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Monetary policy and inflation in South Africa: Annari de Waal
... rate to be affected by the interest rate differential and purchasing power parity) and a change in the repo rate with a Taylor-type monetary policy reaction function added to the model (which will further allow the repo rate to adjust to domestic output and inflation). Smal and De Jager (2001) confi ...
... rate to be affected by the interest rate differential and purchasing power parity) and a change in the repo rate with a Taylor-type monetary policy reaction function added to the model (which will further allow the repo rate to adjust to domestic output and inflation). Smal and De Jager (2001) confi ...
Document
... • 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 ...
krugmanobstfeldch16.pp
... • 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 ...
Monetary policy response on exchange rate volatility in Indonesia
... exchange rate volatility, as well as contemporaneous impact of the interest differential. This is also supported by Kóbor and Székely (2004). Using Markov regime-switching model (low volatile regime and high volatile regime), they confirm that volatility is lower in lowly volatile periods. Meanwhile ...
... exchange rate volatility, as well as contemporaneous impact of the interest differential. This is also supported by Kóbor and Székely (2004). Using Markov regime-switching model (low volatile regime and high volatile regime), they confirm that volatility is lower in lowly volatile periods. Meanwhile ...
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 ...
Introducing a Semi-Structural Macroeconomic Model for Rwanda
... Rwanda’s economy has come a long way over the past two decades. Judicious economic policies, coupled with ample donor support, have allowed the economy to sustain a real annual growth of around 8 percent over the past decade. The sectors that have contributed most to growth are agriculture and servi ...
... Rwanda’s economy has come a long way over the past two decades. Judicious economic policies, coupled with ample donor support, have allowed the economy to sustain a real annual growth of around 8 percent over the past decade. The sectors that have contributed most to growth are agriculture and servi ...
Trade, Prices, and the Exchange Rate with Heterogeneous
... on trade flows, the so called intensive and extensive margins of trade.1 Nevertheless, papers remain to be written about the implications of firm heterogeneity and firm reallocations for the impact of exchange rate changes on prices. This topic was indirectly suggested by Rudiger Dornbusch in his 19 ...
... on trade flows, the so called intensive and extensive margins of trade.1 Nevertheless, papers remain to be written about the implications of firm heterogeneity and firm reallocations for the impact of exchange rate changes on prices. This topic was indirectly suggested by Rudiger Dornbusch in his 19 ...
NBER WORKING PAPER SERIES MONETARY AND EXCHANGE RATE POLICY COORDINATION IN ASEAN+1
... adjustment, as shown in the tables in the next section. They were overheating, with inflation causing real appreciation of their currencies, although they were stable in nominal terms against the USD. They had large and growing current account deficits, and growing external debt denominated in forei ...
... adjustment, as shown in the tables in the next section. They were overheating, with inflation causing real appreciation of their currencies, although they were stable in nominal terms against the USD. They had large and growing current account deficits, and growing external debt denominated in forei ...
NEER WORKING PAPER SERIES COMMODITY EXPORT PRICES AND THE REAL
... valuation and inflation. In practice there has been an inverse relationship between the rate of devaluation of the peg and coffee prices. This relation can be seen in Table 2. The high coffee prices of 1976—79, for example, were accompanied by a significant slow—down of the rate of devaluation; when ...
... valuation and inflation. In practice there has been an inverse relationship between the rate of devaluation of the peg and coffee prices. This relation can be seen in Table 2. The high coffee prices of 1976—79, for example, were accompanied by a significant slow—down of the rate of devaluation; when ...
Currency Misalignments and Growth: A New Look using ∗ Sophie Béreau
... notable for China. Chinese authorities have been frequently accused of maintaining the value of the yuan against major currencies at a very low level to finance China’s spectacular growth. Among other things, such long-lasting misalignment would facilitate China’s exports and thus economic growth. A ...
