Macroeconomic Instability: Causes and Policy Responses I
... economists would argue with the desirability of reducing the rate of inflation from 8-12 percent in 2007 down to 4-6 percent in 2008. Slowing money and credit growth is a prerequisite to stable prices. Reducing the fiscal deficit is an important policy variable, which in turn would likely have the e ...
... economists would argue with the desirability of reducing the rate of inflation from 8-12 percent in 2007 down to 4-6 percent in 2008. Slowing money and credit growth is a prerequisite to stable prices. Reducing the fiscal deficit is an important policy variable, which in turn would likely have the e ...
International Monetary System - GW Links
... The central element of the international monetary system involves the arrangements by which exchange rates are set. The purpose of an exchange-rate system is to facilitate and promote international trade and finance. There have been three major exchange rate regimes from a historical perspective – f ...
... The central element of the international monetary system involves the arrangements by which exchange rates are set. The purpose of an exchange-rate system is to facilitate and promote international trade and finance. There have been three major exchange rate regimes from a historical perspective – f ...
Thailand`s Macroeconomic Policies: From Crisis to
... earlier. By the end of 1996, speculative attacks on the baht had signaled an unrealistic currency peg and eventually led to the currency crash in July 1997. The baht depreciated sharply from around 25 to an average rate of 45.20 baht per US dollar for the year1997. Heavy reliance on dollar-denominat ...
... earlier. By the end of 1996, speculative attacks on the baht had signaled an unrealistic currency peg and eventually led to the currency crash in July 1997. The baht depreciated sharply from around 25 to an average rate of 45.20 baht per US dollar for the year1997. Heavy reliance on dollar-denominat ...
Lecture Notes 1
... domestic ownership of foreign assets. It contains the following categories: • Foreign direct investment (FDI) • Portfolio investment refers to the purchase of shares and bonds (it is sometimes grouped together with ”other” as short term investment) • Other investment includes capital flows into bank ...
... domestic ownership of foreign assets. It contains the following categories: • Foreign direct investment (FDI) • Portfolio investment refers to the purchase of shares and bonds (it is sometimes grouped together with ”other” as short term investment) • Other investment includes capital flows into bank ...
Macroeconomics
... • Use the CPI to compute the inflation rate from previous year (using previous example) ...
... • Use the CPI to compute the inflation rate from previous year (using previous example) ...
Monetary Policy Rules - Central Web Server 2
... An important development—if not the important intellectual development throughout the past 25 years in our understanding of how the macroeconomy works—is the recognition that expectations play a central role in affecting economic behavior. Previously, to the extent that expectations were considered ...
... An important development—if not the important intellectual development throughout the past 25 years in our understanding of how the macroeconomy works—is the recognition that expectations play a central role in affecting economic behavior. Previously, to the extent that expectations were considered ...
Real Exchange Rate
... rate changes through time. 2. An economy’s nominal interest rate captures the price at which individuals are willing to trade money through time. 3. An economy’s real interest rate captures the price at which individuals are willing to trade goods through time. 4. The Fisher Effect captures a relati ...
... rate changes through time. 2. An economy’s nominal interest rate captures the price at which individuals are willing to trade money through time. 3. An economy’s real interest rate captures the price at which individuals are willing to trade goods through time. 4. The Fisher Effect captures a relati ...
macro open econ model
... 1. Which of the following statements about a country with a trade deficit is not true? A. exports < imports B. net capital outflow < 0 ...
... 1. Which of the following statements about a country with a trade deficit is not true? A. exports < imports B. net capital outflow < 0 ...
Ch. 10
... century by providing credit to the financial markets. In order to disperse power 12 regional Federal Reserve Banks were formed. The seven members of the Board of Governors are appointed by the President for 14-year terms every other year. ...
... century by providing credit to the financial markets. In order to disperse power 12 regional Federal Reserve Banks were formed. The seven members of the Board of Governors are appointed by the President for 14-year terms every other year. ...
Third Annual IMF Research Conference: IS-LM
... standard model with perfect capital markets and no balance sheet effects, but the fall in investment is not. In that model, a fall in exports today does not affect the profitability of capital tomorrow, and hence it leaves investment unchanged. That is what happens in our model in the special case µ ...
... standard model with perfect capital markets and no balance sheet effects, but the fall in investment is not. In that model, a fall in exports today does not affect the profitability of capital tomorrow, and hence it leaves investment unchanged. That is what happens in our model in the special case µ ...
Regional Symposium: Policies and Environment Conducive to
... from having exchange rate arrangements considered to be necessary or desirable for their own economies' monetary or other economic conditions. Their domestic currencies would adjust against the APECCU according to the arrangements they have in place. Control of their own monetary and other economic ...
... from having exchange rate arrangements considered to be necessary or desirable for their own economies' monetary or other economic conditions. Their domestic currencies would adjust against the APECCU according to the arrangements they have in place. Control of their own monetary and other economic ...
The Realities of Modern Hyperinflation
... Note: t refers to the hyperinflation years (in parentheses). n.a. denotes not available. inflation began. Although deposits 1Nonfinancial public sector or general government. Excludes quasi-fiscal losses. and monetary aggregates do recover after hyperinflation ends, intermediaLingering effects tion ...
... Note: t refers to the hyperinflation years (in parentheses). n.a. denotes not available. inflation began. Although deposits 1Nonfinancial public sector or general government. Excludes quasi-fiscal losses. and monetary aggregates do recover after hyperinflation ends, intermediaLingering effects tion ...
NBER WORKING PAPER SERIES CAPITAL CONTROLS, THE DUAL EXCHANGE RATE, AND Maurice Obstfeld
... lating reserves in the opposite case. Fourth, the divergence (noted above) between the domestic equilibrium real interest rate p and the rate available to the central hank economy.8 ...
