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Chinese Foreign Exchange Reserves, Policy Choices and the U.S.
... buys agricultural output to support food prices or as the Federal Reserve does when it buys and sells securities to affect interest rates. Second, governments can regulate the price or quantity that may be sold, as governments do with minimum wages or the auto import quotas of the 1980s. Governments ...
... buys agricultural output to support food prices or as the Federal Reserve does when it buys and sells securities to affect interest rates. Second, governments can regulate the price or quantity that may be sold, as governments do with minimum wages or the auto import quotas of the 1980s. Governments ...
Management of Capital Flows in India: 1990-2011
... Asymmetric intervention, unless sterilized, often leads to a sharp increase in reserve money and fuels inflationary pressure. We evaluate the magnitude of sterilization, using empirical tools. We find that between 1998 and 2004, most of the concomitant rise in international reserves was offset by co ...
... Asymmetric intervention, unless sterilized, often leads to a sharp increase in reserve money and fuels inflationary pressure. We evaluate the magnitude of sterilization, using empirical tools. We find that between 1998 and 2004, most of the concomitant rise in international reserves was offset by co ...
ECON 8423-001 International Finance
... In each of these contexts we want to understand the gains from trade on international financial markets and the consequences of such trades for macroeconomic issues. For example, we want to know how a country's access to IFM is likely to affect the welfare of its citizens and how it may influence pr ...
... In each of these contexts we want to understand the gains from trade on international financial markets and the consequences of such trades for macroeconomic issues. For example, we want to know how a country's access to IFM is likely to affect the welfare of its citizens and how it may influence pr ...
14.02 Principles of Macroeconomics
... 1. Derive the condition on i, i* and E that must hold for the US investor to be indifferent between buying US bonds or Eurobonds (this is exactly the uncovered interest parity we saw in class with zero expected depreciation). Now assume that in order to buy €’s with $’s, the investor must pay a prop ...
... 1. Derive the condition on i, i* and E that must hold for the US investor to be indifferent between buying US bonds or Eurobonds (this is exactly the uncovered interest parity we saw in class with zero expected depreciation). Now assume that in order to buy €’s with $’s, the investor must pay a prop ...
S01070561_en.pdf
... control the inflation rate, in many cases this type of regime has also been used in an effort to induce or promote changes in the behaviour of economic agents. In particular, when implemented at the same time as a process of trade liberalization, one of the economic authorities’ objectives has been ...
... control the inflation rate, in many cases this type of regime has also been used in an effort to induce or promote changes in the behaviour of economic agents. In particular, when implemented at the same time as a process of trade liberalization, one of the economic authorities’ objectives has been ...
Test 2 - Department of Economics
... Bank of Canada selling foreign currency). At the same time, the balance in the current account will deteriorate (as a result of the decrease in exports) while the balance in the capital account will improve (as a result of the decrease of the money supply and the increase in the domestic rate of int ...
... Bank of Canada selling foreign currency). At the same time, the balance in the current account will deteriorate (as a result of the decrease in exports) while the balance in the capital account will improve (as a result of the decrease of the money supply and the increase in the domestic rate of int ...
Slide - Department of Economics Sciences Po
... § Maintaining Internal Balance • Both P* and E are fixed. • Internal balance: Yf = C(Yf – T) + I + G + NX(EP*/P, Yd ,Yd*) – Policy tools that affect aggregate demand in the short run: fiscal policy (T, G), devaluation/revaluation E – If E depreciates, can run smaller budget deficit (small G) ...
... § Maintaining Internal Balance • Both P* and E are fixed. • Internal balance: Yf = C(Yf – T) + I + G + NX(EP*/P, Yd ,Yd*) – Policy tools that affect aggregate demand in the short run: fiscal policy (T, G), devaluation/revaluation E – If E depreciates, can run smaller budget deficit (small G) ...
