Foreign Currency Borrowing: The Case of Hungary
... being a main target for carry trade investors.3 In addition, economic theory predicts that longterm real convergence results in real appreciation (Balassa-Samuelson effect). Finally, Central and Eastern European currencies tended to overshoot in their depreciation following transition. The return to ...
... being a main target for carry trade investors.3 In addition, economic theory predicts that longterm real convergence results in real appreciation (Balassa-Samuelson effect). Finally, Central and Eastern European currencies tended to overshoot in their depreciation following transition. The return to ...
A Melton William and
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
Monetary policy, asset prices and actuarial practice
... clearly, this is also important for understanding the relationship between monetary policy and financial markets – especially as the effect on interest rates may not be the same in the short-term and in the long-term. 4. Monetarism, the transmission mechanism and asset prices Current exponents of mo ...
... clearly, this is also important for understanding the relationship between monetary policy and financial markets – especially as the effect on interest rates may not be the same in the short-term and in the long-term. 4. Monetarism, the transmission mechanism and asset prices Current exponents of mo ...
The IMF Classification of Official Exchange Rate Regimes
... particular more flexible wages and prices, and more mobile factors of production. The fulfillment of the criteria will become endogenous to the regime itself. A third postOCA case for common currencies or, alternatively, for adopting an external currency derives from the circumstances surrounding co ...
... particular more flexible wages and prices, and more mobile factors of production. The fulfillment of the criteria will become endogenous to the regime itself. A third postOCA case for common currencies or, alternatively, for adopting an external currency derives from the circumstances surrounding co ...
Monetary Policy with Head Winds: Issues and Trade-offs
... Notes: Panel C reports the average quarterly variation (in percentage points of GDP) of the cyclically-adjusted primary balance of LAC-6 countries during the global downturn associated to the 2008 - 2009 financial crisis and during previous crisis. Negative (positive) values indicate an expansion (c ...
... Notes: Panel C reports the average quarterly variation (in percentage points of GDP) of the cyclically-adjusted primary balance of LAC-6 countries during the global downturn associated to the 2008 - 2009 financial crisis and during previous crisis. Negative (positive) values indicate an expansion (c ...
Money And Credit
... At about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of this century. China, in 1,000 B.C., produced mock cowry shells at the end of the Stone Age. They can be thought of as the original developme ...
... At about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of this century. China, in 1,000 B.C., produced mock cowry shells at the end of the Stone Age. They can be thought of as the original developme ...
Monetary Policy with Head Winds: Issues and Trade-offs
... Notes: Panel C reports the average quarterly variation (in percentage points of GDP) of the cyclically-adjusted primary balance of LAC-6 countries during the global downturn associated to the 2008 - 2009 financial crisis and during previous crisis. Negative (positive) values indicate an expansion (c ...
... Notes: Panel C reports the average quarterly variation (in percentage points of GDP) of the cyclically-adjusted primary balance of LAC-6 countries during the global downturn associated to the 2008 - 2009 financial crisis and during previous crisis. Negative (positive) values indicate an expansion (c ...
"Capital Account Liberalization
... differed from one economic and political era to another. It is wrong to assume that controls on the movement of capital have been gradually lifted over the decades. There have been periods when capital has moved from one country to another with a greater freedom than it does today. Such was the gold ...
... differed from one economic and political era to another. It is wrong to assume that controls on the movement of capital have been gradually lifted over the decades. There have been periods when capital has moved from one country to another with a greater freedom than it does today. Such was the gold ...
Economic Review no 2 - National Bank of Rwanda
... (+31.25%) and that of the nominal GDP (+13%). This difference is explained by the fast monetization of the economy that took place in 2007, while maintaining inflation at a moderate level. Money supply increased by 31.25%, from RWF 285.6 billion to RWF 374.9 billion between December 2006 and Decembe ...
... (+31.25%) and that of the nominal GDP (+13%). This difference is explained by the fast monetization of the economy that took place in 2007, while maintaining inflation at a moderate level. Money supply increased by 31.25%, from RWF 285.6 billion to RWF 374.9 billion between December 2006 and Decembe ...
