Concepts of equilibrium exchange rates
... current equilibrium exchange rate which he argues will pertain if the market has full knowledge of the facts and reacts rationally. Of all the equilibrium concepts, this is perhaps the most difficult to define rigorously in economic terms but, as will be explained later, it clearly defines a particu ...
... current equilibrium exchange rate which he argues will pertain if the market has full knowledge of the facts and reacts rationally. Of all the equilibrium concepts, this is perhaps the most difficult to define rigorously in economic terms but, as will be explained later, it clearly defines a particu ...
DOES THE CURRENT ACCOUNT MATTER?* By Sebastian Edwards University of California, Los Angeles
... the current account sustainability that have recently become popular in financial institutions, both private and official. More specifically, I argue that although these models provide some useful information about the long run sustainability of the external sector accounts, they are of limited use ...
... the current account sustainability that have recently become popular in financial institutions, both private and official. More specifically, I argue that although these models provide some useful information about the long run sustainability of the external sector accounts, they are of limited use ...
Current Account Reversals: Always a Problem?
... can occur for reasons other than those associated with current account reversals, the connections between the two phenomena are clear. Recall Fischer’s (1988) caution that the “primary indicator [of a looming crisis] is the current account deficit.”4 At the same time, crises – currency crises in pa ...
... can occur for reasons other than those associated with current account reversals, the connections between the two phenomena are clear. Recall Fischer’s (1988) caution that the “primary indicator [of a looming crisis] is the current account deficit.”4 At the same time, crises – currency crises in pa ...
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... the current account sustainability that have recently become popular in financial institutions, both private and official. More specifically, I argue that although these models provide some useful information about the long run sustainability of the external sector accounts, they are of limited use ...
... the current account sustainability that have recently become popular in financial institutions, both private and official. More specifically, I argue that although these models provide some useful information about the long run sustainability of the external sector accounts, they are of limited use ...
146s10_l18.pdf
... Internal Balance Macroeconomic goals of producing at potential output at full ...
... Internal Balance Macroeconomic goals of producing at potential output at full ...
NATIONAL BANK OF POLAND WORKING PAPER No. 135
... of money as an information variable seems to be relatively more important in economies with low levels of development where the data on real economy are generally of poor quality and available with a long delay. A similar concept of extending the standard central bank reaction function with a moneta ...
... of money as an information variable seems to be relatively more important in economies with low levels of development where the data on real economy are generally of poor quality and available with a long delay. A similar concept of extending the standard central bank reaction function with a moneta ...
NBER WORKING PAPERS SERIES DEVALUATION EXPECTATIONS: ThE SWEDISH KRONA 1982-1991 Hans Lindberg
... devaluations during a 12 month period can certainly be disregarded. We shall also see below that the expected rate of devaluation dropped down to zero for some lime after the devaluation of the krona 1982.6 (For the case when more than one realignment can occur within the mauturities considered, see ...
... devaluations during a 12 month period can certainly be disregarded. We shall also see below that the expected rate of devaluation dropped down to zero for some lime after the devaluation of the krona 1982.6 (For the case when more than one realignment can occur within the mauturities considered, see ...
Sebastian Edwards Working Paper No. 1507 Massachusetts Avenue Cambridge,
... the Balance of Payments ...
... the Balance of Payments ...
Seminar Paper No. 648 INTERNATIONAL EXPERIENCES WITH DIFFERENT MONETARY POLICY REGIMES by
... exchange-rate target provides an automatic rule for the conduct of monetary policy that avoids the time-inconsistency problem. It forces a tightening of monetary policy when there is a tendency for the domestic currency to depreciate or a loosening of policy when there is a tendency for the ...
... exchange-rate target provides an automatic rule for the conduct of monetary policy that avoids the time-inconsistency problem. It forces a tightening of monetary policy when there is a tendency for the domestic currency to depreciate or a loosening of policy when there is a tendency for the ...
S33898F437_en.pdf
... ingredient can lead to failure. Dom estic efforts are crucial, but also the external environm ent is m ost relevant. Our m ain concern is the effect on growth and equity, the two crucial joint objectives of econom ic policy. The aim is to develop a growing, better functioning econom y, in which both ...
... ingredient can lead to failure. Dom estic efforts are crucial, but also the external environm ent is m ost relevant. Our m ain concern is the effect on growth and equity, the two crucial joint objectives of econom ic policy. The aim is to develop a growing, better functioning econom y, in which both ...
Uganda - COMESA Monetary Institute
... (through administrative measures) or indirectly, through the balance sheet of the central bank (money market operations and reserve requirements). In the early 1990s, Uganda moved from reliance on credit or interest rate controls toward reliance on money market operations in view of the increasing i ...
... (through administrative measures) or indirectly, through the balance sheet of the central bank (money market operations and reserve requirements). In the early 1990s, Uganda moved from reliance on credit or interest rate controls toward reliance on money market operations in view of the increasing i ...
International Financial Flows in the New Normal: Key Patterns
... the composition of international financial flows is now drastically was smaller (which in turn could be related to the crises that different. Whereas the “other investment” category (mostly bank affected EMEs in the 1990s, to the lower level of financial flows) used to account for more than 40% of t ...
... the composition of international financial flows is now drastically was smaller (which in turn could be related to the crises that different. Whereas the “other investment” category (mostly bank affected EMEs in the 1990s, to the lower level of financial flows) used to account for more than 40% of t ...
ECONOMICS AN AUSTRALIAN CONTRIBUTION TO
... over imports and a balance of payments surplus, thus resulting in specie (gold) being shifted from the rest of the world to Britain. This process would return what Hume called the ‘level of money’ to its equilibrium state. Hence the price-specie-flow mechanism corrects balance of payments disequilib ...
