Fiscal Multipliers: Lessons from the Great Recession for Small Open
... stance—either via explicit discretionary stimulus measures, or by letting automatic stabilizers work to their full extent, disregarding the implied strong deterioration of fiscal deficits (see Corsetti and Müller, 2013, for an overview). However, as the crisis and recession turned out to be more pe ...
... stance—either via explicit discretionary stimulus measures, or by letting automatic stabilizers work to their full extent, disregarding the implied strong deterioration of fiscal deficits (see Corsetti and Müller, 2013, for an overview). However, as the crisis and recession turned out to be more pe ...
NBER WORKING PAPER SERIES HOW WELL CAN THE NEW OPEN ECONOMY
... movements in a manner other than macroeconomic fundamentals. This often is done by adding an extra term to the uncovered interest rate parity condition (UIP) in the macro model.4 Such a term is motivated by well-documented empirical evidence of strong deviations from UIP,5 and it can be interpreted ...
... movements in a manner other than macroeconomic fundamentals. This often is done by adding an extra term to the uncovered interest rate parity condition (UIP) in the macro model.4 Such a term is motivated by well-documented empirical evidence of strong deviations from UIP,5 and it can be interpreted ...
Exchange Rates and Monetary Policy in Emerging Market Economies Michael B. Devereux
... monetary policies for emerging market economies. Should these economies attempt to peg their exchange rates to the US dollar via currency boards or dollarisation, or should they allow the exchange rates to float and follow instead a domestically oriented monetary policy geared towards inflation targ ...
... monetary policies for emerging market economies. Should these economies attempt to peg their exchange rates to the US dollar via currency boards or dollarisation, or should they allow the exchange rates to float and follow instead a domestically oriented monetary policy geared towards inflation targ ...
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... Froot and Rogoff (1996) observe while most of the first generation tests rejected the PPP hypothesis, the second generation tests found that the PPP hypothesis was valid only for very long periods covering more than 100 years and that too for industrialised countries with similar income levels, grow ...
... Froot and Rogoff (1996) observe while most of the first generation tests rejected the PPP hypothesis, the second generation tests found that the PPP hypothesis was valid only for very long periods covering more than 100 years and that too for industrialised countries with similar income levels, grow ...
NBER WORKING PAPER SERIES THE SIMPLE GEOMETRY OF TRANSMISSION AND STABILIZATION
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
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... nations severely controlled international capital movements. This was done through a variety of means, including taxes, administrative restrictions and outright prohibitions. It has only been in the last decade or so that serious consideration has been given to the opening of the capital account in ...
... nations severely controlled international capital movements. This was done through a variety of means, including taxes, administrative restrictions and outright prohibitions. It has only been in the last decade or so that serious consideration has been given to the opening of the capital account in ...
NBER WORKING PAPER SERIES GLOBAL ECONOMIC ARCHITECTURE
... capital flows. The beneficial effect of hoarding reserves to deal with exposure to volatile TOT is reinforced by the evidence in Aghion et al. (2006), who found that real exchange rate volatility reduces growth for countries with relatively low levels of financial development. Hence, factors mitigat ...
... capital flows. The beneficial effect of hoarding reserves to deal with exposure to volatile TOT is reinforced by the evidence in Aghion et al. (2006), who found that real exchange rate volatility reduces growth for countries with relatively low levels of financial development. Hence, factors mitigat ...
A New Approach to Monetary Theory and Policy: A Monetary
... received, so the higher the interest, the more money is required in the future, to pay for future debt obligations. Interest is the necessary pre-determined risk-free compensation for the TVM. In explaining the opportunity cost of money, or the inducement to invest, Keynes stated that, “the rate of ...
... received, so the higher the interest, the more money is required in the future, to pay for future debt obligations. Interest is the necessary pre-determined risk-free compensation for the TVM. In explaining the opportunity cost of money, or the inducement to invest, Keynes stated that, “the rate of ...
Khor - UN-NGLS
... the increased share of trade in GDP.” Moreover, the prices of some key manufactured products exported by developing countries have also declined. For example, the Republic of Korea experienced a 25% fall in the terms of trade of its manufactured exports between 1995-1997 due to a glut in the world m ...
