INTERNATIONAL FINANCIAL CRISES:
... while the pegged nominal exchange rate was fixed, the real exchange rate appreciated with growing capital inflows. Widening of the current-account deficit typically accompanied an appreciation of the real exchange rate, which made imports cheap and exports expensive. As the current-account deficit m ...
... while the pegged nominal exchange rate was fixed, the real exchange rate appreciated with growing capital inflows. Widening of the current-account deficit typically accompanied an appreciation of the real exchange rate, which made imports cheap and exports expensive. As the current-account deficit m ...
F S B C
... It is well accepted that credit markets can have multiple equilibria, so that exogenous shifts in expectations—“sunspots” if you will— can play a role, potentially an important role, in generating cyclical fluctuations. Diamond and Dybvig (1983) formalized the point that an illiquid credit instituti ...
... It is well accepted that credit markets can have multiple equilibria, so that exogenous shifts in expectations—“sunspots” if you will— can play a role, potentially an important role, in generating cyclical fluctuations. Diamond and Dybvig (1983) formalized the point that an illiquid credit instituti ...
The United Kingdom & the EU (the Single Currency)
... advantage as a result of EMU’s success. • The gain in competitiveness of the EMU group would, other things being equal, be equivalent to a loss of competitiveness among the countries outside. Then, it will lead to : • Higher risk premium on interest rates • Greater exchange rate volatility Lower r ...
... advantage as a result of EMU’s success. • The gain in competitiveness of the EMU group would, other things being equal, be equivalent to a loss of competitiveness among the countries outside. Then, it will lead to : • Higher risk premium on interest rates • Greater exchange rate volatility Lower r ...
The International Monetary System
... Bretton Woods worked well until the late 1960s It collapsed when huge increases in welfare programs and the Vietnam War were financed by increasing the money supply and causing significant inflation other countries increased the value of their currencies relative to the U.S. dollar in response ...
... Bretton Woods worked well until the late 1960s It collapsed when huge increases in welfare programs and the Vietnam War were financed by increasing the money supply and causing significant inflation other countries increased the value of their currencies relative to the U.S. dollar in response ...
Forex Systems 3 - IBECON
... traders are unsure about the exchange rate that will prevail when their contracts are settled. The uncertainty could also reduce FDI as potential MNCs will not be able to make accurate profit projections. ...
... traders are unsure about the exchange rate that will prevail when their contracts are settled. The uncertainty could also reduce FDI as potential MNCs will not be able to make accurate profit projections. ...
AP MACRO UNIT 8 MR. LIPMAN
... - U.S. citizens have more disposable income - Americans import more - Net exports (Xn) decrease The current account balance decreases and moves toward a deficit. 2. If the U.S. dollar depreciates relative to other countries does the BOP move to a deficit or a surplus? - US exports are desirable - Am ...
... - U.S. citizens have more disposable income - Americans import more - Net exports (Xn) decrease The current account balance decreases and moves toward a deficit. 2. If the U.S. dollar depreciates relative to other countries does the BOP move to a deficit or a surplus? - US exports are desirable - Am ...
Fall 2007
... 6) Looking at the numbers in the table above, what would be the best conclusion to draw about the change in direction of macroeconomic policy between 2009 and 2010. a) Fiscal policy is becoming less expansionary. b) Fiscal policy is becoming more expansionary. c) Monetary policy is becoming less exp ...
... 6) Looking at the numbers in the table above, what would be the best conclusion to draw about the change in direction of macroeconomic policy between 2009 and 2010. a) Fiscal policy is becoming less expansionary. b) Fiscal policy is becoming more expansionary. c) Monetary policy is becoming less exp ...
A Foreign Exchange and Policy Perspective
... Good evening. It is a pleasure for me to be here to help mark the 25th Anniversary of the Foreign Exchange Committee. I thank David Puth for his kind introduction and Dino Kos for the invitation to speak. I have benefited greatly from the conversations I have had with both of them and others close t ...
... Good evening. It is a pleasure for me to be here to help mark the 25th Anniversary of the Foreign Exchange Committee. I thank David Puth for his kind introduction and Dino Kos for the invitation to speak. I have benefited greatly from the conversations I have had with both of them and others close t ...
A Model of US Import Flows (1974-1988) Dominick Answini
... (US), one must be able to turns one's currency into US currency. This caused an increase in the demand for dollars and an appreciation of their value relative to other currencies. In terms of international trade theory, we see that Americans now held dollars with inflated value and this made imports ...
... (US), one must be able to turns one's currency into US currency. This caused an increase in the demand for dollars and an appreciation of their value relative to other currencies. In terms of international trade theory, we see that Americans now held dollars with inflated value and this made imports ...
Colombia_en.pdf
... lowest point in almost 50 years. Up to October, year-onyear inflation stood at 2.7% (2.0% from December 2008 to October 2009) following a reduction in international prices for food and fuels, a slight increase in demand, the appreciation in the peso and a downward trend in costs. The El Niño phenome ...
