Chapter 33: Open Economy Macroeconomics: The
... Rates on the Economy • When a country’s currency depreciates (falls in value), its import prices rise and its export prices (in foreign currencies) fall. • When the U.S. dollar is cheap, U.S. products are more competitive in world markets, and foreign-made goods look expensive to U.S. ...
... Rates on the Economy • When a country’s currency depreciates (falls in value), its import prices rise and its export prices (in foreign currencies) fall. • When the U.S. dollar is cheap, U.S. products are more competitive in world markets, and foreign-made goods look expensive to U.S. ...
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- ...
Consumption Baskets and Currency Choice in International Borrowing
... Hausmann 1999 and Goldstein and Turner 2004). This phenomenon has to some exent been attenuated by the development of local currency bond markets in recent years, but it remains pervasive across most emerging and developing countries.1 A number of explanations have been put forward to account for it ...
... Hausmann 1999 and Goldstein and Turner 2004). This phenomenon has to some exent been attenuated by the development of local currency bond markets in recent years, but it remains pervasive across most emerging and developing countries.1 A number of explanations have been put forward to account for it ...
Topic H
... • An exchange rate is the rate at which one country's currency can be traded in exchange for another country's currency. • The spot rate is the exchange or interest rate currently offered on a particular currency or security. The spot rate is the rate of exchange in currency for immediate delivery. ...
... • An exchange rate is the rate at which one country's currency can be traded in exchange for another country's currency. • The spot rate is the exchange or interest rate currently offered on a particular currency or security. The spot rate is the rate of exchange in currency for immediate delivery. ...
Macroeconomic Stabilization and Capital Inflows in Transition
... It is a question what to do first: either to bring the inflation rate down by cutting the money supply or to eliminate the main cause of inflation. The experience from the successful stabilizations shows that these two issues usually go in step with each other. It is believed that disinflating can b ...
... It is a question what to do first: either to bring the inflation rate down by cutting the money supply or to eliminate the main cause of inflation. The experience from the successful stabilizations shows that these two issues usually go in step with each other. It is believed that disinflating can b ...
Chapter 13
... • The real exchange rate and net exports – The J curve • The effect of a change in the real exchange rate may be weak in the short run and can even go the “wrong” way • Although a rise in the real exchange rate will reduce net exports in the long run, in the short run it may be difficult to quickly ...
... • The real exchange rate and net exports – The J curve • The effect of a change in the real exchange rate may be weak in the short run and can even go the “wrong” way • Although a rise in the real exchange rate will reduce net exports in the long run, in the short run it may be difficult to quickly ...
The transmission of US shocks to Latin America
... Third, these countries provide a wide spectrum of experiences, as far as domestic and international monetary arrangements are concerned, covering situations with flexible rates, partial inflation targeting and no dollarization (Chile, Mexico) at one extreme, complete dollarization (Panama, and start ...
... Third, these countries provide a wide spectrum of experiences, as far as domestic and international monetary arrangements are concerned, covering situations with flexible rates, partial inflation targeting and no dollarization (Chile, Mexico) at one extreme, complete dollarization (Panama, and start ...
Financial Cycles with Heterogeneous Intermediaries
... bear some resemblance with reality. Contemporaneously, output and consumption vary monotonically with the interest rate while the underlying financial structure (and systemic risk) is non-monotonic. We explain here the basic economic intuition behind the workings of the model. Our model features an ...
... bear some resemblance with reality. Contemporaneously, output and consumption vary monotonically with the interest rate while the underlying financial structure (and systemic risk) is non-monotonic. We explain here the basic economic intuition behind the workings of the model. Our model features an ...
Política monetaria en un entorno de dos monedas
... Partial dollarization may not be an optimal regime but the costs of dollarizing or dedollarizing can be substantial in the short run. It is therefore important for central banks to understand the constraints they face when operating in a dual-currency environment. Policy makers are aware of some of ...
... Partial dollarization may not be an optimal regime but the costs of dollarizing or dedollarizing can be substantial in the short run. It is therefore important for central banks to understand the constraints they face when operating in a dual-currency environment. Policy makers are aware of some of ...
11
Financial
Contagion:
The
Impact
of
Global
Disasters
Jory
Fong
... indicates strong spillover effects for various currency crises in the form of speculative attacks. Within the paper, they cite multiple equilibria as a strong source in propagating these attacks. This arises when market participants anticipate that a speculative attack will alter current policy. Exa ...
... indicates strong spillover effects for various currency crises in the form of speculative attacks. Within the paper, they cite multiple equilibria as a strong source in propagating these attacks. This arises when market participants anticipate that a speculative attack will alter current policy. Exa ...
Macroeconomic Issues in Small States and
... The Fund engages with small state members through bilateral surveillance, program and financial support, and capacity building. Partly because many small states are on extended Article IV consultation cycles, Fund operational spending on small (and, especially, micro) states is well below that on la ...
... The Fund engages with small state members through bilateral surveillance, program and financial support, and capacity building. Partly because many small states are on extended Article IV consultation cycles, Fund operational spending on small (and, especially, micro) states is well below that on la ...
Inflation targeting vs. nominal GDP targeting
... First, policy makers are not omnipotent people who will always achieve their target. With target inflation at 0% level, deflation becomes more likely. Deflation can be especially harmful to economy and we saw a big fear of it in recent times in the USA (Japan is unfortunately having this unkind experie ...
... First, policy makers are not omnipotent people who will always achieve their target. With target inflation at 0% level, deflation becomes more likely. Deflation can be especially harmful to economy and we saw a big fear of it in recent times in the USA (Japan is unfortunately having this unkind experie ...
