The Coming U.S. Interest Rate Tightening Cycle: Smooth Sailing or
... Risk of a large decline in capital flows. Movements in U.S. yields play a significant role in driving fluctuations in capital flows to EFEs. If the tightening cycle were accompanied by a surge in U.S. longterm yields, as happened during the taper tantrum, the reduction in capital flows to EFEs could ...
... Risk of a large decline in capital flows. Movements in U.S. yields play a significant role in driving fluctuations in capital flows to EFEs. If the tightening cycle were accompanied by a surge in U.S. longterm yields, as happened during the taper tantrum, the reduction in capital flows to EFEs could ...
Inflation Targeting
... targeting is the appropriate assumption about the instrument-rate path that underlies the forecasts of inflation and other target variables and the information provided about future policy actions. Traditionally, inflation-targeting central banks have assumed a constant interest rate underlying its ...
... targeting is the appropriate assumption about the instrument-rate path that underlies the forecasts of inflation and other target variables and the information provided about future policy actions. Traditionally, inflation-targeting central banks have assumed a constant interest rate underlying its ...
NBER WORKING PAPER SERIES A CURRENCY OF ONE’S OWN?
... that have a domestic currency. These analyses, however, do not make a distinction between the two types of “common currency” regimes discussed above: strictly dollarized and independent currency unions (ICU). For instance, an inspection of the data sets used by Engel and Rose (2002) and Frankel and ...
... that have a domestic currency. These analyses, however, do not make a distinction between the two types of “common currency” regimes discussed above: strictly dollarized and independent currency unions (ICU). For instance, an inspection of the data sets used by Engel and Rose (2002) and Frankel and ...
National Saving and International ~ves~ment Norman S. Fieleke*
... More recently, foreign officials have publicly protested against U.S. fiscalmonetary policy for putting upward pressure under foreign interest rates. In addition to such evidence on capital mobility from officialdom, numerous other indicators could be marshalled, including the fact that 26 percent o ...
... More recently, foreign officials have publicly protested against U.S. fiscalmonetary policy for putting upward pressure under foreign interest rates. In addition to such evidence on capital mobility from officialdom, numerous other indicators could be marshalled, including the fact that 26 percent o ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 22
... 16) Describe some of the features hindering developing countries from growing faster. Answer: One of the features that can be hold developing countries from growing faster is corruption. The way governments control the economy by developing restrictions that would not allow international trade amon ...
... 16) Describe some of the features hindering developing countries from growing faster. Answer: One of the features that can be hold developing countries from growing faster is corruption. The way governments control the economy by developing restrictions that would not allow international trade amon ...
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... monetary policy is assumed, short-term interest rates (long-term in the Australian and Belgian models) fall significantly in all models, with deviations increasing over time. There is no clear pattern in ex post real interest rates (defined as the difference between interest rates and coincident rat ...
... monetary policy is assumed, short-term interest rates (long-term in the Australian and Belgian models) fall significantly in all models, with deviations increasing over time. There is no clear pattern in ex post real interest rates (defined as the difference between interest rates and coincident rat ...
PDF
... gold, silver or both metals, enjoyed relatively stable exchange rates, while countries with inconvertible currencies might see their exchange rates fluctuate widely. ...
... gold, silver or both metals, enjoyed relatively stable exchange rates, while countries with inconvertible currencies might see their exchange rates fluctuate widely. ...
Interest Rate and the Exchange Rate: A Non
... spending. This tends to increase the market interest rate, thus raising the opportunity cost of holding money and depreciating the currency. In a similar vein, for a given level of deposits, the fall in bank credit associated with the output e¤ect implies that banks will lend more to the government. ...
... spending. This tends to increase the market interest rate, thus raising the opportunity cost of holding money and depreciating the currency. In a similar vein, for a given level of deposits, the fall in bank credit associated with the output e¤ect implies that banks will lend more to the government. ...
Government Spending Effects in Low-income Countries
... The significance of external financing in government spending effects nonetheless diminishes when international capital mobility becomes high. The appreciated real exchange rate due to increased government external borrowing reduces the benefits of external borrowing by the private sector. Since hou ...
... The significance of external financing in government spending effects nonetheless diminishes when international capital mobility becomes high. The appreciated real exchange rate due to increased government external borrowing reduces the benefits of external borrowing by the private sector. Since hou ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... aversion is the inverse of intertemporal elasticity of substitution, the lower risk aversion is, the easier it is for private agents, in terms of utility, to forgo current consumption for future consumption, and thus the higher the consumption growth rate is. On the other hand, lower risk aversion d ...
... aversion is the inverse of intertemporal elasticity of substitution, the lower risk aversion is, the easier it is for private agents, in terms of utility, to forgo current consumption for future consumption, and thus the higher the consumption growth rate is. On the other hand, lower risk aversion d ...
