Paul R. Krugman Working DEINDUSTRIALIZATION, REINDUSTRIALIZATION, AND THE REAL
... perceived as having only limited persistence. The model shows that both the fact that capital flows are perceived as temporary and uncertainty per se act to limit the responsivesness of resource reallocation to real exchange rate movements. In turn, this reluctance of factors to move widens the rang ...
... perceived as having only limited persistence. The model shows that both the fact that capital flows are perceived as temporary and uncertainty per se act to limit the responsivesness of resource reallocation to real exchange rate movements. In turn, this reluctance of factors to move widens the rang ...
analysis of factors affecting fluctuations in the
... considered a smaller number of developed countries within less time period. His econometric results show that the most important factor affecting nominal exchange rate is inflation and factors driving long-run inflation. Moreover, openness, output growth and the terms of trade resulted to be signifi ...
... considered a smaller number of developed countries within less time period. His econometric results show that the most important factor affecting nominal exchange rate is inflation and factors driving long-run inflation. Moreover, openness, output growth and the terms of trade resulted to be signifi ...
ASIAN INITIATIVES
... investment correlations, consumption correlations, and stock market movements. They concluded that East Asian economies are far from being financially integrated. The evidence shows that the more advanced economies – Japan, Hong Kong, Singapore, and Korea seem to be much more i ...
... investment correlations, consumption correlations, and stock market movements. They concluded that East Asian economies are far from being financially integrated. The evidence shows that the more advanced economies – Japan, Hong Kong, Singapore, and Korea seem to be much more i ...
II. DOMESTIC ECONOMIC OUTLOOK
... macroeconomic fundamentals, the ongoing capital inflow, low level of interest rates and credit expansion. Domestic demand slowed down on the back of the measures taken, thus, the growth rate lost pace starting from the second quarter of the year, accompanied by the rebalancing of demand components. ...
... macroeconomic fundamentals, the ongoing capital inflow, low level of interest rates and credit expansion. Domestic demand slowed down on the back of the measures taken, thus, the growth rate lost pace starting from the second quarter of the year, accompanied by the rebalancing of demand components. ...
THE IMF Lecture 6 LIUC 2010 1
... determined by their economic position relative to other members. A variety of economic factors is considered; these include members’ GDP, current account transactions, and official reserves. Quotas are paid 25% in foreign exchange reserves and 75% in a member’s own currency. ...
... determined by their economic position relative to other members. A variety of economic factors is considered; these include members’ GDP, current account transactions, and official reserves. Quotas are paid 25% in foreign exchange reserves and 75% in a member’s own currency. ...
Department of Economics Working Paper Series Davidson on
... attack on its currency, and/or a default on its international debt). In Keynes’s own words, It is characteristic of a freely convertible international standard that it throws the main burden of adjustment on the country which is in the debtor position on the international balance of payments – that ...
... attack on its currency, and/or a default on its international debt). In Keynes’s own words, It is characteristic of a freely convertible international standard that it throws the main burden of adjustment on the country which is in the debtor position on the international balance of payments – that ...
Answer: The same starting position as in the closed
... suppose that the home country operates a fixed exchange rate. Moreover, everything else remaining unchanged, investments in the home country become less risky. As a consequence, the risk premium of making loans to the home country falls. For the home country the effect of the decreasing risk premium ...
... suppose that the home country operates a fixed exchange rate. Moreover, everything else remaining unchanged, investments in the home country become less risky. As a consequence, the risk premium of making loans to the home country falls. For the home country the effect of the decreasing risk premium ...
of monetary policy
... sell agreements coordinated by the Fed with the Treasury. Each action is targeted for its impact on interest rates and the growth in the money supply. The following quote from the New York Federal Reserve explains the key concepts of OMO. Open Market Operations: Key Concepts • “Temporary open market ...
... sell agreements coordinated by the Fed with the Treasury. Each action is targeted for its impact on interest rates and the growth in the money supply. The following quote from the New York Federal Reserve explains the key concepts of OMO. Open Market Operations: Key Concepts • “Temporary open market ...
S R F ?
... It could be argued that the appreciation of the RMB is inevitable given the BalassaSamuelson effect. According to this argument, as productivity increases in rapidly developing economies like China, wages will increase causing the price level to rise. Eventually, this will lead to a nominal apprecia ...
... It could be argued that the appreciation of the RMB is inevitable given the BalassaSamuelson effect. According to this argument, as productivity increases in rapidly developing economies like China, wages will increase causing the price level to rise. Eventually, this will lead to a nominal apprecia ...
the optimal path of monetary expansion
... Net purchases of foreign exchange by the central bank can be invested through member banks. Both absorption and injection would be carried out through the sale and purchase of CDC’s. Neutralize only the changes in the money supply that would cause the path of monetary expansion to deviate from ...
... Net purchases of foreign exchange by the central bank can be invested through member banks. Both absorption and injection would be carried out through the sale and purchase of CDC’s. Neutralize only the changes in the money supply that would cause the path of monetary expansion to deviate from ...
The structural form of the model can then be conveniently
... restrictions are often with regard to neutrality of the effects of certain shocks over time. Blanchard and Quah (henceforth BQ) imposed restrictions on the long-term multipliers of a model (including the growth of output and unemployment) to identify a permanent and transitory components of output. ...
... restrictions are often with regard to neutrality of the effects of certain shocks over time. Blanchard and Quah (henceforth BQ) imposed restrictions on the long-term multipliers of a model (including the growth of output and unemployment) to identify a permanent and transitory components of output. ...
