![Exchange Rates and Monetary Policy in Emerging Market Economies Michael B. Devereux](http://s1.studyres.com/store/data/008234152_1-a3e45880612d2f7da558e1ddb8ba0773-300x300.png)
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 ...
Sterilisation, Capital Mobility and Interest Rate Determination for
... high (around 1) then internal factors such as sterilisation do not have an impact on the ...
... high (around 1) then internal factors such as sterilisation do not have an impact on the ...
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38
... and into the first half of 1936. However, while consumer prices remained steady, wholesale prices began to rise briskly in the second half of 1936. By December of that year, they were 4 percent higher than they had been a year before. Meanwhile, gold continued to pour in from abroad and banks contin ...
... and into the first half of 1936. However, while consumer prices remained steady, wholesale prices began to rise briskly in the second half of 1936. By December of that year, they were 4 percent higher than they had been a year before. Meanwhile, gold continued to pour in from abroad and banks contin ...
Expectations, Real Exchange Rates, and Monetary Policy Michael B. Devereux Charles Engel UBC
... Under CGG’s price setting assumption (producer currency pricing, or PCP), monetary policy can eliminate all of the distortions from nominal price stickiness by driving inflation to zero. Under LCP, however, eliminating inflationary pressure does not eradicate the distortions introduced by sticky pri ...
... Under CGG’s price setting assumption (producer currency pricing, or PCP), monetary policy can eliminate all of the distortions from nominal price stickiness by driving inflation to zero. Under LCP, however, eliminating inflationary pressure does not eradicate the distortions introduced by sticky pri ...
External Wealth, the Trade Balance, and the Real Exchange
... -6balance and the real exchange rate. However, our focus in this paper is on the long-run relation between these variables. For countries with market power in international markets, trade imbalances may also affect the structure of international relative prices. For instance, a trade deficit may be ...
... -6balance and the real exchange rate. However, our focus in this paper is on the long-run relation between these variables. For countries with market power in international markets, trade imbalances may also affect the structure of international relative prices. For instance, a trade deficit may be ...
ch16_FinancialMarkets
... securities to the public. • Public has more securities, less $ in their accounts • Example: If Fed sells $200 Million in securities to the public, with a rrr of .05, the money supply (M1) will fall by $4000 Million ($4 Billion)=($200M*20). • Initially, people take $200 million out of their accoun ...
... securities to the public. • Public has more securities, less $ in their accounts • Example: If Fed sells $200 Million in securities to the public, with a rrr of .05, the money supply (M1) will fall by $4000 Million ($4 Billion)=($200M*20). • Initially, people take $200 million out of their accoun ...
Chapter 13
... – The supply curve slopes upward, because if people can get more units of foreign currency for a dollar, they’ll supply more dollars – Demanding dollars means wanting to buy dollars in exchange for the foreign currency – The demand curve slopes downward, because if people need to give up a greater a ...
... – The supply curve slopes upward, because if people can get more units of foreign currency for a dollar, they’ll supply more dollars – Demanding dollars means wanting to buy dollars in exchange for the foreign currency – The demand curve slopes downward, because if people need to give up a greater a ...
Economic Growth and Real Exchange Rate
... flows of foreign capital. Some investors in industrial countries pursue high returns (even with high risk) as part of a diversified portfolio. Capital inflows put pressure on the (nominal) exchange rate to appreciate. For example, demand for the currency of an emerging market will rise when foreign ...
... flows of foreign capital. Some investors in industrial countries pursue high returns (even with high risk) as part of a diversified portfolio. Capital inflows put pressure on the (nominal) exchange rate to appreciate. For example, demand for the currency of an emerging market will rise when foreign ...
value based questions from all chapters
... 11. How will an increase in the number of firms shift the market supply curve? 12. What is the price elasticity associated with a supply curve that is vertical? 13. Due to improvement of technology, the marginal cost of production of television has gone down. How will it affect the supply curve of t ...
... 11. How will an increase in the number of firms shift the market supply curve? 12. What is the price elasticity associated with a supply curve that is vertical? 13. Due to improvement of technology, the marginal cost of production of television has gone down. How will it affect the supply curve of t ...
single central bank: macroeconomic costs and benefits for the
... Regional cooperation and integration have become increasingly important and countries in the SADC region have made tremendous strides. Concerted efforts have been undertaken by Member States to attain the set convergence criteria and maintain them despite several internal and external shocks. The ke ...
... Regional cooperation and integration have become increasingly important and countries in the SADC region have made tremendous strides. Concerted efforts have been undertaken by Member States to attain the set convergence criteria and maintain them despite several internal and external shocks. The ke ...
global financial crisis and its effects on turkey
... commitment to pegged exchange rate deteriorated the situation. Capital outflow suddenly exploded. Whole financial system came to the brink of collapse. International loan led by IMF, World Bank and Inter-American Development Bank was given to Argentine. Just like Mexico, after a contraction in 1995, ...
