This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... substantial tensions, with consequences for the market ’s assessment of what is now called peripheral sovereign debt. In other words, this is very much a typical model as it is used in most central banks (see Galí and Gertler 2007). What is remarkable, however, is that the zero lower bound arises ou ...
... substantial tensions, with consequences for the market ’s assessment of what is now called peripheral sovereign debt. In other words, this is very much a typical model as it is used in most central banks (see Galí and Gertler 2007). What is remarkable, however, is that the zero lower bound arises ou ...
Cavallari-del05 1175933 de
... goods produced in di erent locations as imperfect substitutes. The assumption captures the fact that once goods reach the sales market, they incorporate a substantial local marketing input and pass through non-competitive retailing networks. Second, I consider two types of firms: national firms, tha ...
... goods produced in di erent locations as imperfect substitutes. The assumption captures the fact that once goods reach the sales market, they incorporate a substantial local marketing input and pass through non-competitive retailing networks. Second, I consider two types of firms: national firms, tha ...
Meaning of Monetary Policy
... suffers from the Disequilibrium in the BOP. The Reserve Bank of India through its monetary policy tries to maintain equilibrium in the balance of payments. The BOP has two aspects i.e. the 'BOP Surplus' and the 'BOP Deficit'. The former reflects an excess money supply in the domestic economy, while ...
... suffers from the Disequilibrium in the BOP. The Reserve Bank of India through its monetary policy tries to maintain equilibrium in the balance of payments. The BOP has two aspects i.e. the 'BOP Surplus' and the 'BOP Deficit'. The former reflects an excess money supply in the domestic economy, while ...
External Constraints on Monetary Policy and The Financial Accelerator
... these crises, that pertains in particular to open economies, is the strong connection with a ¯xed exchange rate regime. In a study covering the 1970s through the 1990s, Kaminsky and Reinhart [18] document the strong correlation between domestic ¯nancial strains and currency crises. Put di®erently, c ...
... these crises, that pertains in particular to open economies, is the strong connection with a ¯xed exchange rate regime. In a study covering the 1970s through the 1990s, Kaminsky and Reinhart [18] document the strong correlation between domestic ¯nancial strains and currency crises. Put di®erently, c ...
The Collapse of the Argentine Economy
... decreasing the price level and creating a small decrease in output. As a whole, the Argentine fixed exchange rate will decrease the price level and increase output. In addition, a fixed exchange rate will initially lower domestic interest rates, because both inflation and inflationary expectations d ...
... decreasing the price level and creating a small decrease in output. As a whole, the Argentine fixed exchange rate will decrease the price level and increase output. In addition, a fixed exchange rate will initially lower domestic interest rates, because both inflation and inflationary expectations d ...
Capital Mobility, Real Exchange Rate Apreciation and Asset
... ocurrence of herding behaviour, making assets demand more sensible (more elastic) to changes in current conditions. This increased sensibility in assets demand results in greater volatility of asset prices. The objective of this paper is to show that open economies that (i) have (short-term) capital ...
... ocurrence of herding behaviour, making assets demand more sensible (more elastic) to changes in current conditions. This increased sensibility in assets demand results in greater volatility of asset prices. The objective of this paper is to show that open economies that (i) have (short-term) capital ...
PPT Presentation
... In flexible exchange rate regimes, inflows cause nominal appreciation or inflation In fixed exchange rate regimes, inflows cause increases in monetary aggregates and thus inflation and real appreciation. ...
... In flexible exchange rate regimes, inflows cause nominal appreciation or inflation In fixed exchange rate regimes, inflows cause increases in monetary aggregates and thus inflation and real appreciation. ...
Series: GDP (constant LCU) (NY
... exclude labor and property income (formerly called factor services) as well as transfer payments. Data are in constant local currency. Source: World Bank national accounts data, and OECD National Accounts data files. ...
... exclude labor and property income (formerly called factor services) as well as transfer payments. Data are in constant local currency. Source: World Bank national accounts data, and OECD National Accounts data files. ...
Working Paper
... Bank of Greece, 21 El. Venizelou St., 10250 Athens, Greece, Tel. +30210-320.2370, Fax +30210 320.2432 Email: [email protected] ...
... Bank of Greece, 21 El. Venizelou St., 10250 Athens, Greece, Tel. +30210-320.2370, Fax +30210 320.2432 Email: [email protected] ...
The Mexican Peso Crisis - Federal Reserve Bank of Atlanta
... were pumping money into the country, and the central bank had accumulated billions of dollars in reserves. Capping the favorable developments was the proposal to reduce trade barriers with Mexico’s largest trade partner, the United States, through the North American Free Trade Agreement (NAFTA). The ...
... were pumping money into the country, and the central bank had accumulated billions of dollars in reserves. Capping the favorable developments was the proposal to reduce trade barriers with Mexico’s largest trade partner, the United States, through the North American Free Trade Agreement (NAFTA). The ...
The influences of monetary policy
... What is open market operation? Open market operations are the means of implementing monetary policy by which a central bank controls its national money supply by buying and selling government securities, or other financial instruments. Monetary targets, such as interest rates or exchange rates, ar ...
... What is open market operation? Open market operations are the means of implementing monetary policy by which a central bank controls its national money supply by buying and selling government securities, or other financial instruments. Monetary targets, such as interest rates or exchange rates, ar ...