... lating reserves in the opposite case. Fourth, the divergence (noted above) between the domestic equilibrium real interest rate p and the rate available to the central hank economy.8 ...
Evolution by Region - Pennsylvania State University
... called the Balassa-Samuelson effect – economic growth is associated with increased productivity in traded goods, so that they fall relative to the price of nontraded goods. – Why does economic growth cause the relative price of tradables to fall? ...
... called the Balassa-Samuelson effect – economic growth is associated with increased productivity in traded goods, so that they fall relative to the price of nontraded goods. – Why does economic growth cause the relative price of tradables to fall? ...
This PDF is a selection from a published volume from... Bureau of Economic Research
... In this model, in addition to the usual motives for holding capital, households have an additional return from holding capital since it can be used to economize on non-interest bearing currency holdings. The incentives to economize on currency holdings are stronger when the inflation rate is higher. ...
... In this model, in addition to the usual motives for holding capital, households have an additional return from holding capital since it can be used to economize on non-interest bearing currency holdings. The incentives to economize on currency holdings are stronger when the inflation rate is higher. ...
Living With the IMF.indd
... reducing debt servicing costs through restructuring of the country’s domestic debt. In addition, there has been several tax packages aimed at boosting revenues and shrinking the gap between revenues and expenditure. Cost cutting measures employed in both the public and private sectors will mean empl ...
... reducing debt servicing costs through restructuring of the country’s domestic debt. In addition, there has been several tax packages aimed at boosting revenues and shrinking the gap between revenues and expenditure. Cost cutting measures employed in both the public and private sectors will mean empl ...
Balance of Payments and Exchange Rates
... A real depreciation has the opposite effect as more domestic baskets are needed to buy one foreign basket and the balance of trade improves: • this results in an _______ in the country’s Ch1/BP&ER ...
... A real depreciation has the opposite effect as more domestic baskets are needed to buy one foreign basket and the balance of trade improves: • this results in an _______ in the country’s Ch1/BP&ER ...
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... various considerations and their implications for exchange rate regimes summarized by the International Monetary Fund are given in Box 1. How do the affected countries fare against the checklist in Box 1? At first glance, they are relatively small, highly open economies where imports account for mor ...
... various considerations and their implications for exchange rate regimes summarized by the International Monetary Fund are given in Box 1. How do the affected countries fare against the checklist in Box 1? At first glance, they are relatively small, highly open economies where imports account for mor ...
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... On Ms Nabiullina’s watch Russia’s domestic investment market, another source of stable funding, has also deepened. The share of Russia’s public debt in domestic hands rose from 66% to 70% in 2013 alone. Goldman Sachs, a bank, reckons that the assets of Russian pension funds, which are regulated by ...
... On Ms Nabiullina’s watch Russia’s domestic investment market, another source of stable funding, has also deepened. The share of Russia’s public debt in domestic hands rose from 66% to 70% in 2013 alone. Goldman Sachs, a bank, reckons that the assets of Russian pension funds, which are regulated by ...
ch_19_p
... under-valued foreign currency assets. • Central banks thought they would stop trading in the foreign exchange for a while, and would let exchange rates adjust to supply and demand, and then would re-impose fixed exchange rates soon. • But no new global system of fixed rates was started ...
... under-valued foreign currency assets. • Central banks thought they would stop trading in the foreign exchange for a while, and would let exchange rates adjust to supply and demand, and then would re-impose fixed exchange rates soon. • But no new global system of fixed rates was started ...
INTERNATIONAL MONETARY ECONOMICS Syllabus and study
... These questions, prepared by the same John Harvey, are to help guide your studying. Though these exact questions may not appear on your exams, the tests will be based also on this list. 1. List the balance of payments accounts. 2. What is a floating or flexible exchange rate system. 3. Why, logicall ...
... These questions, prepared by the same John Harvey, are to help guide your studying. Though these exact questions may not appear on your exams, the tests will be based also on this list. 1. List the balance of payments accounts. 2. What is a floating or flexible exchange rate system. 3. Why, logicall ...
Full Text
... it should be remembered that the new European Union members do not have the “opt-out” clause like some of the old ones. In practice, they have to adopt the euro at some point in the future. Furthermore, the legal procedures for exit from the European Union and Eurozone are not clearly defined. The c ...
... it should be remembered that the new European Union members do not have the “opt-out” clause like some of the old ones. In practice, they have to adopt the euro at some point in the future. Furthermore, the legal procedures for exit from the European Union and Eurozone are not clearly defined. The c ...
Managing The National Economy
... currency is determined by its supply and demand – Managed floating exchange rates – There may be some government / central bank intervention if there are large movements or its deemed beneficial for economic policy ...
... currency is determined by its supply and demand – Managed floating exchange rates – There may be some government / central bank intervention if there are large movements or its deemed beneficial for economic policy ...
14.02 Macroeconomics May 18, 2006 Practice Question: Mundell-Fleming Model Managing Vermont’s Economy
... The increase in the US interest rate leads to an upward shift of the UIP curve, and an outward shift of the IS curve. Output increases from Y to Y 0 > Y , the interest rate increases from i to i0 > i, and the exchange rate decreases (i.e., VT$ depreciates). Holding everything else constant, the depr ...
... The increase in the US interest rate leads to an upward shift of the UIP curve, and an outward shift of the IS curve. Output increases from Y to Y 0 > Y , the interest rate increases from i to i0 > i, and the exchange rate decreases (i.e., VT$ depreciates). Holding everything else constant, the depr ...
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.