The Cost-benefit Analysis on International Reserve Currency Status
... market with history, and with the traditional advantages in the international business, Sterling still has a considerable influence. In addition, Yen, Australia Dollar, Swiss Franc and other currencies also play important roles in the IRC system. According to statistics made by International Monetar ...
... market with history, and with the traditional advantages in the international business, Sterling still has a considerable influence. In addition, Yen, Australia Dollar, Swiss Franc and other currencies also play important roles in the IRC system. According to statistics made by International Monetar ...
SERIES PRICING TO MARKET JAPANESE MANUFACTURING Richard
... These markup elasticities can be positive, negative, or equai to ...
... These markup elasticities can be positive, negative, or equai to ...
Feenstra ch 18
... are equal. In this example, the dollar interest rate is 5%, the euro interest rate is 3%, and the expected future exchange rate (one year ahead) is = 1.224 $/€. The equilibrium is highlighted in bold type, where both returns are 5% in annual dollar terms. Figure 12-2 plots the domestic and foreign r ...
... are equal. In this example, the dollar interest rate is 5%, the euro interest rate is 3%, and the expected future exchange rate (one year ahead) is = 1.224 $/€. The equilibrium is highlighted in bold type, where both returns are 5% in annual dollar terms. Figure 12-2 plots the domestic and foreign r ...
NBER WORKING PAPER SERIES GLOBALIZATION, MACROECONOMIC PERFORMANCE, AND MONETARY POLICY Frederic S. Mishkin
... These effects from the greater price flexibility and increased competition in domestic markets that have arisen from globalization, while theoretically plausible, are often at variance with salient features of the world economy, and so they do not explain why inflation has declined in recent years. ...
... These effects from the greater price flexibility and increased competition in domestic markets that have arisen from globalization, while theoretically plausible, are often at variance with salient features of the world economy, and so they do not explain why inflation has declined in recent years. ...
The exchange rate effect of multi-currency risk arbitrage
... As a consequence exchange rate models with a direct and linear adjustment towards the fundamental exchange rate are likely to be misspecified. Such misspecification should be particularly pronounced in a world of carry trade strategies which typically involve a portfolio of currencies so that risk hed ...
... As a consequence exchange rate models with a direct and linear adjustment towards the fundamental exchange rate are likely to be misspecified. Such misspecification should be particularly pronounced in a world of carry trade strategies which typically involve a portfolio of currencies so that risk hed ...
Mexico - Banco de México
... income taxes (related to the 2013 tax reform) and by the oil-price hedge of oil export receipts. At the same time, monetary policy conditions remain very accommodative. The Bank of Mexico has maintained the policy rate at 3 percent since June last year. The Foreign Exchange Commission has reactivate ...
... income taxes (related to the 2013 tax reform) and by the oil-price hedge of oil export receipts. At the same time, monetary policy conditions remain very accommodative. The Bank of Mexico has maintained the policy rate at 3 percent since June last year. The Foreign Exchange Commission has reactivate ...
Chapter 16 Output and the Exchange Rate in the Short Run
... • A permanent fiscal expansion changes the long-run expected exchange rate. – If the economy starts at long-run equilibrium, a permanent change in fiscal policy has no effect on output. – It causes an immediate and permanent exchange rate jump that offsets exactly the fiscal policy’s direct effect o ...
... • A permanent fiscal expansion changes the long-run expected exchange rate. – If the economy starts at long-run equilibrium, a permanent change in fiscal policy has no effect on output. – It causes an immediate and permanent exchange rate jump that offsets exactly the fiscal policy’s direct effect o ...
Exchange Rate Forecasting, Order Flow and Macroeconomic
... number of important hurdles remain on the route towards understanding exchange rate behavior. First, while the emphasis of this literature has primarily been on explaining exchange rate movements with order ‡ow, the Meese-Rogo¤ robust …ndings that no available information is useful in forecasting ex ...
... number of important hurdles remain on the route towards understanding exchange rate behavior. First, while the emphasis of this literature has primarily been on explaining exchange rate movements with order ‡ow, the Meese-Rogo¤ robust …ndings that no available information is useful in forecasting ex ...
How Does a Depreciation in the Exchange Rate Affect Trade
... Lower prices in the domestic country will generally increase foreign demand for domestic country’s good, but only if the foreign elasticity of demand is elastic. If the foreign elasticity of demand for domestic goods is inelastic the quantity of domestic goods will not increase to the extent that i ...
... Lower prices in the domestic country will generally increase foreign demand for domestic country’s good, but only if the foreign elasticity of demand is elastic. If the foreign elasticity of demand for domestic goods is inelastic the quantity of domestic goods will not increase to the extent that i ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Why, asymmetrically, should continual yen appreciation against the dollar be a forcing variable in determining the Japanese price level but not the American one? Because of the United States' large size and history as the center country in the world payments system, the U.S. Federal Reserve System ( ...
... Why, asymmetrically, should continual yen appreciation against the dollar be a forcing variable in determining the Japanese price level but not the American one? Because of the United States' large size and history as the center country in the world payments system, the U.S. Federal Reserve System ( ...
