EXCHANGE RATE RISK AND EXPORT FLOWS
... the trade volumes and exchange rate regime. Under both systems, the volume of the trade can increase or decrease depending on consumer preferences and decisions on monetary policy in each country. Based on developed theoretical models, empirical papers study the exchange rate effects on trade flows ...
... the trade volumes and exchange rate regime. Under both systems, the volume of the trade can increase or decrease depending on consumer preferences and decisions on monetary policy in each country. Based on developed theoretical models, empirical papers study the exchange rate effects on trade flows ...
Inside-Outside Money Competition∗
... We start the analysis in Section 2 by describing the competitive equilibria for given monetary policies. In Section 3, we show that a government that maximizes transfers (or revenues) and is able to commit to its policies will be induced by competition from currency substitutes to set a low stationa ...
... We start the analysis in Section 2 by describing the competitive equilibria for given monetary policies. In Section 3, we show that a government that maximizes transfers (or revenues) and is able to commit to its policies will be induced by competition from currency substitutes to set a low stationa ...
Zimbabwe’s Black Market for Foreign Exchange Albert Makochekanwa
... market” and “black market” in foreign exchange, this study will use the two terms interchangeably or synonymously. Robert Grosse (1991) pointed out that black markets in foreign currency have emerged in most countries since time immemorial mainly as a result of government controls on access to forei ...
... market” and “black market” in foreign exchange, this study will use the two terms interchangeably or synonymously. Robert Grosse (1991) pointed out that black markets in foreign currency have emerged in most countries since time immemorial mainly as a result of government controls on access to forei ...
Ronald I. McKinnon AN INTERNATIONAL GOLD STANDARD WITHOUT GOLD
... Whence Walter Bagehot’s (1873) famous dictum that when a gold run developed, the national central bank should raise its discount rate to attract foreign funds, but then lend freely to domestic financial institutions to mitigate their reserve losses. In summary, convertibility crises did not arise ma ...
... Whence Walter Bagehot’s (1873) famous dictum that when a gold run developed, the national central bank should raise its discount rate to attract foreign funds, but then lend freely to domestic financial institutions to mitigate their reserve losses. In summary, convertibility crises did not arise ma ...
A socioeconomics approach
... supply was supposed to be “exogenously controlled” by the central bank. Since money is ...
... supply was supposed to be “exogenously controlled” by the central bank. Since money is ...
Monthly Economic Review - Maldives Monetary Authority
... October 2016 at the time of compilation of this report. Monthly income and expenditure data are subject to change and may vary from month-to-month as public accounting system data are updated regularly. Data for October 2016 was revised on 15 ...
... October 2016 at the time of compilation of this report. Monthly income and expenditure data are subject to change and may vary from month-to-month as public accounting system data are updated regularly. Data for October 2016 was revised on 15 ...
A Global Perspective on External Positions Philip Lane
... cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross-border asset tra ...
... cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross-border asset tra ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... growing level of cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross ...
... growing level of cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross ...
PDF
... the real exchange rate has depreciated, at least in part because of rapid accumulation of foreign liabilities by the United States. The current account deficit continues, and can be expected to continue unless the relation between production and expenditure in the US changes. How has this affected a ...
... the real exchange rate has depreciated, at least in part because of rapid accumulation of foreign liabilities by the United States. The current account deficit continues, and can be expected to continue unless the relation between production and expenditure in the US changes. How has this affected a ...
NBER WORKING PAPER SERIES HOW MANY MONIES? A GENETIC APPROACH TO FINDING
... share of labor. Nominal wages are downward sticky . A simple formulation is to assume that the (log) of the nominal wage is set in order to obtain labor market equilibrium based on information available in period t — 1: 5Alternatively, one can assume that nominal wages are pre-determined (and thus b ...
... share of labor. Nominal wages are downward sticky . A simple formulation is to assume that the (log) of the nominal wage is set in order to obtain labor market equilibrium based on information available in period t — 1: 5Alternatively, one can assume that nominal wages are pre-determined (and thus b ...
understanding exchange rate volatility without the contrivance of
... the exchange rate regime. For the same reason, measurement error of money and output is an unimportant problem. We provide two kinds of evidence. First, we compare the volatility of the leftand right-hand sides of (3) for a number of different countries. We ask `Do countries with volatile exchange r ...
... the exchange rate regime. For the same reason, measurement error of money and output is an unimportant problem. We provide two kinds of evidence. First, we compare the volatility of the leftand right-hand sides of (3) for a number of different countries. We ask `Do countries with volatile exchange r ...
Política monetaria en un entorno de dos monedas
... aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized economy ”... a signi…cant constraint on monetary policy discretion is imposed. Not only is the m ...
... aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized economy ”... a signi…cant constraint on monetary policy discretion is imposed. Not only is the m ...
Macro Review - Harvard Kennedy School
... You lend to the Indian company in the form of cash dollars, which they don’t have to pay back for 30 days => acquisition of short term assets . You are the Central Bank, and you buy securities of the Indian company (an improbable example for the Fed – but some central banks now diversify interna ...
... You lend to the Indian company in the form of cash dollars, which they don’t have to pay back for 30 days => acquisition of short term assets . You are the Central Bank, and you buy securities of the Indian company (an improbable example for the Fed – but some central banks now diversify interna ...
Fixed Exchange Rates and the Trilemma
... • It is macroeconomic because it focuses on key economy-wide variables such as exchange rates, prices, interest rates, income, wealth, and the current account. • It is international because a deeper understanding of the global economy emerges only when the interconnections among nations are fully co ...
... • It is macroeconomic because it focuses on key economy-wide variables such as exchange rates, prices, interest rates, income, wealth, and the current account. • It is international because a deeper understanding of the global economy emerges only when the interconnections among nations are fully co ...
NBER WORKING PAPER SERIES A GLOBAL PERSPECTIVE ON EXTERNAL POSITIONS
... cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross-border asset tra ...
... cross-border integration in financial markets.3 An important consequence of financial globalization is that countries are exposed to asset price movements in other countries even if net balances are zero, with the degree of exposure an increasing function of the scale of gross cross-border asset tra ...
Pages: 64
... companies (net internal creditors), 8) commercial banks and related client companies (net debtors), 9) politicians and bureaucrats (debtors), etc. Employing the basic theoretical hypotheses, the chronology and the facts of the 1996/1997 financial crises and hyperinflation and the introduction of the ...
... companies (net internal creditors), 8) commercial banks and related client companies (net debtors), 9) politicians and bureaucrats (debtors), etc. Employing the basic theoretical hypotheses, the chronology and the facts of the 1996/1997 financial crises and hyperinflation and the introduction of the ...
How Far Will the Yen Fall? -What the industry average equilibrium
... Lately, the question of how far the yen can weaken comes up for discussion from time to time. To gain insight, we need to make comparisons to what is known as the equilibrium exchange rate, which is determined by factoring in the economic fundamentals of the concerned countries. The real-world excha ...
... Lately, the question of how far the yen can weaken comes up for discussion from time to time. To gain insight, we need to make comparisons to what is known as the equilibrium exchange rate, which is determined by factoring in the economic fundamentals of the concerned countries. The real-world excha ...
Currency Boards vs. Dollarization: Lessons from the Cook Islands
... from these banks had represented a major source of funding for the government’s growing budget deficits (Asian Development Bank 1996: 1). Westpac played a particularly key role in also accepting Cook Islands notes from non-government sources and converting them at par with the New Zealand dollar, th ...
... from these banks had represented a major source of funding for the government’s growing budget deficits (Asian Development Bank 1996: 1). Westpac played a particularly key role in also accepting Cook Islands notes from non-government sources and converting them at par with the New Zealand dollar, th ...
NBER WORKING PAPER SERIES INTERNATIONAL MACROECONOMIC POLICY COORDINATION Stanley Fischer
... to matter. The world economy recovered in 1984 and 1985 under the impetus of expansionary United States fiscal policy despite restrictive European ...
... to matter. The world economy recovered in 1984 and 1985 under the impetus of expansionary United States fiscal policy despite restrictive European ...
Bank of England Inflation Report May 2013
... (a) Chart 5.6 and Table 5.B show the probability of four-quarter GDP growth being at or below different growth rates. They are based on cross-sections of the GDP growth fan charts in the May 2013 and February 2013 Inflation Reports, which are conditioned on market interest rates and the assumption t ...
... (a) Chart 5.6 and Table 5.B show the probability of four-quarter GDP growth being at or below different growth rates. They are based on cross-sections of the GDP growth fan charts in the May 2013 and February 2013 Inflation Reports, which are conditioned on market interest rates and the assumption t ...
Public Choice Theory and the Transition Market Economy in Eastern
... to the domestic currencies.53 Implicit in many of these objectives was the necessity to "harden" the "soft" budget constraint and to dismantle staterun monopolies.3 4 Currency stabilization and price reforms would allow participation in international trade and fulfill the long-suppressed need for va ...
... to the domestic currencies.53 Implicit in many of these objectives was the necessity to "harden" the "soft" budget constraint and to dismantle staterun monopolies.3 4 Currency stabilization and price reforms would allow participation in international trade and fulfill the long-suppressed need for va ...
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.