Chapter 12
... • Purchases of Commercial Paper, short term debt of corporations. • Purchases of longer term Federal Treasuries • Purchases of mortgage backed securities. ...
... • Purchases of Commercial Paper, short term debt of corporations. • Purchases of longer term Federal Treasuries • Purchases of mortgage backed securities. ...
Chapter 13
... overnight interest rates up to 300% in a desperate attempt to maintain the Hong Kong dollar's link with the U.S. dollar. Does this make sense? (Yes, if a depreciation of a fixed rate is expected, an extremely high rate of interest on the home currency may be needed if people are to be discouraged fr ...
... overnight interest rates up to 300% in a desperate attempt to maintain the Hong Kong dollar's link with the U.S. dollar. Does this make sense? (Yes, if a depreciation of a fixed rate is expected, an extremely high rate of interest on the home currency may be needed if people are to be discouraged fr ...
E719_No13_Chapter13
... overnight interest rates up to 300% in a desperate attempt to maintain the Hong Kong dollar's link with the U.S. dollar. Does this make sense? (Yes, if a depreciation of a fixed rate is expected, an extremely high rate of interest on the home currency may be needed if people are to be discouraged fr ...
... overnight interest rates up to 300% in a desperate attempt to maintain the Hong Kong dollar's link with the U.S. dollar. Does this make sense? (Yes, if a depreciation of a fixed rate is expected, an extremely high rate of interest on the home currency may be needed if people are to be discouraged fr ...
NBER WORKING PAPER SERIES OPEN ECONOMY MACROECONOMICS: NEW DIRECTIONS Rudiger Dornbusch
... are price setters. This implies that industry shocks such as exchange rate movements or changes in commercial policy have effects on output and prices different from the standard model of a small country under perfect competition. Industrial organization considerations including market structure and ...
... are price setters. This implies that industry shocks such as exchange rate movements or changes in commercial policy have effects on output and prices different from the standard model of a small country under perfect competition. Industrial organization considerations including market structure and ...
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... Germany), the dollar became increasingly overvalued and tensions grew. With economic fundamentals in the United States deteriorating sharply speculative activity in the foreign exchange market reached a level far exceeding the defensive capacity of national authorities. A devaluation of the French f ...
... Germany), the dollar became increasingly overvalued and tensions grew. With economic fundamentals in the United States deteriorating sharply speculative activity in the foreign exchange market reached a level far exceeding the defensive capacity of national authorities. A devaluation of the French f ...
Policy, Exchange Rates, and the International System W. Max Corden
... subject matter is divided into four general areas, each comprising one or several chapters. The introduction presents the reader with a set of properties that characterize the present international monetary system (i.e., what are the key issues, and what specific problems do they create for the syst ...
... subject matter is divided into four general areas, each comprising one or several chapters. The introduction presents the reader with a set of properties that characterize the present international monetary system (i.e., what are the key issues, and what specific problems do they create for the syst ...
Due Date: Thursday, September 8th (at the beginning of class)
... what the financing gap approach is for development economists. Is Easterly a fan of this approach? Why or why not? Direct quote from pp. 29: “The difference between the required investment and the country’s own savings is called the financing gap. Private financing is assumed to be unavailable to fi ...
... what the financing gap approach is for development economists. Is Easterly a fan of this approach? Why or why not? Direct quote from pp. 29: “The difference between the required investment and the country’s own savings is called the financing gap. Private financing is assumed to be unavailable to fi ...
Some hypotheses related to the mexican 1994
... The government reacted to that crisis with substantial spending cuts and increased public sector prices and taxes, that turned out to be insufficient since the initial problems were strongly aggravated by the sharp fall in Mexico's terms of trade throughout President De la Madrid's term of office (1 ...
... The government reacted to that crisis with substantial spending cuts and increased public sector prices and taxes, that turned out to be insufficient since the initial problems were strongly aggravated by the sharp fall in Mexico's terms of trade throughout President De la Madrid's term of office (1 ...
Syllabus - Harvard Kennedy School
... Topics covered: What is the role of monetary and fiscal policy in an open economy? What determines the balance of payments, the level of economic activity, and inflation? Should countries fix their exchange rates, or let them float? How does the globalization of financial markets affect these and ot ...
... Topics covered: What is the role of monetary and fiscal policy in an open economy? What determines the balance of payments, the level of economic activity, and inflation? Should countries fix their exchange rates, or let them float? How does the globalization of financial markets affect these and ot ...
, Institute Di de
... by the government and its tax receipts, OY, are used to pay for current public expenditure in the two commodities, on interest payments on the outstanding bonds, iD,and on the accumulation of foreign exchange reserves eb. The tax rate on factor income is assumed to be constant and positive; no taxes ...
... by the government and its tax receipts, OY, are used to pay for current public expenditure in the two commodities, on interest payments on the outstanding bonds, iD,and on the accumulation of foreign exchange reserves eb. The tax rate on factor income is assumed to be constant and positive; no taxes ...
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... move to a more or less flexible intermediate arrangement, the following fundamental economic point comes to mind: The issue of how and when to adjust the exchange rate regime is closely related to the speed of the catching-up process, the institutional structure of the country concerned, its interna ...
... move to a more or less flexible intermediate arrangement, the following fundamental economic point comes to mind: The issue of how and when to adjust the exchange rate regime is closely related to the speed of the catching-up process, the institutional structure of the country concerned, its interna ...
Australia`s Survey of Foreign Currency Exposure
... For individual entities with unhedged foreign currency assets, liabilities or trade exposures, fluctuations in the exchange rate can lead to changes in the local currency value of their balance sheet positions and/or cash flows. More specifically, entities with net foreign currency liability exposur ...
