Monetary Targeting and Monetary Policy
... open market operations would cause a change in the equilibrium federal funds rate. If the Fed changes the required reserve ratio, it will likely carry out offsetting open market operations to keep the target for the federal funds rate ...
... open market operations would cause a change in the equilibrium federal funds rate. If the Fed changes the required reserve ratio, it will likely carry out offsetting open market operations to keep the target for the federal funds rate ...
A MONETARY CONDITIONS INDEX FOR ALBANIA
... Patra and Pattanaik (1998) calculated for India a reduced form of money demand equation including the exchange rate impact. The weights of the exchange rate and of the interest rate were calculated from the coefficients derived from this equation. Hataiseree (1998) tried to evaluate the MCI for Thai ...
... Patra and Pattanaik (1998) calculated for India a reduced form of money demand equation including the exchange rate impact. The weights of the exchange rate and of the interest rate were calculated from the coefficients derived from this equation. Hataiseree (1998) tried to evaluate the MCI for Thai ...
Thomas Plümper Department of Government, University of Essex Eric Neumayer
... is so because they have short-term electoral interests or influential lobby groups demand policies which increase inflation. Yet, according to Barro and Gordon (1983), monetary policies should be as predictable and credible as possible for long-term economic development. Electoral incentives are th ...
... is so because they have short-term electoral interests or influential lobby groups demand policies which increase inflation. Yet, according to Barro and Gordon (1983), monetary policies should be as predictable and credible as possible for long-term economic development. Electoral incentives are th ...
Exchange Rate Regime Choice with Multiple Key Currencies
... choice differ with respect to the way they model policy-makers’ optimal choice when faced with the trade-offs associated with the choice of an exchange rate regime (Obstfeld et al. 2005). We start by presenting time inconsistency (or credibility) theories, then briefly review the optimal currency ar ...
... choice differ with respect to the way they model policy-makers’ optimal choice when faced with the trade-offs associated with the choice of an exchange rate regime (Obstfeld et al. 2005). We start by presenting time inconsistency (or credibility) theories, then briefly review the optimal currency ar ...
NBER WORKING PAPER SERIES ENDOGENOUS EXCHANGE RATE PASS-THROUGH Michael B. Devereux
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
ch20_5e
... Monetary Contraction and Fiscal Expansion: The United States in the Early 1980s Supply siders—a group of economists who argued that a cut in tax rates would boost economic activity. High output growth and dollar appreciation during the early 1980s resulted in an increase in the trade deficit. A high ...
... Monetary Contraction and Fiscal Expansion: The United States in the Early 1980s Supply siders—a group of economists who argued that a cut in tax rates would boost economic activity. High output growth and dollar appreciation during the early 1980s resulted in an increase in the trade deficit. A high ...
krugman_PPT_c22
... • Another common characteristic for many low and middle countries is that they have traditionally borrowed from foreign countries. Financial asset flows from foreign countries are able to finance investment projects, eventually leading to higher production and consumption. But some investment pr ...
... • Another common characteristic for many low and middle countries is that they have traditionally borrowed from foreign countries. Financial asset flows from foreign countries are able to finance investment projects, eventually leading to higher production and consumption. But some investment pr ...
Escaping from a Liquidity Trap and Deflation: The Foolproof Way
... The problem is that private sector beliefs are not easy to affect. A few decades back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liqui ...
... The problem is that private sector beliefs are not easy to affect. A few decades back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liqui ...
Exchange rate and monetary policy for Kazakhstan in light of
... and others who set wages and prices then perceive that inflation will be low in the future because the currency peg will prevent the central bank from expanding even if it wanted to. When workers and firm managers have low expectations of inflation, they set their wages and prices accordingly. The r ...
... and others who set wages and prices then perceive that inflation will be low in the future because the currency peg will prevent the central bank from expanding even if it wanted to. When workers and firm managers have low expectations of inflation, they set their wages and prices accordingly. The r ...
46 This chapter identifies the main international and domestic factors affecting... manufacturing production from 1980 to 1987. Part One briefly... CHAPTER TWO
... and shoes.11 To some extent, these industries replaced the small cottage industries which had traditionally produced these goods. The substitution of formerly imported luxury goods occurred only on a minor scale as the wealthy purchased these items directly from the United States.12 In the 1970s, Ni ...
... and shoes.11 To some extent, these industries replaced the small cottage industries which had traditionally produced these goods. The substitution of formerly imported luxury goods occurred only on a minor scale as the wealthy purchased these items directly from the United States.12 In the 1970s, Ni ...
The International Role of the Dollar and Trade Balance
... which is the case when exchange-rate pass through into prices is very low, expenditure-switching does not occur in the home market. A domestic currency depreciation does not lead to much of a decline in import quantities. At the same time a depreciation of the dollar raises quantities of U.S. export ...
... which is the case when exchange-rate pass through into prices is very low, expenditure-switching does not occur in the home market. A domestic currency depreciation does not lead to much of a decline in import quantities. At the same time a depreciation of the dollar raises quantities of U.S. export ...
