Absorption Approach
... • The demand for a nation’s currency is dependent upon foreign residents’ demand for its exports, that is, it depends on foreign residents’ desire to obtain the domestic currency to facilitate their purchases of the domestic country’s exports. • The supply of a nation’s currency is dependent upon (a ...
... • The demand for a nation’s currency is dependent upon foreign residents’ demand for its exports, that is, it depends on foreign residents’ desire to obtain the domestic currency to facilitate their purchases of the domestic country’s exports. • The supply of a nation’s currency is dependent upon (a ...
Capital Flow Policies, Monetary Policy and Coordination
... to virtually zero and used non-standard policy instruments to improve financing conditions. By contrast, the recovery of EMEs since 2009 had been quite strong. As a result, the discussion in international policy forums, including the G20, focused on this phenomenon of ‘decoupling’. With strong growt ...
... to virtually zero and used non-standard policy instruments to improve financing conditions. By contrast, the recovery of EMEs since 2009 had been quite strong. As a result, the discussion in international policy forums, including the G20, focused on this phenomenon of ‘decoupling’. With strong growt ...
Nudging the Fed Toward a Rules-Based Policy
... low. Modern economists might be inclined to smile at this example of “old Keynesian” thinking, perhaps recalling the more than billionfold increase in the German monetary base between 1920 and 1923, when currency was being printed at a furious pace. On the other hand, modern economists are not suppo ...
... low. Modern economists might be inclined to smile at this example of “old Keynesian” thinking, perhaps recalling the more than billionfold increase in the German monetary base between 1920 and 1923, when currency was being printed at a furious pace. On the other hand, modern economists are not suppo ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
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... dollarized ones. Given the very small number of observations for the dollarized group, and the low quality of the data, these results are subject to stronger caveats than usual, and should be interpreted with care.9 III. Panama’s Experience with Dollarization Supporters of “dollarization” have point ...
... dollarized ones. Given the very small number of observations for the dollarized group, and the low quality of the data, these results are subject to stronger caveats than usual, and should be interpreted with care.9 III. Panama’s Experience with Dollarization Supporters of “dollarization” have point ...
CFO Survey Europe Report Q4 2014
... economic prospects. The index has decreased from 53 to 48 on a scale of 100, while the number of optimists has reached an all-time low of 10% (down from 22%), and the number of pessimists a record high of 70% (up from 61%). The deterioration in economic sentiment among Latin American CFOs has result ...
... economic prospects. The index has decreased from 53 to 48 on a scale of 100, while the number of optimists has reached an all-time low of 10% (down from 22%), and the number of pessimists a record high of 70% (up from 61%). The deterioration in economic sentiment among Latin American CFOs has result ...
Market Outlook
... 3.25% to 3.0% (and still subject to further downside risks) could see a further 25bp cut to the base rate before the end of the year. This could see AUD/USD weakness continue over the medium term. CAD: With CAD tracking oil, the potential impact of higher Iranian sales, a rising US rig count and str ...
... 3.25% to 3.0% (and still subject to further downside risks) could see a further 25bp cut to the base rate before the end of the year. This could see AUD/USD weakness continue over the medium term. CAD: With CAD tracking oil, the potential impact of higher Iranian sales, a rising US rig count and str ...
DP2009/17 Global shocks, economic growth and financial
... openness. They also include institutional variables like pegging to the gold standard before 1914, having an independent central bank that acts as a lender of last resort, having a Parliamentary government and especially, having low original sin (foreign currency denominated debt), and low currency ...
... openness. They also include institutional variables like pegging to the gold standard before 1914, having an independent central bank that acts as a lender of last resort, having a Parliamentary government and especially, having low original sin (foreign currency denominated debt), and low currency ...
The relevance of Keynes
... policy was being set by the doctrines of the Chicago School. Their ‘new classical economics’ was simply a mathematically souped-up version of the old classical economics, which Keynes had overthrown in the 1930s. Markets were deemed to be optimally self-regulating; the macroeconomic task of governme ...
