Modelling the rand and commodity prices: A Granger causality and
... correlation (-0.8952), with the significantly stronger causality running from commodity prices to the exchange rate, findings consistent with Chen and Rogoff (2003). Another attempt at analysing the joint working of the two markets was done by Swift (2004). The author starts with the analysis of Rid ...
... correlation (-0.8952), with the significantly stronger causality running from commodity prices to the exchange rate, findings consistent with Chen and Rogoff (2003). Another attempt at analysing the joint working of the two markets was done by Swift (2004). The author starts with the analysis of Rid ...
NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to their exchange rate. In October 1969, they revalued the mark against the dollar. In May 1971, to ...
... and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to their exchange rate. In October 1969, they revalued the mark against the dollar. In May 1971, to ...
The Impact of Monetary Policy Announcements
... The exchange rate is sensitive to a wide range of economic, social and political news. As such, monetary policy announcements which do not coincide with the release of other economic news and the announcements classi…ed as unanticipated are used, while only major political or socio-political events ...
... The exchange rate is sensitive to a wide range of economic, social and political news. As such, monetary policy announcements which do not coincide with the release of other economic news and the announcements classi…ed as unanticipated are used, while only major political or socio-political events ...
Forex Medium-Term Outlook
... circumstances” (Reuters), but my impression is that these were merely general theories Mr. Kuroda offered when stubbornly questioned by the opposition (Please note that “real effective exchange rate” is abbreviated as REER going forward in the publication). In fact, what Mr. Kuroda said was merely t ...
... circumstances” (Reuters), but my impression is that these were merely general theories Mr. Kuroda offered when stubbornly questioned by the opposition (Please note that “real effective exchange rate” is abbreviated as REER going forward in the publication). In fact, what Mr. Kuroda said was merely t ...
Responding to the Monetary Superpower
... to alter their own monetary policies, which could have magnified the Fed’s actions in creating global liquidity. This paper addresses the issue by showing how spillovers in central bank behavior occur in theoretical rational expectations models. It then establishes empirically how U.S. monetary poli ...
... to alter their own monetary policies, which could have magnified the Fed’s actions in creating global liquidity. This paper addresses the issue by showing how spillovers in central bank behavior occur in theoretical rational expectations models. It then establishes empirically how U.S. monetary poli ...
Title: The Political Economy of Monetary Institutions: An
... mobile capital) have each been held out as ways of increasing the credibility of ex ante policy announcements and, thereby, reducing the inflationary bias of monetary policy. The argument that these institutions are chosen as a response to the same economic problem, however, raises some issues about ...
... mobile capital) have each been held out as ways of increasing the credibility of ex ante policy announcements and, thereby, reducing the inflationary bias of monetary policy. The argument that these institutions are chosen as a response to the same economic problem, however, raises some issues about ...
Exchange Rate Regimes of Developing Countries: Global Context
... regimes. Another increasingly fashionable view is that countries should either let their exchange rates float freely, or peg them firmly to a stable currency, with some authors advancing the proposition that in many developing countries only currency boards or dollarization would be sensible choices ...
... regimes. Another increasingly fashionable view is that countries should either let their exchange rates float freely, or peg them firmly to a stable currency, with some authors advancing the proposition that in many developing countries only currency boards or dollarization would be sensible choices ...
the prerequisites for progress towards a single currency in the
... Although relatively little progress has been made in other regional organisations in Africa, there is nothing in the criteria set out for the MHP that could be interpreted as being damaging to the interests of non-member countries or as currently conflicting with the objectives of other regional gr ...
... Although relatively little progress has been made in other regional organisations in Africa, there is nothing in the criteria set out for the MHP that could be interpreted as being damaging to the interests of non-member countries or as currently conflicting with the objectives of other regional gr ...
Competitiveness and its leverage in a currency union
... Competitiveness is a notion, borrowed from microeconomics and competition among firms, that becomes rather complex and hazy when applied to a country. For this reason, a distinction is made below between “essential” and “apparent” competitiveness. “Essential” competitiveness is, to begin with, analo ...
... Competitiveness is a notion, borrowed from microeconomics and competition among firms, that becomes rather complex and hazy when applied to a country. For this reason, a distinction is made below between “essential” and “apparent” competitiveness. “Essential” competitiveness is, to begin with, analo ...
Predictability of Exchange Rates in Sri Lanka: A Test of
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
Money, prices and exchange rates in the long run
... run. By long run we mean a time horizon that is large enough for prices to fully adjust to their equilibrium levels. Thus, in the long run, the economy will be producing at full employment, and the classical dichotomy will hold: real variables, such as the real interest rate and output are determine ...
... run. By long run we mean a time horizon that is large enough for prices to fully adjust to their equilibrium levels. Thus, in the long run, the economy will be producing at full employment, and the classical dichotomy will hold: real variables, such as the real interest rate and output are determine ...
Trade, Prices, and the Exchange Rate with Heterogeneous
... of two countries, A and B, that trade varieties of a differentiated good with a constant elasticity of substitution between varieties. Suppose that initially country A imports four varieties from B. Suppose now that a depreciation of country A’s currency drives two of country B’s firms out of A. For ...
... of two countries, A and B, that trade varieties of a differentiated good with a constant elasticity of substitution between varieties. Suppose that initially country A imports four varieties from B. Suppose now that a depreciation of country A’s currency drives two of country B’s firms out of A. For ...
the role of the euro in sub-saharan Africa and in the CFA franc zone
... in SSA largely reflects the fact that the euro area is still the most important economic partner for SSA, although with a declining longer-term trend and varying by regions across the continent. In general, however, information on the use of the euro in SSA is rather scarce, with the exception of So ...
... in SSA largely reflects the fact that the euro area is still the most important economic partner for SSA, although with a declining longer-term trend and varying by regions across the continent. In general, however, information on the use of the euro in SSA is rather scarce, with the exception of So ...
Debt Redemption and Reserve Accumulation
... foreign, and debt in domestic, currency) is optimal when a country faces international shocks (as to the endowment of tradable goods). This is because the asset valuation effects occasioned by currency depreciation (or appreciation) act to absorb global shocks and smooth consumption. Debt and reserv ...
... foreign, and debt in domestic, currency) is optimal when a country faces international shocks (as to the endowment of tradable goods). This is because the asset valuation effects occasioned by currency depreciation (or appreciation) act to absorb global shocks and smooth consumption. Debt and reserv ...
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.