I appreciate this opportunity to discuss the paper by I have Henrik
... rate target through a two-step procedure. Firstly, they set the short-run interest rate without any consideration of the size of open market operations, and then, and only then, they instruct the relevant financial departments to operate in the open market, namely buying or selling Treasury securiti ...
... rate target through a two-step procedure. Firstly, they set the short-run interest rate without any consideration of the size of open market operations, and then, and only then, they instruct the relevant financial departments to operate in the open market, namely buying or selling Treasury securiti ...
1) The objectives of the Federal Reserve in its conduct of monetary
... Due to the lack of timely data for the price level and economic growth, the Fed’s strategy (a) targets the exchange rate, since the Fed can control this variable. (b) targets the price of gold, since it is closely related to economic activity. (c) uses an intermediate target, such as an interest rat ...
... Due to the lack of timely data for the price level and economic growth, the Fed’s strategy (a) targets the exchange rate, since the Fed can control this variable. (b) targets the price of gold, since it is closely related to economic activity. (c) uses an intermediate target, such as an interest rat ...
Twelfth And Final Review Under The Extended Arrangement
... “Moving forward with key structural reforms is pivotal to foster higher and more inclusive growth. Restructuring and attracting private sector participation in public enterprises is needed to ensure their financial viability and reduce fiscal costs. Completing the power sector reform will be importa ...
... “Moving forward with key structural reforms is pivotal to foster higher and more inclusive growth. Restructuring and attracting private sector participation in public enterprises is needed to ensure their financial viability and reduce fiscal costs. Completing the power sector reform will be importa ...
Monetary Policy and Exchange Rate Interactions in a Small Open
... in Norway. 2 However, it is only recently that Norway abandoned a regime of targeting the exchange rate and instead adopted inflation targeting. This paper therefore contributes to the literature on how monetary policy can be identified and analysed in a small open economy and establishes some styli ...
... in Norway. 2 However, it is only recently that Norway abandoned a regime of targeting the exchange rate and instead adopted inflation targeting. This paper therefore contributes to the literature on how monetary policy can be identified and analysed in a small open economy and establishes some styli ...
NBER WORKING PAPER SERIES Jean Boivin Marc P. Giannoni
... sensitivity of national economies to such shocks. (In Appendix C, we also document the e¤ects of identi…ed oil price shocks.) It is important to note that it is not because we believe that monetary policy shocks constitute an important source of business cycle ‡uctuations that we are interested in d ...
... sensitivity of national economies to such shocks. (In Appendix C, we also document the e¤ects of identi…ed oil price shocks.) It is important to note that it is not because we believe that monetary policy shocks constitute an important source of business cycle ‡uctuations that we are interested in d ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2008, Volume 23
... dynamics, such as real activity and inflation) and by series‐specific components unrelated to the general state of the economies, et . For instance, (2) specifies that indicators of country‐level economic activity or inflation are driven by a European interest rate, EA latent factors Ft , and a comp ...
... dynamics, such as real activity and inflation) and by series‐specific components unrelated to the general state of the economies, et . For instance, (2) specifies that indicators of country‐level economic activity or inflation are driven by a European interest rate, EA latent factors Ft , and a comp ...
Impact of Floating Exchange Rates on Company Risk Management
... forecasting. selection and implementation of hedging strategies. In examining the organizational structure of risk management, Evans e t . a l . (1978) and Mathur (1982) noted that the trend had been toward the centralization of exchange risk management decisions. In the case of risk management obje ...
... forecasting. selection and implementation of hedging strategies. In examining the organizational structure of risk management, Evans e t . a l . (1978) and Mathur (1982) noted that the trend had been toward the centralization of exchange risk management decisions. In the case of risk management obje ...
Did the Indian capital controls work as a tool of macroeconomic
... Financial integration can reduce the cost of capital, support capital deepening through higher investment, foster the diversification of investment risk and contribute to the development of financial markets. At the same time, for emerging economies, financial integration can create macroeconomic vu ...
... Financial integration can reduce the cost of capital, support capital deepening through higher investment, foster the diversification of investment risk and contribute to the development of financial markets. At the same time, for emerging economies, financial integration can create macroeconomic vu ...
Nontradable Goods and the Real Exchange Rate
... inflation or consumption, the monetary policy rules in both countries, and the size and persistence of economic shocks to explain the data. Second, we find that the version of the model without distribution costs performs better than the version with distribution costs. Since the model already inclu ...
... inflation or consumption, the monetary policy rules in both countries, and the size and persistence of economic shocks to explain the data. Second, we find that the version of the model without distribution costs performs better than the version with distribution costs. Since the model already inclu ...
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.