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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 ...
Here - Levy Economics Institute of Bard College
... In this framework however, a decline in inflation and output volatility simultaneously cannot be the result of a new mix of policy preferences. As Bernanke (2004) argues, the coincident decline in volatility could be because prior to the Great Moderation, policy operated to the left of the Taylor c ...
... In this framework however, a decline in inflation and output volatility simultaneously cannot be the result of a new mix of policy preferences. As Bernanke (2004) argues, the coincident decline in volatility could be because prior to the Great Moderation, policy operated to the left of the Taylor c ...
NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
DP2007/10 Understanding the New Zealand Current Account: A Structural Approach
... that are non-separable in consumption and leisure, imperfect capital mobility, capital accumulation with investment adjustment costs, a high rate of time preference, a permanent shock to technology, and three transitory shocks – to government spending, the world real interest rate and the terms of t ...
... that are non-separable in consumption and leisure, imperfect capital mobility, capital accumulation with investment adjustment costs, a high rate of time preference, a permanent shock to technology, and three transitory shocks – to government spending, the world real interest rate and the terms of t ...
A Sentiment-based Explanation of the Forward Premium Puzzle*
... future fundamentals, and agents can be optimistic (i.e., high sentiment) or pessimistic (i.e., low sentiment) about future endowment growth. When domestic sentiment is high, it means that both the home and foreign agents are optimistic about future U.S. endowment growth.1 When agents are optimistic ...
... future fundamentals, and agents can be optimistic (i.e., high sentiment) or pessimistic (i.e., low sentiment) about future endowment growth. When domestic sentiment is high, it means that both the home and foreign agents are optimistic about future U.S. endowment growth.1 When agents are optimistic ...
Rules- Based International Monetary Reform
... emerging market countries. However, currency interventions can have adverse side effects even if they temporarily prevent appreciation. If they are not accompanied by capital controls, they require a change in monetary policy (nonsterilization) to be effective. The spread of macroprudential policies ...
... emerging market countries. However, currency interventions can have adverse side effects even if they temporarily prevent appreciation. If they are not accompanied by capital controls, they require a change in monetary policy (nonsterilization) to be effective. The spread of macroprudential policies ...
Exchange Rate Policies in Arab Countries
... The exchange rate matters since it is an important price in the economy. Changes can cause substantial reallocation of resources and production between the tradeable and non-tradeable sectors of the economy. But rarely is the exchange rate seen for what it is: a relative price that, like any other, ...
... The exchange rate matters since it is an important price in the economy. Changes can cause substantial reallocation of resources and production between the tradeable and non-tradeable sectors of the economy. But rarely is the exchange rate seen for what it is: a relative price that, like any other, ...
The transmission of US shocks to Latin America
... address questions concerning sources of hyperinflations, currency crises and massive recessions which have repeatedly plagued Latin American economies over the last 30 years. Studying the propagation of shocks in ‘normal times’ is important for two reasons. First, there are large and interesting eco ...
... address questions concerning sources of hyperinflations, currency crises and massive recessions which have repeatedly plagued Latin American economies over the last 30 years. Studying the propagation of shocks in ‘normal times’ is important for two reasons. First, there are large and interesting eco ...
Lecture15 - UCSB Economics
... citizens & institutions buy in primary market foreign citizens & institutions buy in primary market ...
... citizens & institutions buy in primary market foreign citizens & institutions buy in primary market ...
Foreign Exchange Risk Management Practices
... in other national markets. The fluctuations in currencies and exchange rates can have a huge effect on a company’s cash flows when doing business abroad. Therefore, when companies manage their foreign exchange risk, they have to be familiar with all the methods and tools available in order to pick t ...
... in other national markets. The fluctuations in currencies and exchange rates can have a huge effect on a company’s cash flows when doing business abroad. Therefore, when companies manage their foreign exchange risk, they have to be familiar with all the methods and tools available in order to pick t ...
Broadly speaking, there are two opposing views on the relationship
... 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 Federal Reserve in a Globalized World Economy John B. Taylor
... In such a model, the problem for the central bank is to decide how to respond to shocks and fluctuations in the economy while not creating its own shocks and disturbances either domestically or internationally. By choosing the size of its response coefficients, it can affect the relative amount of p ...
... In such a model, the problem for the central bank is to decide how to respond to shocks and fluctuations in the economy while not creating its own shocks and disturbances either domestically or internationally. By choosing the size of its response coefficients, it can affect the relative amount of p ...
