This PDF is a selection from a published volume from... National Bureau of Economic Research
... in our sample of industrial countries, the financial account dynamics are more subtle. The most dramatic adjustment is in the banking or other flows, which decrease over 2 percentage points (of GDP) in the first two years of the adjustment. In addition, bond inflows appear to surge in the run-up to ...
... in our sample of industrial countries, the financial account dynamics are more subtle. The most dramatic adjustment is in the banking or other flows, which decrease over 2 percentage points (of GDP) in the first two years of the adjustment. In addition, bond inflows appear to surge in the run-up to ...
Multi-Product Firms and Exchange Rate Fluctuations
... experiencing a recent surge with the availability of official customs data. These data usually cover all international transactions of a given country and provide researchers with an unprecedented level of detail.2 This change in focus to firm-level data is not surprising given that in the past deca ...
... experiencing a recent surge with the availability of official customs data. These data usually cover all international transactions of a given country and provide researchers with an unprecedented level of detail.2 This change in focus to firm-level data is not surprising given that in the past deca ...
Income, Wealth, and the Balance of Payments
... income (occurring through market transactions or transfers). The current account is not, however, a complete picture of international transactions. Resource flows of goods, services, and income are not the only items that flow between open economies. Financial assets such as stocks, bonds, or real e ...
... income (occurring through market transactions or transfers). The current account is not, however, a complete picture of international transactions. Resource flows of goods, services, and income are not the only items that flow between open economies. Financial assets such as stocks, bonds, or real e ...
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... One area that has not been sufficiently addressed in previous work is the role of severe currency and/or balance of payments crises on output growth and how these events interact with subsequent participation in IMF programs. We argue that Heckman’s (1979) Inverse Mills Ratio (IMR) approach does no ...
... One area that has not been sufficiently addressed in previous work is the role of severe currency and/or balance of payments crises on output growth and how these events interact with subsequent participation in IMF programs. We argue that Heckman’s (1979) Inverse Mills Ratio (IMR) approach does no ...
International Macroeconomics1
... The capital account records capital transfers. The major types of capital transfers are debt forgiveness and migrants’ transfers (goods and financial assets accompanying migrants as they leave or enter the country). ...
... The capital account records capital transfers. The major types of capital transfers are debt forgiveness and migrants’ transfers (goods and financial assets accompanying migrants as they leave or enter the country). ...
Trade Network Centrality and Currency Risk Premia
... are related. Lustig and Verdelhan (2007) were the first to sort currencies into portfolios on interest rates and to show that U.S. consumption growth risk exposure explains this ...
... are related. Lustig and Verdelhan (2007) were the first to sort currencies into portfolios on interest rates and to show that U.S. consumption growth risk exposure explains this ...
First and Second Reviews of the Staff-Monitored Program and
... impoverishment of millions of people, and destruction of infrastructure and assets. The oil price decline has resulted in a massive reduction in budget revenue, pushing the fiscal deficit to an unsustainable level. The authorities are responding to the crisis with a mix of necessary fiscal adjustmen ...
... impoverishment of millions of people, and destruction of infrastructure and assets. The oil price decline has resulted in a massive reduction in budget revenue, pushing the fiscal deficit to an unsustainable level. The authorities are responding to the crisis with a mix of necessary fiscal adjustmen ...
Real equilibrium exchange rates for Norway
... foreign trade and the activity level more than can be expected in many other industrial countries. It is therefore no coincidence that considerations for competitiveness have played an important role in the formulation of Norwegian monetary and fiscal policies, particularly in the past thirty years ...
... foreign trade and the activity level more than can be expected in many other industrial countries. It is therefore no coincidence that considerations for competitiveness have played an important role in the formulation of Norwegian monetary and fiscal policies, particularly in the past thirty years ...
How Important Is the Shock-Absorbing Role of the
... productivity increases. The disproportionate increase in demand for nontradeables that followed resulted in appreciation of the real exchange rate. (De Gregorio, Giovannini, and Wolf, 1994). Second, the productivity di®erential between the tradable and non-tradable sectors has been increasing since ...
