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Exchange Rate Pass-Through to Import Prices in the
... ultimately consumed will contain value added from domestic distribution services.6 The substitutability implies that the weight of foreign products, and the overall quality mix of consumption, is responsive to exchange rate fluctuations. Moreover, distributors also can adjust the profit margin that ...
... ultimately consumed will contain value added from domestic distribution services.6 The substitutability implies that the weight of foreign products, and the overall quality mix of consumption, is responsive to exchange rate fluctuations. Moreover, distributors also can adjust the profit margin that ...
The IMF’s Indonesian Myths
... The growing debt burden and resulting fiscal deficit will force the government to raise taxes, electricity rates and fuel prices and to sell off state assets at fire-sale prices. The case of Bank Central Asia is an interesting example. The target price of Rp5 trillion does not take into account the ...
... The growing debt burden and resulting fiscal deficit will force the government to raise taxes, electricity rates and fuel prices and to sell off state assets at fire-sale prices. The case of Bank Central Asia is an interesting example. The target price of Rp5 trillion does not take into account the ...
Estimating A Monetary Policy Reaction Function for the CBN–
... sectoral allocation of credit by banks to the private sector, interest rate regime, the trade policy as well as quantitative restrictions on imports and foreign exchange modalities. The sectoral distribution of bank credit by the CBN was reflected in its annual guidelines. The control of interest ra ...
... sectoral allocation of credit by banks to the private sector, interest rate regime, the trade policy as well as quantitative restrictions on imports and foreign exchange modalities. The sectoral distribution of bank credit by the CBN was reflected in its annual guidelines. The control of interest ra ...
An optimum-currency
... of doubt that we all would make our contracts in gold if we were not forcibly prevented by law from doing so (Robbins, 1952). Friedman replied as follows6: You may well be right that the end-result in a completely liberal world would be a single currency, though I am less clear that it would be a co ...
... of doubt that we all would make our contracts in gold if we were not forcibly prevented by law from doing so (Robbins, 1952). Friedman replied as follows6: You may well be right that the end-result in a completely liberal world would be a single currency, though I am less clear that it would be a co ...
International Financial Integration* Philip R. Lane Institute for International Integration Studies
... position stayed positive for a number of years even when the net foreign asset position had turned negative. Rates of return matter since they are the channel through which international investment positions provide risk sharing. The associated international transfers also are important in determini ...
... position stayed positive for a number of years even when the net foreign asset position had turned negative. Rates of return matter since they are the channel through which international investment positions provide risk sharing. The associated international transfers also are important in determini ...
Speech at The Euro and the Dollar in a Globalized... U.C. Santa Cruz, Santa Cruz, CA
... holding inflation down. This might show up as a downward shift in the Phillips curve, similar to the impact of more rapid productivity growth in the second half of the 1990s. However, globalization is but one of several structural shifts that may have deepened worker insecurity, especially among les ...
... holding inflation down. This might show up as a downward shift in the Phillips curve, similar to the impact of more rapid productivity growth in the second half of the 1990s. However, globalization is but one of several structural shifts that may have deepened worker insecurity, especially among les ...
The interest rate rules
... This paper focuses on how a monetary policy regime shift - from exchange rate targeting to inflation targeting - aects the exchange rate determination in a small open economy. Norway adopted a flexible inflation target in March 2001. Before 2001 Norway followed various exchange rate targets, first targ ...
... This paper focuses on how a monetary policy regime shift - from exchange rate targeting to inflation targeting - aects the exchange rate determination in a small open economy. Norway adopted a flexible inflation target in March 2001. Before 2001 Norway followed various exchange rate targets, first targ ...
LF and FEM
... together to determine equilibrium, and then the effects of shifts in demand and supply are analyzed. • The two markets are linked together and r, NCO, EP/P*, and NX are jointly determined. • Different policies and situations are then analyzed and their affect on r, NCO, EP/P*, and NX identified. ...
