Internationalized Production in a Small Open Economy Aur´ elien Eyquem G¨
... targeting small open economies, trade of the intermediate imports represents approximately half of their total trade flows. For example, during the last ten years, the average share of intermediate goods imports in total imports has been around 45% for New Zealand and Australia, and 56% for Chile.3 ...
... targeting small open economies, trade of the intermediate imports represents approximately half of their total trade flows. For example, during the last ten years, the average share of intermediate goods imports in total imports has been around 45% for New Zealand and Australia, and 56% for Chile.3 ...
Macroeconomic Implications Of Capital Inflows In India :
... the unidirectional from private foreign capital to nominal effective exchange ratesboth trade based and export based. Indrani Chakraborty (2003) using VAR model for the period 1993Q2 to 2001Q4 concluded that unlike East Asian and Latin American countries, the real exchange rate depreciates with resp ...
... the unidirectional from private foreign capital to nominal effective exchange ratesboth trade based and export based. Indrani Chakraborty (2003) using VAR model for the period 1993Q2 to 2001Q4 concluded that unlike East Asian and Latin American countries, the real exchange rate depreciates with resp ...
Economic Policy in Dollarized Economies with Special Review of
... of gold in the world markets fluctuates, returning to the gold standard would not itself guarantee the stability of a country’s national currency. With the increase in the number of independent countries after World War II, the number of currencies has grown dramatically. Following inadequate econom ...
... of gold in the world markets fluctuates, returning to the gold standard would not itself guarantee the stability of a country’s national currency. With the increase in the number of independent countries after World War II, the number of currencies has grown dramatically. Following inadequate econom ...
The Portfolio Balance Model∗
... Foreign bonds +1 monetary base +1 Reserves +1 deposits of foreign banks +1 Foreign commercial banks Assets Liabilities Foreign bonds -1 deposits at domestic banks +1 An alternative strategy is to buy domestic bonds from the domestic commercial banks, i.e., an open market operation. The total eect w ...
... Foreign bonds +1 monetary base +1 Reserves +1 deposits of foreign banks +1 Foreign commercial banks Assets Liabilities Foreign bonds -1 deposits at domestic banks +1 An alternative strategy is to buy domestic bonds from the domestic commercial banks, i.e., an open market operation. The total eect w ...
NBER WORKING PAPER SERIES MONETARY UNIONS, EXTERNAL SHOCKS AND ECONOMIC
... countries that share a common currency.5 In Table 1 I present a list of countries (and territories) with currency unions; this list includes both dollarized countries as well as countries that belong to independent currency unions. The purpose of this paper is to analyze a number of issues related t ...
... countries that share a common currency.5 In Table 1 I present a list of countries (and territories) with currency unions; this list includes both dollarized countries as well as countries that belong to independent currency unions. The purpose of this paper is to analyze a number of issues related t ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... Basel Accords on capital adequacy created unintended incentives for short-term bank borrowing. The highly leveraged nature of the South Korean economy, together with the currency and term mismatches embodied in the mid-1990s surge of foreign debt exposure, left the economy vulnerable to a variety of ...
... Basel Accords on capital adequacy created unintended incentives for short-term bank borrowing. The highly leveraged nature of the South Korean economy, together with the currency and term mismatches embodied in the mid-1990s surge of foreign debt exposure, left the economy vulnerable to a variety of ...
DP2010/04 Internationalised Production in a Small Open Economy Aur´
... enriched with many frictions such as habit formation in consumption, price and wage indexation, also became the workhorse of applied macroeconomic analysis. Most of these models assume that the traded good is a consumption good. However, the data reveals that a non-negligible part of trade occurs at ...
... enriched with many frictions such as habit formation in consumption, price and wage indexation, also became the workhorse of applied macroeconomic analysis. Most of these models assume that the traded good is a consumption good. However, the data reveals that a non-negligible part of trade occurs at ...
Tradability of Goods and Real Exchange Rate
... (2000) and Chari, Kehoe and McGratten (2000). In addition, there is no imperfect competition or price-setting ability of the firms in our economy, features which characterize recent work on the role of nominal rigidities and for real exchange rate behavior. In keeping with the international real bus ...
... (2000) and Chari, Kehoe and McGratten (2000). In addition, there is no imperfect competition or price-setting ability of the firms in our economy, features which characterize recent work on the role of nominal rigidities and for real exchange rate behavior. In keeping with the international real bus ...
Chapter 1
... rules for the evolution of the money supply’. (Woodford, 2003, p. 48. Second emphasis ...
... rules for the evolution of the money supply’. (Woodford, 2003, p. 48. Second emphasis ...
PRIVATE CAPITAL FLOWS AND THE REAL EXCHANGE RATE IN
... other authors do not find evidence of appreciation of the real exchange due to official inflows (Yano and Nugent, 1999; Ouattara and Strobl, 2004). Several case studies such as White and Wignaraja (1992) in Sri Lanka, Younger (1992) in Ghana, and Kasekende and Atingi-Ego (1999) in Uganda find that ...
... other authors do not find evidence of appreciation of the real exchange due to official inflows (Yano and Nugent, 1999; Ouattara and Strobl, 2004). Several case studies such as White and Wignaraja (1992) in Sri Lanka, Younger (1992) in Ghana, and Kasekende and Atingi-Ego (1999) in Uganda find that ...
Linkages Between Exchange Rate Policy and Macroeconomic
... which is central to our study. The vertical axis tracks the share of countries that pursued certain exchange rate policy, plotted on the graph, in a given year with respect to the total sample in that year. We observe a downward trend in the relative number of countries that adhered to fixed exchang ...
