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When Contractionary Fiscal Policy Is Expansionary - ANU Press
... finance the additional public spending by acquiring die Treasury bonds sold to fund die higher budget deficit. Yet foreigners will acquire domestic-currency denomi nated bonds issued at an interest rate in line with global interest rates only iI they are sure that die exchange rate will not have de ...
... finance the additional public spending by acquiring die Treasury bonds sold to fund die higher budget deficit. Yet foreigners will acquire domestic-currency denomi nated bonds issued at an interest rate in line with global interest rates only iI they are sure that die exchange rate will not have de ...
24. The Limits of Monetary Policy
... increase the rate of economic growth or permanently lower the rate of unemployment by increasing money growth, nor can it permanently lower real interest rates. But it can throw the economy off track by policy errors— that is, by creating either too much or too little money to maintain stable expect ...
... increase the rate of economic growth or permanently lower the rate of unemployment by increasing money growth, nor can it permanently lower real interest rates. But it can throw the economy off track by policy errors— that is, by creating either too much or too little money to maintain stable expect ...
The Bretton Woods International Monetary System
... Michael D. Bordo is professor of economics at Rutgers University and a research associate of the National Bureau of Economic Research. For helpful comments and suggestions the author would like to thank Forrest Capie, Max Corden, Barry Eichengreen, Lars Jonung, Charles Kindleberger, Adam Klug, Allan ...
... Michael D. Bordo is professor of economics at Rutgers University and a research associate of the National Bureau of Economic Research. For helpful comments and suggestions the author would like to thank Forrest Capie, Max Corden, Barry Eichengreen, Lars Jonung, Charles Kindleberger, Adam Klug, Allan ...
Chapter 16: Monetary Policy
... The prime interest rate is the benchmark interest rate that banks and thrifts use as a reference point for a wide range of loans to businesses and individuals. A change in the Federal funds rate will cause a similar change to the prime rate and other short-term interest rates. ...
... The prime interest rate is the benchmark interest rate that banks and thrifts use as a reference point for a wide range of loans to businesses and individuals. A change in the Federal funds rate will cause a similar change to the prime rate and other short-term interest rates. ...
NBER WORKING PAPER SERIES STABILIZATION POLICIES IN OPEN ECONOMIES Richard C. Marston
... the trade balance, so no foreign disturbance can affect the economy. This strong conclusion about insulation has often been used as an argument for flexible rates, even though it is very sensitive to assumptions about capital mobility. ...
... the trade balance, so no foreign disturbance can affect the economy. This strong conclusion about insulation has often been used as an argument for flexible rates, even though it is very sensitive to assumptions about capital mobility. ...
china`s foreign exchange black market and exchange flight
... Sources: The data originate from IMF (various issues). The calculation is based on the method suggested by McDonald (1985). Note: Exchange flight figures were derived by: (Hong Kong’s imports, CIF)−[(China’s exports, FOB)×(1+0.1)], with “0.1” being allowances for freight and insurance. ...
... Sources: The data originate from IMF (various issues). The calculation is based on the method suggested by McDonald (1985). Note: Exchange flight figures were derived by: (Hong Kong’s imports, CIF)−[(China’s exports, FOB)×(1+0.1)], with “0.1” being allowances for freight and insurance. ...
NBER WORKING PAPER SERIES ECONOMIC LIBERALIZATION AND THE EQUILIBRIUM REAL EXCHANGE RATE
... Exchange Rate Devaluation in a Semi-Industrialized Country: The Experience of Argentina. 1955-1961 (MIT Press, 1966). In this work, which has become a classic on the subject, Diaz-Alejandro developed a number of important insights including the by-now popular idea that under certain circumstances ...
... Exchange Rate Devaluation in a Semi-Industrialized Country: The Experience of Argentina. 1955-1961 (MIT Press, 1966). In this work, which has become a classic on the subject, Diaz-Alejandro developed a number of important insights including the by-now popular idea that under certain circumstances ...
