Exchange rate anomalies in the industrial countries: A solution with
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
stop-loss orders and price cascades in currency markets
... Though the paper interprets unusual exchange rate behavior near round numbers as the response to clusters of stop-loss and take-profit orders, statistical analysis cannot prove that the connection is causal. To evaluate whether some other factor might explain the unusual behavior, the paper closely ...
... Though the paper interprets unusual exchange rate behavior near round numbers as the response to clusters of stop-loss and take-profit orders, statistical analysis cannot prove that the connection is causal. To evaluate whether some other factor might explain the unusual behavior, the paper closely ...
Stop-loss orders and price cascades in currency markets
... Though the paper interprets unusual exchange rate behavior near round numbers as the response to clusters of stop-loss and take-profit orders, statistical analysis cannot prove that the connection is causal. To evaluate whether some other factor might explain the unusual behavior, the paper closely ...
... Though the paper interprets unusual exchange rate behavior near round numbers as the response to clusters of stop-loss and take-profit orders, statistical analysis cannot prove that the connection is causal. To evaluate whether some other factor might explain the unusual behavior, the paper closely ...
Yip, Paul SL, (2005). The Exchange Rate Systems in Hong
... properly managed, it could provoke destabilizing capital flows and lead to volatile exchange rates. This highlights the need for regional coordination of policy measures during the liberalization process, even though it is the domestic authorities and institutions that are ultimately responsibility ...
... properly managed, it could provoke destabilizing capital flows and lead to volatile exchange rates. This highlights the need for regional coordination of policy measures during the liberalization process, even though it is the domestic authorities and institutions that are ultimately responsibility ...
Identification of US Monetary Policy Shocks
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
Factors that help to predict INR to USD exchange rate
... This paper outlines the history of the Indian currency exchange market, the basics of the Indian currency markets, past trends, its evolution to present day and the most significant factors that affect the exchange rates of the Indian Rupee and the US Dollar. The general history provides a profound ...
... This paper outlines the history of the Indian currency exchange market, the basics of the Indian currency markets, past trends, its evolution to present day and the most significant factors that affect the exchange rates of the Indian Rupee and the US Dollar. The general history provides a profound ...
The Yen and Its East Asian Neighbors 1980
... dollar was discontinued, and the middle rate of the rupiah began to be determined by the value of a basket of currencies and other considerations, subject to periodic devaluations. Following the 45 percent devaluation of September 1986, however, Bank Indonesia launched the exchange rate policy of ma ...
... dollar was discontinued, and the middle rate of the rupiah began to be determined by the value of a basket of currencies and other considerations, subject to periodic devaluations. Following the 45 percent devaluation of September 1986, however, Bank Indonesia launched the exchange rate policy of ma ...
Price Levels and the Exchange Rate in the Long Run
... comes by its name. According to the statement of PPP in equation (16-1), the dollar price of a euro is simply the dollar price of U.S. output divided by the euro price of European output. These two price levels, in turn, are determined completely by the supply and demand for each currency area’s mon ...
... comes by its name. According to the statement of PPP in equation (16-1), the dollar price of a euro is simply the dollar price of U.S. output divided by the euro price of European output. These two price levels, in turn, are determined completely by the supply and demand for each currency area’s mon ...
The Libyan Asset Freeze and Its Application to Foreign Government
... extraterritorial effect of a United States asset freeze). 7. See Hoffman & Giddy, Lessons from the Iranian Experience: National Currencies as InternationalMoney, 3 J. COMP. CORP. L. & SEC. REG. 73, 76 (1981) (defining a Eurodollar account as a dollar-denominated bank deposit held in a bank outside t ...
... extraterritorial effect of a United States asset freeze). 7. See Hoffman & Giddy, Lessons from the Iranian Experience: National Currencies as InternationalMoney, 3 J. COMP. CORP. L. & SEC. REG. 73, 76 (1981) (defining a Eurodollar account as a dollar-denominated bank deposit held in a bank outside t ...
3. Composite indicator and the probability of a crisis - Hal-SHS
... and contracts afterwards. Banking system collapses often coincide with the onset of a currency crisis. For example, the biggest difference between Russia and other Eastern European countries was the role of the banking system. In the former, credits have continued to be inefficiently directed toward ...
... and contracts afterwards. Banking system collapses often coincide with the onset of a currency crisis. For example, the biggest difference between Russia and other Eastern European countries was the role of the banking system. In the former, credits have continued to be inefficiently directed toward ...
Ignorance and Influence: U.S. Economists on Argentina`s
... “Argentina contemplated these problems [of the tradeoff between rules versus discretion in monetary policy] when instituting its monetary reforms and, in contrast to a pure currency board, elected to retain some latitude for discretionary policies. The central bank may, for instance, hold up to one- ...
... “Argentina contemplated these problems [of the tradeoff between rules versus discretion in monetary policy] when instituting its monetary reforms and, in contrast to a pure currency board, elected to retain some latitude for discretionary policies. The central bank may, for instance, hold up to one- ...
A Resolution on UIP Puzzle The Case of Korean wonThe United
... interest rate is higher than the United States’ interest rate, the won currency will appreciate rapidly due to capital inflow from the U.S. to Korea, the current value of the Korean won adjusts to this new information rapidly according to the “efficient capital market” hypothesis. In addition, if an ...
... interest rate is higher than the United States’ interest rate, the won currency will appreciate rapidly due to capital inflow from the U.S. to Korea, the current value of the Korean won adjusts to this new information rapidly according to the “efficient capital market” hypothesis. In addition, if an ...
International Gold Standard and US Moentary Policy from World War
... the world powers, only the United States could be counted as a gold-standard country. For other major countries, four years of inflation, price controls, exchange controls, and massive gold shipments complicated the problem of restoration. Many governments weighed the pros and cons of returning to p ...
... the world powers, only the United States could be counted as a gold-standard country. For other major countries, four years of inflation, price controls, exchange controls, and massive gold shipments complicated the problem of restoration. Many governments weighed the pros and cons of returning to p ...
IMF World Economic Outlook, May 1998-
... scale.80 A banking crisis may be so extensive as to assume systemic proportions. Systemic financial crises are potentially severe disruptions of financial markets that, by impairing markets’ ability to function effectively, can have large adverse effects on the real economy. A systemic financial cri ...
... scale.80 A banking crisis may be so extensive as to assume systemic proportions. Systemic financial crises are potentially severe disruptions of financial markets that, by impairing markets’ ability to function effectively, can have large adverse effects on the real economy. A systemic financial cri ...
Are twin currency and debt crises special?
... particularly acute in emerging markets and developing countries. 4 Many authors therefore contributed to the task of identifying the causes of these crises and to the derivation of policy measures to avoid future crises. Based on the experiences of the Latin American emerging market crises in the 19 ...
... particularly acute in emerging markets and developing countries. 4 Many authors therefore contributed to the task of identifying the causes of these crises and to the derivation of policy measures to avoid future crises. Based on the experiences of the Latin American emerging market crises in the 19 ...
Is the Crisis Problem Growing More Severe?
... crises are best explicable in terms of international economic policies (the flexibility of the exchange rate and the openness of the capital account) or the management of the domestic financial system. It will be evident that these two sets of variables correspond to the two leading explanations for ...
... crises are best explicable in terms of international economic policies (the flexibility of the exchange rate and the openness of the capital account) or the management of the domestic financial system. It will be evident that these two sets of variables correspond to the two leading explanations for ...
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.