NBER WORKING PAPER SERIES Aart Kraay Jaume Ventura
... reality. The question of why this is so is one of the most intriguing puzzles in international finance. See Lewis [1999] for a survey of the literature on this topic. ...
... reality. The question of why this is so is one of the most intriguing puzzles in international finance. See Lewis [1999] for a survey of the literature on this topic. ...
This PDF is a selection from a published volume
... present value of expected utility. For simplicity, it is assumed that the utility of real balances is ignored for the purposes of determining the equilibrium value of y From the point of view of the individual agent, the optimal /is the one that equates the marginal benefits of price flexibility wit ...
... present value of expected utility. For simplicity, it is assumed that the utility of real balances is ignored for the purposes of determining the equilibrium value of y From the point of view of the individual agent, the optimal /is the one that equates the marginal benefits of price flexibility wit ...
Modelling, simulation and control of macro economic systems.
... negative interest rate as proposed by Silvio Gesell has the inversed relationship between economic growth GDP and the DS/GDP ratio compared to the systems with “normal” interest rates. This means that for Gesell interest rates, increased GDP growth leads to decreased DS/GDP ratio, thus the two Gesel ...
... negative interest rate as proposed by Silvio Gesell has the inversed relationship between economic growth GDP and the DS/GDP ratio compared to the systems with “normal” interest rates. This means that for Gesell interest rates, increased GDP growth leads to decreased DS/GDP ratio, thus the two Gesel ...
Scotland analysis: Currency and monetary policy
... independent Scottish state would not have to cede sovereignty over some or all of the levers to guide its economic performance. An independent Scottish state would be able to choose its exchange rate regime and independent fiscal and monetary policies could be used to stabilise the economy. If an ind ...
... independent Scottish state would not have to cede sovereignty over some or all of the levers to guide its economic performance. An independent Scottish state would be able to choose its exchange rate regime and independent fiscal and monetary policies could be used to stabilise the economy. If an ind ...
early warning indicators for developed countries - ECB
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... icantly. Similarly, policies directed at investment are unlikely to lead to permanent increases in investment unless domestic savings are increased as well. Alternatively, as many international economists argue, the cross-sectional correlation between national savings and investment rates may be a s ...
... icantly. Similarly, policies directed at investment are unlikely to lead to permanent increases in investment unless domestic savings are increased as well. Alternatively, as many international economists argue, the cross-sectional correlation between national savings and investment rates may be a s ...
The Effect of Exchange Rate Movements on Heterogeneous Plants
... a reduction in the scale of production, causing a reduction in plant productivity if the production technology exhibits increasing returns to scale. Moreover, appreciations make it more difficult for domestic plants to compete in export markets, which can reduce the scale of production for exporters ...
... a reduction in the scale of production, causing a reduction in plant productivity if the production technology exhibits increasing returns to scale. Moreover, appreciations make it more difficult for domestic plants to compete in export markets, which can reduce the scale of production for exporters ...
trade and development report, 2011
... F. Limitations and effectiveness of managed floating......................................................................... 175 1. Effectiveness of intervention in foreign exchange markets .......................................................... 175 2. The scope and cost of sterilization ...
... F. Limitations and effectiveness of managed floating......................................................................... 175 1. Effectiveness of intervention in foreign exchange markets .......................................................... 175 2. The scope and cost of sterilization ...
Slow disinflation process willl delay policy rate cuts
... Unwinding of imbalances will be delayed for a while Recent economic indicators are difficult to interpret. The national accounts show zero output growth in Q1/2007, in spite of hefty growth of exports. There was a contraction in private consumption and, in particular, investment. However, to a large ...
... Unwinding of imbalances will be delayed for a while Recent economic indicators are difficult to interpret. The national accounts show zero output growth in Q1/2007, in spite of hefty growth of exports. There was a contraction in private consumption and, in particular, investment. However, to a large ...
the use of reserve requirements in an optimal monetary policy
... Some inflation targeting countries like Brazil, Colombia and Peru, have used reserve requirements on domestic deposits as a macro-prudential policy tool aimed at increasing lending interest rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of t ...
... Some inflation targeting countries like Brazil, Colombia and Peru, have used reserve requirements on domestic deposits as a macro-prudential policy tool aimed at increasing lending interest rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of t ...
Quarterly Projection Model for India: Key Elements and Properties
... against yet another disinflationary shock than they would in a situation where the starting levels for inflation and the interest rate are well above zero, and output close to its potential level. In other times, destabilized inflation expectations have posed a threat in the opposite direction, and ...
... against yet another disinflationary shock than they would in a situation where the starting levels for inflation and the interest rate are well above zero, and output close to its potential level. In other times, destabilized inflation expectations have posed a threat in the opposite direction, and ...
mmi06 kletzer 1923465 en
... disincentive for the government to inflate. The ease of reducing repayments on domestic currency debt ex post also implies that governments that cannot issue such debt for reputational reasons may hold stocks of foreign nominal public debt in reserve for smoothing aggregate output and consumption. R ...
