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Foreign currency borrowing by small firms in emerging markets
... arguably greater counterparty risk. As a result, private sector capital needs, in addition to Lebanese government debt, are financed by depositors intermediating desired dollar-denominated savings through domestic commercial banks. Even so, we find a number of common determinants with foreign currency ...
... arguably greater counterparty risk. As a result, private sector capital needs, in addition to Lebanese government debt, are financed by depositors intermediating desired dollar-denominated savings through domestic commercial banks. Even so, we find a number of common determinants with foreign currency ...
Export Supply and Import Demand Models for
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
Twin deficits and the sustainability of public debt and exchange rate
... especially during the 1989–1991 time period.2 BDL had to resort to printing money for the purpose of financing the budget deficit. This subsequently led to hyperinflation. The rate of inflation was at its highest historical levels of 490 per cent and 100 per cent in 1989 and 1991 respectively (Fig. 1(e) ...
... especially during the 1989–1991 time period.2 BDL had to resort to printing money for the purpose of financing the budget deficit. This subsequently led to hyperinflation. The rate of inflation was at its highest historical levels of 490 per cent and 100 per cent in 1989 and 1991 respectively (Fig. 1(e) ...
2 - Economics | Bilkent University
... Currency depreciation gives with one hand, by lowering export prices, while taking away with the other hand, by raising import prices. If trade is in balance and the terms of trade are not changed, these price changes offset each other. But if imports exceed exports, the net result is a reduction in ...
... Currency depreciation gives with one hand, by lowering export prices, while taking away with the other hand, by raising import prices. If trade is in balance and the terms of trade are not changed, these price changes offset each other. But if imports exceed exports, the net result is a reduction in ...
external vulnerabilities and economic integration: is the union of
... commercial disturbances (e.g., Jiménez-Rodríguez, Morales-Zumaquero, and Égert, 2010; Makin, 2013). In fact, commodity price disturbances have been proven to significantly influence the real economic sector of commodity exporters (e.g., Collier and Goderis, 2012; Medina, 2010). Moreover, some commod ...
... commercial disturbances (e.g., Jiménez-Rodríguez, Morales-Zumaquero, and Égert, 2010; Makin, 2013). In fact, commodity price disturbances have been proven to significantly influence the real economic sector of commodity exporters (e.g., Collier and Goderis, 2012; Medina, 2010). Moreover, some commod ...
Use of Local Currencies in CIF Projects
... may be the only financier seeking to call an event of default, enforce security or causing the borrower to go into bankruptcy if the borrower is unable to meet hard currency commitments due to the devaluation. Other lenders may view this as impeding on customary inter-creditor rights and recoveries. ...
... may be the only financier seeking to call an event of default, enforce security or causing the borrower to go into bankruptcy if the borrower is unable to meet hard currency commitments due to the devaluation. Other lenders may view this as impeding on customary inter-creditor rights and recoveries. ...
Working Paper 113 - Lessons from Italian Monetary Unification
... extended far beyond ordinary scholarly courtesy. ...
... extended far beyond ordinary scholarly courtesy. ...
Tradability of Goods and Real Exchange Rate
... Lucas, Victor Rios-Rull, Nancy Stokey, and seminar participants at numerous conferences and seminars for many valuable comments on earlier versions of this paper. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal R ...
... Lucas, Victor Rios-Rull, Nancy Stokey, and seminar participants at numerous conferences and seminars for many valuable comments on earlier versions of this paper. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal R ...
Does exchange rate depreciation have contractionary effects on firm
... maturity (where we distinguish between residual maturity and long-term debt); and 3) market of issuance (ie whether the onshore or the offshore bond market is used for the issuance of debt). Our main finding is that conditional on the amount of debt issued in foreign currency, exchange rate deprecia ...
... maturity (where we distinguish between residual maturity and long-term debt); and 3) market of issuance (ie whether the onshore or the offshore bond market is used for the issuance of debt). Our main finding is that conditional on the amount of debt issued in foreign currency, exchange rate deprecia ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
exchange rate volatility and foreign direct investment in sri lanka
... negative association between a higher expected value of host country currency and the volume of FDI flows for the US and five other developed countries. These results, however, can never be conclusive because they involve a joint test of the impact of expected future exchange rates and the particula ...
... negative association between a higher expected value of host country currency and the volume of FDI flows for the US and five other developed countries. These results, however, can never be conclusive because they involve a joint test of the impact of expected future exchange rates and the particula ...
Public Debt Management in Emerging Market
... intensity and global reach. The “emerging market” countries (EMs) were not immune: at the height of the crisis the emerging-market government bond index (EMBIG) had seen an increase in spread of over 700 basis points from its low point in June 2007, and the international capital markets were effecti ...
... intensity and global reach. The “emerging market” countries (EMs) were not immune: at the height of the crisis the emerging-market government bond index (EMBIG) had seen an increase in spread of over 700 basis points from its low point in June 2007, and the international capital markets were effecti ...
