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Does it matter how aggregates are measured?
... A wide range of empirical macro models for the Euro zone including e.g. the area wide models by Fagan, Henry and Mestre (2005, henceforth FHM), Artis and Beyer (2004) or by Smets and Wouters (2003) are based on aggregated Euro zone data. However, for annual or quarterly econometric time series model ...
... A wide range of empirical macro models for the Euro zone including e.g. the area wide models by Fagan, Henry and Mestre (2005, henceforth FHM), Artis and Beyer (2004) or by Smets and Wouters (2003) are based on aggregated Euro zone data. However, for annual or quarterly econometric time series model ...
The Contribution of Economic Fundamentals to Movements in
... fluctuations. We use annual data on the pound to the dollar exchange rate, money, output, prices, and interest rates for the UK and US from 1880 to 2010. The directly observed fundamental in our model is money supply differentials between the UK and US minus output differentials between the UK and t ...
... fluctuations. We use annual data on the pound to the dollar exchange rate, money, output, prices, and interest rates for the UK and US from 1880 to 2010. The directly observed fundamental in our model is money supply differentials between the UK and US minus output differentials between the UK and t ...
What Drives Exchange Rates? New Evidence from a Panel of U.S.
... dollar. However, over the same time, currencies of commodity-importing countries or currency areas, like the euro area and the United Kingdom, have also appreciated against the U.S. dollar. If currencies of commodity exporters appreciate, because their economies bene t from rising commodity prices, ...
... dollar. However, over the same time, currencies of commodity-importing countries or currency areas, like the euro area and the United Kingdom, have also appreciated against the U.S. dollar. If currencies of commodity exporters appreciate, because their economies bene t from rising commodity prices, ...
Can Open Economy Business Cycle Models Explain Business Cycle Facts?
... to which the real exchange rate seems noisy and significantly more volatile than its fundamentals would imply. The observed relative volatility of real exchange rate to GDP is between 2-8, with an average, over this dataset, larger than 3. Researchers have explained this high volatility from many di ...
... to which the real exchange rate seems noisy and significantly more volatile than its fundamentals would imply. The observed relative volatility of real exchange rate to GDP is between 2-8, with an average, over this dataset, larger than 3. Researchers have explained this high volatility from many di ...
Government expenditure composition and fiscal policy spillovers in
... We examine the implications of government expenditure that is complementary to private consumption, and government investment that can improve the productivity of private capital in a global DSGE model. We show that government investment can improve an economy’s external competitiveness and stimulat ...
... We examine the implications of government expenditure that is complementary to private consumption, and government investment that can improve the productivity of private capital in a global DSGE model. We show that government investment can improve an economy’s external competitiveness and stimulat ...
Economics of Money, Banking, and Fin. Markets, 10e, Global Edition
... B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above. Answer: D Ques Status: New AACSB: Reflective thinking skills 3) The "Greenspan doctrine" - centr ...
... B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above. Answer: D Ques Status: New AACSB: Reflective thinking skills 3) The "Greenspan doctrine" - centr ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... In the closed economy model of Svensson and Ball, the optimal policy is a Taylor rule: the interest rate depends on output and inflation. Equation (7) modifies the Taylor rule in two ways. First, the policy variable is a combination of r and e. And second, inflation is replaced by rr + ye-,, a combi ...
... In the closed economy model of Svensson and Ball, the optimal policy is a Taylor rule: the interest rate depends on output and inflation. Equation (7) modifies the Taylor rule in two ways. First, the policy variable is a combination of r and e. And second, inflation is replaced by rr + ye-,, a combi ...
Sovereign Debt Crises and Credit to the Private Sector
... can obtain a better rating than their sovereign. Thus, credit would become more expensive for all domestic firms and firms would decrease their borrowing.10 The size of the decline in credit will depend on the price elasticity of demand for credit. One would expect that financial and exporting secto ...
... can obtain a better rating than their sovereign. Thus, credit would become more expensive for all domestic firms and firms would decrease their borrowing.10 The size of the decline in credit will depend on the price elasticity of demand for credit. One would expect that financial and exporting secto ...
