Brandt Equation (2002)
... contagion, which can result in internal political instability, further eroding global investment in developing nations. Two major financial crises have already occurred: in Latin America (1981-86) and Southeast Asia (199798). Neither International Monetary Fund bailouts nor guarantees from private i ...
... contagion, which can result in internal political instability, further eroding global investment in developing nations. Two major financial crises have already occurred: in Latin America (1981-86) and Southeast Asia (199798). Neither International Monetary Fund bailouts nor guarantees from private i ...
Monetary Policy and Exchange Rate Interactions in a Small Open
... in Norway. 2 However, it is only recently that Norway abandoned a regime of targeting the exchange rate and instead adopted inflation targeting. This paper therefore contributes to the literature on how monetary policy can be identified and analysed in a small open economy and establishes some styli ...
... in Norway. 2 However, it is only recently that Norway abandoned a regime of targeting the exchange rate and instead adopted inflation targeting. This paper therefore contributes to the literature on how monetary policy can be identified and analysed in a small open economy and establishes some styli ...
Urgent Global Problems, New Global Solutions
... Firstly, global issues networks are faster and work in the immediate context. They push the international system to respond at a much quicker pace than is the case now. Each network will look at the issues as they are and identify what is the best way of resolving these. Urgency is the key to drivin ...
... Firstly, global issues networks are faster and work in the immediate context. They push the international system to respond at a much quicker pace than is the case now. Each network will look at the issues as they are and identify what is the best way of resolving these. Urgency is the key to drivin ...
How the Foreign Exchange Market Works.p65
... specially negotiated ‘contract rate’. There may be as many contract rates as there are contracts, even within the same institution. Small value transactions are usually deemed to be ‘counter transactions’ and take place at a ‘counter rate’. This ‘counter rate’ is, for the most part, known to all as ...
... specially negotiated ‘contract rate’. There may be as many contract rates as there are contracts, even within the same institution. Small value transactions are usually deemed to be ‘counter transactions’ and take place at a ‘counter rate’. This ‘counter rate’ is, for the most part, known to all as ...
Liquidity, Quantitative Easing and Optimal Monetary Policy
... may be an important cause of business cycles. According to these studies, private …nancial assets becomes much less liquid when the shock hits the economy, as witnessed during the 2008 …nancial crisis. A reduction in the liquidity of …nancial assets restrict both …rms liquidity and their ability to ...
... may be an important cause of business cycles. According to these studies, private …nancial assets becomes much less liquid when the shock hits the economy, as witnessed during the 2008 …nancial crisis. A reduction in the liquidity of …nancial assets restrict both …rms liquidity and their ability to ...
What Explains Movements in the Peso/Dollar
... ∆ denotes the first deference. The oil price is not included in the short-run specification because it turns out to be insignificant in the long-run specification as discussed below. CHLUS is the interest spread between the 90-day Chile and U.S. government bills−the 90-day government bill market is ...
... ∆ denotes the first deference. The oil price is not included in the short-run specification because it turns out to be insignificant in the long-run specification as discussed below. CHLUS is the interest spread between the 90-day Chile and U.S. government bills−the 90-day government bill market is ...
Fiscal and Monetary Policies The Nominal Anchor
... equilibrium, in a benchmark model the central bank’s feedback rule may also react to variables other than in‡ation (depending on the applications of our models), but the critical value of the reaction to in‡ation (satisfying the Taylor Principle) is very close to unity in most models ...
... equilibrium, in a benchmark model the central bank’s feedback rule may also react to variables other than in‡ation (depending on the applications of our models), but the critical value of the reaction to in‡ation (satisfying the Taylor Principle) is very close to unity in most models ...
The Theory of Relative-Price Changes, Money, and Demand Factors
... pure deflation was the norm after 1999 until late 2007, except for a few hikes above zero. Although the rate then became positive through 2008, more recently it has again turned negative. Such a long period of disinflation/deflation, lasting almost 20 years, is a rarity in history.1 It is no surpris ...
