MALAYSIA’S RESPONSE TO THE FINANCIAL CRISIS: Shankaran Nambiar*
... period was characterized by current account deficits, and also by strong FDI and short-term capital inflows. In this period of high growth, there were substantial trade and current account deficits. Yet, the massive inflows of portfolio investments and FDI more than compensated for the trade and cur ...
... period was characterized by current account deficits, and also by strong FDI and short-term capital inflows. In this period of high growth, there were substantial trade and current account deficits. Yet, the massive inflows of portfolio investments and FDI more than compensated for the trade and cur ...
chapter 17 macroeconomic policy in an open economy
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
NBER WORKING PAPER SERIES DOMESTIC AND FOREIGN DISTURBANCES IN AN OPTIMIZING
... where g denotes real government expenditure and all other variables are defined above. This equation asserts that total real expenditures, including interest payments, less the lump sum tax and 'inflation tax' revenues, must be financed either through printing money or by issuing bonds. The rate of ...
... where g denotes real government expenditure and all other variables are defined above. This equation asserts that total real expenditures, including interest payments, less the lump sum tax and 'inflation tax' revenues, must be financed either through printing money or by issuing bonds. The rate of ...
Capital Inflows and Balance of Payments Pressures
... and increasing the country’s vulnerability to a change in market sentiment. Such challenges are especially important during periods of growing global liquidity. Between early 2003 and mid-2007, for instance, not only was there abundant global liquidity,1 but also many emerging market economies (EMEs ...
... and increasing the country’s vulnerability to a change in market sentiment. Such challenges are especially important during periods of growing global liquidity. Between early 2003 and mid-2007, for instance, not only was there abundant global liquidity,1 but also many emerging market economies (EMEs ...
Financial Cycle, Financial Stability and Monetary Policy
... proper one should be placed on financial imbalances and not so much on asset price bubbles; • even though identifying financial imbalances ex ante is not easy, it is certain that sustained rapid credit growth combined with large drifts in asset prices increases the probability of a future episode of ...
... proper one should be placed on financial imbalances and not so much on asset price bubbles; • even though identifying financial imbalances ex ante is not easy, it is certain that sustained rapid credit growth combined with large drifts in asset prices increases the probability of a future episode of ...
Chapter 33: Open Economy Macroeconomics: The
... • When a country’s currency depreciates (falls in value), its import prices rise and its export prices (in foreign currencies) fall. • When the U.S. dollar is cheap, U.S. products are more competitive in world markets, and foreign-made goods look expensive to U.S. ...
... • When a country’s currency depreciates (falls in value), its import prices rise and its export prices (in foreign currencies) fall. • When the U.S. dollar is cheap, U.S. products are more competitive in world markets, and foreign-made goods look expensive to U.S. ...
NBER WORKING PAPER SERIES ON THE BENEFITS OF DOLLARIZATION WHEN
... the price of urban land in the Mexico City area. He documents how the rapid rise in real state prices was associated both with a boom in the mortgage market and with large inflows of foreign capital, and how commercial banks relaxed borrowing limits by lowering down-payments and by introducing high- ...
... the price of urban land in the Mexico City area. He documents how the rapid rise in real state prices was associated both with a boom in the mortgage market and with large inflows of foreign capital, and how commercial banks relaxed borrowing limits by lowering down-payments and by introducing high- ...
1. Introduction DRAFT The New Zealand Treasury Model (NZTM) K L Szeto
... 2001), the choice of income and wealth measures is based on previous work by Murphy (1998). Household income is calculated as the sum of real after-tax labour income and transfers, while non-human wealth includes both financial and real assets. Labour income is preferred to household disposable inco ...
... 2001), the choice of income and wealth measures is based on previous work by Murphy (1998). Household income is calculated as the sum of real after-tax labour income and transfers, while non-human wealth includes both financial and real assets. Labour income is preferred to household disposable inco ...
Gold standard, deflation and depression: The
... and Germany were the two epicentres, but no country integrated into the global economy was spared. In Switzerland, industrial production fell by 20 % between 1929 and 1932 and, other than in 1937 and 1939, remained below the 1929 level until the end of the decade (and, indeed, the end of World War I ...
... and Germany were the two epicentres, but no country integrated into the global economy was spared. In Switzerland, industrial production fell by 20 % between 1929 and 1932 and, other than in 1937 and 1939, remained below the 1929 level until the end of the decade (and, indeed, the end of World War I ...
Chapter 12
... that differ in coverage, accuracy, and timing. – The balance of payments accounts therefore seldom balance in practice. – The statistical discrepancy is the account added to or subtracted from the financial account to make it balance with the current account and capital account. ...
... that differ in coverage, accuracy, and timing. – The balance of payments accounts therefore seldom balance in practice. – The statistical discrepancy is the account added to or subtracted from the financial account to make it balance with the current account and capital account. ...
Mankiw 5/e Chapter 5: The Open Economy
... NX does not change if policy affects neither S nor I. Example: trade policy ...
... NX does not change if policy affects neither S nor I. Example: trade policy ...
Mankiw 5/e Chapter 5: The Open Economy
... NX does not change if policy affects neither S nor I. Example: trade policy ...
... NX does not change if policy affects neither S nor I. Example: trade policy ...
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... the signal approach developed by Kaminsky, Lizondo and Reinhart (KLR).1 Following this approach currency crises are identified by means of a foreign exchange market pressure index. This pressure index serves as a reference series for dating currency crises. In a second step KLR propose the monitorin ...
... the signal approach developed by Kaminsky, Lizondo and Reinhart (KLR).1 Following this approach currency crises are identified by means of a foreign exchange market pressure index. This pressure index serves as a reference series for dating currency crises. In a second step KLR propose the monitorin ...
The US dollar: Safe haven
... Not least the somewhat surprising dollar appreciation in May 2006 provides a motivation to investigate in greater depth the influence exerted by the US current account deficit on the safe-haven status of the US dollar. In the meantime, the Deutsche Bank (2006) has already taken up this issue in a br ...
... Not least the somewhat surprising dollar appreciation in May 2006 provides a motivation to investigate in greater depth the influence exerted by the US current account deficit on the safe-haven status of the US dollar. In the meantime, the Deutsche Bank (2006) has already taken up this issue in a br ...
An Empirical Study of a ‘Mystery of Currency Exposure’ with the Case of A-Share Listed Companies
... exposure was significant. Hang and Chun (2007) conducted an empirical analysis of the currency risk exposure of companies in the Shanghai A-share market after the exchange rate reform in 2005, and concluded that 12.6% of the listed companies benefited from the appreciation of the RMB and 4.3% were n ...
... exposure was significant. Hang and Chun (2007) conducted an empirical analysis of the currency risk exposure of companies in the Shanghai A-share market after the exchange rate reform in 2005, and concluded that 12.6% of the listed companies benefited from the appreciation of the RMB and 4.3% were n ...
NBER WORKING PAPER SERIES CAPITAL FLOWS, INVESTMENT, AND EXCHANGE RATES Alan C. Stockman
... This dividend is paid when asset-markets open at period t to current owners of ...
... This dividend is paid when asset-markets open at period t to current owners of ...
Practice Exam - Matthew H. Shapiro
... i. Buy $100 of stocks in a company, BigBubble for a year. There is a 90% chance that BigBubble collapses and she loses all her money, a 9% chance that it gives her a 100% interest, and a 1% chance that it gives her a 2000% interest. ii. Put it in a jar on her bookshelf. iii. Spend $100 on a 1 year T ...
... i. Buy $100 of stocks in a company, BigBubble for a year. There is a 90% chance that BigBubble collapses and she loses all her money, a 9% chance that it gives her a 100% interest, and a 1% chance that it gives her a 2000% interest. ii. Put it in a jar on her bookshelf. iii. Spend $100 on a 1 year T ...
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.