ESSAYS ON FINANCIAL REFORMS AND MONETARY POLICY IN MALAWI A Thesis
... appeared to be associated with depreciations of the exchange rate rather than the expected real appreciation. There is also evidence of limited impact of a positive aid shock on depreciation and inflation when RBM targets monetary aggregates compared to when the authorities use the Taylor rule and i ...
... appeared to be associated with depreciations of the exchange rate rather than the expected real appreciation. There is also evidence of limited impact of a positive aid shock on depreciation and inflation when RBM targets monetary aggregates compared to when the authorities use the Taylor rule and i ...
Experience with the monetary policy framework in
... than among countries with alternative monetary policy frameworks. For advanced economies, the differences are less evident. This must be seen in the light of the fact that price stability figures prominently in the monetary policy framework of advanced economies that do not operate an explicit infla ...
... than among countries with alternative monetary policy frameworks. For advanced economies, the differences are less evident. This must be seen in the light of the fact that price stability figures prominently in the monetary policy framework of advanced economies that do not operate an explicit infla ...
2014 Pilot External Sector Report: Individual Economy
... Background. Gross financial outflows and inflows grew steadily during the pre-crisis period along the expansion of banks’ cross-border operations. Similarly, they have shrunk since 2007 along the bank deleveraging. Short-term debt accounts for about 40 percent of the external liabilities and financi ...
... Background. Gross financial outflows and inflows grew steadily during the pre-crisis period along the expansion of banks’ cross-border operations. Similarly, they have shrunk since 2007 along the bank deleveraging. Short-term debt accounts for about 40 percent of the external liabilities and financi ...
7 Research Department Working Paper ... The Central Bank of the Republic of Turkey
... generally calculated by removing some components of the price indexes, particularly those that appear to be substantially more volatile than prices of other goods and services. It is argued that short-term movements in these prices result from rapid adjustment to frequent real shocks that are often ...
... generally calculated by removing some components of the price indexes, particularly those that appear to be substantially more volatile than prices of other goods and services. It is argued that short-term movements in these prices result from rapid adjustment to frequent real shocks that are often ...
Monetary Policy Rules for an Open Economy Nicoletta Batini* Richard Harrison** and
... However, the literature does not contain a thorough normative analysis of simple rules for open economies, i.e. for economies where the exchange rate channel of monetary policy plays an important role in the transmission mechanism.2 The most popular simple rule for the interest rate due to Taylor ...
... However, the literature does not contain a thorough normative analysis of simple rules for open economies, i.e. for economies where the exchange rate channel of monetary policy plays an important role in the transmission mechanism.2 The most popular simple rule for the interest rate due to Taylor ...
The Cross-Country Incidence of the Global Crisis
... focus on variables measuring cross-border trade and financial linkages. More generally, these authors fail to find any pre-crisis variable that is a robust correlate of the decline in growth since the onset of the crisis, in contrast with the “impressionistic” view sketched above. In our empirical w ...
... focus on variables measuring cross-border trade and financial linkages. More generally, these authors fail to find any pre-crisis variable that is a robust correlate of the decline in growth since the onset of the crisis, in contrast with the “impressionistic” view sketched above. In our empirical w ...
an evaluation of monetary policy instruments in achieving monetary
... money supply. However, practical experiences of the Federal Reserve in the United States (US) have shown that this may not be entirely correct. For instance, the US money supply growth rates increase faster than prices itself (Hamilton, 2001,Colander,1995). This has been traced to the increased dema ...
... money supply. However, practical experiences of the Federal Reserve in the United States (US) have shown that this may not be entirely correct. For instance, the US money supply growth rates increase faster than prices itself (Hamilton, 2001,Colander,1995). This has been traced to the increased dema ...
Chapter 19. The Goods Market in an Open Economy
... do they depend on? They clearly depend on domestic income: Higher domestic income leads to a higher domestic demand for all goods, both domestic and foreign. So a higher domestic income leads to higher imports.4 They also clearly depend on the real exchange rate—the price of domestic goods in terms ...