... policy was being set by the doctrines of the Chicago School. Their ‘new classical economics’ was simply a mathematically souped-up version of the old classical economics, which Keynes had overthrown in the 1930s. Markets were deemed to be optimally self-regulating; the macroeconomic task of governme ...
Capital Mobility, Monetization, and Money Demand
... statistically significant at the 5 percent level across countries (except for Niger where the coefficient is significant at the 10 percent level). The coefficient of the lagged dependent variable is correctly signed and is statistically significant for all seven countries. This implies that the adju ...
... statistically significant at the 5 percent level across countries (except for Niger where the coefficient is significant at the 10 percent level). The coefficient of the lagged dependent variable is correctly signed and is statistically significant for all seven countries. This implies that the adju ...
Portfolio Benefits of The Currency Asset Class
... invest in derivative securities, such as forward contracts, which can be volatile and involve various types and degrees of risk. If the U.S. dollar fluctuates in value against currencies the Funds are exposed to, your investment may also fluctuate in value. The Merk Currency Enhanced U.S. Equity Fun ...
... invest in derivative securities, such as forward contracts, which can be volatile and involve various types and degrees of risk. If the U.S. dollar fluctuates in value against currencies the Funds are exposed to, your investment may also fluctuate in value. The Merk Currency Enhanced U.S. Equity Fun ...
Working Paper Series Contagion and interdependence
... More generally, Frankel, Schmukler and Serven (2002) find that emerging market economies exhibit high sensitivity to international interest rates, especially under fixed exchange rate regimes. Reinhart and Reinhart (2001) present stylized facts on the impact of economic conditions in the United Stat ...
... More generally, Frankel, Schmukler and Serven (2002) find that emerging market economies exhibit high sensitivity to international interest rates, especially under fixed exchange rate regimes. Reinhart and Reinhart (2001) present stylized facts on the impact of economic conditions in the United Stat ...
Summary of The Silent Revolution
... map” was the use of special consultations with countries whose exchange rate policies were seen as possibly out of line and causing problems for others. That effort was largely frustrated by political difficulties, and only two such consultations were held: with Sweden in 1982 and Korea in 1987. Tho ...
... map” was the use of special consultations with countries whose exchange rate policies were seen as possibly out of line and causing problems for others. That effort was largely frustrated by political difficulties, and only two such consultations were held: with Sweden in 1982 and Korea in 1987. Tho ...
Twenty-Five Years Later: Macroeconomic Aspects of Transition
... reassignment of power and wealth was unavoidable because the old order collapsed too fast for anyone to organize the new order. Yet, it could be successful despite widespread hardship, or it could fail and lead to new forms of authoritarian regimes. Both happened. This paper takes a broad-brush look ...
... reassignment of power and wealth was unavoidable because the old order collapsed too fast for anyone to organize the new order. Yet, it could be successful despite widespread hardship, or it could fail and lead to new forms of authoritarian regimes. Both happened. This paper takes a broad-brush look ...
Assessing reserve management during economic crises
... Our analysis suggests that Indonesia’s policy-makers realised the benefits of supporting the non-oil sector early on, around the global oil price shock of 1979, which then meant that their macroeconomic policies started to represent a wider range of economic interests. In contrast, Nigeria’s oil ind ...
... Our analysis suggests that Indonesia’s policy-makers realised the benefits of supporting the non-oil sector early on, around the global oil price shock of 1979, which then meant that their macroeconomic policies started to represent a wider range of economic interests. In contrast, Nigeria’s oil ind ...
The Panorama of the East Asian Crisis and the IMF`s
... these crises, I feel obligated to offer a definition for the word ‘crisis.’ Economics Professor Michael B. McElroy, Visiting Associate Professor of Economics at Duke University, defines it this way: “an economic crisis may be said to occur when there are disruptions in usual patterns of supply and d ...
