Europe in Crisis: Challenges and Scenarios for
... In the first article, Eckhard Hein and Daniel Detzer outline alternative policy recommendations addressing the problems of differential inflation, divergence in competitiveness and associated current account imbalances within the Euro area. The authors provide a basic framework to systematically a ...
... In the first article, Eckhard Hein and Daniel Detzer outline alternative policy recommendations addressing the problems of differential inflation, divergence in competitiveness and associated current account imbalances within the Euro area. The authors provide a basic framework to systematically a ...
Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models
... persistence. In fact, if the policy rule followed by the monetary authorities has too strong an interest rate smoothing component, even the multisector sticky-price model fails to generate meaningful real exchange rate persistence in response to monetary shocks. Our …nding that policy inertia hampe ...
... persistence. In fact, if the policy rule followed by the monetary authorities has too strong an interest rate smoothing component, even the multisector sticky-price model fails to generate meaningful real exchange rate persistence in response to monetary shocks. Our …nding that policy inertia hampe ...
exchange rate
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
1. O verview
... (Chart 1.1.5). In this period, commercial loans continued to grow at a higher rate than consumer loans as they have since the start of 2014. These developments in loan growth and composition not only contribute to the re-balancing process and financial stability, but also limit the cost-side pressur ...
... (Chart 1.1.5). In this period, commercial loans continued to grow at a higher rate than consumer loans as they have since the start of 2014. These developments in loan growth and composition not only contribute to the re-balancing process and financial stability, but also limit the cost-side pressur ...
One money, but many fiscal policies in Europe
... responding to economic shocks and how to achieve slightly better economic performance, the free-riding aspects raised in section 4 stress issues of longterm importance and of crisis proportions: while the scenarios envisioned in that section may (hopefully) never come to pass, their consequences ar ...
... responding to economic shocks and how to achieve slightly better economic performance, the free-riding aspects raised in section 4 stress issues of longterm importance and of crisis proportions: while the scenarios envisioned in that section may (hopefully) never come to pass, their consequences ar ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... the whole term-structure into zero has not been observed in the history, either. Hence, after complementing our term-structure model with nonnegativity restrictions, we discuss the effectiveness of monetary policy near zero short-term interest rate and explore a transitional path on which the bond-ma ...
... the whole term-structure into zero has not been observed in the history, either. Hence, after complementing our term-structure model with nonnegativity restrictions, we discuss the effectiveness of monetary policy near zero short-term interest rate and explore a transitional path on which the bond-ma ...
New Consensus Macroeconomics: A Critical Appraisal
... Equation (1) is the aggregate demand equation with the current output gap determined by past and expected future output gap, the real rate of interest and the real exchange rate (through effects of demand for exports and imports). It is important to also note that what monetary policy is thought to ...
... Equation (1) is the aggregate demand equation with the current output gap determined by past and expected future output gap, the real rate of interest and the real exchange rate (through effects of demand for exports and imports). It is important to also note that what monetary policy is thought to ...
Latin America and the Rising South: Changing World, Changing
... This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http:// creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the ...
... This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http:// creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the ...
New Consensus Macroeconomics: A Critical Appraisal
... Equation (1) is the aggregate demand equation with the current output gap determined by past and expected future output gap, the real rate of interest and the real exchange rate (through effects of demand for exports and imports). It is important to also note that what monetary policy is thought to ...
... Equation (1) is the aggregate demand equation with the current output gap determined by past and expected future output gap, the real rate of interest and the real exchange rate (through effects of demand for exports and imports). It is important to also note that what monetary policy is thought to ...
Monetary Misperceptions: Optimal Monetary Policy
... the day before. The baker has two options. She can interpret this increased demand as customers having come to appreciate the superior quality of her baked goods, and increase her production to match the new demand. Alternatively, she could interpret this increased spending as evidence that there is ...
... the day before. The baker has two options. She can interpret this increased demand as customers having come to appreciate the superior quality of her baked goods, and increase her production to match the new demand. Alternatively, she could interpret this increased spending as evidence that there is ...
Literature Summary Chapter 1 – International Economics is different
... net national gains: as one usual cannot compare welfare effects on different groups without imposing subjective weights to the economic stakes of each group, we use the one-dollar, one-vote yardstick o one-dollar, one-vote yardstick: One shall value any dollar of gain or loss equally, regardless of ...
... net national gains: as one usual cannot compare welfare effects on different groups without imposing subjective weights to the economic stakes of each group, we use the one-dollar, one-vote yardstick o one-dollar, one-vote yardstick: One shall value any dollar of gain or loss equally, regardless of ...
Can the Fed Stop Deflation?
... The Fed used to have two sources of power to expand the total amount of bank credit: It could lower reserve requirements or lower the discount rate, the rate at which it lends money to banks. In shepherding reserve requirements down to zero, it has expended all the power of the first source. In 2001 ...
... The Fed used to have two sources of power to expand the total amount of bank credit: It could lower reserve requirements or lower the discount rate, the rate at which it lends money to banks. In shepherding reserve requirements down to zero, it has expended all the power of the first source. In 2001 ...
NBER WORKING PAPER SERIES A CURRENCY OF ONE’S OWN?