Welfare Costs of Inflation and the Circulation of US Currency Abroad
... agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real appreciation of the foreign claims (implied by the currency holdings abroad). SchmittGrohé and Uribe (2009) conclude that, under standard parameter calibratio ...
... agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real appreciation of the foreign claims (implied by the currency holdings abroad). SchmittGrohé and Uribe (2009) conclude that, under standard parameter calibratio ...
The role of asymmetric information among investors in
... The foreign exchange market is composed of three major players: dealers, brokers, and customers. Customers are investors and they are the ultimate end-users of currency. They trigger the initial currency exchange by placing buy or sell orders with dealers. Dealers are intermediaries in the market an ...
... The foreign exchange market is composed of three major players: dealers, brokers, and customers. Customers are investors and they are the ultimate end-users of currency. They trigger the initial currency exchange by placing buy or sell orders with dealers. Dealers are intermediaries in the market an ...
The effects of asymmetric information between borrowers and Iris Claus
... Households pay taxes on their wage and rental incomes. For simplicity, households’ interest and dividend incomes and capital gains from exchange rate and capital price movements are not taxed. The tax rate imposed by the government is given by τ . The typical household’s budget constraint is thus gi ...
... Households pay taxes on their wage and rental incomes. For simplicity, households’ interest and dividend incomes and capital gains from exchange rate and capital price movements are not taxed. The tax rate imposed by the government is given by τ . The typical household’s budget constraint is thus gi ...
Monetary Unions, External Shocks and Economic Performance
... Political coordination across countries. ...
... Political coordination across countries. ...
Financial sector reforms and interest rate
... Central Bank of Kenya was established by an Act of Parliament with only 10 (mainly foreign owned) commercial banks. The set goal for the financial sector was to ensure its growth and stability so that it could stimulate growth in other sectors of the economy thus achieving a high economic growth ra ...
... Central Bank of Kenya was established by an Act of Parliament with only 10 (mainly foreign owned) commercial banks. The set goal for the financial sector was to ensure its growth and stability so that it could stimulate growth in other sectors of the economy thus achieving a high economic growth ra ...
empirical studies of nigeria`s foreign exchange parallel market ii
... existence of profitable trading opportunities based on the apparent weak-form inefficiency of the Nigerian foreign exchange parallel market. Second, we investigate the presence of destabilizing speculative activities. An asset market is efficient if prices fully reflect all available information so ...
... existence of profitable trading opportunities based on the apparent weak-form inefficiency of the Nigerian foreign exchange parallel market. Second, we investigate the presence of destabilizing speculative activities. An asset market is efficient if prices fully reflect all available information so ...
A Fast-Track East African Community Monetary Union?
... of consistent long term interest rate data. The monetary aggregate is preferred over other broader aggregates because it is less diluted by intervention by other agents in the financial system, and better able to capture the central bank’s policy stance. Indicators of fiscal convergence, such as the ...
... of consistent long term interest rate data. The monetary aggregate is preferred over other broader aggregates because it is less diluted by intervention by other agents in the financial system, and better able to capture the central bank’s policy stance. Indicators of fiscal convergence, such as the ...
The Interactions of Strength of Governments and Alternative
... pointed out that the unholy trinity analysis didn’t rule out the possibility of a stable middle since exchange rate and monetary policies could be mutually adjusted to each other, thus avoiding the emergence of fundamental disequilibria which are the most common cause of currency crises. In a subseq ...
... pointed out that the unholy trinity analysis didn’t rule out the possibility of a stable middle since exchange rate and monetary policies could be mutually adjusted to each other, thus avoiding the emergence of fundamental disequilibria which are the most common cause of currency crises. In a subseq ...
Monetary Policy under Alternative Asset Market Structures: the Case
... In a complete markets setting, Benigno and Benigno (2003) explore the consequences of such internal and external distortions for optimal monetary policy in a stochastic twocountry framework. De Paoli (2008) and Faia and Monacelli (2008) present a similar analysis in a small open economy setting.3 Th ...
... In a complete markets setting, Benigno and Benigno (2003) explore the consequences of such internal and external distortions for optimal monetary policy in a stochastic twocountry framework. De Paoli (2008) and Faia and Monacelli (2008) present a similar analysis in a small open economy setting.3 Th ...
Chapter 12
... • covers receipts and payments of income associated, respectively, with residents’ holdings of external financial assets and with residents’ liabilities to nonresidents. Investment income consists of direct investment income, portfolio investment income, and other investment income. The direct inves ...
... • covers receipts and payments of income associated, respectively, with residents’ holdings of external financial assets and with residents’ liabilities to nonresidents. Investment income consists of direct investment income, portfolio investment income, and other investment income. The direct inves ...
The Costs of Losing Monetary Independence: The Case of Mexico1
... The reasoning behind the optimality of a higher inflation rate for Mexico is quite straightforward. In this environment, because of frictions in the household portfolios, the policy maker has the ability to control the domestic interest rate. A nominal interest rate increase affects output and cons ...
... The reasoning behind the optimality of a higher inflation rate for Mexico is quite straightforward. In this environment, because of frictions in the household portfolios, the policy maker has the ability to control the domestic interest rate. A nominal interest rate increase affects output and cons ...
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.