Has Monetary Policy Become Less Powerful?
... impulse response functions trace out the e¤ect of monetary policy, a casual look at this evidence might suggest that monetary policy has become less powerful. However, this can only be determined once we understand the causes of these changes. In fact, the e¤ect of monetary policy depends both on t ...
... impulse response functions trace out the e¤ect of monetary policy, a casual look at this evidence might suggest that monetary policy has become less powerful. However, this can only be determined once we understand the causes of these changes. In fact, the e¤ect of monetary policy depends both on t ...
Euro Cash in Central, Eastern and Southeastern Europe
... banknotes in the local currency, shifts from national central banks (NCBs) to those issuing the parallel currency. (3) A large share of foreign currency loans increases credit risk by adding an element of exchange rate risk. (4) High levels of household cash holdings withdraw money from the economic ...
... banknotes in the local currency, shifts from national central banks (NCBs) to those issuing the parallel currency. (3) A large share of foreign currency loans increases credit risk by adding an element of exchange rate risk. (4) High levels of household cash holdings withdraw money from the economic ...
Simple and Robust Rules for Monetary Policy by
... constant growth rate rules or with actual policy, and to check the rules for robustness. Examples include the simple three equation model in Taylor (1979), the multi-equation international models in the comparative studies by Bryant, Hooper, and Mann (1993), and the econometric models in robustness ...
... constant growth rate rules or with actual policy, and to check the rules for robustness. Examples include the simple three equation model in Taylor (1979), the multi-equation international models in the comparative studies by Bryant, Hooper, and Mann (1993), and the econometric models in robustness ...
Monetary Policy and the Exchange Rate in
... The monetary policy framework in Colombia is based on an extended Inflation Targeting strategy that aims at maintaining a low and stable inflation rate, stabilizing output around its natural level and contributing to the preservation of financial stability. The latter objective is shared with other ...
... The monetary policy framework in Colombia is based on an extended Inflation Targeting strategy that aims at maintaining a low and stable inflation rate, stabilizing output around its natural level and contributing to the preservation of financial stability. The latter objective is shared with other ...
Lecture 1 090904 - Michigan State University
... only good, it is also a gift from the West to the world. The champions of this reading of history tend to feel upset not just because this great benefaction is seen as a curse but also because it is undervalued and castigated by an ungrateful world. From the opposite perspective, Western dominance-- ...
... only good, it is also a gift from the West to the world. The champions of this reading of history tend to feel upset not just because this great benefaction is seen as a curse but also because it is undervalued and castigated by an ungrateful world. From the opposite perspective, Western dominance-- ...
International Capital Flows
... The greater the risk of default, the higher the coupon rate. Municipal bonds are exempt from federal taxes and have a lower coupon rate. Bondholders may sell their bonds at any time in the bond market at their market ...
... The greater the risk of default, the higher the coupon rate. Municipal bonds are exempt from federal taxes and have a lower coupon rate. Bondholders may sell their bonds at any time in the bond market at their market ...
Link to Text - Johns Hopkins University
... "Stability is not everything, but without stability, everything is nothing." We agree with those profound words of Karl Schiller, West Germany's Finance Minister from 1966 to 1972. Stability (low inflation) is a function of monetary policies. Monetary policies are determined, in part, by the exchang ...
... "Stability is not everything, but without stability, everything is nothing." We agree with those profound words of Karl Schiller, West Germany's Finance Minister from 1966 to 1972. Stability (low inflation) is a function of monetary policies. Monetary policies are determined, in part, by the exchang ...
MGS 726 Global Economic Environment
... International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, ...
... International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, ...
World Bank Document
... One might have expected that the twentieth century would have been a period in which technology spread across the world—allowing countries to catch up with advanced economies. This might have been achieved through trade and capital flows based upon continued progress in transportation and communicat ...
... One might have expected that the twentieth century would have been a period in which technology spread across the world—allowing countries to catch up with advanced economies. This might have been achieved through trade and capital flows based upon continued progress in transportation and communicat ...
The Fed Needs to Change Course (Fall 2013)
... policy of 2002–05, the five-year yield has generally tracked or exceeded nominal GDP growth, which has been running at 4.0 percent. The large gap gives a measure of the credit market distortion. In sum, current Fed policy is contractionary by damaging markets, hurting savers, and rechanneling capita ...
... policy of 2002–05, the five-year yield has generally tracked or exceeded nominal GDP growth, which has been running at 4.0 percent. The large gap gives a measure of the credit market distortion. In sum, current Fed policy is contractionary by damaging markets, hurting savers, and rechanneling capita ...
Global Economic Conditions Survey Benchmark Report: Q1 2009
... remained unaffected in most organisations. The message is clear: there is only so much finance capacity that businesses are willing to relinquish – they need professional expertise in order to navigate the difficult economic conditions ahead. Therefore, while early redundancies have been mostly comp ...
... remained unaffected in most organisations. The message is clear: there is only so much finance capacity that businesses are willing to relinquish – they need professional expertise in order to navigate the difficult economic conditions ahead. Therefore, while early redundancies have been mostly comp ...
International Experiences with Different Monetary Policy Regimes
... Rate Mechanism (ERM) was transmitted directly to the other countries in the ERM whose currencies were pegged to the mark because their interest rates now rose in tandem with those in Germany. As pointed out in Clarida, Gali and Gertler (1997), monetary policy in countries such as France and the Unit ...
... Rate Mechanism (ERM) was transmitted directly to the other countries in the ERM whose currencies were pegged to the mark because their interest rates now rose in tandem with those in Germany. As pointed out in Clarida, Gali and Gertler (1997), monetary policy in countries such as France and the Unit ...
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.