The Great Liquidity Boom and the Monetary Superpower Hypothesis
... ease the adjustment to a new equilibrium exchange rate. Third, the hard currency could be used to recapitalize any domestic financial institutions caught up in such a crisis, without resorting to fire-sales to foreign banks or excessively weakening the central bank or government balance sheets. Imba ...
... ease the adjustment to a new equilibrium exchange rate. Third, the hard currency could be used to recapitalize any domestic financial institutions caught up in such a crisis, without resorting to fire-sales to foreign banks or excessively weakening the central bank or government balance sheets. Imba ...
The Great Liquidity Boom and the Monetary Superpower Hypothesis
... ease the adjustment to a new equilibrium exchange rate. Third, the hard currency could be used to recapitalize any domestic financial institutions caught up in such a crisis, without resorting to fire-sales to foreign banks or excessively weakening the central bank or government balance sheets. Imba ...
... ease the adjustment to a new equilibrium exchange rate. Third, the hard currency could be used to recapitalize any domestic financial institutions caught up in such a crisis, without resorting to fire-sales to foreign banks or excessively weakening the central bank or government balance sheets. Imba ...
NBER WORKING PAPER SERIES
... In his case against the euro, Feldstein (1992) makes a similar argument: “A currency union means, of course, that nominal exchange rates cannot adjust to achieve a needed change in the real exchange rate. The local price level must, therefore, adjust to bring about the change in the real exchange ra ...
... In his case against the euro, Feldstein (1992) makes a similar argument: “A currency union means, of course, that nominal exchange rates cannot adjust to achieve a needed change in the real exchange rate. The local price level must, therefore, adjust to bring about the change in the real exchange ra ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... policies a¤ect the interest rate. 3. Use aggregate demand and aggregate supply graphs to show the e¤ects of monetary policy on real GDP and the price level. 4. Discuss the Fed’s setting of monetary policy targets. 5. Discuss the policies the Federal Reserve used during the ...
... policies a¤ect the interest rate. 3. Use aggregate demand and aggregate supply graphs to show the e¤ects of monetary policy on real GDP and the price level. 4. Discuss the Fed’s setting of monetary policy targets. 5. Discuss the policies the Federal Reserve used during the ...
This PDF is a selection from an out-of-print volume from the... of Economic Research
... Figure 11.3 plots three series of interest rates: the official bank loan rate, the yield rate of three-year corporate bonds, and the curb market rate, all of which are converted into real terms by subtracting the actual inflation rate. It is well known that the official interest rates on bank loans ...
... Figure 11.3 plots three series of interest rates: the official bank loan rate, the yield rate of three-year corporate bonds, and the curb market rate, all of which are converted into real terms by subtracting the actual inflation rate. It is well known that the official interest rates on bank loans ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... policies a¤ect the interest rate. 3. Use aggregate demand and aggregate supply graphs to show the e¤ects of monetary policy on real GDP and the price level. 4. Discuss the Fed’s setting of monetary policy targets. 5. Discuss the policies the Federal Reserve used during the ...
... policies a¤ect the interest rate. 3. Use aggregate demand and aggregate supply graphs to show the e¤ects of monetary policy on real GDP and the price level. 4. Discuss the Fed’s setting of monetary policy targets. 5. Discuss the policies the Federal Reserve used during the ...
A Century of Purchasing Power Parity - uc
... What new findings can this paper claim to offer given the wealth of research on PPP in the past? It first should be noted that empirical support for PPP has waxed and waned over the years. From an historical standpoint, there have been numerous studies of PPP for various countries over the period in ...
... What new findings can this paper claim to offer given the wealth of research on PPP in the past? It first should be noted that empirical support for PPP has waxed and waned over the years. From an historical standpoint, there have been numerous studies of PPP for various countries over the period in ...
