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 ...
The effects of currency appreciation on share
... exchange rate of the RMB against the Japanese Yen and, to a lesser extent, the exchange rate against both the US dollar and Hong Kong dollar and the Shanghai Composite Index since 2005 when the Chinese exchange rate regime changed from a peg system to a more flexible managed floating system. We foun ...
... exchange rate of the RMB against the Japanese Yen and, to a lesser extent, the exchange rate against both the US dollar and Hong Kong dollar and the Shanghai Composite Index since 2005 when the Chinese exchange rate regime changed from a peg system to a more flexible managed floating system. We foun ...
the role of the euro in sub-saharan Africa and in the CFA franc zone
... 1. The role of the euro in Sub-Saharan Africa (SSA) A currency can take on a number of functions at international level, the most important being those of trade invoicing, foreign reserve currency, reference currency for exchange rate arrangements, financial currency and parallel currency (European ...
... 1. The role of the euro in Sub-Saharan Africa (SSA) A currency can take on a number of functions at international level, the most important being those of trade invoicing, foreign reserve currency, reference currency for exchange rate arrangements, financial currency and parallel currency (European ...
Document
... 44. When the Fed uses an interest rate as an intermediate target, upward pressure on the interest rate is restricted by increasing the supply of reserves. This may lead to a. higher fed funds rates. b. steady economic growth. c. a downward slide into recession. d. higher inflation in the future. ANS ...
... 44. When the Fed uses an interest rate as an intermediate target, upward pressure on the interest rate is restricted by increasing the supply of reserves. This may lead to a. higher fed funds rates. b. steady economic growth. c. a downward slide into recession. d. higher inflation in the future. ANS ...
Currency Boards
... cases, when the banking system as a whole is being threatened by a lack of liquidity. If lending does occur, the amount should not be in greater than the amount of the excess foreign reserves (assets which are not being used to back the currency). In most currency boards, the lending is done one cas ...
... cases, when the banking system as a whole is being threatened by a lack of liquidity. If lending does occur, the amount should not be in greater than the amount of the excess foreign reserves (assets which are not being used to back the currency). In most currency boards, the lending is done one cas ...
Euro-Zone: Year One
... Recently, however, there has been an indication that the policy of indifference towards the euro’s value has changed. Following the decision in February 2000 to raise interest rates the ECB President stated that: Developments in the exchange rate of the euro are becoming a cause for concern with reg ...
... Recently, however, there has been an indication that the policy of indifference towards the euro’s value has changed. Following the decision in February 2000 to raise interest rates the ECB President stated that: Developments in the exchange rate of the euro are becoming a cause for concern with reg ...
tipec 04/1 - Trent University
... Within the last decade, political economists have begun to focus considerable attention on the politics of exchange rate policymaking.5 Although scholars working in this field share the same substantive interest, they have developed quite different ways to analyze the topic. One difference is method ...
... Within the last decade, political economists have begun to focus considerable attention on the politics of exchange rate policymaking.5 Although scholars working in this field share the same substantive interest, they have developed quite different ways to analyze the topic. One difference is method ...
House Prices, Interest Rates and Macroeconomic Fluctuations: International Evidence
... (in fact the actual output line and country factor lie on top of each other) while the mid 1990s recovery is largely global. For both interest rates, the two global factors seem to explain most of the movements in these variables. In a later section we will investigate whether or not this is due to ...
... (in fact the actual output line and country factor lie on top of each other) while the mid 1990s recovery is largely global. For both interest rates, the two global factors seem to explain most of the movements in these variables. In a later section we will investigate whether or not this is due to ...
exchange rate regimes for developing and emerging markets
... A currency board is central monetary institution that issues domestic currency only in exchange for assets of the currency to which the currency board country has chosen to peg. A currency board combines three elements: a fixed exchange rate between a country’s currency and an “anchor currency”, ...
... A currency board is central monetary institution that issues domestic currency only in exchange for assets of the currency to which the currency board country has chosen to peg. A currency board combines three elements: a fixed exchange rate between a country’s currency and an “anchor currency”, ...
Examining the Effects of Currency Depreciation on Trade Balance in
... bring consumers substitute imported goods into domestic products. However, this substitution is relied on the availability of similar domestically produced goods as well as the time period subsequent to the depreciation (Edwards and Willcox, 2003). For that circumstance, many developing economies ar ...
... bring consumers substitute imported goods into domestic products. However, this substitution is relied on the availability of similar domestically produced goods as well as the time period subsequent to the depreciation (Edwards and Willcox, 2003). For that circumstance, many developing economies ar ...
International Monetary Arrangements
... 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 (!) ...
Monetary Policy Statement March 2013 Contents
... Domestically, the economic recovery is uneven. While demand and output are expanding, the labour market remains weak. Economic growth and inflation are being shaped by a range of forces. The Canterbury rebuild is gaining momentum and residential investment and business and consumer confidence are in ...
... Domestically, the economic recovery is uneven. While demand and output are expanding, the labour market remains weak. Economic growth and inflation are being shaped by a range of forces. The Canterbury rebuild is gaining momentum and residential investment and business and consumer confidence are in ...
key issues in the choice of an appropriate monetary policy
... The monetary-targeting approach was in place up to 2006 and had two variants. The first was a credit-control approach, which was in place up to 1991. This approach targeted domestic credit directly in order to achieve money supply targets as an intermediate variable and finally inflation targets. Th ...
... The monetary-targeting approach was in place up to 2006 and had two variants. The first was a credit-control approach, which was in place up to 1991. This approach targeted domestic credit directly in order to achieve money supply targets as an intermediate variable and finally inflation targets. Th ...
