IB Economics Section 3.3 The balance of payments
... The effect of a current account deficit on the exchange rate: Under a floating exchange rate system, deficits in the current account should be automatically corrected due to adjustments in exchange rates. When households and firms in one nation demand more of other countries’ output than the rest of ...
... The effect of a current account deficit on the exchange rate: Under a floating exchange rate system, deficits in the current account should be automatically corrected due to adjustments in exchange rates. When households and firms in one nation demand more of other countries’ output than the rest of ...
32 - Mersin
... • A decrease in net foreign investment reduces the supply of dollars to be exchanged into foreign currency. • This causes the real exchange rate to appreciate. ...
... • A decrease in net foreign investment reduces the supply of dollars to be exchanged into foreign currency. • This causes the real exchange rate to appreciate. ...
DP2009/17 Global shocks, economic growth and financial
... includes New Zealand. In the existing literature, New Zealand is often not included in the estimation samples because of missing values in key variables. Based on the results from the estimation, we highlight factors which were important in mitigating or exacerbating crisis risk in the country. We f ...
... includes New Zealand. In the existing literature, New Zealand is often not included in the estimation samples because of missing values in key variables. Based on the results from the estimation, we highlight factors which were important in mitigating or exacerbating crisis risk in the country. We f ...
Chapter 7: Economic Growth, Business Cycles, Unemployment, and
... (Technical note: This is assuming the value added tax is an income-based rather than a consumption-based value added tax.) ...
... (Technical note: This is assuming the value added tax is an income-based rather than a consumption-based value added tax.) ...
THE DIFFUSION OF DEVELOPMENT Prabhat Patnaik
... its rivals for any length of time. If at all it had such a surplus, then these other countries’ currencies, not being “as good as gold”, would soon be under pressure, necessitating adjustments to eliminate this surplus. But even a balanced current account between the leading country and its rivals i ...
... its rivals for any length of time. If at all it had such a surplus, then these other countries’ currencies, not being “as good as gold”, would soon be under pressure, necessitating adjustments to eliminate this surplus. But even a balanced current account between the leading country and its rivals i ...
UNHAPPY FAMILIES ARE ALL ALIKE: MINSKYAN CYCLES
... to more recent experiences, the dramatic one of the so-called “credible EMS” between 1987 and 1992 (Frankel and Phillips, 1992). All these experiences occurred, at different points in time, in Europe, and they all ended up in the same way: the “strong currency policy”, whatever its intended motivati ...
... to more recent experiences, the dramatic one of the so-called “credible EMS” between 1987 and 1992 (Frankel and Phillips, 1992). All these experiences occurred, at different points in time, in Europe, and they all ended up in the same way: the “strong currency policy”, whatever its intended motivati ...
The Environmental Consequences of Stagnation in Nicaragua
... historical maximum, which occurred in 1977 (Gibson, 1987, p. 24). This figure may exaggerate the cost of the revolution somewhat since there were some gains in the social wage during the period. In 1992, exports fell to 62% of their 1981-85 level and by 1988, there were severe imbalances in the econ ...
... historical maximum, which occurred in 1977 (Gibson, 1987, p. 24). This figure may exaggerate the cost of the revolution somewhat since there were some gains in the social wage during the period. In 1992, exports fell to 62% of their 1981-85 level and by 1988, there were severe imbalances in the econ ...
View - The IJBM
... The development of the capital market can be reflected on the stock market price fluctuations. Changes in stock prices are influenced by several factors, according to Samsul (2006) there are seven factors: (1) The gross domestic product; (2) inflation; (3) the unemployment rate; (4) the interest rat ...
... The development of the capital market can be reflected on the stock market price fluctuations. Changes in stock prices are influenced by several factors, according to Samsul (2006) there are seven factors: (1) The gross domestic product; (2) inflation; (3) the unemployment rate; (4) the interest rat ...
Official PDF , 25 pages
... With taxes and the foreign price of tradables given, anything that affects domestic prices affects the real exchange rate directly, and also indirectly through the effect on E. These factors are generated by macro policies and are related to the relative size of the public sector, fluctuations in it ...
... With taxes and the foreign price of tradables given, anything that affects domestic prices affects the real exchange rate directly, and also indirectly through the effect on E. These factors are generated by macro policies and are related to the relative size of the public sector, fluctuations in it ...
http://are.berkeley.edu/~adelman/crisis.pdf
... economy from one in which exports were of marginal importance into one in which they have become vital. As emphasized by Stiglitz (1998), small open economies are inherently vulnerable to exogenous shocks. While Korea is now the 11th largest trading economy in the world and the third largest develop ...
... economy from one in which exports were of marginal importance into one in which they have become vital. As emphasized by Stiglitz (1998), small open economies are inherently vulnerable to exogenous shocks. While Korea is now the 11th largest trading economy in the world and the third largest develop ...
NBER WORKING PAPER SERIES THE CAPITAL INFLOWS PROBLEM SOUTHERN CONE DISINFLATION
... of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, and exchange—rate policy. The goal of the present work is to elucidate a channel through which capital inflows and real appreciation may occur even if agents have ...
... of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, and exchange—rate policy. The goal of the present work is to elucidate a channel through which capital inflows and real appreciation may occur even if agents have ...
Folie 1
... Integration of the East and South Asia into the Global Economy − The aggregate labour force of China, India, Vietnam, Indonesia and Pakistan, is around 1.5 billion (World Bank 2006); of the OECD around 500 million − Only a small portion of Asian labor force is integrated into the world economy but ...
