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 ...
The new EU countries and euro adoption
... from institutions like national central banks and ministries of finance in CEE countries are worth noting.8 Prior to the crisis, cost-benefit analyses from these institutions emphasised the positive effects of adopting the euro, such as the elimination of exchange rate risk, declining interest rates a ...
... from institutions like national central banks and ministries of finance in CEE countries are worth noting.8 Prior to the crisis, cost-benefit analyses from these institutions emphasised the positive effects of adopting the euro, such as the elimination of exchange rate risk, declining interest rates a ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... exchange rate from moving more than 1 percent away from an agreed par value relative to the 1 July 1944 gold content of the U.S. dollar. Only “to correct a fundamental disequilibrium”-a term that was nowhere definedcould a member propose a parity change to the Fund (IMF, Articles of Agreement, Artic ...
... exchange rate from moving more than 1 percent away from an agreed par value relative to the 1 July 1944 gold content of the U.S. dollar. Only “to correct a fundamental disequilibrium”-a term that was nowhere definedcould a member propose a parity change to the Fund (IMF, Articles of Agreement, Artic ...
del01-Gros 221119 en
... seat on the Governing Council of the ECB, but this should not prevent weaker countries from considering to adopt the euro unilaterally, either via a currency board (as in Estonia and Bulgaria) of via full euroisation under which the domestic currency is fully substituted by euro notes and coins (whi ...
... seat on the Governing Council of the ECB, but this should not prevent weaker countries from considering to adopt the euro unilaterally, either via a currency board (as in Estonia and Bulgaria) of via full euroisation under which the domestic currency is fully substituted by euro notes and coins (whi ...
Capital Account Liberalization and Exchange Rate Flexibility
... financial globalization as a new stage in the evolution of the international monetary system. It resulted since the early 1990s, to a stronger integration of emerging countries in international financial markets (Jégourel et Teîletche, 2001, pp. 399-400). The integration process is reinforced by the ...
... financial globalization as a new stage in the evolution of the international monetary system. It resulted since the early 1990s, to a stronger integration of emerging countries in international financial markets (Jégourel et Teîletche, 2001, pp. 399-400). The integration process is reinforced by the ...
Ho(313).pdf
... openness, exchange rates and prices found stronger evidence of PPP for countries with less exchange rate volatility, and shorter distance from other countries but not for countries with greater openness to trade. Theoretically, price level, output and exchange rates are affected by changes in moneta ...
... openness, exchange rates and prices found stronger evidence of PPP for countries with less exchange rate volatility, and shorter distance from other countries but not for countries with greater openness to trade. Theoretically, price level, output and exchange rates are affected by changes in moneta ...
Solutions for Chapters 22-24
... scheme, there will be immediate inflation. The army would demand that the king pay them ten percent more coins for their wages. 8. M2 includes everything in M1, plus savings accounts, money market accounts, and some other categories. A shift of funds between, say, savings accounts and checking acco ...
... scheme, there will be immediate inflation. The army would demand that the king pay them ten percent more coins for their wages. 8. M2 includes everything in M1, plus savings accounts, money market accounts, and some other categories. A shift of funds between, say, savings accounts and checking acco ...
Structural Volatility in Mexico: A Policy Report - Inter
... a) Sudden jumps in the exchange rate are harmful to the domestic economy and those of neighbors. Very low frequency movements are only conducive to inflation. Fluctuations in the medium frequency of nominal exchange rates may facilitate adjustment in the presence of nominal rigidities. Suppressing v ...
... a) Sudden jumps in the exchange rate are harmful to the domestic economy and those of neighbors. Very low frequency movements are only conducive to inflation. Fluctuations in the medium frequency of nominal exchange rates may facilitate adjustment in the presence of nominal rigidities. Suppressing v ...
a. Depositors become concerned about the safety of depository
... Depositors will withdraw reserves, so the money supply will decrease. b. The Fed lowers the required reserve ratio. Banks will find themselves with excess reserves, which they will lend out, so the money supply will increase. c. The economy enters a recession and banks have a hard time finding credi ...
... Depositors will withdraw reserves, so the money supply will decrease. b. The Fed lowers the required reserve ratio. Banks will find themselves with excess reserves, which they will lend out, so the money supply will increase. c. The economy enters a recession and banks have a hard time finding credi ...
ECONOMIC POLICY AND THE REAL EXCHANGE RATE: RUSSIA
... The combination of all these forces produced the crisis of 1998, which hit Russia very hard. The country’s international reserves had been fluctuating in the range of $11 to $12 billion since late 1997, and stood at $11.2 billion at the end of June, 1998. At the same time the overall balance of paym ...