Fix What Broke: Building an Orderly and Ethical International Monetary System Judy Shelton
... at least would be unlikely to persist: “The Friedman view is that since the destabilizing speculators would fail to survive, destabilizing speculation cannot occur.” Since the end of the Bretton Woods system, however, the behavior of exchange rates has not comported with Friedman’s expectations for ...
... at least would be unlikely to persist: “The Friedman view is that since the destabilizing speculators would fail to survive, destabilizing speculation cannot occur.” Since the end of the Bretton Woods system, however, the behavior of exchange rates has not comported with Friedman’s expectations for ...
The production possibilities curve illustrates which two of the
... Which of the following statements about markets is not true? Markets necessarily have a physical location. Markets have both a demand side and a supply side. The two types of markets include the factor and product markets. Every market transaction involves an exchange of money for goods or resources ...
... Which of the following statements about markets is not true? Markets necessarily have a physical location. Markets have both a demand side and a supply side. The two types of markets include the factor and product markets. Every market transaction involves an exchange of money for goods or resources ...
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... similarly. However, should larger EMU countries and/or systematically important banks located there lose access to the credit market and thus be in danger of defaulting, the ECB would probably be forced to intervene and buy the debt of these entities to avoid financial disaster. With the ECB being p ...
... similarly. However, should larger EMU countries and/or systematically important banks located there lose access to the credit market and thus be in danger of defaulting, the ECB would probably be forced to intervene and buy the debt of these entities to avoid financial disaster. With the ECB being p ...
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... 15) Internal balance describes A) equilibrium in the goods market. B) a desired level of trade or capital flows. C) where the IS and BP curve intersect. D) a domestic rate of growth consistent with a low unemployment rate. Answer: D 16) Many economists argue that the sharp reduction in U.S. net expo ...
... 15) Internal balance describes A) equilibrium in the goods market. B) a desired level of trade or capital flows. C) where the IS and BP curve intersect. D) a domestic rate of growth consistent with a low unemployment rate. Answer: D 16) Many economists argue that the sharp reduction in U.S. net expo ...
Examine the factors which affect the international
... countries, in particular to the extent that such lower labour costs are the result of lower taxation. On the other hand, low wage countries often complain about tariff and non tariff measures of high wage countries that exports goods and services in which low income countries have a comparative adva ...
... countries, in particular to the extent that such lower labour costs are the result of lower taxation. On the other hand, low wage countries often complain about tariff and non tariff measures of high wage countries that exports goods and services in which low income countries have a comparative adva ...
S0212088_en.pdf
... external disequilibria tended to work as a global demand-reducing tool, generating unemployment of labour and capital in non-tradable sectors. Beyond the exchange rate system, the country’s ability to smooth the cycle is associated to the sort of financial integration that countries do have with the ...
... external disequilibria tended to work as a global demand-reducing tool, generating unemployment of labour and capital in non-tradable sectors. Beyond the exchange rate system, the country’s ability to smooth the cycle is associated to the sort of financial integration that countries do have with the ...
International FRQs answers
... goods produced in other countries which are now cheaper, and other nations will reduce purchases of Country Z’s goods, which are now more expensive Summary: Increase in government borrowing raises real rates, currency appreciates, decrease in net exports means GDP declines (price level declines too) ...
... goods produced in other countries which are now cheaper, and other nations will reduce purchases of Country Z’s goods, which are now more expensive Summary: Increase in government borrowing raises real rates, currency appreciates, decrease in net exports means GDP declines (price level declines too) ...
Chapter 13
... The Role of Expectations • This is where expectations play a major role. Under Reagan, business and investor optimism increased because it was expected that the tax cut would stimulate economic growth, which indeed turned out to happen. • Under Clinton, business and investor optimism increased afte ...
... The Role of Expectations • This is where expectations play a major role. Under Reagan, business and investor optimism increased because it was expected that the tax cut would stimulate economic growth, which indeed turned out to happen. • Under Clinton, business and investor optimism increased afte ...
International
... goods produced in other countries which are now cheaper, and other nations will reduce purchases of Country Z’s goods, which are now more expensive Summary: Increase in government borrowing raises real rates, currency appreciates, decrease in net exports means GDP declines (price level declines too) ...
... goods produced in other countries which are now cheaper, and other nations will reduce purchases of Country Z’s goods, which are now more expensive Summary: Increase in government borrowing raises real rates, currency appreciates, decrease in net exports means GDP declines (price level declines too) ...
Figure 6-9 Effect of a Fiscal Policy Stimulus with Fixed Exchange
... while fiscal policy is highly effective, but some what less than the case of a small open economy, since its stimulus is divided between an increase in real income and domestic r instead of being entirely directed toward an increase in real income. With flexible e fiscal policy is impotent in a la ...
... while fiscal policy is highly effective, but some what less than the case of a small open economy, since its stimulus is divided between an increase in real income and domestic r instead of being entirely directed toward an increase in real income. With flexible e fiscal policy is impotent in a la ...
How the Fed Conducts Monetary Policy PPT
... rule for monetary policy that sets the policy instrument at a level that makes the central bank’s forecast of the ultimate policy goals equal to their targets. Ex.: If the ultimate policy goal is a 2 percent inflation rate and the instrument is the federal funds rate, then the targeting rule sets th ...
... rule for monetary policy that sets the policy instrument at a level that makes the central bank’s forecast of the ultimate policy goals equal to their targets. Ex.: If the ultimate policy goal is a 2 percent inflation rate and the instrument is the federal funds rate, then the targeting rule sets th ...
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.