... pure deflation was the norm after 1999 until late 2007, except for a few hikes above zero. Although the rate then became positive through 2008, more recently it has again turned negative. Such a long period of disinflation/deflation, lasting almost 20 years, is a rarity in history.1 It is no surpris ...
Fiscal policy convergence and business cycle
... 2.1 The Theory of Optimum Currency Areas (OCA) In 1961, Robert Mundell published the article “A theory of optimum currency areas” (Mundell, 1961). At this time, participating countries of the Bretton Woods system had pegged their national currencies to the US dollar which again had a fixed exchange ...
... 2.1 The Theory of Optimum Currency Areas (OCA) In 1961, Robert Mundell published the article “A theory of optimum currency areas” (Mundell, 1961). At this time, participating countries of the Bretton Woods system had pegged their national currencies to the US dollar which again had a fixed exchange ...
Modern Macroeconomics and Monetary Policy (15th ed.)
... • Keynesians argued that money supply did not matter much. • Monetarists challenged the Keynesian view during the 1960s and 1970s. • Monetarists argued that changes in the money supply caused both inflation and economic instability. • While minor disagreements remain, the modern view emerged from th ...
... • Keynesians argued that money supply did not matter much. • Monetarists challenged the Keynesian view during the 1960s and 1970s. • Monetarists argued that changes in the money supply caused both inflation and economic instability. • While minor disagreements remain, the modern view emerged from th ...
Chapter 8 Money, Inflation, Growth, and Cycles
... Those of us who have grown up in modern economic systems tend to take for granted the idea that exchange involves passing items of equal value reciprocally between two individuals. We are also accustomed to the idea that in the vast majority of these exchanges, a sum of money is one of the two item ...
... Those of us who have grown up in modern economic systems tend to take for granted the idea that exchange involves passing items of equal value reciprocally between two individuals. We are also accustomed to the idea that in the vast majority of these exchanges, a sum of money is one of the two item ...
Exchange Rates - Carleton University
... into gold. The main difference between this system and the aforementioned gold standard is that only one country actively maintains a gold supply. Other countries must be allowed to freely convert their currency into the currency of the gold holding country. ...
... into gold. The main difference between this system and the aforementioned gold standard is that only one country actively maintains a gold supply. Other countries must be allowed to freely convert their currency into the currency of the gold holding country. ...
Western Hemisphere Regional Economic Outlook
... economies continues to be modest and uneven. In the United States, an expanding economy driven by consumption has enabled an interest rate lift-off, marking a first step toward gradual monetary normalization. But recovery elsewhere, notably, in Japan and the euro area, remains fragile. With further ...
... economies continues to be modest and uneven. In the United States, an expanding economy driven by consumption has enabled an interest rate lift-off, marking a first step toward gradual monetary normalization. But recovery elsewhere, notably, in Japan and the euro area, remains fragile. With further ...
Economics of Systemic Transformation
... – in general terms – the designs and internal structures of the political and economic sub-systems are by definition very distinct and that they are driven by different types of rationality (the goal of the political centre is to retain power while that of the economic sub-system is to achieve efficie ...
... – in general terms – the designs and internal structures of the political and economic sub-systems are by definition very distinct and that they are driven by different types of rationality (the goal of the political centre is to retain power while that of the economic sub-system is to achieve efficie ...
Interest Rates and Monetary Policy Uncertainty
... real balances. In a model with infinitely-lived agents, perfect markets and no agency costs, one would expect households to capitalize future transfers, as otherwise, with heterogeneous households, welfare could be increased by the opening of a market for claims on future transfers. However, it may ...
... real balances. In a model with infinitely-lived agents, perfect markets and no agency costs, one would expect households to capitalize future transfers, as otherwise, with heterogeneous households, welfare could be increased by the opening of a market for claims on future transfers. However, it may ...
View/Open
... first specification is correct because economic agents may react differently to exchange rate adjustments than to market price movements. ...
... first specification is correct because economic agents may react differently to exchange rate adjustments than to market price movements. ...
NBER WORKING PAPER SERIES ASPECTS OF THE OPTIMAL MANAGEMENT OF EXCHANGE RATES
... the recognition of the fact that the optimal exchange rate regime need not be ...
