Using Monetary Policy to Stabilize Economic Activity
... Because movements in output gaps and cost shocks reflect transitory fluctuations, the unconditional expectation of the output gap is zero. Equation (2) then implies that E(pt–pT) = bE(pt +1-pT), where E denotes the unconditional expectations operator. Ruling out explosive paths for inflation, this c ...
... Because movements in output gaps and cost shocks reflect transitory fluctuations, the unconditional expectation of the output gap is zero. Equation (2) then implies that E(pt–pT) = bE(pt +1-pT), where E denotes the unconditional expectations operator. Ruling out explosive paths for inflation, this c ...
NBER WORKING PAPER SERIES INTERNATIONAL TRADE AND MACROECONOMIC DYNAMICS WITH HETEROGENEOUS FIRMS
... Formal models of international macroeconomic dynamics do not usually address or incorporate the determinants and evolution of trade patterns. The vast majority of such macroeconomic models take the pattern of international trade and the structure of markets for goods and factors of production as giv ...
... Formal models of international macroeconomic dynamics do not usually address or incorporate the determinants and evolution of trade patterns. The vast majority of such macroeconomic models take the pattern of international trade and the structure of markets for goods and factors of production as giv ...
THE PROPOSED ECO: SHOULD WEST AFRICA
... guarantee of convertibility of WAEMU’s currency (the CFA franc) to the euro at a fixed parity would continue for a monetary union of the expected size. Second, with politically dependent central banks, there is an incentive for monetary policy to be used to extract seigniorage which creates distorti ...
... guarantee of convertibility of WAEMU’s currency (the CFA franc) to the euro at a fixed parity would continue for a monetary union of the expected size. Second, with politically dependent central banks, there is an incentive for monetary policy to be used to extract seigniorage which creates distorti ...
Unit V - KV Institute of Management and Information Studies
... 1983, with th objective of expanding employment opportunities for the rural landless, i.e., to provide guarantee to atleast one member of the landless household for about 100 days in a year. 7)Integrated Rural Development Programme (IRDP): It was launched in 1978-79 and extended all over the country ...
... 1983, with th objective of expanding employment opportunities for the rural landless, i.e., to provide guarantee to atleast one member of the landless household for about 100 days in a year. 7)Integrated Rural Development Programme (IRDP): It was launched in 1978-79 and extended all over the country ...
Natural Disasters: Mitigating Impact, Managing Risks
... cannot be prevented, the policy response will have an important impact on the speed of recovery. Moreover, the literature suggests that much can also be done ex ante to reduce the human suffering and economic costs of the impact of natural disasters. These include relocating communities from disaste ...
... cannot be prevented, the policy response will have an important impact on the speed of recovery. Moreover, the literature suggests that much can also be done ex ante to reduce the human suffering and economic costs of the impact of natural disasters. These include relocating communities from disaste ...
CATO HANDBOOK CONGRESS FOR
... Niskanen put the U.S. relationship with the IMF more accurately: ‘‘U.S. government membership in the IMF is like being a limited partner in a financial firm that makes high-risk loans, pays dividends at a rate lower than that on Treasury bills, and makes large periodic cash calls for additional fund ...
... Niskanen put the U.S. relationship with the IMF more accurately: ‘‘U.S. government membership in the IMF is like being a limited partner in a financial firm that makes high-risk loans, pays dividends at a rate lower than that on Treasury bills, and makes large periodic cash calls for additional fund ...
US-Europe Economic Interdependence and Policy
... This is an important element of value added relative to extensions of the traditional framework used by Canzoneri and Henderson (1991) and others to explore the issue of transatlantic policy interactions. The fully intertemporal nature of the model makes it possible to account for effects of policy ...
... This is an important element of value added relative to extensions of the traditional framework used by Canzoneri and Henderson (1991) and others to explore the issue of transatlantic policy interactions. The fully intertemporal nature of the model makes it possible to account for effects of policy ...
Cost Push Shocks and Monetary Policies in Open
... demand shocks.6 The paper focuses on the choice of a world monetary regime and the implications for world aggregate welfare.7 It is shown that (as in Benigno and Benigno (2001b)) the optimal coordinated policy can be supported by independent national monetary authorities following a policy of ‡exib ...
... demand shocks.6 The paper focuses on the choice of a world monetary regime and the implications for world aggregate welfare.7 It is shown that (as in Benigno and Benigno (2001b)) the optimal coordinated policy can be supported by independent national monetary authorities following a policy of ‡exib ...
How does monetary policy respond to exchange rate movements
... macroeconomic variables that are observed to respond with delay (output, inflation etc.) to economic shocks. Identified in this way, we believe the VAR approach is likely to give very useful information about monetary policy and exchange rate dynamics in the open economy, that previous studies have ...
... macroeconomic variables that are observed to respond with delay (output, inflation etc.) to economic shocks. Identified in this way, we believe the VAR approach is likely to give very useful information about monetary policy and exchange rate dynamics in the open economy, that previous studies have ...
Chapters 31
... importance of international trade and finance. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classro ...
... importance of international trade and finance. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classro ...
