Structuring Local Currency Transactions: Case Studies
... When time has come to repay the principal, the borrower exchanges KGS into USD to repay the principal amount denominated in USD to the lender. Simultaneously, the client receives from TCX (in case of a USD appreciation since the trade date), or pays to TCX (in case of a KGS appreci ...
... When time has come to repay the principal, the borrower exchanges KGS into USD to repay the principal amount denominated in USD to the lender. Simultaneously, the client receives from TCX (in case of a USD appreciation since the trade date), or pays to TCX (in case of a KGS appreci ...
Antigua and Barbuda: Staff Report for the 2012 Article IV
... was completed in conjunction with the third review on March 30, 2011. The fourth, fifth, and sixth reviews were delayed after the intervention of an indigenous bank (ABIB) by the Eastern Caribbean Central Bank (ECCB) in July 2011, which led to uncertainty about the cost of resolution and its implica ...
... was completed in conjunction with the third review on March 30, 2011. The fourth, fifth, and sixth reviews were delayed after the intervention of an indigenous bank (ABIB) by the Eastern Caribbean Central Bank (ECCB) in July 2011, which led to uncertainty about the cost of resolution and its implica ...
"Two Decades Of Japanese Monetary Policy And The Deflation
... Although the Bank of Japan would not target asset prices, the burst bubble would make monetary policy more difficult—all with the benefit of hindsight. The yen appreciated from 260 yen/dollar in February 1985 to 150 yen/dollar in the summer of 1986, of which some part was a movement toward an equili ...
... Although the Bank of Japan would not target asset prices, the burst bubble would make monetary policy more difficult—all with the benefit of hindsight. The yen appreciated from 260 yen/dollar in February 1985 to 150 yen/dollar in the summer of 1986, of which some part was a movement toward an equili ...
International Experiences with Different Monetary Policy Regimes
... decline in net worth increases moral hazard incentives for firms to take on greater risk because they have less to lose if the loans go sour. Because lenders are now subject to much higher risks of losses, there is now a decline in lending and hence a decline in investment and economic activity. The ...
... decline in net worth increases moral hazard incentives for firms to take on greater risk because they have less to lose if the loans go sour. Because lenders are now subject to much higher risks of losses, there is now a decline in lending and hence a decline in investment and economic activity. The ...
The Transmission of Monetary Policy in Canada
... financial institutions, is important because it provides the ultimate form of liquidity in the financial system. Financial institutions hold such a liquid instrument – one that involves no risk of default and no delay in obtaining value – in order to settle among themselves the net flows from paymen ...
... financial institutions, is important because it provides the ultimate form of liquidity in the financial system. Financial institutions hold such a liquid instrument – one that involves no risk of default and no delay in obtaining value – in order to settle among themselves the net flows from paymen ...
The Impact of Treasury Supply on Financial Sector Lending and
... variables or reverse causality. US Treasury supply is affected by wars and the business cycle, and these factors may independently affect the financial sector’s use of short-term debt and the financial sector’s lending to the non-financial sector. For example, the negative relation between short-te ...
... variables or reverse causality. US Treasury supply is affected by wars and the business cycle, and these factors may independently affect the financial sector’s use of short-term debt and the financial sector’s lending to the non-financial sector. For example, the negative relation between short-te ...
the prerequisites for progress towards a single currency in the
... rather than annual outcomes. This will allow slippage in one year to be compensated for over two, but will not allow adjustment to be dragged out over a long period of time. Credibility In order to attract foreign investment, and to encourage domestic investment, governments need to build credibilit ...
... rather than annual outcomes. This will allow slippage in one year to be compensated for over two, but will not allow adjustment to be dragged out over a long period of time. Credibility In order to attract foreign investment, and to encourage domestic investment, governments need to build credibilit ...
Economic Outlook 2012
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
Leaving the euro: A practical guide
... Why the euro-zone needs radical economic adjustment, and the case for break-up The predicament of the euro-zone is both financial and economic. The financial element centres on debt. Several countries have public debt burdens which are unsustainable. In some cases, private debt is also overwhelming. ...
... Why the euro-zone needs radical economic adjustment, and the case for break-up The predicament of the euro-zone is both financial and economic. The financial element centres on debt. Several countries have public debt burdens which are unsustainable. In some cases, private debt is also overwhelming. ...
... economic growth was rapid, averaging almost 8% at an annual rate from 1991 to 1994. Despite the inherent advantages of exchange-rate targeting, it is not without its serious problems, as the international experience demonstrates. There are several serious criticisms of exchange-rate targeting. First ...
Three essays about monetary policy in China - ROS Home
... examined through different econometric approaches. One feature of the policy stance index derived in Chapter 1 is that it takes account of all the central bank’s monetary policy instruments at the same time. It is reasonable to infer that China’s monetary policy affects aggregate demand through more ...
... examined through different econometric approaches. One feature of the policy stance index derived in Chapter 1 is that it takes account of all the central bank’s monetary policy instruments at the same time. It is reasonable to infer that China’s monetary policy affects aggregate demand through more ...
A NEW LOOK AT THE FORWARD PREMIUM PUZZLE
... premium puzzle, another literature has developed, starting with Meese and Rogoff (1983), documenting an equally startling puzzle—exchange rates do not seem to be related to fundamentals.1 The random walk model has proven almost unbeatable, even against models with a variety of finance and macro vari ...
... premium puzzle, another literature has developed, starting with Meese and Rogoff (1983), documenting an equally startling puzzle—exchange rates do not seem to be related to fundamentals.1 The random walk model has proven almost unbeatable, even against models with a variety of finance and macro vari ...
The Brilliant Economic Theory of Everything: Q. E. D.
... on the economy through its effect on import prices and relative prices. Under this circumstance, exchange rate channel plays a role as either shock absorber or amplifier in implementing the monetary policy, but how much it can absorb (or amplify) depends on the exchange rate pass-through. In particu ...
... on the economy through its effect on import prices and relative prices. Under this circumstance, exchange rate channel plays a role as either shock absorber or amplifier in implementing the monetary policy, but how much it can absorb (or amplify) depends on the exchange rate pass-through. In particu ...
NBER WORKING PAPER SERIES SOURCES OF MACROECONOMIC IMBALANCES A SIMULATION APPROACH
... uncertainty, especially in explaining the extraordinary drop in the dollar in the past year. The model also suggests several interesting points regarding the international ...
... uncertainty, especially in explaining the extraordinary drop in the dollar in the past year. The model also suggests several interesting points regarding the international ...
the czech national bank`s forecasting and policy analysis system
... credibly to its long-term goal of price stability, and at the same time preserves enough discretion for an active anticyclical monetary policy that takes into account not only inflation, but also other factors such as variability of output. The shift towards such a regime from a fixed exchange rate ...
... credibly to its long-term goal of price stability, and at the same time preserves enough discretion for an active anticyclical monetary policy that takes into account not only inflation, but also other factors such as variability of output. The shift towards such a regime from a fixed exchange rate ...
Currency Mismatch, Systemic Risk in Emerging Europe (December 2009)
... Borrowers find currency mismatch optimal because (i) the expected interest payments on Euro debt are lower than those on domestic currency debt, even after correcting for expected depreciation; and (ii) they can borrow more. Risk premia on Euro debt do not fully reflect the extent of insolvency risk ...
... Borrowers find currency mismatch optimal because (i) the expected interest payments on Euro debt are lower than those on domestic currency debt, even after correcting for expected depreciation; and (ii) they can borrow more. Risk premia on Euro debt do not fully reflect the extent of insolvency risk ...
Post keynesian monetary theory and its implications
... portion of deposit liabilities placed with the central bank through the credit creation process rather than serving as a quantitative restriction on money supply aggregates. Instead, it is interest rates which, as a price in determining liquidity preference and the extent of investment to be underta ...
... portion of deposit liabilities placed with the central bank through the credit creation process rather than serving as a quantitative restriction on money supply aggregates. Instead, it is interest rates which, as a price in determining liquidity preference and the extent of investment to be underta ...
Sovereign Spreads in the Eurozone: Is Market Discipline Working?
... bond spreads of EMU countries tend to be lower, their relationship with macroeconomic fundamentals is weaker, and their cross-country variance tends to be lower in comparison to spreads' variance of countries that are not part of the EMU area. Economic theory suggests that, when creditors have the e ...
... bond spreads of EMU countries tend to be lower, their relationship with macroeconomic fundamentals is weaker, and their cross-country variance tends to be lower in comparison to spreads' variance of countries that are not part of the EMU area. Economic theory suggests that, when creditors have the e ...
The U.S. current account deficit: Gradual correction or abrupt adjustment? Sebastian Edwards ∗
... increase in the RER index represents a real exchange rate appreciation).4 This figure shows that deficits have become increasingly large since 1992. Fig. 1 also shows that during the period under consideration the RER index experienced significant gyrations. Finally, Fig. 1 shows a pattern of negati ...
... increase in the RER index represents a real exchange rate appreciation).4 This figure shows that deficits have become increasingly large since 1992. Fig. 1 also shows that during the period under consideration the RER index experienced significant gyrations. Finally, Fig. 1 shows a pattern of negati ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... side of the economy.2 Most empirical studies using panel data sets and regression techniques find that IMF-supported programs improve the balance of payments and current account (e.g., Khan 1990; Conway 1994; Bordo and Schwartz 2000). This is not surprising, because a key purpose of the IMF is “to g ...
... side of the economy.2 Most empirical studies using panel data sets and regression techniques find that IMF-supported programs improve the balance of payments and current account (e.g., Khan 1990; Conway 1994; Bordo and Schwartz 2000). This is not surprising, because a key purpose of the IMF is “to g ...
Università degli Studi di Milano Dipartimento di Economia Politica e
... correlated to nominal output growth help to stabilize the debt ratio, thus reducing the risk that it will grow above target. On the other hand, the case for short-term debt weakens as the conditional variance of the short-term interest rate increases, thus producing unnecessary fluctuations in inte ...
... correlated to nominal output growth help to stabilize the debt ratio, thus reducing the risk that it will grow above target. On the other hand, the case for short-term debt weakens as the conditional variance of the short-term interest rate increases, thus producing unnecessary fluctuations in inte ...
Economic Outlook 2013 - Rensselaer Hartford Campus
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
Are twin currency and debt crises special?
... example, Frankel and Rose (1996) as one of the first approaches to study macroeconomic variables as predictors of currency crises yield only a low explanatory and predictive potential: While the numbers of false alarms remains below 1%, they only predict 5 out of 69 currency crises. One reason for t ...
... example, Frankel and Rose (1996) as one of the first approaches to study macroeconomic variables as predictors of currency crises yield only a low explanatory and predictive potential: While the numbers of false alarms remains below 1%, they only predict 5 out of 69 currency crises. One reason for t ...
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.