... productivity increases. The disproportionate increase in demand for nontradeables that followed resulted in appreciation of the real exchange rate. (De Gregorio, Giovannini, and Wolf, 1994). Second, the productivity di®erential between the tradable and non-tradable sectors has been increasing since ...
GPM6 yThe Global Projection Model with 6 Regions!
... principal trading partner for which they can build their own model. Fourth, in practice, rather than building their own models of the external sector, central banks could use subjective adjustments of the forecasts from the …rst and second approaches to address timing problems. All of the approaches ...
... principal trading partner for which they can build their own model. Fourth, in practice, rather than building their own models of the external sector, central banks could use subjective adjustments of the forecasts from the …rst and second approaches to address timing problems. All of the approaches ...
Simple monetary policy rules and exchange rate uncertainty Kai Leitemo Ulf S¨
... In open economies, the exchange rate is an important element of the transmission of monetary policy. As stressed by Svensson (2000), the exchange rate allows for several channels in addition to the standard aggregate demand and expectations channels in closed economies: (i ) the real exchange rate a ...
... In open economies, the exchange rate is an important element of the transmission of monetary policy. As stressed by Svensson (2000), the exchange rate allows for several channels in addition to the standard aggregate demand and expectations channels in closed economies: (i ) the real exchange rate a ...
Zimbabwe: Challenges and Policy Options after Hyperinflation African Department 10/3
... and the rand have limited circulation in Zimbabwe. The multicurrency system has provided significant benefits. In particular, it fostered the re-monetization of the economy and financial reintermediation, helped enforce fiscal discipline by precluding inflationary financing of the budget, and brough ...
... and the rand have limited circulation in Zimbabwe. The multicurrency system has provided significant benefits. In particular, it fostered the re-monetization of the economy and financial reintermediation, helped enforce fiscal discipline by precluding inflationary financing of the budget, and brough ...
Invoice Currency: puzzling evidence and new questions from Brazil
... in transit in Brazil. Although exports, these expenditures are due to local consumption. Thus, we assume there is a natural bias when traders choose the domestic currency to invoice. A significant share of BRL invoices are due to these operations, on average: 71% from 2007–8 and 23% from 2009–11. No ...
... in transit in Brazil. Although exports, these expenditures are due to local consumption. Thus, we assume there is a natural bias when traders choose the domestic currency to invoice. A significant share of BRL invoices are due to these operations, on average: 71% from 2007–8 and 23% from 2009–11. No ...
Continuous time regime switching model applied to foreign
... of exchange rate fluctuations on their international portfolios. Governments are serious about the prices of exports and imports and their domestic currency value of debt payments, such as the huge debate of the Chinese Yuan’s evaluation in recent years. Central banks care about the value of their i ...
... of exchange rate fluctuations on their international portfolios. Governments are serious about the prices of exports and imports and their domestic currency value of debt payments, such as the huge debate of the Chinese Yuan’s evaluation in recent years. Central banks care about the value of their i ...
Fiscal Policy and the Current Account
... tradable goods. The government often accounts for a large part of domestic demand, so that, depending on the import propensity, shifts in the government import demand function translate into movements in the trade balance. The result applies more generally, in a Keynesian context, to changes in the ...
... tradable goods. The government often accounts for a large part of domestic demand, so that, depending on the import propensity, shifts in the government import demand function translate into movements in the trade balance. The result applies more generally, in a Keynesian context, to changes in the ...
Country Debt Economic Developing and
... changes prompted major dislocations of production. In particular, agricultural output in cash crops suffered a substantial reduction after the first year of an ambitious agrarian reform. The high inflation of those years, coupled with misguided policy measures that attempted to suppress the symptoms ...
... changes prompted major dislocations of production. In particular, agricultural output in cash crops suffered a substantial reduction after the first year of an ambitious agrarian reform. The high inflation of those years, coupled with misguided policy measures that attempted to suppress the symptoms ...
The low inflation
... Sweden being low. It has rather been a combination of factors. One important factor that can hardly be disregarded is monetary policy. The repo rate has been held higher due to consideration of risks linked to household indebtedness than it would have been if the aim was solely to stabilise inflatio ...
... Sweden being low. It has rather been a combination of factors. One important factor that can hardly be disregarded is monetary policy. The repo rate has been held higher due to consideration of risks linked to household indebtedness than it would have been if the aim was solely to stabilise inflatio ...