... which is central to our study. The vertical axis tracks the share of countries that pursued certain exchange rate policy, plotted on the graph, in a given year with respect to the total sample in that year. We observe a downward trend in the relative number of countries that adhered to fixed exchang ...
The Determinants of Pakistan`s Trade Balance
... competitiveness has now become the focal point of any adjustment effort. It is believed that a nominal devaluation will result in expenditure switching, increased production of tradable goods and services, higher exports and an improvement of the country’s external accounts. Traditional stabilizatio ...
... competitiveness has now become the focal point of any adjustment effort. It is believed that a nominal devaluation will result in expenditure switching, increased production of tradable goods and services, higher exports and an improvement of the country’s external accounts. Traditional stabilizatio ...
AGGREGATE DEMAND AND EXPENDITURE
... in a particular macroeconomy. Any factor that affects consumption, investment, government, or export-import decisions will translate in to a change in nominal expenditure and, at an existing price level, a change in purchasing power. These factors may include changes in interest rates, exchange rate ...
... in a particular macroeconomy. Any factor that affects consumption, investment, government, or export-import decisions will translate in to a change in nominal expenditure and, at an existing price level, a change in purchasing power. These factors may include changes in interest rates, exchange rate ...
vietnam`s exchange rate policy
... Official exchange rate Since 1999 the SBV has determined the average VND/USD exchange rate on the interbank market on each banking day and announced it as the official exchange rate on the following banking day. However, this determination process has not been transparent and still appears to reflec ...
... Official exchange rate Since 1999 the SBV has determined the average VND/USD exchange rate on the interbank market on each banking day and announced it as the official exchange rate on the following banking day. However, this determination process has not been transparent and still appears to reflec ...
Real Exchange Rate Distortion in Southeast Europe
... there is a number of reasons why the real exchange rate might be deviating from its long run equilibrium and why the PPP concept might be misleading altogether. There are several restrictive assumptions such as the Law of One Price (LOOP) secured by perfectly competitive free international trade and ...
... there is a number of reasons why the real exchange rate might be deviating from its long run equilibrium and why the PPP concept might be misleading altogether. There are several restrictive assumptions such as the Law of One Price (LOOP) secured by perfectly competitive free international trade and ...
beliefs - Georgia State University
... described above. The central bank, which was preserved as an institution, can provide liquidity to the banking system and its balance sheet contains a large deposit by the government. Each of these features can lead to changes in money supply irrespective of changes in the level of foreign exchange ...
... described above. The central bank, which was preserved as an institution, can provide liquidity to the banking system and its balance sheet contains a large deposit by the government. Each of these features can lead to changes in money supply irrespective of changes in the level of foreign exchange ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... absorption in each country is also a positive function of real wealth. The marginal propensity to consume out of wealth, 8, can be thought of as a discount rate.2 Wealth is defined in equation (4) as real money balances, m, plus the real value of domestic and foreign bonds. Two crucial assumptions a ...
... absorption in each country is also a positive function of real wealth. The marginal propensity to consume out of wealth, 8, can be thought of as a discount rate.2 Wealth is defined in equation (4) as real money balances, m, plus the real value of domestic and foreign bonds. Two crucial assumptions a ...
Monetary unions, external shocks and economic performance: A Latin American perspective
... Panama, Ecuador and El Salvador.8 If, on the other hand, a new common currency is adopted, monetary independence will only be lost partially. This is so because members of the union will be represented in the governance structure of the new common central bank, and, at least in principle, would have ...
... Panama, Ecuador and El Salvador.8 If, on the other hand, a new common currency is adopted, monetary independence will only be lost partially. This is so because members of the union will be represented in the governance structure of the new common central bank, and, at least in principle, would have ...
Money and Inflation in Colonial Massachusetts
... of paper currency and movements in the stock of circulating specie were positively rather than negatively correlated. The basis for this suggestion is quite simple. After 1754, the paper currency stock increased rapidly into the early 1760s and then declined rapidly. This was because large deficits ...
... of paper currency and movements in the stock of circulating specie were positively rather than negatively correlated. The basis for this suggestion is quite simple. After 1754, the paper currency stock increased rapidly into the early 1760s and then declined rapidly. This was because large deficits ...
NBER WORKING PAPER SERIES MONETARY POLICY IN THE OPEN ECONOMY REVISITED:
... economies has been the degree to which policy choices should be affected by exchange-rate considerations. There is an abundance of different experiences around the world. Eleven countries of the European Union, by adopting a single currency and eliminating exchange rate changes, have abandoned indep ...
... economies has been the degree to which policy choices should be affected by exchange-rate considerations. There is an abundance of different experiences around the world. Eleven countries of the European Union, by adopting a single currency and eliminating exchange rate changes, have abandoned indep ...
Model for Analysis and Simulations (MAS)
... The impulse-response functions of the benchmark model are compared with three alternative specifications that remove three rigidities one-by-one: sticky wages, investment adjustment cost, and habit formation in consumption. From this exercise we conclude that both investment and consumption inertia ...
... The impulse-response functions of the benchmark model are compared with three alternative specifications that remove three rigidities one-by-one: sticky wages, investment adjustment cost, and habit formation in consumption. From this exercise we conclude that both investment and consumption inertia ...
the relationship between exchange rate volatility and balance of
... controls were an easy response to contain balance of payments and inflationary pressures, but they created major distortions in the economy that were not evident until the early 1980s. The major instruments of monetary policy in Kenya have been open market operations, cash and liquidity ratios, cred ...
... controls were an easy response to contain balance of payments and inflationary pressures, but they created major distortions in the economy that were not evident until the early 1980s. The major instruments of monetary policy in Kenya have been open market operations, cash and liquidity ratios, cred ...
Foreign-exchange reserves
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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.