EO4IC xrbrie, W 02138
... program that will simultaneously shift the system from high inflation to a new zero (or relatively low) level equilibrium so as to avoid sharp and destabilizing changes in relative prices. This is the conceptual basis for the so-called 'heterodox' stabilization program. What then is the main nominal ...
... program that will simultaneously shift the system from high inflation to a new zero (or relatively low) level equilibrium so as to avoid sharp and destabilizing changes in relative prices. This is the conceptual basis for the so-called 'heterodox' stabilization program. What then is the main nominal ...
Effects of changes in the official interest rate in an inflation
... aggregate demand shock, the government could dampen aggregate demand by ...
... aggregate demand shock, the government could dampen aggregate demand by ...
MerCAtUS reSeArCh A MArket-Driven noMinAl GDP tArGetinG reGiMe
... 5. Robert Hall—Advocated a price-level targeting scheme involving interestbearing bank reserves. Higher rates on reserves would lower demand for reserves and thus raise the price level. Hall also proposed monetary policies aimed at targeting the price of a specified basket of commodities.7 The prob ...
... 5. Robert Hall—Advocated a price-level targeting scheme involving interestbearing bank reserves. Higher rates on reserves would lower demand for reserves and thus raise the price level. Hall also proposed monetary policies aimed at targeting the price of a specified basket of commodities.7 The prob ...
Regional Economic Outlook: Western Hemisphere
... levels. Indeed some in Europe face market pressures and the need for substantial upfront fiscal action. In that context, policy interest rates in major reserve currency economies are likely to remain very low for quite some time, pushing private capital to the most attractive emerging economies and ...
... levels. Indeed some in Europe face market pressures and the need for substantial upfront fiscal action. In that context, policy interest rates in major reserve currency economies are likely to remain very low for quite some time, pushing private capital to the most attractive emerging economies and ...
NBER WORKING PAPER SERIES THE BARNETT CRITIQUE AFTER THREE DECADES:
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
A Comparison of Optimal Policy Rules Eras: Empirical Evidence from
... explanations of why monetary authorities smooth interest rates lie in official dislike of the financial market volatility. In the literature, models addressing this incentive improve upon ad-hoc Taylor rules. Detailed evidence on the existence of interest rate smoothing was first provided for the Un ...
... explanations of why monetary authorities smooth interest rates lie in official dislike of the financial market volatility. In the literature, models addressing this incentive improve upon ad-hoc Taylor rules. Detailed evidence on the existence of interest rate smoothing was first provided for the Un ...
Static Losses, Dynamic Gains
... saving and investment. In a way, the government “outsources” the targeting problem to foreigners. The difficulty of targeting policy measures at specific sectors has long been emphasized by the economic literature. First, selective subsidies pose potentially severe agency problem, as they offer ampl ...
... saving and investment. In a way, the government “outsources” the targeting problem to foreigners. The difficulty of targeting policy measures at specific sectors has long been emphasized by the economic literature. First, selective subsidies pose potentially severe agency problem, as they offer ampl ...
Vehicle Currency Use in International Trade
... belongs neither to the exporter or importer home markets. The use of a specific currency in invoicing international trade transactions can now be broader than the importance of that currency’s home country as a direct counterparty in international trade transactions. Second, we contrast the role of ...
... belongs neither to the exporter or importer home markets. The use of a specific currency in invoicing international trade transactions can now be broader than the importance of that currency’s home country as a direct counterparty in international trade transactions. Second, we contrast the role of ...
NATIONAL OPEN UNIVERSITY OF NIGERIA MACROECONOMIC
... rudiments such as National income models and accounting, concepts of aggregate saving, consumption and investment, as well as theories of inflation and unemployment, the demand for and supply of money . it equally explain the theory of international trade and issues closely related to it such as bal ...
... rudiments such as National income models and accounting, concepts of aggregate saving, consumption and investment, as well as theories of inflation and unemployment, the demand for and supply of money . it equally explain the theory of international trade and issues closely related to it such as bal ...
