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Exchange rate pass-through in central and eastern European
... The issue of ERPT to prices has emerged as a strand of the exchange rate literature over the past thirty years or so, notably since the breakdown of the Bretton Woods system. Exchange rate pass-through reflects the extent to which exchange rate changes are passed on to the local currency prices of t ...
... The issue of ERPT to prices has emerged as a strand of the exchange rate literature over the past thirty years or so, notably since the breakdown of the Bretton Woods system. Exchange rate pass-through reflects the extent to which exchange rate changes are passed on to the local currency prices of t ...
5 The Short-Run IS-LM-FX Model of an Open Economy
... balance in the way we have assumed? The data show that the U.S. trade balance is correlated with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in ...
... balance in the way we have assumed? The data show that the U.S. trade balance is correlated with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATE TARGETING AND MACROECONOMIC INSTABILITY Martín Uribe
... between the current level of the real exchange rate and expected devaluations implied by the model. In a small open economy, the nominal interest rate is, loosely speaking, an increasing function of the expected devaluation rate. Hence, an increase in next period’s expected devaluation rate causes a ...
... between the current level of the real exchange rate and expected devaluations implied by the model. In a small open economy, the nominal interest rate is, loosely speaking, an increasing function of the expected devaluation rate. Hence, an increase in next period’s expected devaluation rate causes a ...
Local versus Producer Currency Pricing: Evidence from
... optimal monetary policy literature, ‡exible exchange rates is the optimal response when prices of traded goods are rigid in the producer’s currency. In contrast, a …xed exchange rate regime becomes optimal when prices are rigid in the consumer’s currency2 . In other words, whether the ECB should be ...
... optimal monetary policy literature, ‡exible exchange rates is the optimal response when prices of traded goods are rigid in the producer’s currency. In contrast, a …xed exchange rate regime becomes optimal when prices are rigid in the consumer’s currency2 . In other words, whether the ECB should be ...
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... Some of the net income gain for residents of the investments to expand mining output will be spent by governments, businesses and households as an increase in Mo and less Xo, or saved to increase Sp and Sg in (1). But, some of the income gain will be spent on non-traded goods and services. These sec ...
... Some of the net income gain for residents of the investments to expand mining output will be spent by governments, businesses and households as an increase in Mo and less Xo, or saved to increase Sp and Sg in (1). But, some of the income gain will be spent on non-traded goods and services. These sec ...
International Economics: Feenstra/Taylor 2/e
... combinations of i and Y that are consistent with money market equilibrium in panel (a). Copyright © 2011 Worth Publishers· International Economics· Feenstra/Taylor, 2/e. 27 of 93 ...
... combinations of i and Y that are consistent with money market equilibrium in panel (a). Copyright © 2011 Worth Publishers· International Economics· Feenstra/Taylor, 2/e. 27 of 93 ...
Exchange rates, expected returns and risk: UIP unbound CAMA
... The next section derives an asset price model of the exchange rate, incorporating consumption risk premia. Section 3 describes the empirical identification strategy and the data, and explains how forecasts of expected real interest returns are constructed. Section 4 presents the estimation results, a ...
... The next section derives an asset price model of the exchange rate, incorporating consumption risk premia. Section 3 describes the empirical identification strategy and the data, and explains how forecasts of expected real interest returns are constructed. Section 4 presents the estimation results, a ...
1 AP Macroeconomics Chapter One p. 3
... demand with the supply that they produce with the resources sold. The interaction of demand for goods and services with the supply of available products determines the price for the products. The flow of consumer expenditures represent the sales revenues or receipts of the businesses. Examples are t ...
... demand with the supply that they produce with the resources sold. The interaction of demand for goods and services with the supply of available products determines the price for the products. The flow of consumer expenditures represent the sales revenues or receipts of the businesses. Examples are t ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
... exchange market to stabilize (and sometimes defend) the nominal exchange rate in the face of volatile capital flows. Then they have to follow this action by sterilizing these capital flows in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate ha ...
... exchange market to stabilize (and sometimes defend) the nominal exchange rate in the face of volatile capital flows. Then they have to follow this action by sterilizing these capital flows in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate ha ...
Foreign Exchange Market Organization in Selected
... those countries that peg the value of their currencies to other foreign currencies. For example, the euro explains close to 70 percent of the foreign exchange market turnover in countries firmly pegging their currencies to the euro, like Estonia and Bulgaria. Appendix Table 4 illustrates the share o ...
... those countries that peg the value of their currencies to other foreign currencies. For example, the euro explains close to 70 percent of the foreign exchange market turnover in countries firmly pegging their currencies to the euro, like Estonia and Bulgaria. Appendix Table 4 illustrates the share o ...
Chapter 5. Classifications
... If so, how much detail? (iii) Should they be standard or supplementary items?] ...
... If so, how much detail? (iii) Should they be standard or supplementary items?] ...
Sources of Inflation in Developing Countries: Abstract
... choices taken by the central bank) or from other sources (i.e., financial inflows linked to capital, external debt, or transfers which enter the domestic money supply). For some African countries, the nominal exchange rate and imported ...
... choices taken by the central bank) or from other sources (i.e., financial inflows linked to capital, external debt, or transfers which enter the domestic money supply). For some African countries, the nominal exchange rate and imported ...
Effects of the Exchange Rate on Output and Price Level:Evidence
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
Does globalization alter the monetary transmission mechanism?
... LCP also limits the possible effect of relative import prices on inflation dynamics. Consequently, it is only by simultaneously increasing openness and lowering the extent of LCP, that we find fairly strong changes in the monetary transmission mechanism. We find that the effect of the policy shock o ...
