“New” Views on the Optimum Currency Area Theory: What
... 2.c Financial market integration. Ingram (1962) noted that the mobility of financial resources can ease the financing of external imbalances -- e.g., in the aftermath of a shock -and reduce the need for exchange rate adjustments. Households and firms could more easily decumulate financial assets or ...
... 2.c Financial market integration. Ingram (1962) noted that the mobility of financial resources can ease the financing of external imbalances -- e.g., in the aftermath of a shock -and reduce the need for exchange rate adjustments. Households and firms could more easily decumulate financial assets or ...
No:10 Research Department Working Paper
... Turkish economy and policies2 1) Import-export policy and exchange rate An attempt to revert import-substitution policy in 1970s was to pursue export-incentives policy from 1980 onwards. The policy includes maintained depreciation in real exchange rate to enhance competitiveness. Depreciation rate ...
... Turkish economy and policies2 1) Import-export policy and exchange rate An attempt to revert import-substitution policy in 1970s was to pursue export-incentives policy from 1980 onwards. The policy includes maintained depreciation in real exchange rate to enhance competitiveness. Depreciation rate ...
S2000005_en.pdf
... funds, and risks linked to currency mismatches and to the term structure of external liabilities. The purpose of this article is to emphasize the links between external vulnerability and excess domestic expenditure explained by private sector behaviour. The motivation is based on the feature that at ...
... funds, and risks linked to currency mismatches and to the term structure of external liabilities. The purpose of this article is to emphasize the links between external vulnerability and excess domestic expenditure explained by private sector behaviour. The motivation is based on the feature that at ...
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... fact be an even more dramatic rise in the euro. European growth has accelerated relative to US growth. Euroland interest rates have been rising while US rates are falling. The euro is moving up alongside the dollar as a global currency and portfolios around the world, both private and official, are ...
... fact be an even more dramatic rise in the euro. European growth has accelerated relative to US growth. Euroland interest rates have been rising while US rates are falling. The euro is moving up alongside the dollar as a global currency and portfolios around the world, both private and official, are ...
Testing for efficiency and rationality in foreign exchange markets—a
... Moments), popularized by Hansen (1982), which are used to correct the biases resulting from overlapping in data sets. The difference is in the way of obtaining correct estimates for the parameters involved and not in the hypothesis itself. The hypothesis H0 is equivalent to Et{st ⫹ t} ⫽ ft, where Et ...
... Moments), popularized by Hansen (1982), which are used to correct the biases resulting from overlapping in data sets. The difference is in the way of obtaining correct estimates for the parameters involved and not in the hypothesis itself. The hypothesis H0 is equivalent to Et{st ⫹ t} ⫽ ft, where Et ...
English
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...
NBER WORKING PAPER SERIES THE NEED FOR INTERNATIONAL POLICY COORDINATION:
... Fifty years ago, during the Bretton Woods era, the Chicago School asserted that a flexible exchange rate would insulate domestic employment from foreign economic disturbances, including foreign monetary policy.1 There is no need, they argued, for central banks to intervene in foreign exchange market ...
... Fifty years ago, during the Bretton Woods era, the Chicago School asserted that a flexible exchange rate would insulate domestic employment from foreign economic disturbances, including foreign monetary policy.1 There is no need, they argued, for central banks to intervene in foreign exchange market ...
The Causes and Effects of China`s Double Surplus of Balance of
... and they are not in surplus during the same period. But China is an exception. For current accounts, surplus usually appears at the result of more export than import; for capital and financial accounts, it is caused by more FDI inflow than domestic capital outflow. As discussed above, current accoun ...
... and they are not in surplus during the same period. But China is an exception. For current accounts, surplus usually appears at the result of more export than import; for capital and financial accounts, it is caused by more FDI inflow than domestic capital outflow. As discussed above, current accoun ...
Sterilized Interventions and Capital Controls
... able to in uence interest rates, as is typically the case in these models. In addition, they will also be able to in uence a nation's real exchange rate and terms of trade through the foreign bonds they acquire in their sterilized interventions. Capital controls allow sterilization policies to have ...
... able to in uence interest rates, as is typically the case in these models. In addition, they will also be able to in uence a nation's real exchange rate and terms of trade through the foreign bonds they acquire in their sterilized interventions. Capital controls allow sterilization policies to have ...
Presentation Outline
... Net NKI Restricting Measures Net Private Capital Inflows Note: Net private capital inflows exclude FDI flows and government and monetary authority transactions from “other” inflows and outflows. Net NKI restricting measures is the difference between NKI reducing capital control actions (inflow tight ...
... Net NKI Restricting Measures Net Private Capital Inflows Note: Net private capital inflows exclude FDI flows and government and monetary authority transactions from “other” inflows and outflows. Net NKI restricting measures is the difference between NKI reducing capital control actions (inflow tight ...
New Zealand’s short- and medium-term real implications
... An earlier version of this paper was presented at the Reserve Bank / Treasury Exchange Rate Policy Forum held on 26 March 2013 in Wellington: http://www.rbnz.govt.nz/research/workshops/Mar2013/programme.html ...
... An earlier version of this paper was presented at the Reserve Bank / Treasury Exchange Rate Policy Forum held on 26 March 2013 in Wellington: http://www.rbnz.govt.nz/research/workshops/Mar2013/programme.html ...
What Does Monetary Policy Do?
