Regional Currency Arrangements in North America
... The cornerstone criteria for successful monetary union are well-known and will not be discussed in detail here. Suffice it to recall the basic argument, which is that in the presence of significant asymmetries among countries, loss of floating exchange rates will force adjustment onto variables lik ...
... The cornerstone criteria for successful monetary union are well-known and will not be discussed in detail here. Suffice it to recall the basic argument, which is that in the presence of significant asymmetries among countries, loss of floating exchange rates will force adjustment onto variables lik ...
national bank of romania
... II. Financial channel Diminished access to external financing => impact on the lending volume, especially forex loans, and higher debt service for private companies Mitigating factor: still low level of financial intermediation NATIONAL BANK OF ROMANIA ...
... II. Financial channel Diminished access to external financing => impact on the lending volume, especially forex loans, and higher debt service for private companies Mitigating factor: still low level of financial intermediation NATIONAL BANK OF ROMANIA ...
DORNBUSCH’S OVERSHOOTING MODEL: A REVIEW
... Views on PPP have changed over time. Before the breakdown of Bretton Woods, economists clung to PPP’s existence (Isard, 1995). In the first phase of research on PPP in the 1970s and 1980s, the emerging consensus was that the real exchange rate followed a random walk, even in the long run, thus denyi ...
... Views on PPP have changed over time. Before the breakdown of Bretton Woods, economists clung to PPP’s existence (Isard, 1995). In the first phase of research on PPP in the 1970s and 1980s, the emerging consensus was that the real exchange rate followed a random walk, even in the long run, thus denyi ...
The Fiscal and Monetary History of Chile 1960-2010
... adopted since the mid 80s. However, we do not have a sense of sadness mainly because the economy has been stable economic path for the last three decades. In this section we will present the main macroeconomic events characterizing the economic history of Chile from 1960 to 2010. In each period we w ...
... adopted since the mid 80s. However, we do not have a sense of sadness mainly because the economy has been stable economic path for the last three decades. In this section we will present the main macroeconomic events characterizing the economic history of Chile from 1960 to 2010. In each period we w ...
GE05-Whalley-06DEC 225735 en
... where no tariff liberalization occurs. We can also consider services liberalization in a tariff-free world, and tariff liberalization in a world either with or without service restrictions. Finally, we can consider joint tariff and services liberalization. This joint spatial inter-temporal economy can ...
... where no tariff liberalization occurs. We can also consider services liberalization in a tariff-free world, and tariff liberalization in a world either with or without service restrictions. Finally, we can consider joint tariff and services liberalization. This joint spatial inter-temporal economy can ...
Chapter 1
... Deceleration of growth in Japan Growth tapered off in 2005 Central banks are reducing or removing policies that fuel rapid growth ...
... Deceleration of growth in Japan Growth tapered off in 2005 Central banks are reducing or removing policies that fuel rapid growth ...
Topic 3: Fiscal Policy
... Open Market Operations – Buying and selling government securities (or other assets) ...
... Open Market Operations – Buying and selling government securities (or other assets) ...
Singapore`s Exchange Rate Policy - Monetary Authority of Singapore
... management of the exchange rate. The primary objective has been to promote price stability as a sound basis for sustainable economic growth. There are four main features of the exchange rate system in Singapore. First, the Singapore dollar is managed against a basket of currencies of our major tradi ...
... management of the exchange rate. The primary objective has been to promote price stability as a sound basis for sustainable economic growth. There are four main features of the exchange rate system in Singapore. First, the Singapore dollar is managed against a basket of currencies of our major tradi ...
A Model of Currency Exchange Rates
... of money, the model pegs exchange rates to allow for currency speculation. The effect of international trade, deposits, loans, and investments are discussed. Proof is given that the model is self limiting and risk compensating. Situations for which the model is more or less suitable are discussed. T ...
... of money, the model pegs exchange rates to allow for currency speculation. The effect of international trade, deposits, loans, and investments are discussed. Proof is given that the model is self limiting and risk compensating. Situations for which the model is more or less suitable are discussed. T ...
A General Equilibrium Perspective of Aggregate Import Demand
... In a monetised economy, as distinct from a barter system, any transaction or exchange has by definition a monetary or financial side. This is captured in Clower’s memorable phrase that “money buys goods and goods buy money.” This implies that the goods market flow is necessarily associated with an e ...
... In a monetised economy, as distinct from a barter system, any transaction or exchange has by definition a monetary or financial side. This is captured in Clower’s memorable phrase that “money buys goods and goods buy money.” This implies that the goods market flow is necessarily associated with an e ...
Chapter 19
... • Arguments for flexible exchange rates • Arguments against flexible exchange rates • Foreign exchange markets since 1973 • Interdependence of large countries • The Chaing Mai Initiative for East Asian countries ...
... • Arguments for flexible exchange rates • Arguments against flexible exchange rates • Foreign exchange markets since 1973 • Interdependence of large countries • The Chaing Mai Initiative for East Asian countries ...
The Viability of a Monetary Union in South America
... Analyses evaluating a region’s suitability for a monetary union based on the OCA framework often rely on ad hoc proxies, because the OCA criteria lack a unifying framework. This makes an evaluation difficult and may lead to inconclusive results instead of providing a clear answer as to whether a reg ...
... Analyses evaluating a region’s suitability for a monetary union based on the OCA framework often rely on ad hoc proxies, because the OCA criteria lack a unifying framework. This makes an evaluation difficult and may lead to inconclusive results instead of providing a clear answer as to whether a reg ...
