Applying the Debt Sustainability Framework for Low
... – It also depend on current economic policies – And it also depends on broader institutional strength ...
... – It also depend on current economic policies – And it also depends on broader institutional strength ...
The Impact of Monetary Policy Announcements
... The exchange rate is sensitive to a wide range of economic, social and political news. As such, monetary policy announcements which do not coincide with the release of other economic news and the announcements classi…ed as unanticipated are used, while only major political or socio-political events ...
... The exchange rate is sensitive to a wide range of economic, social and political news. As such, monetary policy announcements which do not coincide with the release of other economic news and the announcements classi…ed as unanticipated are used, while only major political or socio-political events ...
Miller
... of the Exchange Rate on Net Exports In 2003, nominal interest rates in Switzerland were close to zero, as an expansionary monetary policy had been employed to combat a recession. The expansionary policy served also to depreciate the Swiss franc, which stimulated net exports. It was this open e ...
... of the Exchange Rate on Net Exports In 2003, nominal interest rates in Switzerland were close to zero, as an expansionary monetary policy had been employed to combat a recession. The expansionary policy served also to depreciate the Swiss franc, which stimulated net exports. It was this open e ...
What is the Most Effective Monetary Policy for Aid
... Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international markets. This model also shows that monetary po ...
... Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international markets. This model also shows that monetary po ...
Inflation, Exchange Rates and Interest Rates
... It has however returned to double digits, 13.5% as at the end of 2013. In several instances, monetary policy authorities have reacted vigorously to short-run deviations from targets, in an attempt to maintain credibility. This had a destabilizing impact on the economy. Attempting to hit inflation tar ...
... It has however returned to double digits, 13.5% as at the end of 2013. In several instances, monetary policy authorities have reacted vigorously to short-run deviations from targets, in an attempt to maintain credibility. This had a destabilizing impact on the economy. Attempting to hit inflation tar ...
PDF version
... these prevailing conditions, the global growth outlook remained subdued amid tightening financing conditions, especially in commodity exporting countries. These global developments impacted the domestic economy via the trade sector and continued to shape the country’s external sector performance. In ...
... these prevailing conditions, the global growth outlook remained subdued amid tightening financing conditions, especially in commodity exporting countries. These global developments impacted the domestic economy via the trade sector and continued to shape the country’s external sector performance. In ...
NBER WORKING PAPER SERIES DEBT DELEVERAGING AND THE EXCHANGE RATE Pierpaolo Benigno
... keep the real rate from falling when prices are sticky, causing a longer contraction. And, fixed-exchange-rate or controlled-rate policy regimes can also lead to a more protracted stagnation. A monetary union falls into the latter category, since sluggish adjustment in relative prices makes delevera ...
... keep the real rate from falling when prices are sticky, causing a longer contraction. And, fixed-exchange-rate or controlled-rate policy regimes can also lead to a more protracted stagnation. A monetary union falls into the latter category, since sluggish adjustment in relative prices makes delevera ...
The Gold Standard, the Euro, and the Debt Crisis
... What happened? And why did it happen? To answer these questions, we begin by describing the origins of the Greek financial crisis, highlighting the crucial role of growing fiscal and external imbalances. Next, we identify what we believe was a key factor that abetted those imbalances—namely, the abs ...
... What happened? And why did it happen? To answer these questions, we begin by describing the origins of the Greek financial crisis, highlighting the crucial role of growing fiscal and external imbalances. Next, we identify what we believe was a key factor that abetted those imbalances—namely, the abs ...
NBER WORKING PAPER SERIES CURRENCY MISALIGNMENTS AND OPTIMAL MONETARY POLICY: A REEXAMINATION
... and Pesenti (2005) assume price setting is synchronized, with prices set one period in advance. 7 Here we adopt the standard Calvo price-setting technology, which allows for asynchronized price setting. This change is important, because it emphasizes the point that the cost of inflation under sticky ...
... and Pesenti (2005) assume price setting is synchronized, with prices set one period in advance. 7 Here we adopt the standard Calvo price-setting technology, which allows for asynchronized price setting. This change is important, because it emphasizes the point that the cost of inflation under sticky ...
