Welfare Costs of Inflation and the Circulation of US Currency Abroad
... Thus, the bene…ts in terms of minor “shoe-leather costs” for domestic agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real appreciation of the foreign claims (implied by the currency holdings abroad). SchmittGro ...
... Thus, the bene…ts in terms of minor “shoe-leather costs” for domestic agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real appreciation of the foreign claims (implied by the currency holdings abroad). SchmittGro ...
MR presentation
... “The Governing Council agreed that in the pursuit of price stability it will aim to maintain inflation rates close to 2% over the medium term. This clarification underlines the ECB's commitment to provide a sufficient safety margin to guard against the risks of deflation. It also addresses the issue ...
... “The Governing Council agreed that in the pursuit of price stability it will aim to maintain inflation rates close to 2% over the medium term. This clarification underlines the ECB's commitment to provide a sufficient safety margin to guard against the risks of deflation. It also addresses the issue ...
title of the paper - economics and management
... The channels of financial risk contagion in the global financial markets The mechanism through which a shock can be transmitted from one country to the other is very complicated and can differ during the term of particular crisis. Therefore, in order to examine the process of financial risk contagio ...
... The channels of financial risk contagion in the global financial markets The mechanism through which a shock can be transmitted from one country to the other is very complicated and can differ during the term of particular crisis. Therefore, in order to examine the process of financial risk contagio ...
NBER WORKING PAPER SERIES COMPOSITIONAL EFFECTS OF GOVERNMENT SPENDING
... Figure 2 illustrates the initial equilibrium. Since it is stationary, the graphs characterize equilibrium in each period. The countries share identical production possibilitiesfrontiers and identicaland homotheticpreferences. Thus, the only difference between the home and foreign country is that pri ...
... Figure 2 illustrates the initial equilibrium. Since it is stationary, the graphs characterize equilibrium in each period. The countries share identical production possibilitiesfrontiers and identicaland homotheticpreferences. Thus, the only difference between the home and foreign country is that pri ...
THE IMPACT OF EXCHANGE RATE MOVEMENTS ON TRADE
... 1995). Proponents of flexible exchange rate have argued that fixed exchange rates encourage speculative capital inflows. The economic policy implication is to pursue fully more flexible exchange rate regime (Fisher, 2001). In contrast proponents of fixed exchange rates have stressed the positive imp ...
... 1995). Proponents of flexible exchange rate have argued that fixed exchange rates encourage speculative capital inflows. The economic policy implication is to pursue fully more flexible exchange rate regime (Fisher, 2001). In contrast proponents of fixed exchange rates have stressed the positive imp ...
Economic Policy in EMU: Community Framework and National Strategies - focus on Greece
... A principal lesson of the first years of EMU is that, although the pursuit of macroeconomic stability is a precondition for sustainable growth, there is no automatic mechanism for raising the economy’s growth potential3. Most analysts, including international institutions (IMF, OECD) and Community ...
... A principal lesson of the first years of EMU is that, although the pursuit of macroeconomic stability is a precondition for sustainable growth, there is no automatic mechanism for raising the economy’s growth potential3. Most analysts, including international institutions (IMF, OECD) and Community ...
Fiscal Rigor or Rigor Mortis - European Union Center of California
... the democratic political process in the area of economic policy one needs to ask whether there are serious biases or distortions in the operation of the political process. If there are, then the first best solution is to reform collective decision making procedures to remove these biases. If this do ...
... the democratic political process in the area of economic policy one needs to ask whether there are serious biases or distortions in the operation of the political process. If there are, then the first best solution is to reform collective decision making procedures to remove these biases. If this do ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... a balance-of-payments and financial crisis, and huge costs in terms of output and employment. Unlike those of other countries in the region, the crisis was not caused by fiscal imbalances but was triggered by a deteriorating international environment, a misaligned exchange rate, and a weak financial ...
... a balance-of-payments and financial crisis, and huge costs in terms of output and employment. Unlike those of other countries in the region, the crisis was not caused by fiscal imbalances but was triggered by a deteriorating international environment, a misaligned exchange rate, and a weak financial ...
