World Asset Markets and the Global Financial Cycle
... also consistent with Bekaert et al. (2013), who study the impact of US monetary policy on components of the VIX and with the results of Rey (2013); Passari and Rey (2015) and Bruno and Shin (2015a) who analyse the effect of US monetary policy on leverage and on the VIX. All these studies use small s ...
... also consistent with Bekaert et al. (2013), who study the impact of US monetary policy on components of the VIX and with the results of Rey (2013); Passari and Rey (2015) and Bruno and Shin (2015a) who analyse the effect of US monetary policy on leverage and on the VIX. All these studies use small s ...
Separating Monetary and Structural Causes of Inflation
... the monetary expansion to the large inflow of external resources during the Economic Recovery Program (ERP) of the early 1980s, which in turn generated strong inflationary pressures. Sowa and Kwakye (1993) add that the foreign inflows also led to the rehabilitation of factories and the import of fin ...
... the monetary expansion to the large inflow of external resources during the Economic Recovery Program (ERP) of the early 1980s, which in turn generated strong inflationary pressures. Sowa and Kwakye (1993) add that the foreign inflows also led to the rehabilitation of factories and the import of fin ...
Day 4 - Industrial theme - Exchange rates and growth, Kevin Nell
... a second-best strategy to alleviate distortions associated with 1) poor institutions and 2) market failures. • The first-best strategy is to address these distortions directly, but this is not easily done in developing countries. ...
... a second-best strategy to alleviate distortions associated with 1) poor institutions and 2) market failures. • The first-best strategy is to address these distortions directly, but this is not easily done in developing countries. ...
Arab Economic Transformation Amid Political Transitions
... stagnation and persistent sociopolitical strife. As economic realities fall behind populations’ expectations, there is a risk of increased discontent, which could further complicate the political transitions, impairing governments’ mandates and planning horizons and, consequently, their ability to i ...
... stagnation and persistent sociopolitical strife. As economic realities fall behind populations’ expectations, there is a risk of increased discontent, which could further complicate the political transitions, impairing governments’ mandates and planning horizons and, consequently, their ability to i ...
1 T ECONOMIC GROWTH OUTLOOK AND KEY CHALLENGES
... At the subregional level, growth performance is forecast to vary depending on the relative importance of domestic and external demand for particular subregions. South and South-West Asia, where domestic demand plays an important role, is expected to enjoy an economic growth rate of 5.9% in 2015 – a ...
... At the subregional level, growth performance is forecast to vary depending on the relative importance of domestic and external demand for particular subregions. South and South-West Asia, where domestic demand plays an important role, is expected to enjoy an economic growth rate of 5.9% in 2015 – a ...
Global Imbalances, Current Account Rebalancing and Exchange Rate Adjustments Yavuz ARSLAN
... Figure 1 plots the current account balance data from IMF-IFS database for both countries as percent of GDP from 1990 to 2010. Around 1990, both China and the US had smaller current account balances. Towards the end of the 1990s, China has started accumulating current account surpluses and the US sta ...
... Figure 1 plots the current account balance data from IMF-IFS database for both countries as percent of GDP from 1990 to 2010. Around 1990, both China and the US had smaller current account balances. Towards the end of the 1990s, China has started accumulating current account surpluses and the US sta ...
Parkin-Bade Chapter 34
... • Increase in U.S. interest rates relative to foreign interest rates. • Expectation the U.S. dollar will depreciate in future • Increase in U.S. demand for imports • Increase in foreign demand for U.S. exports • Expectation that U.S. stock market will perform poorly relative to foreign stock markets ...
... • Increase in U.S. interest rates relative to foreign interest rates. • Expectation the U.S. dollar will depreciate in future • Increase in U.S. demand for imports • Increase in foreign demand for U.S. exports • Expectation that U.S. stock market will perform poorly relative to foreign stock markets ...
Economic Growth - Brown University
... According to Maddison’s (2001) estimates, per-capita GDP in the world economy was no higher in the year 1000 than in the year 1, and only 53% higher in 1820 than in 1000, implying an average annual growth rate of only one nineteenth of one percent over the latter 820 year period. Some time around 18 ...
... According to Maddison’s (2001) estimates, per-capita GDP in the world economy was no higher in the year 1000 than in the year 1, and only 53% higher in 1820 than in 1000, implying an average annual growth rate of only one nineteenth of one percent over the latter 820 year period. Some time around 18 ...
