On the Link between Dollarization and Inflation: Evidence from Turkey* by
... dollarization owing to the high elasticity of substitution between domestic and foreign currency. The remainder of the paper is organized as follows. Section 2 provides a brief description of the main macroeconomic and institutional factors affecting the dollarization process in Turkey. Section 3 di ...
... dollarization owing to the high elasticity of substitution between domestic and foreign currency. The remainder of the paper is organized as follows. Section 2 provides a brief description of the main macroeconomic and institutional factors affecting the dollarization process in Turkey. Section 3 di ...
On the Link between Dollarization and Inflation: Evidence
... dollarization owing to the high elasticity of substitution between domestic and foreign currency. The remainder of the paper is organized as follows. Section 2 provides a brief description of the main macroeconomic and institutional factors affecting the dollarization process in Turkey. Section 3 di ...
... dollarization owing to the high elasticity of substitution between domestic and foreign currency. The remainder of the paper is organized as follows. Section 2 provides a brief description of the main macroeconomic and institutional factors affecting the dollarization process in Turkey. Section 3 di ...
China`s Exchange Rate Policy - Peterson Institute for International
... A. Independence of monetary policy A fixed exchange rate regime typically imposes a substantial constraint on a country’s monetary policy for the simple reason that if domestic interest rates diverge too much from foreign rates, the country could be subject to destabilizing capital flows. This is p ...
... A. Independence of monetary policy A fixed exchange rate regime typically imposes a substantial constraint on a country’s monetary policy for the simple reason that if domestic interest rates diverge too much from foreign rates, the country could be subject to destabilizing capital flows. This is p ...
The St~cture of Financial Markets and the Monetary Mechanism
... represents the effects of a monetary authority which has the power of fixing "exogenously" the nominal money supply through techniques which need not be specified at this point and equation (6) defines equlibrium in the money market. Equations (4)-(6) together define the Hicksian LM schedule, the co ...
... represents the effects of a monetary authority which has the power of fixing "exogenously" the nominal money supply through techniques which need not be specified at this point and equation (6) defines equlibrium in the money market. Equations (4)-(6) together define the Hicksian LM schedule, the co ...
essen-ch24-presentat..
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
The Interaction Between Monetary and Fiscal Policies
... adopted targets for the growth of the narrow monetary aggregate M1, and the federal government established an Anti-Inflation Program in the autumn of 1975, which was in force until 1978. Although the controls aspect of this program was aimed at facilitating the transition to lower inflation, the fis ...
... adopted targets for the growth of the narrow monetary aggregate M1, and the federal government established an Anti-Inflation Program in the autumn of 1975, which was in force until 1978. Although the controls aspect of this program was aimed at facilitating the transition to lower inflation, the fis ...
essen-ch24-presentat..
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
princ-ch34-presentation
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
... What happens to money demand? r is the opportunity cost of holding money. An increase in r reduces money demand: Households attempt to buy bonds to take advantage of the higher interest rate. Hence, an increase in r causes a decrease in money demand, other things equal. ...
Pushing on a string: US monetary policy is less powerful in recessions
... minimum of about half a percentage point below baseline two to three years after the shock, before beginning to recover. Inflation is initially sticky, but eventually falls by up to half a percentage point (at an annualised rate), and then begins to recover by the end of the horizon. The policy rate ...
... minimum of about half a percentage point below baseline two to three years after the shock, before beginning to recover. Inflation is initially sticky, but eventually falls by up to half a percentage point (at an annualised rate), and then begins to recover by the end of the horizon. The policy rate ...
Document
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
financial development and economic growth: a critical view
... interest rates, and active monetary intervention) that had been established in developing countries in the post-War decades has become a core element of the economic reform and structural adjustment process led by the international financial institutions. The new standard model of financial structur ...
... interest rates, and active monetary intervention) that had been established in developing countries in the post-War decades has become a core element of the economic reform and structural adjustment process led by the international financial institutions. The new standard model of financial structur ...
THE GLOBALIZATION PARADOX, by Dani Rodrik
... their traditional focus on import restrictions and impinged on domestic policies; controls on international capital markets were removed; and developing nations came under severe pressure to open their markets to foreign trade and investment. In effect, economic globalization became an end in itself ...
... their traditional focus on import restrictions and impinged on domestic policies; controls on international capital markets were removed; and developing nations came under severe pressure to open their markets to foreign trade and investment. In effect, economic globalization became an end in itself ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... Over the past twenty years there has been a marked shift toward more flexible exchange rate regimes and more open capital accounts by both industrial and emerging market countries. Exchange rate targets accounted for over half of monetary policy regimes in 1985, but declined to just 5 percent in 200 ...
... Over the past twenty years there has been a marked shift toward more flexible exchange rate regimes and more open capital accounts by both industrial and emerging market countries. Exchange rate targets accounted for over half of monetary policy regimes in 1985, but declined to just 5 percent in 200 ...
M-19
... (a very good year) Château Lafite Rothschild to complete her wine cellar. If the price of the wine in France is 1,000 euros and the exchange rate is $1.08 to the euro, the wine will cost Wanda $1,080 ( 1,000 euros $1.08/euro). Now suppose that Wanda delays her purchase by two months, at which tim ...
... (a very good year) Château Lafite Rothschild to complete her wine cellar. If the price of the wine in France is 1,000 euros and the exchange rate is $1.08 to the euro, the wine will cost Wanda $1,080 ( 1,000 euros $1.08/euro). Now suppose that Wanda delays her purchase by two months, at which tim ...
