reserve requirements and optimal chinese stabilization policy
... tightly controlled capital account. Following the global financial crisis, Chinas limited capital mobility combined with low foreign interest rates raised the fiscal cost of sterilizing capital inflows. Chang et al. (2015b) demonstrate that there is a tradeoff between sterilization costs and domesti ...
... tightly controlled capital account. Following the global financial crisis, Chinas limited capital mobility combined with low foreign interest rates raised the fiscal cost of sterilizing capital inflows. Chang et al. (2015b) demonstrate that there is a tradeoff between sterilization costs and domesti ...
Time Series vs. Panel Estimates
... variables. In section 7 we conduct conditional forecasts over the hold-backperiod to assess the relative forecast accuracy of both models, which may be regarded as an informal out-of-sample stability analysis. Based on the results of this exercise, we choose a preferred specification, which is then ...
... variables. In section 7 we conduct conditional forecasts over the hold-backperiod to assess the relative forecast accuracy of both models, which may be regarded as an informal out-of-sample stability analysis. Based on the results of this exercise, we choose a preferred specification, which is then ...
WT/BOP/R/91 - WTO Documents Online
... Answering a question regarding the nature of a balance-of-payments crisis in a dollarized economy, the representative of the IMF said that a balance of payments crisis affected the economy mainly by reducing domestic liquidity and weakening confidence. This could have a strong impact on the level of ...
... Answering a question regarding the nature of a balance-of-payments crisis in a dollarized economy, the representative of the IMF said that a balance of payments crisis affected the economy mainly by reducing domestic liquidity and weakening confidence. This could have a strong impact on the level of ...
The Fiscal Multiplier in Small Open Economy
... capital mobility, the crowding-out of net exports would be large enough to completely o set the e ects of a scal stimulus, hence giving a zero multiplier. In a standard open-economy New Keynesian dynamic stochastic general equilibrium (DSGE) model, scal expansion in a small open economy similarly le ...
... capital mobility, the crowding-out of net exports would be large enough to completely o set the e ects of a scal stimulus, hence giving a zero multiplier. In a standard open-economy New Keynesian dynamic stochastic general equilibrium (DSGE) model, scal expansion in a small open economy similarly le ...
View/Open
... Krugman (2000, pp.1) acknowledges that there is no generally accepted formal definition of currency crises, but we know them when we see them. Different definitions of currency crises may actually fall into three classes. An example of the first class of definitions appears in the work of Frankel ...
... Krugman (2000, pp.1) acknowledges that there is no generally accepted formal definition of currency crises, but we know them when we see them. Different definitions of currency crises may actually fall into three classes. An example of the first class of definitions appears in the work of Frankel ...
Why Did Asian Countries Fare Better during the Global Financial
... stability—that is, the advanced economies—have increasingly become the sources of global instability since the crisis. The advanced economies are large enough to systematically matter, and they affect Asia and the rest of the world. Notwithstanding its substantial adverse implications for Asia’s med ...
... stability—that is, the advanced economies—have increasingly become the sources of global instability since the crisis. The advanced economies are large enough to systematically matter, and they affect Asia and the rest of the world. Notwithstanding its substantial adverse implications for Asia’s med ...
NBER WORKING PAPER SERIES THINK Jonathan Heathcote
... nacy result, portfolio choice does not have to do all the heavy-lifting when it comes to delivering perfect risk-sharing. In contrast to Cole and Obstfeld, however, the presence of production and particularly investment in our model means that returns to domestic and foreign stocks are not automati ...
... nacy result, portfolio choice does not have to do all the heavy-lifting when it comes to delivering perfect risk-sharing. In contrast to Cole and Obstfeld, however, the presence of production and particularly investment in our model means that returns to domestic and foreign stocks are not automati ...
NBER WORKING PAPER SERIES Richard Clarida Daniel Waldman
... We show in a simple -- but robust -- theoretical monetary exchange rate model that the sign of the covariance between an inflation surprise and the nominal exchange rate can tell us something about how monetary policy is conducted. Specifically, we show that 'bad news' about inflation -- that it is ...
... We show in a simple -- but robust -- theoretical monetary exchange rate model that the sign of the covariance between an inflation surprise and the nominal exchange rate can tell us something about how monetary policy is conducted. Specifically, we show that 'bad news' about inflation -- that it is ...
Estimating Trade Elasticities for World Capital Goods Exports
... The evidence also indicates that exchange rate elasticities are essentially zero for Germany. There is a commonly held view that Germany has benefited from the euro because it has stimulated exports by keeping the exchange rate weaker than it would have been if Germany still had its own currency (se ...
... The evidence also indicates that exchange rate elasticities are essentially zero for Germany. There is a commonly held view that Germany has benefited from the euro because it has stimulated exports by keeping the exchange rate weaker than it would have been if Germany still had its own currency (se ...
Monetary Policy and Inflation in Israel
... set by government while maintaining and supporting, at the same time, the exchange rate's crawling band. When compared to most other countries that adopted explicit inflation targets, Israel's case is unique for at least three reasons. First, it is one of the only cases in which in spite of the atte ...
... set by government while maintaining and supporting, at the same time, the exchange rate's crawling band. When compared to most other countries that adopted explicit inflation targets, Israel's case is unique for at least three reasons. First, it is one of the only cases in which in spite of the atte ...
Monetary Issues in the Middle East and North Africa Region
... systems which target market rates around the middle of the corridor, and those which leave rates to trade near the floor, with different consequences for monetary transmission and market development. In view of the structural excess liquidity in most of the countries represented, this section also d ...