Document
... 2. Interest rate arbitrage: taking advantage of interest rate differentials between countries; arbitrageurs buy money where interest rates are low and sell it where interest rates are high 3. Speculation: buying and selling of currency in anticipation of changes in the currency’s exchange rate; spec ...
... 2. Interest rate arbitrage: taking advantage of interest rate differentials between countries; arbitrageurs buy money where interest rates are low and sell it where interest rates are high 3. Speculation: buying and selling of currency in anticipation of changes in the currency’s exchange rate; spec ...
Mr. Dominique Desruelle, Advisor, Strategy and Policy Review
... Debt indicators are projected to continue improving but less than before ...
... Debt indicators are projected to continue improving but less than before ...
The Dominican Republic
... have 100 percent gross reserve coverage, unless it were to obtain a foreign loan.20 That would not preclude the establishment of a Dominican currency board, however. A successful currency board could be established if increases in its monetary liabilities were required to be fully backed by foreign ...
... have 100 percent gross reserve coverage, unless it were to obtain a foreign loan.20 That would not preclude the establishment of a Dominican currency board, however. A successful currency board could be established if increases in its monetary liabilities were required to be fully backed by foreign ...
Internal vs external devaluation
... Internal and external devaluations are not equivalent Internal devaluation: a limited adjustment Within a monetary union or a currency board, bilateral adjustment can no longer be carried out through exchangerate depreciation: direct action on prices is needed. Internal devaluation processes aim ...
... Internal and external devaluations are not equivalent Internal devaluation: a limited adjustment Within a monetary union or a currency board, bilateral adjustment can no longer be carried out through exchangerate depreciation: direct action on prices is needed. Internal devaluation processes aim ...
Official (foreign) reserve assets - YSU
... – A negative official settlements balance may indicate that a country • is depleting its official foreign reserve assets or • may be incurring large debts to foreign central banks so that the domestic central bank can spend a lot to protect against financial instability. ...
... – A negative official settlements balance may indicate that a country • is depleting its official foreign reserve assets or • may be incurring large debts to foreign central banks so that the domestic central bank can spend a lot to protect against financial instability. ...
Document
... Raising government funds to finance wars. Holding unused funds on deposit at a single central bank office or in regional branch offices of central banks. Operating as a fiscal agent for national governments by issuing, servicing, and redeeming government ...
... Raising government funds to finance wars. Holding unused funds on deposit at a single central bank office or in regional branch offices of central banks. Operating as a fiscal agent for national governments by issuing, servicing, and redeeming government ...
Making Financial Markets Work for Development Financial Markets, Crisis and Development
... 1. The effects of the financial crisis on developing countries The financial crisis, which began as the Subprime Crisis in the US and then subsequently developed into an international banking and credit crisis and reaching its climax with the crash at Wall Street, is the most severe disruption of t ...
... 1. The effects of the financial crisis on developing countries The financial crisis, which began as the Subprime Crisis in the US and then subsequently developed into an international banking and credit crisis and reaching its climax with the crash at Wall Street, is the most severe disruption of t ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Regarding deficit countries, the Articles of Agreement said only that the Fund’s resources were available to members under adequate safeguards to enable them to correct maladjustments in the balance of payments without resorting to deflation, which would be destructive of national prosperity, or res ...
... Regarding deficit countries, the Articles of Agreement said only that the Fund’s resources were available to members under adequate safeguards to enable them to correct maladjustments in the balance of payments without resorting to deflation, which would be destructive of national prosperity, or res ...
Macro Exam Summer 2005
... • So if there is a current account deficit there must be a cap account surplus (inflow) • This must be the case because there is a free market in currency so flows. So if curr+cap <0 for an instant there would be excess demand for foreign currency ($) and excess supply of domestic currency (€) • Bas ...
