Eco 460: International Finance Administrivia Readings
... “The United States has never run such large current account deficits and no single nation’s deficit has ever bulked nearly as large relative to the global economy.” Former Treasury Secretary Larry Summers, Oct 3, 2004 “The imbalances between the United States and the rest of the world are not sustai ...
... “The United States has never run such large current account deficits and no single nation’s deficit has ever bulked nearly as large relative to the global economy.” Former Treasury Secretary Larry Summers, Oct 3, 2004 “The imbalances between the United States and the rest of the world are not sustai ...
A Note on Unconventional Monetary Policy in HANK
... is generally less effective in HANK than is conventional monetary policy at boosting aggregate consumption in the short run. The crucial distinction between RANK and HANK is the identity of the households who are responsible for the initial impulse from a conventional monetary shock into aggregate d ...
... is generally less effective in HANK than is conventional monetary policy at boosting aggregate consumption in the short run. The crucial distinction between RANK and HANK is the identity of the households who are responsible for the initial impulse from a conventional monetary shock into aggregate d ...
Module - 13 Foreign Exchange Quotations
... every other bank is quoting the same price. this is the price used by the Central Bank. large banks will quote their own rate while small banks will follow the lead of Citibank. most banks will probably be in that range. ...
... every other bank is quoting the same price. this is the price used by the Central Bank. large banks will quote their own rate while small banks will follow the lead of Citibank. most banks will probably be in that range. ...
PPT
... • A change in the level of the money supply results in a change in the price level. • A change in the money supply growth rate results in a change in the growth rate of prices (inflation). – Other things equal, a constant growth rate in the money supply results in a persistent growth rate in prices ...
... • A change in the level of the money supply results in a change in the price level. • A change in the money supply growth rate results in a change in the growth rate of prices (inflation). – Other things equal, a constant growth rate in the money supply results in a persistent growth rate in prices ...
The Effects of Exchange Controls on the Venezuelan
... investors in New York has prompted little further academic research on the subject. While more information might arise as the event becomes more removed in time, I believe it is important now to record the effects as they are taking place. Venezuelans are generally divided on the impetus for the cr ...
... investors in New York has prompted little further academic research on the subject. While more information might arise as the event becomes more removed in time, I believe it is important now to record the effects as they are taking place. Venezuelans are generally divided on the impetus for the cr ...
Multidimensional character of globalisation
... increasing need for capital and trade flows, nation-states decided to form integration groups. Economic integration means an overall process of merging separate countries in bigger groups or regions within states [7, p. 241]. Integration can vary from preferential trade agreements (liberalization of ...
... increasing need for capital and trade flows, nation-states decided to form integration groups. Economic integration means an overall process of merging separate countries in bigger groups or regions within states [7, p. 241]. Integration can vary from preferential trade agreements (liberalization of ...
Foreign Exchange Outlook - Global Banking and Markets
... outlook. We think additional easing measures are likely in the coming months. The contrast between tighter (albeit gradual) monetary policy in the US and very loose (and likely looser) monetary policy in the Eurozone will drive the euro (EUR) lower. We target EURUSD at 1.05 by year-end. Weakness bel ...
... outlook. We think additional easing measures are likely in the coming months. The contrast between tighter (albeit gradual) monetary policy in the US and very loose (and likely looser) monetary policy in the Eurozone will drive the euro (EUR) lower. We target EURUSD at 1.05 by year-end. Weakness bel ...
Labour Markets Trends, Financial Globalization and the current
... First, several elements of the ongoing process of globalization, especially the unfettered markets, (including the labour market)2 and the growing inequality (resulting for many households indebting themselves in order to keep up spending on basic needs),3 have given rise to the current crisis. Ther ...
... First, several elements of the ongoing process of globalization, especially the unfettered markets, (including the labour market)2 and the growing inequality (resulting for many households indebting themselves in order to keep up spending on basic needs),3 have given rise to the current crisis. Ther ...
