PDF
... Bank would act decisively if needed to curb it. The first significant post recession test for the RBA came in 1994 as inflationary pressures rose and rates were tightened pre-emptively in three steps by 275 basis points over five months. Growth slowed briefly but inflation was checked and the econom ...
... Bank would act decisively if needed to curb it. The first significant post recession test for the RBA came in 1994 as inflationary pressures rose and rates were tightened pre-emptively in three steps by 275 basis points over five months. Growth slowed briefly but inflation was checked and the econom ...
The lasting impact of the Asian financial crisis
... depreciation. There was no reason to further shrink demand through monetary and fiscal austerity. In the crucial first few months of the crisis (August to December 1997), the IMF concentrated on structural "reforms," and put forth the argument that the crisis was due to "fundamental structural weakn ...
... depreciation. There was no reason to further shrink demand through monetary and fiscal austerity. In the crucial first few months of the crisis (August to December 1997), the IMF concentrated on structural "reforms," and put forth the argument that the crisis was due to "fundamental structural weakn ...
Dynamic General Equilibrium Analysis: The Open Economy
... in the case of full pass through. By allowing the nominal and real exchange rate to vary in response to shocks, targeting nontradables inßation achieves much lower volatility in output and investment, even if CPI inßation is less stable. For an open economy with full pass through, targeting CPI inßa ...
... in the case of full pass through. By allowing the nominal and real exchange rate to vary in response to shocks, targeting nontradables inßation achieves much lower volatility in output and investment, even if CPI inßation is less stable. For an open economy with full pass through, targeting CPI inßa ...
The role of exchange rate dynamics in Bulgaria and
... transformation. In the first period, rather chaotic systems were applied in both of the countries. The central banks did not have the situation under control and attempted to fix/control exchange rates with consequent huge devaluations. These periods were interposed by periods of floating. The exch ...
... transformation. In the first period, rather chaotic systems were applied in both of the countries. The central banks did not have the situation under control and attempted to fix/control exchange rates with consequent huge devaluations. These periods were interposed by periods of floating. The exch ...
Lecture 3
... economic difficulties for Eastern Europe in the short run. We use our analytical tools to look at two opposite cases: Poland, which fared well, and Latvia, which did not. • Demand for Poland’s and Latvia’s exports declined with the contraction of foreign output, this along with negative shocks to co ...
... economic difficulties for Eastern Europe in the short run. We use our analytical tools to look at two opposite cases: Poland, which fared well, and Latvia, which did not. • Demand for Poland’s and Latvia’s exports declined with the contraction of foreign output, this along with negative shocks to co ...
Economics and Political Economy
... of the Literature Earlier contributions to the theoretical literature on currency crises pointed almost exclusively to deteriorating economic fundamentals as the trigger for currency crises. However, few studies have made an attempt to investigate empirically whether a particular exchange rate regim ...
... of the Literature Earlier contributions to the theoretical literature on currency crises pointed almost exclusively to deteriorating economic fundamentals as the trigger for currency crises. However, few studies have made an attempt to investigate empirically whether a particular exchange rate regim ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... of trade and hence encourages the production of tradables, the presence of which determines a country’s ability to service its debts. In examining government expenditure, Woo (1987a) surmised from fragmentary evidence that government spending was more likely to display a rural rather than an urban b ...
... of trade and hence encourages the production of tradables, the presence of which determines a country’s ability to service its debts. In examining government expenditure, Woo (1987a) surmised from fragmentary evidence that government spending was more likely to display a rural rather than an urban b ...
interest rates
... – All goods and services are priced in common monetary units – Allows us to compare relative prices easily. – Only need one set of prices. ...
... – All goods and services are priced in common monetary units – Allows us to compare relative prices easily. – Only need one set of prices. ...
The Rise of the Indian Economy: Fiscal, Monetary and Other Policy
... government in 2009, my wife also returned to Delhi and took up a visiting professorship in a university. Since then, for a few days, every month I hear her say how she is busy “trying to get her salary.” The word “trying” in the context of getting one’s salary would be baffling in most societies. It ...
... government in 2009, my wife also returned to Delhi and took up a visiting professorship in a university. Since then, for a few days, every month I hear her say how she is busy “trying to get her salary.” The word “trying” in the context of getting one’s salary would be baffling in most societies. It ...
03 RA Mundell - rivista Politica Economica
... gether. With the creation of the Federal Reserve System in 1913, US monetary power became activated, and ever since the United States was able to play a determining role in the international monetary system. Dollar prices had become «world» prices and money increasingly came to mean the dollar. The ...