... • So if there is a current account deficit there must be a cap account surplus (inflow) • This must be the case because there is a free market in currency so flows. So if curr+cap <0 for an instant there would be excess demand for foreign currency ($) and excess supply of domestic currency (€) • Bas ...
liquidity trap - Princeton University Press
... base leads to more than one-unit change in money supply—the ratio between the two is referred as the money multiplier and is usually greater than one. The reason for this relationship is that banks do not have any incentives to hold reserves, which typically do not earn interest, beyond the legal re ...
... base leads to more than one-unit change in money supply—the ratio between the two is referred as the money multiplier and is usually greater than one. The reason for this relationship is that banks do not have any incentives to hold reserves, which typically do not earn interest, beyond the legal re ...
Determination of the optimal value (X) of a decision variable within
... It is not easy for decision makers to determine the optimal value of a currency. Even the exchange markets tend to overrate or underrate a currency. Only in theory markets are presumed to determine the value of a currency close to its optimal value. There is thus no objective way to know whether yua ...
... It is not easy for decision makers to determine the optimal value of a currency. Even the exchange markets tend to overrate or underrate a currency. Only in theory markets are presumed to determine the value of a currency close to its optimal value. There is thus no objective way to know whether yua ...
Optimal Exchange Rate Beyond Purchase Power Parity
... (testable outcomes like) wealth disparity and hence social instability. The optimal exchange value of a currency should thus be determined by balancing growth in jobs with rising social and banking instability. This paper is not about whether the government or the market should determine the exchang ...
... (testable outcomes like) wealth disparity and hence social instability. The optimal exchange value of a currency should thus be determined by balancing growth in jobs with rising social and banking instability. This paper is not about whether the government or the market should determine the exchang ...
Summary of my Research
... model them jointly. Moreover, our focus on sectoral asymmetries leads us to provide a new account of the self-feeding dynamics of BBCs. When we wrote this paper in the early 2000s, bailout guarantees seemed a theoretical curiosity and borrowing constraints were not part of mainstream macro models. I ...
... model them jointly. Moreover, our focus on sectoral asymmetries leads us to provide a new account of the self-feeding dynamics of BBCs. When we wrote this paper in the early 2000s, bailout guarantees seemed a theoretical curiosity and borrowing constraints were not part of mainstream macro models. I ...
open economy 開放的經濟體系
... how much a country exports and imports. (real exchange rate = terms of trade 貿易條件) • A depreciation (fall) in Taiwan real exchange rate: 貶值 (P/ePF) ↓ ,due to P ↓or PF↑ or e↑ Taiwan goods have become cheaper relative to foreign goods. IM ↓ and EX ↑ NX ↑ Copyright © 2004 South-Western ...
... how much a country exports and imports. (real exchange rate = terms of trade 貿易條件) • A depreciation (fall) in Taiwan real exchange rate: 貶值 (P/ePF) ↓ ,due to P ↓or PF↑ or e↑ Taiwan goods have become cheaper relative to foreign goods. IM ↓ and EX ↑ NX ↑ Copyright © 2004 South-Western ...
Due Date: Thursday, September 8th (at the beginning of class)
... arrested for counterfeiting because Mr. Rich claims he “makes a lot of money.” a) Explain why the macroeconomist is making this threat based on the macroeconomic definition of money. Be sure to explain the macroeconomic functions of money. Money consists of the assets used to make transactions. Mone ...
... arrested for counterfeiting because Mr. Rich claims he “makes a lot of money.” a) Explain why the macroeconomist is making this threat based on the macroeconomic definition of money. Be sure to explain the macroeconomic functions of money. Money consists of the assets used to make transactions. Mone ...
Working With Our Basic Aggregate Demand / Supply Model
... discourages banks from borrowing from the Federal Reserve to extend new loans. • A reduction in the discount rate increases the money supply (expansionary) because it makes borrowing from the Federal Reserve less costly. ...
... discourages banks from borrowing from the Federal Reserve to extend new loans. • A reduction in the discount rate increases the money supply (expansionary) because it makes borrowing from the Federal Reserve less costly. ...
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.