Chapter 17
... ! Two possible systems for fixing the exchange rates: • Reserve currency standard – Central banks peg the prices of their currencies in terms of a reserve currency. – The currency central banks hold in their international reserves. ...
... ! Two possible systems for fixing the exchange rates: • Reserve currency standard – Central banks peg the prices of their currencies in terms of a reserve currency. – The currency central banks hold in their international reserves. ...
Purchasing Power Parity: Implication with respect to
... Few lessons are drawn from these episodes of U.S. easy money cum weak dollar for the stability of America’s own economy. First, sharply increasing the general prices in auction-market goods like prices of primary commodities or foreign exchange are useful early warning to the Fed that it is being to ...
... Few lessons are drawn from these episodes of U.S. easy money cum weak dollar for the stability of America’s own economy. First, sharply increasing the general prices in auction-market goods like prices of primary commodities or foreign exchange are useful early warning to the Fed that it is being to ...
Economic Premise - World Bank Group
... whose exports over the previous five years had the largest value and had been determined by the IMF to be “freely usable,”5 which is defined by the IMF’s articles as those currencies (i) widely used to make payments for international transactions and (ii) widely traded in the principal exchange mark ...
... whose exports over the previous five years had the largest value and had been determined by the IMF to be “freely usable,”5 which is defined by the IMF’s articles as those currencies (i) widely used to make payments for international transactions and (ii) widely traded in the principal exchange mark ...
What Is the Equilibrium Exchange Rate?
... Free float – Central bank controls money supply or the interest rate and does not intervene in foreign exchange market, i.e., does not buy or sell foreign reserves. Managed float with no predetermined path – Central Bank may intervene in foreign exchange market, but no exchange rate target. ...
... Free float – Central bank controls money supply or the interest rate and does not intervene in foreign exchange market, i.e., does not buy or sell foreign reserves. Managed float with no predetermined path – Central Bank may intervene in foreign exchange market, but no exchange rate target. ...
Invoice Currency: puzzling evidence and new questions from Brazil
... and currency use to go further. Departing from a base definition in which international currency is one used beyond the limits of its issuing country, we report that some agents do use the Brazilian currency for invoicing foreign trade. We register, for the first time, the Brazilian foreign trade ac ...
... and currency use to go further. Departing from a base definition in which international currency is one used beyond the limits of its issuing country, we report that some agents do use the Brazilian currency for invoicing foreign trade. We register, for the first time, the Brazilian foreign trade ac ...
Peso: depreciation vs. inflation
... Since 2000, pass-through of peso depreciation to inflation has been less than prior years for the reasons mentioned on page 4, above all in periods of high volatility such as 2008-9 and 2011-12 (Figure 6). The Bank of Mexico has researched this phenomen ...
... Since 2000, pass-through of peso depreciation to inflation has been less than prior years for the reasons mentioned on page 4, above all in periods of high volatility such as 2008-9 and 2011-12 (Figure 6). The Bank of Mexico has researched this phenomen ...
Sterilization - Princeton University Press
... purchases more of its domestic currency and takes the receipts out of circulation, the intervention will have a contractionary effect on the domestic money base. Sterilized intervention operations involve domestic asset transactions that restore the monetary base to its original size. For example, a ...
... purchases more of its domestic currency and takes the receipts out of circulation, the intervention will have a contractionary effect on the domestic money base. Sterilized intervention operations involve domestic asset transactions that restore the monetary base to its original size. For example, a ...
Brief History of the Gold Standard in the United States
... The U.S. monetary system is based on paper money backed by the full faith and credit of the federal government. The currency is neither valued in, backed by, nor officially convertible into gold or silver. Through much of its history, however, the United States was on a metallic standard of one sort ...
... The U.S. monetary system is based on paper money backed by the full faith and credit of the federal government. The currency is neither valued in, backed by, nor officially convertible into gold or silver. Through much of its history, however, the United States was on a metallic standard of one sort ...
The advantages and disadvantages of various exchange rate regimes
... in the country’s international price competitiveness. For example, the appreciation of the dollar from 1995 and 2001 was also an appreciation for whatever currencies were linked to the dollar. Regardless the extent to which one considers the late-1990s dollar appreciation to have been based in the f ...
... in the country’s international price competitiveness. For example, the appreciation of the dollar from 1995 and 2001 was also an appreciation for whatever currencies were linked to the dollar. Regardless the extent to which one considers the late-1990s dollar appreciation to have been based in the f ...
DD-AA
... • The XX curve slopes upward but is flatter than the DD curve. ¨ DD represents equilibrium values of aggregate demand and domestic output. ¨ As domestic income and output increase, domestic saving increases, which means that aggregate demand (willingness to spend) by domestic residents does not rise ...
... • The XX curve slopes upward but is flatter than the DD curve. ¨ DD represents equilibrium values of aggregate demand and domestic output. ¨ As domestic income and output increase, domestic saving increases, which means that aggregate demand (willingness to spend) by domestic residents does not rise ...
Debt Composition and Balance Sheet Effects of Exchange and
... increased substantially in the immediate aftermath of the crisis, which is consistent with the increase in the value of debt. Investment fell drastically, both in property, plant and equipment and in inventories. To summarize the immediate effects of the crisis on our sample, we also reproduce a tabl ...
... increased substantially in the immediate aftermath of the crisis, which is consistent with the increase in the value of debt. Investment fell drastically, both in property, plant and equipment and in inventories. To summarize the immediate effects of the crisis on our sample, we also reproduce a tabl ...
Chapter 18
... the country—raising prices in that country and lowering prices in foreign countries. ! Goods from the domestic country become relatively expensive and goods from foreign countries relatively cheap, reducing the current account surplus of the home country and the deficits of the foreign ...
... the country—raising prices in that country and lowering prices in foreign countries. ! Goods from the domestic country become relatively expensive and goods from foreign countries relatively cheap, reducing the current account surplus of the home country and the deficits of the foreign ...
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.