Central Banks and Monetary Policy Strategy
... cannot be reversed by national governments. • Personal Independence: National Bank managers serve 5 year terms across Presidential terms. Board members serve 8 year terms. • Revenue Independence: Budget provided by national central banks which conduct most profitable operations ...
... cannot be reversed by national governments. • Personal Independence: National Bank managers serve 5 year terms across Presidential terms. Board members serve 8 year terms. • Revenue Independence: Budget provided by national central banks which conduct most profitable operations ...
Is the International Role of the Dollar Changing?
... lose the seigniorage they otherwise might have collected if their own currency were fully in use locally. ...
... lose the seigniorage they otherwise might have collected if their own currency were fully in use locally. ...
Full Article
... 2. Effect of currency exchange Indonesia with the Japanese currency (GBP / JPY) against national income Based on the test results of multiple regression showed that the Indonesian currency exchange rate with the Japanese currency (GBP / JPY) no significant effect on national income. Where this is no ...
... 2. Effect of currency exchange Indonesia with the Japanese currency (GBP / JPY) against national income Based on the test results of multiple regression showed that the Indonesian currency exchange rate with the Japanese currency (GBP / JPY) no significant effect on national income. Where this is no ...
External Shocks, Banks and Monetary Policy in an Open
... Taylor rule that responds to inflation and output gaps, (ii) an augmented IT rule that responds to the credit growth in addition to the inflation, and (iii) another augmented IT rule that responds to change in real exchange rate (RER) in addition to the inflation gap. We assess the performances of t ...
... Taylor rule that responds to inflation and output gaps, (ii) an augmented IT rule that responds to the credit growth in addition to the inflation, and (iii) another augmented IT rule that responds to change in real exchange rate (RER) in addition to the inflation gap. We assess the performances of t ...
Short-Term International Capital Flows
... In general, the academy classified the international long-term and short-term capital by the period for repayment. Short-term international capital means the duration of the international investments or loan within one year, it contains marketable securities (short-term investments), short-term loan ...
... In general, the academy classified the international long-term and short-term capital by the period for repayment. Short-term international capital means the duration of the international investments or loan within one year, it contains marketable securities (short-term investments), short-term loan ...
Discount Policy and Open Market Operations
... targets in accordance with the unfolding behavior of bank credit. Thus far, this approach seems a promising one for improving the implementation of the System's monetary policies. Changes to be made in the operation of the discount mechanism should maintain the responsiveness of the banking system t ...
... targets in accordance with the unfolding behavior of bank credit. Thus far, this approach seems a promising one for improving the implementation of the System's monetary policies. Changes to be made in the operation of the discount mechanism should maintain the responsiveness of the banking system t ...
Removal of exchange control by the Thatcher Government
... Banking’, Middleton to Page, 30 August 1979. ...
... Banking’, Middleton to Page, 30 August 1979. ...
The Great Recession, ‘Rainy Day’ Funds, and Countercyclical Fiscal Policy... Latin America
... the major countries in the region. Not only have they been accorded legal independence, but they have taken responsibility for maintaining low and stable inflation rates, and to a significant extent they have achieved that goal in recent years, enhancing their credibility. The increased anti-inflati ...
... the major countries in the region. Not only have they been accorded legal independence, but they have taken responsibility for maintaining low and stable inflation rates, and to a significant extent they have achieved that goal in recent years, enhancing their credibility. The increased anti-inflati ...
A fresh look at the merits of a currency union
... associated with monetary policy. Monetary policy in the long run can only affect prices and the inflation rate as opposed to real economic variables such as output and employment. Hence the cost of giving up national monetary policy sovereignty is a short run cost at best. In addition there are quest ...
... associated with monetary policy. Monetary policy in the long run can only affect prices and the inflation rate as opposed to real economic variables such as output and employment. Hence the cost of giving up national monetary policy sovereignty is a short run cost at best. In addition there are quest ...
eiteman_ppt_ch02
... – This rate is the most widely accepted rate of interest used in standardized quotations, loan agreements, and financial derivatives transactions ...
... – This rate is the most widely accepted rate of interest used in standardized quotations, loan agreements, and financial derivatives transactions ...
Document
... Capital Controls are difficult to enforce. Because Chile is largely dependent on commodities, a drop in global commodity prices could have devastating effects on the balance of payments on current account. ...
... Capital Controls are difficult to enforce. Because Chile is largely dependent on commodities, a drop in global commodity prices could have devastating effects on the balance of payments on current account. ...
Q&A U U.S. Monetary Policy An Introduction
... decisions people make in this country—whether to get a loan to buy a new house or car or to start up a company, whether to expand a business by investing in a new plant or equipment, and whether to put savings in a bank, in bonds, or in the stock market, for example. Furthermore, because the U.S. is ...
... decisions people make in this country—whether to get a loan to buy a new house or car or to start up a company, whether to expand a business by investing in a new plant or equipment, and whether to put savings in a bank, in bonds, or in the stock market, for example. Furthermore, because the U.S. is ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... from an anti-inflation policy used exclusively in LDCs-the exchange rate regime of a preannounced crawling peg. I do not address floating exchange rates because financial institutions in most LDCs are insufficiently developed to make that a viable policy option. Nor do I discuss the interesting ques ...
... from an anti-inflation policy used exclusively in LDCs-the exchange rate regime of a preannounced crawling peg. I do not address floating exchange rates because financial institutions in most LDCs are insufficiently developed to make that a viable policy option. Nor do I discuss the interesting ques ...
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.