Causes of and Remedies for the People`s Republic of China`s
... foreign and domestic attention. This paper focuses on the reasons and remedies for the PRC’s current account surpluses. Rather than deploying the standard explanations, we argue that asymmetric market liberalization and the related factor market distortion is the root reason for the PRC’s external i ...
... foreign and domestic attention. This paper focuses on the reasons and remedies for the PRC’s current account surpluses. Rather than deploying the standard explanations, we argue that asymmetric market liberalization and the related factor market distortion is the root reason for the PRC’s external i ...
NBFR WORKING PAPER SERIES COMPARING THE GLOBAL PERFORMANCE OF ALTENATIVE EXCHANGE ARRANGEMENTS
... Edlefsen and Sam Jones at Applied Technical Systems for their excellent technical support of this program. We also thank Max Corden for many interesting discussions and Ralph Bryant, Michael Emerson and Nouriel Roubini for comments, Warwick McKibbin thanks the Reserve Sank of Australia for financial ...
... Edlefsen and Sam Jones at Applied Technical Systems for their excellent technical support of this program. We also thank Max Corden for many interesting discussions and Ralph Bryant, Michael Emerson and Nouriel Roubini for comments, Warwick McKibbin thanks the Reserve Sank of Australia for financial ...
BNR ECONOMIC REVIEW Vol. 9
... assessing whether the various financial innovation that have taken place over the past years pose difficulties on the conduct of monetary policy in Rwanda. In the context of the current monetary policy framework, this assessment starts by examining whether the velocity of money and money multiplier ...
... assessing whether the various financial innovation that have taken place over the past years pose difficulties on the conduct of monetary policy in Rwanda. In the context of the current monetary policy framework, this assessment starts by examining whether the velocity of money and money multiplier ...
Chapter 29
... real interest rates being paid on foreign assets. The real interest rates being paid on domestic assets. The perceived economic and political risks of holding assets abroad. The government policies that affect foreign ownership of domestic assets. Harcourt, Inc. items and derived items copyrig ...
... real interest rates being paid on foreign assets. The real interest rates being paid on domestic assets. The perceived economic and political risks of holding assets abroad. The government policies that affect foreign ownership of domestic assets. Harcourt, Inc. items and derived items copyrig ...
econometric testing of purchasing power parity in less developed
... real exchange rate.3 Then, Engle-Granger (1987) cointegration approach and Johansen (1988) multivariate cointegration approach are implemented. Symmetry and proportionality conditions are directly imposed to unit root test; however, these conditions are checked out under the cointegration framework. ...
... real exchange rate.3 Then, Engle-Granger (1987) cointegration approach and Johansen (1988) multivariate cointegration approach are implemented. Symmetry and proportionality conditions are directly imposed to unit root test; however, these conditions are checked out under the cointegration framework. ...
ARREGLOS MONETARIOS EN ENTORNOS VOLÁTILES1
... cionado con el producto nominal va a ser M + EF, donde M es el agregado en moneda nacional, E es el tipo de cambio y F es el dinero extranjero circulando o los depósitos en moneda extranjera. M es en general bajo en una economía fuertemente dolarizada. Simplemente para fijar ideas, supongamos que es ...
... cionado con el producto nominal va a ser M + EF, donde M es el agregado en moneda nacional, E es el tipo de cambio y F es el dinero extranjero circulando o los depósitos en moneda extranjera. M es en general bajo en una economía fuertemente dolarizada. Simplemente para fijar ideas, supongamos que es ...
Non-Wasteful Government Spending in an Estimated Open
... asset market assumption. The international risk-sharing condition, on the other hand, has been known to cause the consumption-real exchange rate anomaly between predictions of open economy models and empirical evidence, also referred to as the Backus-Smith puzzle.4 Backus and Smith (1993) and Kollma ...
... asset market assumption. The international risk-sharing condition, on the other hand, has been known to cause the consumption-real exchange rate anomaly between predictions of open economy models and empirical evidence, also referred to as the Backus-Smith puzzle.4 Backus and Smith (1993) and Kollma ...
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.