The return of deflation: what can central banks do?
... (and even of hyperinflation), while there has been only limited experience of deflation (and none of hyperdeflation). This fourth point will turn out to be relevant also to the interpretation of the third point. The proximate cause of deflation is the failure of nominal demand to grow at least at th ...
... (and even of hyperinflation), while there has been only limited experience of deflation (and none of hyperdeflation). This fourth point will turn out to be relevant also to the interpretation of the third point. The proximate cause of deflation is the failure of nominal demand to grow at least at th ...
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 ...
Chapter 22
... developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are always facing current account deficit. Even though, these countries are very p ...
... developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are always facing current account deficit. Even though, these countries are very p ...
“Good Governance” in Monetary Policy and the Negative Real
... focuses excessively on inflation and does not pay sufficient attention to real outcomes. The empirical evidence available so far is not able to resolve the dispute. The performance of inflation targeters seem to be for the most part favorable, but it is also subject to controversy (as I will discuss ...
... focuses excessively on inflation and does not pay sufficient attention to real outcomes. The empirical evidence available so far is not able to resolve the dispute. The performance of inflation targeters seem to be for the most part favorable, but it is also subject to controversy (as I will discuss ...
Should We Worry about Deflation? Prevention and
... (and even of hyperinflation), while there has been only limited experience of deflation (and none of hyperdeflation). This fourth point will turn out to be relevant also to the interpretation of the third point. The proximate cause of deflation is the failure of nominal demand to grow at least at th ...
... (and even of hyperinflation), while there has been only limited experience of deflation (and none of hyperdeflation). This fourth point will turn out to be relevant also to the interpretation of the third point. The proximate cause of deflation is the failure of nominal demand to grow at least at th ...
Download Executive Summary
... flight, the net errors and omissions or the Hot Money Narrow (HMN) measure, which is part of the balance of payments, permits a sharper focus on illicit flows. Hence, we use the HMN method in line with those followed by the Central Bank of Russia and used in IMF country reports. That said, we point ...
... flight, the net errors and omissions or the Hot Money Narrow (HMN) measure, which is part of the balance of payments, permits a sharper focus on illicit flows. Hence, we use the HMN method in line with those followed by the Central Bank of Russia and used in IMF country reports. That said, we point ...
Exchange Control in Italy and Bulgaria in the Interwar Period
... as an integral part of these mechanisms. The second view was held by those who believed that a new era of economic relationships had come, which required new rules (for active government interference). This was a time when the world economy was going through an extremely unstable transition that end ...
... as an integral part of these mechanisms. The second view was held by those who believed that a new era of economic relationships had come, which required new rules (for active government interference). This was a time when the world economy was going through an extremely unstable transition that end ...
70013029I_en.pdf
... field. The point of view taken in the present article is that this attitude should be incorporated into the analysis itself, because it has very concrete implications: it is important to bear in mind that the decisions of the economic agents and policy-makers are made in contexts where perceptions a ...
... field. The point of view taken in the present article is that this attitude should be incorporated into the analysis itself, because it has very concrete implications: it is important to bear in mind that the decisions of the economic agents and policy-makers are made in contexts where perceptions a ...
NBER WORKING PAPER SERIES DYNAMIC STRATEGIC MONETARY POLICIES AND COORDINATION IN INTERDEPENDENT ECONOMIES
... the so-called feedback information pattern (for both countries) as dictated by (1 3b)? Using the recursive technique given in Basar and Olsder (1982, Chapter 6), the solution of the dynamic game can be shown to be unique, and linear in the current value of the state, yielding the expressions given b ...
... the so-called feedback information pattern (for both countries) as dictated by (1 3b)? Using the recursive technique given in Basar and Olsder (1982, Chapter 6), the solution of the dynamic game can be shown to be unique, and linear in the current value of the state, yielding the expressions given b ...
FROM LIBERALIZATION TO INVESTMENT AND JOBS: LOST IN TRANSLATION A.
... Growing competition among labour located in different countries, together with increased international mobility of capital, is putting pressure on labour and creating popular backlash against economic integration almost everywhere, including in industrial countries. ...
... Growing competition among labour located in different countries, together with increased international mobility of capital, is putting pressure on labour and creating popular backlash against economic integration almost everywhere, including in industrial countries. ...
The Microstructure of Foreign Exchange Markets
... this general macro approach, the focus of the models is on financial asset markets, and therefore the emphasis is on the behavior of agents in these asset markets. There is a tension between the all-encompassing macro approach and the need to highlight the dynamics of asset markets. How is this tens ...
... this general macro approach, the focus of the models is on financial asset markets, and therefore the emphasis is on the behavior of agents in these asset markets. There is a tension between the all-encompassing macro approach and the need to highlight the dynamics of asset markets. How is this tens ...
Multiple Choice Questions
... developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are always facing current account deficit. Even though, these countries are very p ...
... developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are always facing current account deficit. Even though, these countries are very p ...
Sunrise of currency reform - The Kubatana Archive Site
... We are keen to see the Infrastructure Development Bank and other market players get their act together and start playing their developmental roles much sooner rather than later because, quite frankly, some of these interventions squarely belong more to those institutions than to us as a Central Bank ...
... We are keen to see the Infrastructure Development Bank and other market players get their act together and start playing their developmental roles much sooner rather than later because, quite frankly, some of these interventions squarely belong more to those institutions than to us as a Central Bank ...