Why Trade Forex
... were a successful currency trader? If you were you would have a trading plan that included these three important keys. You would have a reliable forex trading system. You would be "disciplined" not deviating from your trading system. Finally you would have a money management system to protect your i ...
... were a successful currency trader? If you were you would have a trading plan that included these three important keys. You would have a reliable forex trading system. You would be "disciplined" not deviating from your trading system. Finally you would have a money management system to protect your i ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... likely to be more important to the central bank. To preview, I find that if globalization really does proceed that far, central banks’ ability to achieve their objectives may be substantially constrained. I also find that the constraint is asymmetric: the circulation of multiple currencies limits a ...
... likely to be more important to the central bank. To preview, I find that if globalization really does proceed that far, central banks’ ability to achieve their objectives may be substantially constrained. I also find that the constraint is asymmetric: the circulation of multiple currencies limits a ...
The Case against Capital Controls Free-Trade Argument Executive Summary
... and to restrictions on citizens’ or foreign investors’ taking money out of a country. While very few nations have in place the draconian controls that were in place before the fall of communism (such as an inconvertible national currency or laws against carrying foreign exchange), many developing na ...
... and to restrictions on citizens’ or foreign investors’ taking money out of a country. While very few nations have in place the draconian controls that were in place before the fall of communism (such as an inconvertible national currency or laws against carrying foreign exchange), many developing na ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS: HOW TO AVOID THEM AND
... two advantages. First, the exposition in simpler. Second, it is what central banks actually do. Changes in reserve requirements, open market operations etc. arebest viewed as ways of changing the interest rate. .In an open economy, the other institutionally relevant instrument of monetary policy is ...
... two advantages. First, the exposition in simpler. Second, it is what central banks actually do. Changes in reserve requirements, open market operations etc. arebest viewed as ways of changing the interest rate. .In an open economy, the other institutionally relevant instrument of monetary policy is ...
empirical investigation of the relationship between exchange rate
... There is a support of empirical literature which is in favour of argument that there is no significant link of stock volatility with fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United ...
... There is a support of empirical literature which is in favour of argument that there is no significant link of stock volatility with fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United ...
Inflation in Latin American Countries
... payments (structuralist) and the money supply (monetarist). If a country has a fixed exchange rate, the central bank manipulates the money supply only to keep the exchange rate constant. Monetary policy in this case is rendered ineffective for uses other than controlling the exchange rate. If a coun ...
... payments (structuralist) and the money supply (monetarist). If a country has a fixed exchange rate, the central bank manipulates the money supply only to keep the exchange rate constant. Monetary policy in this case is rendered ineffective for uses other than controlling the exchange rate. If a coun ...
CON/2016/49 - ECB
... exchanged into legally established currencies. They could also be used to purchase goods and services, without requiring an exchange into a legal currency or the use of a custodial wallet provider. Such transactions would not be covered by any of the control measures provided for in the proposal and ...
... exchanged into legally established currencies. They could also be used to purchase goods and services, without requiring an exchange into a legal currency or the use of a custodial wallet provider. Such transactions would not be covered by any of the control measures provided for in the proposal and ...
Currency Crises, Capital Account Liberalization
... vulnerability, but in fact with a greater vulnerability to currency crises concerns the special characteristics and “self selection” of countries that choose to liberalize their capital accounts. Countries with macroeconomic imbalances, financial weaknesses, political instability, and/or institution ...
... vulnerability, but in fact with a greater vulnerability to currency crises concerns the special characteristics and “self selection” of countries that choose to liberalize their capital accounts. Countries with macroeconomic imbalances, financial weaknesses, political instability, and/or institution ...
How big (small?) are fiscal multipliers?
... wars have been fought primarily on foreign soil and have not involved significant direct losses of productive capital, this is certainly not the case in developing or smaller developed countries. Identifying government consumption through military purchases would risk conflating the effects of governm ...
... wars have been fought primarily on foreign soil and have not involved significant direct losses of productive capital, this is certainly not the case in developing or smaller developed countries. Identifying government consumption through military purchases would risk conflating the effects of governm ...
Feasibility of a Monetary Union in the East African Community
... Abstract—The aim of this paper is to assess the suitability of a monetary union among the East African Community (EAC) members. EAC consists of five neighbouring countries situated in the eastern part of Africa, which include Burundi, Kenya, Rwanda, Tanzania and Uganda. The methodological approach o ...
... Abstract—The aim of this paper is to assess the suitability of a monetary union among the East African Community (EAC) members. EAC consists of five neighbouring countries situated in the eastern part of Africa, which include Burundi, Kenya, Rwanda, Tanzania and Uganda. The methodological approach o ...
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.