M o n e t a r y ... C o n t e n t s 1 November 1999
... series of one-off factors, such as the recent sharp increase in international oil prices, none of which reflects demand pressures within the New Zealand economy. For this reason, as well as the fact that this blip in inflation will have passed by the time monetary policy decisions taken today have a ...
... series of one-off factors, such as the recent sharp increase in international oil prices, none of which reflects demand pressures within the New Zealand economy. For this reason, as well as the fact that this blip in inflation will have passed by the time monetary policy decisions taken today have a ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 21
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
A History of Yen Exchange Rates James R. Lothian* Fordham
... exchange rates. An initial attempt to peg the yen against the dollar (1919 to 1920) was followed by controlled depreciation and then two planned, but aborted, moves to return to gold. The first attempt failed in the wake of the Great Kanto Earthquake of 1923 and the large trade deficits that resulte ...
... exchange rates. An initial attempt to peg the yen against the dollar (1919 to 1920) was followed by controlled depreciation and then two planned, but aborted, moves to return to gold. The first attempt failed in the wake of the Great Kanto Earthquake of 1923 and the large trade deficits that resulte ...
Promoting active learning
... – different rates of inflation – different rates of growth – income elasticities of demand for imports higher than for exports – long-term structural changes ...
... – different rates of inflation – different rates of growth – income elasticities of demand for imports higher than for exports – long-term structural changes ...
research paper series Research Paper 2011/27 T
... document that in the period 1880-1997 there were 258 crises in industrialized and emerging market countries, the majority (147) were currency crises, with roughly equal numbers of banking and twin crises (59 and 52 respectively). Some crises, like the East-Asian crisis of 1997, impacted output growt ...
... document that in the period 1880-1997 there were 258 crises in industrialized and emerging market countries, the majority (147) were currency crises, with roughly equal numbers of banking and twin crises (59 and 52 respectively). Some crises, like the East-Asian crisis of 1997, impacted output growt ...
NBER WORKING PAPER SERIES EXCHANGE RATE PASS-THROUGH, EXCHANGE RATE VOLATILITY, AND
... devoted to understanding them. First, if international financial markets allow for full risksharing across countries, then exchange rates will be determined by a risk sharing condition, despite the fact that local currency prices are independent of exchange rates. Second, even if risk sharing is lim ...
... devoted to understanding them. First, if international financial markets allow for full risksharing across countries, then exchange rates will be determined by a risk sharing condition, despite the fact that local currency prices are independent of exchange rates. Second, even if risk sharing is lim ...
Monetary Policy Autonomy in European Non-Euro Countries
... The international political economy of monetary policy autonomy The Mundell–Fleming model dominates the political science literature on monetary policy in open economies (Bernhard et al., 2002; Franzese, 2002). The model claims that governments cannot achieve the three political goals of monetary po ...
... The international political economy of monetary policy autonomy The Mundell–Fleming model dominates the political science literature on monetary policy in open economies (Bernhard et al., 2002; Franzese, 2002). The model claims that governments cannot achieve the three political goals of monetary po ...
Chapter 16
... Businesses and individuals seeking to invest cash holdings in overseas’ securities to avoid a loss of value ...
... Businesses and individuals seeking to invest cash holdings in overseas’ securities to avoid a loss of value ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... exchange value vis-h-vis the U.S. dollar depreciated continuously through 1986. Second, the strong performance of the Japanese yen against the U.S. currency since 1985 accelerated the effective depreciation of the Korean won. As Korea’s current account registered sizable surpluses (largely with the ...
... exchange value vis-h-vis the U.S. dollar depreciated continuously through 1986. Second, the strong performance of the Japanese yen against the U.S. currency since 1985 accelerated the effective depreciation of the Korean won. As Korea’s current account registered sizable surpluses (largely with the ...
Policy Lags and Crowding-Out Effect
... The Federal Reserve can change the money supply on a daily basis through open market operations. Thus, once the Open Market Committee decides on a particular policy, the policy can be implemented immediately. However, monetary policy works through changes in interest rates and the response of intere ...
... The Federal Reserve can change the money supply on a daily basis through open market operations. Thus, once the Open Market Committee decides on a particular policy, the policy can be implemented immediately. However, monetary policy works through changes in interest rates and the response of intere ...
The Open Economy
... Evaluation of Economic Policy Trade deficits or surpluses are not themselves (generally) a problem. They may be a symptom of (important) underlying problems: Too little domestic saving (either private or public) relative to domestic investment, reducing the consumption of future generations Too muc ...
... Evaluation of Economic Policy Trade deficits or surpluses are not themselves (generally) a problem. They may be a symptom of (important) underlying problems: Too little domestic saving (either private or public) relative to domestic investment, reducing the consumption of future generations Too muc ...
Stephen
... embodied in v. While both criteria are of interest, and indeed identical with respect to all but the supply disturbances, we shall focus on the latter, which recently has been increasingly adopted in the ...
... embodied in v. While both criteria are of interest, and indeed identical with respect to all but the supply disturbances, we shall focus on the latter, which recently has been increasingly adopted in the ...
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.