NBER WORKING PAPER SERIES DEPRESSION Peter F. Basile
... assertion that there had never been a liquidity trap "strange and inconsistent." In Hansen's view it was clear that "In fact, the United States during the thirties (especially from 1934 on) was a good example [of a liquidity trap]." American Keynesians were aware, of course, that there was a broad ...
... assertion that there had never been a liquidity trap "strange and inconsistent." In Hansen's view it was clear that "In fact, the United States during the thirties (especially from 1934 on) was a good example [of a liquidity trap]." American Keynesians were aware, of course, that there was a broad ...
Globalization
... Are you willing to admit that the world isn’t just for traveling anymore, and to embrace it as a career opportunity? Is it possible that you might stand out to a potential employer as someone with the skills to excel as a ...
... Are you willing to admit that the world isn’t just for traveling anymore, and to embrace it as a career opportunity? Is it possible that you might stand out to a potential employer as someone with the skills to excel as a ...
-ONETARY -ARCH #ONTENTS
... 7HETHER THERE IS ANY FURTHER TIGHTENING AHEAD WILL DEPEND ON HOW THE RISKS PLAY OUT OVER THE COMING PERIOD #ERTAINLY THE CURRENT OUTLOOK OFFERS LITTLE SCOPE FOR AN EASING OF POLICY IN THE FORESEEABLE FUTURE ...
... 7HETHER THERE IS ANY FURTHER TIGHTENING AHEAD WILL DEPEND ON HOW THE RISKS PLAY OUT OVER THE COMING PERIOD #ERTAINLY THE CURRENT OUTLOOK OFFERS LITTLE SCOPE FOR AN EASING OF POLICY IN THE FORESEEABLE FUTURE ...
Foreign Exchange Interventions at Zero Interest Rates
... monetary policies are completely impotent (e.g. Summers 1991). Some other economists, however, believe that there are still alternative routes for monetary policies to influence the price level and aggregate demand (e.g. Meltzer 1995). One of the potential routes, as often discussed in the literatu ...
... monetary policies are completely impotent (e.g. Summers 1991). Some other economists, however, believe that there are still alternative routes for monetary policies to influence the price level and aggregate demand (e.g. Meltzer 1995). One of the potential routes, as often discussed in the literatu ...
A Small Open Economy in the Great Depression: the Case of
... their interest rates whenever investors mistrusted their currencies. Thus, the usual constraints of the gold standard did not apply until 1936 for the case of Switzerland. In this paper, we try to account for these different aspects of the Swiss crisis. Our contribution is threefold. First, we prov ...
... their interest rates whenever investors mistrusted their currencies. Thus, the usual constraints of the gold standard did not apply until 1936 for the case of Switzerland. In this paper, we try to account for these different aspects of the Swiss crisis. Our contribution is threefold. First, we prov ...
Macroprudential policies, the long
... macroeconomic policies cannot directly influence all relevant macroeconomic variables. In particular, many macroeconomic variables are mainly determined in world markets and thus largely beyond the reach of national policymakers. Prudential regulations (not monetary policy) may need to address what ...
... macroeconomic policies cannot directly influence all relevant macroeconomic variables. In particular, many macroeconomic variables are mainly determined in world markets and thus largely beyond the reach of national policymakers. Prudential regulations (not monetary policy) may need to address what ...
MPSAS 4 The Effects of Changes In Foreign Exchange Rates
... Closing rate is the spot exchange rate at the reporting date. Exchange difference is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates. Exchange rate is the ratio of exchange for two currencies. Foreign currency is a c ...
... Closing rate is the spot exchange rate at the reporting date. Exchange difference is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates. Exchange rate is the ratio of exchange for two currencies. Foreign currency is a c ...
NBER WORKING PAPER SERIES POLICY RESPONSES TO EXCHANGE-RATE MOVEMENTS Laurence M. Ball
... This paper examines policy responses to exchange-rate movements in a simple model of an open economy. The optimal response of monetary policy to an exchange-rate change depends on the source of the change: on whether the underlying shock is a shift in capital flows, manufactured exports, or commodit ...