... commitment to pegged exchange rate deteriorated the situation. Capital outflow suddenly exploded. Whole financial system came to the brink of collapse. International loan led by IMF, World Bank and Inter-American Development Bank was given to Argentine. Just like Mexico, after a contraction in 1995, ...
inflation, exchange rates, and stabilization
... equilibrium relative prices. In the Chilean case, three arguments were advanced:(1) that trade liberalization and extremely high productivity growth had changed the equilibrium price structure; (2) that the basket of Chilean tradables was very special compared with the basket represented by world in ...
... equilibrium relative prices. In the Chilean case, three arguments were advanced:(1) that trade liberalization and extremely high productivity growth had changed the equilibrium price structure; (2) that the basket of Chilean tradables was very special compared with the basket represented by world in ...
NBER WORKING PAPER SERIES A LONG RUN VIEW Michael D. Bordo
... liabilities relative to their total obligations; on the other hand, many countries with low to intermediate ratios of hard currency debt to total debt did have frequent and severe financial crises. In the late twentieth century, our research documents that many advanced countries exhibited significa ...
... liabilities relative to their total obligations; on the other hand, many countries with low to intermediate ratios of hard currency debt to total debt did have frequent and severe financial crises. In the late twentieth century, our research documents that many advanced countries exhibited significa ...
Working Paper 12-15: Choice and Coercion in East Asian Exchange
... of these governments? The rapid growth of China and its role as a competitor for both trade and foreign direct investment loom large, but these factors should be conceptualized with care. The fact that some degree of regional stability is being achieved by stabilizing against the dollar also present ...
... of these governments? The rapid growth of China and its role as a competitor for both trade and foreign direct investment loom large, but these factors should be conceptualized with care. The fact that some degree of regional stability is being achieved by stabilizing against the dollar also present ...
Nominal GDP Targeting for Middle-Income Countries
... expansion, including usually an increase in expected inflation. The motive has been to address economic weakness in the United States, United Kingdom, Euroland, and Japan, in the aftermath of the severe negative demand shock that hit them in 2008. Developing countries do not particularly need moneta ...
... expansion, including usually an increase in expected inflation. The motive has been to address economic weakness in the United States, United Kingdom, Euroland, and Japan, in the aftermath of the severe negative demand shock that hit them in 2008. Developing countries do not particularly need moneta ...
Exchange Rate, Inflation and Interest Rates Relationships
... extent that countries with high rates of inflation would have higher nominal interest rates than those with lower rates of inflation.The purchasing power theory (PPP), on the other hand, states that the normal equilibrium rate of exchange between two inconvertible currencies is determined by the rat ...
... extent that countries with high rates of inflation would have higher nominal interest rates than those with lower rates of inflation.The purchasing power theory (PPP), on the other hand, states that the normal equilibrium rate of exchange between two inconvertible currencies is determined by the rat ...
This PDF is a selection from a published volume
... However, the validity of this finding is not general. Even in developed countries one can observe significant movements of the internal real exchange rate, as De Gregorio and Wolf (1994), or more recently, Lopez-Salido, Restoy, and Valles (2005) have documented, but the real importance of this pheno ...
... However, the validity of this finding is not general. Even in developed countries one can observe significant movements of the internal real exchange rate, as De Gregorio and Wolf (1994), or more recently, Lopez-Salido, Restoy, and Valles (2005) have documented, but the real importance of this pheno ...
Study of the Behavior of the Indonesian Rupiah/US Dollar
... negatively associated with real M2, the US Treasury bill rate, country risk, and the expected inflation rate. The error variance can be characterized by the GARCH process. Hsing (2007) shows that the US dollar/kuna exchange rate for Croatia is negatively associated with real M1, the US T-bond rate, ...
... negatively associated with real M2, the US Treasury bill rate, country risk, and the expected inflation rate. The error variance can be characterized by the GARCH process. Hsing (2007) shows that the US dollar/kuna exchange rate for Croatia is negatively associated with real M1, the US T-bond rate, ...
Paper III - Is East Africa an Optimum Currency Area
... equally open. This is because it reduces transaction costs and exchange rate risk that would be suffered if a flexible exchange rate were to be maintained against each other. Also, such a currency union would provide a credible nominal anchor for monetary policy in the individual countries. They fur ...
... equally open. This is because it reduces transaction costs and exchange rate risk that would be suffered if a flexible exchange rate were to be maintained against each other. Also, such a currency union would provide a credible nominal anchor for monetary policy in the individual countries. They fur ...
Chapter 24 The Open Economy with Fixed Exchange Rates
... of international trade. Thus, while the western countries liberalized their international trade regimes by reducing tariffs and eliminating quantitative restrictions on imports, they maintained substantial restrictions on the private export and import of capital. One motivation for this policy was th ...
... of international trade. Thus, while the western countries liberalized their international trade regimes by reducing tariffs and eliminating quantitative restrictions on imports, they maintained substantial restrictions on the private export and import of capital. One motivation for this policy was 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.