This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... be. Likening economic forecasting to weather forecasting, he observes: “Leaning today against next year’s wind is hardly an easy task in the present state of meteorology.” Yet this is just the task present-day monetary policymakers have set themselves: in effect, long-range weather forecasting in a ...
... be. Likening economic forecasting to weather forecasting, he observes: “Leaning today against next year’s wind is hardly an easy task in the present state of meteorology.” Yet this is just the task present-day monetary policymakers have set themselves: in effect, long-range weather forecasting in a ...
Ignorance and Influence: U.S. Economists on Argentina`s
... “Argentina had taken the powerful but dangerous medicine of fixing its exchange rate to the US dollar in order to establish credibility for its monetary policy and reduce inflation. It had also taken major steps to establish a sound financial system, encouraging international banks to take over Arge ...
... “Argentina had taken the powerful but dangerous medicine of fixing its exchange rate to the US dollar in order to establish credibility for its monetary policy and reduce inflation. It had also taken major steps to establish a sound financial system, encouraging international banks to take over Arge ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... lessons for those hoping to understand and contain the current financial crisis originating in the United States housing market. Some observers of Japan blame its monetary policy for failing to react promptly and aggressively enough, both as asset prices rose in the late 1980s and as they plummeted ...
... lessons for those hoping to understand and contain the current financial crisis originating in the United States housing market. Some observers of Japan blame its monetary policy for failing to react promptly and aggressively enough, both as asset prices rose in the late 1980s and as they plummeted ...
Essays on institutional quality, macroeconomic stabilization, and economic growth in
... markets and firms so that transaction costs could be optimally reduced (Chavance, 2009) and in doing so (unlike neo-classical school of thought) give greater role to government, both for regulation and for directly involving themselves in markets and/or firms if need be, depending on a particular ec ...
... markets and firms so that transaction costs could be optimally reduced (Chavance, 2009) and in doing so (unlike neo-classical school of thought) give greater role to government, both for regulation and for directly involving themselves in markets and/or firms if need be, depending on a particular ec ...
A Contribution to Critical Globalization Studies
... globalization and ignore the negative consequences of contemporary globalization processes. This can create the impression that society does not need change and cannot be altered by ...
... globalization and ignore the negative consequences of contemporary globalization processes. This can create the impression that society does not need change and cannot be altered by ...
DP2006/04 Other stabilisation objectives within an inflation targeting regime: Some stochastic
... real economy (as exports fell and imports increased). The weak real economy and cheaper imports would both tend to lead to a fall in the inflation rate. To a degree, most economic models suggest that these effects could be lessened through a temporary reduction in the New Zealand interest rate. ...
... real economy (as exports fell and imports increased). The weak real economy and cheaper imports would both tend to lead to a fall in the inflation rate. To a degree, most economic models suggest that these effects could be lessened through a temporary reduction in the New Zealand interest rate. ...
"The Positive Link Between Financial Liberalization Growth and Crises"
... liberalization leads to more rapid growth, but also to a higher incidence of crises. In fact, most of the fastest-growing countries of the developing world have experienced boom-bust cycles. We argue that liberalization leads to faster growth because it eases financial constraints, but that this occ ...
... liberalization leads to more rapid growth, but also to a higher incidence of crises. In fact, most of the fastest-growing countries of the developing world have experienced boom-bust cycles. We argue that liberalization leads to faster growth because it eases financial constraints, but that this occ ...
NBER WORKING PAPER SERIES EXTERNAL ADJUSTMENT AND THE GLOBAL CRISIS
... prices, tightening credit, and a drying-up of external finance for several heavily indebted countries, some of which turned to external assistance from the IMF and the European Union. Evidence on the impact of the crisis on output and demand suggests that countries running large current account defi ...
... prices, tightening credit, and a drying-up of external finance for several heavily indebted countries, some of which turned to external assistance from the IMF and the European Union. Evidence on the impact of the crisis on output and demand suggests that countries running large current account defi ...
CESifo Working Paper #1897
... The exact structure of the trade-off between costs and benefits determining optimal MPC size, however, depends on country-specific characteristics. For instance, the argument to increase board size to achieve better information processing appears to be of particular relevance when an economy is larg ...
... The exact structure of the trade-off between costs and benefits determining optimal MPC size, however, depends on country-specific characteristics. For instance, the argument to increase board size to achieve better information processing appears to be of particular relevance when an economy is larg ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
... exchange market to stabilize (and sometimes defend) the nominal exchange rate in the face of volatile capital flows. Then they have to follow this action by sterilizing these capital flows in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate ha ...
... exchange market to stabilize (and sometimes defend) the nominal exchange rate in the face of volatile capital flows. Then they have to follow this action by sterilizing these capital flows in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate ha ...
This PDF is a selection from a published volume
... Recently an extensive literature has developed that analyzes the welfare performance of exchange rate regimes in general equilibrium models with sticky-prices (see Devereux and Engel (1998, 2003), Devereux (2000, 2004), and Bacchetta and van Wincoop (2000)). This new literature is largely based on m ...
... Recently an extensive literature has developed that analyzes the welfare performance of exchange rate regimes in general equilibrium models with sticky-prices (see Devereux and Engel (1998, 2003), Devereux (2000, 2004), and Bacchetta and van Wincoop (2000)). This new literature is largely based on m ...
A Real Option Perspective on the Future of the Euro
... Flow benefit, unrelated to monetary policy ("α"): ↓ transaction cost and ↑ trade, both due to common currency. Fixed cost of abandoning union ("Φ"), stands from crisis. Alvarez, Dixit (UofC, Princeton ) ...
