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This version: August 30, 2000 Forthcoming, Journal of Money, Credit
... deficits, and a surge in money demand. Mendoza and Uribe (2000a) showed that the risk of ...
... deficits, and a surge in money demand. Mendoza and Uribe (2000a) showed that the risk of ...
NBER WORKING PAPER SERIES COMPOSITIONAL EFFECTS OF GOVERNMENT SPENDING
... Figure 2 illustrates the initial equilibrium. Since it is stationary, the graphs characterize equilibrium in each period. The countries share identical production possibilitiesfrontiers and identicaland homotheticpreferences. Thus, the only difference between the home and foreign country is that pri ...
... Figure 2 illustrates the initial equilibrium. Since it is stationary, the graphs characterize equilibrium in each period. The countries share identical production possibilitiesfrontiers and identicaland homotheticpreferences. Thus, the only difference between the home and foreign country is that pri ...
Week 5
... domestic investors lend abroad minus the amount that foreign investors lend to the U.S. It may be positive or negative. In a small open economy, investment (capital) flows in and out of a country freely at a fixed world interest rate. In the large open economy model the interest rate r is largely a ...
... domestic investors lend abroad minus the amount that foreign investors lend to the U.S. It may be positive or negative. In a small open economy, investment (capital) flows in and out of a country freely at a fixed world interest rate. In the large open economy model the interest rate r is largely a ...
A Review of Philippine Monetary Policy Towards An Alternative Monetary... Joseph Lim 3-D 12
... and parcel of IMF conditionalities in the 1980s. Starting in the early 1960s the IMF had become the standard funder of last resort during crises. In the early 1980s, quarterly monetary targeting became the norm. These monetary targets became very tight every time balance of payments deteriorated and ...
... and parcel of IMF conditionalities in the 1980s. Starting in the early 1960s the IMF had become the standard funder of last resort during crises. In the early 1980s, quarterly monetary targeting became the norm. These monetary targets became very tight every time balance of payments deteriorated and ...
International Aspects of U.S. Monetary and Fiscal Policy Paul Krugman* Introduction
... Few sensible observers would quarrel with the argument that monetary expansion at least temporarily lowers interest rates and leads to currency depreciation, though the perverse effect of monetary expansion on demand abroad may raise some doubts. More Controversial, however, are the effects of fisca ...
... Few sensible observers would quarrel with the argument that monetary expansion at least temporarily lowers interest rates and leads to currency depreciation, though the perverse effect of monetary expansion on demand abroad may raise some doubts. More Controversial, however, are the effects of fisca ...
Capital Account Liberalization: The Case of Turkey?
... trade deficits and real exchange rate appreciations following the liberalization were reversed by trade surpluses and real exchange rate depreciations first in 1994 and then in 2001. The purpose of this paper is to quantitatively account for the features of the Turkish economy in the aftermath of th ...
... trade deficits and real exchange rate appreciations following the liberalization were reversed by trade surpluses and real exchange rate depreciations first in 1994 and then in 2001. The purpose of this paper is to quantitatively account for the features of the Turkish economy in the aftermath of th ...
Foreign Exchange Market (FOREX)
... they like the variety of colors that they come in. Also assume the Euro-area countries are in the midst of an economic recovery AND the U.S. economy is in a recession which has depressed the average price level. – This example hits four of the factors that affect the exchange rates between two curre ...
... they like the variety of colors that they come in. Also assume the Euro-area countries are in the midst of an economic recovery AND the U.S. economy is in a recession which has depressed the average price level. – This example hits four of the factors that affect the exchange rates between two curre ...
On the Political Economy of Exchange Rate Policy
... the behaviour of the authorities, duly forcing them to maintain a sound economic policy stance. As a result, by claiming that both floating and fixed exchange rate regimes are capable of providing an optimal policy rule, though by offering no grounds for choosing between them purely on the basis ...
... the behaviour of the authorities, duly forcing them to maintain a sound economic policy stance. As a result, by claiming that both floating and fixed exchange rate regimes are capable of providing an optimal policy rule, though by offering no grounds for choosing between them purely on the basis ...
lecture4_2009 - Dr. Rajeev Dhawan
... banking. Bankers understand that it is not necessary to keep 100 percent of a depositors money on hand at all times. As a result, bankers take some of your money and loan it out to other people. ...
... banking. Bankers understand that it is not necessary to keep 100 percent of a depositors money on hand at all times. As a result, bankers take some of your money and loan it out to other people. ...
Historia-COLOMBIA TRADE POLICY-version mar06
... ECLAC (The United Nations Economic Commission for Latin America and the Caribbean) between the fifties and sixties. This view contrasts with previous work of Latin American historiography and has also been questioned more recently by North-American authors (see Coatsworth and Williamson (2002), Clem ...
... ECLAC (The United Nations Economic Commission for Latin America and the Caribbean) between the fifties and sixties. This view contrasts with previous work of Latin American historiography and has also been questioned more recently by North-American authors (see Coatsworth and Williamson (2002), Clem ...
Chapter 10 - Porterville College Home
... Open Market Operations (OMOs): the buying and selling of government bonds by the Fed to control bank reserves, the federal funds rate, and the money supply. For example, if the FOMC wants to increase the money supply, it gives a directive to the trading desk at the FRB-NY to buy bonds. When the FRB- ...
... Open Market Operations (OMOs): the buying and selling of government bonds by the Fed to control bank reserves, the federal funds rate, and the money supply. For example, if the FOMC wants to increase the money supply, it gives a directive to the trading desk at the FRB-NY to buy bonds. When the FRB- ...