Fiat versus Representative Money under Debate, or How Right
... On the other hand, the fiat money theory was well enough so far as basing on its strenghts and other specific aspects, here including (economic) history and history of economic thinking. As in the first place, this theory is in “good terms” with a late 19th century neoclassical view about the barter ...
... On the other hand, the fiat money theory was well enough so far as basing on its strenghts and other specific aspects, here including (economic) history and history of economic thinking. As in the first place, this theory is in “good terms” with a late 19th century neoclassical view about the barter ...
BANK GROUP`S GUIDELINES FOR FINANCIAL GOVERNANCE
... transparent, targeted, and capped; (ii) are funded explicitly through the government budget or other sources subject to effective control and regular review; (iii) are fiscally sustainable; (iv) do not give an unfair advantage to some FIs over other qualified and directly competing institutions; and ...
... transparent, targeted, and capped; (ii) are funded explicitly through the government budget or other sources subject to effective control and regular review; (iii) are fiscally sustainable; (iv) do not give an unfair advantage to some FIs over other qualified and directly competing institutions; and ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Capital Flows
... In the early 1990s it became fashionable to compare Latin America’s somewhat traumatic experience with capital inflows with East Asia’s supposedly successful capital flow management. The recent currency crises in a number of East Asian countries-including Thailand, Malaysia, the Philippines, Indones ...
... In the early 1990s it became fashionable to compare Latin America’s somewhat traumatic experience with capital inflows with East Asia’s supposedly successful capital flow management. The recent currency crises in a number of East Asian countries-including Thailand, Malaysia, the Philippines, Indones ...
Regional Economic Outlook: Western Hemisphere
... levels. Indeed some in Europe face market pressures and the need for substantial upfront fiscal action. In that context, policy interest rates in major reserve currency economies are likely to remain very low for quite some time, pushing private capital to the most attractive emerging economies and ...
... levels. Indeed some in Europe face market pressures and the need for substantial upfront fiscal action. In that context, policy interest rates in major reserve currency economies are likely to remain very low for quite some time, pushing private capital to the most attractive emerging economies and ...
Interest Rate Surprises and Transmission Mechanism in Turkey: Evidence from
... there is either a need for a new theory, which can account for this kind of exchange rate responses or monetary policy has not been successfully identified in open economies. Consequently they propose a new identification scheme that can differentiate the policy reaction function from private sector ...
... there is either a need for a new theory, which can account for this kind of exchange rate responses or monetary policy has not been successfully identified in open economies. Consequently they propose a new identification scheme that can differentiate the policy reaction function from private sector ...
When it rains, it pours: Procyclical capital flows and macroeconomic
... GDP increases (fall). In the case of procyclical net capital inflows, however, this ratio could have any sign since in good (bad) times, net capital inflows increase (fall) and GDP also increases (falls). In the acyclical case, the behavior of the ratio is dominated by the changes in GDP and therefo ...
... GDP increases (fall). In the case of procyclical net capital inflows, however, this ratio could have any sign since in good (bad) times, net capital inflows increase (fall) and GDP also increases (falls). In the acyclical case, the behavior of the ratio is dominated by the changes in GDP and therefo ...
beliefs - Georgia State University
... The international financial crises in Russia, neighboring Turkey, and elsewhere in the late 1990’s may have depressed both exports and the inflow of foreign capital. Bulgaria is a small and very open economy where exports equaled 53 percent of GDP in 2002 and external shocks have potentially strong ...
... The international financial crises in Russia, neighboring Turkey, and elsewhere in the late 1990’s may have depressed both exports and the inflow of foreign capital. Bulgaria is a small and very open economy where exports equaled 53 percent of GDP in 2002 and external shocks have potentially strong ...
Sovereignty in the Global Economy: An Evolving Geopolitical Concept
... of their societies. The growth of the global economy has been accompanied by increasing tensions between the requirements of that global economy for firms competing within it and the interests of individual states, regions, and localities. The increased concentration of economic power in the hands o ...
... of their societies. The growth of the global economy has been accompanied by increasing tensions between the requirements of that global economy for firms competing within it and the interests of individual states, regions, and localities. The increased concentration of economic power in the hands o ...