... Integration of the East and South Asia into the Global Economy − The aggregate labour force of China, India, Vietnam, Indonesia and Pakistan, is around 1.5 billion (World Bank 2006); of the OECD around 500 million − Only a small portion of Asian labor force is integrated into the world economy but ...
The Role of Monetary Policy during the Global Financial Crisis
... seriously, this could clearly be categorized as a sudden stop (of capital inflows). As capital ceased to flow into the economy, the trade balance-to-GDP ratio had to adjust by about eight percentage points of GDP, to over four percent from minus four percent. To effect this dramatic adjustment, the ...
... seriously, this could clearly be categorized as a sudden stop (of capital inflows). As capital ceased to flow into the economy, the trade balance-to-GDP ratio had to adjust by about eight percentage points of GDP, to over four percent from minus four percent. To effect this dramatic adjustment, the ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... with intertemporal optimization, zero savings is an implication of the stationary state, achieved when the interest rate equals the rate of time preference. We now address the question whether this prcperty is truly general or whether it follows from some special assumptions introduced into the mode ...
... with intertemporal optimization, zero savings is an implication of the stationary state, achieved when the interest rate equals the rate of time preference. We now address the question whether this prcperty is truly general or whether it follows from some special assumptions introduced into the mode ...
Macro Sample Exam Questions
... 17) If real income is above the subsistence level then, according to classical growth theory, A) the standard of living will continue to improve. B) the population will increase. C) more technological advances occur. D) labor productivity will increase. E) the population will decrease. Topic: Classi ...
... 17) If real income is above the subsistence level then, according to classical growth theory, A) the standard of living will continue to improve. B) the population will increase. C) more technological advances occur. D) labor productivity will increase. E) the population will decrease. Topic: Classi ...
Criteria To Be Considered In Assessing A Country`s
... distress of private sector agents (banks, firms, households). In fact, as the government is anyhow restructuring its debt regardless of the currency regime, any extra real debt burden costs deriving from a real depreciation could be in principle dealt with a greater haircut on the value of the gover ...
... distress of private sector agents (banks, firms, households). In fact, as the government is anyhow restructuring its debt regardless of the currency regime, any extra real debt burden costs deriving from a real depreciation could be in principle dealt with a greater haircut on the value of the gover ...
NBER WORKING PAPER SERIES A TWO-YEAR REVIEW Michael Bruno Working Paper No. 2398
... appropriate initial synchronization of the most important nominal variables. In spite of the continued success of the stabilization program over the last two years, many problems remain. Excessive wage demands and a private consumption boom, in part the result of relative stability, have so far prev ...
... appropriate initial synchronization of the most important nominal variables. In spite of the continued success of the stabilization program over the last two years, many problems remain. Excessive wage demands and a private consumption boom, in part the result of relative stability, have so far prev ...
DP2001/03 Would adopting the Australian dollar provide superior monetary policy in New Zealand?
... model is used to represent the New Zealand economy, augmented by a stylised representation of a foreign economy, as outlined in the following section. The foreign economy, which may be thought of as Australia or the United States, has its own objective for monetary policy and meets that objective by ...
... model is used to represent the New Zealand economy, augmented by a stylised representation of a foreign economy, as outlined in the following section. The foreign economy, which may be thought of as Australia or the United States, has its own objective for monetary policy and meets that objective by ...
exchange rate
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
Current account reversals and currency crises: empirical
... The latest waves of currency crises referred to above have brought explanations of crises based on multiple equilibria or on contagion effects to the forefront (on the former see, e.g., Eichengreen, Rose, and Wyplosz 1995; Jeanne and Masson 2000; among others; on the latter, Eichengreen et al. 1996; ...
... The latest waves of currency crises referred to above have brought explanations of crises based on multiple equilibria or on contagion effects to the forefront (on the former see, e.g., Eichengreen, Rose, and Wyplosz 1995; Jeanne and Masson 2000; among others; on the latter, Eichengreen et al. 1996; ...
Tequila Hangover: Latin America`s Debt Crisis
... powers, enabled the Fund to provide conditional short-term loans to debtors to get them over immediate cash shortfalls. These stand-by loans were often arranged as countries neared the brink of insolvency, not as their performance improved. The main intention of these conditions was to prevent (or a ...
... powers, enabled the Fund to provide conditional short-term loans to debtors to get them over immediate cash shortfalls. These stand-by loans were often arranged as countries neared the brink of insolvency, not as their performance improved. The main intention of these conditions was to prevent (or a ...
Peso: depreciation vs. inflation
... in the Chinese economy might affect countries dependent on exports to China, and that it could lead to more Yuan depreciation, with a negative effect on other emerging currencies. During August the peso depreciated by 4.39% (Figure 4). This change in the g ...
... in the Chinese economy might affect countries dependent on exports to China, and that it could lead to more Yuan depreciation, with a negative effect on other emerging currencies. During August the peso depreciated by 4.39% (Figure 4). This change in the g ...
Answer Key - Department Of Economics
... 45. If for some reason Americans desired to increase their purchases of foreign assets, then other things the same a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall. b. both the real exchange rate and the quantity of dollars e ...
... 45. If for some reason Americans desired to increase their purchases of foreign assets, then other things the same a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall. b. both the real exchange rate and the quantity of dollars e ...
Foreign-exchange reserves
.PNG?width=300)
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.