Temi di discussione
... Recently, there has been an increasing interest in the sources of international business ‡uctuations on the one hand, and in the role played by international spillovers of monetary policy shocks on the other hand. Mounting evidence suggest that the cross-country transmission of shocks plays an impor ...
... Recently, there has been an increasing interest in the sources of international business ‡uctuations on the one hand, and in the role played by international spillovers of monetary policy shocks on the other hand. Mounting evidence suggest that the cross-country transmission of shocks plays an impor ...
A survey of literature on the equilibrium real exchange rate an
... (i.e., stable net capital outflows). This approach does not require the existence of stock-flow equilibrium and it does not take into account the interaction between deviations from equilibrium and the equilibrium path itself. As a result, FEER is subject to a hysteresis effect. The results obtained ...
... (i.e., stable net capital outflows). This approach does not require the existence of stock-flow equilibrium and it does not take into account the interaction between deviations from equilibrium and the equilibrium path itself. As a result, FEER is subject to a hysteresis effect. The results obtained ...
“Development of an explicit rule of monetary policy for the economy
... The aim of this paper is to substantiate the expediency of developing an explicit monetary rule for the Ukrainian economy. We also examine the main stages of its development: (1) determination of the rule’s basic form; (2) estimation of equilibrium values of the rule’s parameters; and (3) determinat ...
... The aim of this paper is to substantiate the expediency of developing an explicit monetary rule for the Ukrainian economy. We also examine the main stages of its development: (1) determination of the rule’s basic form; (2) estimation of equilibrium values of the rule’s parameters; and (3) determinat ...
The Dutch Disease and Its Neutralization: A Ricardian Approach Luiz Carlos Bresser-Pereira
... Bresser-Pereira (2002, 2004), Bresser-Pereira and Gala (2007). In Brazil, between 1994 and 1999, when foreign savings received by the country increased extraordinarily, as the current account deficit went from zero to nearly 4.5% of GDP whereas the investment rate remained virtually stable, the rate ...
... Bresser-Pereira (2002, 2004), Bresser-Pereira and Gala (2007). In Brazil, between 1994 and 1999, when foreign savings received by the country increased extraordinarily, as the current account deficit went from zero to nearly 4.5% of GDP whereas the investment rate remained virtually stable, the rate ...
No.314 / January 2010 External Imbalances and Fiscal Policy Philip R. Lane
... be associated with an increase in external debt. For instance, Ganelli (2005) and Kumhof and Laxton (2009) provide models in which households have …nite horizons, such that a debt-…nanced tax cut increases the wealth of currently-alive cohorts, boosting consumption and generating a current account d ...
... be associated with an increase in external debt. For instance, Ganelli (2005) and Kumhof and Laxton (2009) provide models in which households have …nite horizons, such that a debt-…nanced tax cut increases the wealth of currently-alive cohorts, boosting consumption and generating a current account d ...
Explaining the Early Years of the Euro Exchange Rate: an episode
... theoretical model of pre- and post-euro foreign exchange trading that generates three possible causes of euro depreciation: a reduction in hedging opportunities due to the elimination of the legacy currencies, asymmetric information due to some traders having superior information regarding shocks to ...
... theoretical model of pre- and post-euro foreign exchange trading that generates three possible causes of euro depreciation: a reduction in hedging opportunities due to the elimination of the legacy currencies, asymmetric information due to some traders having superior information regarding shocks to ...
Fluctuations in the Yen/Dollar Exchange Rate, East Asian Business
... countries have followed and still maintain de facto dollar pegs is, while widespread and often taken as a matter of fact, by no means incontrovertible. In Section 4, we look more closely at the relative impact of yen/dollar fluctuations and the global electronics cycle on the Asian countries’ export ...
... countries have followed and still maintain de facto dollar pegs is, while widespread and often taken as a matter of fact, by no means incontrovertible. In Section 4, we look more closely at the relative impact of yen/dollar fluctuations and the global electronics cycle on the Asian countries’ export ...
