Document
... growth rate of GDP being equal to its potential rate of growth. B. the nominal federal funds rate minus inflation. C. the real federal funds rate plus inflation. D. the federal funds rate consistent with zero ...
... growth rate of GDP being equal to its potential rate of growth. B. the nominal federal funds rate minus inflation. C. the real federal funds rate plus inflation. D. the federal funds rate consistent with zero ...
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES
... where µ is the base money multiplier, M2 is broad money, R is the level of foreign exchange reserves, 0 is the interest semi-elasticity of the demand for money and B the rate of credit expansion. In this context, Calvo (1997) emphasizes the importance of the ratio eR/M2 and of the ratio of reserves ...
... where µ is the base money multiplier, M2 is broad money, R is the level of foreign exchange reserves, 0 is the interest semi-elasticity of the demand for money and B the rate of credit expansion. In this context, Calvo (1997) emphasizes the importance of the ratio eR/M2 and of the ratio of reserves ...
On floating exchange rates, currency depreciation and effective
... same direction: the real exchange rate falls when domestic currency appreciates; and a rise in the real exchange rate also means that the domestic currency depreciates in real terms. The optimality of fixed exchange rates has long been rejected under the presumption that if the economy faces primari ...
... same direction: the real exchange rate falls when domestic currency appreciates; and a rise in the real exchange rate also means that the domestic currency depreciates in real terms. The optimality of fixed exchange rates has long been rejected under the presumption that if the economy faces primari ...
Purchasing Power Parity: Implication with respect to
... inflationary early warning signals on the dollar standard’s periphery and eventual lagged feedback. McKinnon (2011) talks about stagflation in the United States of America. Non-zero U.S. short term interest rates cause a massive hot money outflows into the emerging markets. Central bank of each emer ...
... inflationary early warning signals on the dollar standard’s periphery and eventual lagged feedback. McKinnon (2011) talks about stagflation in the United States of America. Non-zero U.S. short term interest rates cause a massive hot money outflows into the emerging markets. Central bank of each emer ...
Financial Globalization and the Russian Crisis of 1998
... we shall refer to as the “GKO market”--and in the stock market. This facilitated spillovers from the East Asian crisis as Korean and Brazilian investors began exiting the GKO market in October 1997as a result of liquidity pressures at home. This sequence does not mean that financial globalization ca ...
... we shall refer to as the “GKO market”--and in the stock market. This facilitated spillovers from the East Asian crisis as Korean and Brazilian investors began exiting the GKO market in October 1997as a result of liquidity pressures at home. This sequence does not mean that financial globalization ca ...
The Power of the US Dollar
... (also known as the yuan), at a fairly stable level relative to the dollar. The government does not want its exporters and importers to face too much currency volatility. Moreover, until recently, there were strong pressures for the renminbi to appreciate because China was posting large trade surplus ...
... (also known as the yuan), at a fairly stable level relative to the dollar. The government does not want its exporters and importers to face too much currency volatility. Moreover, until recently, there were strong pressures for the renminbi to appreciate because China was posting large trade surplus ...
1 Evolution of financial markets
... has a direct impact on the capital base of the companies listed. In the case of nonfinancial companies, the reduction in their market value can represent the need for strengthening the guaranties offered in credit operation or, in more extreme cases, restrictions on their access to credit. For banks ...
... has a direct impact on the capital base of the companies listed. In the case of nonfinancial companies, the reduction in their market value can represent the need for strengthening the guaranties offered in credit operation or, in more extreme cases, restrictions on their access to credit. For banks ...
Impact of oil prices on Russian ruble on condition of floating
... consequently leads to reduction of imports. Thus, the floating exchange rate prevents possible trade and budget imbalances in the period of drastic decline in exports. Use of this kind of monetary policy allowed softening the negative effect of lowering oil prices on the Russian economy. In the firs ...
... consequently leads to reduction of imports. Thus, the floating exchange rate prevents possible trade and budget imbalances in the period of drastic decline in exports. Use of this kind of monetary policy allowed softening the negative effect of lowering oil prices on the Russian economy. In the firs ...
lower relative inflation
... economic development. • C Firstly, factor-driven economies “compete based on their factor endowments – primarily unskilled labour and natural resources ...” • C Secondly, efficiency-driven economies “must begin to develop more efficient production processes and increase product quality ... driven by ...
... economic development. • C Firstly, factor-driven economies “compete based on their factor endowments – primarily unskilled labour and natural resources ...” • C Secondly, efficiency-driven economies “must begin to develop more efficient production processes and increase product quality ... driven by ...
Exchange Rates and Purchasing Power Parity
... Much of this section on international finance will be directly or indirectly concerned with exchange rates ...
