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Class 17 Lecture notes (to be posted after class)
... • In an open-economy, fixed XR takes away monetary policy autonomy • Without monetary policy autonomy, governments cannot take countercyclical measures against (alternatively) – unemployment ...
... • In an open-economy, fixed XR takes away monetary policy autonomy • Without monetary policy autonomy, governments cannot take countercyclical measures against (alternatively) – unemployment ...
1990s - Bank i Kredyt
... Notwithstanding the fact that the Soviet banking system was an integral part of the planning process, banks did not act as financial intermediaries as they do in the market economies. Their main function was that of financial controllers in the planned economy. Credit flows were determined by the ce ...
... Notwithstanding the fact that the Soviet banking system was an integral part of the planning process, banks did not act as financial intermediaries as they do in the market economies. Their main function was that of financial controllers in the planned economy. Credit flows were determined by the ce ...
Unrewarded good fiscal behavior: The role of debt denomination
... • Because debt structure (original sin) makes real exchange rates and real interest rates matter for debt service • And these are very volatile and have the “wrong” cyclical properties, making debt service much riskier ...
... • Because debt structure (original sin) makes real exchange rates and real interest rates matter for debt service • And these are very volatile and have the “wrong” cyclical properties, making debt service much riskier ...
Debt Composition and Balance Sheet Effects of Exchange and
... growth of GDP was 4.4%, while the traditional fiscal deficit and the current account deficit accounted for 0.1% and 7.0% of GDP, respectively. Nevertheless, the crisis of 1994-95 involved a peso devaluation of 44% in nominal terms, and nominal interest rates increased from 16% in the last quarter of ...
... growth of GDP was 4.4%, while the traditional fiscal deficit and the current account deficit accounted for 0.1% and 7.0% of GDP, respectively. Nevertheless, the crisis of 1994-95 involved a peso devaluation of 44% in nominal terms, and nominal interest rates increased from 16% in the last quarter of ...
Choice of Exchange Rate Regime and Innovation of Risk
... consolidate of home currency, thus get constant Seignior age. The third is to keep its independence of monetary policy, and influence and even manipulate foreign policy. 3.2 The choice of RMB exchange rate system From 1994, China adopted a managed floating exchange rate system. After the 1997 Asian ...
... consolidate of home currency, thus get constant Seignior age. The third is to keep its independence of monetary policy, and influence and even manipulate foreign policy. 3.2 The choice of RMB exchange rate system From 1994, China adopted a managed floating exchange rate system. After the 1997 Asian ...
Class 10 PPT
... 4. The decrease in net capital outflow reduces the supply of dollars to be exchanged into foreign currency . . . ...
... 4. The decrease in net capital outflow reduces the supply of dollars to be exchanged into foreign currency . . . ...
NBER WORKING PAPER SERIES EXCHANGE RATE FLEXIBILITY AND Jorge Braga de Macedo
... It is seen from (11) that in order to have a well-behaved exchange rate 4, has to exceed -1. This implies a ceiling on initial debt, F, so that we can write: ...
... It is seen from (11) that in order to have a well-behaved exchange rate 4, has to exceed -1. This implies a ceiling on initial debt, F, so that we can write: ...
W o r k
... The goal of this paper is to quantitatively account for this puzzle by introducing price rigidity and local currency pricing (LCP ) in an otherwise standard dynamic general equilibrium model. In studying the impact on equilibrium allocations of some firms’ ability to price discriminate across count ...
... The goal of this paper is to quantitatively account for this puzzle by introducing price rigidity and local currency pricing (LCP ) in an otherwise standard dynamic general equilibrium model. In studying the impact on equilibrium allocations of some firms’ ability to price discriminate across count ...
Lecture 3 and 4 I.F
... This theory basically states that governments can manipulate (influence and control) the level of aggregate demand in the economy by increasing or decreasing tax levels and public spending. While monetary policy manipulates the money supply in order to reach its aims. This influence, in turn, contro ...
... This theory basically states that governments can manipulate (influence and control) the level of aggregate demand in the economy by increasing or decreasing tax levels and public spending. While monetary policy manipulates the money supply in order to reach its aims. This influence, in turn, contro ...