... gether. With the creation of the Federal Reserve System in 1913, US monetary power became activated, and ever since the United States was able to play a determining role in the international monetary system. Dollar prices had become «world» prices and money increasingly came to mean the dollar. The ...
On the Political Economy of Monetary Policy
... David Gordon’s influential article (1983), which deals with the problem of dynamic inconsistency and the pros and cons of rules versus discretion in economic policy, which Finn Kydland and Edward Prescott (1977) and Guillermo Calvo (1978) had previously posed. In turn, the “rules versus discretion” ...
... David Gordon’s influential article (1983), which deals with the problem of dynamic inconsistency and the pros and cons of rules versus discretion in economic policy, which Finn Kydland and Edward Prescott (1977) and Guillermo Calvo (1978) had previously posed. In turn, the “rules versus discretion” ...
PDF
... Kenya. For Cameroon, PAGVEX was negative, demonstrating agriculture's weak role as an export sector in the economy's reserve accumulation. Also, PDBT was positive for Cameroon but negative for Kenya. Generally, Kenya's relatively greater debt-to-debt service ratio negatively affects its reserves. Fo ...
... Kenya. For Cameroon, PAGVEX was negative, demonstrating agriculture's weak role as an export sector in the economy's reserve accumulation. Also, PDBT was positive for Cameroon but negative for Kenya. Generally, Kenya's relatively greater debt-to-debt service ratio negatively affects its reserves. Fo ...
THE IMPACT OF EXCHANGE RATE MOVEMENTS ON TRADE
... much of public sector investment (which accounted for two-thirds of total investment during the period 1973-90) was directed to wasteful projects, resulting in low return on investments meagre productivity growth. The implementation of market reforms, a sizeable devaluation and tight fiscal and mone ...
... much of public sector investment (which accounted for two-thirds of total investment during the period 1973-90) was directed to wasteful projects, resulting in low return on investments meagre productivity growth. The implementation of market reforms, a sizeable devaluation and tight fiscal and mone ...
when the dollar overtook the pound
... 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 ...
The Dynamic Adjustment of a Transition Economy in the Early
... characterized by flexible goods prices, together with sticky money wages and unemployment so an upward-sloping aggregate supply curve is maintained. Moreover, the model has an underdeveloped financial sector in which the central bank sets the short-term interest rate and there are few private capit ...
... characterized by flexible goods prices, together with sticky money wages and unemployment so an upward-sloping aggregate supply curve is maintained. Moreover, the model has an underdeveloped financial sector in which the central bank sets the short-term interest rate and there are few private capit ...
Chapter 18 Preview Macroeconomic Goals Macroeconomic Goals
... • But under the fixed exchange rates of the Bretton Woods system, devaluations were supposed to be infrequent, and fiscal policy was supposed to be the main policy tool to achieve both internal and external balance. • But in general, fiscal policy can not attain both internal balance and external ba ...
... • But under the fixed exchange rates of the Bretton Woods system, devaluations were supposed to be infrequent, and fiscal policy was supposed to be the main policy tool to achieve both internal and external balance. • But in general, fiscal policy can not attain both internal balance and external ba ...
Chapter 18
... their need for official international reserves grew. • But this rate of growth was faster than the growth rate of the gold reserves that central banks held. ...
... their need for official international reserves grew. • But this rate of growth was faster than the growth rate of the gold reserves that central banks held. ...
Internationalisation of currency in East Asia
... power to the producers. A well developed financial market with a large variety of risk hedging instruments is also advantageous for currency internationalisation. Finally, an international currency should be able to gain the confidence of other countries in its value if it is to be successfully used ...
... power to the producers. A well developed financial market with a large variety of risk hedging instruments is also advantageous for currency internationalisation. Finally, an international currency should be able to gain the confidence of other countries in its value if it is to be successfully used ...
Global Constraints on Central Banking: The Case of Turkey
... advanced countries since the 1980s. Central bank independence and inflation targeting (IT) have gained importance in many countries. Low inflation was supposed to bring about financial stability. It was argued that asset prices should not be among the concerns of central banks.1 Monetary targeting l ...
... advanced countries since the 1980s. Central bank independence and inflation targeting (IT) have gained importance in many countries. Low inflation was supposed to bring about financial stability. It was argued that asset prices should not be among the concerns of central banks.1 Monetary targeting l ...
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.