Document
... traders, portfolio managers, and policy makers because of the relatively higher price than that observed through their historical trend and dynamic correlation. Gold and oil are being used as hedge by investors and traders to fight the increasing risk after the financial crisis of 2008. However, usi ...
... traders, portfolio managers, and policy makers because of the relatively higher price than that observed through their historical trend and dynamic correlation. Gold and oil are being used as hedge by investors and traders to fight the increasing risk after the financial crisis of 2008. However, usi ...
GLOBALIZATION
... currency, you can find the price of the U.S. dollar in that currency by taking the reciprocal; 1.67 = 1/.59 ...
... currency, you can find the price of the U.S. dollar in that currency by taking the reciprocal; 1.67 = 1/.59 ...
Chapter 16 Macroeconomic Policy in an open economy
... • Foster balanced economic growth • China and Japan - rely less on exports and more on domestic consumption • The U.S. - curtail its budget deficit • Europe - difficult structural reforms to increase business investment © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or dup ...
... • Foster balanced economic growth • China and Japan - rely less on exports and more on domestic consumption • The U.S. - curtail its budget deficit • Europe - difficult structural reforms to increase business investment © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or dup ...
From Bimetallism to Monetarism
... and was formulated as a menu for policy choice in the 1960s, discussions about anti-inflation policies focussed not so much on picking an optimal point on the curve and using monetary policy to get there, as on finding means, usually involving structural policies, or wage-price guideposts, to shift ...
... and was formulated as a menu for policy choice in the 1960s, discussions about anti-inflation policies focussed not so much on picking an optimal point on the curve and using monetary policy to get there, as on finding means, usually involving structural policies, or wage-price guideposts, to shift ...
Transmission Lags of Monetary Policy: A Meta
... transmission. Ehrmann (2000) examines 13 member countries of the European Union and finds relatively fast transmission to prices for most of the countries: between 2 and 8 quarters. Only France, Italy, and the United Kingdom exhibit transmission lags between 12 and 20 quarters. In contrast, Mojon an ...
... transmission. Ehrmann (2000) examines 13 member countries of the European Union and finds relatively fast transmission to prices for most of the countries: between 2 and 8 quarters. Only France, Italy, and the United Kingdom exhibit transmission lags between 12 and 20 quarters. In contrast, Mojon an ...
CHAP1.WP (Word5)
... In Section 7-1 he also introduces the concept of “trilemma” as a unifying concept for the chapter. This is the inability of a country to maintain independent control of its monetary policy under conditions of fixed exchange rates and free capital flows with other countries. Gordon explains how the U ...
... In Section 7-1 he also introduces the concept of “trilemma” as a unifying concept for the chapter. This is the inability of a country to maintain independent control of its monetary policy under conditions of fixed exchange rates and free capital flows with other countries. Gordon explains how the U ...
The impact of international capital flows on the South Africa
... surge in private sector access to credit. The private sector has not utilized their improved access to credit for productive investment. Instead, easier access to credit has supported existing negative trends in the economy. For example, the exuberance in the stock market experienced from the early ...
... surge in private sector access to credit. The private sector has not utilized their improved access to credit for productive investment. Instead, easier access to credit has supported existing negative trends in the economy. For example, the exuberance in the stock market experienced from the early ...
Fundamentals of Central Banking – Lessons from the
... Almost from their beginnings, over three centuries ago, the ultimate objective of central banks has been to support sustainable economic growth through the pursuit of price stability and financial stability. Over time, however, the balance of each goal has fluctuated according to existing cultural, ...
... Almost from their beginnings, over three centuries ago, the ultimate objective of central banks has been to support sustainable economic growth through the pursuit of price stability and financial stability. Over time, however, the balance of each goal has fluctuated according to existing cultural, ...
A Classical View of the Business Cycle
... Along those lines, Fisher (1925) refers to Holbrook Working’s then-forthcoming 1926 paper, which found that movements in bank deposits tended to lead movements in the aggregate price level. In related research, Working (1923) uses a Quantity Theory framework complementary to Fisher’s to characterize ...
... Along those lines, Fisher (1925) refers to Holbrook Working’s then-forthcoming 1926 paper, which found that movements in bank deposits tended to lead movements in the aggregate price level. In related research, Working (1923) uses a Quantity Theory framework complementary to Fisher’s to characterize ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER International Seminar on Macroeconomics 2012
... such as financial frictions that prevent the private sector from borrowing abroad, or deviations from rational expectations that mitigate or delay the private sector’s Ricardian response to reserve accumulation. Imperfect capital mobility could also be policy-induced and result from capital account ...
... such as financial frictions that prevent the private sector from borrowing abroad, or deviations from rational expectations that mitigate or delay the private sector’s Ricardian response to reserve accumulation. Imperfect capital mobility could also be policy-induced and result from capital account ...
View/Open
... on these two objectives changing from time to time. Apart from these two main goals, the Reserve Bank of India (RBI) has also been engaged in maintaining orderly conditions in the foreign exchange market to curb destabilizing and self-fulfilling speculative activities (Reddy, 1999a). It is in this c ...
... on these two objectives changing from time to time. Apart from these two main goals, the Reserve Bank of India (RBI) has also been engaged in maintaining orderly conditions in the foreign exchange market to curb destabilizing and self-fulfilling speculative activities (Reddy, 1999a). It is in this c ...
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.