The US Capital Account Surplus
... opportunities in the global financial system. In any given period, countries can be classified as net capital exporters or net capital importers. Net capital exporters have supplies of domestic saving (which includes households, firms, and the government) that exceed domestic investment opportunitie ...
... opportunities in the global financial system. In any given period, countries can be classified as net capital exporters or net capital importers. Net capital exporters have supplies of domestic saving (which includes households, firms, and the government) that exceed domestic investment opportunitie ...
The Central Bank of Turkey (CBT) adopted a formal inflation-targeting... the beginning of 2006. Accordingly, the end-year inflation target for... Ankara, January 22, 2007
... inflation declined to 13 percent by the end of December from its peak of 21 percent on June, it still remains at high levels. Consequently, year-end inflation turned out to be significantly higher than the 5 percent end-year target. A close look at the last couple of years’ annual inflation in certa ...
... inflation declined to 13 percent by the end of December from its peak of 21 percent on June, it still remains at high levels. Consequently, year-end inflation turned out to be significantly higher than the 5 percent end-year target. A close look at the last couple of years’ annual inflation in certa ...
Krugman -Obstfeld-ch14
... • The exchange rate is said to overshoot when its immediate response to a disturbance is greater than its long-run response. • It helps explain why exchange rates move so sharply form day to day. • It is a direct result of sluggish short-run price level adjustment and the interest parity condition. ...
... • The exchange rate is said to overshoot when its immediate response to a disturbance is greater than its long-run response. • It helps explain why exchange rates move so sharply form day to day. • It is a direct result of sluggish short-run price level adjustment and the interest parity condition. ...
Thesis: “A TIME SERIES ANALYSIS OF THE ZAR/USD EXCHANGE
... the need to thank all those who contributed in many ways to the success of this study making it feasible. This thesis would not have been possible without the help, continuous support and patience of my supervisor, Prof. Costas Karfakis. I warmly thank him for the inspiring teaching as well as for s ...
... the need to thank all those who contributed in many ways to the success of this study making it feasible. This thesis would not have been possible without the help, continuous support and patience of my supervisor, Prof. Costas Karfakis. I warmly thank him for the inspiring teaching as well as for s ...
Distribution and Cost-Push inflation in Brazil under inflation targeting
... the prices of a number of government monitored private utility and service (which are partially indexed to tradable prices) and thus tend to lower cost inflation in the economy. Therefore in Brazil, not only inflation is not caused by excessive growth of aggregate demand, but also the only effectiv ...
... the prices of a number of government monitored private utility and service (which are partially indexed to tradable prices) and thus tend to lower cost inflation in the economy. Therefore in Brazil, not only inflation is not caused by excessive growth of aggregate demand, but also the only effectiv ...
The Relationship between Exchange Rates and International Trade
... After a period of thirty years of relative stability of both nominal and real exchange rates under the Bretton-Woods system, increased volatility of exchange rates from the early 1970's triggered a rich and lively debate on the channels through which such increased volatility could affect the real ...
... After a period of thirty years of relative stability of both nominal and real exchange rates under the Bretton-Woods system, increased volatility of exchange rates from the early 1970's triggered a rich and lively debate on the channels through which such increased volatility could affect the real ...
The Relationship between Exchange Rates and International Trade
... After a period of thirty years of relative stability of both nominal and real exchange rates under the Bretton-Woods system, increased volatility of exchange rates from the early 1970's triggered a rich and lively debate on the channels through which such increased volatility could affect the real ...
... After a period of thirty years of relative stability of both nominal and real exchange rates under the Bretton-Woods system, increased volatility of exchange rates from the early 1970's triggered a rich and lively debate on the channels through which such increased volatility could affect the real ...
The Monetary Policy of the European Central Bank (2002
... The Treaty of Maastricht instituted the euro as the currency of the Economic and Monetary Union (Article 3.4 Treaty on European Union), the single monetary policy for participating countries (the eurozone) and the eurozone monetary authority – comprising the National Central Banks (NCBs) of the Euro ...
... The Treaty of Maastricht instituted the euro as the currency of the Economic and Monetary Union (Article 3.4 Treaty on European Union), the single monetary policy for participating countries (the eurozone) and the eurozone monetary authority – comprising the National Central Banks (NCBs) of the Euro ...
NEER WORKING PAPER SERIES INTERNATI)NAL COORDINATION OF ECONOMIC POLICIES: METHODS, AND EFFECTS
... exercise. Section II narrows the discussion to monetary and fiscal and ...
... exercise. Section II narrows the discussion to monetary and fiscal and ...
How do exchange rate movements affect Chinese exports? – A firm
... depreciation by increasing more in markups and by increasing less in export volumes. Thus heterogeneity in firms’ pricing-to-market behavior may explain partially the moderate impact of exchange rate changes on aggregate exports. Amiti, Itskhoki, and Konings (2012, hereafter AIK), drawing on a large ...
... depreciation by increasing more in markups and by increasing less in export volumes. Thus heterogeneity in firms’ pricing-to-market behavior may explain partially the moderate impact of exchange rate changes on aggregate exports. Amiti, Itskhoki, and Konings (2012, hereafter AIK), drawing on a large ...
"Exchange Rate Disconnect in General Equilibrium"
... of law of one price violations and pricing to market (Atkeson and Burstein 2008). In addition, the real exchange rate dynamics at most horizons is almost fully accounted for by the law of one price violations for tradable goods, and the relative non-tradable prices explain almost no variation in the ...
