On the Renminbi - Harvard Kennedy School
... to do it at time when the balance of payments is strong and the initial movement is likely to be appreciation. The alternative of waiting for a time of balance of payments deficit often turns out to mean exiting the peg under strong downward speculative pressure, with the result that confidence is u ...
... to do it at time when the balance of payments is strong and the initial movement is likely to be appreciation. The alternative of waiting for a time of balance of payments deficit often turns out to mean exiting the peg under strong downward speculative pressure, with the result that confidence is u ...
Fixed versus floating exchange rates and the role of central bank
... the currency was requiring higher interest rates. But at a time when Mexico was in recession suffering high unemployment. (3) There was a lot of political pressure for a devaluation. Mexico had a history of devaluing in election years. Civil unrest at the hard economic conditions culminated in the a ...
... the currency was requiring higher interest rates. But at a time when Mexico was in recession suffering high unemployment. (3) There was a lot of political pressure for a devaluation. Mexico had a history of devaluing in election years. Civil unrest at the hard economic conditions culminated in the a ...
FedViews
... such a renormalization appears to be a considerable period away. A rough benchmark for calibrating the stance of monetary policy explains the level of the funds rate in terms of inflation and unemployment. Currently, this simple rule of thumb, which has captured the broad contours of policy over the ...
... such a renormalization appears to be a considerable period away. A rough benchmark for calibrating the stance of monetary policy explains the level of the funds rate in terms of inflation and unemployment. Currently, this simple rule of thumb, which has captured the broad contours of policy over the ...
Dominican_Republic_en.pdf
... pressure generated by the rise in international hydrocarbon prices, inflation was about two points higher than in 2006 and one percentage point above the target range. Open-market operations were the main instrument of monetary policy. The increase in the central bank’s balance of certificates did n ...
... pressure generated by the rise in international hydrocarbon prices, inflation was about two points higher than in 2006 and one percentage point above the target range. Open-market operations were the main instrument of monetary policy. The increase in the central bank’s balance of certificates did n ...
The International Gold Standard, 1879-1913
... Triffin paradox – world demand for $ requires U.S. to run persistent balance-of-payments deficits that ultimately leads to loss of confidence in the $. SDR was created to relieve the $ shortage. Throughout the 1960s countries with large $ reserves began buying gold from the U.S. in increasing quanti ...
... Triffin paradox – world demand for $ requires U.S. to run persistent balance-of-payments deficits that ultimately leads to loss of confidence in the $. SDR was created to relieve the $ shortage. Throughout the 1960s countries with large $ reserves began buying gold from the U.S. in increasing quanti ...
25_econ_chapter_15
... “Easy” monetary policy: Expansionary: the Fed tries to increase money supply by expanding excess reserves in order to stimulate the economy. The Fed will use a combination of: • buying securities • reducing the reserve ratio (rare) • reducing the discount rate “Tight” monetary policy: Contractionar ...
... “Easy” monetary policy: Expansionary: the Fed tries to increase money supply by expanding excess reserves in order to stimulate the economy. The Fed will use a combination of: • buying securities • reducing the reserve ratio (rare) • reducing the discount rate “Tight” monetary policy: Contractionar ...
The European Currency Crisis (1992
... Germany becomes free to set monetary policy for itself while the other countries have reduced control over monetary policy since they have to hold reserves and intervene when the exchange rate got too close to the edge of the band. It was believed that other Central Banks were not very good at keepi ...
... Germany becomes free to set monetary policy for itself while the other countries have reduced control over monetary policy since they have to hold reserves and intervene when the exchange rate got too close to the edge of the band. It was believed that other Central Banks were not very good at keepi ...
3.E Money in the European Union High School Lesson Plan
... CCSS.MATH.CONTENT.6.RP.A.3.D Use ratio reasoning to convert measurement units; manipulate and transform units appropriately when multiplying or dividing quantities. Materials needed: Euro Coins PowerPoint Currency Exchange Worksheet Why the euro? Via Europa Current exchange rate information, which c ...
... CCSS.MATH.CONTENT.6.RP.A.3.D Use ratio reasoning to convert measurement units; manipulate and transform units appropriately when multiplying or dividing quantities. Materials needed: Euro Coins PowerPoint Currency Exchange Worksheet Why the euro? Via Europa Current exchange rate information, which c ...
Final examination and solution to parts A and B
... and thus can be used to attain an internal (domestic) objective. If used in co-ordination with fiscal policy, two internal objectives, such as a target interest rate and a target real output level, can be attained simultaneously. b. Under a flexible exchange rate system, movements in the exchange ra ...
... and thus can be used to attain an internal (domestic) objective. If used in co-ordination with fiscal policy, two internal objectives, such as a target interest rate and a target real output level, can be attained simultaneously. b. Under a flexible exchange rate system, movements in the exchange ra ...
international assets advisory, llc (“iaa”) “pure” foreign currency
... underlying performance of the company and how, as a result, its price in the local currency market will rise or fall. Futures contracts are marked to market; an investor may need to add funds to his original investment if the currency falls. Early termination of CDs usually results in a penalty. So, ...
... underlying performance of the company and how, as a result, its price in the local currency market will rise or fall. Futures contracts are marked to market; an investor may need to add funds to his original investment if the currency falls. Early termination of CDs usually results in a penalty. So, ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER International Seminar on Macroeconomics 2012
... tradable- goods sector. Assume that this contractionary effect dominates over the initial increase in export demand, so the net effect on the tradable-goods sector is contractionary. Demand for, and the output of, nontradable goods may expand somewhat from the appreciation, but assume that the contr ...