... notable for China. Chinese authorities have been frequently accused of maintaining the value of the yuan against major currencies at a very low level to finance China’s spectacular growth. Among other things, such long-lasting misalignment would facilitate China’s exports and thus economic growth. A ...
Personal Charisma or the Economy?
... violence in that country. Concerning the first of these two criteria, the study reveals there were not major differences between Presidents Alan Garcia and Alberto Fujimori. Rising inflation had a consistently negative impact on presidential support, independent of the type of economic management pr ...
... violence in that country. Concerning the first of these two criteria, the study reveals there were not major differences between Presidents Alan Garcia and Alberto Fujimori. Rising inflation had a consistently negative impact on presidential support, independent of the type of economic management pr ...
Why a Breakup of the Euro Area Must Be Avoided: Lessons from
... depth just after the end of communism, dissolution was far easier than will be the case in the future. In particular, no financial instruments were available with which investors could speculate against the Slovak koruna. The situation of the EMU is very different from these three cases. It has no e ...
... depth just after the end of communism, dissolution was far easier than will be the case in the future. In particular, no financial instruments were available with which investors could speculate against the Slovak koruna. The situation of the EMU is very different from these three cases. It has no e ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 17
... 22) A country's domestic currency's real exchange rate, q, is best described by A) the price of similar goods in the same market. B) the price of the domestic basket in terms of the foreign one. C) the price of a domestic basket. D) the price of the foreign basket in terms of the domestic basket. E) ...
... 22) A country's domestic currency's real exchange rate, q, is best described by A) the price of similar goods in the same market. B) the price of the domestic basket in terms of the foreign one. C) the price of a domestic basket. D) the price of the foreign basket in terms of the domestic basket. E) ...
Optimal Currency Areas: Theory and Evidence for an African Single
... integration. This study focuses on the economic elements of monetary union, placing it firmly within the context of the theory of optimal currency areas and with special reference to Africa. An assessment of theoretical and applied empirical literature is discussed. This encompasses a discussion of ...
... integration. This study focuses on the economic elements of monetary union, placing it firmly within the context of the theory of optimal currency areas and with special reference to Africa. An assessment of theoretical and applied empirical literature is discussed. This encompasses a discussion of ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... good, which in this case is meat. Suppose the income share of meat in the sausage industry is 40 percent and that the economywide exchange rate is 130. Then, the effective protection formula indicates that the sausage industry enjoys a 33.3 percent effective rate of protection. Even though the excha ...
... good, which in this case is meat. Suppose the income share of meat in the sausage industry is 40 percent and that the economywide exchange rate is 130. Then, the effective protection formula indicates that the sausage industry enjoys a 33.3 percent effective rate of protection. Even though the excha ...
The international monetary and financial system
... IMFS magnifies a shortage of safe assets, notably by encouraging a strong precautionary demand for foreign exchange reserves (eg Fahri et al (2011), Landau (2013)). This shortage, in turn, is exacerbated by the dominant role of the US dollar as an international currency. Just like its alternative, t ...
... IMFS magnifies a shortage of safe assets, notably by encouraging a strong precautionary demand for foreign exchange reserves (eg Fahri et al (2011), Landau (2013)). This shortage, in turn, is exacerbated by the dominant role of the US dollar as an international currency. Just like its alternative, t ...
The Equilibrium Exchange Rate: Alternative Concepts and
... 20. The FEER approach, however, has some limitations. First, it does not specify how the exchange rate moves from the current level to the long-term equilibrium rate. In this context, Bayoumi and others (1994) and MacDonald (2000) noted the possibility that different equilibrium values might corresp ...
... 20. The FEER approach, however, has some limitations. First, it does not specify how the exchange rate moves from the current level to the long-term equilibrium rate. In this context, Bayoumi and others (1994) and MacDonald (2000) noted the possibility that different equilibrium values might corresp ...
Inflation targeting in Brazil: 1999–2006 - Bresser
... domestic real interest rate, but the Brazilian rate remained well above the international standards because the country needed to appreciate the exchange rate in order to meet its inflation targets. Third, the high real interest rate put an expansionary pressure on the net public debt and this had t ...
