Why Has Nominal Income Growth Been So Slow?
... The top panel of figure 1 plots year-over-year nominal GDP growth from the beginning of 1990 through the end of 2015. Besides illustrating the severity of the Great Recession of 2007-2009 relative to its much milder predecessors in 1990-1991 and 2001, the graph also reveals that nominal income growt ...
... The top panel of figure 1 plots year-over-year nominal GDP growth from the beginning of 1990 through the end of 2015. Besides illustrating the severity of the Great Recession of 2007-2009 relative to its much milder predecessors in 1990-1991 and 2001, the graph also reveals that nominal income growt ...
How do resource-driven economies cope with the oil price
... Thus, the impact of the oil price decline on the current account is cushioned by the decline of the domestic currency’s external value. While over time, the depreciation preserves or enhances competitiveness, this is not typically a smooth process.8 A successful devaluation may be conducive to expor ...
... Thus, the impact of the oil price decline on the current account is cushioned by the decline of the domestic currency’s external value. While over time, the depreciation preserves or enhances competitiveness, this is not typically a smooth process.8 A successful devaluation may be conducive to expor ...
the presentation here
... demand; higher issuance of discount T-bills and foreign currency debt instead 2. The originally planned amount of marketable foreign currency issuance is practically reached already in H1 (EUR 1.7 billion) 3. Project loans from international financing institutions drawn down in EUR Changes in the is ...
... demand; higher issuance of discount T-bills and foreign currency debt instead 2. The originally planned amount of marketable foreign currency issuance is practically reached already in H1 (EUR 1.7 billion) 3. Project loans from international financing institutions drawn down in EUR Changes in the is ...
KC3002 International Finance /International Macroeconomics
... Devaluation（切り下げ） Devaluation occurs when the central bank raises the domestic currency price of the foreign currency. Devaluation makes the domestic goods relatively cheaper and raises aggregate demand, thus increasing output. When people expect a devaluation in the near future, it can sometimes s ...
... Devaluation（切り下げ） Devaluation occurs when the central bank raises the domestic currency price of the foreign currency. Devaluation makes the domestic goods relatively cheaper and raises aggregate demand, thus increasing output. When people expect a devaluation in the near future, it can sometimes s ...
Nicholas Brunner FIN 425 Dr. Margetis Capital Budgeting Project
... forecasted future spot rates, all cash flows are converted into the domestic currency (US dollars) and are discounted by the applicable US interest rate of twenty five percent. The resulting net present value is denominated in US dollars, allowing OSI to forecast the profitability of the expansion a ...
... forecasted future spot rates, all cash flows are converted into the domestic currency (US dollars) and are discounted by the applicable US interest rate of twenty five percent. The resulting net present value is denominated in US dollars, allowing OSI to forecast the profitability of the expansion a ...
Currency Politics: The Political Economy of Exchange Rate Policy
... monetary policy to be identical to that of Germany. And such peripheral European countries as Spain and Portugal would have been much better off with monetary policies tailored to their own conditions during the financial crisis that began in 2007, but their membership in the eurozone made this impo ...
... monetary policy to be identical to that of Germany. And such peripheral European countries as Spain and Portugal would have been much better off with monetary policies tailored to their own conditions during the financial crisis that began in 2007, but their membership in the eurozone made this impo ...
Diapositiva 1 - Becker Friedman Institute for Research in
... killed. Political Uncertainty; start issues of Tesobonos; sizeable capital outflows by Nov/Dec 1994. • Change in the exchange rate regime. • Sudden Stop? Substituting for short term borrowing ( with maturities shortening) and the ratio dollar indexed debt to international reserves increasing) but ev ...
... killed. Political Uncertainty; start issues of Tesobonos; sizeable capital outflows by Nov/Dec 1994. • Change in the exchange rate regime. • Sudden Stop? Substituting for short term borrowing ( with maturities shortening) and the ratio dollar indexed debt to international reserves increasing) but ev ...
Financial Markets
... Interest Rate determination w/ Ms = CU + D • Let’s now assume that Money = currency + deposit • Role of commercial banks: financial intermediaries – Banks receive funds from the public that they use to make loans or to buy government bonds – Public depositing own funds at banks can use these bank b ...
... Interest Rate determination w/ Ms = CU + D • Let’s now assume that Money = currency + deposit • Role of commercial banks: financial intermediaries – Banks receive funds from the public that they use to make loans or to buy government bonds – Public depositing own funds at banks can use these bank b ...
Foreign Exchange Benchmarks - Foreign Exchange Professionals
... Inevitably, traders either had to cross the spread and lose money on the business, or they could warehouse the position after the Fix is published and trust that the market would move back in their favor. Because asset managers, especially index trackers, tend to trade in similar directions, their ...
... Inevitably, traders either had to cross the spread and lose money on the business, or they could warehouse the position after the Fix is published and trust that the market would move back in their favor. Because asset managers, especially index trackers, tend to trade in similar directions, their ...
