Exchange rate or inflation targeting in monetary policy?
... bulk of domestic liabilities are of short duration or are denominated in foreign currency, as is common among countries with underdeveloped financial markets or a history of high inflation. Under such conditions, debtors’ balance sheets can suffer major shocks when the domestic currency is devalued, ...
... bulk of domestic liabilities are of short duration or are denominated in foreign currency, as is common among countries with underdeveloped financial markets or a history of high inflation. Under such conditions, debtors’ balance sheets can suffer major shocks when the domestic currency is devalued, ...
Comparative Study on Monetary and Fiscal Policy in the Eurozone
... systemic risk for the stability of the banking system arises and the extended loans should not exceed the amount of available funds in the Banking Department deposit placed with the Issue Department. The strictly limited function of lender of last resort contributes to lower the level of moral hazar ...
... systemic risk for the stability of the banking system arises and the extended loans should not exceed the amount of available funds in the Banking Department deposit placed with the Issue Department. The strictly limited function of lender of last resort contributes to lower the level of moral hazar ...
T The Federal Reserve Responds to Crises: HOW DO CRISES AFFECT THE
... led to increased demand for defense and security. Resources that would have been spent on other needs—consumption of health care, durable goods, investment, etc.—went instead to prevent further attacks. These effects lie outside the Fed’s major macroeconomic mission, to contribute to maximum sustain ...
... led to increased demand for defense and security. Resources that would have been spent on other needs—consumption of health care, durable goods, investment, etc.—went instead to prevent further attacks. These effects lie outside the Fed’s major macroeconomic mission, to contribute to maximum sustain ...
Washington Consensus via IFIs - Law & Finance Institutional
... Idea of three major institutions, International Monetary Fund (IMF), International Bank for Reconstruction & Development (World Bank), plus International Trade Organization (ITO failed in adoption, but Havana Charter and GATT, leading to WTO finally 1994) Economic concepts of fixed currency parities ...
... Idea of three major institutions, International Monetary Fund (IMF), International Bank for Reconstruction & Development (World Bank), plus International Trade Organization (ITO failed in adoption, but Havana Charter and GATT, leading to WTO finally 1994) Economic concepts of fixed currency parities ...
The Federal Reserve Responds to Crises: September 11th Was Not
... led to increased demand for defense and security. Resources that would have been spent on other needs—consumption of health care, durable goods, investment, etc.—went instead to prevent further attacks. These effects lie outside the Fed’s major macroeconomic mission, to contribute to maximum sustain ...
... led to increased demand for defense and security. Resources that would have been spent on other needs—consumption of health care, durable goods, investment, etc.—went instead to prevent further attacks. These effects lie outside the Fed’s major macroeconomic mission, to contribute to maximum sustain ...
Simulation of Exchange Rates of Nigerian Naira
... an historical high of 157.85 in September of 2011 and a record low of 0.53 in October of 1980 with a depreciation rate of 4.78 percent against the US Dollar during the last 12 months of the year 2011 [29]. Different currencies are in use in different countries and their relation to each other is kno ...
... an historical high of 157.85 in September of 2011 and a record low of 0.53 in October of 1980 with a depreciation rate of 4.78 percent against the US Dollar during the last 12 months of the year 2011 [29]. Different currencies are in use in different countries and their relation to each other is kno ...
Disentangling returns from hedged international equities
... All data, unless otherwise stated in the footnote of the relevant page is as at June 2009 and may have changed since. This information has been provided for the information of the recipient only and is not for onward distribution. Issued in the UK by Record Currency Management Limited, which is auth ...
... All data, unless otherwise stated in the footnote of the relevant page is as at June 2009 and may have changed since. This information has been provided for the information of the recipient only and is not for onward distribution. Issued in the UK by Record Currency Management Limited, which is auth ...
9 Money
... – Give the central bank control over the money multiplier (see below) • Bank earns interest on loans but (traditionally) not on reserves • Banks usually want to have as little reserves as they can, so they just have ρd • Therefore bank balance sheet is typically: Assets ...