View/Open - Hasanuddin University
... ability of the country to participate in international market. It has been known that foreign exchange market could affect inflation rate and interest rate for country. If local currency appreciates to foreign currency such as US dollar, or Euro, the purchasing power will increase because the amount ...
... ability of the country to participate in international market. It has been known that foreign exchange market could affect inflation rate and interest rate for country. If local currency appreciates to foreign currency such as US dollar, or Euro, the purchasing power will increase because the amount ...
Evaluating development efforts
... There are good reasons why. On the one hand, with a given set of risk-management mechanisms, large shocks may be more difficult to absorb than small ones. These threshold effects of volatility have been found to be empirically relevant for investment (Sarkar 2002; Servén 2003). On the other hand, du ...
... There are good reasons why. On the one hand, with a given set of risk-management mechanisms, large shocks may be more difficult to absorb than small ones. These threshold effects of volatility have been found to be empirically relevant for investment (Sarkar 2002; Servén 2003). On the other hand, du ...
Exchange Rate Policy
... The major factors that influence marketing of goods and services are the magnitude of demand and supply forces of the commodity in question. With regards to international market however,, governments also, to some extent, determine the flow of the market goods and services among nations. This is don ...
... The major factors that influence marketing of goods and services are the magnitude of demand and supply forces of the commodity in question. With regards to international market however,, governments also, to some extent, determine the flow of the market goods and services among nations. This is don ...
Chapter 16 Money in macroeconomics
... The following three functions are sometimes considered to be the definitional characteristics of money: 1. It is a generally accepted medium of exchange. 2. It is a store of value. 3. It serves as a unit of account in which prices are quoted and books kept (the numeraire). On can argue, however, tha ...
... The following three functions are sometimes considered to be the definitional characteristics of money: 1. It is a generally accepted medium of exchange. 2. It is a store of value. 3. It serves as a unit of account in which prices are quoted and books kept (the numeraire). On can argue, however, tha ...
NBER WORKING PAPER SERIES ASSESSING THE EMERGING GLOBAL FINANCIAL ARCHITECTURE:
... Testing the Stability and Fitness of Trilemma’s Linear Specification” and “The Emerging Global Financial Architecture – Tracing and Evaluating the New Patterns of the Trilemma’s Configurations”. We would like to thank Eduardo Borensztein, Eduardo Cavallo, Camilo Tavor, Mathijs van Dijk, and the part ...
... Testing the Stability and Fitness of Trilemma’s Linear Specification” and “The Emerging Global Financial Architecture – Tracing and Evaluating the New Patterns of the Trilemma’s Configurations”. We would like to thank Eduardo Borensztein, Eduardo Cavallo, Camilo Tavor, Mathijs van Dijk, and the part ...
IMF STAND-BY ARRANGENT FOR PAKISTAN AND ITS INCONCLUSIVE END- WHAT WENT WRONG?
... defense expenditures and massive interest payments. Because of its inability to pay back the external debt and meet other international monetary obligations, there were several rounds of debt rescheduling between Government of Pakistan, donor clubs and international financial organizations during 19 ...
... defense expenditures and massive interest payments. Because of its inability to pay back the external debt and meet other international monetary obligations, there were several rounds of debt rescheduling between Government of Pakistan, donor clubs and international financial organizations during 19 ...
Output and the Exchange Rate in the Short Run
... Suppose the economy is initially at Point 1. Suppose there is a tax hike (T↑), but output is still at Y1. Then, C will decrease. Let’s say C decreases by $100. This will require CA to increase by $100. But T ↑, by itself, will increase CA by less than $100. Why? When C falls by $100, the consumption ...
... Suppose the economy is initially at Point 1. Suppose there is a tax hike (T↑), but output is still at Y1. Then, C will decrease. Let’s say C decreases by $100. This will require CA to increase by $100. But T ↑, by itself, will increase CA by less than $100. Why? When C falls by $100, the consumption ...
