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 ...
Statistical properties of exchange rate LKR changes
... monetary transmission process in Sri Lanka. Movement in this price has a significant effect on consumer prices. Again this background, good understanding of stochastic properties of the behavior of Rupee-US dollar exchange rate changes is important in many aspects. Therefore, an in-depth empirical a ...
... monetary transmission process in Sri Lanka. Movement in this price has a significant effect on consumer prices. Again this background, good understanding of stochastic properties of the behavior of Rupee-US dollar exchange rate changes is important in many aspects. Therefore, an in-depth empirical a ...
Excess money growth and inflation dynamics
... stock market developments (represented by the share prices index available for each country), and housing price dynamics. Macroeconomic variables include nominal and real GDP, output gap and nominal investment (gross fixed capital formation), while financial variables are represented by the short-te ...
... stock market developments (represented by the share prices index available for each country), and housing price dynamics. Macroeconomic variables include nominal and real GDP, output gap and nominal investment (gross fixed capital formation), while financial variables are represented by the short-te ...
Peltonen-del05 1039031 en
... crises could be, to some extent, predictable with variables derived from the first generation models of currency crisis stemming from Krugman (1979).8 Authors such as Blanco and Garber (1986), Cumby and van Wijnbergen (1989), Edwards (1989) and Goldberg (1994) explored the Latin American currency cr ...
... crises could be, to some extent, predictable with variables derived from the first generation models of currency crisis stemming from Krugman (1979).8 Authors such as Blanco and Garber (1986), Cumby and van Wijnbergen (1989), Edwards (1989) and Goldberg (1994) explored the Latin American currency cr ...
Capital Inflows and Exchange Rate Volatility in Korea
... bring about exchange rate crises. Kawai and Lamberte (2008) investigate how capital inflows create maturity and currency mismatches, and possibly reduce the quality of assets, contributing thereby to greater financial fragility. In this study we focus on capital inflows to Korea, for two reasons. Fi ...
... bring about exchange rate crises. Kawai and Lamberte (2008) investigate how capital inflows create maturity and currency mismatches, and possibly reduce the quality of assets, contributing thereby to greater financial fragility. In this study we focus on capital inflows to Korea, for two reasons. Fi ...
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... other variables in two regions. In terms of the notation in our empirical framework, all these variables would either be included in Ct or be linear combinations of the elements of Ct . The dynamic evolution of these variables can be approximated by a VAR of the form (1).9 The existing approaches th ...
... other variables in two regions. In terms of the notation in our empirical framework, all these variables would either be included in Ct or be linear combinations of the elements of Ct . The dynamic evolution of these variables can be approximated by a VAR of the form (1).9 The existing approaches th ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Economic Policy Coordination
... and, given adjustment costs in firms' demand for labour, this gives rise to a union real wage which is a mark-up over expected non-union real wages and also dependent on lagged union real wages and firms' other cost factors. This real wage target is translated into a one year nominal wage contract o ...
... and, given adjustment costs in firms' demand for labour, this gives rise to a union real wage which is a mark-up over expected non-union real wages and also dependent on lagged union real wages and firms' other cost factors. This real wage target is translated into a one year nominal wage contract o ...
NBER WORKING PAPER SERIES EXPENDITURE SWITCHING VS. REAL EXCHANGE RATE
... objective of achieving terms of trade adjustment. Moreover, when the production functions are not identical (e.g., exhibiting home bias in the use of traded inputs), or when non-traded inputs are used in production, the optimal real exchange rate is not constant. It is nonetheless true that the opti ...
... objective of achieving terms of trade adjustment. Moreover, when the production functions are not identical (e.g., exhibiting home bias in the use of traded inputs), or when non-traded inputs are used in production, the optimal real exchange rate is not constant. It is nonetheless true that the opti ...
NBER WORKING PAPER SERIES DOES OPENNESS TO TRADE MAKE COUNTRIES
... output itself falls depends, of course, primarily on whether wages and prices are flexible. But even in a full-employment world, sharp reductions in consumption are painful. Consider, second, a country that does have the option of nominal and real exchange rate flexibility. In traditional textbook m ...
... output itself falls depends, of course, primarily on whether wages and prices are flexible. But even in a full-employment world, sharp reductions in consumption are painful. Consider, second, a country that does have the option of nominal and real exchange rate flexibility. In traditional textbook m ...
The Sterling Devaluation of 1967, the International
... and Sweden, with the Swiss becoming associate members in 1964) and from the Bank for International Settlements (BIS) in Basle in order to provide itself with financial reserves large enough to protect the exchange rate while it attempted to transform the economy. A large part of this borrowing came ...
... and Sweden, with the Swiss becoming associate members in 1964) and from the Bank for International Settlements (BIS) in Basle in order to provide itself with financial reserves large enough to protect the exchange rate while it attempted to transform the economy. A large part of this borrowing came ...
Identifying the Relationship Between Trade and Exchange Rate
... The empirical findings of this paper provide support for the view that trade depresses real exchange rate volatility. A trading relationship that is 1 percent of GDP greater than the median trade relationship implies that the volatility of the bilateral real exchange rate associated with the intens ...
... The empirical findings of this paper provide support for the view that trade depresses real exchange rate volatility. A trading relationship that is 1 percent of GDP greater than the median trade relationship implies that the volatility of the bilateral real exchange rate associated with the intens ...
