English
... the trade-weighted average market share of an exporting country and the fraction of its exports invoiced in the exporter’s currency.4 The US and Germany have a significantly higher average market share than the other countries and also have the largest fractions invoiced in their own currency. Japan ...
... the trade-weighted average market share of an exporting country and the fraction of its exports invoiced in the exporter’s currency.4 The US and Germany have a significantly higher average market share than the other countries and also have the largest fractions invoiced in their own currency. Japan ...
1. Introduction DRAFT The New Zealand Treasury Model (NZTM) K L Szeto
... framework, the pass-through from the wages and import prices into domestic inflation is strong. In NZTM, the pass-through from labour market into domestic inflation has been weakened somewhat. The production block of NZTM has been econometrically estimated (Szeto 2001). Hence, the steady-state versi ...
... framework, the pass-through from the wages and import prices into domestic inflation is strong. In NZTM, the pass-through from labour market into domestic inflation has been weakened somewhat. The production block of NZTM has been econometrically estimated (Szeto 2001). Hence, the steady-state versi ...
Foreign Currency Derivatives
... Illustrate how foreign currency futures differ from forward contracts Analyze how foreign currency options are quoted and used for speculation purposes Consider the distinction between buying and writing options in terms of whether profits and losses are ...
... Illustrate how foreign currency futures differ from forward contracts Analyze how foreign currency options are quoted and used for speculation purposes Consider the distinction between buying and writing options in terms of whether profits and losses are ...
July 2016
... The wider fluctuation of the RMB exchange rate has led to a stage slowdown in the RMB internationalisation in the offshore market. Opening up the bond market now and allowing offshore institutions to invest in the interbank bond market will help the RMB evolve from an international settlement curren ...
... The wider fluctuation of the RMB exchange rate has led to a stage slowdown in the RMB internationalisation in the offshore market. Opening up the bond market now and allowing offshore institutions to invest in the interbank bond market will help the RMB evolve from an international settlement curren ...
Real Interest Rate
... As before, national saving is the source of the supply of loanable funds. Domestic investment and net capital outflow are the source of the demand for loanable funds. The equilibrium real interest rate(r1) brings the quantity of loanable funds supplied and the quantity of loanable funds demanded int ...
... As before, national saving is the source of the supply of loanable funds. Domestic investment and net capital outflow are the source of the demand for loanable funds. The equilibrium real interest rate(r1) brings the quantity of loanable funds supplied and the quantity of loanable funds demanded int ...
NBER WORKING PAPERS SERIES STABILIZATION AND POLICIES IN CENTRAL AND EASTERN EUROPE:
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
NEW ZEALAND: THE LAST BASTION OF TEXTBOOK OPEN
... consumer expenditure in which the estimated short-run interest elasticity is 0.000. Household purchases, and therefore indirect tax revenue, are independent of the interest rate in the short run. Moreover, shocks to interest rates have no significant impact on GDP (Buckle et al., 2007), so the ratio ...
... consumer expenditure in which the estimated short-run interest elasticity is 0.000. Household purchases, and therefore indirect tax revenue, are independent of the interest rate in the short run. Moreover, shocks to interest rates have no significant impact on GDP (Buckle et al., 2007), so the ratio ...
Weekly FX Insight - Citibank Hong Kong
... Since weak EUR may be one of the major ECB's objectives and the ECB may implement additional easing, Citi analysts expect the EUR may consolidate at 1.15 for the coming 0-3 months and may drop to 1.10 in the medium and long term and parity may be approached in the coming two years. GBP could be supp ...
... Since weak EUR may be one of the major ECB's objectives and the ECB may implement additional easing, Citi analysts expect the EUR may consolidate at 1.15 for the coming 0-3 months and may drop to 1.10 in the medium and long term and parity may be approached in the coming two years. GBP could be supp ...
Financial globalization and exchange rates
... an exchange rate depreciation will depend on gross foreign asset and liability holdings (in addition to the net position); the currency composition of both sides of the international balance sheet; and the nature of the co-movement between exchange rate changes and other financial returns.2 These fa ...
... an exchange rate depreciation will depend on gross foreign asset and liability holdings (in addition to the net position); the currency composition of both sides of the international balance sheet; and the nature of the co-movement between exchange rate changes and other financial returns.2 These fa ...
Trade Integration, Competition, and the Decline in
... the responsiveness of import prices to exchange-rate movements. To the extent that exchangerate pass-through is high, exchange-rate movements will be accompanied by similar changes in import prices, inducing relatively large movements in trade flows and consumer prices. As a consequence, pass-throug ...
... the responsiveness of import prices to exchange-rate movements. To the extent that exchangerate pass-through is high, exchange-rate movements will be accompanied by similar changes in import prices, inducing relatively large movements in trade flows and consumer prices. As a consequence, pass-throug ...
G97/4 Current account and exchange rate behaviour economy
... expected market-clearing levels. As unexpected demand and supply shocks will make actual market realisations to be different from expected values, the idea is that market participants find it optimal to pre-set prices at expected values and then satisfy demands that materialise at those prices. One ...
... expected market-clearing levels. As unexpected demand and supply shocks will make actual market realisations to be different from expected values, the idea is that market participants find it optimal to pre-set prices at expected values and then satisfy demands that materialise at those prices. One ...
Output and Exchange Rate in the Short Run
... Disposable income (Yd): income from production (Y) minus taxes (T). More Yd means more C, but C typically increases less than the amount that Yd increases because part of Yd is saved. Real interest rates may influence the amount of saving and thereby C, but we assume that they are relatively u ...
... Disposable income (Yd): income from production (Y) minus taxes (T). More Yd means more C, but C typically increases less than the amount that Yd increases because part of Yd is saved. Real interest rates may influence the amount of saving and thereby C, but we assume that they are relatively u ...
EMU and FDI flows within EU selected countries.
... rate, regardless of the type of the shock taking place in an economy. In case of monetary shocks, the production function implies that shocks will reduce expected profits under a flexible exchange rate regime, while fixed exchange rates are able to isolate the level of employment and production from ...
... rate, regardless of the type of the shock taking place in an economy. In case of monetary shocks, the production function implies that shocks will reduce expected profits under a flexible exchange rate regime, while fixed exchange rates are able to isolate the level of employment and production from ...
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... in both Japan and W. Germany rose steadily from its previously low levels (ca. 0.6-0.7) to almost unity by 1973, in line with the depreciation of the dollar. The complex consequences of the oil embargo have since given rise to changes in the location factor in which no single trend dominates. To the ...
... in both Japan and W. Germany rose steadily from its previously low levels (ca. 0.6-0.7) to almost unity by 1973, in line with the depreciation of the dollar. The complex consequences of the oil embargo have since given rise to changes in the location factor in which no single trend dominates. To the ...
Purchasing power parity
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Purchasing power parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies.Theories that invoke purchasing power parity assume that in some circumstances (for example, as a long-run tendency) it would cost exactly the same number of, say, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods.The concept of purchasing power parity allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries' currencies. Using that PPP rate for hypothetical currency conversions, a given amount of one currency thus has the same purchasing power whether used directly to purchase a market basket of goods or used to convert at the PPP rate to the other currency and then purchase the market basket using that currency. Observed deviations of the exchange rate from purchasing power parity are measured by deviations of the real exchange rate from its PPP value of 1.PPP exchange rates help to minimize misleading international comparisons that can arise with the use of market exchange rates. For example, suppose that two countries produce the same physical amounts of goods as each other in each of two different years. Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country's currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country's GDP is converted into the other country's currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur.