A record current account deficit: Causes and implications
... Before we can examine the relationship between the international accounts and the domestic economy, we need to understand how these international transactions work. In the next section, we set out a simple framework for understanding these relationships, based on national income accounting identitie ...
... Before we can examine the relationship between the international accounts and the domestic economy, we need to understand how these international transactions work. In the next section, we set out a simple framework for understanding these relationships, based on national income accounting identitie ...
NBER WORKING PAPER SERIES THE SMALL OPEN ECONOMY CASE
... stabilization program, closely following the format of much of the literature in open-economy models, e.g., Calvo and Végh (1993 and 1999). A basic result is that IRRs, like Exchange Rate Based Stabilization, ERBS, programs, could give rise to macroeconomic distortion, e.g., underutilization of capa ...
... stabilization program, closely following the format of much of the literature in open-economy models, e.g., Calvo and Végh (1993 and 1999). A basic result is that IRRs, like Exchange Rate Based Stabilization, ERBS, programs, could give rise to macroeconomic distortion, e.g., underutilization of capa ...
How to make debt safer
... such financial innovations? • The need for standards. • The creation of a liquid secondary market requires instruments with the same features for all countries or all firms issuing them. – For financial instruments where payments are due when certain conditions are met, it is crucial to have verifia ...
... such financial innovations? • The need for standards. • The creation of a liquid secondary market requires instruments with the same features for all countries or all firms issuing them. – For financial instruments where payments are due when certain conditions are met, it is crucial to have verifia ...
Kuwait - AMEDA
... Kuwait is a small, rich, relatively open economy with selfreported crude oil reserves of about 104 billion barrels - 9% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budge ...
... Kuwait is a small, rich, relatively open economy with selfreported crude oil reserves of about 104 billion barrels - 9% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budge ...
NBER WORKING PAPER SERIES PRICE
... nobility, on the other hand, focuses on the impact of adjus1rents in international reserves on darestic noney supply with the implicit asstmption that aggregate demand for noney is inelastic with respect to foreign nonetary developients such as changes in exchange and foreign interest rates. These t ...
... nobility, on the other hand, focuses on the impact of adjus1rents in international reserves on darestic noney supply with the implicit asstmption that aggregate demand for noney is inelastic with respect to foreign nonetary developients such as changes in exchange and foreign interest rates. These t ...
Déjà vu? The Greek crisis experience, the 2010s versus the 1930s
... debt would ultimately be paid back and the country would not default. Thus, it could gain cheaper and easier foreign capital market access.2 Second, and more importantly, interwar Greece was a typical example of a Southeastern European emerging market economy. As an emerging economy, it tried hard ...
... debt would ultimately be paid back and the country would not default. Thus, it could gain cheaper and easier foreign capital market access.2 Second, and more importantly, interwar Greece was a typical example of a Southeastern European emerging market economy. As an emerging economy, it tried hard ...
PowerPoint 演示文稿 - Xiamen University
... respects which undermine tests of the Law of One Price. • One test of the Law of One Price is the Big Mac index, which has been published annually in The Economist since 1986. – It was devised as a light-hearted guide to whether currencies are at their “correct” level, based on PPP. ...
... respects which undermine tests of the Law of One Price. • One test of the Law of One Price is the Big Mac index, which has been published annually in The Economist since 1986. – It was devised as a light-hearted guide to whether currencies are at their “correct” level, based on PPP. ...
Balance of Payments Accounts Balance of Payments
... ¾ Every exchange of goods, services, and/or assets requires a payment. ...
... ¾ Every exchange of goods, services, and/or assets requires a payment. ...
9.1 Internal Balance and External Balance
... 9.1 Internal Balance and External Balance – In Quadrant I, the economy will meet the conflict between internal balance and external balance. » A contractionary expenditure changing policy will reduce output and income, decreasing the inflation and restoring internal balance. But reduced national in ...
... 9.1 Internal Balance and External Balance – In Quadrant I, the economy will meet the conflict between internal balance and external balance. » A contractionary expenditure changing policy will reduce output and income, decreasing the inflation and restoring internal balance. But reduced national in ...
20116822454122
... 9.1 Internal Balance and External Balance – In Quadrant I, the economy will meet the conflict between internal balance and external balance. » A contractionary expenditure changing policy will reduce output and income, decreasing the inflation and restoring internal balance. But reduced national in ...
