CEPAL Review 93 - CEPAL
... In situations of deficit, the “trilemma” does indeed usually hold true. In conditions of excess demand in the currency market, the ability even of powerful central banks to intervene in that market is ultimately limited by the available amount of reserves. In situations of excess demand for internat ...
... In situations of deficit, the “trilemma” does indeed usually hold true. In conditions of excess demand in the currency market, the ability even of powerful central banks to intervene in that market is ultimately limited by the available amount of reserves. In situations of excess demand for internat ...
CHAPTER 18. OPENNESS IN GOODS
... A negative trade balance is called a trade deficit, and a positive one a trade surplus. In the closed economy model developed earlier in the book, domestic residents made only one decision—how much to spend. In an open economy, domestic residents make two decisions—how much to spend and how much to ...
... A negative trade balance is called a trade deficit, and a positive one a trade surplus. In the closed economy model developed earlier in the book, domestic residents made only one decision—how much to spend. In an open economy, domestic residents make two decisions—how much to spend and how much to ...
Fluctuations in the Yen/Dollar Exchange Rate, East Asian Business
... dollar while many Asian countries sank into a serious export slump (Ito et al. 1998; Ogawa 2002). Some observers further claim that the Asian countries’ unofficial dollar pegs have been revived in recent years. In their view, therefore, the state of affairs in which the capricious yen-dollar rate p ...
... dollar while many Asian countries sank into a serious export slump (Ito et al. 1998; Ogawa 2002). Some observers further claim that the Asian countries’ unofficial dollar pegs have been revived in recent years. In their view, therefore, the state of affairs in which the capricious yen-dollar rate p ...
LEADING INDICATORS OF CURRENCY CRISES IN EMERGING
... authors find that the most significant indicators are: the ratio of short-term debt to reserves (and not total debt to reserves) and the growth of credit to the private sector. Neither the real exchange rate nor the current account is significant. This paper contributes to the empirical identificati ...
... authors find that the most significant indicators are: the ratio of short-term debt to reserves (and not total debt to reserves) and the growth of credit to the private sector. Neither the real exchange rate nor the current account is significant. This paper contributes to the empirical identificati ...
empirical studies of nigeria`s foreign exchange parallel market ii
... over time, including political dynamics, the changing pattern of international trade and institutional changes in the economy (such as structural shifts in production). It is a fair characterization to say that Nigeria's foreign exchange rate management policy varied according to episodic changes in ...
... over time, including political dynamics, the changing pattern of international trade and institutional changes in the economy (such as structural shifts in production). It is a fair characterization to say that Nigeria's foreign exchange rate management policy varied according to episodic changes in ...
A Fast-Track East African Community Monetary Union?
... Next is to carry out the cointegration analysis. A separate VECM is set up for each variable. To select the appropriate lag length, the Akaike Information Criterion (AIC) and the Hannan-Quinn Information Criterion (HQIC) are used. For each VECM, the five submodels (model 0, 1*, 1, 2*, and 2) describ ...
... Next is to carry out the cointegration analysis. A separate VECM is set up for each variable. To select the appropriate lag length, the Akaike Information Criterion (AIC) and the Hannan-Quinn Information Criterion (HQIC) are used. For each VECM, the five submodels (model 0, 1*, 1, 2*, and 2) describ ...
CATO HANDBOOK CONGRESS FOR
... long-run price stability—i.e., expected inflation of 0–2 percent a year— the sole goal of monetary policy. (If price indexes correctly measured inflation, zero expected inflation would be the preferred target. But since price indexes typically understate the extent of quality improvement, zero expec ...
... long-run price stability—i.e., expected inflation of 0–2 percent a year— the sole goal of monetary policy. (If price indexes correctly measured inflation, zero expected inflation would be the preferred target. But since price indexes typically understate the extent of quality improvement, zero expec ...
Does exchange rate depreciation have contractionary effects on firm
... “… In conventional textbook accounts, expansionary monetary policy and depreciation of the currency are optimal in response to an adverse foreign shock… But if an economy has a large debt denominated in foreign currency, then a weaker local currency can also exacerbate debt-service difficulties and ...
... “… In conventional textbook accounts, expansionary monetary policy and depreciation of the currency are optimal in response to an adverse foreign shock… But if an economy has a large debt denominated in foreign currency, then a weaker local currency can also exacerbate debt-service difficulties and ...
a comparison of the classical black-scholes model
... The assumption of normally distributed log returns has been proved to be incorrect and in addition the assumption of constant volatility is not realistic. The family of GARCH volatility models has become an important tool kit in empirical asset pricing and financial risk management. Following the wo ...
... The assumption of normally distributed log returns has been proved to be incorrect and in addition the assumption of constant volatility is not realistic. The family of GARCH volatility models has become an important tool kit in empirical asset pricing and financial risk management. Following the wo ...
Foreign Exchange Risk Management Practices
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
... became more exposed, on a different level with the exchange rate differentiation, than what they had been during the previous system with an inflexible exchange rate. The SEK depreciated against foreign currencies after the introduction of the floating exchange rate. This favoured the exporting comp ...
Purchasing Power Parity
... Step 3: Review the empirical evidence under the parity condition. We will begin with purchasing power parity (PPP) by developing its theory and reviewing the empirical evidence related to it. ...
... Step 3: Review the empirical evidence under the parity condition. We will begin with purchasing power parity (PPP) by developing its theory and reviewing the empirical evidence related to it. ...
Gold Standard - Personal.psu.edu
... • Under Dorothy’s influence they become kind, but cannot take her to Kansas – "We belong to this country alone, and cannot leave it" ...
... • Under Dorothy’s influence they become kind, but cannot take her to Kansas – "We belong to this country alone, and cannot leave it" ...
Currency
A currency (from Middle English: curraunt, ""in circulation"", from Latin: currens, -entis) in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation. Under this definition, British pounds, U.S. dollars, and European euros are examples of currency. These various currencies are stores of value, and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.Other definitions of the term ""currency"" are discussed in their respective synonymous articles banknote, coin, and money. The latter definition, pertaining to the currency systems of nations, is the topic of this article. Currencies can be classified into two monetary systems: fiat money and commodity money, depending on what guarantees the value (the economy at large vs. the government's physical metal reserves). Some currencies are legal tender in certain jurisdictions, which means they cannot be refused as payment for debt. Others are simply traded for their economic value. Digital currency arose with the popularity of computers and the Internet.