... these crises, I feel obligated to offer a definition for the word ‘crisis.’ Economics Professor Michael B. McElroy, Visiting Associate Professor of Economics at Duke University, defines it this way: “an economic crisis may be said to occur when there are disruptions in usual patterns of supply and d ...
Foreign exchange market intervention in emerging markets: motives
... discounts in the intervening period. Speculation, if left unchecked, would lead to market destabilisation and have cost implications for the economy. SAMA’s intervention policy is to intervene in foreign exchange markets on a discretionary, rather than a systematic basis, and only in exceptional ci ...
... discounts in the intervening period. Speculation, if left unchecked, would lead to market destabilisation and have cost implications for the economy. SAMA’s intervention policy is to intervene in foreign exchange markets on a discretionary, rather than a systematic basis, and only in exceptional ci ...
Size and Composition of the Central Bank Balance Sheet
... unchanged (narrowly-defined quantitative easing). The composition corresponds to changing the composition of the balance sheet, while keeping its size unchanged by replacing conventional assets with unconventional assets (narrowly-defined credit easing). In a financial and economic crisis, both the ...
... unchanged (narrowly-defined quantitative easing). The composition corresponds to changing the composition of the balance sheet, while keeping its size unchanged by replacing conventional assets with unconventional assets (narrowly-defined credit easing). In a financial and economic crisis, both the ...
Commerzbank Week in Focus
... example (chart 4). The debt ratio of Chinese companies and private households soared by 50 percentage points to 180% of GDP in the five years to Q2 2014 (newer figures are not available). In particular, so-called shadow banks have contributed to this process since they have provided a significant am ...
... example (chart 4). The debt ratio of Chinese companies and private households soared by 50 percentage points to 180% of GDP in the five years to Q2 2014 (newer figures are not available). In particular, so-called shadow banks have contributed to this process since they have provided a significant am ...
GE05-Whalley-06DEC 225735 en
... will be a premium value on foreign exchange established which is endogenously determined and operates akin to a tariff on imports. Domestic monetary policy in such a model is nonneutral with respect to trade while trade liberalization (tariff reduction) merely changes the premium value on foreign exch ...
... will be a premium value on foreign exchange established which is endogenously determined and operates akin to a tariff on imports. Domestic monetary policy in such a model is nonneutral with respect to trade while trade liberalization (tariff reduction) merely changes the premium value on foreign exch ...
From the Great Depression to the Euro Crisis, 1929–2013: A Global
... income per capita when the Great Depression hit.4 First, we compare the experience of the United States and Germany, two countries that were similar in size and had comparable levels of GDP per capita, and both of which were epicentres of the Depression. We then compare what happened in the United K ...
... income per capita when the Great Depression hit.4 First, we compare the experience of the United States and Germany, two countries that were similar in size and had comparable levels of GDP per capita, and both of which were epicentres of the Depression. We then compare what happened in the United K ...
The Role of Contractionary Monetary Policy in the Great Recession
... paradox is that low interest rates lead to an expansion of the money supply, which eventually leads to inflation. When inflation has been high in the past, lenders expect it to be high in the future as well, and therefore expect to be repaid in devalued dollars. As a result, they demand a higher ra ...
... paradox is that low interest rates lead to an expansion of the money supply, which eventually leads to inflation. When inflation has been high in the past, lenders expect it to be high in the future as well, and therefore expect to be repaid in devalued dollars. As a result, they demand a higher ra ...
After Osbrown - Talk Carswell
... share of national income. Total public and private investment has collapsed by over a quarter since 2008, while government consumption is up by 6 per cent. The Coalition’s ’most urgent task‘, said David Cameron and Nick Clegg when they came to office in May 2010, was to ‘tackle our record debts’ and ...
... share of national income. Total public and private investment has collapsed by over a quarter since 2008, while government consumption is up by 6 per cent. The Coalition’s ’most urgent task‘, said David Cameron and Nick Clegg when they came to office in May 2010, was to ‘tackle our record debts’ and ...
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.