... The recurrence of currency crises in emerging countries has generated an intense debate on exchange rate policies. Pegged-but-adjustable exchange rate regimes have rapidly lost adepts, while hard pegs and freely floating rates have gained in popularity (See Summers 2000 and Fischer, 2001). Recently, ...
... The recurrence of currency crises in emerging countries has generated an intense debate on exchange rate policies. Pegged-but-adjustable exchange rate regimes have rapidly lost adepts, while hard pegs and freely floating rates have gained in popularity (See Summers 2000 and Fischer, 2001). Recently, ...
Slide 1
... The beginning: Bretton Woods The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid-20th century. ...
... The beginning: Bretton Woods The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid-20th century. ...
Monetary Policy and the Zero Bound
... consider how monetary policy operates. Generally speaking, central banks implement monetary policy by altering the price and quantity of reserve or settlement balances held by depository institutions at the central bank. For example, central banks ease policy by supplying more reserve balances than ...
... consider how monetary policy operates. Generally speaking, central banks implement monetary policy by altering the price and quantity of reserve or settlement balances held by depository institutions at the central bank. For example, central banks ease policy by supplying more reserve balances than ...
NBER WORKING PAPER SERIES RISK, UNCERTAINTY AND EXCHANGE RATES Robert J. Hodrick
... which is a real barter model. Ciovannini (1987) works in a simple version of Svensson's (1985b) model, which modified the timing of transactions in the monetary model of Lucas (1982). ...
... which is a real barter model. Ciovannini (1987) works in a simple version of Svensson's (1985b) model, which modified the timing of transactions in the monetary model of Lucas (1982). ...
big mac index and effective exchange rates: the us dollar, the euro
... perspective of the given currency. An EER is deemed to be a more effective way to measure a given currency’s value than a bilateral exchange rate between the given currency and another individual currency (Chinn, 2006). With an EER and a standard of intrinsic foreign exchange (FX) value, like purcha ...
... perspective of the given currency. An EER is deemed to be a more effective way to measure a given currency’s value than a bilateral exchange rate between the given currency and another individual currency (Chinn, 2006). With an EER and a standard of intrinsic foreign exchange (FX) value, like purcha ...
Colonialism in the Theory of Growth
... For a given level of foreign investment, x, the relationship between hO and hC will depend on ù0 (x). ù0 (x) will be positive, and hC > hO , if the condition sr < ksw is satis¯ed, where sw and sr are the partial derivatives of the saving function with respect to w and r, respectively. In other wor ...
... For a given level of foreign investment, x, the relationship between hO and hC will depend on ù0 (x). ù0 (x) will be positive, and hC > hO , if the condition sr < ksw is satis¯ed, where sw and sr are the partial derivatives of the saving function with respect to w and r, respectively. In other wor ...
Globalization/De-Localization
... forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business ...
... forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business ...
Exchange Rates and the Foreign Exchange Market - uc
... Swaps: another possibility is to combine a spot with a forward arrangement: i.e. A spot sale, then arrange a repurchase in the future at a set rate. Why do this? Say our electronics store sold some computers in Japan and got yen, know will need them again in a month to buy Sony TVs, but not want to ...
... Swaps: another possibility is to combine a spot with a forward arrangement: i.e. A spot sale, then arrange a repurchase in the future at a set rate. Why do this? Say our electronics store sold some computers in Japan and got yen, know will need them again in a month to buy Sony TVs, but not want to ...
Chapter 15: Financial Markets and Expectations
... If the dollar depreciates by 20% pushes the DM down to to DM’, SM remains unchanged, Why?. For the US to continue to demand 12 bn units the euro price of US imports would have to fall to PM = €0.8, i.e., by exactly the 20% depreciation of the dollar in order to leave the dollar’s price of European i ...
... If the dollar depreciates by 20% pushes the DM down to to DM’, SM remains unchanged, Why?. For the US to continue to demand 12 bn units the euro price of US imports would have to fall to PM = €0.8, i.e., by exactly the 20% depreciation of the dollar in order to leave the dollar’s price of European i ...
directory of databases
... Value of Merchandise Exports & Imports between each country and all its trading partners; Total bilateral and multilateral exports and imports aggregated at national/regional group levels For a complete list click here: DOT indicator list ...
... Value of Merchandise Exports & Imports between each country and all its trading partners; Total bilateral and multilateral exports and imports aggregated at national/regional group levels For a complete list click here: DOT indicator list ...
Andrzej Potocki
... forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business organization and practice. Noam Chomsky argues that the word globalization is also used, in a doctrinal sense, to d ...
... forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business organization and practice. Noam Chomsky argues that the word globalization is also used, in a doctrinal sense, to d ...
The Academy of Economic Studies The Faculty of Finance
... definition of the ERER . I. The Purchasing Power Parity (PPP). (Froot and Rogoff, 1995; Rogoff, 1997; Breuer, 1994; Haskel and Wolf, 2001 Nurkse (1945), Balassa (1964), Samuelson (1964) proved the inability of the PPP theory to provide the definition of the equilibrium exchange rate → misleading ind ...
... definition of the ERER . I. The Purchasing Power Parity (PPP). (Froot and Rogoff, 1995; Rogoff, 1997; Breuer, 1994; Haskel and Wolf, 2001 Nurkse (1945), Balassa (1964), Samuelson (1964) proved the inability of the PPP theory to provide the definition of the equilibrium exchange rate → misleading ind ...
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.