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International Coordination
... For the purposes of this paper, coordination is defined in the conventional sense of the Nash cooperative or bargaining solution from game theory, as in the famous “prisoners’ dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instrume ...
... For the purposes of this paper, coordination is defined in the conventional sense of the Nash cooperative or bargaining solution from game theory, as in the famous “prisoners’ dilemma.” There is scope for coordination if all parties would be better off under an agreement to put their policy instrume ...
Exchange rate strategies for small open developed Economics Department, RBNZ
... move with swings in fundamentals such as commodity prices or foreign demand. But it is also well known that exchange rates often deviate from fundamentals for very extended periods of time. For example, the persistence of deviations from PPP in modern floating rate data has been difficult to explain ...
... move with swings in fundamentals such as commodity prices or foreign demand. But it is also well known that exchange rates often deviate from fundamentals for very extended periods of time. For example, the persistence of deviations from PPP in modern floating rate data has been difficult to explain ...
Davidson on Keynes: the open economy dimension
... 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 ...
Currency Wars, Coordination, and Capital Controls
... caveats, the exchange rate channel suggests an average decrease in EM real net exports of 0.45%, with a range going from 0.15% to 0.9% of GDP, taking place over a number of years. For later reference, let me note that there is clearly more uncertainty about the strength of this second channel than a ...
... caveats, the exchange rate channel suggests an average decrease in EM real net exports of 0.45%, with a range going from 0.15% to 0.9% of GDP, taking place over a number of years. For later reference, let me note that there is clearly more uncertainty about the strength of this second channel than a ...
Internal Balance
... • Under a system of fixed exchange rates, all countries but the U.S. had ineffective monetary policies for internal balance. • The principal tool for internal balance was fiscal policy (government purchases or taxes). • The principal tools for external balance were borrowing from the IMF, restrictio ...
... • Under a system of fixed exchange rates, all countries but the U.S. had ineffective monetary policies for internal balance. • The principal tool for internal balance was fiscal policy (government purchases or taxes). • The principal tools for external balance were borrowing from the IMF, restrictio ...
Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic
... If all countries produce the same good (or the same set of goods) and goods are freely traded among countries, so that the real exchange rate equals one, then the relationship between domestic and foreign prices and the nominal exchange rate is (a) P = PFor / enom. (b) P = enom / PFor. (c) enom = P ...
... If all countries produce the same good (or the same set of goods) and goods are freely traded among countries, so that the real exchange rate equals one, then the relationship between domestic and foreign prices and the nominal exchange rate is (a) P = PFor / enom. (b) P = enom / PFor. (c) enom = P ...
Full Issue - Expert Journal of Economics
... The investment takes the form of sums of money spent for the acquisition of capital goods, changes in business inventories, and the purchases of new residential housing that are not currently consumed, but will be used in the future for the growth of the wealth. The work covered by this study aims t ...
... The investment takes the form of sums of money spent for the acquisition of capital goods, changes in business inventories, and the purchases of new residential housing that are not currently consumed, but will be used in the future for the growth of the wealth. The work covered by this study aims t ...
Zimbabwe Monetary Policy 1998-2012: From Hyperinflation to
... determination, using cointegration analysis, to determine identify whether purchasing power parity held during this period.. We explore the possibility that the government was pursuing an alternative monetary and exchange rate policy prior to 2009, following a Chinese or former Soviet Union (FSU) fo ...
... determination, using cointegration analysis, to determine identify whether purchasing power parity held during this period.. We explore the possibility that the government was pursuing an alternative monetary and exchange rate policy prior to 2009, following a Chinese or former Soviet Union (FSU) fo ...
Economic Growth under Alternative Monetary Regimes:
... Equation (1) makes the total rate of saving g equal to domestic saving “sr”, plus the rate of foreign saving “B”. In (2) desired investment depends on the rate of profit and the interest rate. Expression (3) shows the rate of profit in terms of the output/capital ratio, the real exchange rate, and t ...
... Equation (1) makes the total rate of saving g equal to domestic saving “sr”, plus the rate of foreign saving “B”. In (2) desired investment depends on the rate of profit and the interest rate. Expression (3) shows the rate of profit in terms of the output/capital ratio, the real exchange rate, and t ...
Chapter 13 The Federal Reserve System
... other banks through the federal funds market. But what if there is a shortage of reserves throughout the financial system? In a fractional reserve banking system, it is possible for widespread financial panic to occur. The creation of the Federal Reserve System was largely motivated by the Panic of ...
... other banks through the federal funds market. But what if there is a shortage of reserves throughout the financial system? In a fractional reserve banking system, it is possible for widespread financial panic to occur. The creation of the Federal Reserve System was largely motivated by the Panic of ...
Morris Inflationdynamicsandtheparallelmarketforforeignexchange
... official exchange rate will increase the budget deficit and thus the flow of credit to the Government if Government has a deficit on its foreign exchange account. The result is reversed if Government has a surplus on the foreign exchange account. This result is obviously going to depend on exactly w ...
... official exchange rate will increase the budget deficit and thus the flow of credit to the Government if Government has a deficit on its foreign exchange account. The result is reversed if Government has a surplus on the foreign exchange account. This result is obviously going to depend on exactly w ...
Taylor Economics Chapter 31 Test Bank
... Japan as a place where they should invest for a future high rate of return, while Japanese investors are looking to lower their investments in the US. The combined effect will A. shift the demand curve out, the supply curve shifts in and the value of the dollar decreases. B. shift the supply curve o ...
... Japan as a place where they should invest for a future high rate of return, while Japanese investors are looking to lower their investments in the US. The combined effect will A. shift the demand curve out, the supply curve shifts in and the value of the dollar decreases. B. shift the supply curve o ...