... of law of one price violations and pricing to market (Atkeson and Burstein 2008). In addition, the real exchange rate dynamics at most horizons is almost fully accounted for by the law of one price violations for tradable goods, and the relative non-tradable prices explain almost no variation in the ...
SDS-FPS: A small demand-side version of the David Hargreaves December 1999
... The specification allows the dynamic evolution of the output gap to be influenced by monetary policy (through the interest and exchange rate channels), the foreign sector (via foreign demand and the prices of traded goods) and by exogenous disturbances to domestic demand. This captures many of the d ...
... The specification allows the dynamic evolution of the output gap to be influenced by monetary policy (through the interest and exchange rate channels), the foreign sector (via foreign demand and the prices of traded goods) and by exogenous disturbances to domestic demand. This captures many of the d ...
Financial shocks and macroeconomic policies during the Argentine
... abandoned its exchange rate peg while Argentina and Uruguay opted for maintaining their stabilisation plans. A long lasting recession started in Argentina and Uruguay, that nally led to an important economic crisis and to problems with the management of public debt. In a companion paper, Mourelle ( ...
... abandoned its exchange rate peg while Argentina and Uruguay opted for maintaining their stabilisation plans. A long lasting recession started in Argentina and Uruguay, that nally led to an important economic crisis and to problems with the management of public debt. In a companion paper, Mourelle ( ...
Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary
... the cycle, downward nominal wage rigidity and a fixed exchange rate prevent real wages from falling to the level consistent with full employment. Agents understand this mechanism but are too small to internalize the fact that their individual expenditure decisions collectively cause inefficiently larg ...
... the cycle, downward nominal wage rigidity and a fixed exchange rate prevent real wages from falling to the level consistent with full employment. Agents understand this mechanism but are too small to internalize the fact that their individual expenditure decisions collectively cause inefficiently larg ...
Exchange rate anomalies in the industrial countries: A solution with
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
Macroeconomics Chamberlin and Yueh
... • Suppose, though, that all the countries in the world unleashed an equal fiscal expansion. The following figure represents the outcome for each country if they all expand simultaneously. • As output has increased in every country, all will experience a rise in exports as well as the initial expansi ...
... • Suppose, though, that all the countries in the world unleashed an equal fiscal expansion. The following figure represents the outcome for each country if they all expand simultaneously. • As output has increased in every country, all will experience a rise in exports as well as the initial expansi ...
What Determines Government Spending Multipliers?
... transmission. In a first step, we estimate a fiscal policy rule that is meant to describe the statistical process of government spending and provide estimates of spending shocks. The rule we consider is very similar to the structure embedded in fiscal policy vector autoregressions (VARs), linking ou ...
... transmission. In a first step, we estimate a fiscal policy rule that is meant to describe the statistical process of government spending and provide estimates of spending shocks. The rule we consider is very similar to the structure embedded in fiscal policy vector autoregressions (VARs), linking ou ...
mmi12-DeGrauwe 17822147 en
... The sudden emergence of the government debt crisis in the Eurozone in 2009 poses serious problems for the survival of the Eurozone. It also poses serious problems for economic theories. ...
... The sudden emergence of the government debt crisis in the Eurozone in 2009 poses serious problems for the survival of the Eurozone. It also poses serious problems for economic theories. ...
Central Bank Intervention and Exchange Rate Volatility in Zambia
... exchange rate, resisting short-term trends in exchange rates, accumulating official reserves, limiting exchange rate pass-through to prices and defending an exchange rate target are cited as some motivating factors for intervention (see Bonser-Neal, 1996; Baillie and Osterberg, 1997; Dominguez, 1998 ...
... exchange rate, resisting short-term trends in exchange rates, accumulating official reserves, limiting exchange rate pass-through to prices and defending an exchange rate target are cited as some motivating factors for intervention (see Bonser-Neal, 1996; Baillie and Osterberg, 1997; Dominguez, 1998 ...
Introduction - Lahore School of Economics
... researchers are best restricted to limited rates of return (Calza et al., 2001). In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the money demand function should include the short-term market interest rate. ...
... researchers are best restricted to limited rates of return (Calza et al., 2001). In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the money demand function should include the short-term market interest rate. ...
Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models
... (2012) and Benigno (2004) highlight the interaction between monetary policy and price stickiness. In a standard one-sector sticky-price model, they …nd that price stickiness only matters for real exchange rate persistence when monetary policy features policy inertia.1 In that context, if the degree ...
... (2012) and Benigno (2004) highlight the interaction between monetary policy and price stickiness. In a standard one-sector sticky-price model, they …nd that price stickiness only matters for real exchange rate persistence when monetary policy features policy inertia.1 In that context, if the degree ...
Monetary Policy and Uncertainty in an Empirical Small Open Economy Model PRELIMINARY
... has producer currency pricing or local currency pricing can give rise to rather di¤erent policy recommendations, even when the sole of objective of policy is to stabilize the domestic in‡ation rate. For instance, Devereux and Engel (2003) show in a two country model with local currency pricing that ...
... has producer currency pricing or local currency pricing can give rise to rather di¤erent policy recommendations, even when the sole of objective of policy is to stabilize the domestic in‡ation rate. For instance, Devereux and Engel (2003) show in a two country model with local currency pricing that ...
NBER WORKING PAPER SERIES ISSUES CONCERNING NOMINAL ANCHORS FOR MONETARY POLICY Robert Flood
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...
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.