The Impact of the Global and Financial Crisis on Cuba
... both indices for advanced and emerging countries are broadly coincident with the most recent data available showing that the financial stressed conditions exist worldwide.3 The April 2009 WEO concludes that the current crisis in advanced economies is much more severe than any since 1980, affecting a ...
... both indices for advanced and emerging countries are broadly coincident with the most recent data available showing that the financial stressed conditions exist worldwide.3 The April 2009 WEO concludes that the current crisis in advanced economies is much more severe than any since 1980, affecting a ...
BALANCE OF PAYMENTS ADJUSTMENT
... approach. It implies that, if total absorption (expenditure) exceeds income (production), then imports will exceed exports, resulting in a balance of payments deficit. If the opposite occurs, i.e. where income exceeds absorption, then the balance of payments will be in surplus. A balance of payments ...
... approach. It implies that, if total absorption (expenditure) exceeds income (production), then imports will exceed exports, resulting in a balance of payments deficit. If the opposite occurs, i.e. where income exceeds absorption, then the balance of payments will be in surplus. A balance of payments ...
money supply
... of the short-run rigidity of the price level. • In a hypothetical world where the price level could adjust immediately to its new long-run level after a money supply increase, the dollar interest rate would not fall because prices would adjust immediately and prevent the real money supply from risin ...
... of the short-run rigidity of the price level. • In a hypothetical world where the price level could adjust immediately to its new long-run level after a money supply increase, the dollar interest rate would not fall because prices would adjust immediately and prevent the real money supply from risin ...
PDF Download
... policy as a stabilisation instrument and of exchange rate flexibility as an adjustment mechanism.1 Recent literature has stressed a number of effects of joining EMU which are not analysed in the traditional debate. First, a common currency is likely to increase trade within the EU. In this respect, ...
... policy as a stabilisation instrument and of exchange rate flexibility as an adjustment mechanism.1 Recent literature has stressed a number of effects of joining EMU which are not analysed in the traditional debate. First, a common currency is likely to increase trade within the EU. In this respect, ...
LCcarG640_en.pdf
... bases, relying heavily on the sale o f primary commodities or on earnings from the tourism industry, which is the most significant sector in most countries. They are, therefore, susceptible to fluctuations in commodity prices on international markets. The Caribbean region is also prone to natural di ...
... bases, relying heavily on the sale o f primary commodities or on earnings from the tourism industry, which is the most significant sector in most countries. They are, therefore, susceptible to fluctuations in commodity prices on international markets. The Caribbean region is also prone to natural di ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL PERSPECTIVES
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
Exchange rates bulletin - National Competitiveness Council
... While the level of external demand is considered more US Dollar (right hand axis) ...
... While the level of external demand is considered more US Dollar (right hand axis) ...
An Empirical Analysis on Excessive Reserves in U.S Banking
... to what Hall calls as “reserves being a perfect substitute for other forms of ...
... to what Hall calls as “reserves being a perfect substitute for other forms of ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: The International Transmission of Inflation
... Extending the model in this way also seems reasonable from an empirical standpoint since most demand-for-money studies have uncovered lags of several quarters or more in the adjustment process linking actual and desired money balances. To derive alternative testable hypotheses about the internationa ...
... Extending the model in this way also seems reasonable from an empirical standpoint since most demand-for-money studies have uncovered lags of several quarters or more in the adjustment process linking actual and desired money balances. To derive alternative testable hypotheses about the internationa ...
RTF format
... to fulfil the agreement. The correct rate would have been the indicative rate of the Reserve bank. This is however not the official rate of South Africa and I am not inclined to declare it as such. The reserve bank is not a commercial bank. The indicative rate is only a reflection, not prescriptive, ...
... to fulfil the agreement. The correct rate would have been the indicative rate of the Reserve bank. This is however not the official rate of South Africa and I am not inclined to declare it as such. The reserve bank is not a commercial bank. The indicative rate is only a reflection, not prescriptive, ...
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.