... the increased share of trade in GDP.” Moreover, the prices of some key manufactured products exported by developing countries have also declined. For example, the Republic of Korea experienced a 25% fall in the terms of trade of its manufactured exports between 1995-1997 due to a glut in the world m ...
Size, Openness, and Macroeconomic Interdependence
... cross section dependence of all idiosyncratic shocks to individual economies.4 There are three considerable advantages of this type of restrictions, which bind only in the limit:5 (i) they can significantly simplify the asymptotic analysis of the equilibrium, (ii) they are quite general in a sense th ...
... cross section dependence of all idiosyncratic shocks to individual economies.4 There are three considerable advantages of this type of restrictions, which bind only in the limit:5 (i) they can significantly simplify the asymptotic analysis of the equilibrium, (ii) they are quite general in a sense th ...
Official PDF , 37 pages
... time, the Ministers of the Group of 24 2/ also "urged that the international community pay particular attention to small island and landlocked developing states, having regard to their limited size, their openness, their vulnerability to the vagaries of the international economic environment." They ...
... time, the Ministers of the Group of 24 2/ also "urged that the international community pay particular attention to small island and landlocked developing states, having regard to their limited size, their openness, their vulnerability to the vagaries of the international economic environment." They ...
NBER WORKING PAPER SERIES A LONG RUN VIEW Michael D. Bordo
... politically risky strategy. As Argentina’s experience showed, when an economy is vulnerable to shocks and lacks the capacity to make necessary quick adjustments, ‘ultracredible’ currency policies can change suddenly. Thus, forming monetary unions, as in Europe, was the remaining option. So far, rela ...
... politically risky strategy. As Argentina’s experience showed, when an economy is vulnerable to shocks and lacks the capacity to make necessary quick adjustments, ‘ultracredible’ currency policies can change suddenly. Thus, forming monetary unions, as in Europe, was the remaining option. So far, rela ...
Can Foreign Exchange Intervention Stem Exchange Rate Pressures
... It relates, of course, to the growing literature on the role and effects of sterilized FXI in emerging countries, which has taken theoretical, empirical and policy angles. See, for example, the comprehensive reviews of the literature on FXI in Sarno and Taylor (2001), Neely (2005) and Menkhoff (2010 ...
... It relates, of course, to the growing literature on the role and effects of sterilized FXI in emerging countries, which has taken theoretical, empirical and policy angles. See, for example, the comprehensive reviews of the literature on FXI in Sarno and Taylor (2001), Neely (2005) and Menkhoff (2010 ...
Full Text
... Shifts in the global landscape are taking place following disappointing growth in 2016. Momentum picked up in the second half of 2016, and the outlook for advanced economies has improved for 2017–18. Better growth prospects in the United States, Europe, and Japan reflect some rebound in manufacturin ...
... Shifts in the global landscape are taking place following disappointing growth in 2016. Momentum picked up in the second half of 2016, and the outlook for advanced economies has improved for 2017–18. Better growth prospects in the United States, Europe, and Japan reflect some rebound in manufacturin ...
Introduction - Lahore School of Economics
... Moinuddin, 2009; Omer & Saqib, 2009). It is interesting to note that, even when using almost the same specification and methodology but a different sample range, researchers have arrived at conflicting results.4 In addition, while earlier studies talk about model stability, they do not evaluate the ...
... Moinuddin, 2009; Omer & Saqib, 2009). It is interesting to note that, even when using almost the same specification and methodology but a different sample range, researchers have arrived at conflicting results.4 In addition, while earlier studies talk about model stability, they do not evaluate the ...
The potential impacts of Brexit on Azerbaijan`s economy
... As one of the centres of the global economy and financial sector, the exit of Great Britain from European Union made significant impacts on different countries in one way or another, and Azerbaijan was not an exception. This paper analysed the short and long-term impacts of Brexit on Azerbaijan by l ...