... domestic real interest rate, but the Brazilian rate remained well above the international standards because the country needed to appreciate the exchange rate in order to meet its inflation targets. Third, the high real interest rate put an expansionary pressure on the net public debt and this had t ...
What Drives Movements in Exchange Rates?
... forces are driving the currency, because the causes of the change will have different implications for the Canadian economy and may require a different monetary policy response.1 For example, the Canadian dollar may be responding to an increase in the global demand for commodities, which would lead ...
... forces are driving the currency, because the causes of the change will have different implications for the Canadian economy and may require a different monetary policy response.1 For example, the Canadian dollar may be responding to an increase in the global demand for commodities, which would lead ...
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... "stable" economy, that is, one which has a positive marginal propensity to save. Mundell [24], however, argues that the adjustment process will be complete even in such cases because of the effect of induced changes in the money supply on expenditures and imports. The effects of monetary changes on ...
... "stable" economy, that is, one which has a positive marginal propensity to save. Mundell [24], however, argues that the adjustment process will be complete even in such cases because of the effect of induced changes in the money supply on expenditures and imports. The effects of monetary changes on ...
NBER WORKING PAPER SERIES HEDGING AND FINANCIAL EXCHANGE RATE REGIMES Martin Eichenbaum
... exchange rate risk. Unfortunately, due to data limitations, there is little formal empirical work measuring exchange rate exposure. One way to assess the potential magnitude of this exposure is to consider banks', firms' and financial intermediaries' net foreign assets prior to the onset of a crisi ...
... exchange rate risk. Unfortunately, due to data limitations, there is little formal empirical work measuring exchange rate exposure. One way to assess the potential magnitude of this exposure is to consider banks', firms' and financial intermediaries' net foreign assets prior to the onset of a crisi ...
DP2015/05 A structural model for policy analysis and forecasting: NZSIM
... forecasts. Once identified, the frameworks’ perspectives on the state of the economy and the policy implications can be discussed. Given the importance we place on the parsimony of the model it becomes very important to prioritize what features of the business cycle we wish the model to capture. In ...
... forecasts. Once identified, the frameworks’ perspectives on the state of the economy and the policy implications can be discussed. Given the importance we place on the parsimony of the model it becomes very important to prioritize what features of the business cycle we wish the model to capture. In ...
QUANTIFYING THE SECOND-ROUND EFFECTS OF SUP
... (GDP) deflator and the CPI. The motivation to do so stems from the author’s attempt to explain the determinants of the GDP deflator in the Czech Republic and find a behavioural link between the GDP deflator and the labour market. The analysis is carried transparently within a simple structural model ...
... (GDP) deflator and the CPI. The motivation to do so stems from the author’s attempt to explain the determinants of the GDP deflator in the Czech Republic and find a behavioural link between the GDP deflator and the labour market. The analysis is carried transparently within a simple structural model ...
What Drives Movements in Exchange Rates?
... forces are driving the currency, because the causes of the change will have different implications for the Canadian economy and may require a different monetary policy response.1 For example, the Canadian dollar may be responding to an increase in the global demand for commodities, which would lead ...
... forces are driving the currency, because the causes of the change will have different implications for the Canadian economy and may require a different monetary policy response.1 For example, the Canadian dollar may be responding to an increase in the global demand for commodities, which would lead ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATE VOLATILITY IN SUDDEN-STOP-PRONE ECONOMIES
... -2depreciation of the currency and systemic bankruptcies in the nontradables sector. The real depreciation occurs because the market price of nontradables collapses as the lack of credit forces a reduction of tradables consumption, while the supply of nontradables remains unaltered. If nontradables ...
... -2depreciation of the currency and systemic bankruptcies in the nontradables sector. The real depreciation occurs because the market price of nontradables collapses as the lack of credit forces a reduction of tradables consumption, while the supply of nontradables remains unaltered. If nontradables ...
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.