... tradable- goods sector. Assume that this contractionary effect dominates over the initial increase in export demand, so the net effect on the tradable-goods sector is contractionary. Demand for, and the output of, nontradable goods may expand somewhat from the appreciation, but assume that the contr ...
View Point Slide Show Lesson 10-1
... period to the exchange rate. An increase in the exchange rate means that it takes more foreign currency to buy the domestic currency. A decrease in the exchange rate means that it takes less foreign currency to buy the domestic currency. A rise in the exchange rate makes foreign goods relatively che ...
... period to the exchange rate. An increase in the exchange rate means that it takes more foreign currency to buy the domestic currency. A decrease in the exchange rate means that it takes less foreign currency to buy the domestic currency. A rise in the exchange rate makes foreign goods relatively che ...
Answers - University of California, Berkeley
... doing). Piling up reserves in the central bank gives an insurance against balance of payments crisis, but may not be the most profitable investment for the central bank. If the value of the dollar suddenly falls, and the Central Bank of China holds a lot of dollar reserves, its net worth will subseq ...
... doing). Piling up reserves in the central bank gives an insurance against balance of payments crisis, but may not be the most profitable investment for the central bank. If the value of the dollar suddenly falls, and the Central Bank of China holds a lot of dollar reserves, its net worth will subseq ...
Monetary Policy
... If real GDP = potential GDP and inflation is 2% then target federal funds rate is 4% For each 1% increase of real GDP above potential GDP, the Fed should raise the real Federal Funds Rate by ½% For each 1% increase in the inflation rate above the 2% target rate, the Fed should raise the Federal Fund ...
... If real GDP = potential GDP and inflation is 2% then target federal funds rate is 4% For each 1% increase of real GDP above potential GDP, the Fed should raise the real Federal Funds Rate by ½% For each 1% increase in the inflation rate above the 2% target rate, the Fed should raise the Federal Fund ...
... Cooperation and Development (OECD) formally invited Costa Rica to embark on the process of accession. On trade policy, negotiations for a free trade agreement with the Republic of Korea were launched, as part of a government strategy to diversify its trading partners, particularly targeting Asia. In ...
Open-Economy Macroeconomics
... person can trade the currency of one country for the currency of another Appreciation: An increase in the value of a currency as measured by the amount of foreign currency it can buy Depreciation: A decrease in the value of a currency as measured by the amount of foreign currency it can buy ...
... person can trade the currency of one country for the currency of another Appreciation: An increase in the value of a currency as measured by the amount of foreign currency it can buy Depreciation: A decrease in the value of a currency as measured by the amount of foreign currency it can buy ...
Presentation - International Development Economics Associates
... • Whether he was right or wrong, we do not know, but “Quantum funds” with assets of over $100 billion had an opportunity to do it because Malaysian reserves before the crisis were only several dozen billion dollars • The need for the new international financial architecture: the regulatory capacity ...
... • Whether he was right or wrong, we do not know, but “Quantum funds” with assets of over $100 billion had an opportunity to do it because Malaysian reserves before the crisis were only several dozen billion dollars • The need for the new international financial architecture: the regulatory capacity ...
International Economics - Mr. Zittle`s Classroom
... 2. Where are currencies exchanged? 3. If the Euro appreciates relative to the dollar, how will it effect the cost of German goods for someone in the U.S.? 4. What will be the effect of a depreciation of the dollar against the Euro? 5. Why is the U.S. not happy about China holding the value of its cu ...
... 2. Where are currencies exchanged? 3. If the Euro appreciates relative to the dollar, how will it effect the cost of German goods for someone in the U.S.? 4. What will be the effect of a depreciation of the dollar against the Euro? 5. Why is the U.S. not happy about China holding the value of its cu ...
THE COLLAPSE OF THE CURRENCY BOARD Guillermo Rozenwurcel
... tended to fall for the same reason. The result was that access to domestic bank credit became more restricted for the private sector, worsening the contractionary consequences of the external financial shock. The government, in turn, was unable to ease the private sector financial predicament becaus ...
... tended to fall for the same reason. The result was that access to domestic bank credit became more restricted for the private sector, worsening the contractionary consequences of the external financial shock. The government, in turn, was unable to ease the private sector financial predicament becaus ...
2012-288-IM-Chile-COMPLETO
... Economic activity indicators for the first few months of the year show that growth slowed to a yearly pace of about 5%. Unemployment continued to trend down to stand at just above 6%. Twelve-month inflation eased off from the rate seen in the final quarter of 2011 but was still higher than the 2011 ...
... Economic activity indicators for the first few months of the year show that growth slowed to a yearly pace of about 5%. Unemployment continued to trend down to stand at just above 6%. Twelve-month inflation eased off from the rate seen in the final quarter of 2011 but was still higher than the 2011 ...
Balance of Payments & Exchange Rates
... a world where there are only two countries, the United States and Britain, the demand for pounds is comprised of holders of dollars wishing to acquire pounds. The supply of pounds is comprised of holders of pounds seeking to exchange them for dollars. ...
... a world where there are only two countries, the United States and Britain, the demand for pounds is comprised of holders of dollars wishing to acquire pounds. The supply of pounds is comprised of holders of pounds seeking to exchange them for dollars. ...
chapter 2 international monetary system
... Whether the U.K. will join the euro club will be a political as much as economic decision. Recently, the U.K. economy was converging with those of euro-zone countries. Economic conditions in terms of government budgets, interest rates, and inflation rate are becoming similar to those in euro-zone co ...
... Whether the U.K. will join the euro club will be a political as much as economic decision. Recently, the U.K. economy was converging with those of euro-zone countries. Economic conditions in terms of government budgets, interest rates, and inflation rate are becoming similar to those in euro-zone co ...
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.