Foreign Currency Transactions
... The financial instrument must contain one or more underlying, and one or more notional amounts. ...
... The financial instrument must contain one or more underlying, and one or more notional amounts. ...
La Follette School of Public Affairs Dollar Real Exchange Rate
... nominal exchange rate by adding actual inflation to changes in the model-based real exchange rate. We find that the model-based exchange rates display two well known properties of actual exchange rates. First, for both nominal and real model based rates, autocorrelations of the growth rates are qui ...
... nominal exchange rate by adding actual inflation to changes in the model-based real exchange rate. We find that the model-based exchange rates display two well known properties of actual exchange rates. First, for both nominal and real model based rates, autocorrelations of the growth rates are qui ...
NBER WORKING PAPER SEPJES EXPLAINING THE DURATION OF EXCHANGE-RATE PEGS Michael W. Klein
... value of it) since this results in less accumulated misalignment at any moment Given x, the 9An alternative approach involves modeling the optimum length of apeg over a time horizon that exceeds the length of the peg; that is, to model a repeated series of episodes. We found that this approach, unli ...
... value of it) since this results in less accumulated misalignment at any moment Given x, the 9An alternative approach involves modeling the optimum length of apeg over a time horizon that exceeds the length of the peg; that is, to model a repeated series of episodes. We found that this approach, unli ...
Epstein, Gerald and Erinc Yeldan: "Inflation Targeting, Employment
... appropriate changes in the central bank law that enhances the independence of the institution (Bernanke, et. al. 1999, p.102; Mishkin and Schmidt-Hebbel, 2001, p.8. See also Buiter, 2006 for an evaluation). Ironically, employment creation has dropped off the direct agenda of most central banks just ...
... appropriate changes in the central bank law that enhances the independence of the institution (Bernanke, et. al. 1999, p.102; Mishkin and Schmidt-Hebbel, 2001, p.8. See also Buiter, 2006 for an evaluation). Ironically, employment creation has dropped off the direct agenda of most central banks just ...
NBER WORKING PAPER SERIES THE LIBERALIZATION OF THE CURRENT CAPITAL ACCOUNTS AND
... optimizing consumers and producers is developed to analyze how different policies geared at liberalizing the current and capital accounts of the balance of payments affect the equilibrium real exchange rate (RER). In particular, the effects of a reduction in the level of import tariffs and of a chan ...
... optimizing consumers and producers is developed to analyze how different policies geared at liberalizing the current and capital accounts of the balance of payments affect the equilibrium real exchange rate (RER). In particular, the effects of a reduction in the level of import tariffs and of a chan ...
View/Open
... stronger economy, a smaller current account deficit, a higher domestic interest rate, change in investors’ expectations, etc. were major reasons for a stronger New Zealand dollar during 2002 and 2003. Drew and Sethi (2007) indicated that a tight monetary policy or a higher official cash rate would r ...
... stronger economy, a smaller current account deficit, a higher domestic interest rate, change in investors’ expectations, etc. were major reasons for a stronger New Zealand dollar during 2002 and 2003. Drew and Sethi (2007) indicated that a tight monetary policy or a higher official cash rate would r ...
Monetary Policy
... and inflation rates low, but it can’t affect either of these economic variables directly. The Fed uses variables, called monetary policy targets, that it can affect directly and that, in turn, affect variables that are closely related to the Fed’s policy goals, such as real GDP, employment, and the ...
... and inflation rates low, but it can’t affect either of these economic variables directly. The Fed uses variables, called monetary policy targets, that it can affect directly and that, in turn, affect variables that are closely related to the Fed’s policy goals, such as real GDP, employment, and the ...
Econometric Analysis of Money Demand in Serbia
... climate. This results from the fact that the rising money demand brings about the increase in production and/or causes the rate of money circulation to decline, while the falling money demand is the result of the contracted output in real terms. There are short-term and long-term aspects of money de ...
... climate. This results from the fact that the rising money demand brings about the increase in production and/or causes the rate of money circulation to decline, while the falling money demand is the result of the contracted output in real terms. There are short-term and long-term aspects of money de ...
The Internationalization of the Renminbi
... same way as we discuss basic requisites of other fully fledged reserve currencies. China’s policy for internationalizing the RMB has in some way responded to the risks and problems it faces. China has designed an RMB-based trade policy, via bilateral swap agreements, to spread the international use ...
... same way as we discuss basic requisites of other fully fledged reserve currencies. China’s policy for internationalizing the RMB has in some way responded to the risks and problems it faces. China has designed an RMB-based trade policy, via bilateral swap agreements, to spread the international use ...
Day 7 IS-LM-BP Model..
... 1. Begin in equilibrium at (i1, Y1). Now increase Real GDP to Y2. 2. Transaction Demand for money increases, shifts out to L(i, Y2). 3. New Money market equilibrium at Y2 with higher interest rate, i2. 4. LM Curve summarizes relationship between i and Y in Money market. M/P ...
... 1. Begin in equilibrium at (i1, Y1). Now increase Real GDP to Y2. 2. Transaction Demand for money increases, shifts out to L(i, Y2). 3. New Money market equilibrium at Y2 with higher interest rate, i2. 4. LM Curve summarizes relationship between i and Y in Money market. M/P ...