Optimum Currency Area Theory and EMU
... Figure 2:4 Endogeneity of OCA's ............................................................................................ 22 Figure 4:1 Labour Mobility in Europe and the USA ............................................................... 30 Figure 4:1b Labour Mobility Criterion: US vs. the EMU .. ...
... Figure 2:4 Endogeneity of OCA's ............................................................................................ 22 Figure 4:1 Labour Mobility in Europe and the USA ............................................................... 30 Figure 4:1b Labour Mobility Criterion: US vs. the EMU .. ...
Monetary Policy Statement June 2015
... headline inflation over the past three years. Behind the negative tradables inflation is the slow global economic recovery, which has caused world inflation to be low and helped to push the value of the New Zealand dollar to an unsustainably high level, further suppressing inflation. Annual non-trad ...
... headline inflation over the past three years. Behind the negative tradables inflation is the slow global economic recovery, which has caused world inflation to be low and helped to push the value of the New Zealand dollar to an unsustainably high level, further suppressing inflation. Annual non-trad ...
Welcome to the course on Currencies.
... currency. At the posting day of the invoice the exchange rate was 0.5. The system converts the 10 units foreign currency into 20 units local currency and posts both values in parallel on the credit side of the vendor account. At the time when you post the payment for this invoice the exchange rate h ...
... currency. At the posting day of the invoice the exchange rate was 0.5. The system converts the 10 units foreign currency into 20 units local currency and posts both values in parallel on the credit side of the vendor account. At the time when you post the payment for this invoice the exchange rate h ...
The relevance of Keynes - Dr. Robert E. Looney Homepage
... marginal efficiency of capital (MEC)—roughly, the expected rate of return over cost—as compared to the rate of interest. If MEC is greater than the rate of interest, investment takes place; if less, it falls. In the classical picture, the rate of interest, being the price that equilibrates saving an ...
... marginal efficiency of capital (MEC)—roughly, the expected rate of return over cost—as compared to the rate of interest. If MEC is greater than the rate of interest, investment takes place; if less, it falls. In the classical picture, the rate of interest, being the price that equilibrates saving an ...
Overview: Miracle, Crisis and Beyond
... borrowers, and create fresh human capital that cascades down to lower-income countries and thus keeps worldwide structural change moving”. According to this view, a top priority for OECD countries is to ‘keep their own house in order’ by maintaining macroeconomic health, providing private and public ...
... borrowers, and create fresh human capital that cascades down to lower-income countries and thus keeps worldwide structural change moving”. According to this view, a top priority for OECD countries is to ‘keep their own house in order’ by maintaining macroeconomic health, providing private and public ...
Current Account
... 32. If the exchange rate is currently E3, the dollar will: a. appreciate as the market moves towards equilibrium. b. depreciate as the market moves towards equilibrium. c. be more valuable as the market moves towards equilibrium. d. will remain unchanged in value as the market moves towards equilibr ...
... 32. If the exchange rate is currently E3, the dollar will: a. appreciate as the market moves towards equilibrium. b. depreciate as the market moves towards equilibrium. c. be more valuable as the market moves towards equilibrium. d. will remain unchanged in value as the market moves towards equilibr ...
Report on China's Foreign Exchange Reserves
... (i) Further impel the Reforms of Foreign Exchange Administration System At present, the key point of further impel the Reforms of Foreign Exchange Administration System is how to open capital account gradually and systematically. Opening capital account is a gradual process, and the selection of thi ...
... (i) Further impel the Reforms of Foreign Exchange Administration System At present, the key point of further impel the Reforms of Foreign Exchange Administration System is how to open capital account gradually and systematically. Opening capital account is a gradual process, and the selection of thi ...
Spillover Notes, Issue 2: Spillovers from Dollar Appreciation
... a normalization of Federal Reserve monetary policy in the next few months. In contrast, growth in the euro area and Japan is still subdued, and their monetary policies are easing further. Reflecting these divergences in the outlook and expected monetary policies, the USD has appreciated considerably ...