... together to determine equilibrium, and then the effects of shifts in demand and supply are analyzed. • The two markets are linked together and r, NCO, EP/P*, and NX are jointly determined. • Different policies and situations are then analyzed and their affect on r, NCO, EP/P*, and NX identified. ...
The Euro: `As bad as gold`? - Lund University Publications
... It is remarkable to what extent the recent international economic downturn resembles the Great Depression of the 1930s. Banking panics, mass unemployment and attempts of austerity to allegedly decrease the level of public debt describe the situation in the United States or Germany at that time as we ...
... It is remarkable to what extent the recent international economic downturn resembles the Great Depression of the 1930s. Banking panics, mass unemployment and attempts of austerity to allegedly decrease the level of public debt describe the situation in the United States or Germany at that time as we ...
Capital Controls and Monetary Policy in Developing Countries
... In high-income and some middle-income countries the central bank prevents (or attempts to correct) this situation by means of open market operations which, up until several years ago, were aimed at controlling the amount of money in circulation. 2 Obviously this control requires that economic author ...
... In high-income and some middle-income countries the central bank prevents (or attempts to correct) this situation by means of open market operations which, up until several years ago, were aimed at controlling the amount of money in circulation. 2 Obviously this control requires that economic author ...
Obstacles to Implementing Lessons from the 1997-1998 East Asian Crises & Social Af
... account or fiscal deficits, real as well as imagined. When this line of reasoning clearly proved to be wrong, inadequate, or unpersuasive, the second line of defence was to turn the preceding celebration of the East Asian miracle on its head by suggesting that key elements of East Asian exceptionali ...
... account or fiscal deficits, real as well as imagined. When this line of reasoning clearly proved to be wrong, inadequate, or unpersuasive, the second line of defence was to turn the preceding celebration of the East Asian miracle on its head by suggesting that key elements of East Asian exceptionali ...
the eefect of exchange rate movements on kenya`s exports to
... Equilibrium exchange rate is determined by the interplay of the demand for foreign exchange and the supply of the foreign exchange. The exchange rate varies with varying supply and demand conditions, but it is always possible to find an equilibrium exchange rate which clears the market and creates e ...
... Equilibrium exchange rate is determined by the interplay of the demand for foreign exchange and the supply of the foreign exchange. The exchange rate varies with varying supply and demand conditions, but it is always possible to find an equilibrium exchange rate which clears the market and creates e ...
PDF
... importers, which would have negative effects on the Korean economy. On the other hand, Korea’s foreign debt is denominated mainly in dollars, which suggests that the fourth channel is not likely to be very important if the won-dollar rate does not change much. However, if won-dollar rate also increa ...
... importers, which would have negative effects on the Korean economy. On the other hand, Korea’s foreign debt is denominated mainly in dollars, which suggests that the fourth channel is not likely to be very important if the won-dollar rate does not change much. However, if won-dollar rate also increa ...
Mankiw 6e PowerPoints
... A fiscal expansion causes national saving to fall. The effects of this depend on openness & size: ...
... A fiscal expansion causes national saving to fall. The effects of this depend on openness & size: ...
No. 193. A Simultaneous Model of the Swedish Krona, the US Dollar
... inflow of funds induce the now wealthier households to reduce their labor supply used in the production of non-traded goods. This will reduce the supply of (and at the same time increase the demand for) non-traded goods whose relative price will then rise, implying an appreciation of the real exchan ...
... inflow of funds induce the now wealthier households to reduce their labor supply used in the production of non-traded goods. This will reduce the supply of (and at the same time increase the demand for) non-traded goods whose relative price will then rise, implying an appreciation of the real exchan ...
Statistical Mechanics of a Time-Homogeneous System of Money
... scope of above discussion, we see that credit creation – ceteris paribus – leads to increasing price levels. Note that in a real economy, those agents who are “closest” to the credit creation profit the most from it as they will still face the old prices. This effect has already been described by Ri ...
