1. Various shocks on a small open economy
... the savings curve is not vertical, but with finite positive slope). In that case investment and savings expand, and so the rise in r* would not be as large as in the perfectly inelastic case. c. Assume that as a result of the investment subsidies, r* rises to 10%. How is investment in Lilliputia aff ...
... the savings curve is not vertical, but with finite positive slope). In that case investment and savings expand, and so the rise in r* would not be as large as in the perfectly inelastic case. c. Assume that as a result of the investment subsidies, r* rises to 10%. How is investment in Lilliputia aff ...
Country ratings: Initial Considerations
... system to the global financial markets, measured by shortterm liquid external assets over liquid external liabilities Capital/remittances outflow risk: Exposure to a reversal or drying out of volatile capital inflows, measured by dependence on portfolio inflows and remittances ...
... system to the global financial markets, measured by shortterm liquid external assets over liquid external liabilities Capital/remittances outflow risk: Exposure to a reversal or drying out of volatile capital inflows, measured by dependence on portfolio inflows and remittances ...
3. International Trade BOP ER
... • Contractionary Fiscal and Monetary policy are risky policies because they effect demand and will affect domestic employment and economic growth. • A better choice of policy is Supply Side as this will increase the competitiveness of domestic producers and import exports. • Investment in Education ...
... • Contractionary Fiscal and Monetary policy are risky policies because they effect demand and will affect domestic employment and economic growth. • A better choice of policy is Supply Side as this will increase the competitiveness of domestic producers and import exports. • Investment in Education ...
PowerPoint Presentation - McGraw Hill Higher Education
... Explain the role played by accounting in formulating multinational business strategy. Demonstrate an understanding of multinational capital ...
... Explain the role played by accounting in formulating multinational business strategy. Demonstrate an understanding of multinational capital ...
Equilibrium exchange rate and Misalignment in Morocco
... Misalignment in Morocco 1-Motivation and outline The exchange rate policy is amidst the most important macroeconomic decision and dominates the public policy debate today. The recent reforms adopted in MENA countries particularly in Morocco during the period (2000-2011) aiming at opening up its econ ...
... Misalignment in Morocco 1-Motivation and outline The exchange rate policy is amidst the most important macroeconomic decision and dominates the public policy debate today. The recent reforms adopted in MENA countries particularly in Morocco during the period (2000-2011) aiming at opening up its econ ...
refocus
... The total amount of debt, relative to the economy, as measured in the Debt-to-GDP numbers, are at similar levels today (49%) vs 1997 (50.4%). This measure bottomed at 26% during 2008, and has been deteriorating rapidly over the last three years – a development that rightly concerns investors and rat ...
... The total amount of debt, relative to the economy, as measured in the Debt-to-GDP numbers, are at similar levels today (49%) vs 1997 (50.4%). This measure bottomed at 26% during 2008, and has been deteriorating rapidly over the last three years – a development that rightly concerns investors and rat ...
Out-of-Sample Analysis of International Reserves for
... and the terms of trade have significant effects. M2/GDP is positively associated with the reserves to GDP, which indicates that financial stability motives may drive reserves hoarding. In addition, we find that a dummy variable for currency crises (another proxy for precautionary motives) is signifi ...
... and the terms of trade have significant effects. M2/GDP is positively associated with the reserves to GDP, which indicates that financial stability motives may drive reserves hoarding. In addition, we find that a dummy variable for currency crises (another proxy for precautionary motives) is signifi ...
View/Open
... may have less incentive to cut costs and become more efficient. Therefore over time, costs may increase. With exports more competitive and imports more expensive, we should see higher exports and lower imports, which will reduce the current account deficit. If demand is price inelastic, the fall in ...
... may have less incentive to cut costs and become more efficient. Therefore over time, costs may increase. With exports more competitive and imports more expensive, we should see higher exports and lower imports, which will reduce the current account deficit. If demand is price inelastic, the fall in ...
Slide_8-2
... expensive but will lower the price of its exports in overseas markets A rise (appreciation) in the exchange rate of a currency will make imports to that country cheaper but will increase the price of its exports in overseas markets, for example: ...
... expensive but will lower the price of its exports in overseas markets A rise (appreciation) in the exchange rate of a currency will make imports to that country cheaper but will increase the price of its exports in overseas markets, for example: ...
Treatment of Resident-to-Resident Transactions in Foreign Securities
... The BOP data collection system in some countries is focused exclusively on residentnonresident transactions, and, thus the information on any transactions between two residents is not available. In some countries the compilers wishing to follow debtor/creditor approach as close as possible experienc ...
... The BOP data collection system in some countries is focused exclusively on residentnonresident transactions, and, thus the information on any transactions between two residents is not available. In some countries the compilers wishing to follow debtor/creditor approach as close as possible experienc ...
pierre_yared - Academic Commons
... • Headline inflation: aggregates all prices • Core inflation: Excludes food and energy and is less volatile • What determines long run inflation? Money growth • Also applies to hyperinflation at shorter frequencies • Why do governments allow hyperinflation?: Seignorage • Inflation is a form of indir ...