... For individual entities with unhedged foreign currency assets, liabilities or trade exposures, fluctuations in the exchange rate can lead to changes in the local currency value of their balance sheet positions and/or cash flows. More specifically, entities with net foreign currency liability exposur ...
On Some Unresolved Problems Of Monetary
... In the light of this reality, monetary policy is now burdened with the portfolio changes among assets which influence growth and/or inflation, either because central bankers believe such an ambition is possible, or because governments demand it of them. In this context derivatives, even before their ...
... In the light of this reality, monetary policy is now burdened with the portfolio changes among assets which influence growth and/or inflation, either because central bankers believe such an ambition is possible, or because governments demand it of them. In this context derivatives, even before their ...
Case Studies - Stephen Kinsella
... banks and numerous banks of lesser size in developed countries were crippled in the aftermath of the global financial crisis. Normal lending activity was impeded, while capital markets are unable or unwilling to provide the banks with sufficient equity capital to pull them out of their dire straits. ...
... banks and numerous banks of lesser size in developed countries were crippled in the aftermath of the global financial crisis. Normal lending activity was impeded, while capital markets are unable or unwilling to provide the banks with sufficient equity capital to pull them out of their dire straits. ...
Accelerated Macro Spring 2015 Solutions to HW #4 1
... decreasing banks’ holdings of MBS. The increase in the monetary base leads to an increase in the money supply through multiple expansions of loans and deposits. The money multiplier is likely unchanged. b. A financial crisis prompts households to sell off some of their stock market portfolio and dep ...
... decreasing banks’ holdings of MBS. The increase in the monetary base leads to an increase in the money supply through multiple expansions of loans and deposits. The money multiplier is likely unchanged. b. A financial crisis prompts households to sell off some of their stock market portfolio and dep ...
presentation
... bank’s cash vault is total bank reserves. • The Fed mandates member commercial banks to hold a certain fraction of their checkable deposits in reserve form. This fraction is called the required reserve ratio. • The difference between a bank’s total reserves and its required reserves is its excess re ...
... bank’s cash vault is total bank reserves. • The Fed mandates member commercial banks to hold a certain fraction of their checkable deposits in reserve form. This fraction is called the required reserve ratio. • The difference between a bank’s total reserves and its required reserves is its excess re ...
Transmission of the Great Depression
... in part by previous financial ease.2 The gold outflow was a prominent determinant of the policy change, even though it was tiny relative to the U.S. reserves. The Fed's primary aim in 1928 and 1929 was to curb speculation on the stock exchange while not depressing the economy. It failed on both coun ...
... in part by previous financial ease.2 The gold outflow was a prominent determinant of the policy change, even though it was tiny relative to the U.S. reserves. The Fed's primary aim in 1928 and 1929 was to curb speculation on the stock exchange while not depressing the economy. It failed on both coun ...
Chapter 16
... • Real depreciation of the dollar against the euro – A rise in the real dollar/euro exchange rate (q$/€↑) • is a fall in the purchasing power of a dollar within Europe’s borders relative to its purchasing power within the United States • Or alternatively, a fall in the purchasing power of America’s ...
... • Real depreciation of the dollar against the euro – A rise in the real dollar/euro exchange rate (q$/€↑) • is a fall in the purchasing power of a dollar within Europe’s borders relative to its purchasing power within the United States • Or alternatively, a fall in the purchasing power of America’s ...
WHAT IS WRONG WITH THE WASHINGTON CONSENSUS AND WHAT SHOULD by
... balance problems, the result would tend to increase the global inequality of income. Williamson is for a flexible Acompetitive@ exchange rate system rather than a fixed exchange rate system. Under this policy approach if a Latin American country is suffering from a persistent trade payments deficit, ...
... balance problems, the result would tend to increase the global inequality of income. Williamson is for a flexible Acompetitive@ exchange rate system rather than a fixed exchange rate system. Under this policy approach if a Latin American country is suffering from a persistent trade payments deficit, ...
Finance - Department of Agricultural Economics
... What two automatic stabilizers are built into most modern economies? Income tax system and unemployment-compensation and welfare payments ...
... What two automatic stabilizers are built into most modern economies? Income tax system and unemployment-compensation and welfare payments ...
Introduction
... and strength of real-sector and financial-sector linkages among national economies. • Real Sector: The sector of the economy engaged in the production and sale of goods and services. • Financial Sector: The sector of the economy where individuals trade in financial assets. • Though economists tend t ...
... and strength of real-sector and financial-sector linkages among national economies. • Real Sector: The sector of the economy engaged in the production and sale of goods and services. • Financial Sector: The sector of the economy where individuals trade in financial assets. • Though economists tend t ...
Introduction
... and strength of real-sector and financial-sector linkages among national economies. • Real Sector: The sector of the economy engaged in the production and sale of goods and services. • Financial Sector: The sector of the economy where individuals trade in financial assets. • Though economists tend t ...
... and strength of real-sector and financial-sector linkages among national economies. • Real Sector: The sector of the economy engaged in the production and sale of goods and services. • Financial Sector: The sector of the economy where individuals trade in financial assets. • Though economists tend t ...
Chapter 33: The Global Economy
... they can shift. The year 1994 was a presidential election year in Mexico. That year began with a guerilla uprising in the province of Chiapas. The year also saw several political assassinations. To the foreign exchange speculators, these events indicated that there could be growing political instabi ...
... they can shift. The year 1994 was a presidential election year in Mexico. That year began with a guerilla uprising in the province of Chiapas. The year also saw several political assassinations. To the foreign exchange speculators, these events indicated that there could be growing political instabi ...
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.