... systems which target market rates around the middle of the corridor, and those which leave rates to trade near the floor, with different consequences for monetary transmission and market development. In view of the structural excess liquidity in most of the countries represented, this section also d ...
Monetary Theory and Monetary Policy: Reflections on the
... implicit challenge is obvious: What are the consequences for the economy if monetary policy follows the goal of price level stability (or low and stable inflation)? Is the implicit “non-neutrality” relevant? Is “neutrality” a concept of any relevance for the conduct of monetary policy? Hayek’s discu ...
... implicit challenge is obvious: What are the consequences for the economy if monetary policy follows the goal of price level stability (or low and stable inflation)? Is the implicit “non-neutrality” relevant? Is “neutrality” a concept of any relevance for the conduct of monetary policy? Hayek’s discu ...
Separating Monetary and Structural Causes of Inflation
... through to import prices and therefore to domestic consumer prices” (Mishkin, 2008). It is also argued that the lack of financial resources coupled with a limited tax base cause these less developed countries to resort to deficit financing through the central banks, that lead to inflationary pressur ...
... through to import prices and therefore to domestic consumer prices” (Mishkin, 2008). It is also argued that the lack of financial resources coupled with a limited tax base cause these less developed countries to resort to deficit financing through the central banks, that lead to inflationary pressur ...
mmi07 Cheung 4357324 en
... there is “no unified benchmark on the appropriate amount of forex international reserve a country should hold in both theory and practice” and “it could not be said to be “excessive” or “deficient.”5 The official statements usually point to the need of building up international reserves to fend off ...
... there is “no unified benchmark on the appropriate amount of forex international reserve a country should hold in both theory and practice” and “it could not be said to be “excessive” or “deficient.”5 The official statements usually point to the need of building up international reserves to fend off ...
That Which We Call Capital Controls
... macroeconomic policies (which typically required outflow restrictions to protect the balance of payments). Not until the 1980s, did these economies begin to liberalize, and although capital account liberalization was not part of the original Washington Consensus (Williamson, 1990), the idea of subje ...
... macroeconomic policies (which typically required outflow restrictions to protect the balance of payments). Not until the 1980s, did these economies begin to liberalize, and although capital account liberalization was not part of the original Washington Consensus (Williamson, 1990), the idea of subje ...
Capítulo 3
... been commonly used to describe the behavior of monetary policy. In Brazil, these policy rules have been estimated by several authors in order to assess the Central Bank’s response to macroeconomic variables (such as inflation, output and exchange rate), and also to indicate possible monetary policy ...
... been commonly used to describe the behavior of monetary policy. In Brazil, these policy rules have been estimated by several authors in order to assess the Central Bank’s response to macroeconomic variables (such as inflation, output and exchange rate), and also to indicate possible monetary policy ...
Lecture 3: Vulnerabilities Related to the Scaling Up of Aid and Other
... greater demand leads to increased supply This has a positive impact on production without increasing the price of nontradables No risk of Dutch disease ...
... greater demand leads to increased supply This has a positive impact on production without increasing the price of nontradables No risk of Dutch disease ...
From Capital Control to Capital`s Control : Political Economy of
... national plan, called ‘government intervention triad’. In this case, capital controls could be very useful policy measures for development when implemented by capable government, in particular with the other complementary policies to promote investment (Nembhard, 1996). Proper capital controls can l ...
... national plan, called ‘government intervention triad’. In this case, capital controls could be very useful policy measures for development when implemented by capable government, in particular with the other complementary policies to promote investment (Nembhard, 1996). Proper capital controls can l ...
Benefits and Risks of Financial Globalization
... not in place or is not put in place while integrating, liberalization followed by capital inflows can debilitate the health of the local financial system. If market fundamentals deteriorate, speculative attacks will occur with capital outflows generated by both domestic and foreign investors. For s ...
... not in place or is not put in place while integrating, liberalization followed by capital inflows can debilitate the health of the local financial system. If market fundamentals deteriorate, speculative attacks will occur with capital outflows generated by both domestic and foreign investors. For s ...
NBER WORKING PAPER SERIES 1880-1913 vs. 1972-1997
... We ascribe this partially to good debt management or avoidance of currency mismatches on the aggregate balance sheet and partially to special country characteristics that vary over time and are most difficult to control for econometrically. The latter group of countries do not seem to possess either ...
... We ascribe this partially to good debt management or avoidance of currency mismatches on the aggregate balance sheet and partially to special country characteristics that vary over time and are most difficult to control for econometrically. The latter group of countries do not seem to possess either ...
Pick Your Poison: The Choices and 1 4
... interest rates, and capital controls for the two crisis periods. The numbers on the diagonal of the tables represent changes in each policy that did not occur within one quarter of a change in any other of the three policies. The numbers in the upper triangular part of the matrix represent pairs of ...
... interest rates, and capital controls for the two crisis periods. The numbers on the diagonal of the tables represent changes in each policy that did not occur within one quarter of a change in any other of the three policies. The numbers in the upper triangular part of the matrix represent pairs of ...
1 United Nations
... in the foreign exchange market, and in the financial system as a whole. Large foreign exchange reserves and careful regulation of capital flows were important factors for many Asia-Pacific countries in reducing the potential disruption of capital flow volatility during the recent crisis. Nevertheles ...
... in the foreign exchange market, and in the financial system as a whole. Large foreign exchange reserves and careful regulation of capital flows were important factors for many Asia-Pacific countries in reducing the potential disruption of capital flow volatility during the recent crisis. Nevertheles ...
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.