... The combination of all these forces produced the crisis of 1998, which hit Russia very hard. The country’s international reserves had been fluctuating in the range of $11 to $12 billion since late 1997, and stood at $11.2 billion at the end of June, 1998. At the same time the overall balance of paym ...
The Macroeconomics Of The Unofficial Foreign Exchange Market In
... of the coffeeboom. By the end of 1977,reserves were at the unprecedented level of nearly 5 months of imports. Fiscal pressures were eased as well, since the Government chose to tax away most of the windfall in export proceeds. The weak underlying external situation emerged dramatically in 1978, howe ...
... of the coffeeboom. By the end of 1977,reserves were at the unprecedented level of nearly 5 months of imports. Fiscal pressures were eased as well, since the Government chose to tax away most of the windfall in export proceeds. The weak underlying external situation emerged dramatically in 1978, howe ...
Costs and Benefits (% GDP)
... • Less uncertainty: No exchange rate risk • Benefits of an international currency • Does monetary union lead to more economic growth? ...
... • Less uncertainty: No exchange rate risk • Benefits of an international currency • Does monetary union lead to more economic growth? ...
Monetary and Fiscal Operations in the People`s Republic of China
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
Monetary Policy Tools 16.3
... • What is the process of money creation? • What three tools does the Federal Reserve use to change the money supply? • Why are some tools of monetary policy favored over others? ...
... • What is the process of money creation? • What three tools does the Federal Reserve use to change the money supply? • Why are some tools of monetary policy favored over others? ...
Monetary Options for Postwar Iraq
... October 15. These will replace both the Saddam dinars and the so-called Swiss dinars that circulate in the Kurdish areas of Iraq. The new notes will be printed by the British company De La Rue, which printed the Swiss dinars and still possesses the plates in its vaults. The Saddam dinar will be reti ...
... October 15. These will replace both the Saddam dinars and the so-called Swiss dinars that circulate in the Kurdish areas of Iraq. The new notes will be printed by the British company De La Rue, which printed the Swiss dinars and still possesses the plates in its vaults. The Saddam dinar will be reti ...
Slide 1
... Channel of Monetary Policy • When the central bank increases the money supply, banks have excess liquidity which they use to make more loans. • The supply of loanable funds increases pushing down interest rates. • Lower interest rates implies an increase in borrowing and demand for consumer durable ...
... Channel of Monetary Policy • When the central bank increases the money supply, banks have excess liquidity which they use to make more loans. • The supply of loanable funds increases pushing down interest rates. • Lower interest rates implies an increase in borrowing and demand for consumer durable ...
Exchange rate movements and export prices An empirical analysis
... ∗ CREST and EUREQua, University of Paris I. Email: [email protected] ...
... ∗ CREST and EUREQua, University of Paris I. Email: [email protected] ...
Slide 1
... If CA>0, a nation increases its net foreign wealth by consuming less than its output. The savings are used to acquire foreign assets. ...
... If CA>0, a nation increases its net foreign wealth by consuming less than its output. The savings are used to acquire foreign assets. ...
A Macroeconomic Theory of the Open Economy
... Capital Flight from Mexico The increase in NCO causes an increase in the supply of pesos in the foreign exchange ...
... Capital Flight from Mexico The increase in NCO causes an increase in the supply of pesos in the foreign exchange ...
Currency Boards - Cato Institute
... automatically act to rebalance financial flows. This explains why speculative attacks against currencies issued by currency boards have always ended in failure, with no devaluations. Argentina in 1995 and 2001 is but one example. Central banks in developing countries s imultaneous ly m an ag e excha ...
... automatically act to rebalance financial flows. This explains why speculative attacks against currencies issued by currency boards have always ended in failure, with no devaluations. Argentina in 1995 and 2001 is but one example. Central banks in developing countries s imultaneous ly m an ag e excha ...
Part I Overview and Poverty Impact of Main Macroeconomic Policies
... the exchange rate. In addition, macroeconomic stabilization was based on administrative measures that restrained investments by regional governments and public corporations. In turn, a large share of foreign trade remained under administrative control, either through quotas and fairly high tariffs o ...
... the exchange rate. In addition, macroeconomic stabilization was based on administrative measures that restrained investments by regional governments and public corporations. In turn, a large share of foreign trade remained under administrative control, either through quotas and fairly high tariffs o ...
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.