The Implications of Macroprudential Policies for International Policy
... explicitly involve distributional decisions, and inflation control usually does not require ongoing coordination with other domestic policies. The political-economy attractions of independence/delegation have come under strain as advanced economies have entered a period of high public debt, slower g ...
... explicitly involve distributional decisions, and inflation control usually does not require ongoing coordination with other domestic policies. The political-economy attractions of independence/delegation have come under strain as advanced economies have entered a period of high public debt, slower g ...
The Federal Reserve Engages the World
... associated concerns about the US external accounts. Gyrations in exchange rates and exchange rate arrangements were poorly understood and analyzed. Increases in energy prices along with mistakes in macroeconomic policies contributed to global recession, rising inflation, and external financial crise ...
... associated concerns about the US external accounts. Gyrations in exchange rates and exchange rate arrangements were poorly understood and analyzed. Increases in energy prices along with mistakes in macroeconomic policies contributed to global recession, rising inflation, and external financial crise ...
Has the Riksbank Been Reacting to Asset Prices?
... measure known as KPIX drew special attention given that it removed effects of interest rate changes on subsidies, mortgage payments and indirect taxes, which may have inflationary or deflationary consequences directly associated with monetary policy adjustments. In the late 2000s KPIX was phased out ...
... measure known as KPIX drew special attention given that it removed effects of interest rate changes on subsidies, mortgage payments and indirect taxes, which may have inflationary or deflationary consequences directly associated with monetary policy adjustments. In the late 2000s KPIX was phased out ...
IMF World Economic Outlook, May 1998-
... In 55 of the currency crises, the exchange rate component of the index accounted for more than 75 percent of its overall value. These episodes were denoted currency “crashes.” The foreign reserves component accounted for 75 percent of the overall index in another 55 instances. Cases in which more th ...
... In 55 of the currency crises, the exchange rate component of the index accounted for more than 75 percent of its overall value. These episodes were denoted currency “crashes.” The foreign reserves component accounted for 75 percent of the overall index in another 55 instances. Cases in which more th ...
Time-Varying Risk, Interest Rates, and Exchange Rates
... markets are less segmented; thus, the volatility of the risk premia should be smaller. The model thus predicts that countries with high enough inflation should not have a forward premium anomaly. This prediction is supported by Bansal and Dahlquist (2000), who study the forward premium in both devel ...
... markets are less segmented; thus, the volatility of the risk premia should be smaller. The model thus predicts that countries with high enough inflation should not have a forward premium anomaly. This prediction is supported by Bansal and Dahlquist (2000), who study the forward premium in both devel ...
Uncleared margin rules: Currency investors brace for change
... Currency investors brace for change The currency market is one of the largest and most liquid financial market with an average daily volume of $5.1 trillion.1 Participants in this market include corporations, pension funds, financial institutions, central banks and many others. Historically, most pe ...
... Currency investors brace for change The currency market is one of the largest and most liquid financial market with an average daily volume of $5.1 trillion.1 Participants in this market include corporations, pension funds, financial institutions, central banks and many others. Historically, most pe ...
RECENT INFLATION TRENDS
... economy. Therefore, the ultimate effect of higher oil prices would depend on how monetary policy reacts, influencing the position of the demand curve. If monetary policy eases, in a bid to support output at Q1, increasing money supply (or cutting interest rates), the economy risks ending up with muc ...
... economy. Therefore, the ultimate effect of higher oil prices would depend on how monetary policy reacts, influencing the position of the demand curve. If monetary policy eases, in a bid to support output at Q1, increasing money supply (or cutting interest rates), the economy risks ending up with muc ...
ABSTRACT Title of Document:
... the fiscal authorities, flexible regimes provide tighter fiscal discipline than fixed regimes by forcing the costs to be paid up-front. We argue that capital controls induce even looser fiscal policies than fixed regimes while the stabilization plan lasts. This occurs because capital controls enable ...
... the fiscal authorities, flexible regimes provide tighter fiscal discipline than fixed regimes by forcing the costs to be paid up-front. We argue that capital controls induce even looser fiscal policies than fixed regimes while the stabilization plan lasts. This occurs because capital controls enable ...
Regional Monetary Cooperation and Growth
... An important step to be taken at the beginning of the cooperation process would be to agree on the approach the region should take in terms of monetary and fiscal policies and the role of labour market institutions. Exchange rate shocks and persistent overvaluation of the currencies of developing co ...
... An important step to be taken at the beginning of the cooperation process would be to agree on the approach the region should take in terms of monetary and fiscal policies and the role of labour market institutions. Exchange rate shocks and persistent overvaluation of the currencies of developing co ...
Real Exchange Rate Undervaluation: Static Losses, Dynamic Gains
... ment in the economy is to subsidize the accumulation of capital. Such a policy may not be implementable in most contexts, due to budgetary and targeting issues, or distributional concerns. Furthermore, our model of capital includes intangible forms of capital, which may make it even less feasible t ...
... ment in the economy is to subsidize the accumulation of capital. Such a policy may not be implementable in most contexts, due to budgetary and targeting issues, or distributional concerns. Furthermore, our model of capital includes intangible forms of capital, which may make it even less feasible t ...
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.