... over imports and a balance of payments surplus, thus resulting in specie (gold) being shifted from the rest of the world to Britain. This process would return what Hume called the ‘level of money’ to its equilibrium state. Hence the price-specie-flow mechanism corrects balance of payments disequilib ...
Decomposing Sources of Inflation
... (2007), and Clark and Davig (2008). Therefore, the aim of this paper is to decompose the source of inflation in Thailand into cost-push, demand-pull, and inflation expectations shocks to better understand the country’s inflation characteristics. Cost-push inflation refers to the rise in price level ...
... (2007), and Clark and Davig (2008). Therefore, the aim of this paper is to decompose the source of inflation in Thailand into cost-push, demand-pull, and inflation expectations shocks to better understand the country’s inflation characteristics. Cost-push inflation refers to the rise in price level ...
eee06-Stazka2 3772739 en
... real – and nominal, if prices are sticky – depreciation when the nominal rate is floating entail reserve losses under fixed rates. Faced with reserve losses that, if large enough, could create a balance of payments crisis and a forced devaluation, countries that choose a pegged exchange rate system ...
... real – and nominal, if prices are sticky – depreciation when the nominal rate is floating entail reserve losses under fixed rates. Faced with reserve losses that, if large enough, could create a balance of payments crisis and a forced devaluation, countries that choose a pegged exchange rate system ...
Is low inflation really causing the decline in exchange rate pass
... countries that adopted IT. In a credible regime, expectations are more likely to be in line with the authority’s inflation target and therefore will be less influenced by short term exchange rate movements. Levin, Natalucci and Piger (2004), Schimidt-Hebbel and Tapias (2002), Minella et al. (2003) a ...
... countries that adopted IT. In a credible regime, expectations are more likely to be in line with the authority’s inflation target and therefore will be less influenced by short term exchange rate movements. Levin, Natalucci and Piger (2004), Schimidt-Hebbel and Tapias (2002), Minella et al. (2003) a ...
an empirical study of the yen/dollar exchange rate
... Dominguez (2003a) concludes that recent G3 intervention was often successful with regard to both short and longer-term exchange rate movements. However, other papers do not support the conclusion that intervention is effective. Humpage (1988), for example, concludes that intervention was unable to i ...
... Dominguez (2003a) concludes that recent G3 intervention was often successful with regard to both short and longer-term exchange rate movements. However, other papers do not support the conclusion that intervention is effective. Humpage (1988), for example, concludes that intervention was unable to i ...
A Review of Crisis Management Programs Supported by IMF Stand
... actually drawn, indicating that financing was sufficiently large to restore investor confidence. Program documents explicitly recognized risks, though the presentation was too pro forma to add value. For the most part, however, staff did their due diligence in contingency planning. The IMF-supported ...
... actually drawn, indicating that financing was sufficiently large to restore investor confidence. Program documents explicitly recognized risks, though the presentation was too pro forma to add value. For the most part, however, staff did their due diligence in contingency planning. The IMF-supported ...
Is the Crisis Problem Growing More Severe?
... the grounds that they may not have had the same negative repercussions on the real economy as currency crises occurring in some earlier periods. In fact, as we show below (see for example Figure 4), the average output loss due to currency crises has been broadly similar since 1973, in the Bretton Wo ...
... the grounds that they may not have had the same negative repercussions on the real economy as currency crises occurring in some earlier periods. In fact, as we show below (see for example Figure 4), the average output loss due to currency crises has been broadly similar since 1973, in the Bretton Wo ...
NBER WORKING PAPER SERIES THIRTY YEARS OF CURRENT ACCOUNT IMBALANCES,
... In this paper I analyze the anatomy of current account adjustments in the world economy during the last three decades. The main findings may be summarized as follows: (a) Major reversals in current account deficits have tended to be associated to “sudden stops” of capital inflows. (b) The probabilit ...
... In this paper I analyze the anatomy of current account adjustments in the world economy during the last three decades. The main findings may be summarized as follows: (a) Major reversals in current account deficits have tended to be associated to “sudden stops” of capital inflows. (b) The probabilit ...
The Anatomy of Large Valuation Episodes Agustín Bénétrix Trinity College Dublin
... revived the concern for the dynamics of the external accounts. In particular, there is a growing interest in the impact of capital gains on foreign assets and liabilities. In other words, the valuation channel. This growth in gross stocks, documented by Lane and Milesi-Ferretti (2001), together with ...
... revived the concern for the dynamics of the external accounts. In particular, there is a growing interest in the impact of capital gains on foreign assets and liabilities. In other words, the valuation channel. This growth in gross stocks, documented by Lane and Milesi-Ferretti (2001), together with ...
Optimal Monetary Policy in a Currency Union: Implications of a
... …rms must borrow at the beginning of a period from …nancial intermediaries. Financial intermediaries receive deposits from households and supply loans to …rms at the nominal interest rate Rtl . For simplicity we can approximate the lending rate Rtl by the policycontrolled risk-free interest rate Rt ...
... …rms must borrow at the beginning of a period from …nancial intermediaries. Financial intermediaries receive deposits from households and supply loans to …rms at the nominal interest rate Rtl . For simplicity we can approximate the lending rate Rtl by the policycontrolled risk-free interest rate Rt ...
A New Look at Pass-through
... view of pass-through (notional pass-through) is one where the exchange rate changes for an exogenous reason and we see how prices change over time. Given this view, pass-through plays a major role in determining the extent of exchange rate volatility, the response of the terms of trade and trade bal ...
... view of pass-through (notional pass-through) is one where the exchange rate changes for an exogenous reason and we see how prices change over time. Given this view, pass-through plays a major role in determining the extent of exchange rate volatility, the response of the terms of trade and trade bal ...
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.