Chapter 13
... • The balance of payment accounts are separated into 3 broad accounts: – current account: purchases and sales of goods and services (imports and exports). – financial account: purchases and sales of financial assets (cross-border borrowing and lending). – capital account: transfers of special catego ...
... • The balance of payment accounts are separated into 3 broad accounts: – current account: purchases and sales of goods and services (imports and exports). – financial account: purchases and sales of financial assets (cross-border borrowing and lending). – capital account: transfers of special catego ...
Demand Imbalances, Exchange Rate Misalignment and Monetary Policy
... Relative to the analysis in DE, our study provides examples of standard economies in which monetary policy geared towards strict inflation targeting results in (rather than correcting) significant misalignments in important asset prices like the exchange rate, even when the latter only reflects fund ...
... Relative to the analysis in DE, our study provides examples of standard economies in which monetary policy geared towards strict inflation targeting results in (rather than correcting) significant misalignments in important asset prices like the exchange rate, even when the latter only reflects fund ...
Macroeconomic Policy for Growth and Poverty Reduction: An
... context of imperfect competition. At the macroeconomic level, inefficient market clearing implies that an economy does not automatically adjust to its full potential output. These inefficiencies justify public intervention, designed specifically for each country context. Among the analytical and pra ...
... context of imperfect competition. At the macroeconomic level, inefficient market clearing implies that an economy does not automatically adjust to its full potential output. These inefficiencies justify public intervention, designed specifically for each country context. Among the analytical and pra ...
Chapter 15 Price Levels and the Exchange Rate in the Long Run
... explain exchange rates. Both monetary factors and real factors influence nominal exchange rates: 1a. changes in monetary levels, leading to temporary inflation and changes in expectations about inflation. 1b. changes in monetary growth rates, leading to persistent inflation and changes in expectatio ...
... explain exchange rates. Both monetary factors and real factors influence nominal exchange rates: 1a. changes in monetary levels, leading to temporary inflation and changes in expectations about inflation. 1b. changes in monetary growth rates, leading to persistent inflation and changes in expectatio ...
NBER WORKING. PAPER SERIES EQUILIBRIUM AND EXCHANGE RATES Rudiger Dornbusch
... The paper reviews theoretical develorents in the field of exchange rate theory and assesses the empirical evidence. Since the empirical evidence does not lend support to the nrdels that have been formulated, a number of reasons for that failure are suggested. These include the argument that the curr ...
... The paper reviews theoretical develorents in the field of exchange rate theory and assesses the empirical evidence. Since the empirical evidence does not lend support to the nrdels that have been formulated, a number of reasons for that failure are suggested. These include the argument that the curr ...
PDF
... realism or the rigor of explicit welfare analysis. Our model embeds features of the static, closed-economy models of Blanchard and Kiyotaki (1987) and Ball and Romer (1989) iri an analytically tractable, dynamic, two-country framework. Section 2 sets out an infinitehorizon monetary model of a monopo ...
... realism or the rigor of explicit welfare analysis. Our model embeds features of the static, closed-economy models of Blanchard and Kiyotaki (1987) and Ball and Romer (1989) iri an analytically tractable, dynamic, two-country framework. Section 2 sets out an infinitehorizon monetary model of a monopo ...
Exchange Rates
... rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • Examples include the gold standard, which operated in the late 1800s and early 1900s, and the Bretton Woods system, whi ...
... rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • Examples include the gold standard, which operated in the late 1800s and early 1900s, and the Bretton Woods system, whi ...
wiwi.uni-frankfurt.de
... • Oversupply in construction sector – 50% of loans are non-performing; banks having trouble to service their foreign debt • 1994: Depreciation of Chinese Yuan by one third – reduction in Thai competitiveness • 1995: US$ rises against most currencies – and so does the Baht • Growth sinks from 26% in ...
... • Oversupply in construction sector – 50% of loans are non-performing; banks having trouble to service their foreign debt • 1994: Depreciation of Chinese Yuan by one third – reduction in Thai competitiveness • 1995: US$ rises against most currencies – and so does the Baht • Growth sinks from 26% in ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 19
... Answer: Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The conclusion depends upon the country's future prospects. If net exports are expected to rise at a rate sufficient to counteract the effects of debt (including interest payments) ove ...
... Answer: Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The conclusion depends upon the country's future prospects. If net exports are expected to rise at a rate sufficient to counteract the effects of debt (including interest payments) ove ...
CURRENCY COMPETITION BETWEEN EURO AND US DOLLAR Li
... More recently, the euro experienced a rather long period of dramatic depreciation during 1999 and early 2002 followed by a strong rally after the middle of 2002. ...
... More recently, the euro experienced a rather long period of dramatic depreciation during 1999 and early 2002 followed by a strong rally after the middle of 2002. ...
Testing the Taylor Model Predictability for Exchange Rates
... Motivated by those new developments and trying to build up on the recent results, we incorporate Latin America economies in the exchange rate predictability analysis. Our focus is to test for cointegration relationships and apply a mean correction error formulation to the Taylor rule model and a bro ...
... Motivated by those new developments and trying to build up on the recent results, we incorporate Latin America economies in the exchange rate predictability analysis. Our focus is to test for cointegration relationships and apply a mean correction error formulation to the Taylor rule model and a bro ...
In Focus: Markets as we see them China`s capital flight
... guidance at the most general level, something that has already been lost in translation in related private sector research reports. Furthermore, the estimates were based on past data that includes small/medium sized economies running large current account deficits, hardly an appropriate comparison t ...
... guidance at the most general level, something that has already been lost in translation in related private sector research reports. Furthermore, the estimates were based on past data that includes small/medium sized economies running large current account deficits, hardly an appropriate comparison 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.