Does Saying Yes to Capital Inflows Necessarily Mean Good
... complained about the lack of informational exchange between the two countries, making the tracking of money launders difficult to achieve.12 Despite the importance of the mutual evaluation reports in assessing international compliance with AML/CFT recommendations, the FATF’s blacklists, as our analysi ...
... complained about the lack of informational exchange between the two countries, making the tracking of money launders difficult to achieve.12 Despite the importance of the mutual evaluation reports in assessing international compliance with AML/CFT recommendations, the FATF’s blacklists, as our analysi ...
Republic Of Azerbaijan: 2016 Article IV Consultation—Press
... contract this year and remain sluggish in the next few years, while inflation is expected to gradually decrease. Large fiscal surpluses during the oil boom years are projected to turn into deficits in the next three years. The current account balance should improve as the devaluations work to limit ...
... contract this year and remain sluggish in the next few years, while inflation is expected to gradually decrease. Large fiscal surpluses during the oil boom years are projected to turn into deficits in the next three years. The current account balance should improve as the devaluations work to limit ...
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... same time, long-term price level targeting is accompanied by lower variability in the price level. On the contrary, price level targeting causes short-term fluctuations in inflation and output, which is not the case with inflation targeting. Another disadvantage of the price level targeting refers t ...
... same time, long-term price level targeting is accompanied by lower variability in the price level. On the contrary, price level targeting causes short-term fluctuations in inflation and output, which is not the case with inflation targeting. Another disadvantage of the price level targeting refers t ...
Modern Macroeconomics and Monetary Policy (15th ed.)
... • When expansionary monetary policy leads to rising prices, decision makers eventually anticipate the higher inflation rate and build it into their choices. • As this happens, money interest rates, wages, and incomes will reflect the expectation of inflation, and so real interest rates, wages, and r ...
... • When expansionary monetary policy leads to rising prices, decision makers eventually anticipate the higher inflation rate and build it into their choices. • As this happens, money interest rates, wages, and incomes will reflect the expectation of inflation, and so real interest rates, wages, and r ...
THE “UNORTHODOX” MONETARY POLICY OF THE CENTRAL
... debt crisis in late 2009, key advanced economies entered severe recessions, which consequently had a significant impact on emerging countries. Turkey was one of the affected countries since its economy is very much intertwined with Europe. Central banks, observing these negative developments in the ...
... debt crisis in late 2009, key advanced economies entered severe recessions, which consequently had a significant impact on emerging countries. Turkey was one of the affected countries since its economy is very much intertwined with Europe. Central banks, observing these negative developments in the ...
Current account benchmarks for central and eastern Europe: a
... This is not a new debate in economics as it is closely related to the "transfer problem" that was already addressed by Keynes and Ohlin in the 1920s whilst discussing the economic consequences of war repayments by Germany. In a similar vein it could be argued today that an exchange rate adjustment m ...
... This is not a new debate in economics as it is closely related to the "transfer problem" that was already addressed by Keynes and Ohlin in the 1920s whilst discussing the economic consequences of war repayments by Germany. In a similar vein it could be argued today that an exchange rate adjustment m ...
Comments on Paul Davidson`s “Full Employment, Open Economy
... Modigliani. The problem with this approach is that Keynes, like any important innovator, did not fully understand what he was doing as he was doing it. Keynes formulated his ideas during the 1930s with false starts and intuitive leaps. He would have been the first to argue that his contributions wer ...
... Modigliani. The problem with this approach is that Keynes, like any important innovator, did not fully understand what he was doing as he was doing it. Keynes formulated his ideas during the 1930s with false starts and intuitive leaps. He would have been the first to argue that his contributions wer ...
Fiscal Multipliers: Lessons from the Great Recession for Small Open
... However, as the crisis and recession turned out to be more persistent than initially anticipated, the ongoing deterioration of the fiscal outlook led governments to take a more cautious approach—not least because, per effect of contingent and implicit public liabilities, government borrowing rapidly ...
... However, as the crisis and recession turned out to be more persistent than initially anticipated, the ongoing deterioration of the fiscal outlook led governments to take a more cautious approach—not least because, per effect of contingent and implicit public liabilities, government borrowing rapidly ...
