EMP – A Note on Empiricism and Foreign Exchange Markets
... Purchasing power parity (PPP), in its absolute form, maintains that, in competitive markets free of transportation costs and official barriers to trade, such as tariffs, identical goods sold in different countries must sell for the same price where their prices are expressed in terms of the same cur ...
... Purchasing power parity (PPP), in its absolute form, maintains that, in competitive markets free of transportation costs and official barriers to trade, such as tariffs, identical goods sold in different countries must sell for the same price where their prices are expressed in terms of the same cur ...
Faculty Research Working Papers Series
... (versus equity and FDI), the rand floats (though not without substantial intervention), and much of the debt is rand-denominated. These factors offer good grounds for hope that a correction will be fairly automatic and not involve the painful “currency crash plus balance sheet contraction” so famili ...
... (versus equity and FDI), the rand floats (though not without substantial intervention), and much of the debt is rand-denominated. These factors offer good grounds for hope that a correction will be fairly automatic and not involve the painful “currency crash plus balance sheet contraction” so famili ...
Exchange Rate Developments and Fundamentals in Four
... Because of the substantial differences in the economic and historical backgrounds of selected countries, we will follow two different approaches when assessing the appropriateness of exchange rate policies. For the countries with more or less freely floating currencies (Romania and Turkey), we will ...
... Because of the substantial differences in the economic and historical backgrounds of selected countries, we will follow two different approaches when assessing the appropriateness of exchange rate policies. For the countries with more or less freely floating currencies (Romania and Turkey), we will ...
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 ...
Exchange Rate Volatility and Trade among the Asia Pacific Countries
... This paper examines the impact of exchange rate volatility on trade volumes in the Asia-Pacific region for the period of 1980-2002 in the context of gravity models, which have been “widely applied to empirical work in international economics” (Dell’Ariccia (1999)) and have “a remarkably consistent ...
... This paper examines the impact of exchange rate volatility on trade volumes in the Asia-Pacific region for the period of 1980-2002 in the context of gravity models, which have been “widely applied to empirical work in international economics” (Dell’Ariccia (1999)) and have “a remarkably consistent ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... private agents do not treat the security holdings of the authorities as being implicitly a part of their own portfolios. Second, contemporaneous financial policy feedback rules can dampen the variance of employment caused by disturbances in the markets for goods and assets even though agents have ra ...
... private agents do not treat the security holdings of the authorities as being implicitly a part of their own portfolios. Second, contemporaneous financial policy feedback rules can dampen the variance of employment caused by disturbances in the markets for goods and assets even though agents have ra ...
Nominal GDP Targeting for Middle-Income Countries
... transition economies are likely to have a more acute need to earn credibility than those in advanced countries. Many have a shorter track record, e.g., countries that emerged from the break-up of the Soviet Union in 1991. Many have histories that include episodes of monetary instability or even hype ...
... transition economies are likely to have a more acute need to earn credibility than those in advanced countries. Many have a shorter track record, e.g., countries that emerged from the break-up of the Soviet Union in 1991. Many have histories that include episodes of monetary instability or even hype ...
Global Macro Shifts - Franklin Templeton Investments
... Argentina, Brazil and Venezuela, the damage done to the respective economies and institutions was disguised to some extent by the rise in commodity prices, but all suffered from the sharp drop in commodity prices that marked the end of the commodity supercycle (see Exhibits 1 and 2). The drop in com ...
... Argentina, Brazil and Venezuela, the damage done to the respective economies and institutions was disguised to some extent by the rise in commodity prices, but all suffered from the sharp drop in commodity prices that marked the end of the commodity supercycle (see Exhibits 1 and 2). The drop in com ...
View/Open
... The role of financial intermediation expanded rapidly throughout the 1970s, especially for banking institutions whose transactions predominate in the flow-of-funds accounts. As the detailed financial transaction accounts (Appendix A) show, the activity of nonbank financial intermediaries declined th ...
... The role of financial intermediation expanded rapidly throughout the 1970s, especially for banking institutions whose transactions predominate in the flow-of-funds accounts. As the detailed financial transaction accounts (Appendix A) show, the activity of nonbank financial intermediaries declined th ...
Figure 1 - Cengage Learning
... – Increase in the official value of a currency – A unit of a nation’s currency buys more units of foreign currency © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product ...
... – Increase in the official value of a currency – A unit of a nation’s currency buys more units of foreign currency © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product ...
3312-11547-1-SP
... namely the ratio of currency prices. It is the value of a foreign nation’s currency in terms of the home nation’s currency. It also specifies how much one currency is worth in terms of the other. A correct or appropriate exchange rate has been one of the most important factors for economic growth in ...
... namely the ratio of currency prices. It is the value of a foreign nation’s currency in terms of the home nation’s currency. It also specifies how much one currency is worth in terms of the other. A correct or appropriate exchange rate has been one of the most important factors for economic growth in ...
