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 ...
Dreher ge08 6483485 en
... 28 percent of currency crises were associated with a contemporaneous short-term IMF program, while 18 percent of such programs were associated with a contemporaneous currency crisis. However, he does not provide an analysis of the causal direction of this empirical relationship. Overall, we thus kno ...
... 28 percent of currency crises were associated with a contemporaneous short-term IMF program, while 18 percent of such programs were associated with a contemporaneous currency crisis. However, he does not provide an analysis of the causal direction of this empirical relationship. Overall, we thus kno ...
Does Purchasing Power Parity hold between European countries?
... put much effort into study and develop exchange rate determination theories. Although exchange rate determination theories are foundations in international finance, it is still need to be developed and improved. The schools of exchange rate research are various, and the debates involve with many eco ...
... put much effort into study and develop exchange rate determination theories. Although exchange rate determination theories are foundations in international finance, it is still need to be developed and improved. The schools of exchange rate research are various, and the debates involve with many eco ...
central bank interventions, communication and interest rate policy in
... The empirical literature on the effectiveness of – mostly sterilized – foreign exchange (FX) interventions in developed market economies remains fairly mixed despite the recent emergence of some more supportive evidence.1 In this context, Canales-Kirjenko (2003) argues that foreign exchange interven ...
... The empirical literature on the effectiveness of – mostly sterilized – foreign exchange (FX) interventions in developed market economies remains fairly mixed despite the recent emergence of some more supportive evidence.1 In this context, Canales-Kirjenko (2003) argues that foreign exchange interven ...
An estimated two-country EA-US model with limited exchange rate
... forecast errors reveals a non-negligible role for open economy shocks. Foreign demand shocks are significant contributors to short-run unexpected output fluctuations in the euro area, though they are less so in the United States. US domestic shocks (mainly risk premium and monetary policy shocks) ha ...
... forecast errors reveals a non-negligible role for open economy shocks. Foreign demand shocks are significant contributors to short-run unexpected output fluctuations in the euro area, though they are less so in the United States. US domestic shocks (mainly risk premium and monetary policy shocks) ha ...
Debt Sustainability- Medium term Outlook
... Since 2004, low growth & higher interest payments are main factor for debt ...
... Since 2004, low growth & higher interest payments are main factor for debt ...
Macroprudential Policy: What Instruments and How to Use
... Coordination with other policies. The instruments tend to be more effective when used in conjunction with monetary or fiscal policy tools as they can be mutually reinforcing in achieving the same macroprudential objectives. Stand-alone policies tend to be inferior to those that are well coordinated ...
... Coordination with other policies. The instruments tend to be more effective when used in conjunction with monetary or fiscal policy tools as they can be mutually reinforcing in achieving the same macroprudential objectives. Stand-alone policies tend to be inferior to those that are well coordinated ...
NBER WORKING PAPER SERIES VARIETIES OF CURRENCY CRISES Graciela L. Kaminsky
... reversals in capital flows. For example, the debt crisis in 1982, the Mexican crisis in 1994 and the so-called Tequila effect, and the Asian crisis in 1997-1998 show that capital inflows can come to a sudden stop and even can sharply reverse their course and become capital outflows. As emphasized by ...
... reversals in capital flows. For example, the debt crisis in 1982, the Mexican crisis in 1994 and the so-called Tequila effect, and the Asian crisis in 1997-1998 show that capital inflows can come to a sudden stop and even can sharply reverse their course and become capital outflows. As emphasized by ...
Chapter 31 - Patrick Crowley
... Panel (a) shows national saving and domestic investment as a percentage of GDP. You can see from the figure that national saving has been lower since 1980 than it was before 1980. This fall in national saving has been reflected primarily in reduced net capital outflow rather than in reduced domestic ...
... Panel (a) shows national saving and domestic investment as a percentage of GDP. You can see from the figure that national saving has been lower since 1980 than it was before 1980. This fall in national saving has been reflected primarily in reduced net capital outflow rather than in reduced domestic ...
A.1. Reflecting on new developmentalism and classical
... developmentalism? In rich countries it began as absolutist, changed into the liberal state, changed again into liberal democracy as people acquired the right to universal suffrage. A little later, with the pressure of the people for less inequality, it changed again, this time into a social-democrat ...
... developmentalism? In rich countries it began as absolutist, changed into the liberal state, changed again into liberal democracy as people acquired the right to universal suffrage. A little later, with the pressure of the people for less inequality, it changed again, this time into a social-democrat ...
Risk-Premia, Carry-Trade Dynamics, and Economic Value of
... that a range of β-values between approximately -1 and 3 characterizes a trader inaction band, within which β might be statistically different from unity but without economic relevance. Inspired by the concept of limits to speculation, Sarno et al. (2006) investigate the relationship between spot and ...
... that a range of β-values between approximately -1 and 3 characterizes a trader inaction band, within which β might be statistically different from unity but without economic relevance. Inspired by the concept of limits to speculation, Sarno et al. (2006) investigate the relationship between spot and ...
Forecasting Global Commodity Prices Using South
... ultimately plays a part in trade to get the supplies they need. As the world becomes increasingly connected by technology, the international commodities market is also growing in volume and value. Analysts estimate that the value of global physical exports of commodities increased by 17% in the five ...
... ultimately plays a part in trade to get the supplies they need. As the world becomes increasingly connected by technology, the international commodities market is also growing in volume and value. Analysts estimate that the value of global physical exports of commodities increased by 17% in the five ...
Effectiveness of devaluation in achieving Internal and External
... fall of Derg in 1991, Transitional government of Ethiopia took control over the whole economy. The government started to accept the aids and supports the financial institutions, who generally were backed by the western ideology, an ideology which was clearly reflected on SAP. SAP included the previo ...
