A developing country view of the current global crisis
... The resulting contraction in aggregate demand spread all over the world through international trade channels, thereby reinforcing the contractive forces. According to the International Monetary Fund (IMF), in 2009 the world economy will experience the biggest contraction in the last 60 years. Most a ...
... The resulting contraction in aggregate demand spread all over the world through international trade channels, thereby reinforcing the contractive forces. According to the International Monetary Fund (IMF), in 2009 the world economy will experience the biggest contraction in the last 60 years. Most a ...
The Meltdown of the Indonesian Economy in 1997-1998
... crisis. Conclusions are in the last section. 2. Macroeconomic Policy The present currency crisis in Indonesia exemplifies that inconsistency between fiscal and monetary policies in an exchange rate system with an intervention band. Such a system has generated not only real appreciation of exchange r ...
... crisis. Conclusions are in the last section. 2. Macroeconomic Policy The present currency crisis in Indonesia exemplifies that inconsistency between fiscal and monetary policies in an exchange rate system with an intervention band. Such a system has generated not only real appreciation of exchange r ...
Mankiw 6e PowerPoints
... International capital flows Net capital outflow =S –I = net outflow of “loanable funds” = net purchases of foreign assets the country’s purchases of foreign assets minus foreign purchases of domestic assets ...
... International capital flows Net capital outflow =S –I = net outflow of “loanable funds” = net purchases of foreign assets the country’s purchases of foreign assets minus foreign purchases of domestic assets ...
Chap02
... • The average of the short term one year rates is 7%, but the three year rate is only 5%. • One could borrow any given amount such as $1000 for the full three years and invest that money one year at a time and rolling over the investment for three years. • The borrowing cost per year is 5% and the a ...
... • The average of the short term one year rates is 7%, but the three year rate is only 5%. • One could borrow any given amount such as $1000 for the full three years and invest that money one year at a time and rolling over the investment for three years. • The borrowing cost per year is 5% and the a ...
Why is the Fed Funds Rate - University of Colorado Boulder
... country’s central bank (generally the more accommodative, the lower the interest rate) Relative differences in the market’s assessment about the risk associate with a sovereign borrower. Impact of flight to safe havens as markets become risk ...
... country’s central bank (generally the more accommodative, the lower the interest rate) Relative differences in the market’s assessment about the risk associate with a sovereign borrower. Impact of flight to safe havens as markets become risk ...
PDF - Department of Economics
... The model presented below will formalize some of the structuralist views – while being consistent to the other heterodox traditions – and will show some of the reasons why stabilization has been successful in the 1990s. It will be argued that the main reason for stabilization was related to better e ...
... The model presented below will formalize some of the structuralist views – while being consistent to the other heterodox traditions – and will show some of the reasons why stabilization has been successful in the 1990s. It will be argued that the main reason for stabilization was related to better e ...
Quiz: Introductory Macroeconomics
... deficit without causing output to fall. If the Central Bank and the government coordinate policies, can they achieve this goal? If not, why not? If so, what combination of policies would work? (10 points) A combination of a reduction in government spending (or an increase in taxes) and an increase i ...
... deficit without causing output to fall. If the Central Bank and the government coordinate policies, can they achieve this goal? If not, why not? If so, what combination of policies would work? (10 points) A combination of a reduction in government spending (or an increase in taxes) and an increase i ...
Glossary of Terms - Budget Economic and Fiscal Update 2015
... available to repay debt or, alternatively, needs to borrow in any given year. Residual cash is alternatively termed “Cash available/(shortfall to be funded)”. ...
... available to repay debt or, alternatively, needs to borrow in any given year. Residual cash is alternatively termed “Cash available/(shortfall to be funded)”. ...
Net Capital Outflow
... An appreciation of the dollar in the foreign exchange market encourages imports and discourages exports. This offsets the initial increase in net exports due to import quota. Trade policies do not affect the trade balance. ...
... An appreciation of the dollar in the foreign exchange market encourages imports and discourages exports. This offsets the initial increase in net exports due to import quota. Trade policies do not affect the trade balance. ...
The enlargement(s) of the euro area
... • Interaction between structural and cyclical factors: - Price level convergence and inflation; - Strong domestic demand, fuelled by low interest rates, credit and house price expansion; - large current account deficits raises questions on sustainability. ...
... • Interaction between structural and cyclical factors: - Price level convergence and inflation; - Strong domestic demand, fuelled by low interest rates, credit and house price expansion; - large current account deficits raises questions on sustainability. ...
1 Currency Areas, Exchange Rate Systems and
... It needs to be emphasized, however, that globalization is much less efficient now because of some telling defects in our international monetary system. The inefficiency of our current “syst the hundreds of trillions of dollars of waste capital movements that cross international borders every year so ...
... It needs to be emphasized, however, that globalization is much less efficient now because of some telling defects in our international monetary system. The inefficiency of our current “syst the hundreds of trillions of dollars of waste capital movements that cross international borders every year so ...
Chapter 18 – Trade and Development, page 1 of 8
... inflation levels that exceeded world inflation, the countries needed to devalue their currency in order for their exports to remain competitive in world markets, but frequently they failed to devalue, so the exchange rates remained overvalued; developing country governments resisted devaluation in p ...