The balance of payments constraint as an explanation of
... payments equilibrium growth rate has resulted in the build up of a huge payments surplus. Presumably Japan could not grow faster than it did because of an ultimate capacity ceiling. But Japan still grew considerably faster than other countries because demand was unconstrained and induced its own sup ...
... payments equilibrium growth rate has resulted in the build up of a huge payments surplus. Presumably Japan could not grow faster than it did because of an ultimate capacity ceiling. But Japan still grew considerably faster than other countries because demand was unconstrained and induced its own sup ...
Practice Question Set 1
... What will be impacts on FREX rate in the short-run (with rigid level) and in the long-run (with flexible price level)? Obviously you will have to use the Trade Approach. Specify what theories you are using for the analysis of the short- and the long-term impacts. 1) The government applies Monetary P ...
... What will be impacts on FREX rate in the short-run (with rigid level) and in the long-run (with flexible price level)? Obviously you will have to use the Trade Approach. Specify what theories you are using for the analysis of the short- and the long-term impacts. 1) The government applies Monetary P ...
Money and Money Market ملف
... M1: currency in circulation, overnight deposits M2: M1 + deposits with agreed maturity up to 2 years and deposits redeemable at notice up to 3 months M3: M2 + repos, shares/units of money market funds, money market paper and debt securities up to 2 years ...
... M1: currency in circulation, overnight deposits M2: M1 + deposits with agreed maturity up to 2 years and deposits redeemable at notice up to 3 months M3: M2 + repos, shares/units of money market funds, money market paper and debt securities up to 2 years ...
The Canadian Dollar and Commodity Prices
... exercise to examine the stability of the equation’s parameters should be seen as using extreme scenarios to better understand the properties of the exchange rate equation in situations where, say, energy prices increase very rapidly. In Chart 2, we show two sets of simulations of the exchange rate ...
... exercise to examine the stability of the equation’s parameters should be seen as using extreme scenarios to better understand the properties of the exchange rate equation in situations where, say, energy prices increase very rapidly. In Chart 2, we show two sets of simulations of the exchange rate ...
Bolivia`s Fiscal Rules: Dynamic Stochastic General Equilibrium
... inflation and output deviations, but also to interest rate lags and changes to nominal exchange rate. We use DYNARE in order to solve the model, but first it must be log – linearized. Furthermore, parameters calibration is used for Bolivia’s economy in order to simulate its behavior and contemporane ...
... inflation and output deviations, but also to interest rate lags and changes to nominal exchange rate. We use DYNARE in order to solve the model, but first it must be log – linearized. Furthermore, parameters calibration is used for Bolivia’s economy in order to simulate its behavior and contemporane ...
Economics of exchange rates and policy options
... that the price equals the marginal costs. The efficiency test implies that the real exchange rate is equal to the purchasing power parity. In macroeconomics, when the output growth serves as the dependent variable, the cross-section data show that education spending has a positive impact upon output ...
... that the price equals the marginal costs. The efficiency test implies that the real exchange rate is equal to the purchasing power parity. In macroeconomics, when the output growth serves as the dependent variable, the cross-section data show that education spending has a positive impact upon output ...
Foreign Currency Borrowing: The Case of Hungary
... Chart 2. Net financing capacity of Hungarian households ...
... Chart 2. Net financing capacity of Hungarian households ...
THE COLOMBIAN ECONOMY IN THE NINETIES: CAPITAL FLOWS
... 1999, in an abrupt and dramatic way, when both foreign and domestic lenders realized that private debt had gone much farther than the capacity to pay. Both the rapid process of fiscal deterioration and the excess of private expenditure over disposable income were greatly facilitated by huge foreign ...
... 1999, in an abrupt and dramatic way, when both foreign and domestic lenders realized that private debt had gone much farther than the capacity to pay. Both the rapid process of fiscal deterioration and the excess of private expenditure over disposable income were greatly facilitated by huge foreign ...
chapter iii balance of payments – theoretical
... those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance – in an accounting sense - one sided transaction.” 2 In general, Balance of Payments (BOP) of a country is “a systematic rec ...
... those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance – in an accounting sense - one sided transaction.” 2 In general, Balance of Payments (BOP) of a country is “a systematic rec ...
NBER WORKING PAPER SERIES CAUSES OF APPRECIATION AND VOLATILITY OF THE DOLLAR
... and the dollar appreciated in real terms by about 20 percent. Since the end of 1981, long-term real interest rates have remained in the range of 5-10 percent, with nominal long rates above short rates. The dollar appreciated further, but more gradually, until early 1985. This paper argues that these ...
... and the dollar appreciated in real terms by about 20 percent. Since the end of 1981, long-term real interest rates have remained in the range of 5-10 percent, with nominal long rates above short rates. The dollar appreciated further, but more gradually, until early 1985. This paper argues that these ...
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.