... fall of Derg in 1991, Transitional government of Ethiopia took control over the whole economy. The government started to accept the aids and supports the financial institutions, who generally were backed by the western ideology, an ideology which was clearly reflected on SAP. SAP included the previo ...
Can Greece be saved? Current Account, fiscal imbalances and competitiveness
... significant deterioration in the country’s current account position in recent years can be attributed to, among others: (i) accumulated loss of economic competitiveness against main trade-partner economies; (ii) pronounced fiscal policy relaxation following the euro adoption; (iii) the completion of ...
... significant deterioration in the country’s current account position in recent years can be attributed to, among others: (i) accumulated loss of economic competitiveness against main trade-partner economies; (ii) pronounced fiscal policy relaxation following the euro adoption; (iii) the completion of ...
del02-stein 221139 en
... controversial. Therefore, our focus is upon the equilibrium/sustainable real exchange rate. The NATREX model is a method of analysis11 that we use to evaluate the effects of enlargement under various scenarios. This is the model used in the studies cited in table 4 below that use the economic concep ...
... controversial. Therefore, our focus is upon the equilibrium/sustainable real exchange rate. The NATREX model is a method of analysis11 that we use to evaluate the effects of enlargement under various scenarios. This is the model used in the studies cited in table 4 below that use the economic concep ...
EXCHANGE RATE AND INFLATION TARGETING IN MOROCCO
... regimes are beginning to emerge as the process of economic and financial liberalization is pursued. A more flexible exchange rate regime combined with a monetary policy focused on inflation targeting could provide a solution to this dilemma. During 2003-2004, the Moroccan government pursued its poli ...
... regimes are beginning to emerge as the process of economic and financial liberalization is pursued. A more flexible exchange rate regime combined with a monetary policy focused on inflation targeting could provide a solution to this dilemma. During 2003-2004, the Moroccan government pursued its poli ...
Risk-Premia, Carry-Trade Dynamics, and Speculative
... pricing theories, and term-structure models have not been able to convincingly solve the puzzle yet. In a recent microstructural approach, Lyons (2001) argues that while the forward bias might be statistically significant, the failure of UIP might not be substantial in economic terms due to limits t ...
... pricing theories, and term-structure models have not been able to convincingly solve the puzzle yet. In a recent microstructural approach, Lyons (2001) argues that while the forward bias might be statistically significant, the failure of UIP might not be substantial in economic terms due to limits t ...
Transmission mechanisms and inflation targeting
... were also diverse. Targets for money supply, the exchange rate and the interbank interest rate were all used, often simultaneously. Even within the crawling band exchange rate regime, there was a system of 'mini' narrower bands. All that began to change gradually as the exchange rate policy became i ...
... were also diverse. Targets for money supply, the exchange rate and the interbank interest rate were all used, often simultaneously. Even within the crawling band exchange rate regime, there was a system of 'mini' narrower bands. All that began to change gradually as the exchange rate policy became i ...
Price Levels and the Exchange Rate in the Long Run
... PPP, which states that the percentage change in the exchange rate between two currencies over any period equals the difference between the percentage changes in national price levels. Relative PPP thus translates absolute PPP from a statement about price and exchange rate levels into one about price ...
... PPP, which states that the percentage change in the exchange rate between two currencies over any period equals the difference between the percentage changes in national price levels. Relative PPP thus translates absolute PPP from a statement about price and exchange rate levels into one about price ...
Expectations of future income and real exchange rate
... Equation (6) implies that ERER could be estimated meaningfully by simply regressing the actual RER on traditional RER fundamentals and zt (a candidate new fundamental), provided that equation (7) holds. The traditional RER fundamentals discussed in the literature are productivity, foreign direct in ...
... Equation (6) implies that ERER could be estimated meaningfully by simply regressing the actual RER on traditional RER fundamentals and zt (a candidate new fundamental), provided that equation (7) holds. The traditional RER fundamentals discussed in the literature are productivity, foreign direct in ...
Exchange Rates and Monetary Policy Uncertainty
... We interpret these findings through the lens of a parsimonious model of exchange rate determination in the spirit of Gabaix and Maggiori (2015), in which constrained financiers with short investment horizons intermediate global demand for currencies. These financiers can actively engage in currency ...
... We interpret these findings through the lens of a parsimonious model of exchange rate determination in the spirit of Gabaix and Maggiori (2015), in which constrained financiers with short investment horizons intermediate global demand for currencies. These financiers can actively engage in currency ...
trento 25/3 1998 - Department of Economics
... of the monetary regime just as the behaviour of the fiscal authorities, that is the government or ministry of finance, determines the performance of the fiscal regime. The monetary and fiscal regime jointly determine the prevailing stabilization policy regime. The monetary and fiscal regime are lin ...
... of the monetary regime just as the behaviour of the fiscal authorities, that is the government or ministry of finance, determines the performance of the fiscal regime. The monetary and fiscal regime jointly determine the prevailing stabilization policy regime. The monetary and fiscal regime are lin ...
The International Diversification Puzzle is Not as Bad as You Think
... Although there has been rapid growth in international portfolio diversification in recent years, portfolios in many countries remain heavily biased towards domestic assets. For example, foreign assets accounted, on average, for only around 25% of the total value of the assets owned by U.S. residents ...
... Although there has been rapid growth in international portfolio diversification in recent years, portfolios in many countries remain heavily biased towards domestic assets. For example, foreign assets accounted, on average, for only around 25% of the total value of the assets owned by U.S. residents ...
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.