... lowest point in almost 50 years. Up to October, year-onyear inflation stood at 2.7% (2.0% from December 2008 to October 2009) following a reduction in international prices for food and fuels, a slight increase in demand, the appreciation in the peso and a downward trend in costs. The El Niño phenome ...
Lecture Thirty-One
... reserves to another bank while creating a deposit at this other bank. At each round of the process, the new deposit and the increase in required reserves is 10% less than the previous round. ...
... reserves to another bank while creating a deposit at this other bank. At each round of the process, the new deposit and the increase in required reserves is 10% less than the previous round. ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... successful path to recovery? Diaz Alejandro concludes, "After the initial external blows, the active countries steadily gained in both ability and will to maintain growth regardless of foreign conditions." Study of the 1930s is revealing, for it illustrates the costs of close integration when the wo ...
... successful path to recovery? Diaz Alejandro concludes, "After the initial external blows, the active countries steadily gained in both ability and will to maintain growth regardless of foreign conditions." Study of the 1930s is revealing, for it illustrates the costs of close integration when the wo ...
MDTA meeting on MTMF
... Comments made in subgroups on previous MTMF • Growth and inflation targets are ambitious— which sectors are going to drive growth? Growth of credit to private sector seems insufficient to support growth targets. • Exports seems to grow too quickly with weaknesses in RMG/phasing out of MFA. • What w ...
... Comments made in subgroups on previous MTMF • Growth and inflation targets are ambitious— which sectors are going to drive growth? Growth of credit to private sector seems insufficient to support growth targets. • Exports seems to grow too quickly with weaknesses in RMG/phasing out of MFA. • What w ...
Contents of the course - Solvay Brussels School of
... As long as capital kept flowing in, the currencies were stable, but if this inflow stopped then the governments would not be able to support their fixed currencies Most visible part : the excesses of capital inflows into Thailand in 1996 and 1997. Easy access to capital for firms and Thai bank ...
... As long as capital kept flowing in, the currencies were stable, but if this inflow stopped then the governments would not be able to support their fixed currencies Most visible part : the excesses of capital inflows into Thailand in 1996 and 1997. Easy access to capital for firms and Thai bank ...
Exam 2 with answers
... 1. There is a limit to a nation's ability to use international financial markets to supplement domestic consumption or investment. Why? A) Lenders like a diversified group of borrowers. B) International lenders require collateral. C) Communication is difficult because of language and differences in ...
... 1. There is a limit to a nation's ability to use international financial markets to supplement domestic consumption or investment. Why? A) Lenders like a diversified group of borrowers. B) International lenders require collateral. C) Communication is difficult because of language and differences in ...
Monetary Policy - Economics of Agricultural Development
... determined in international currency markets Exchange rates in developing countries often set by government and “pegged” to currency of a major developed country ...
... determined in international currency markets Exchange rates in developing countries often set by government and “pegged” to currency of a major developed country ...
Fixed Exchange Rates and Macroeconomic Policy
... domestic inflation or to try to smooth out the domestic business cycle • The only hope for independent monetary policy is exchange controls to prevent traders buying or selling domestic currency • But exchange controls reduce trade and foreign direct investment, and present opportunities for corrupt ...
... domestic inflation or to try to smooth out the domestic business cycle • The only hope for independent monetary policy is exchange controls to prevent traders buying or selling domestic currency • But exchange controls reduce trade and foreign direct investment, and present opportunities for corrupt ...
Gordon Chapter 6 International Trade, Exchange Rates, and
... How may the threat of domestic inflation limit the use of reserve currencies by a central bank to maintain a fixed exchange rate when a balance of payments surplus exists? ...
... How may the threat of domestic inflation limit the use of reserve currencies by a central bank to maintain a fixed exchange rate when a balance of payments surplus exists? ...
J. Anna Schwartz
... the real exchange rate, which made imports cheap and exports expensive. As the current-account deficit mounted as a percentage of GDP, confidence in the economy deteriorated. Moreover, if the capital that was attracted from abroad was not used productively, the inflow became the basis for nonperform ...
... the real exchange rate, which made imports cheap and exports expensive. As the current-account deficit mounted as a percentage of GDP, confidence in the economy deteriorated. Moreover, if the capital that was attracted from abroad was not used productively, the inflow became the basis for nonperform ...
Suriname_en.pdf
... At the end of 2011 the fiscal deficit is estimated to be approximately 2.2% of GDP. The gap between revenues and expenditures narrowed owing to restrained public sector spending combined with strong revenues dominated by transfers from the mineral sector, especially oil and gold receipts. The high p ...
... At the end of 2011 the fiscal deficit is estimated to be approximately 2.2% of GDP. The gap between revenues and expenditures narrowed owing to restrained public sector spending combined with strong revenues dominated by transfers from the mineral sector, especially oil and gold receipts. The high p ...
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.