... a normalization of Federal Reserve monetary policy in the next few months. In contrast, growth in the euro area and Japan is still subdued, and their monetary policies are easing further. Reflecting these divergences in the outlook and expected monetary policies, the USD has appreciated considerably ...
Was ECB`s monetary policy optimal? - Fritz Breuss
... dialogue and should be “... in no way misunderstood as an ex ante co-ordination of monetary and fiscal policy stances. In the same vein, the regular and structured dialogue between the ECB and national governments clearly excludes any ex ante policy co-ordination or joint agreements aimed at achievi ...
... dialogue and should be “... in no way misunderstood as an ex ante co-ordination of monetary and fiscal policy stances. In the same vein, the regular and structured dialogue between the ECB and national governments clearly excludes any ex ante policy co-ordination or joint agreements aimed at achievi ...
The Implications of Macroprudential Policies for International Policy
... different—with non-linear and asymmetric dynamics—possessing strong adverse amplification effects, higher correlation of asset prices, fire sales/liquidity shortages, and spending significant time in a crisis state once moved there (Brunnermeier and Sannikov (2013)). Moreover, periods of lower risk ...
... different—with non-linear and asymmetric dynamics—possessing strong adverse amplification effects, higher correlation of asset prices, fire sales/liquidity shortages, and spending significant time in a crisis state once moved there (Brunnermeier and Sannikov (2013)). Moreover, periods of lower risk ...
The UK Current Account Deficit: Risky or Risk
... extended period of heightened UK uncertainty (as investors would require compensation). Moreover, the magnitude of this risk sharing is moderate, so that even though it reduces vulnerabilities related to the current account deficit and international investment position, it is unlikely to fully mitig ...
... extended period of heightened UK uncertainty (as investors would require compensation). Moreover, the magnitude of this risk sharing is moderate, so that even though it reduces vulnerabilities related to the current account deficit and international investment position, it is unlikely to fully mitig ...
Special Section—Policy Options for Managing Capital Inflows in
... the improvement in sovereign risk ratings—in particular, the region is seen as less vulnerable to currency crises than in the late 1990s. In fact, another pull factor is that there is a palpable perception among investors that at least some East Asian currencies are undervalued. Combined with active ...
... the improvement in sovereign risk ratings—in particular, the region is seen as less vulnerable to currency crises than in the late 1990s. In fact, another pull factor is that there is a palpable perception among investors that at least some East Asian currencies are undervalued. Combined with active ...
Financial Structure and the Impact of Monetary Policy on Property
... 1980s, in many cases associated with liberalisation and deregulation of the housing finance sector. Residential property prices were subsequently weak or fell in the 1990s, following the US recession in 1990-1991 and the episode of high interest rates in many European countries after the turmoil in ...
... 1980s, in many cases associated with liberalisation and deregulation of the housing finance sector. Residential property prices were subsequently weak or fell in the 1990s, following the US recession in 1990-1991 and the episode of high interest rates in many European countries after the turmoil in ...
Monetary Policy Statement December 2010 Contents
... prices may decline a little further in the near term. This continued household and business caution suggests current low interest rates are having a less stimulatory effect than in the past. On the positive side, activity in New Zealand’s trading partners continues to expand. Growth in the Asia-Paci ...
... prices may decline a little further in the near term. This continued household and business caution suggests current low interest rates are having a less stimulatory effect than in the past. On the positive side, activity in New Zealand’s trading partners continues to expand. Growth in the Asia-Paci ...
How Successful Has Inflation Targeting Been?
... rates seem to have declined since target adoption without any major effect on output. These results can be interpreted as consistent with a greater direct response of inflation to monetary policy with fewer output effects along the way, given the movement of interest rates at or below those forecast ...
... rates seem to have declined since target adoption without any major effect on output. These results can be interpreted as consistent with a greater direct response of inflation to monetary policy with fewer output effects along the way, given the movement of interest rates at or below those forecast ...
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.