Design and Implementation of a Common Currency Area in the East
... formed. Those initiatives were stimulated by the generally small size of individual economies leading to a desire to exploit economies of scale in production and distribution, as well as having more influence on the world’s stage. Currently, two examples of monetary integration in Africa are in plac ...
... formed. Those initiatives were stimulated by the generally small size of individual economies leading to a desire to exploit economies of scale in production and distribution, as well as having more influence on the world’s stage. Currently, two examples of monetary integration in Africa are in plac ...
NBER WORKING PAPER SERIES MONOPOLISTIC COMPETITION, RELATIVE PRICES AND OUTPUT ADJUSTMENT
... one price; next, as an index number problem. In other words, even if' the law of one price holds for each good, the difference in consumption basket across countries implies that changes in relative prices will result in deviations ...
... one price; next, as an index number problem. In other words, even if' the law of one price holds for each good, the difference in consumption basket across countries implies that changes in relative prices will result in deviations ...
The Political Economy of Monetary Institutions
... from a purely floating-exchange-rate system, where market forces determine currency values, to an irrevocable exchange-rate peg or common currency among countries.1 While exchange-rate regimes are usually distinguished by the degree of flexibility in the arrangement (from a free float to an immutabl ...
... from a purely floating-exchange-rate system, where market forces determine currency values, to an irrevocable exchange-rate peg or common currency among countries.1 While exchange-rate regimes are usually distinguished by the degree of flexibility in the arrangement (from a free float to an immutabl ...
1 Exchange Rate Misalignment: An Overview
... defined in this manner, the RER is measured as the ratio of the foreign to the domestic values of some broad-based price index such as the CPI or the deflator for gross domestic product (GDP), expressed in a common currency by using the nominal exchange rate to convert the price level in one country ...
... defined in this manner, the RER is measured as the ratio of the foreign to the domestic values of some broad-based price index such as the CPI or the deflator for gross domestic product (GDP), expressed in a common currency by using the nominal exchange rate to convert the price level in one country ...
4V - EconStor
... has stimulated much debate about the appropriate policy mix to restore macroeconomic stability in the face of the slump in world copper prices. In this paper we consider a range of potential stabilisation policies for the Chilean economy. Using a multisectoral general equilibrium model we check the ...
... has stimulated much debate about the appropriate policy mix to restore macroeconomic stability in the face of the slump in world copper prices. In this paper we consider a range of potential stabilisation policies for the Chilean economy. Using a multisectoral general equilibrium model we check the ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... inflation, stands for all the factors in the economy that give inertia to built-in trends in wages and prices. Also, whereas the level of the money wage is always treated as predetermined, it, while determined by a 'backward-looking' process, can make discrete jumps at a point in time. This will hap ...
... inflation, stands for all the factors in the economy that give inertia to built-in trends in wages and prices. Also, whereas the level of the money wage is always treated as predetermined, it, while determined by a 'backward-looking' process, can make discrete jumps at a point in time. This will hap ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom
... We believe that these factors are particularly important for our sample of countries. First, low‐income countries face greater distortions— some of which are policy induced—than other countries. For example, capital account controls—which were prevalent for a large number of countries over the sampl ...
... We believe that these factors are particularly important for our sample of countries. First, low‐income countries face greater distortions— some of which are policy induced—than other countries. For example, capital account controls—which were prevalent for a large number of countries over the sampl ...
by Samuel GUERINEAU* and Sylviane GUILLAUMONT
... terms of dollar) of China trade partners. Actually, due to quantitative restrictions (quotas and licences, but also import planning), prices of many imports were almost disconnected from international prices until 1993. Import planning was banished in 1994, and other quantitative restrictions decrea ...
... terms of dollar) of China trade partners. Actually, due to quantitative restrictions (quotas and licences, but also import planning), prices of many imports were almost disconnected from international prices until 1993. Import planning was banished in 1994, and other quantitative restrictions decrea ...
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.