Currency Crises, Capital Account Liberalization
... The appropriate pace of deregulation of domestic financial markets also has been of concern, even in many industrial countries. The United States, Japan, and Sweden, among others, all have experienced some domestic financial instability following deregulation of domestic financial institutions. ...
... The appropriate pace of deregulation of domestic financial markets also has been of concern, even in many industrial countries. The United States, Japan, and Sweden, among others, all have experienced some domestic financial instability following deregulation of domestic financial institutions. ...
PDF
... rate regimes, international transmission of macroeconomic policies, sources of current account imbalances, and so on) without sacrificing either empirical realism or the rigor of explicit welfare analysis. Our model embeds features of the static, closed-economy models of Blanchard and Kiyotaki (1987 ...
... rate regimes, international transmission of macroeconomic policies, sources of current account imbalances, and so on) without sacrificing either empirical realism or the rigor of explicit welfare analysis. Our model embeds features of the static, closed-economy models of Blanchard and Kiyotaki (1987 ...
Benefits and Risks of Financial Globalization
... inflows can debilitate the health of the local financial system. If market fundamentals deteriorate, speculative attacks will occur with capital outflows generated by both domestic and foreign investors. For successful integration, economic fundamentals need to be and remain strong. Local markets ne ...
... inflows can debilitate the health of the local financial system. If market fundamentals deteriorate, speculative attacks will occur with capital outflows generated by both domestic and foreign investors. For successful integration, economic fundamentals need to be and remain strong. Local markets ne ...
EXCHANGE RATE ECONOMICS: 1986 NATIONAL BUREAU OF ECONOMIC RESEARCH Cambridge, MA 02138
... interest rates, can in fact explain the large shifts in real exchange rates that have occurred. Interestingly the empirical tests hold up not only for the very recent experience in the United States. They work equally well when applied to multilateral exchange rates for the entire floating rate peri ...
... interest rates, can in fact explain the large shifts in real exchange rates that have occurred. Interestingly the empirical tests hold up not only for the very recent experience in the United States. They work equally well when applied to multilateral exchange rates for the entire floating rate peri ...
Reaction Functions in a Small Open Economy: What Role for Non
... Zealand for a number of reasons. New Zealand is a commodity-focused economy and thus produces different products to those it consumes. In small open economies a significant proportion of total consumption comes from imports. Because New Zealand is small and geographically isolated, there exists a larg ...
... Zealand for a number of reasons. New Zealand is a commodity-focused economy and thus produces different products to those it consumes. In small open economies a significant proportion of total consumption comes from imports. Because New Zealand is small and geographically isolated, there exists a larg ...
Can Great Depression Theories Explain the Great Recession?
... Depression as gross negligent. But the degree of fiscal stimulus should be well considered, since too much stimulus may be gross negligent too, since future generations will pay for it. Lesson number three is that the composition of the current monetary system urges policy makers to rally. History h ...
... Depression as gross negligent. But the degree of fiscal stimulus should be well considered, since too much stimulus may be gross negligent too, since future generations will pay for it. Lesson number three is that the composition of the current monetary system urges policy makers to rally. History h ...
Viet Nam - OECD.org
... new skills and increase their capacity to meet demand. Similarly, it is important to help workers understand that skills pay off in order to persuade them to take up technical and vocational education and training. Furthermore, to enable TVET education and training institutions to meet the fastchang ...
... new skills and increase their capacity to meet demand. Similarly, it is important to help workers understand that skills pay off in order to persuade them to take up technical and vocational education and training. Furthermore, to enable TVET education and training institutions to meet the fastchang ...
The Gold Price - Dubai City of Gold
... The Bretton-Woods Accord of 1944 briefly assured stability for a world without hard money by making the US dollar convertible into gold at a fixed rate, and then using the dollar as the world’s reserve currency, against which all other currencies were measured. The deficiency embedded in the Bretto ...
... The Bretton-Woods Accord of 1944 briefly assured stability for a world without hard money by making the US dollar convertible into gold at a fixed rate, and then using the dollar as the world’s reserve currency, against which all other currencies were measured. The deficiency embedded in the Bretto ...
Research Department Working Paper No:05/07
... Monetary disequilibrium models are useful to explain interactions in these economies where the major source of disturbances is the disequilibrium in the money market. With these models it is possible to track the effects of the monetary expansion on the economy. The earliest version of this kind of ...
... Monetary disequilibrium models are useful to explain interactions in these economies where the major source of disturbances is the disequilibrium in the money market. With these models it is possible to track the effects of the monetary expansion on the economy. The earliest version of this kind of ...
