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NBER WORKING PAPER SERIES ASPECTS OF THE OPTIMAL MANAGEMENT OF EXCHANGE RATES
... equation (14) suggests that the monetary authority possesses two instruments for the attainment of its policy goals: a '' policy--the optimal intervention index and an policy--the optimal stock of money at the beginning of each period. The general optimization procedure would then solve simultaneous ...
... equation (14) suggests that the monetary authority possesses two instruments for the attainment of its policy goals: a '' policy--the optimal intervention index and an policy--the optimal stock of money at the beginning of each period. The general optimization procedure would then solve simultaneous ...
The Real Exchange Rate and US Manufacturing Profits
... elasticities are not constant, and markups decline with a rise in product prices, pass-through is less than complete even with constant marginal cost, and the dollar price of output sold abroad must rise relative to the domestic price, P^t. Our interest is not in pricing behavior, per se, but rather ...
... elasticities are not constant, and markups decline with a rise in product prices, pass-through is less than complete even with constant marginal cost, and the dollar price of output sold abroad must rise relative to the domestic price, P^t. Our interest is not in pricing behavior, per se, but rather ...
On the Liquidation of Government Debt under A Debt
... the basis of money as debt. In the United States, this monetary framework was instituted by the Federal Reserve Act in 1913, which allows the 100% privatelyowned Federal Reserve Board to play a role of the central bank and issue money. Without exception almost all of macroeconomic textbooks such as ...
... the basis of money as debt. In the United States, this monetary framework was instituted by the Federal Reserve Act in 1913, which allows the 100% privatelyowned Federal Reserve Board to play a role of the central bank and issue money. Without exception almost all of macroeconomic textbooks such as ...
TCX`s role in the Kyrgyz Republic during the 2014 Russian ruble
... KGS have a direct effect on the country’s financial system and on the real economy. Exchange rate risk associated with international debt is allocated through the terms agreed between the borrowers and lenders. In the absence of international hedging markets, this typically means that the risk is pl ...
... KGS have a direct effect on the country’s financial system and on the real economy. Exchange rate risk associated with international debt is allocated through the terms agreed between the borrowers and lenders. In the absence of international hedging markets, this typically means that the risk is pl ...
WORKING PAPER SERIES Estimates of Fundamental Real
... Estonia, Hungary, Poland and Slovenia—entered the advanced stage of transition1, and, at the same time, the EU negotiations with these countries picked up pace. These two challenges have had a significant impact as the countries have formed their views on exchange rate policies as well as on the dev ...
... Estonia, Hungary, Poland and Slovenia—entered the advanced stage of transition1, and, at the same time, the EU negotiations with these countries picked up pace. These two challenges have had a significant impact as the countries have formed their views on exchange rate policies as well as on the dev ...
July 2016
... of 254.8 per cent which is relatively high in terms of emerging economies. As for the increment, since the global financial crisis, China’s debt ratio has been climbing rapidly, and leverage distribution among different economic sectors has been unequal (figure 37). In terms of both absolute levels ...
... of 254.8 per cent which is relatively high in terms of emerging economies. As for the increment, since the global financial crisis, China’s debt ratio has been climbing rapidly, and leverage distribution among different economic sectors has been unequal (figure 37). In terms of both absolute levels ...
determinants of the choice of exchange rate regime in resource
... This research studies the specic determinants of the choice of exchange rate regime in resource-rich countries. We run multinomial logit regressions for an unbalanced panel data set of 145 countries over the 1975-2004 period. We nd that resource-rich countries are more likely to adopt a xed excha ...
... This research studies the specic determinants of the choice of exchange rate regime in resource-rich countries. We run multinomial logit regressions for an unbalanced panel data set of 145 countries over the 1975-2004 period. We nd that resource-rich countries are more likely to adopt a xed excha ...
Has Thailand Learned from the Asian Crisis of 1997? Kuejai Jungjaturapit
... value of the Thai baht was much lower than its current pegged rate. Both foreign and domestic speculators hedged the exchange rate in large volume. At the same time, the Thai government spent a total of around $39 billion in forward swaps outstanding. Thus, foreign reserves were really low. Because ...
... value of the Thai baht was much lower than its current pegged rate. Both foreign and domestic speculators hedged the exchange rate in large volume. At the same time, the Thai government spent a total of around $39 billion in forward swaps outstanding. Thus, foreign reserves were really low. Because ...
Russian Federation: Staff Report for the 2016 Article IV
... The Russian economy contracted by 3.7 percent in 2015 due to falling oil prices and the quasi closure of international financial markets to Russian entities. The economic contraction is nonetheless shallower than previous recessions as a stronger external position and the authorities’ economic packa ...
... The Russian economy contracted by 3.7 percent in 2015 due to falling oil prices and the quasi closure of international financial markets to Russian entities. The economic contraction is nonetheless shallower than previous recessions as a stronger external position and the authorities’ economic packa ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Exchange Rates and International Macroeconomics
... E. Imagine now an unanticipated once-and-for-all devaluation at t = 0, that is, A £ > 0 starting from steady state;12 in terms of figure 7.1 this implies that we start from a point like a. After the devaluation, the V — 0 curve shifts up, thus the new equilibrium (with same initial P) will move to a ...