Should Switzerland Adopt the Euro
... The experts concur that the adoption of the euro would be costly. Loss of an independent monetary policy Abandoning the Swiss franc for the euro would mean sacrificing an instrument–namely, a domestic monetary policy–useful for mitigating the impact of real economic shocks. Instead of being able to ...
... The experts concur that the adoption of the euro would be costly. Loss of an independent monetary policy Abandoning the Swiss franc for the euro would mean sacrificing an instrument–namely, a domestic monetary policy–useful for mitigating the impact of real economic shocks. Instead of being able to ...
NBER WORKING PAPER SERIES THE SIMPLE GEOMETRY OF TRANSMISSION AND STABILIZATION
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
Malaysia`s September 1998 Controls: Background, Context
... generally more cautious and prudent about financial liberalization, both domestically and internationally. Malaysia experienced a severe banking crisis in the late 1980s, following the mid-1980s’ recession and stock market collapse, when “non-performing loans” (then defined on a six-month basis) rea ...
... generally more cautious and prudent about financial liberalization, both domestically and internationally. Malaysia experienced a severe banking crisis in the late 1980s, following the mid-1980s’ recession and stock market collapse, when “non-performing loans” (then defined on a six-month basis) rea ...
New Consensus Macroeconomics: A Critical Appraisal
... Chapter 2). 6 It is, thus, a forward-looking expectational relationship, which implies that the marginal rate of substitution between current and future consumption, ignoring uncertainty and adjusted for the subjective rate of time discount, is equal to the gross real rate of interest. There are bot ...
... Chapter 2). 6 It is, thus, a forward-looking expectational relationship, which implies that the marginal rate of substitution between current and future consumption, ignoring uncertainty and adjusted for the subjective rate of time discount, is equal to the gross real rate of interest. There are bot ...
New Consensus Macroeconomics: A Critical Appraisal
... Chapter 2).6 It is, thus, a forward-looking expectational relationship, which implies that the marginal rate of substitution between current and future consumption, ignoring uncertainty and adjusted for the subjective rate of time discount, is equal to the gross real rate of interest. There are both ...
... Chapter 2).6 It is, thus, a forward-looking expectational relationship, which implies that the marginal rate of substitution between current and future consumption, ignoring uncertainty and adjusted for the subjective rate of time discount, is equal to the gross real rate of interest. There are both ...
Macroeconomic Policy Responses to Financial
... inflows are especially sensitive to international financial shocks. At the same time, they exert a strong influence on activity in emerging countries, particularly when these latter have current accounts deficits as it’s the case in many emerging European economies. The choice to exclude foreign dir ...
... inflows are especially sensitive to international financial shocks. At the same time, they exert a strong influence on activity in emerging countries, particularly when these latter have current accounts deficits as it’s the case in many emerging European economies. The choice to exclude foreign dir ...
A Primer on Inflation
... and money (i.e., inflationism). The result of this is both today's “growth mania” as well as the “inflation mania”. Central bankers nowadays define price stability as an annual loss of money's purchasing power (as measured by CPI) of close to two percent. It appears fundamentally paradoxical to defi ...
... and money (i.e., inflationism). The result of this is both today's “growth mania” as well as the “inflation mania”. Central bankers nowadays define price stability as an annual loss of money's purchasing power (as measured by CPI) of close to two percent. It appears fundamentally paradoxical to defi ...
Nominal GDP Targeting for Developing Countries
... c. Fall in export price. Many developing countries export commodities that undergo large price swings on world markets. In the case of exchange rate targeting the currency cannot adjust. In the case of CPI targeting, depreciation is also limited as it would boost inflation. Thus the trade balance wo ...
... c. Fall in export price. Many developing countries export commodities that undergo large price swings on world markets. In the case of exchange rate targeting the currency cannot adjust. In the case of CPI targeting, depreciation is also limited as it would boost inflation. Thus the trade balance wo ...
Textbooks and Pure Fiscal Policy: The Neglect of Monetary Basics
... raises aggregate demand, Froyen observes: “At a given level of income, equilibrium in the money market, and therefore in the bond market, is undisturbed by the government spending change” (165). Do these authors omit events in the monetary sector completely? No, but the sector only impinges on the p ...
... raises aggregate demand, Froyen observes: “At a given level of income, equilibrium in the money market, and therefore in the bond market, is undisturbed by the government spending change” (165). Do these authors omit events in the monetary sector completely? No, but the sector only impinges on the p ...
productivity, commodity prices and the real exchange rate
... relates the real exchange rate to home-foreign ratio of productivity in traded relative to nontraded goods. As Canada is an important producer of commodities and its productivity performance is significantly different from that of the U.S., the evidence for the Canada-U.S. real exchange rate provide ...
... relates the real exchange rate to home-foreign ratio of productivity in traded relative to nontraded goods. As Canada is an important producer of commodities and its productivity performance is significantly different from that of the U.S., the evidence for the Canada-U.S. real exchange rate provide ...
Economic Costs of Alternative Monetary Policy Responses During
... unsustainable; (ii) do not attempt to defend the currency and allow the currency to depreciate immediately. The existing literature on currency attacks has shown that the ease with which a currency devaluation can be prevented depends on the economic environment at the time of the attack. Therefore ...
... unsustainable; (ii) do not attempt to defend the currency and allow the currency to depreciate immediately. The existing literature on currency attacks has shown that the ease with which a currency devaluation can be prevented depends on the economic environment at the time of the attack. Therefore ...
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.