Read the Full Article - Independent Institute
... once again.1 The euro–dollar exchange rate also weakened—it had already declined by 12.8 percent against the dollar since rising to its peak for the year at !1 to U.S. $1.48 in May 2011. The gloom that had spread over European (and American) financial markets since the beginning of the year but then ...
... once again.1 The euro–dollar exchange rate also weakened—it had already declined by 12.8 percent against the dollar since rising to its peak for the year at !1 to U.S. $1.48 in May 2011. The gloom that had spread over European (and American) financial markets since the beginning of the year but then ...
The current account balance: an analysis of the issues
... A current account deficit arises when a nation saves less than it invests, meeting the difference with inflows of foreign capital (see box). In the post-World War II period up to 1972, an era when exchange rates were mostly fixed throughout the world (usually to the US dollar), economists generally ...
... A current account deficit arises when a nation saves less than it invests, meeting the difference with inflows of foreign capital (see box). In the post-World War II period up to 1972, an era when exchange rates were mostly fixed throughout the world (usually to the US dollar), economists generally ...
Multilateral Aspects of Managing the Capital Account
... While a theoretical possibility, it may seem far-fetched to view large creditors or debtors as deliberately seeking to reduce supply or demand for capital in order to manipulate the world interest rate. But if one considers a broader array of policy interventions (rather than, say, just capital cont ...
... While a theoretical possibility, it may seem far-fetched to view large creditors or debtors as deliberately seeking to reduce supply or demand for capital in order to manipulate the world interest rate. But if one considers a broader array of policy interventions (rather than, say, just capital cont ...
Monetary Policy Statement December 2008 Contents
... Ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today’s decision. Activity in most of our trading partners is now expected to contract or grow only very slowly over the next few quarters. Economic activity in New Zeal ...
... Ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today’s decision. Activity in most of our trading partners is now expected to contract or grow only very slowly over the next few quarters. Economic activity in New Zeal ...
Nonneutrality of Money in Classical Monetary Thought
... adjustment. The next source of nonneutrality recognized by the classicals was the lag of nominal wages behind prices. The classic& explained how monetary expansion and the resulting rise of prices would, because of the stickiness of wages relative to prices, lower real wages, raise real profits, and ...
... adjustment. The next source of nonneutrality recognized by the classicals was the lag of nominal wages behind prices. The classic& explained how monetary expansion and the resulting rise of prices would, because of the stickiness of wages relative to prices, lower real wages, raise real profits, and ...
The Terrible Simplifers: Common Origins of Financial Crises and Persistent
... (ovata), elliptic (elliptica), cordate (cordata) oblanceolate (oblanceolata), etc, etc. Most people eating blackberries would be satisfied with recognizing just one species (Rubus fruticosus), but in my country (Norway) alone, botanists distinguish among a large number of species, for which the main ...
... (ovata), elliptic (elliptica), cordate (cordata) oblanceolate (oblanceolata), etc, etc. Most people eating blackberries would be satisfied with recognizing just one species (Rubus fruticosus), but in my country (Norway) alone, botanists distinguish among a large number of species, for which the main ...
Foreign currency assets and chargeable gains
... in the facts and circumstances in which the holding company operates causes the functional currency to change, or it could be due to the company changing its accounting standards. It would also happen when shares are transferred intra-group between two companies with different functional currencies. ...
... in the facts and circumstances in which the holding company operates causes the functional currency to change, or it could be due to the company changing its accounting standards. It would also happen when shares are transferred intra-group between two companies with different functional currencies. ...
NBER WORKING PAPER SERIES INFLATION: THEORY AND EVIDENCE Bennett 1. McCallum
... possible inflationary bias in the policy process. Finally, a few concluding comments are provided in Section 6. ...
... possible inflationary bias in the policy process. Finally, a few concluding comments are provided in Section 6. ...
the world trade organizatoin
... Reduction, GATT (General Agreement on Tariffs and Trades) ITO never made it because US Congress, controlled by Republicans (1948 election) failed to ratify it. ITO was dead. GATT remained and became a quasi organization. The GATT becomes an international organization The failure to adopt ITO—absence ...
... Reduction, GATT (General Agreement on Tariffs and Trades) ITO never made it because US Congress, controlled by Republicans (1948 election) failed to ratify it. ITO was dead. GATT remained and became a quasi organization. The GATT becomes an international organization The failure to adopt ITO—absence ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... exchanges of large real property are priced and take place in foreign currency (Uchitelle 1992a). Lack of external and internal convertibility slows economic growth. An unsound currency is not a good unit of account. Inflation distorts prices and makes business calculation more difficult. Without a ...
... exchanges of large real property are priced and take place in foreign currency (Uchitelle 1992a). Lack of external and internal convertibility slows economic growth. An unsound currency is not a good unit of account. Inflation distorts prices and makes business calculation more difficult. Without a ...
Optimal monetary and fiscal policy in a currency union Journal of
... That modelling choice stands in contrast with most optimizing sticky price models of the world economy found in the literature, where tractability often requires that they be restricted to two-country world economies.1 Yet, while such a framework may be useful to discuss issues pertaining to the lin ...
... That modelling choice stands in contrast with most optimizing sticky price models of the world economy found in the literature, where tractability often requires that they be restricted to two-country world economies.1 Yet, while such a framework may be useful to discuss issues pertaining to the lin ...
full text
... play that role. During the first half of the 1990s, the main focus was basically on the primary TB market. The role of CBE was just to organize the process of selling TBs to commercial banks and individuals on behalf of the government.10 During the latter half of the 1990s, the CBE aimed at maintain ...
... play that role. During the first half of the 1990s, the main focus was basically on the primary TB market. The role of CBE was just to organize the process of selling TBs to commercial banks and individuals on behalf of the government.10 During the latter half of the 1990s, the CBE aimed at maintain ...
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.