A Tale of Two Crises: Korea`s Experience with External Debt
... fishery, and mining sectors as a whole, the new regime had to resolve a crisis in the informal credit market that rocked the financial system when global trade sowed in 1982. Politically, the new government, not very popular and unable to consolidate its power, was not about to alienate any segments ...
... fishery, and mining sectors as a whole, the new regime had to resolve a crisis in the informal credit market that rocked the financial system when global trade sowed in 1982. Politically, the new government, not very popular and unable to consolidate its power, was not about to alienate any segments ...
Faculty Research Working Papers Series
... international hegemony. As some wonder whether the United States might now have embarked on a path of “imperial over-reach,” following the British Empire down a road of widening budget deficits and overly ambitious military adventures in the Muslim world, the fate of the pound is perhaps a useful ca ...
... international hegemony. As some wonder whether the United States might now have embarked on a path of “imperial over-reach,” following the British Empire down a road of widening budget deficits and overly ambitious military adventures in the Muslim world, the fate of the pound is perhaps a useful ca ...
Four Key Markets, the Circular Flow of Income and
... Business firms demand resources because they contribute to the production of goods the firm expects to sell at a profit. – The demand curve for resources slopes down and to the right. • Supply of Resources: Households supply resources in exchange for income. – Higher prices increase the incentive to ...
... Business firms demand resources because they contribute to the production of goods the firm expects to sell at a profit. – The demand curve for resources slopes down and to the right. • Supply of Resources: Households supply resources in exchange for income. – Higher prices increase the incentive to ...
Understanding Money and Banking
... relationship between nominal interest rates and the quantity of money demanded 1. What happens to the quantity demanded of money when interest rates increase? Quantity demanded falls because individuals would prefer to have interest earning assets instead 2. What happens to the quantity demanded whe ...
... relationship between nominal interest rates and the quantity of money demanded 1. What happens to the quantity demanded of money when interest rates increase? Quantity demanded falls because individuals would prefer to have interest earning assets instead 2. What happens to the quantity demanded whe ...
restrictions on foreign currency borrowing
... Succinctly, it is clear that the mere restriction of lending in foreign currency did not stabilize the economy nor stem the depreciation of the Hungarian national currency but rather, it required additional legislation and intervention measures to reduce Hungary’s debt and improve its economy. Simil ...
... Succinctly, it is clear that the mere restriction of lending in foreign currency did not stabilize the economy nor stem the depreciation of the Hungarian national currency but rather, it required additional legislation and intervention measures to reduce Hungary’s debt and improve its economy. Simil ...
Slide 1 - UTA.edu
... • Consider a trader that wishes to short yen. They can use a put option. Suppose they have access to an August put with a strike price of 100.00 (all contracts are listed as cents per unit of foreign currency…except ¥, which is listed as cents per 100 units of foreign currency). Trader wishes to sel ...
... • Consider a trader that wishes to short yen. They can use a put option. Suppose they have access to an August put with a strike price of 100.00 (all contracts are listed as cents per unit of foreign currency…except ¥, which is listed as cents per 100 units of foreign currency). Trader wishes to sel ...
State of the Economy: Some Unanswered Questions
... were used in these specific countries. • If they contributed to asset-price booms and private-sector credit extension, financial stability considerations will feature more prominently as a risk. • dominant trend in most Latin American countries, and it is another area where South Africa has been an ...
... were used in these specific countries. • If they contributed to asset-price booms and private-sector credit extension, financial stability considerations will feature more prominently as a risk. • dominant trend in most Latin American countries, and it is another area where South Africa has been an ...
Financial Crisis in East Asia: A Macroeconomic Perspective
... during the period from 1980 to January 1998 is brought out by the figures given in Exhibit 5. The period from 1990 to 1996 was actually marked by a marginal appreciation of the Thai baht, considerable appreciation of Malaysian ringgit, and some depreciation of Indonesian rupiah and Korean won. The r ...
... during the period from 1980 to January 1998 is brought out by the figures given in Exhibit 5. The period from 1990 to 1996 was actually marked by a marginal appreciation of the Thai baht, considerable appreciation of Malaysian ringgit, and some depreciation of Indonesian rupiah and Korean won. The r ...
Foreign-Exchange Market and Exchange Rates
... reacts to Fed policy and how the Fed reacts to changes in economic variables. What four category headings appear in the schematic drawing of monetary policy strategy? Why does the Fed take a roundabout path when conducting monetary policy? Why doesn’t it simply target the variables that really matte ...
... reacts to Fed policy and how the Fed reacts to changes in economic variables. What four category headings appear in the schematic drawing of monetary policy strategy? Why does the Fed take a roundabout path when conducting monetary policy? Why doesn’t it simply target the variables that really matte ...
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.