... disincentive for the government to inflate. The ease of reducing repayments on domestic currency debt ex post also implies that governments that cannot issue such debt for reputational reasons may hold stocks of foreign nominal public debt in reserve for smoothing aggregate output and consumption. R ...
China Turn Into the Largest Market in the World
... • If each country ij adjust its RERij to the mean of RERs of its income group, then their trade is balanced as indicates. • The country's under- or overvaluation currency can be measured by the deviation from the mean of RERs of its income group. ...
... • If each country ij adjust its RERij to the mean of RERs of its income group, then their trade is balanced as indicates. • The country's under- or overvaluation currency can be measured by the deviation from the mean of RERs of its income group. ...
Research and Monetary Policy Department Working Paper No:06/05
... real exchange rate. Since an inflow of capital increases the supply of foreign exchange, the domestic currency tends to appreciate leading to a boost in imports. Along with the enhanced consumption, this development further widens the trade deficit and current account deficit comes up to uncomfortab ...
... real exchange rate. Since an inflow of capital increases the supply of foreign exchange, the domestic currency tends to appreciate leading to a boost in imports. Along with the enhanced consumption, this development further widens the trade deficit and current account deficit comes up to uncomfortab ...
Global liquidity
... in order to control the appreciation effect of capital inflows on the exchange rate. The bulk of the assets consisted of low-risk instruments (such as US Treasury securities or dollar deposits). Given the tight linkages between advanced economies’ bond markets, the low levels of interest rates in th ...
... in order to control the appreciation effect of capital inflows on the exchange rate. The bulk of the assets consisted of low-risk instruments (such as US Treasury securities or dollar deposits). Given the tight linkages between advanced economies’ bond markets, the low levels of interest rates in th ...
spd04 Missale2 225568 en
... choice of debt instruments is needed to control interest payments and budget deficits. Interestcost minimization is important especially in countries where interest payments absorb a large share of the budget. In the same countries avoiding the risk that interest-rate shocks lead to large payments on ...
... choice of debt instruments is needed to control interest payments and budget deficits. Interestcost minimization is important especially in countries where interest payments absorb a large share of the budget. In the same countries avoiding the risk that interest-rate shocks lead to large payments on ...
Dealing with large and volatile capital flows and the role of the IMF
... fall in oil prices (and other commodity prices) and a marked appreciation of the US dollar. Cross-border capital flows can have many benefits for both AEs and EMEs; however, they may also carry risks, which require appropriate policy responses. There is agreement that inflows of capital are largely ...
... fall in oil prices (and other commodity prices) and a marked appreciation of the US dollar. Cross-border capital flows can have many benefits for both AEs and EMEs; however, they may also carry risks, which require appropriate policy responses. There is agreement that inflows of capital are largely ...
Pass-through of exchange rates and import prices to domestic
... expressed concern that as emerging market economies have recovered from the 199798 crisis, the resulting higher import prices have led to greater in‡ationary pressures in the industrialized economies. In fact, the European Central Bank has cited the possible in‡ationary e¤ects of the weak euro as o ...
... expressed concern that as emerging market economies have recovered from the 199798 crisis, the resulting higher import prices have led to greater in‡ationary pressures in the industrialized economies. In fact, the European Central Bank has cited the possible in‡ationary e¤ects of the weak euro as o ...
Fiscal Rules for Resource Windfall Allocation: The Case of
... should be saved. One limitation though is because of the nonstochastic nature of the models used in these studies, they are unable to determine the optimal allocation based on measures of volatility. At the same time, existing stochastic models that examine the transmission of resource price shocks ...
... should be saved. One limitation though is because of the nonstochastic nature of the models used in these studies, they are unable to determine the optimal allocation based on measures of volatility. At the same time, existing stochastic models that examine the transmission of resource price shocks ...
External and Domestic Debt
... consistent with a prudent degree of risk. Poor debt management poses risks for both the public and private sectors in the form of economic instability, insolvency, debt distress, and fiscal crisis. In order to prevent such eventuality, a government needs to identify the various risks to its debt sto ...
... consistent with a prudent degree of risk. Poor debt management poses risks for both the public and private sectors in the form of economic instability, insolvency, debt distress, and fiscal crisis. In order to prevent such eventuality, a government needs to identify the various risks to its debt sto ...
Woodford and Wicksell: a Cashless Economy or a Moneyless
... If we take for granted the Wicksellian definition of Economics as a practical science, it should, then, be quite natural to make the bridge between theory and practice. Unfortunately, most of the time a gap emerges between academics and policymakers. Goodhart (2005) for instance -in his survey of th ...
... If we take for granted the Wicksellian definition of Economics as a practical science, it should, then, be quite natural to make the bridge between theory and practice. Unfortunately, most of the time a gap emerges between academics and policymakers. Goodhart (2005) for instance -in his survey of th ...
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.