WORLD ECONOMIC OUTLOOK, September 2003--Chapter 1
... orderly and—given the large U.S. current account deficit—generally welcome, and the resulting tightening in financial conditions in the euro area has been largely offset by European Central Bank (ECB) interest rate cuts (see Box 1.1, “Recent Changes in Monetary and Financial Conditions in the Major ...
... orderly and—given the large U.S. current account deficit—generally welcome, and the resulting tightening in financial conditions in the euro area has been largely offset by European Central Bank (ECB) interest rate cuts (see Box 1.1, “Recent Changes in Monetary and Financial Conditions in the Major ...
A Small Economic Model for Argentina (Summary)
... Monetary equilibrium is given by an LM equation which, in a general (nonlinear) format, may be written as follows: mt = ` (1 + it ; bt ; yt ) ; where mt is the monetary base, or more plainly, money in circulation (notes and coins), `(:) is a declining function of the interest rate and an increasing ...
... Monetary equilibrium is given by an LM equation which, in a general (nonlinear) format, may be written as follows: mt = ` (1 + it ; bt ; yt ) ; where mt is the monetary base, or more plainly, money in circulation (notes and coins), `(:) is a declining function of the interest rate and an increasing ...
The Cost-benefit Analysis on International Reserve Currency Status
... exchange reserves and this percentage basically has not been changed since the financial crisis in 2008. At the end of 2014, it reached 67%, increased by 32 points than that just before the Asian financial crisis in 1996. Emerging markets and developing countries holding so much foreign exchange res ...
... exchange reserves and this percentage basically has not been changed since the financial crisis in 2008. At the end of 2014, it reached 67%, increased by 32 points than that just before the Asian financial crisis in 1996. Emerging markets and developing countries holding so much foreign exchange res ...
The Euro`s “Winner-Take-All” Political Economy
... in 2011, from Occupy London in Britain to Il Movimento Cinque Stelle (M5S) in Italy, and Los Indignados in Portugal and Spain, have also led to a renewed focus by academics and policy makers alike on the substantial widening in income inequality within Europe’s national contexts.9 This trend is part ...
... in 2011, from Occupy London in Britain to Il Movimento Cinque Stelle (M5S) in Italy, and Los Indignados in Portugal and Spain, have also led to a renewed focus by academics and policy makers alike on the substantial widening in income inequality within Europe’s national contexts.9 This trend is part ...
Building a Kenyan Monetary Regime for the 21 Century
... This chapter asks: what sort of monetary framework is appropriate for Kenya as it seeks to establish itself as a full-fledged emerging market economy in the 21st century? Now is a particularly good time to consider the choices facing the authorities, and the Central Bank in particular, as the transf ...
... This chapter asks: what sort of monetary framework is appropriate for Kenya as it seeks to establish itself as a full-fledged emerging market economy in the 21st century? Now is a particularly good time to consider the choices facing the authorities, and the Central Bank in particular, as the transf ...
for money
... • Increasing availability of low-fee stock and bond mutual funds: Because stock and bond mutual funds are not included in any of the money aggregates, movement of funds from various M1 and M2 components into these mutual funds will distort both the M1 and M2 figures. • Debit cards and electronic mon ...
... • Increasing availability of low-fee stock and bond mutual funds: Because stock and bond mutual funds are not included in any of the money aggregates, movement of funds from various M1 and M2 components into these mutual funds will distort both the M1 and M2 figures. • Debit cards and electronic mon ...
Monetary/Fiscal Policy Mix and Financial Stability
... through” the temporary increase in inflation caused by a weaker currency and actually cut interest rates to cushion the blow to the economy from falling oil prices. Meanwhile, fiscal policy was tightened sufficiently to generate a surplus, and fiscal debt as a share of GDP began a long decline that ...
... through” the temporary increase in inflation caused by a weaker currency and actually cut interest rates to cushion the blow to the economy from falling oil prices. Meanwhile, fiscal policy was tightened sufficiently to generate a surplus, and fiscal debt as a share of GDP began a long decline that ...
25 Years of Transition: Post-Communist Europe and the IMF
... region in the wake of the 1997 Asia crisis. In contrast to the turbulence of the first decade of transition, the early and mid-2000s saw uniformly strong growth. With macroeconomic stability established and key market-based frameworks largely in place, the region experienced large capital inflows, s ...
... region in the wake of the 1997 Asia crisis. In contrast to the turbulence of the first decade of transition, the early and mid-2000s saw uniformly strong growth. With macroeconomic stability established and key market-based frameworks largely in place, the region experienced large capital inflows, s ...
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.