... scope of above discussion, we see that credit creation – ceteris paribus – leads to increasing price levels. Note that in a real economy, those agents who are “closest” to the credit creation profit the most from it as they will still face the old prices. This effect has already been described by Ri ...
Evidence from unit root tests with structural breaks
... one-third from its level at the end of 1984, to its lowest point at the end of July 1986. Blundell-Wignall, Fahrer and Heath (1993) found four reasons4 that explain these large downward adjustments. Nevertheless, in our point of view, the misalignment situation of the local currency was the most imp ...
... one-third from its level at the end of 1984, to its lowest point at the end of July 1986. Blundell-Wignall, Fahrer and Heath (1993) found four reasons4 that explain these large downward adjustments. Nevertheless, in our point of view, the misalignment situation of the local currency was the most imp ...
The transmission mechanism of monetary policy
... However, a rise in interest rates need not necessarily lead to a fall in share prices. Market participants might interpret the higher interest rate as indicating that the central bank foresees faster economic growth in the future than had previously been assumed. In such a case, a rise in interest r ...
... However, a rise in interest rates need not necessarily lead to a fall in share prices. Market participants might interpret the higher interest rate as indicating that the central bank foresees faster economic growth in the future than had previously been assumed. In such a case, a rise in interest r ...
Is Currency Depreciation Expansionary? The Case of South Korea
... higher domestic inflation and capital outflows outweigh the positive impacts such as more exports and that more government debt as a percent of GDP would not hurt real GDP. Several other variables are considered. An increase in the real crude oil price is expected to shift the short-run aggregate su ...
... higher domestic inflation and capital outflows outweigh the positive impacts such as more exports and that more government debt as a percent of GDP would not hurt real GDP. Several other variables are considered. An increase in the real crude oil price is expected to shift the short-run aggregate su ...
Euro-Dollar Real Exchange Rate Dynamics in an
... exchange rate in particular, the correlation between the real exchange rate and the ratio of consumption levels in both countries (taking logs and first differences) is 0:18. Hence, models that incorporate complete markets are bound to fail in explaining key features of the international dimension o ...
... exchange rate in particular, the correlation between the real exchange rate and the ratio of consumption levels in both countries (taking logs and first differences) is 0:18. Hence, models that incorporate complete markets are bound to fail in explaining key features of the international dimension o ...
RATE I Maurice Obsfeld AN
... change-rate movements which feed into domestic price levels and may set off successive, explosive rounds of wage-price inflation and further exchangerate depreciation.,3 The concern is reflected in the emphasis on exchangerate surveillance in the revised Articles of Agreement of the International Mo ...
... change-rate movements which feed into domestic price levels and may set off successive, explosive rounds of wage-price inflation and further exchangerate depreciation.,3 The concern is reflected in the emphasis on exchangerate surveillance in the revised Articles of Agreement of the International Mo ...
Transmission of Policy Shocks in a Monetary Asset-Pricing
... i.e. fiscal and monetary policy, on such assets. The main questions posed concern the transmission effects of policy shocks, the consequences of government policy for exchange rates and the transmission of inflation to other countries. For this purpose, we describe a two-country world with cash-in-a ...
... i.e. fiscal and monetary policy, on such assets. The main questions posed concern the transmission effects of policy shocks, the consequences of government policy for exchange rates and the transmission of inflation to other countries. For this purpose, we describe a two-country world with cash-in-a ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... the United States government. the international institutions, and the commercial banks) can be summarized as follows. The debt crisis emerged largely because of the policy mistakes of the debtor governments. Loans were wasted by inefficient state enterprises, or were squandered in capital flight. “S ...
... the United States government. the international institutions, and the commercial banks) can be summarized as follows. The debt crisis emerged largely because of the policy mistakes of the debtor governments. Loans were wasted by inefficient state enterprises, or were squandered in capital flight. “S ...
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.