An Analysis of the Carry Trade - Trace: Tennessee Research and
... What is not understood is why the deviations, labeled as carry trades, are able to persist and incur profits or losses. A carry trade depends on the ability to capitalize on differences in interest rates for two countries. The Japanese interest rate has maintained near zero levels for more than a de ...
... What is not understood is why the deviations, labeled as carry trades, are able to persist and incur profits or losses. A carry trade depends on the ability to capitalize on differences in interest rates for two countries. The Japanese interest rate has maintained near zero levels for more than a de ...
Microsoft Word - WD No 379 Valladao Emergent Brazil
... The ‘Emergent Brazil’ growth model is reaching its limits.1 Its main engines have been slowing significantly since the beginning of the global financial and economic crisis in 2008, particularly in the last two years. Even its main fundament – a 15-year-old predictable macroeconomic policy – has bee ...
... The ‘Emergent Brazil’ growth model is reaching its limits.1 Its main engines have been slowing significantly since the beginning of the global financial and economic crisis in 2008, particularly in the last two years. Even its main fundament – a 15-year-old predictable macroeconomic policy – has bee ...
Systemic Challenges in the International Monetary System
... This chapter examines the weaknesses of the current IMS, and proposes some elements for its reform. It focuses on three fundamental challenges commonly perceived as confronting any IMS (see, for example, United Nations, 2009; Erten and Ocampo, 2012), and examines how these challenges and the respons ...
... This chapter examines the weaknesses of the current IMS, and proposes some elements for its reform. It focuses on three fundamental challenges commonly perceived as confronting any IMS (see, for example, United Nations, 2009; Erten and Ocampo, 2012), and examines how these challenges and the respons ...
economic and monetary union
... people—in addition to fixed exchange rates or a common currency—were believed to foster economic growth and economic well being. ...
... people—in addition to fixed exchange rates or a common currency—were believed to foster economic growth and economic well being. ...
Chapter 20
... people—in addition to fixed exchange rates or a common currency—were believed to foster economic growth and economic well being. ...
... people—in addition to fixed exchange rates or a common currency—were believed to foster economic growth and economic well being. ...
NOTES ON EXCHANGE RATES AND COMMODITY PRICES
... Prices of internationally traded connnodities have been markedly volatile over the last two decades. As Maizels (1992) demonstrates, the world market price of sugar, for example, varied between 2.5 and 41 U.S. cents per pound in the 1980s, and coffee ranged between 60 and 303 U.S. cents per pound ov ...
... Prices of internationally traded connnodities have been markedly volatile over the last two decades. As Maizels (1992) demonstrates, the world market price of sugar, for example, varied between 2.5 and 41 U.S. cents per pound in the 1980s, and coffee ranged between 60 and 303 U.S. cents per pound ov ...
Exchange Rates and International Finance
... – The Mexican central bank tried to maintain the exchange rate. • reserves fell very low • the government was forced to devalue and float the peso against the dollar. ...
... – The Mexican central bank tried to maintain the exchange rate. • reserves fell very low • the government was forced to devalue and float the peso against the dollar. ...
Free: 103.75 KB
... stronger the case for fixed exchange rates becomes. Another approach to the choice of exchange rate regime focuses on the effects of random disturbances on the domestic economy. The optimal regime in this framework is the one that stabilizes macroeconomic performance, that is, minimizes the fluctuat ...
... stronger the case for fixed exchange rates becomes. Another approach to the choice of exchange rate regime focuses on the effects of random disturbances on the domestic economy. The optimal regime in this framework is the one that stabilizes macroeconomic performance, that is, minimizes the fluctuat ...
English
... there is an entirely different dimension to this issue. If exporting firms set prices in foreign markets, and infrequently adjust them, in what currency should they set these prices? One reason why this is an important question is revealed in Figure 1, which shows a clear negative relationship betwee ...
... there is an entirely different dimension to this issue. If exporting firms set prices in foreign markets, and infrequently adjust them, in what currency should they set these prices? One reason why this is an important question is revealed in Figure 1, which shows a clear negative relationship betwee ...
Foreign Currency Borrowing: The Case of Hungary
... more recent contributions focus on three topics: portfolio allocation, market failures and institutions (Levy Yeyati, 2006 provides an overview). In the portfolio allocation model of Ize and Levy Yeyati (2003) agents minimize the variance of their portfolio returns. Both the returns of local and FX ...
... more recent contributions focus on three topics: portfolio allocation, market failures and institutions (Levy Yeyati, 2006 provides an overview). In the portfolio allocation model of Ize and Levy Yeyati (2003) agents minimize the variance of their portfolio returns. Both the returns of local and FX ...
Price Adjustment Mechanism with the Gold Standard
... Buyers/sellers know that governments stand ready to buy/sell pounds at mint par, using gold as medium of exchange. Since it is costly to ship gold, the exchange rate can vary slightly from mint par. ...
... Buyers/sellers know that governments stand ready to buy/sell pounds at mint par, using gold as medium of exchange. Since it is costly to ship gold, the exchange rate can vary slightly from mint par. ...
Dollarization in Cambodia: Causes and Policy Implications
... Cambodia has made great strides toward macroeconomic and political stability over the past decade. Cambodia’s economic growth has risen from an average 7 percent in the mid-to-late 1990s to over 9 percent in the 2000s, surpassing that of other low-income countries (LICs) in Asia (Figure 1). This gro ...
... Cambodia has made great strides toward macroeconomic and political stability over the past decade. Cambodia’s economic growth has risen from an average 7 percent in the mid-to-late 1990s to over 9 percent in the 2000s, surpassing that of other low-income countries (LICs) in Asia (Figure 1). This gro ...
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.