Essays on currency intervention, with particular reference to
... has intentionally depressed the value of its currency, the renminbi (RMB), to gain unfair advantages in the global market.” (Cheung, 2011) Most major currencies are free floating vis-à-vis other currencies, except renminbi. 3 There might possibly be some gains or losses from currency intervention in ...
... has intentionally depressed the value of its currency, the renminbi (RMB), to gain unfair advantages in the global market.” (Cheung, 2011) Most major currencies are free floating vis-à-vis other currencies, except renminbi. 3 There might possibly be some gains or losses from currency intervention in ...
Currency collapses and output dynamics
... Public authorities tend to resist sharp depreciations in their economy’s exchange rate, presumably because they fear that they would be very costly in terms of foregone output.2 This article presents new evidence on the relationship between currency collapses, defined as large nominal depreciations ...
... Public authorities tend to resist sharp depreciations in their economy’s exchange rate, presumably because they fear that they would be very costly in terms of foregone output.2 This article presents new evidence on the relationship between currency collapses, defined as large nominal depreciations ...
September 28 , 2007 Nelson H. Barbosa-Filho
... highest level in real terms since the debt crisis of the early 1980s. The Brazilian inflation rate followed soon after and reached double-digit levels at the end of 2002. In fact, the exchange-rate depreciation and inflation acceleration were so sharp and fast that they even made the Brazilian month ...
... highest level in real terms since the debt crisis of the early 1980s. The Brazilian inflation rate followed soon after and reached double-digit levels at the end of 2002. In fact, the exchange-rate depreciation and inflation acceleration were so sharp and fast that they even made the Brazilian month ...
Official Dollarization and the Banking System in
... board. In this case, the liabilities of the banking system as a whole are, implicitly, obligations in international currency. Consequently, a bank run is possible if the banking system’s implicit liabilities are greater than its liquid assets (in foreign currency). Under full dollarization, the econ ...
... board. In this case, the liabilities of the banking system as a whole are, implicitly, obligations in international currency. Consequently, a bank run is possible if the banking system’s implicit liabilities are greater than its liquid assets (in foreign currency). Under full dollarization, the econ ...
NBER WORKING PAPER SERIES DEVALUATION CRISES AND THE MACROECONOMIC CONSEQUENCES
... of the following endogenous variables: ...
... of the following endogenous variables: ...
Convergence and shocks in the road to EU: Empirical investigations
... The basic ideas of the Monetarist approach ...
... The basic ideas of the Monetarist approach ...
An Empirical Analysis of the Inflation Targeting Framework in a Time of
... 2000). In addition, IT in itself may not be sufficient to ensure fiscal discipline, since even under the IT framework governments can still pursue irresponsible fiscal policy and finance their deficits by monetization (Mishkin 2000). These actions will intensify inflationary pressures, thus making i ...
... 2000). In addition, IT in itself may not be sufficient to ensure fiscal discipline, since even under the IT framework governments can still pursue irresponsible fiscal policy and finance their deficits by monetization (Mishkin 2000). These actions will intensify inflationary pressures, thus making i ...
Questions For The Central Bank Of The Republic
... between tradable and non-tradable sectors to explain deviations in purchasing power parity. According to the B-S hypothesis, because productivity growth in tradable sectors is higher than in non-tradable sectors, real wages increase in tradable sectors. On the other hand, because the prices of trada ...
... between tradable and non-tradable sectors to explain deviations in purchasing power parity. According to the B-S hypothesis, because productivity growth in tradable sectors is higher than in non-tradable sectors, real wages increase in tradable sectors. On the other hand, because the prices of trada ...
Predictability of Exchange Rates in Sri Lanka: A Test of
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
Crisis, contagion and international policy spillovers under
... shocks and, even more importantly, about the spillovers from monetary, regulatory or macroprudential policy. Given the current implementation of macroprudential policy in several countries and the missing empirical evidence on its effects, modeling it seems of particular importance. While structural ...
... shocks and, even more importantly, about the spillovers from monetary, regulatory or macroprudential policy. Given the current implementation of macroprudential policy in several countries and the missing empirical evidence on its effects, modeling it seems of particular importance. While structural ...
Monetary Policy Strategies in the Asia and Pacific Region: What
... While the proximate cause of the crisis can be traced to the subprime mortgage market in the US, the underlying sources go deeper than that and involve issues of incentives in the structured finance market, over-reliance on the ratings of financial products by rating agencies, the regulatory treatme ...
... While the proximate cause of the crisis can be traced to the subprime mortgage market in the US, the underlying sources go deeper than that and involve issues of incentives in the structured finance market, over-reliance on the ratings of financial products by rating agencies, the regulatory treatme ...
Diapositive 1
... • The current setup of the Eurozone is flawed. • There is no strong federal government that can engage in substantial equalisation payments, thus averting the present bias towards downward fiscal adjustments, not to speak of the 3% deficit rule. • The ECB and the national central banks normally do n ...
... • The current setup of the Eurozone is flawed. • There is no strong federal government that can engage in substantial equalisation payments, thus averting the present bias towards downward fiscal adjustments, not to speak of the 3% deficit rule. • The ECB and the national central banks normally do n ...
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.