Introductory Macroeconomics - General Guide To Personal and
... of the supply and demand of fiat money (coins and bank notes). However, things are more complicated than this because other financial assets, such as government bonds or corporate equity, are substitutes for money. So, in order to model the money market we must model their effect on it. Also, money ...
... of the supply and demand of fiat money (coins and bank notes). However, things are more complicated than this because other financial assets, such as government bonds or corporate equity, are substitutes for money. So, in order to model the money market we must model their effect on it. Also, money ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... Another avenue that monetary authorities can fight deflation is to devalue the domestic currency via large open market sales of the domestic currency in order to generate sufficient import price inflation and raising foreign demand for domestic goods and services. However, in Zimbabwe monetary autho ...
... Another avenue that monetary authorities can fight deflation is to devalue the domestic currency via large open market sales of the domestic currency in order to generate sufficient import price inflation and raising foreign demand for domestic goods and services. However, in Zimbabwe monetary autho ...
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... and is risk averse, a prime condition for this firm to produce is that its marginal revenue exceeds its marginal cost to compensate for the exchange risk it bears. Hence, in this situation where the variability of the firm's profits depends only on the exchange rate, the greater volatility of the ex ...
... and is risk averse, a prime condition for this firm to produce is that its marginal revenue exceeds its marginal cost to compensate for the exchange risk it bears. Hence, in this situation where the variability of the firm's profits depends only on the exchange rate, the greater volatility of the ex ...
exchange rate volatility and trade
... are mainly driven by fundamentals, and that changes in fundamentals would require similar, but more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustmen ...
... are mainly driven by fundamentals, and that changes in fundamentals would require similar, but more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustmen ...
View/Open
... notable in this regard was the work of Nashashibi (1980), who set out to determine the appropriate real exchange rate adjustment to promote exports, and to complement other IMF/World Bank-sponsored supply side measures that had been proposed for Sudan in 1978; the so-called ‘supply side approach’ to ...
... notable in this regard was the work of Nashashibi (1980), who set out to determine the appropriate real exchange rate adjustment to promote exports, and to complement other IMF/World Bank-sponsored supply side measures that had been proposed for Sudan in 1978; the so-called ‘supply side approach’ to ...
Optimal Simple Targeting Rules for Small Open Economies Richard Dennis
... because it is based on information unavailable to policy makers when policy is set. Similarly, Orphanides (1997) shows that the predictive power of the Taylor rule depends on the data vintage used. The rule tracks the path of the Federal Funds rate well when the final data vintage is used, but not i ...
... because it is based on information unavailable to policy makers when policy is set. Similarly, Orphanides (1997) shows that the predictive power of the Taylor rule depends on the data vintage used. The rule tracks the path of the Federal Funds rate well when the final data vintage is used, but not i ...
Optimal Monetary Policy in Open Economies
... symmetric in preferences and technology. In such a model, optimal monetary policy is characterized by a ‡exible in‡ation target, trading o¤ ‡uctuations in the GDP de‡ator and the output gap vis-à-vis ine¢ cient shocks — such as markup shocks (which would not be accommodated by the social planner). C ...
... symmetric in preferences and technology. In such a model, optimal monetary policy is characterized by a ‡exible in‡ation target, trading o¤ ‡uctuations in the GDP de‡ator and the output gap vis-à-vis ine¢ cient shocks — such as markup shocks (which would not be accommodated by the social planner). C ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... differentiated products. In a model with more general preferences, the production mix between manufactures and commodities could be affected by exchange rate volatility, but conditional on production, where commodities get sold would remain unaffected. Commodity products are sold in organized exchanges ...
... differentiated products. In a model with more general preferences, the production mix between manufactures and commodities could be affected by exchange rate volatility, but conditional on production, where commodities get sold would remain unaffected. Commodity products are sold in organized exchanges ...
The Political Economy of Persistent Current Account Imbalances
... Why do some countries run persistent current account surpluses? Why do others run deficits, often over decades, leading to enduring global financial imbalances? A current account deficit means that a country spends more on imports and interest payments than it earns from exports and investments abro ...
... Why do some countries run persistent current account surpluses? Why do others run deficits, often over decades, leading to enduring global financial imbalances? A current account deficit means that a country spends more on imports and interest payments than it earns from exports and investments abro ...