... – Give the central bank control over the money multiplier (see below) • Bank earns interest on loans but (traditionally) not on reserves • Banks usually want to have as little reserves as they can, so they just have ρd • Therefore bank balance sheet is typically: Assets ...
Monetary Policy and Open
... FEDRegulationof Monetarl'Policy(cont.) The 3rd and last instrument the FED uses to impact monetary policy is the reserve requirement or reserve ratio (deposits x reserve ratio). This is the percent of deposits that banks must hold in reserve at the FED and cannot loan out. The FED sets the amount, ...
... FEDRegulationof Monetarl'Policy(cont.) The 3rd and last instrument the FED uses to impact monetary policy is the reserve requirement or reserve ratio (deposits x reserve ratio). This is the percent of deposits that banks must hold in reserve at the FED and cannot loan out. The FED sets the amount, ...
the equilibrium real exchange rate
... This aim the paper is to scrutinize whether the equilibrium exchange rate framework could contribute to the understanding of misalignments in the real exchange rate in Turkey and whether this could be used as a guideline for policy interventions by the monetary authorities. Estimation results indica ...
... This aim the paper is to scrutinize whether the equilibrium exchange rate framework could contribute to the understanding of misalignments in the real exchange rate in Turkey and whether this could be used as a guideline for policy interventions by the monetary authorities. Estimation results indica ...
Stock prices and the East Asian Financial Crisis
... The following model is based on the Krugman (1979) model of currency crisis, with stock market effects incorporated through the money demand specification. As with Edin and Vredin (1993), this is only used as a basis for the empirical investigation and as with the leading indicator literature in gen ...
... The following model is based on the Krugman (1979) model of currency crisis, with stock market effects incorporated through the money demand specification. As with Edin and Vredin (1993), this is only used as a basis for the empirical investigation and as with the leading indicator literature in gen ...
NBER WORKING PAPER SERIES Christina D. Romer David H. Romer
... Szymczak said simply that the System "must not provide reserves to such an extent as to lead to inflation" (6/16/59, p. 30). While concern over inflation was clearly a key motivating force among monetary policymakers in the 1950s, it was not the only concern. The FOMC also expressed concern over une ...
... Szymczak said simply that the System "must not provide reserves to such an extent as to lead to inflation" (6/16/59, p. 30). While concern over inflation was clearly a key motivating force among monetary policymakers in the 1950s, it was not the only concern. The FOMC also expressed concern over une ...
The Dazzling Dollar (Brookings Papers on Economic Activity, 1985
... short-termbonds, andwhy the long-terminterestrate may not equalthe average of expected future short-termrates. Risk would also account for the diversityin expected rates of returnon bonds and equity capital. This problemis addressedfurtherbelow. For now, I will assume that 2. Any such calculation is ...
... short-termbonds, andwhy the long-terminterestrate may not equalthe average of expected future short-termrates. Risk would also account for the diversityin expected rates of returnon bonds and equity capital. This problemis addressedfurtherbelow. For now, I will assume that 2. Any such calculation is ...
The Unsustainable US Current Account Position Revisited * Maurice Obstfeld and Kenneth Rogoff
... should recognize that this series is intended to encompass all type of assets, including stocks, bonds, bank loans, and direct foreign investment. Uncertainty about the US net foreign asset position is high, however, because it is difficult firmly to ascertain capital gains and losses on US position ...
... should recognize that this series is intended to encompass all type of assets, including stocks, bonds, bank loans, and direct foreign investment. Uncertainty about the US net foreign asset position is high, however, because it is difficult firmly to ascertain capital gains and losses on US position ...
1. Setting the exchange rate
... fluctuation around a central rate. When talking about flexible system it is often referred to ‘managed’ or ‘dirty’ floating which means that exchange rates are not absolutely determined by market forces. Under modern floating systems central banks may intervene to smooth daily exchange rate fluctuat ...
... fluctuation around a central rate. When talking about flexible system it is often referred to ‘managed’ or ‘dirty’ floating which means that exchange rates are not absolutely determined by market forces. Under modern floating systems central banks may intervene to smooth daily exchange rate fluctuat ...