... the recognition of the fact that the optimal exchange rate regime need not be ...
![The Use of Financial Accounts in Assessing Financial Stability[1]](http://s1.studyres.com/store/data/021047713_1-aafed391479db698c5f5ae679c369a1e-300x300.png)
The Use of Financial Accounts in Assessing Financial Stability[1]
... is created, liquidated, exchanged or assumed, and not, for example, when the payment is made, thus following the accrual principle. Furthermore, the components of the balance sheets and of their associated flow accounts are shown in gross terms, without netting liabilities against assets and/or inte ...
... is created, liquidated, exchanged or assumed, and not, for example, when the payment is made, thus following the accrual principle. Furthermore, the components of the balance sheets and of their associated flow accounts are shown in gross terms, without netting liabilities against assets and/or inte ...
Macroeconomic policies for full and productive employment
... The current global policy discourse on macroeconomics and development has created space for muchneeded re-thinking in macroeconomic policy in the wake of the Great Recession. The IMF, for example, has suggested the need to adopt a more flexible approach towards inflation targeting, to broaden the go ...
... The current global policy discourse on macroeconomics and development has created space for muchneeded re-thinking in macroeconomic policy in the wake of the Great Recession. The IMF, for example, has suggested the need to adopt a more flexible approach towards inflation targeting, to broaden the go ...
Alternatives to inflation targeting in Mexico Luis Miguel Galindo Jaime Ros
... Alternatives to Inflation Targeting in Mexico The paper addresses Mexico’s experience with inflation targeting which became operational in the aftermath of the 1994/95 tequila crisis. Using VAR econometrics over the post-1980 time series data, we find that monetary policy of the Banco de México was ...
... Alternatives to Inflation Targeting in Mexico The paper addresses Mexico’s experience with inflation targeting which became operational in the aftermath of the 1994/95 tequila crisis. Using VAR econometrics over the post-1980 time series data, we find that monetary policy of the Banco de México was ...
Experience with foreign currency liquidity-providing central bank
... commitments, i.e. contingent liabilities, had been made, in favour of, for example, investment vehicles or public authorities. Given the international role of the US dollar and the depth of its 3 For more details, see the ECB’s press release of 13 September 2001. ...
... commitments, i.e. contingent liabilities, had been made, in favour of, for example, investment vehicles or public authorities. Given the international role of the US dollar and the depth of its 3 For more details, see the ECB’s press release of 13 September 2001. ...
The Case for CosT- BenefiT analysis of finanCial
... maintain a minimum ratio of capital to assets. To use a simple example, a 5 percent capital requirement implies that a firm that buys $100 in assets cannot finance the purchase with more than $95 in debt, so that at least $5 in equity is held by investors. Real capital requirements are much more com ...
... maintain a minimum ratio of capital to assets. To use a simple example, a 5 percent capital requirement implies that a firm that buys $100 in assets cannot finance the purchase with more than $95 in debt, so that at least $5 in equity is held by investors. Real capital requirements are much more com ...
A simple framework for international monetary policy analysis
... augment it by allowing for a short run tradeoff in a way that does not sacrifice tractability. Thus, we are able to investigate qualitatively the implications of international considerations for monetary policy management without having to abstract from the central problem that the tradeoff poses. Ou ...
... augment it by allowing for a short run tradeoff in a way that does not sacrifice tractability. Thus, we are able to investigate qualitatively the implications of international considerations for monetary policy management without having to abstract from the central problem that the tradeoff poses. Ou ...
Adjustment Under Fixed Exchange Rates
... area, two conditions must be satisfied: The countries experience similar shocks; thus, can choose roughly the same monetary policy. Countries have high factor mobility, which allow countries to adjust to shocks. A common currency, such as the Euro, allows countries to lower the transaction costs ...
... area, two conditions must be satisfied: The countries experience similar shocks; thus, can choose roughly the same monetary policy. Countries have high factor mobility, which allow countries to adjust to shocks. A common currency, such as the Euro, allows countries to lower the transaction costs ...
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.