INFLATION TARGETING IN DEVELOPING COUNTRIES Ferya KADIOĞLU Nilüfer ÖZDEMİR
... situation, there will be large forecast errors and frequent target misses. Therefore, it will be difficult for the central bank to explain the reason for the deviations from the target and to gain credibility, which is central to the IT regime. According to Masson etc. (1997) IT will be more effecti ...
... situation, there will be large forecast errors and frequent target misses. Therefore, it will be difficult for the central bank to explain the reason for the deviations from the target and to gain credibility, which is central to the IT regime. According to Masson etc. (1997) IT will be more effecti ...
The Elusive Gains from International Financial Integration
... growth in an international perspective to obtain a more realistic measure of the benefits of international financial integration for a large sample of emerging economies. As we will see, our results are surprisingly robust to these extensions. 2.1. The model We consider a world with one homogeneous ...
... growth in an international perspective to obtain a more realistic measure of the benefits of international financial integration for a large sample of emerging economies. As we will see, our results are surprisingly robust to these extensions. 2.1. The model We consider a world with one homogeneous ...
Tapering Talk: The Impact of Expectations of Reduced Federal
... prevailing $85 billion monthly rate to something lower, presumably as a prelude to phasing them out entirely). A milestone to which many observers point is May 22, 2013 when Chairman Bernanke raised the possibility of tapering in his testimony to the Congress. This “tapering talk” had a sharp negati ...
... prevailing $85 billion monthly rate to something lower, presumably as a prelude to phasing them out entirely). A milestone to which many observers point is May 22, 2013 when Chairman Bernanke raised the possibility of tapering in his testimony to the Congress. This “tapering talk” had a sharp negati ...
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 ...
Explaining the Differences between Local Currency versus FX
... to capture market share. In a competitive frenzy, foreign banks increasingly engaged in FX-denominated lending. Doing so was a profitable way of capturing market share. On the one hand, they could rely on cheap FX funding from their parents abroad, whereas attracting deposits as a source of lending ...
... to capture market share. In a competitive frenzy, foreign banks increasingly engaged in FX-denominated lending. Doing so was a profitable way of capturing market share. On the one hand, they could rely on cheap FX funding from their parents abroad, whereas attracting deposits as a source of lending ...
original article in English
... Neither this document nor its content, constitutes an offer, invitation or solicitation to acquire, divest or obtain any interest in assets or financial instruments, nor can it form the basis of any contract, commitment or decision of any kind. Particularly as regards investment in financial assets ...
... Neither this document nor its content, constitutes an offer, invitation or solicitation to acquire, divest or obtain any interest in assets or financial instruments, nor can it form the basis of any contract, commitment or decision of any kind. Particularly as regards investment in financial assets ...
Introducing a Semi-Structural Macroeconomic Model for Rwanda
... in the context of challenging, and at times difficult, domestic and external environments. In particular, food and oil price shocks have played an important role in inflation dynamics. Also, the economy has been subject to significant demand shocks stemming from the global financial crisis in 2009. ...
... in the context of challenging, and at times difficult, domestic and external environments. In particular, food and oil price shocks have played an important role in inflation dynamics. Also, the economy has been subject to significant demand shocks stemming from the global financial crisis in 2009. ...
The Credit Channel in Middle Income Countries
... the paths of the key variables are independent of the nominal exchange rate regime, which is important because of a wide variation across MICs in this regard. Second, an empirical characterization of economic fluctuations follows directly from the equilibrium: (a) it determines which variables to in ...
... the paths of the key variables are independent of the nominal exchange rate regime, which is important because of a wide variation across MICs in this regard. Second, an empirical characterization of economic fluctuations follows directly from the equilibrium: (a) it determines which variables to in ...
Initiative for Policy Dialogue Working Paper Series Resilience
... by sample selection. Second, we use composite indices of CARs that capture regulations over six asset categories, which allows us to capture the intensity of regulations over time, instead of only their presence at a particular asset category at any point in time.3 Third, we use an instrumental vari ...