... • Headline inflation: aggregates all prices • Core inflation: Excludes food and energy and is less volatile • What determines long run inflation? Money growth • Also applies to hyperinflation at shorter frequencies • Why do governments allow hyperinflation?: Seignorage • Inflation is a form of indir ...
CENTRAL BANK OF THE REPUBLIC OF TURKEY Global Structure, National Orientation:
... A number of countries that pegged their currencies to the US dollar accumulated very substantial official reserves. The investment of these in US Treasury paper contributed to lower long-term interest rates. Low interest rates triggered a search for yield which, by squeezing risk premiums, tended to ...
... A number of countries that pegged their currencies to the US dollar accumulated very substantial official reserves. The investment of these in US Treasury paper contributed to lower long-term interest rates. Low interest rates triggered a search for yield which, by squeezing risk premiums, tended to ...
Distortions in Macroeconomic Framework and Exit Strategies
... after the Lehman’s Collapse 7.Major international reserve currencies including dollar and the euro have shown a large scale decline in external values. - Large fluctuation of major reserve currencies took place against the background of the tectonic shift of relative economic power to Asia and finan ...
... after the Lehman’s Collapse 7.Major international reserve currencies including dollar and the euro have shown a large scale decline in external values. - Large fluctuation of major reserve currencies took place against the background of the tectonic shift of relative economic power to Asia and finan ...
A Puzzle in Portuguese
... These materials represent the views, opinions and recommendations of the author(s) regarding the economic conditions, asset classes, securities, issuers or financial instruments referenced herein. References to specific investments are for illustrative purposes only and are not intended and should n ...
... These materials represent the views, opinions and recommendations of the author(s) regarding the economic conditions, asset classes, securities, issuers or financial instruments referenced herein. References to specific investments are for illustrative purposes only and are not intended and should n ...
hedging through invoice currency
... plant in European country using term fixed rate financing. Suppose further that XYZ, having little access to the european capital markets, concludes that borrowing US Dollars from a domestic bank offers the most cost-effective source of financing. ...
... plant in European country using term fixed rate financing. Suppose further that XYZ, having little access to the european capital markets, concludes that borrowing US Dollars from a domestic bank offers the most cost-effective source of financing. ...
Document
... people no longer believe a country can maintain a fixed exchange rate above the equilibrium rate: –the supply of the currency increases, –demand for it decreases, and –the country must use up its reserves of dollars and other key currencies even faster in order to maintain the fixed rate. ...
... people no longer believe a country can maintain a fixed exchange rate above the equilibrium rate: –the supply of the currency increases, –demand for it decreases, and –the country must use up its reserves of dollars and other key currencies even faster in order to maintain the fixed rate. ...
In this paper we wil first the large increase of foreign exchange
... efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run massive current account surpluses, the main counterpart of which is, at the world level, the US deficit. According to this point of view, the economic benefits of ...
... efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run massive current account surpluses, the main counterpart of which is, at the world level, the US deficit. According to this point of view, the economic benefits of ...
Diagnostic Tables - Description
... currency converted to the numéraire currency with the PPPs. PPP-Ratio: Standardized price ratios based on the PPP converted prices. The PPP-Prices expressed as a percentage of their geometric mean. ...
... currency converted to the numéraire currency with the PPPs. PPP-Ratio: Standardized price ratios based on the PPP converted prices. The PPP-Prices expressed as a percentage of their geometric mean. ...
real interest rate
... • excessive domestic credit-growth • deterioration in international competitiveness, • increasing foreign indebtedness ...
... • excessive domestic credit-growth • deterioration in international competitiveness, • increasing foreign indebtedness ...
Lecture 12
... Mexico? It is worse off because trade diversion losses exceed trade creation gains. The United States can also import gloves from China at $4 per pair and from Mexico at $5 per pair. Currently, the United States imposes a specific tariff of $2 on its glove imports. Suppose instead that the United St ...
... Mexico? It is worse off because trade diversion losses exceed trade creation gains. The United States can also import gloves from China at $4 per pair and from Mexico at $5 per pair. Currently, the United States imposes a specific tariff of $2 on its glove imports. Suppose instead that the United St ...
It`s Not About Liquidity - University of Colorado Boulder
... – Inflation targeting adopted in 1997 through an amendment to original treaty of Rome. – Inflation target: “Below, but close to, 2% over the medium term.” – Current CPI inflation (June – Aug): 3.9% – ECB meets their inflation target through setting an “appropriate level of the key interest rates.” ...
... – Inflation targeting adopted in 1997 through an amendment to original treaty of Rome. – Inflation target: “Below, but close to, 2% over the medium term.” – Current CPI inflation (June – Aug): 3.9% – ECB meets their inflation target through setting an “appropriate level of the key interest rates.” ...
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.