NBER WORKING PAPER SERIES SMOOTH LANDING OR CRASH? MODEL-BASED SCENARIOS OF
... goods markets and pricing to market, incomplete pass-through and ‘disconnected’exchange rates, home bias in goods and in assets, and signi…cant trade costs are all emblematic of an international economy still some ways o¤ from an idealized single, global market.9 These real-world features and fricti ...
... goods markets and pricing to market, incomplete pass-through and ‘disconnected’exchange rates, home bias in goods and in assets, and signi…cant trade costs are all emblematic of an international economy still some ways o¤ from an idealized single, global market.9 These real-world features and fricti ...
DISCUSSION PAPERS 02-23 High Inflation, Hyperinflation and
... supply was the cause of inflation and controlled by the central bank authorities, the results suggested that central banks had expanded money stock in a nonoptimal manner. This result was challenged by Sargent (1977) who argued that the non-optimality finding was a result of Cagan assuming adaptive ...
... supply was the cause of inflation and controlled by the central bank authorities, the results suggested that central banks had expanded money stock in a nonoptimal manner. This result was challenged by Sargent (1977) who argued that the non-optimality finding was a result of Cagan assuming adaptive ...
What is an Interest Rate Risk?
... underlying cash market while helping in evolving a better term structure as well as in price discovery. Interest rate futures can be used for three purposes: Hedging against interest rate risks, Arbitraging being a simultaneous buying and selling of futures taking advantage of a temporary price diff ...
... underlying cash market while helping in evolving a better term structure as well as in price discovery. Interest rate futures can be used for three purposes: Hedging against interest rate risks, Arbitraging being a simultaneous buying and selling of futures taking advantage of a temporary price diff ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... German deutsche mark show insignificant effects of the German budget position, so I will stick with a simple model of the U.S. economy here. 1.2 Short-Run Equilibrium in a Fundamentals Framework A good start for my discussion of the causes of the movements of the dollar in the 1980s is exposition of ...
... German deutsche mark show insignificant effects of the German budget position, so I will stick with a simple model of the U.S. economy here. 1.2 Short-Run Equilibrium in a Fundamentals Framework A good start for my discussion of the causes of the movements of the dollar in the 1980s is exposition of ...
The Fluctuating Canadian Dollar
... Centre for Policy Alternatives, for example, emphasized that expectations of strong U.S. economic growth led the U.S. Federal Reserve to raise its interest rate target in December 2015, the first time that it had done so in almost a decade. BMO Financial Group noted that the Bank of Canada reduced i ...
... Centre for Policy Alternatives, for example, emphasized that expectations of strong U.S. economic growth led the U.S. Federal Reserve to raise its interest rate target in December 2015, the first time that it had done so in almost a decade. BMO Financial Group noted that the Bank of Canada reduced i ...
empirical studies of nigeria`s foreign exchange parallel market ii
... "the most significant factor in the movement of the nominal exchange rate in Nigeria is speculation by dealers". Ogiogio (1994) regressed exchange rates (using OLS) on the ratio of inflows to outflows of foreign currencies. The intuition is that the relative flow of currencies summarizes the supply ...
... "the most significant factor in the movement of the nominal exchange rate in Nigeria is speculation by dealers". Ogiogio (1994) regressed exchange rates (using OLS) on the ratio of inflows to outflows of foreign currencies. The intuition is that the relative flow of currencies summarizes the supply ...
NBER WORKING PAPER SERIES TARIFFS, TERMS OF TRADE, AND INTERTEMPORAL OPTIMIZING MODEL
... welfare effects of alternative policy packages dealing with economic ...
... welfare effects of alternative policy packages dealing with economic ...
Currency Misalignments and Growth: A New Look using ∗ Sophie Béreau
... deficits with China (especially the United States and the European union). Among empirical studies dealing with the misalignment-growth nexus, many papers find a negative link between currency misalignments and economic growth in developing countries. This is the case of Ghura and Grennes (1993) sho ...
... deficits with China (especially the United States and the European union). Among empirical studies dealing with the misalignment-growth nexus, many papers find a negative link between currency misalignments and economic growth in developing countries. This is the case of Ghura and Grennes (1993) sho ...