Understanding Bilateral Exchange Rate Volatility
... emerging market economies experience2. Accordingly, the central empirical hypothesis of the paper is that in addition to the standard OCA factors, bilateral exchange rate volatility is related to the stock of bilateral financial claims across countries. For the ‘rich’ countries that are not constrai ...
... emerging market economies experience2. Accordingly, the central empirical hypothesis of the paper is that in addition to the standard OCA factors, bilateral exchange rate volatility is related to the stock of bilateral financial claims across countries. For the ‘rich’ countries that are not constrai ...
Capital Controls and Optimal Chinese Monetary Policy
... monetary policy faces additional constraints in stabilizing inflation and output fluctuations. Since private agents in the economy are restricted from trading foreign assets and the nominal exchange rate is fixed, the country is effectively in financial autarky and international risk-sharing becomes ...
... monetary policy faces additional constraints in stabilizing inflation and output fluctuations. Since private agents in the economy are restricted from trading foreign assets and the nominal exchange rate is fixed, the country is effectively in financial autarky and international risk-sharing becomes ...
1 Grexit: why it will not happen
... Rose (2006) presents an event study on past currency exits and breakups and examines the gross features of countries, territories or other entities that exited currency unions since the Second World War. By “currency unions”, Rose effectively means that a country’s money was interc ...
... Rose (2006) presents an event study on past currency exits and breakups and examines the gross features of countries, territories or other entities that exited currency unions since the Second World War. By “currency unions”, Rose effectively means that a country’s money was interc ...
View/Open
... This study found the foreign buyer's income to be the most significant variable affecting exports for all five commodities except soybeans when the exchange rate was entered as a separate regressor. ...
... This study found the foreign buyer's income to be the most significant variable affecting exports for all five commodities except soybeans when the exchange rate was entered as a separate regressor. ...
Short-Term Capital Flows, The Real Economy and Income
... residents and non-residents, although here distinction may well be between large and small investors rather than their location. Moreover, as the result of decades of overseas asset acquisition by domestic wealth-holders (‘capital flight’) not only do their portfolios have a large foreign-exchange d ...
... residents and non-residents, although here distinction may well be between large and small investors rather than their location. Moreover, as the result of decades of overseas asset acquisition by domestic wealth-holders (‘capital flight’) not only do their portfolios have a large foreign-exchange d ...
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... below fair value. Thus we would expect that import country GDP will be negatively related to filings. It is less clear how export country GDP is related to filings. One possibility is that a weak foreign economy increases the likelihood that foreign firms will cut prices to maintain overall levels of o ...
... below fair value. Thus we would expect that import country GDP will be negatively related to filings. It is less clear how export country GDP is related to filings. One possibility is that a weak foreign economy increases the likelihood that foreign firms will cut prices to maintain overall levels of o ...
EURO ADOPTION AND EXPORT: A CASE STUDY OF THE CZECH
... strong effective exchange rate appreciation. The growth can most likely be attributed to the nominal exchange rate appreciation in 2008. In 2009, the difference in the exchange rate regimes made a major dissimilarity and, while Slovak REER further increased, CZK with its exchange rate elasticity dep ...
... strong effective exchange rate appreciation. The growth can most likely be attributed to the nominal exchange rate appreciation in 2008. In 2009, the difference in the exchange rate regimes made a major dissimilarity and, while Slovak REER further increased, CZK with its exchange rate elasticity dep ...
Open-economy Macroeconomic Accounting - Inter
... to make a payment for investment income is entered as a debit (because domestic residents are using capital services that are produced by foreign-owned capital). Again, it is important to remember that what is entered here is the value of the services provided (which gives rise to the entitlement to ...
... to make a payment for investment income is entered as a debit (because domestic residents are using capital services that are produced by foreign-owned capital). Again, it is important to remember that what is entered here is the value of the services provided (which gives rise to the entitlement to ...
Chapter 12 - Pearson Higher Education
... banks have an incentive to make riskier investments when they know they will be bailed out – Moral hazard problems are exacerbated by governments’ providing incentives or threatening banks to make bad loans for political ends • In East Asian crisis, such loans gave rise to the term crony capitalism ...
... banks have an incentive to make riskier investments when they know they will be bailed out – Moral hazard problems are exacerbated by governments’ providing incentives or threatening banks to make bad loans for political ends • In East Asian crisis, such loans gave rise to the term crony capitalism ...
Inflation Report Deflation - an outline of the problems
... and inflation expectations at a positive, but low, level. This can be done by having an explicit inflation target that functions as a clear benchmark for participants in the economy. Monetary policy should be forward-looking to enable preventive measures to be taken if inflation threatens to fall be ...
... and inflation expectations at a positive, but low, level. This can be done by having an explicit inflation target that functions as a clear benchmark for participants in the economy. Monetary policy should be forward-looking to enable preventive measures to be taken if inflation threatens to fall be ...
The International Financial System: Crises and Reforms
... The crises generated a large literature. Nouriel Roubini of New York University maintains a bibliography of Asian- and financial-crisis related material on his website (www.stern.nyu.edu/~nroubini/asia/AsiaHomepage.html). I will draw heavily in these lectures on two excellent papers by my IMF collea ...
... The crises generated a large literature. Nouriel Roubini of New York University maintains a bibliography of Asian- and financial-crisis related material on his website (www.stern.nyu.edu/~nroubini/asia/AsiaHomepage.html). I will draw heavily in these lectures on two excellent papers by my IMF collea ...
Foreign-exchange reserves
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.