... As one of the centres of the global economy and financial sector, the exit of Great Britain from European Union made significant impacts on different countries in one way or another, and Azerbaijan was not an exception. This paper analysed the short and long-term impacts of Brexit on Azerbaijan by l ...
Monetary Policy Statement September 2005 Contents
... The Official Cash Rate (OCR) will remain on hold at 6.75 per cent. Since our June Monetary Policy Statement, economic indicators have broadly confirmed the slowdown in activity that commenced in the second half of 2004. The slowdown has been concentrated in sectors such as manufacturing and tourism th ...
... The Official Cash Rate (OCR) will remain on hold at 6.75 per cent. Since our June Monetary Policy Statement, economic indicators have broadly confirmed the slowdown in activity that commenced in the second half of 2004. The slowdown has been concentrated in sectors such as manufacturing and tourism th ...
The Benefits and Costs of Renminbi Internationalization
... discussion about the reform of the international monetary system. Once again, the US dollar-centered reserve system has been strongly criticized for its exorbitant privileges, which not only cause financial instability but also give rise to inequality between rich countries and poor countries (Stigl ...
... discussion about the reform of the international monetary system. Once again, the US dollar-centered reserve system has been strongly criticized for its exorbitant privileges, which not only cause financial instability but also give rise to inequality between rich countries and poor countries (Stigl ...
Sterling and the Tariff, 1929-32
... By 1929 Britain had endured nearly a decade of sustained unemployment at levels unprecedented in the twentieth century. In every year between 1921 and 1929, the number of workers recorded as unemployed exceeded one million, a level that had been reached only three times in the first twenty years of ...
... By 1929 Britain had endured nearly a decade of sustained unemployment at levels unprecedented in the twentieth century. In every year between 1921 and 1929, the number of workers recorded as unemployed exceeded one million, a level that had been reached only three times in the first twenty years of ...
China`s new monetary policy framework
... tools. Taylor’s rule was the most common guidance in setting interest rates. Introduced by economist John Taylor in 1993, the rule provides guideline to set interest rates in relation to changes in inflation, output gap and other economic conditions that will stabilize the economy in the short term ...
... tools. Taylor’s rule was the most common guidance in setting interest rates. Introduced by economist John Taylor in 1993, the rule provides guideline to set interest rates in relation to changes in inflation, output gap and other economic conditions that will stabilize the economy in the short term ...
Financial Accounting and Accounting Standards
... Units of domestic currency that can be converted into one unit of foreign currency. Direct rate = 1.517 ($1.517 U.S. for 1 British pound) ...
... Units of domestic currency that can be converted into one unit of foreign currency. Direct rate = 1.517 ($1.517 U.S. for 1 British pound) ...
Comparative advantage - Faccarello Gilbert
... If there is at least one thing that modern economists associate with the name of Ricardo, it is the principle of comparative advantage, which still today forms the basis of the major part of the theories of international trade. It is supposed to explain the direction of the flows of trade between co ...
... If there is at least one thing that modern economists associate with the name of Ricardo, it is the principle of comparative advantage, which still today forms the basis of the major part of the theories of international trade. It is supposed to explain the direction of the flows of trade between co ...
Schmidt-del05 1101825 de
... in Betts and Devereux (2001), he constructs a weighted average of non-U.S. G-7 countries to proxy for the rest of the world. Besides an - albeit smaller - positive transmission e ect on foreign output, Kim also finds an increase in foreign aggregate demand in response to an expansionary U.S. moneta ...
... in Betts and Devereux (2001), he constructs a weighted average of non-U.S. G-7 countries to proxy for the rest of the world. Besides an - albeit smaller - positive transmission e ect on foreign output, Kim also finds an increase in foreign aggregate demand in response to an expansionary U.S. moneta ...
NBER WORKING PAPER SERIES MONETARY POLICIES IN INTERDEPENDENT ECONOMIES WITH STOCHASTIC DISTURBANCES:
... perfectly flexible and perfectly fixed exchange rates. These represent the traditional regimes in both international macroeconomic theory and policy discus- ...
... perfectly flexible and perfectly fixed exchange rates. These represent the traditional regimes in both international macroeconomic theory and policy discus- ...
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.