... E. Imagine now an unanticipated once-and-for-all devaluation at t = 0, that is, A £ > 0 starting from steady state;12 in terms of figure 7.1 this implies that we start from a point like a. After the devaluation, the V — 0 curve shifts up, thus the new equilibrium (with same initial P) will move to a ...
On the long-run determinants of real exchange rates for
... The relationship between real exchange rate and economic development is certainly an important issue, both from the positive (descriptive) and normative (policy prescription) perspectives. In recent years, policy discussions have included increasing references to real exchange rate stability and cor ...
... The relationship between real exchange rate and economic development is certainly an important issue, both from the positive (descriptive) and normative (policy prescription) perspectives. In recent years, policy discussions have included increasing references to real exchange rate stability and cor ...
The international monetary and financial system: its Achilles heel
... 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 ...
oecd development centre
... lower debt costs may be of utmost importance in boosting investment and future output growth on the continent. This paper aims at identifying the determinants of South African currency premia — such premia usually form an important element of debt cost in developing countries — in order to assess th ...
... lower debt costs may be of utmost importance in boosting investment and future output growth on the continent. This paper aims at identifying the determinants of South African currency premia — such premia usually form an important element of debt cost in developing countries — in order to assess th ...
Does the Kiwi fly when the Kangaroo jumps?
... σABT 1 , σABT 2 ) in the function g(.) using repetitive samples of the N1 values of the announcement date data and the N2 values of the background “noise” data. The confidence intervals are larger than suggested by the asymptotic distribution of the estimator, and have an extended upper tail. For sm ...
... σABT 1 , σABT 2 ) in the function g(.) using repetitive samples of the N1 values of the announcement date data and the N2 values of the background “noise” data. The confidence intervals are larger than suggested by the asymptotic distribution of the estimator, and have an extended upper tail. For sm ...
DP2010/10 Does the Kiwi fly when the Kangaroo
... significantly to Australian GDP and trade balance surprises, the two real Australian macroeconomic surprises we considered. However, it responds less to the nominal Australian shocks we considered, with no response to CPI shock and only a small response to monetary policy announcements. A comparison ...
... significantly to Australian GDP and trade balance surprises, the two real Australian macroeconomic surprises we considered. However, it responds less to the nominal Australian shocks we considered, with no response to CPI shock and only a small response to monetary policy announcements. A comparison ...
An Introduction to International Money and Foreign Exchange Markets
... money holdings earn no interest ( i ), but can be used immediately, if necessary, as a means of payment. Parts of broader money stocks earn a (low) interest rate at the expense of a somewhat lower liquidity. Both compete with still less liquid financial assets earning a higher rate of return. Most t ...
... money holdings earn no interest ( i ), but can be used immediately, if necessary, as a means of payment. Parts of broader money stocks earn a (low) interest rate at the expense of a somewhat lower liquidity. Both compete with still less liquid financial assets earning a higher rate of return. Most t ...
We estimate a small macro model, where the short
... specified and that it is a robust estimator because it does not require information about the exact distribution of the error term. GMM will have a sufficiently large number of lags as instruments such that the dynamic is similar to that of a VAR. The exchange rate and the country’s national income ...
... specified and that it is a robust estimator because it does not require information about the exact distribution of the error term. GMM will have a sufficiently large number of lags as instruments such that the dynamic is similar to that of a VAR. The exchange rate and the country’s national income ...
NBER WORKING PAPER SERIES EXPECTATIONS AND EXCHANGE RATE POLICY Michael B. Devereux
... are highly inflexible.” Friedman’s case for flexible exchange rates was derived, however, in a world in which capital flows were absent. In his world, the exchange rate would determine the terms of trade, but it was not ...
... are highly inflexible.” Friedman’s case for flexible exchange rates was derived, however, in a world in which capital flows were absent. In his world, the exchange rate would determine the terms of trade, but it was not ...
Hyder, Zulfiqar and Adil Mahboob, 2006, “Equilibrium Real Effective
... Initially, the rupee dollar parity witnessed a sharp nominal depreciation of 18.5% during Fiscal Year 2001, which shows the market correction of the cumulative overvaluation that took place during Fiscal Year 1999 and Fiscal Year 2000. In the new exchange rate regime, monetary instruments act as a n ...
... Initially, the rupee dollar parity witnessed a sharp nominal depreciation of 18.5% during Fiscal Year 2001, which shows the market correction of the cumulative overvaluation that took place during Fiscal Year 1999 and Fiscal Year 2000. In the new exchange rate regime, monetary instruments act as a n ...
On the Rand: Determinants of the South African Exchange Rate
... o The real interest differential (nominal interest rate on rand government bonds, minus expected inflation, minus the same for abroad) should have a positive effect on the perceived rate of return to holding rand assets and therefore on the value of the rand. Initially we used the one-year lag in th ...
... o The real interest differential (nominal interest rate on rand government bonds, minus expected inflation, minus the same for abroad) should have a positive effect on the perceived rate of return to holding rand assets and therefore on the value of the rand. Initially we used the one-year lag in th ...
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.