Document
... inflation if domestic price setters take into account marginal cost of foreign exchange when setting prices. Depreciation of exchange rate may affect inflation by raising nominal wages, through implicit or explicit indexation mechanisms. Despite these effects of exchange rate on inflation, fisca ...
... inflation if domestic price setters take into account marginal cost of foreign exchange when setting prices. Depreciation of exchange rate may affect inflation by raising nominal wages, through implicit or explicit indexation mechanisms. Despite these effects of exchange rate on inflation, fisca ...
Harris Delias Alan C. Stockman Working Paper No. 13142
... nontraded goods Z and Z be equated within each country. There are obviously many possible equilibria, depending on the initial distribution of wealth (as well as the set of available assets). We follow Lucas (1982) in discussing an ...
... nontraded goods Z and Z be equated within each country. There are obviously many possible equilibria, depending on the initial distribution of wealth (as well as the set of available assets). We follow Lucas (1982) in discussing an ...
DOCUMENTOS DE TRABAJO FCEA Departamento de Economía
... construction (CONS). The services sector is not considered in this group. State budgeted services, such as education and health, are considered below in the fiscal policy group, while tourism is included in the external sector group. Investment (INV) is considered even though it is a component of GD ...
... construction (CONS). The services sector is not considered in this group. State budgeted services, such as education and health, are considered below in the fiscal policy group, while tourism is included in the external sector group. Investment (INV) is considered even though it is a component of GD ...
East Asia: Success and Crisis
... b. or competition for trade with a common third partner (ex. East Asia’s trade with Japan) 2. Integrated financial markets a. Banks are interconnected through loans (Mexican Banks were extending trade credit to Costa Rican banks prior to the 1994 crisis) b. Interconnection through bond holdings. (Ko ...
... b. or competition for trade with a common third partner (ex. East Asia’s trade with Japan) 2. Integrated financial markets a. Banks are interconnected through loans (Mexican Banks were extending trade credit to Costa Rican banks prior to the 1994 crisis) b. Interconnection through bond holdings. (Ko ...
Macro Handout 19: Inflation Targeting and
... Inflation targeting uses autonomous monetary policies to achieve a predetermined inflation rate target: First, the Fed chooses a target inflation rate. Second, the Fed pursues autonomous monetary policies to meet the target. That is, the Fed shifts the Fed policy (FP) curve and therefore the agg ...
... Inflation targeting uses autonomous monetary policies to achieve a predetermined inflation rate target: First, the Fed chooses a target inflation rate. Second, the Fed pursues autonomous monetary policies to meet the target. That is, the Fed shifts the Fed policy (FP) curve and therefore the agg ...
Study Guide 13
... Delivery and payment in 6 months In 6 months, what if $ appreciates against euro? I have to spend more euros than expected. Uncertainty discourages international trade – Bias toward trade within a nation ...
... Delivery and payment in 6 months In 6 months, what if $ appreciates against euro? I have to spend more euros than expected. Uncertainty discourages international trade – Bias toward trade within a nation ...
PRESS RELEASE ON THE CBRT INTEREST RATE CUTS
... uncertainty occurred in May 2002. 13. Second, the developments in agricultural and food prices, which are greatly influenced by natural conditions that are not under the control of economic policy, should be taken into account. However, for a healthy analysis of the main trend in inflation the cours ...
... uncertainty occurred in May 2002. 13. Second, the developments in agricultural and food prices, which are greatly influenced by natural conditions that are not under the control of economic policy, should be taken into account. However, for a healthy analysis of the main trend in inflation the cours ...
135 Fiscal policy in a monetary union from the perspective of the
... In this paper we are investigating the influence of fiscal policy on the growth performance in the long run. The analysis is based on the neoclassical growth model of a small (in economic terms) country, which participates in an economic and monetary union. The model is, of course, inspired by the E ...
... In this paper we are investigating the influence of fiscal policy on the growth performance in the long run. The analysis is based on the neoclassical growth model of a small (in economic terms) country, which participates in an economic and monetary union. The model is, of course, inspired by the E ...
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.