... by sample selection. Second, we use composite indices of CARs that capture regulations over six asset categories, which allows us to capture the intensity of regulations over time, instead of only their presence at a particular asset category at any point in time.3 Third, we use an instrumental vari ...
accounting implications of foreign currency transactions translation
... this regard, the author H. P. Troberg (1987, 318) gives a numeric argument of this statement, noting that “of the top ten individual problems of the 88 ones evaluated by international accounting experts, there are five related to currency translation”. T. Doupnik and H. Perera (2007, VI) cite the re ...
... this regard, the author H. P. Troberg (1987, 318) gives a numeric argument of this statement, noting that “of the top ten individual problems of the 88 ones evaluated by international accounting experts, there are five related to currency translation”. T. Doupnik and H. Perera (2007, VI) cite the re ...
Consequences of a current account surplus
... their money out. Or, they may require higher interest rates to persuade them to keep investing in an economy. Higher interest rates then have the effect of depressing domestic consumption and investment. The current situation in the United States is very interesting in this respect. Such is the size ...
... their money out. Or, they may require higher interest rates to persuade them to keep investing in an economy. Higher interest rates then have the effect of depressing domestic consumption and investment. The current situation in the United States is very interesting in this respect. Such is the size ...
Exchange Rate Reform in South Sudan
... just any price. From a macroeconomic perspective, it is one of the most important prices in the economy – perhaps the most important for an open economy involved in trade and investment flows with the rest of the world. It influences the flow of goods, services, and capital in a country, and exerts ...
... just any price. From a macroeconomic perspective, it is one of the most important prices in the economy – perhaps the most important for an open economy involved in trade and investment flows with the rest of the world. It influences the flow of goods, services, and capital in a country, and exerts ...
Is Numérairology the Future of Monetary Economics?
... addition money wages or prices were sticky in terms of the bread numéraire, the bakers’ guild would have a non-trivial monetary stabilisation policy role. The welfare significance of the numéraire when there are nominal wage or price rigidities survives even in a cashless economy, interpreted here a ...
... addition money wages or prices were sticky in terms of the bread numéraire, the bakers’ guild would have a non-trivial monetary stabilisation policy role. The welfare significance of the numéraire when there are nominal wage or price rigidities survives even in a cashless economy, interpreted here a ...
Interpreting Money-Supply and Interest
... money-supply shocks. They measure the money supply in the United States as monetary base, M1 and M2. The authors find that a permanent money-supply shock generates a temporary fall in interest rates, consistent with a monetary-policy shock. In contrast to the conclusions when using contemporaneous r ...
... money-supply shocks. They measure the money supply in the United States as monetary base, M1 and M2. The authors find that a permanent money-supply shock generates a temporary fall in interest rates, consistent with a monetary-policy shock. In contrast to the conclusions when using contemporaneous r ...
When It Rains, It Pours: Procyclical Capital Flows and
... with no investment, capital inflows are countercyclical and tend to stabilize the cycle. Naturally, the counterpart of countercyclical borrowing in the standard real model is a procyclical current account. Conversely, if the economy borrowed during good times and lent during bad times, capital flows ...
... with no investment, capital inflows are countercyclical and tend to stabilize the cycle. Naturally, the counterpart of countercyclical borrowing in the standard real model is a procyclical current account. Conversely, if the economy borrowed during good times and lent during bad times, capital flows ...
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... These achievements were possible because the Balts received the international support that they needed. They swiftly joined the International Monetary Fund and the World Bank. To facilitate their initial financial stabilization, the IMF, the World Bank, the EU and individual countries provided loans ...
... These achievements were possible because the Balts received the international support that they needed. They swiftly joined the International Monetary Fund and the World Bank. To facilitate their initial financial stabilization, the IMF, the World Bank, the EU and individual countries provided loans ...
Financial Development: A Broader Perspective
... Although the latest bout of financial turmoil has sparked renewed interest in the desirability of financial development, and the optimal size and structure of the financial system, the debate over the relationship between financial development and economic growth has, of course, been active for many ...