... 9.1 Internal Balance and External Balance – In Quadrant I, the economy will meet the conflict between internal balance and external balance. » A contractionary expenditure changing policy will reduce output and income, decreasing the inflation and restoring internal balance. But reduced national in ...
NBER WORKING PAPER SERIES AT THE CENTRAL BANK: LESSONS FROM SUDAN
... Smuggler's Blues at the Central Bank: Lessons from Sudan ...
... Smuggler's Blues at the Central Bank: Lessons from Sudan ...
the evolution of the renminbi exchange rate
... foreign exchange allotment quota, the rate was set at RMB2.80 per USD. Generally speaking, this rate was formed by adding to the effective rate an “equalization price” for balancing export and import profits and losses, and was applied to all national enterprises and corporations engaging in trade. ...
... foreign exchange allotment quota, the rate was set at RMB2.80 per USD. Generally speaking, this rate was formed by adding to the effective rate an “equalization price” for balancing export and import profits and losses, and was applied to all national enterprises and corporations engaging in trade. ...
Classical Economics & Relative Prices
... Suppose that trade is initially balanced. A rise in productivity increases investment demand In a closed economy, interest rates would rise In an open economy, the trade deficit would increase. In the case, the deficit increases from zero to $15,000 Do interest rates rise at all? ...
... Suppose that trade is initially balanced. A rise in productivity increases investment demand In a closed economy, interest rates would rise In an open economy, the trade deficit would increase. In the case, the deficit increases from zero to $15,000 Do interest rates rise at all? ...
NBER WORKING PAPER SERIES POLICY RESPONSES TO EXCHANGE-RATE MOVEMENTS Laurence M. Ball
... Sectoral output can be stabilized if policymakers have an additional instrument besides the interest rate. second instrument is fiscal policy. ...
... Sectoral output can be stabilized if policymakers have an additional instrument besides the interest rate. second instrument is fiscal policy. ...
Fiscal policy considerations in the design of monetary policy
... instruments aimed at avoiding an overreaction of bank lending. Fiscal policy aims to create equal opportunities among citizens, ensure sustained growth and defend the public credit (ensuring fiscal solvency to avoid a financial crowding out). The last two objectives are related to the stabilization ...
... instruments aimed at avoiding an overreaction of bank lending. Fiscal policy aims to create equal opportunities among citizens, ensure sustained growth and defend the public credit (ensuring fiscal solvency to avoid a financial crowding out). The last two objectives are related to the stabilization ...
China`s exchange rate policy
... than as an expenditure-switching tool. Exchange rate stability provides a firm anchor for domestic price stability that is conducive to sustained long-run economic growth. As the Chinese economy becomes more integrated with world markets and domestic prices more firmly linked with world prices, trad ...
... than as an expenditure-switching tool. Exchange rate stability provides a firm anchor for domestic price stability that is conducive to sustained long-run economic growth. As the Chinese economy becomes more integrated with world markets and domestic prices more firmly linked with world prices, trad ...
Global Economics View
... and Sweden (2009-10). 2 Many more have rate policy rates which are at historically very low levels (Figure 2). Even though rates have fallen further and, in some cases, become more negative than most people would have thought likely or even possible not too long ago, the level of policy rates is sti ...
... and Sweden (2009-10). 2 Many more have rate policy rates which are at historically very low levels (Figure 2). Even though rates have fallen further and, in some cases, become more negative than most people would have thought likely or even possible not too long ago, the level of policy rates is sti ...
balance of payments
... be paid which will be a short term drain on the economy and will further increase the CAD. However, if interest rates are lower in other countries it could be a smart move to borrow from overseas. BUT.. There is always the danger that the governments or people lending the money may, at some time, wi ...
... be paid which will be a short term drain on the economy and will further increase the CAD. However, if interest rates are lower in other countries it could be a smart move to borrow from overseas. BUT.. There is always the danger that the governments or people lending the money may, at some time, wi ...
Foreign-exchange reserves
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Foreign-exchange reserves (also called forex reserves or FX reserves) are assets held by a central bank or other monetary authority, usually in various reserve currencies, mostly the United States dollar, and to a lesser extent the euro, the pound sterling, and the Japanese yen, and used to back its liabilities—e.g., the local currency issued, and the various bank reserves deposited with the central bank by the government or by financial institutions.