... Flow benefit, unrelated to monetary policy ("α"): ↓ transaction cost and ↑ trade, both due to common currency. Fixed cost of abandoning union ("Φ"), stands from crisis. Alvarez, Dixit (UofC, Princeton ) ...
Chapter 31 - Patrick Crowley
... – The nation is putting away less of its income to provide for its future – No reason to deplore the resulting trade deficits • Better to have foreigners invest in the U.S. economy than no one at all ...
... – The nation is putting away less of its income to provide for its future – No reason to deplore the resulting trade deficits • Better to have foreigners invest in the U.S. economy than no one at all ...
O C A S
... In the 1940s, Keynes was particularly interested in understanding the role of surplus countries in global adjustment. His proposal for an international clearing union was based on the notion that in the face of large payments imbalances, both deficit and surplus nations 2. See Bernanke (2005). Some ...
... In the 1940s, Keynes was particularly interested in understanding the role of surplus countries in global adjustment. His proposal for an international clearing union was based on the notion that in the face of large payments imbalances, both deficit and surplus nations 2. See Bernanke (2005). Some ...
Risky Business An Empirical Analysis of Foreign Exchange Risk
... the first empirical study to measure the volume, extent, and nature of MFIs’ foreign exchange risk. It presents a snapshot, based on 2008 financial data of over 300 MFIs worldwide, representing approximately 60% of the total assets in the industry. By coincidence, 2008 turned out to be one of the mo ...
... the first empirical study to measure the volume, extent, and nature of MFIs’ foreign exchange risk. It presents a snapshot, based on 2008 financial data of over 300 MFIs worldwide, representing approximately 60% of the total assets in the industry. By coincidence, 2008 turned out to be one of the mo ...
The Yen - CiteSeerX
... States and in some European countries. But interventions continued in the first half of September. On September 11, Secretary Snow was reportedly to have said that Japan must keep intervention minimum. ...
... States and in some European countries. But interventions continued in the first half of September. On September 11, Secretary Snow was reportedly to have said that Japan must keep intervention minimum. ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
Time of Troubles: The Yen and Japan`s Economy, 1985-2008
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
NBER WORKING PAPER SERIES TIME OF TROUBLES: Maurice Obstfeld
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
... subsequent stagnation. My approach emphasizes the interaction of short-term developments driven by monetary factors (as they affect international real interest rate differentials) and the longer-term determinants of the real exchange rate’s equilibrium path. While I believe this approach to be fruit ...
New Zealand`s Exchange Rate Cycles: Evidence and Drivers
... Figure 3: Stylised path for the real exchange rate ..............................................................................5 Figure 4: Real effective exchange rate volatility .................................................................................8 Figure 5: Nominal bilateral exchan ...
... Figure 3: Stylised path for the real exchange rate ..............................................................................5 Figure 4: Real effective exchange rate volatility .................................................................................8 Figure 5: Nominal bilateral exchan ...
G97/8 Inflation targeting in an open economy: Strict or flexible inflation targeting?
... parameters of the transmission mechanism for monetary policy. There is a classic result in the theory of economic policy under uncertainty, due to the American economist Brainard in 1967: If there is uncertainty about the parameters of the model, the policy instrument should be moved with caution, a ...
... parameters of the transmission mechanism for monetary policy. There is a classic result in the theory of economic policy under uncertainty, due to the American economist Brainard in 1967: If there is uncertainty about the parameters of the model, the policy instrument should be moved with caution, a ...
New Zealand`s Exchange Rate Cycles: Evidence and
... Figure 3: Stylised path for the real exchange rate ..............................................................................5 Figure 4: Real effective exchange rate volatility .................................................................................8 Figure 5: Nominal bilateral exchan ...
... Figure 3: Stylised path for the real exchange rate ..............................................................................5 Figure 4: Real effective exchange rate volatility .................................................................................8 Figure 5: Nominal bilateral exchan ...
ge04-westermann 224892 en
... growth rate increased from 8% in 1990-94 to 18% in the wake of the Tequila crisis (1995-2000). However, starting in 2001 exports have stopped growing. Given the far-reaching reforms, the signing of NAFTA, and the large capital inflows many observers expected stellar growth performance. In terms of p ...
... growth rate increased from 8% in 1990-94 to 18% in the wake of the Tequila crisis (1995-2000). However, starting in 2001 exports have stopped growing. Given the far-reaching reforms, the signing of NAFTA, and the large capital inflows many observers expected stellar growth performance. In terms of p ...
as a PDF
... jump the bandwagon and bid up the exchange rate. Along this line of reasoning, an intervention would generally be followed by increased volatility in the exchange rate. Reflecting these considerations, Galati and Melick (2002) argue that foreign exchange interventions could more recently have been a ...
... jump the bandwagon and bid up the exchange rate. Along this line of reasoning, an intervention would generally be followed by increased volatility in the exchange rate. Reflecting these considerations, Galati and Melick (2002) argue that foreign exchange interventions could more recently have been a ...
LEYR rev2 - Law and Economics Yearly Review
... counter analysis was that sooner or later, central banks would have to ‘serve up’ these contracts in the event of market crisis, also because some of the contracts were quasi-money. However, it was thought that the rationality of the market would never be pushed into generating serious crises, such ...
... counter analysis was that sooner or later, central banks would have to ‘serve up’ these contracts in the event of market crisis, also because some of the contracts were quasi-money. However, it was thought that the rationality of the market would never be pushed into generating serious crises, such ...
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.