... inflation levels that exceeded world inflation, the countries needed to devalue their currency in order for their exports to remain competitive in world markets, but frequently they failed to devalue, so the exchange rates remained overvalued; developing country governments resisted devaluation in p ...
The Currency Hierarchy and the Center-Periphery - LaI FU
... are there several types of capitalist countries, but, these are not even in the same position at the international level, whether in terms of economic dynamism and social welfare, or political and/or economic autonomy. That is to say, when considered in its totality, global capitalism appears as a h ...
... are there several types of capitalist countries, but, these are not even in the same position at the international level, whether in terms of economic dynamism and social welfare, or political and/or economic autonomy. That is to say, when considered in its totality, global capitalism appears as a h ...
NBER WORKING PAPER SERIES CAPITAL FLOWS, THE CURRENT ACCOUNT, CONSEQUENCES OF LIBERALIZATION
... is in this case maintained through adjustments in the domestic nominal interest rate R. ...
... is in this case maintained through adjustments in the domestic nominal interest rate R. ...
Chapter 18 PPT
... prices as gold (“specie”) flows into or out of a country, causing an adjustment in the flow of goods. An inflow of gold tends to inflate prices. An outflow of gold tends to deflate prices. If a domestic country has a current account surplus in excess of the non-reserve financial account, gold ...
... prices as gold (“specie”) flows into or out of a country, causing an adjustment in the flow of goods. An inflow of gold tends to inflate prices. An outflow of gold tends to deflate prices. If a domestic country has a current account surplus in excess of the non-reserve financial account, gold ...
MUSE: The Bank of Canada`s New Projection Model of the U.S.
... their expectations of future income, or when agents make expectational errors. Most economists, however, reject the pure permanent-income hypothesis, arguing that the existence of credit-constrained households limits its applicability and that households could also choose to save for precautionary r ...
... their expectations of future income, or when agents make expectational errors. Most economists, however, reject the pure permanent-income hypothesis, arguing that the existence of credit-constrained households limits its applicability and that households could also choose to save for precautionary r ...
Coping with crises: is there a “silver bullet”?
... resort in a liquidity crisis; nor is there any mechanism to offer them bankruptcy protection. For George Soros (1998, pp.xxviii-xix) global capitalism is in crisis because global financial markets have outgrown the regulatory framework needed to stabilise them: “financial markets are inherently unst ...
... resort in a liquidity crisis; nor is there any mechanism to offer them bankruptcy protection. For George Soros (1998, pp.xxviii-xix) global capitalism is in crisis because global financial markets have outgrown the regulatory framework needed to stabilise them: “financial markets are inherently unst ...
europe`s paradoxes
... them in the perspective of the current Eurozone debate. The first section deals with the 2 The technical dimension of central bank independence is disciplined by the article 123 of the Treaty on the functioning of the European Union: “Overdraft facilities or any other type of credit facility with t ...
... them in the perspective of the current Eurozone debate. The first section deals with the 2 The technical dimension of central bank independence is disciplined by the article 123 of the Treaty on the functioning of the European Union: “Overdraft facilities or any other type of credit facility with t ...
NOTES ON EXCHANGE RATES AND COMMODITY PRICES
... are both asset prices that respond to news instantaneously, can something stronger be said about causation? Is exchange rate volatility responsible for the wide swings in connnodityprices? Interestingly, this is the exact opposite to the question considered by Freebairn (in Chapter 9 of this volume) ...
... are both asset prices that respond to news instantaneously, can something stronger be said about causation? Is exchange rate volatility responsible for the wide swings in connnodityprices? Interestingly, this is the exact opposite to the question considered by Freebairn (in Chapter 9 of this volume) ...
Country Resource Maps - Anglia Ruskin University
... generally tend to be more acute in countries which have an overall low rating for water self-sufficiency. Subterranean or glacial water reserves have been excluded from the figures used here, on the grounds that they are non-renewable. However there is evidence of large-scale reserves in parts of no ...
... generally tend to be more acute in countries which have an overall low rating for water self-sufficiency. Subterranean or glacial water reserves have been excluded from the figures used here, on the grounds that they are non-renewable. However there is evidence of large-scale reserves in parts of no ...
Greek Fiscal Crisis: Is a First World Debt Crisis in the
... moderate inflation (10% - 20%) and moderate contraction. The Developed world went through such an episode during the 1970s. Today, with central bank independence, it is questionable to what extent central banks will allow this to happen without breaching their inflation control mandates. If they res ...
... moderate inflation (10% - 20%) and moderate contraction. The Developed world went through such an episode during the 1970s. Today, with central bank independence, it is questionable to what extent central banks will allow this to happen without breaching their inflation control mandates. If they res ...
PDF Download
... positive net exports (in trade and services) and net labour income in the future, corresponding to a positive difference between net saving and investment. If this were not the case, some creditor country must be willing to finance the entire interest bill by the debtor country in the indefinite fut ...
... positive net exports (in trade and services) and net labour income in the future, corresponding to a positive difference between net saving and investment. If this were not the case, some creditor country must be willing to finance the entire interest bill by the debtor country in the indefinite fut ...
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.