PDF
... commodities, none of the authors sought to nominate or identify the source of such a shock to the terms of trade itself or examine different types of shocks. Rather the format has been to typically focus on an assumed general shock on the terms of trade and how this impacts the real exchange rate. F ...
... commodities, none of the authors sought to nominate or identify the source of such a shock to the terms of trade itself or examine different types of shocks. Rather the format has been to typically focus on an assumed general shock on the terms of trade and how this impacts the real exchange rate. F ...
Real Exchange Rates for the Year 2000
... the United Kingdom, data is available from an OECD publication (published on a country by country basis): OECD Financial Statistics Part 2, Financial Accounts of OECD Countries. This source publishes information on outstanding external assets and liabilities. For the United Kingdom, data is availabl ...
... the United Kingdom, data is available from an OECD publication (published on a country by country basis): OECD Financial Statistics Part 2, Financial Accounts of OECD Countries. This source publishes information on outstanding external assets and liabilities. For the United Kingdom, data is availabl ...
zimbabwe - OECD.org
... The lack of foreign currency is exacerbated by the poor performance of the tobacco and cotton production exports, which represent the most important foreign exchange earners. Tobacco production declined by 15.4 per cent in 2000/01 owing to the land invasions and seizures of many commercial farms. Th ...
... The lack of foreign currency is exacerbated by the poor performance of the tobacco and cotton production exports, which represent the most important foreign exchange earners. Tobacco production declined by 15.4 per cent in 2000/01 owing to the land invasions and seizures of many commercial farms. Th ...
O D : C E
... Only a relatively small number of countries have officially adopted a foreign currency as legal tender. The reasons include the political symbolism of a national currency, historical patterns of use of domestic and foreign currency, and economic factors such as the perceived costs of dollarization, ...
... Only a relatively small number of countries have officially adopted a foreign currency as legal tender. The reasons include the political symbolism of a national currency, historical patterns of use of domestic and foreign currency, and economic factors such as the perceived costs of dollarization, ...
Expectations, Risk, Interest Rates and Consequences for External
... Tim Long for able research assistance and to Ron Stuart for stylistic suggestions. Views expressed in the paper are those of the authors and should not be attributed to the institutions for which they work. ...
... Tim Long for able research assistance and to Ron Stuart for stylistic suggestions. Views expressed in the paper are those of the authors and should not be attributed to the institutions for which they work. ...
The Usefulness of factor models in forecasting the exchange
... exchange rate regimes by most developed countries, the behavior of exchange rates has been a frequent topic of analysis as this variable exerts a significant impact on countries’ trade balance, price levels and output. Considering the role of the exchange rate on the economy, its forecasting is of g ...
... exchange rate regimes by most developed countries, the behavior of exchange rates has been a frequent topic of analysis as this variable exerts a significant impact on countries’ trade balance, price levels and output. Considering the role of the exchange rate on the economy, its forecasting is of g ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... nored, for two reasons. First, in Israel, no substantial devaluation has ever been performed over a short period through changes in the nonformal component of the rate. Thus, the examination of demand policy would be fruitful only for periods of formal devaluation. Second, the two later episodes of ...
... nored, for two reasons. First, in Israel, no substantial devaluation has ever been performed over a short period through changes in the nonformal component of the rate. Thus, the examination of demand policy would be fruitful only for periods of formal devaluation. Second, the two later episodes of ...
Approaching storm. Report on transformation Central and Eastern Europe and the eurozone crisis
... the country which is most vulnerable to a crisis is Latvia, followed by Slovenia, Hungary, and Belarus. Very serious threats jeopardize the development of Bulgaria, Serbia, and Ukraine. Strong caution is also required in the case of Lithuania, Croatia, Slovakia, Romania, Estonia, and Poland, and to ...
... the country which is most vulnerable to a crisis is Latvia, followed by Slovenia, Hungary, and Belarus. Very serious threats jeopardize the development of Bulgaria, Serbia, and Ukraine. Strong caution is also required in the case of Lithuania, Croatia, Slovakia, Romania, Estonia, and Poland, and to ...
A Primer on the Euro Breakup
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
Foreign-exchange reserves
.PNG?width=300)
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.