... This paper examines policy responses to exchange-rate movements in a simple model of an open economy. The optimal response of monetary policy to an exchange-rate change depends on the source of the change: on whether the underlying shock is a shift in capital flows, manufactured exports, or commodit ...
3 estimation of the impact of single monetary policy on - Hal-SHS
... currency, the Euro, within this zone. The change from national monetary policies directed by various independent central banks to a single monetary policy led by only one entity, the European Central Bank (ECB), raises some questions. Monetary authorities fear the existence of asymmetries in the rea ...
... currency, the Euro, within this zone. The change from national monetary policies directed by various independent central banks to a single monetary policy led by only one entity, the European Central Bank (ECB), raises some questions. Monetary authorities fear the existence of asymmetries in the rea ...
Too Different For Comfort
... spreading and storing of information) a century after that, completely changed the human experience. In short, Malthus described a world that, at the time he was putting pen to paper, no longer existed. This does not mean that his ideas were not powerful. To this day, we regularly meet disciples of ...
... spreading and storing of information) a century after that, completely changed the human experience. In short, Malthus described a world that, at the time he was putting pen to paper, no longer existed. This does not mean that his ideas were not powerful. To this day, we regularly meet disciples of ...
"Great Inflation" Lessons for Monetary Policy
... money and a commodity base, such as gold or silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term infl ...
... money and a commodity base, such as gold or silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term infl ...
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES
... reserves, the rate of growth in domestic credit, world interest rates etc). Hence empirical exercises relating the probability of a crisis to a large set of indicators cannot discriminate between different explanations for crises. Failure to identify the (potentially different) mechanisms underlying ...
... reserves, the rate of growth in domestic credit, world interest rates etc). Hence empirical exercises relating the probability of a crisis to a large set of indicators cannot discriminate between different explanations for crises. Failure to identify the (potentially different) mechanisms underlying ...
Criteria To Be Considered In Assessing A Country`s
... In this paper I compare and discuss the foreign exchange currency regime options available to Argentina (section 1) and then discuss the formal criteria to assess a country’s readiness for dollarization (section 2). Alternative exchange rate regimes have different implications for the amount of dome ...
... In this paper I compare and discuss the foreign exchange currency regime options available to Argentina (section 1) and then discuss the formal criteria to assess a country’s readiness for dollarization (section 2). Alternative exchange rate regimes have different implications for the amount of dome ...
Determinants of Foreign Portfolio Inflows
... At present, India is the world’s second fastest growing economy just after China. As Garg & Dua (2014) mentioned that, the portfolio equity flows to developing countries are increased five times from fourteen billion dollars to sixty seven billion dollars during the period of five years. This amount ...
... At present, India is the world’s second fastest growing economy just after China. As Garg & Dua (2014) mentioned that, the portfolio equity flows to developing countries are increased five times from fourteen billion dollars to sixty seven billion dollars during the period of five years. This amount ...
Much ado about EMU, Spring 2012
... Stability (and Growth) Pact • EMU “Ins” should maintain deficits of less than 3% GDP while in EMU or face penalties – German origins – Implies pro-cyclic fiscal policy (!) ...
... Stability (and Growth) Pact • EMU “Ins” should maintain deficits of less than 3% GDP while in EMU or face penalties – German origins – Implies pro-cyclic fiscal policy (!) ...
a counterfactual analysis
... Figure 2. Domestic financial factors: actual data versus assumed movements in the "no crisis" scenario ...
... Figure 2. Domestic financial factors: actual data versus assumed movements in the "no crisis" scenario ...
86007026I_en.pdf
... macroeconomic performance For a while, there was a doctrine —or rather a consensus— holding that either a full float or a hard peg (“dollarization” or monetary unions) was the best exchange rate policy to adopt, and this influenced much of the new literature about currency regimes. This consensus wa ...
... macroeconomic performance For a while, there was a doctrine —or rather a consensus— holding that either a full float or a hard peg (“dollarization” or monetary unions) was the best exchange rate policy to adopt, and this influenced much of the new literature about currency regimes. This consensus wa ...
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.