... Much of this section on international finance will be directly or indirectly concerned with exchange rates ...
Argentina: The Default before the Storm
... and 2010 debt exchanges, and paying off the creditors that refused to participate in those same debt exchanges. 1 Argentina, in spite of the potentially high cost of default, has refused to negotiate a settlement with the holdout creditors. As a result, exchange bondholders have not received their i ...
... and 2010 debt exchanges, and paying off the creditors that refused to participate in those same debt exchanges. 1 Argentina, in spite of the potentially high cost of default, has refused to negotiate a settlement with the holdout creditors. As a result, exchange bondholders have not received their i ...
ECON 8423-001 International Finance
... In each of these contexts we want to understand the gains from trade on international financial markets. We want to know how a country's access to IFM is likely to affect welfare of its citizens and how it may influence production decisions of its firms. We will find that IFM will, in general, affec ...
... In each of these contexts we want to understand the gains from trade on international financial markets. We want to know how a country's access to IFM is likely to affect welfare of its citizens and how it may influence production decisions of its firms. We will find that IFM will, in general, affec ...
Annex VI: External debt ratio
... Disbursed resources (DISB) - use of the resources from total credit guarantees of a creditor for the reporting period. Amortization payments (AMT) - payments in foreign currency, in goods or services as repayment of principal debt for the reporting period. Interest payments (INT) - actual interest p ...
... Disbursed resources (DISB) - use of the resources from total credit guarantees of a creditor for the reporting period. Amortization payments (AMT) - payments in foreign currency, in goods or services as repayment of principal debt for the reporting period. Interest payments (INT) - actual interest p ...
CHAPTER 19 The Goods Market in an Open Economy CHAPTER 19
... •Now we distinguish between the domestic demand for goods and the demand for domestic goods. •Some domestic demand falls on foreign goods, and some of the demand for domestic goods comes from foreigners. ...
... •Now we distinguish between the domestic demand for goods and the demand for domestic goods. •Some domestic demand falls on foreign goods, and some of the demand for domestic goods comes from foreigners. ...
L06_CurrentAccount
... • Lower Per-Capita income, Higher inflation, and Higher External Debt --- lower the country’s credit rating ...
... • Lower Per-Capita income, Higher inflation, and Higher External Debt --- lower the country’s credit rating ...
Mankiw 5/e Chapter 12: Agg Demand in the Open Economy
... Even though NX is unchanged, there is less trade: – the trade restriction reduces imports – the exchange rate appreciation reduces exports Less trade means fewer ‘gains from trade.’ ...
... Even though NX is unchanged, there is less trade: – the trade restriction reduces imports – the exchange rate appreciation reduces exports Less trade means fewer ‘gains from trade.’ ...
Currency Boards
... is to buy and sell their own securities. The second option is to use secured lending which are short-term credit facilities offered against collateral. Both of these options can provide commercial banks access to temporary liquidity when it is needed. Most currency boards hold reserves in excess of ...
... is to buy and sell their own securities. The second option is to use secured lending which are short-term credit facilities offered against collateral. Both of these options can provide commercial banks access to temporary liquidity when it is needed. Most currency boards hold reserves in excess of ...
Mankiw 5/e Chapter 12: Agg Demand in the Open Economy
... Even though NX is unchanged, there is less trade: – the trade restriction reduces imports – the exchange rate appreciation reduces exports Less trade means fewer ‘gains from trade.’ ...
... Even though NX is unchanged, there is less trade: – the trade restriction reduces imports – the exchange rate appreciation reduces exports Less trade means fewer ‘gains from trade.’ ...
The Euro and the Financial Crisis
... the old Italian policy response would have been to devalue the lira against the German mark. This devaluation would have lowered the relative cost of Italian exports abroad even as the real cost of Italian labour domestically continued to rise. Italian consumers and non-traded industries would have ...
... the old Italian policy response would have been to devalue the lira against the German mark. This devaluation would have lowered the relative cost of Italian exports abroad even as the real cost of Italian labour domestically continued to rise. Italian consumers and non-traded industries would have ...
International Monetary Policy - 13 IS-LM Model in Open
... temporarily into deficits until quantities imported decrease and quantities exported increase. We will assume that the Marshall-Lerner conditions are satisfied, so that the current account increase as the domestic currency depreciates. Don’t worry about this Michele Piffer (London School of Economic ...
... temporarily into deficits until quantities imported decrease and quantities exported increase. We will assume that the Marshall-Lerner conditions are satisfied, so that the current account increase as the domestic currency depreciates. Don’t worry about this Michele Piffer (London School of Economic ...
Foreign-exchange reserves
.PNG?width=300)
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.