MCF Outline 6
... – Right but not the obligation to sell or buy a financial instrument at a specified price and volume up to the expiration date – Currency Call Option: right to buy a specified amount of a currency at a specific price within a specific period of time – Currency Put Option: right to sell a currency – ...
... – Right but not the obligation to sell or buy a financial instrument at a specified price and volume up to the expiration date – Currency Call Option: right to buy a specified amount of a currency at a specific price within a specific period of time – Currency Put Option: right to sell a currency – ...
A small scale macroeconomic Model for Venezuela
... future inflation than by past inflation. This may be a feature in high and moderate inflation countries, such as Venezuela. Inflation is also positively affected by the output gap with a lag of four quarters, and by the real exchange rate with two lags and three lags. We also attempted to estimate a ...
... future inflation than by past inflation. This may be a feature in high and moderate inflation countries, such as Venezuela. Inflation is also positively affected by the output gap with a lag of four quarters, and by the real exchange rate with two lags and three lags. We also attempted to estimate a ...
Online Appendix with Static Model
... Under balanced trade no other scal instrument is needed, while with perfect international risk sharing adjustments in consumption and income taxes are also required. An expansion in the home money supply may or may not be needed in addition to scal policy, however this adjustment happens automatic ...
... Under balanced trade no other scal instrument is needed, while with perfect international risk sharing adjustments in consumption and income taxes are also required. An expansion in the home money supply may or may not be needed in addition to scal policy, however this adjustment happens automatic ...
china`s foreign exchange black market and exchange flight
... The black market exchange rate usually includes a premium that reflects pent-up excess demand pressures that foreign exchange restrictions are intended to contain. It is the foreign exchange restrictions that lead to the emergence of the black market, whereas other administrative measures, such as i ...
... The black market exchange rate usually includes a premium that reflects pent-up excess demand pressures that foreign exchange restrictions are intended to contain. It is the foreign exchange restrictions that lead to the emergence of the black market, whereas other administrative measures, such as i ...
MONETARY POLICY REPORT 2004-IV
... this period. Within this framework, increases in private consumption expenditures remained limited to certain goods groups and they were not reflected to a wider range of consumers in a balanced manner. The ongoing low level of non-durable expenditures point to the demand gap in the economy. Besides ...
... this period. Within this framework, increases in private consumption expenditures remained limited to certain goods groups and they were not reflected to a wider range of consumers in a balanced manner. The ongoing low level of non-durable expenditures point to the demand gap in the economy. Besides ...
Monetary Policy and the Exchange Rate in
... auctions are triggered whenever the nominal exchange rate deviates from its 20-day average by more than a specified percentage. In recent years this mechanism was suspended when the Central Bank adopted measures to correct an overvaluation of the currency. It has been inactive since October 2009. Ex ...
... auctions are triggered whenever the nominal exchange rate deviates from its 20-day average by more than a specified percentage. In recent years this mechanism was suspended when the Central Bank adopted measures to correct an overvaluation of the currency. It has been inactive since October 2009. Ex ...
Sources of Inflation in Developing Countries: Abstract
... Chhibber and Safik (1990), and Sowa and Kwakye (1991) investigated the sources of inflation in Ghana. Their findings showed that money supply is the main determinant of inflation rate in Ghana, while variables such as the official nominal exchange rate and real wages were found to be insignificant. ...
... Chhibber and Safik (1990), and Sowa and Kwakye (1991) investigated the sources of inflation in Ghana. Their findings showed that money supply is the main determinant of inflation rate in Ghana, while variables such as the official nominal exchange rate and real wages were found to be insignificant. ...
DEGREE OF OPENNESS,1905-2000
... Like in most countries in Latin-America, Colombian economic development during the twentieth century was closely related to what happened with its foreign trade. The large cycles in the terms of trade and in the volume of exports that were observed in the country coincided with the cycles in economi ...
... Like in most countries in Latin-America, Colombian economic development during the twentieth century was closely related to what happened with its foreign trade. The large cycles in the terms of trade and in the volume of exports that were observed in the country coincided with the cycles in economi ...
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.