Working Paper No. 288 - Financial Performance and
... the Fed would begin to curtail, or "taper", the asset purchase program commonly known as QE3. In subsequent post-meeting statements, the Fed rea¢ rmed their commitment to tapering the asset purchase program. Many had concluded that asset purchase programs like QE3 led to extraordinary capital in‡ows ...
... the Fed would begin to curtail, or "taper", the asset purchase program commonly known as QE3. In subsequent post-meeting statements, the Fed rea¢ rmed their commitment to tapering the asset purchase program. Many had concluded that asset purchase programs like QE3 led to extraordinary capital in‡ows ...
Chakriya Bowman Economies
... There is a sound economic basis for the proposition that Australia’s influence in Asia should have some effect on regional currencies. The last decade of the 20th century saw a significant increase in Australian trade with East Asia, both in exports to and imports from the East Asian region. Total t ...
... There is a sound economic basis for the proposition that Australia’s influence in Asia should have some effect on regional currencies. The last decade of the 20th century saw a significant increase in Australian trade with East Asia, both in exports to and imports from the East Asian region. Total t ...
David
... characteristic of the foreign exchange market. Allowing for imperfect capital mobility in the Dornbusch model, they raise the possibility of undershooting, where the initial depreciation, below its long run equilibrium value, is followed by further depreciation until the steady state is attained.3 ...
... characteristic of the foreign exchange market. Allowing for imperfect capital mobility in the Dornbusch model, they raise the possibility of undershooting, where the initial depreciation, below its long run equilibrium value, is followed by further depreciation until the steady state is attained.3 ...
Fixing Argentina Executive Summary by Kurt Schuler No. 445
... make fewer mistakes than the Federal Reserve over the long run, though? Abundant experience indicates that it would not. In the final, loosest sense, a currency is said to be overvalued if, expressed in a common currency, some measure of prices has increased more in one country than another over a p ...
... make fewer mistakes than the Federal Reserve over the long run, though? Abundant experience indicates that it would not. In the final, loosest sense, a currency is said to be overvalued if, expressed in a common currency, some measure of prices has increased more in one country than another over a p ...
Measuring Market Exposure - NYU Stern School of Business
... around the world both by acquisitions and by the construction of new facilities. During the year, new facilities were quickly brought to full production in Manchester, England, and Austin, Texas, while additional technological capability was installed in Singapore. These advanced capabilities have e ...
... around the world both by acquisitions and by the construction of new facilities. During the year, new facilities were quickly brought to full production in Manchester, England, and Austin, Texas, while additional technological capability was installed in Singapore. These advanced capabilities have e ...
Fixed Exchange Rates and the Trilemma
... • It is macroeconomic because it focuses on key economy-wide variables such as exchange rates, prices, interest rates, income, wealth, and the current account. • It is international because a deeper understanding of the global economy emerges only when the interconnections among nations are fully co ...
... • It is macroeconomic because it focuses on key economy-wide variables such as exchange rates, prices, interest rates, income, wealth, and the current account. • It is international because a deeper understanding of the global economy emerges only when the interconnections among nations are fully co ...
Financial `deglobalization`?: capital flows, banks
... especially bank flows? I will show that international bank flows no longer appear to respond to similar drivers as before the crisis (namely global risk). Finally, what are the implications of this deglobalization in banking flows for the United Kingdom and monetary policy? I will discuss a number o ...
... especially bank flows? I will show that international bank flows no longer appear to respond to similar drivers as before the crisis (namely global risk). Finally, what are the implications of this deglobalization in banking flows for the United Kingdom and monetary policy? I will discuss a number o ...
Doc - Europa.eu
... The extent of international flows of capital and of the information needed to make investment decisions can provide further evidence of international economic interdependence. Today, gross flows of short-term capital in particular are huge by long-term historical standards. The latest Bank of Intern ...
... The extent of international flows of capital and of the information needed to make investment decisions can provide further evidence of international economic interdependence. Today, gross flows of short-term capital in particular are huge by long-term historical standards. The latest Bank of Intern ...
as a PDF
... account the inherent uncertainty in assigning value judgment about macroeconomic policies (which will be explained more clearly below). In the empirical part of this paper, we undertake a systematic examination of the relationship between international capital flows and domestic macroeconomic polici ...
... account the inherent uncertainty in assigning value judgment about macroeconomic policies (which will be explained more clearly below). In the empirical part of this paper, we undertake a systematic examination of the relationship between international capital flows and domestic macroeconomic polici ...
27.4 Flexible Exchange Rates
... Under flexible exchange rates, an imbalance between debits and credits arising from shifts in currency demand and/or supply is accommodated by changes in currency prices rather than through the special financial borrowings or reserve movements necessary with fixed rates. In a pure flexible-exchange ...
... Under flexible exchange rates, an imbalance between debits and credits arising from shifts in currency demand and/or supply is accommodated by changes in currency prices rather than through the special financial borrowings or reserve movements necessary with fixed rates. In a pure flexible-exchange ...
Money and Inflation in Colonial Massachusetts
... money supply is the key determinant of the rate of inflation. An extreme (but not uncommon) version of this view is that inflation can be controlled merely by preventing rapid growth of money, independently of other forces at work in an economy. The idea that rates of money growth and inflation are ...
... money supply is the key determinant of the rate of inflation. An extreme (but not uncommon) version of this view is that inflation can be controlled merely by preventing rapid growth of money, independently of other forces at work in an economy. The idea that rates of money growth and inflation are ...
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.