Mexico: Stabilization, Reform, and No Growth
... tion in others, with the balance expected to shift soon toward expansion as the rewards of reform cumulate into sustained high growth. The more pessimistic view, however, is that just as in Chile in the late 1970s positive, sustainable growth will come only after the overvaluation is corrected. Of c ...
... tion in others, with the balance expected to shift soon toward expansion as the rewards of reform cumulate into sustained high growth. The more pessimistic view, however, is that just as in Chile in the late 1970s positive, sustainable growth will come only after the overvaluation is corrected. Of c ...
NBER WORKING PAPER SERIES CRISES AND SUDDEN STOPS:
... bond market. In fact, issuance in the bond market surpasses that of the syndicated- loan market, with Latin American countries’ bond issuance increasing from 1 billion dollars in 1990 to 64 billion dollars in 1997. The Brady plan, with its initiative of restructuring distressed commercial bank loan ...
... bond market. In fact, issuance in the bond market surpasses that of the syndicated- loan market, with Latin American countries’ bond issuance increasing from 1 billion dollars in 1990 to 64 billion dollars in 1997. The Brady plan, with its initiative of restructuring distressed commercial bank loan ...
New perspectives on the Great Depression
... 1940s to create the architecture, including the International Monetary Fund and the World Bank, of the Bretton Woods System of fixed‐but‐adjustable exchange rates. Rauchway emphasizes that this system fostered a 30‐year period of stable global economic growth before giving wa ...
... 1940s to create the architecture, including the International Monetary Fund and the World Bank, of the Bretton Woods System of fixed‐but‐adjustable exchange rates. Rauchway emphasizes that this system fostered a 30‐year period of stable global economic growth before giving wa ...
Financial Reporting in Hyperinflationary Economies
... such subsidiary need to be restated by applying a general price index of the country in whose currency it reports before they are included in the consolidated financial statements issued by its parent. Where such a subsidiary is a foreign subsidiary, its restated financial statements are translated ...
... such subsidiary need to be restated by applying a general price index of the country in whose currency it reports before they are included in the consolidated financial statements issued by its parent. Where such a subsidiary is a foreign subsidiary, its restated financial statements are translated ...
“
... peg the nominal exchange rate and at the same time pursue an independent monetary policy aimed at stabilizing the price level, without imposing capital controls; fine-tune the economy; make accurate macroeconomic forecasts. ...
... peg the nominal exchange rate and at the same time pursue an independent monetary policy aimed at stabilizing the price level, without imposing capital controls; fine-tune the economy; make accurate macroeconomic forecasts. ...
Two Economic Crisis and Dollarization for Cambodia, Laos, and
... Along with this phenomenon, Cambodia, Laos, and Vietnam have been noticeably affected by dollarization from the onset of its economic reform process.3) In particular, the prevalent use of the dollar has been noticed in Cambodia and Laos. The U.S. dollar is held in the form of cash in circulation and ...
... Along with this phenomenon, Cambodia, Laos, and Vietnam have been noticeably affected by dollarization from the onset of its economic reform process.3) In particular, the prevalent use of the dollar has been noticed in Cambodia and Laos. The U.S. dollar is held in the form of cash in circulation and ...
Stories of the Twentieth Century for the Twenty
... systemic banking crises in the 1980s and 1990s. Around the same time, European countries also went through currency devaluation crises, in some cases related to banking crises. While painful, these crises were less frequent and generally less devastating than widespread cataclysms such as the 1980s ...
... systemic banking crises in the 1980s and 1990s. Around the same time, European countries also went through currency devaluation crises, in some cases related to banking crises. While painful, these crises were less frequent and generally less devastating than widespread cataclysms such as the 1980s ...
... moral hazard created by the government safety net, and excessive risk-taking is one result. Even as governments fail in supervising banks, they in effect offer an implicit safety net that banks would not be allowed to go broke, and thus reassure depositors and foreign lenders that they do not need ...
Exchange Rates and Monetary Policy in Emerging Market Economies Michael B. Devereux
... the choice of monetary policy. We compare three different types of monetary rules, a fixed exchange rate rule, and two types of inflation targeting rules. While a fixed exchange rate is a well-defined rule for a small economy, there is an infinite variety of different types of ‘floating’ exchange ra ...
... the choice of monetary policy. We compare three different types of monetary rules, a fixed exchange rate rule, and two types of inflation targeting rules. While a fixed exchange rate is a well-defined rule for a small economy, there is an infinite variety of different types of ‘floating’ exchange ra ...
The effects of exchange rate fluctuations on economic activity in
... the output and price responses to unanticipated changes in the exchange rate. Based on theory’s solutions, empirical models are formulated for output, price, and the real value of components of aggregate demand in Turkey: consumption, investment, exports, and imports. The models incorporate demand a ...
... the output and price responses to unanticipated changes in the exchange rate. Based on theory’s solutions, empirical models are formulated for output, price, and the real value of components of aggregate demand in Turkey: consumption, investment, exports, and imports. The models incorporate demand a ...
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.