Exchange Rate Pass-Through to Import Prices in the
... evolved considerably over time. After a long period of debate over the law of one price and convergence across countries, beginning in the late 1980s exchange rate pass-through studies emphasized industrial organization and the role of segmentation and price discrimination across geographically dist ...
... evolved considerably over time. After a long period of debate over the law of one price and convergence across countries, beginning in the late 1980s exchange rate pass-through studies emphasized industrial organization and the role of segmentation and price discrimination across geographically dist ...
The US dollar: Safe haven
... to the loss of its safe-haven status. Arguing in the same direction, the German Council of Economic Experts regards it as impossible for the US to be able to maintain a current account deficit of more than 6 % of nominal GDP.2 Despite the fact that the threshold value of Clarida, Coretti and Taylor ...
... to the loss of its safe-haven status. Arguing in the same direction, the German Council of Economic Experts regards it as impossible for the US to be able to maintain a current account deficit of more than 6 % of nominal GDP.2 Despite the fact that the threshold value of Clarida, Coretti and Taylor ...
An interest rate defense of a fixed exchange rate?
... A policy-responsive wedge must be driven into the interest parity condition. Readers are used to risk aversion implying such a wedge and this is one entrée to the problem. A good bit of progress on interest rate policy is possible, however, in an environment of certainty so we will forgo uncertaint ...
... A policy-responsive wedge must be driven into the interest parity condition. Readers are used to risk aversion implying such a wedge and this is one entrée to the problem. A good bit of progress on interest rate policy is possible, however, in an environment of certainty so we will forgo uncertaint ...
The Argentine Monetary and Financial Policies and the Crisis
... implemented via several instruments such as Central Bank´s bills and notes, open market transactions with government securities, repo transactions and rediscount cancellations (20052009). Why are monetary aggregates used as monetary policy intermediate targets instead of simply signaling the monetar ...
... implemented via several instruments such as Central Bank´s bills and notes, open market transactions with government securities, repo transactions and rediscount cancellations (20052009). Why are monetary aggregates used as monetary policy intermediate targets instead of simply signaling the monetar ...
Econometric Analysis of Money Demand in Serbia
... The demand for money function creates a background to review the effectiveness of monetary policies, as an important issue in terms of the overall macroeconomic stability. Money demand is an important indicator of growth of a particular economy. The increasing money demand mostly indicates a countr ...
... The demand for money function creates a background to review the effectiveness of monetary policies, as an important issue in terms of the overall macroeconomic stability. Money demand is an important indicator of growth of a particular economy. The increasing money demand mostly indicates a countr ...
CURRENT ACCOUNT REVERSALS AND CURRENCY CRISES
... -2events and, possibly, to improve policy design so as to minimize the likelihood of their occurrence. In principle, a reversal in capital flows can cause a currency crisis and force a reduction in current account deficits, because of the drying up of sources of external financing. However, a rever ...
... -2events and, possibly, to improve policy design so as to minimize the likelihood of their occurrence. In principle, a reversal in capital flows can cause a currency crisis and force a reduction in current account deficits, because of the drying up of sources of external financing. However, a rever ...
How do resource-driven economies cope with the oil price
... even increase in the event of a devaluation, but this also goes for external debt. Moreover, a devaluation can cushion the fiscal impact of an oil price decline: While oil-related budget revenues, if expressed in U.S. dollars, decrease, this decrease is (partly) offset by the exchange rate adjustmen ...
... even increase in the event of a devaluation, but this also goes for external debt. Moreover, a devaluation can cushion the fiscal impact of an oil price decline: While oil-related budget revenues, if expressed in U.S. dollars, decrease, this decrease is (partly) offset by the exchange rate adjustmen ...
Exchange Rates, Balance of Payments, and International Debt
... 4. Continuing the yap example, what might the yap government be forced to do if it did not have a sufficient quantity of yaps on reserve to eliminate the excess demand? • The yap government might be forced to borrow yaps from another country, or even agree to increase the exchange rate ($ per yap). ...
... 4. Continuing the yap example, what might the yap government be forced to do if it did not have a sufficient quantity of yaps on reserve to eliminate the excess demand? • The yap government might be forced to borrow yaps from another country, or even agree to increase the exchange rate ($ per yap). ...
Does Misaligned Currency Affect Economic Growth? – Evidence
... undervalued or overvalued exchange rate and economic growth. Edwards (1989a) provided the seminal work and, based on his model, he discovered a significant negative relationship between economic growth and overvaluation. Collins and Razin (1997) adapted Edwards’s original model and they also found a ...
... undervalued or overvalued exchange rate and economic growth. Edwards (1989a) provided the seminal work and, based on his model, he discovered a significant negative relationship between economic growth and overvaluation. Collins and Razin (1997) adapted Edwards’s original model and they also found a ...
Does it pay to defend – The dynamics of financial crises
... central bank basically faces three alternatives. If it chooses to defend its currency, the defense can be successful or not. Each of these outcomes yields entirely di¤erent economic consequences. The empirical results strongly support the theoretical model. In our panel of 33 emerging market countri ...
... central bank basically faces three alternatives. If it chooses to defend its currency, the defense can be successful or not. Each of these outcomes yields entirely di¤erent economic consequences. The empirical results strongly support the theoretical model. In our panel of 33 emerging market countri ...
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.