External Adjustment in Oil Exporters
... many have sizeable external wealth but some may face financing difficulties and pressure on reserves (Versailles, 2015). From a normative perspective, exporters of a non-renewable resource should generally be net external savers such that they can finance future imports after the resource is exhaust ...
... many have sizeable external wealth but some may face financing difficulties and pressure on reserves (Versailles, 2015). From a normative perspective, exporters of a non-renewable resource should generally be net external savers such that they can finance future imports after the resource is exhaust ...
Lectures on International Money
... – As a unit of account: if everyone understand the denomination, i.e. how much gold one unit refers to, it should work well. However, it is clearly most useful if every bank uses the same denomination. – As a means of payment: bills of credit are easy to carry. However, here the value depends on the ...
... – As a unit of account: if everyone understand the denomination, i.e. how much gold one unit refers to, it should work well. However, it is clearly most useful if every bank uses the same denomination. – As a means of payment: bills of credit are easy to carry. However, here the value depends on the ...
New Monetary Policy and Keynes
... In order to clarify this distinction further, we may give examples of monetary policy regimes. We do so by drawing on, and adapting appropriately, Meyer (2004, Table 1, p. 152). In Table 1 we give relevant examples. Australia has an explicit numerical inflation target and a dual mandate, under which ...
... In order to clarify this distinction further, we may give examples of monetary policy regimes. We do so by drawing on, and adapting appropriately, Meyer (2004, Table 1, p. 152). In Table 1 we give relevant examples. Australia has an explicit numerical inflation target and a dual mandate, under which ...
I F M What Is the
... Contrary to widespread perception, the IMF has no effective authority over the domestic economic policies of its members. It is in no position, for example, to force a member to spend more on schools or hospitals and less on buying military aircraft or constructing grandiose presidential palaces. It ...
... Contrary to widespread perception, the IMF has no effective authority over the domestic economic policies of its members. It is in no position, for example, to force a member to spend more on schools or hospitals and less on buying military aircraft or constructing grandiose presidential palaces. It ...
The Nature and Role of Monetary Policy When Money Is Endogenous
... would also be higher (than otherwise). In the event of a sustained increase in inflation (due to cost pressures, as would seem to have been the case during the 1970s), this could only be met, in this framework, by raising interest rates and grinding down inflation by low demand and unemployment. In ...
... would also be higher (than otherwise). In the event of a sustained increase in inflation (due to cost pressures, as would seem to have been the case during the 1970s), this could only be met, in this framework, by raising interest rates and grinding down inflation by low demand and unemployment. In ...
A Three-State Markov-Modulated Switching Model for Exchange Rates
... peculiar occurrence is easily explained: Nigeria’s economy depends heavily on importations which are traded (most often) in US dollars; thus, it is expected that any changes in US currency would bring about reaction (“high appreciation” or “depreciation”) in Nigerian naira; and consequently, in such ...
... peculiar occurrence is easily explained: Nigeria’s economy depends heavily on importations which are traded (most often) in US dollars; thus, it is expected that any changes in US currency would bring about reaction (“high appreciation” or “depreciation”) in Nigerian naira; and consequently, in such ...
an External Instruments Approach
... from recursive identification methods that instead detect a rise in inflation in response to an unexpected tightening in monetary policy, an empirical phenomenon labeled “price puzzle,” originally established by Sims (1992) on U.K. data.5 We show that the counterfactual increase in inflation detect ...
... from recursive identification methods that instead detect a rise in inflation in response to an unexpected tightening in monetary policy, an empirical phenomenon labeled “price puzzle,” originally established by Sims (1992) on U.K. data.5 We show that the counterfactual increase in inflation detect ...
Contemporary Logistics the Forming of Real-life Exchange Rate Misalignment
... early years when policies of Reform and opening to the outside world were implemented, the market mechanism began to play a role in the forming process of RMB exchange rate system and its effect became more and more important. 3.1.1 RMB exchange rate going out of balance under the control of dual ex ...
... early years when policies of Reform and opening to the outside world were implemented, the market mechanism began to play a role in the forming process of RMB exchange rate system and its effect became more and more important. 3.1.1 RMB exchange rate going out of balance under the control of dual ex ...
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.