... do they depend on? They clearly depend on domestic income: Higher domestic income leads to a higher domestic demand for all goods, both domestic and foreign. So a higher domestic income leads to higher imports.4 They also clearly depend on the real exchange rate—the price of domestic goods in terms ...
The relevance of Keynes
... Depression of 1929–32. With the financial collapse of 2007–8 the ‘new classical’ belief in selfregulating markets has proved to be as illusory as the old classic belief. Since I wrote my biography, my ideas of what was significant in Keynes have shifted, partly because the world has changed. What I ...
... Depression of 1929–32. With the financial collapse of 2007–8 the ‘new classical’ belief in selfregulating markets has proved to be as illusory as the old classic belief. Since I wrote my biography, my ideas of what was significant in Keynes have shifted, partly because the world has changed. What I ...
Some Observations on Turkish Inflation: A “Random
... maintain a certain level of liquidity through “innovations”, most notably foreign exchange deposits and “repos”, as typical in many high and chronic inflation economies. Fourth, the monetary and exchange rate policy framework throughout the history of “modern” central banking in Turkey, i.e. since t ...
... maintain a certain level of liquidity through “innovations”, most notably foreign exchange deposits and “repos”, as typical in many high and chronic inflation economies. Fourth, the monetary and exchange rate policy framework throughout the history of “modern” central banking in Turkey, i.e. since t ...
Textbook of Economics
... One can ask why we have created this new book when many other books are available in the market. First, this book is shorter in comparison with other books used at universities. These days many students study economics at colleges rather than at universities so that they need less profound knowledge ...
... One can ask why we have created this new book when many other books are available in the market. First, this book is shorter in comparison with other books used at universities. These days many students study economics at colleges rather than at universities so that they need less profound knowledge ...
UNDERSTANDING MONETARY POLICY SERIES NO 3 CENTRAL BANK OF NIGERIA
... in circulation with non-bank public and demand deposits or current accounts in the banks. The broad money (M2) includes narrow money plus savings and time deposits, as well as foreign currency denominated deposits. Broad money measures the total volume of money supply in the economy. Thus, excess mo ...
... in circulation with non-bank public and demand deposits or current accounts in the banks. The broad money (M2) includes narrow money plus savings and time deposits, as well as foreign currency denominated deposits. Broad money measures the total volume of money supply in the economy. Thus, excess mo ...
A Model of the Twin Ds: Optimal Default and Devaluation ∗ S. Na
... government chooses optimally the paths of three policy instruments, the nominal exchange rate, the capital control tax, and the decision to default on the country’s net foreign debt obligations. The paper establishes two decentralization results that unfold twice the social planner real setup in whi ...
... government chooses optimally the paths of three policy instruments, the nominal exchange rate, the capital control tax, and the decision to default on the country’s net foreign debt obligations. The paper establishes two decentralization results that unfold twice the social planner real setup in whi ...
Henrike Michaelis und Sebastian Watzka: Are there Differences in
... is currently hitting the real economy of most advanced countries. Inflationary pressure has generally been subdued. Hence, the current experiences of most advanced economies pretty closely mirror the Japanese experience. It is against this background that our study on the effectiveness of the QE pol ...
... is currently hitting the real economy of most advanced countries. Inflationary pressure has generally been subdued. Hence, the current experiences of most advanced economies pretty closely mirror the Japanese experience. It is against this background that our study on the effectiveness of the QE pol ...
Lecture Note on the Gold Standard
... have found that short-term rates did stay within these credibility bounds. Not just for the US but also for France and Germany. This was true even when short-term interest rates were rather volatile. It is this high degree of credibility of the system that made capital flows so substantial in this p ...
... have found that short-term rates did stay within these credibility bounds. Not just for the US but also for France and Germany. This was true even when short-term interest rates were rather volatile. It is this high degree of credibility of the system that made capital flows so substantial in this p ...
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.