National Bank of Poland
... first approximation of the possible gains arising from the euro. The reason is that trade creation is not a welfare gain in itself, but rather a channel through which different types of microeconomic gains can materialize. Thus, the economic integration fosters lower prices and higher average produc ...
... first approximation of the possible gains arising from the euro. The reason is that trade creation is not a welfare gain in itself, but rather a channel through which different types of microeconomic gains can materialize. Thus, the economic integration fosters lower prices and higher average produc ...
Yen Bloc or Yuan Bloc
... Common Currency Arrangements in East Asia – Welfare Effects ................................ 24 Common Currency Arrangements with Australia and New Zealand—Trade Effects............................................................................. 25 Common Currency Arrangements with Australia and Ne ...
... Common Currency Arrangements in East Asia – Welfare Effects ................................ 24 Common Currency Arrangements with Australia and New Zealand—Trade Effects............................................................................. 25 Common Currency Arrangements with Australia and Ne ...
G20 - Bundesfinanzministerium
... competitive and dynamic. But it also leads to greater interdependence – in our globalised world, there are many issues we can only resolve together. This is also true for financial and economic policies. As an exporting country, Germany has a particularly strong interest in helping to actively shape ...
... competitive and dynamic. But it also leads to greater interdependence – in our globalised world, there are many issues we can only resolve together. This is also true for financial and economic policies. As an exporting country, Germany has a particularly strong interest in helping to actively shape ...
355 K - National Bureau of Economic Research
... derogation from the third stage of EMU, but is not exempted from participation.1 A national referendum on Swedish participation in EMU was held in September 2003, and the result was a rejection of membership with 56 percent of the electorate voting against and 42 percent voting in favor. As a conseq ...
... derogation from the third stage of EMU, but is not exempted from participation.1 A national referendum on Swedish participation in EMU was held in September 2003, and the result was a rejection of membership with 56 percent of the electorate voting against and 42 percent voting in favor. As a conseq ...
understanding exchange rate volatility without the contrivance of
... at odds with (3), and indeed all similar models that generate exchange rate volatility from macroeconomic volatility. To put it baldly, macroeconomics appears to be irrelevant in explaining high and medium frequency exchange rate dynamics for low-in¯ation countries. One could contrive to make macroe ...
... at odds with (3), and indeed all similar models that generate exchange rate volatility from macroeconomic volatility. To put it baldly, macroeconomics appears to be irrelevant in explaining high and medium frequency exchange rate dynamics for low-in¯ation countries. One could contrive to make macroe ...
Gains from Commitment in Monetary Policy: Implications of the Cost
... to the case in which, due to absence of a cost channel, only a subset of shocks can pose a trade-o¤ between stabilizing in‡ation and stabilizing the output-gap. Consequently, the value of monetary policy commitment increases signi…cantly if a cost channel is present. Quantitative …ndings suggest tha ...
... to the case in which, due to absence of a cost channel, only a subset of shocks can pose a trade-o¤ between stabilizing in‡ation and stabilizing the output-gap. Consequently, the value of monetary policy commitment increases signi…cantly if a cost channel is present. Quantitative …ndings suggest tha ...
The slowdown in emerging market economies and its
... GDP on average in the two decades before the financial crisis, trade has barely kept pace with economic activity since 2011. Some of that weakness stems from inter-EME trade developments, perhaps reflecting the dwindling benefits of EMEs’ integration into global markets. In particular, the moderatio ...
... GDP on average in the two decades before the financial crisis, trade has barely kept pace with economic activity since 2011. Some of that weakness stems from inter-EME trade developments, perhaps reflecting the dwindling benefits of EMEs’ integration into global markets. In particular, the moderatio ...
annual hyman p. minsky conference on the state of the us and world
... Economic Advisers] testified before the Joint Economic Committee that the financial crisis of 2008 was five times stronger than the shocks in the Great Depression. After the AIG bailout, and to show how out of control it was—that no one understood what was happening—AIG appeared before our committee ...
... Economic Advisers] testified before the Joint Economic Committee that the financial crisis of 2008 was five times stronger than the shocks in the Great Depression. After the AIG bailout, and to show how out of control it was—that no one understood what was happening—AIG appeared before our committee ...
146s10_l16a.pdf
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
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.