M o n e t a r y ... Contents 1 March 2003
... weakness. In other words, current interest rate settings already ...
... weakness. In other words, current interest rate settings already ...
Recommending a Strategy
... A member country may request IMF financial assistance if it has a balance of payments need when it cannot find sufficient financing on affordable terms to meet its net international payments. An IMF loan eases the adjustment policies and reforms that a country must make to correct its balance of pay ...
... A member country may request IMF financial assistance if it has a balance of payments need when it cannot find sufficient financing on affordable terms to meet its net international payments. An IMF loan eases the adjustment policies and reforms that a country must make to correct its balance of pay ...
the terms of the debate
... the short-term or over a longer period such as a year, the latter situation constituting a "structural" imbalance. Unless trade is by barter, accounts are settled in money, with exporters in any given country usually preferring to be paid in their national currency. A trade deficit implies a demand ...
... the short-term or over a longer period such as a year, the latter situation constituting a "structural" imbalance. Unless trade is by barter, accounts are settled in money, with exporters in any given country usually preferring to be paid in their national currency. A trade deficit implies a demand ...
Venezuela Economics-Assessing default risks and haircut scenarios
... Dolartoday, well above the most pessimistic CPI estimates (e.g. the IMF’s), but volumes in the parallel market (USD31m per day in 2015, see figure 5) remained under the USD46.7m daily average of 2010-12. Despite the huge depreciation, parallel market dollar supply failed to pick up further because o ...
... Dolartoday, well above the most pessimistic CPI estimates (e.g. the IMF’s), but volumes in the parallel market (USD31m per day in 2015, see figure 5) remained under the USD46.7m daily average of 2010-12. Despite the huge depreciation, parallel market dollar supply failed to pick up further because o ...
CATO HANDBOOK CONGRESS FOR
... expected inflation can be in fact deflation.) The Fed’s function is not to set interest rates or to target the rate of unemployment or real growth. The Fed cannot control relative prices, employment, or output; it can directly control only the monetary base (currency held by the public and bank rese ...
... expected inflation can be in fact deflation.) The Fed’s function is not to set interest rates or to target the rate of unemployment or real growth. The Fed cannot control relative prices, employment, or output; it can directly control only the monetary base (currency held by the public and bank rese ...
foreign aid inflows and the real exchange rate in the cfa franc
... former colonies and also to exert some control over these countries. The zone was designed to allow the ability to facilitate transfers of fund between France and its ex-colonies in Africa; to convert currency at a fixed rate in the zone; and, finally, to centralise all of the monetary reserves of t ...
... former colonies and also to exert some control over these countries. The zone was designed to allow the ability to facilitate transfers of fund between France and its ex-colonies in Africa; to convert currency at a fixed rate in the zone; and, finally, to centralise all of the monetary reserves of t ...
tipec 04/1 - Trent University
... activity. Larger, more closed economies such as the United States and Japan have been less willing to fix their exchange rates than the smaller, more open countries of Europe”.3 The Canadian case is a clear anomaly in this respect. The country has long been one of the most open economies in the indu ...
... activity. Larger, more closed economies such as the United States and Japan have been less willing to fix their exchange rates than the smaller, more open countries of Europe”.3 The Canadian case is a clear anomaly in this respect. The country has long been one of the most open economies in the indu ...
ECON 611-001 Money and Central Banking
... Brainard, W.C. and Tobin, J., "Pitfalls in Financial Model Building," AER, 1968 . Sharpe, W., "Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk," J. of Finance, 19, September 1964. Mossin, J., "Equilibrium in a Capital Asset Market," Econometrica, 34, 1966. Lintner, J . ...
... Brainard, W.C. and Tobin, J., "Pitfalls in Financial Model Building," AER, 1968 . Sharpe, W., "Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk," J. of Finance, 19, September 1964. Mossin, J., "Equilibrium in a Capital Asset Market," Econometrica, 34, 1966. Lintner, J . ...
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.