... LCP also limits the possible effect of relative import prices on inflation dynamics. Consequently, it is only by simultaneously increasing openness and lowering the extent of LCP, that we find fairly strong changes in the monetary transmission mechanism. We find that the effect of the policy shock o ...
the importance of an efficient allocation of
... of the dangers of an obsession with the competitiveness of a country. The European Commission also has its own definition of this concept, perhaps the broadest and most abstract, which associates improvements in competitiveness with increases in living standards accompanied by the lowest possible le ...
... of the dangers of an obsession with the competitiveness of a country. The European Commission also has its own definition of this concept, perhaps the broadest and most abstract, which associates improvements in competitiveness with increases in living standards accompanied by the lowest possible le ...
Free Full text
... SONA initiatives entailed substantial fiscal costs, around 3 percent of GDP on a full-year basis. The 2017 budget, submitted to the parliament, includes some measures to moderate the expansionary impact of the SONA initiatives. However, given that the 2017 budget includes several one-off measures, a ...
... SONA initiatives entailed substantial fiscal costs, around 3 percent of GDP on a full-year basis. The 2017 budget, submitted to the parliament, includes some measures to moderate the expansionary impact of the SONA initiatives. However, given that the 2017 budget includes several one-off measures, a ...
Contents of the course - Solvay Brussels School
... Next, at present, developing countries need to run a surplus to finance the net repayment of debt. • The short timescale and limited resources leads to the use of instrument that operates quickly, like demand reduction, contrary to longer-term policies like supply-side structural reforms. • Argument ...
... Next, at present, developing countries need to run a surplus to finance the net repayment of debt. • The short timescale and limited resources leads to the use of instrument that operates quickly, like demand reduction, contrary to longer-term policies like supply-side structural reforms. • Argument ...
Sawyer/Sprinkle Chapter 18
... flow into the country as domestic and foreign investors would tend to invest less and domestic investors would tend to invest more capital abroad The net result would be an outflow of capital from domestic economy and the supply of loanable funds would decrease lowering interest rates A contractiona ...
... flow into the country as domestic and foreign investors would tend to invest less and domestic investors would tend to invest more capital abroad The net result would be an outflow of capital from domestic economy and the supply of loanable funds would decrease lowering interest rates A contractiona ...
DP2006/05 Should Monetary Policy Attempt to Reduce Exchange Rate Volatility in New Zealand?
... more stable inflation, output, and interest rates. The exchange rate, however, has remained quite volatile. This has prompted questions about whether a less activist monetary policy could, or should, attenuate exchange rate volatility. To date, the economic literature has suggested that using intere ...
... more stable inflation, output, and interest rates. The exchange rate, however, has remained quite volatile. This has prompted questions about whether a less activist monetary policy could, or should, attenuate exchange rate volatility. To date, the economic literature has suggested that using intere ...
Chapter 19
... • PLT would then require a strong contractionary policy in order to decrease prices in non-oil sectors until the average price level returned to its original path • In this case, it might be better to let bygones be bygones, and start a new target path at A ...
... • PLT would then require a strong contractionary policy in order to decrease prices in non-oil sectors until the average price level returned to its original path • In this case, it might be better to let bygones be bygones, and start a new target path at A ...
Modelling and Forecasting the Indian Re/US Dollar Exchange Rate
... long-run, PPP holds in equilibrium. However, many of the recent studies like Jacobson, Lyhagen, Larsson and Nessen (2002) find deviations from PPP even in the long-run. Reasons for the failure of PPP have been attributed to heterogeneity in the baskets of goods considered for construction of price ...
... long-run, PPP holds in equilibrium. However, many of the recent studies like Jacobson, Lyhagen, Larsson and Nessen (2002) find deviations from PPP even in the long-run. Reasons for the failure of PPP have been attributed to heterogeneity in the baskets of goods considered for construction of price ...
Dollar Adjustment - Peterson Institute for International Economics
... sterilized intervention in the currency markets represented an additional policy instrument to influence exchange rates. The only widespread agreement was that countries should avoid intervening in ways that prevent market forces from pushing rates in equilibrating directions. In particular, concern ...
... sterilized intervention in the currency markets represented an additional policy instrument to influence exchange rates. The only widespread agreement was that countries should avoid intervening in ways that prevent market forces from pushing rates in equilibrating directions. In particular, concern ...
M o n e t a r y ... Contents 1 September 2003
... The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5 per cent. New Zealand has enjoyed an extended period of strong economic growth. Signs that growth is slowing, which will reduce inflationary pressures, have led us to cut the OCR on several occasions this year, adding stimul ...
... The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5 per cent. New Zealand has enjoyed an extended period of strong economic growth. Signs that growth is slowing, which will reduce inflationary pressures, have led us to cut the OCR on several occasions this year, adding stimul ...
NBER WORKING PAPERS SERIES STABILIZATION AND POLICIES IN CENTRAL AND EASTERN EUROPE:
... case of Chile. The reasons for focusing on Chile are several: first in 1973 Chile faced initial conditions that in some respects, are as close to those of Eastern Europe as they can possibly be; second, during the last 15 years Chile experimented with a series of alternative policies, providing a fa ...
... case of Chile. The reasons for focusing on Chile are several: first in 1973 Chile faced initial conditions that in some respects, are as close to those of Eastern Europe as they can possibly be; second, during the last 15 years Chile experimented with a series of alternative policies, providing a fa ...
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.