... identifiedVAR model. Called recursive, this kind of system is a wellrecognizedspecial case in the simultaneousequationsliterature.5In this two-variableversion, a single linearrestrictionon any of the four coefficients in AO,together with the usual identified VAR restrictionthat the es are uncorrelat ...
... identifiedVAR model. Called recursive, this kind of system is a wellrecognizedspecial case in the simultaneousequationsliterature.5In this two-variableversion, a single linearrestrictionon any of the four coefficients in AO,together with the usual identified VAR restrictionthat the es are uncorrelat ...
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Governance, Regulation, and Privatization
... promote rapid growth, there is a question about how policymakers should react. This leads us to the fourth point. In the event of a crisis the amount of nonperforming loans increases dramatically. If the bad loans are recognized, the most likely outcome is that the government will have to take over ...
... promote rapid growth, there is a question about how policymakers should react. This leads us to the fourth point. In the event of a crisis the amount of nonperforming loans increases dramatically. If the bad loans are recognized, the most likely outcome is that the government will have to take over ...
The Feasibility of a Monetary Union in MERCOSUR
... in trade. Reuven Glick and Andrew K. Rose estimate that “bilateral trade approximately doubles/halves as a pair of countries forms/dissolves a currency union” in their paper titled: “Does a Currency Union affect Trade? The Time Series Evidence”5. A currency union causes trade to increase for several ...
... in trade. Reuven Glick and Andrew K. Rose estimate that “bilateral trade approximately doubles/halves as a pair of countries forms/dissolves a currency union” in their paper titled: “Does a Currency Union affect Trade? The Time Series Evidence”5. A currency union causes trade to increase for several ...
the full speech by Dr. Mahamudu Bawumia
... Indeed, cocoa and gold prices were 50% higher in the period 20092014 than the 2001-2008 period. Ghana has also become an oil exporter during the period of the NDC government. Ghana has exported $13.7 billion of oil in the last four years and has earned some $3 billion from oil during this period ...
... Indeed, cocoa and gold prices were 50% higher in the period 20092014 than the 2001-2008 period. Ghana has also become an oil exporter during the period of the NDC government. Ghana has exported $13.7 billion of oil in the last four years and has earned some $3 billion from oil during this period ...
Targeting Constant Money Growth at the Zero
... conversely, when it wished to ease, it lowered its funds rate target. After the target was reduced to a range of 0 to 0.25 percent in December 2008, however, the zero lower bound on the federal funds rate forced the Fed to look for other ways of providing additional monetary stimulus to help output ...
... conversely, when it wished to ease, it lowered its funds rate target. After the target was reduced to a range of 0 to 0.25 percent in December 2008, however, the zero lower bound on the federal funds rate forced the Fed to look for other ways of providing additional monetary stimulus to help output ...
Persistent Macroeconomic Imbalances in the Euro Area: Causes
... rates and in private investment and savings rates across countries. Then, current account imbalances would require neither special attention nor government intervention. It then comes down to the question of how much confidence one has in the underlying assumptions of rationality, sufficient economi ...
... rates and in private investment and savings rates across countries. Then, current account imbalances would require neither special attention nor government intervention. It then comes down to the question of how much confidence one has in the underlying assumptions of rationality, sufficient economi ...
German Monetary Policy in the Second Half
... government interventions necessary for bilateral clearing. By making the members jointly responsible for the credit of each member, the EPU allowed consolidation of a member’s transactions into a single overall net claim on the EPU. Whether overall the Marshall Plan encouraged free trade is unclear. ...
... government interventions necessary for bilateral clearing. By making the members jointly responsible for the credit of each member, the EPU allowed consolidation of a member’s transactions into a single overall net claim on the EPU. Whether overall the Marshall Plan encouraged free trade is unclear. ...
Incomplete Exchange Rate Pass-Through and Simple - S
... of the lagged interest rate and the deviations of CPI inflation and output (and possibly the exchange rate) from their zero targets.9 Equation (7a), setting ρ = 0, is the simple rule suggested by Taylor (1993), while Clarida et al. (2000) advocate that the persistence parameter, ρ, is typically 0.8- ...
... of the lagged interest rate and the deviations of CPI inflation and output (and possibly the exchange rate) from their zero targets.9 Equation (7a), setting ρ = 0, is the simple rule suggested by Taylor (1993), while Clarida et al. (2000) advocate that the persistence parameter, ρ, is typically 0.8- ...
This PDF is a selection from an out-of-print volume from the... of Economic Research Volume Title: International Economic Cooperation
... a theoretical literature that draws on the theory of games. Conditions under which coordination may even worsen economic performance have been identified. However, empirical work based on applications of these models implies that the potential gains from coordinating policies may be quite small. The ...
... a theoretical literature that draws on the theory of games. Conditions under which coordination may even worsen economic performance have been identified. However, empirical work based on applications of these models implies that the potential gains from coordinating policies may be quite small. The ...
TRANSACTION COSTS, MULTIPLE EQUILIBRIA, AND THE
... model to discuss the unemployment problem. In Diamond (1982) model, he claimed that the trader only finds his trading partners through searching procedure (the probability for finding the trading partners is a stochastic process). Because of the stochastic process, the search externality is found in ...
... model to discuss the unemployment problem. In Diamond (1982) model, he claimed that the trader only finds his trading partners through searching procedure (the probability for finding the trading partners is a stochastic process). Because of the stochastic process, the search externality is found in ...
Foreign-exchange reserves
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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.