Chapter 13
... Several “premiums”, or added costs, Are part of the long term line They are above and beyond the short term line Waiting premium – extra cost for having to wait to get the money back Inflationary expectation premium – the longer the loan, the more likely the real return will be eaten up by inflatio ...
... Several “premiums”, or added costs, Are part of the long term line They are above and beyond the short term line Waiting premium – extra cost for having to wait to get the money back Inflationary expectation premium – the longer the loan, the more likely the real return will be eaten up by inflatio ...
East Asia: Success and Crisis
... An immediate and spectacular rise in the interest burden debtor countries had to pay A sharp appreciation of the dollar A collapse in the primary commodity prices ...
... An immediate and spectacular rise in the interest burden debtor countries had to pay A sharp appreciation of the dollar A collapse in the primary commodity prices ...
Chapter 21. Exchange Rate Regimes
... through price adjustment and changes in the real exchange rate over the medium run. In emergency situations, adjustment happens through devaluation, often forced on policymakers through currency crisis. Thus, the adjustment mechanism of fixed exchange rates does not appear terribly attractive. On th ...
... through price adjustment and changes in the real exchange rate over the medium run. In emergency situations, adjustment happens through devaluation, often forced on policymakers through currency crisis. Thus, the adjustment mechanism of fixed exchange rates does not appear terribly attractive. On th ...
Some pertinent questions!
... This increase in policy rate was necessary to: 1. ease demand pressures causing inflation 2. ensure long-term growth on sustainable basis; high inflation, if continues, raise future cost of production significantly more than the current rise in interest rate. Share of financial cost 3. create room ...
... This increase in policy rate was necessary to: 1. ease demand pressures causing inflation 2. ensure long-term growth on sustainable basis; high inflation, if continues, raise future cost of production significantly more than the current rise in interest rate. Share of financial cost 3. create room ...
The Renminbi`s Dollar Peg at the Crossroads
... nominal exchange rate over a longer historical perspective. Following a period of substantial cumulative inflation, the official rate of the RMB was devalued sharply in 1994, albeit in tandem with unification of the official and parallel exchange markets.1 A slight appreciation followed. Very notabl ...
... nominal exchange rate over a longer historical perspective. Following a period of substantial cumulative inflation, the official rate of the RMB was devalued sharply in 1994, albeit in tandem with unification of the official and parallel exchange markets.1 A slight appreciation followed. Very notabl ...
A Monetary Model of the South African Rand
... future spot rate (and significantly so). 7 However, these results are no more perverse than those obtained for developed country currencies at this horizon, so as long as the implied exchange risk premium is I(0), the long run monetary model should still be identifiable. Money demand stability. An e ...
... future spot rate (and significantly so). 7 However, these results are no more perverse than those obtained for developed country currencies at this horizon, so as long as the implied exchange risk premium is I(0), the long run monetary model should still be identifiable. Money demand stability. An e ...
Iraq: Letter of Intent, Memorandum of Economic and Financial
... a surplus of 1 percent of GDP in 2014 to a deficit of 7 percent of GDP in 2015 and 6 percent of GDP in 2016. The overall balance of payments deficit will reach $14 billion in 2015 and $11 billion in 2016, which will be financed mostly by a large drawdown of official foreign exchange reserves. Offici ...
... a surplus of 1 percent of GDP in 2014 to a deficit of 7 percent of GDP in 2015 and 6 percent of GDP in 2016. The overall balance of payments deficit will reach $14 billion in 2015 and $11 billion in 2016, which will be financed mostly by a large drawdown of official foreign exchange reserves. Offici ...
Open Macroeconomic Economy Part 2 (Chapter 32)
... • Recall: The U.S. real exchange rate (E) measures the quantity of foreign goods & services that trade for one unit of U.S. goods & services. • E is the real value of a dollar in the market for foreign-currency exchange. ...
... • Recall: The U.S. real exchange rate (E) measures the quantity of foreign goods & services that trade for one unit of U.S. goods & services. • E is the real value of a dollar in the market for foreign-currency exchange. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... The second interpretation emphasizes the economic difficulties and political tensions associated with the reallocation of resources being forced upon the economy by the overvalued exchange rate. The overvaluation of the rupiah was the result of maintaining the exchange rate at 415 rupiahs/ dollar de ...
... The second interpretation emphasizes the economic difficulties and political tensions associated with the reallocation of resources being forced upon the economy by the overvalued exchange rate. The overvaluation of the rupiah was the result of maintaining the exchange rate at 415 rupiahs/ dollar de ...
The Renminbi`s Dollar Peg at the Crossroads
... nominal exchange rate over a longer historical perspective. Following a period of substantial cumulative inflation, the official rate of the RMB was devalued sharply in 1994, albeit in tandem with unification of the official and parallel exchange markets.1 A slight appreciation followed. Very notabl ...
... nominal exchange rate over a longer historical perspective. Following a period of substantial cumulative inflation, the official rate of the RMB was devalued sharply in 1994, albeit in tandem with unification of the official and parallel exchange markets.1 A slight appreciation followed. Very notabl ...
Chapter Ten
... Countries agreed to peg their currencies to US$ which was convertible to gold at $35/oz. Agreed not to engage in competitive devaluations for trade purposes and defend their currencies. Weak currencies could be devalued up to 10% w/o approval. IMF and World Bank created. © McGraw Hill Companies, ...
... Countries agreed to peg their currencies to US$ which was convertible to gold at $35/oz. Agreed not to engage in competitive devaluations for trade purposes and defend their currencies. Weak currencies could be devalued up to 10% w/o approval. IMF and World Bank created. © McGraw Hill Companies, ...
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.