robust factors in the growth regression framework (see Levine ...
Economics for Investment Decision Makers Workbook
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 22
... transactions, they do not led new opportunities to come into their society. These governments also do tax evasion, which must of the time in some countries it's been out of control. Basically, developing countries have been managed by corrupt and inexperience peoples that just want to disturbed inst ...
... transactions, they do not led new opportunities to come into their society. These governments also do tax evasion, which must of the time in some countries it's been out of control. Basically, developing countries have been managed by corrupt and inexperience peoples that just want to disturbed inst ...
Purchasing-Power Parity: Definition
... While the origins of the PPP concept can be traced back to the Salamanca School in 16th-century Spain, its modern use as a theory of exchange rate determination begins with the work of Gustav Cassel (1918), who proposed PPP as a means of adjusting pre–World War I exchange rates or parities for count ...
... While the origins of the PPP concept can be traced back to the Salamanca School in 16th-century Spain, its modern use as a theory of exchange rate determination begins with the work of Gustav Cassel (1918), who proposed PPP as a means of adjusting pre–World War I exchange rates or parities for count ...
What Determines Bilateral Trade Flows? - bu people
... Our dataset includes 92 countries. We collected data on 24 variables that measure a wide range of economic, geographic, and policy environments. Our data span six five-year intervals from 1970 to 1995. Our list of potential trade determinants includes the following: the standard gravity variables (d ...
... Our dataset includes 92 countries. We collected data on 24 variables that measure a wide range of economic, geographic, and policy environments. Our data span six five-year intervals from 1970 to 1995. Our list of potential trade determinants includes the following: the standard gravity variables (d ...
NBER WORKING PAPER SERIES INTERNATIONAL FINANCIAL INTEGRATION AND ECONOMIC GROWTH Hali J. Edison
... and may therefore provide a more accurate indicator of IFI than capital flow measures. As proxies for IFI, we examine both the accumulated stock of liabilities (as a share of GDP) and the accumulated stock of liabilities and assets (as a share of GDP). Also, we break down the accumulated stocks of f ...
... and may therefore provide a more accurate indicator of IFI than capital flow measures. As proxies for IFI, we examine both the accumulated stock of liabilities (as a share of GDP) and the accumulated stock of liabilities and assets (as a share of GDP). Also, we break down the accumulated stocks of f ...
Equilibrium Exchange Rates - National Bureau of Economic Research
... In the three years since the Plaza Accord the central bankers and finance ministers of the large industrial nations have come to a consensus in favor of exchange rate management. For better or for worse, it is now taken as a matter of course that the G-5 countries will at any given time form a colle ...
... In the three years since the Plaza Accord the central bankers and finance ministers of the large industrial nations have come to a consensus in favor of exchange rate management. For better or for worse, it is now taken as a matter of course that the G-5 countries will at any given time form a colle ...
Economics China`s currency devaluation is actually a
... war. These quick response market worries are vastly overstated. China’s economic growth is slowing – a trend that began several years ago – but is not collapsing. China’s exports are now declining, and its policy of allowing its currency to depreciate modestly following several years of significant ...
... war. These quick response market worries are vastly overstated. China’s economic growth is slowing – a trend that began several years ago – but is not collapsing. China’s exports are now declining, and its policy of allowing its currency to depreciate modestly following several years of significant ...
Chapter 17
... at which it grows, has something to do with market interest rates on bonds? Copyright © 2008 Pearson Addison Wesley. All rights reserved. ...
... at which it grows, has something to do with market interest rates on bonds? Copyright © 2008 Pearson Addison Wesley. All rights reserved. ...
Use of Local Currencies in CIF Projects
... improve the project’s overall credit risk profile to the CIF and to other investors. Many of these project sponsors/borrowers have a limited ability, or in some cases, the inability, to manage foreign exchange rate risk due to either a lack of capacity or the absence of local currency swap markets o ...
... improve the project’s overall credit risk profile to the CIF and to other investors. Many of these project sponsors/borrowers have a limited ability, or in some cases, the inability, to manage foreign exchange rate risk due to either a lack of capacity or the absence of local currency swap markets o ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Plans for full-fledged coordination, in the sense of cooperative maximization of some joint welfare function, are likely to be too complex to be implemented as literally proposed. Hence the motivation for simpler more practical schemes,2 for example focusing on a few key “economic indicators.” But t ...
... Plans for full-fledged coordination, in the sense of cooperative maximization of some joint welfare function, are likely to be too complex to be implemented as literally proposed. Hence the motivation for simpler more practical schemes,2 for example focusing on a few key “economic indicators.” But t ...
Foreign Direct Investment and Exchange Rates: A Case Study of
... thereby generating long-term and sustainable economic growth of the investment receiving country. It is also important to note that FDI benefits a home country and its investing firms since FDI enables them to employ their resources efficiently (see, for example, Lipsey (2000) – home and host countr ...
... thereby generating long-term and sustainable economic growth of the investment receiving country. It is also important to note that FDI benefits a home country and its investing firms since FDI enables them to employ their resources efficiently (see, for example, Lipsey (2000) – home and host countr ...
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.