... Although the latest bout of financial turmoil has sparked renewed interest in the desirability of financial development, and the optimal size and structure of the financial system, the debate over the relationship between financial development and economic growth has, of course, been active for many ...
Early Warning Systems for Banking Crises: Political and Economic
... such as corruption, government instability, regulatory environment and financial payment obligation have significant roles in explaining the dynamic nature of crises, such as during 1997-98 East Asian financial crises where investors and speculators reacted to shortterm debts by withdrawing credit f ...
... such as corruption, government instability, regulatory environment and financial payment obligation have significant roles in explaining the dynamic nature of crises, such as during 1997-98 East Asian financial crises where investors and speculators reacted to shortterm debts by withdrawing credit f ...
report - Standard Chartered Bank
... different components, so it can take account of substitution between them, and the emergence of new instruments. This makes it a more trustworthy money indicator than official series. We find it performs much better as an indicator, and did so especially during the 2008-09 global financial crisis (G ...
... different components, so it can take account of substitution between them, and the emergence of new instruments. This makes it a more trustworthy money indicator than official series. We find it performs much better as an indicator, and did so especially during the 2008-09 global financial crisis (G ...
Monetary Policy Statement December 2005 Contents
... become locked in at current high levels. The main downside risk to our projections is the prospect of a faster-than-expected correction in domestic demand, leading to a harder landing for the economy and a more rapid easing of inflation pressures. A further downside risk arises if the current exchang ...
... become locked in at current high levels. The main downside risk to our projections is the prospect of a faster-than-expected correction in domestic demand, leading to a harder landing for the economy and a more rapid easing of inflation pressures. A further downside risk arises if the current exchang ...
Recovery in the Eurozone
... QE, and Sovereign Money Creation1. This report welcomes the wide range of proposals for using monetary financing to boost aggregate demand in the real economy2. However, due to space constraints, we focus on the two broad recommendations for how the ECB could distribute newly created money into the ...
... QE, and Sovereign Money Creation1. This report welcomes the wide range of proposals for using monetary financing to boost aggregate demand in the real economy2. However, due to space constraints, we focus on the two broad recommendations for how the ECB could distribute newly created money into the ...
The Economics of Money, Banking, and Financial
... Answer: The Federal Reserve doesn't use an explicit nominal anchor such as a monetary aggregate or the inflation rate. Its strategy revolves around using an implicit nominal anchor in the form of an overriding concern to control inflation in the long run. This involves forward-looking behavior and " ...
... Answer: The Federal Reserve doesn't use an explicit nominal anchor such as a monetary aggregate or the inflation rate. Its strategy revolves around using an implicit nominal anchor in the form of an overriding concern to control inflation in the long run. This involves forward-looking behavior and " ...
Modelling and Forecasting the Indian Re/US Dollar Exchange Rate
... real interest differential model and Hooper-Morton’s extension of the sticky-price model. In this class of asset market models, domestic and foreign bonds are assumed to be perfect substitutes. The flexible-price monetary model (Frenkel, 1976) assumes that prices are perfectly flexible. Consequently ...
... real interest differential model and Hooper-Morton’s extension of the sticky-price model. In this class of asset market models, domestic and foreign bonds are assumed to be perfect substitutes. The flexible-price monetary model (Frenkel, 1976) assumes that prices are perfectly flexible. Consequently ...
Shanghai as an International Financial Center
... Shanghai to achieve the objective set by China’s state council to be the leading IFC by 2020. An increasing concentration of China’s domestic financial activities, coupled with Shanghai’s leading position in mainland China’s capital markets, will boost the city’s development as an influential IFC. S ...
... Shanghai to achieve the objective set by China’s state council to be the leading IFC by 2020. An increasing concentration of China’s domestic financial activities, coupled with Shanghai’s leading position in mainland China’s capital markets, will boost the city’s development as an influential IFC. S ...
NBER WORKING PAPERS SERIES STABILIZATION AND POLICIES IN CENTRAL AND EASTERN EUROPE:
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
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.