Accumulation of Foreign Exchange Reserves and Long Term Growth
... exchange rate. Thus, Middle East countries (mostly oil exporters) are the only major group of states in developing world with the exchange rate close to PPP (table 1). There is a number of explanations why equilibrium exchange rate in poorer countries is well below PPP rate (Froot, Rogoff, 1995). On ...
... exchange rate. Thus, Middle East countries (mostly oil exporters) are the only major group of states in developing world with the exchange rate close to PPP (table 1). There is a number of explanations why equilibrium exchange rate in poorer countries is well below PPP rate (Froot, Rogoff, 1995). On ...
The Transmission of Oil and Food Prices to Consumer Prices
... decline in the pass through from oil price inflation to consumer price inflation. The decrease is smaller than in industrial countries, probably due to wage price spirals or a less efficient use of energy. In contrast to oil prices, food prices did not receive much attention until the price hikes of ...
... decline in the pass through from oil price inflation to consumer price inflation. The decrease is smaller than in industrial countries, probably due to wage price spirals or a less efficient use of energy. In contrast to oil prices, food prices did not receive much attention until the price hikes of ...
price reform and pricing in the transition to market economy
... as exporters had no interest in selling for convertible currency. In two years manufacturers' costs in the national currency had risen to an extent when they could not be covered by revenues from sales in the international market. There appeared a paradox. A number of goods imported from other coun ...
... as exporters had no interest in selling for convertible currency. In two years manufacturers' costs in the national currency had risen to an extent when they could not be covered by revenues from sales in the international market. There appeared a paradox. A number of goods imported from other coun ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
... country. Each worker works in a particular firm in the country that produces intermediate tradable or nontradable goods. Therefore, there is a continuum of intermediate-goods firms of measure unity. Because we want to allow for some real rigidity in price setting, we introduce local labor markets fo ...
... country. Each worker works in a particular firm in the country that produces intermediate tradable or nontradable goods. Therefore, there is a continuum of intermediate-goods firms of measure unity. Because we want to allow for some real rigidity in price setting, we introduce local labor markets fo ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
... country. Each worker works in a particular firm in the country that produces intermediate tradable or nontradable goods. Therefore, there is a continuum of intermediate-goods firms of measure unity. Because we want to allow for some real rigidity in price setting, we introduce local labor markets fo ...
... country. Each worker works in a particular firm in the country that produces intermediate tradable or nontradable goods. Therefore, there is a continuum of intermediate-goods firms of measure unity. Because we want to allow for some real rigidity in price setting, we introduce local labor markets fo ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... Indian Stock market and Aggregate macroeconomic variables: Time Series Analysis Bhattacharya and Mukherjee (2006) examined the relationship between the Indian stock market and seven macroeconomic variables by employing the VAR framework and Toda and Yamamoto non-Granger causality technique for the ...
... Indian Stock market and Aggregate macroeconomic variables: Time Series Analysis Bhattacharya and Mukherjee (2006) examined the relationship between the Indian stock market and seven macroeconomic variables by employing the VAR framework and Toda and Yamamoto non-Granger causality technique for the ...
IFI_Ch11
... – Hedge can reduce the variance of future cash flows and thus may increase the firm’s present value by reducing the discount rate – Firms should focus on the main business they are in and take activities to minimize risks arising from interest rates, exchange rates, and other market variables – Mana ...
... – Hedge can reduce the variance of future cash flows and thus may increase the firm’s present value by reducing the discount rate – Firms should focus on the main business they are in and take activities to minimize risks arising from interest rates, exchange rates, and other market variables – Mana ...
Alternatives to inflation targeting in Mexico Luis Miguel Galindo Jaime Ros
... operational in the aftermath of the 1994/95 tequila crisis. Using VAR econometrics over the post-1980 time series data, we find that monetary policy of the Banco de México was asymmetric with respect to exchange rate movements –tightening when exchange rates depreciated, but not loosening when excha ...
... operational in the aftermath of the 1994/95 tequila crisis. Using VAR econometrics over the post-1980 time series data, we find that monetary policy of the Banco de México was asymmetric with respect to exchange rate movements –tightening when exchange rates depreciated, but not loosening when excha ...
Exchange Rate Regimes in East Asia – Recent Trends
... 3. Widening deviation among East Asian currencies 3.1. The deviation measurement Next we show deviation measurements of each East Asian currency from an average of the currencies to investigate widening deviation among them. Ogawa and Shimizu (2005) created an Asian Monetary Unit (AMU) as a regional ...
... 3. Widening deviation among East Asian currencies 3.1. The deviation measurement Next we show deviation measurements of each East Asian currency from an average of the currencies to investigate widening deviation among them. Ogawa and Shimizu (2005) created an Asian Monetary Unit (AMU) as a regional ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... international finance, this hypothesis is referred to as the trilemma or the impossible trinity (Aizenman, 2010). History has shown that different international financial systems have attempted to achieve various combinations of two out of the three policy goals. For example, the Gold Standard syste ...
... international finance, this hypothesis is referred to as the trilemma or the impossible trinity (Aizenman, 2010). History has shown that different international financial systems have attempted to achieve various combinations of two out of the three policy goals. For example, the Gold Standard syste ...
Fertility and the Real Exchange Rate
... and deteriorated current accounts using G-7 data and time-series techniques. The closest antecedents to our paper are by Andersson and Österholm. In their (2005) paper, Andersson and Österholm use Swedish data and time-series techniques and find that using the distribution of the Swedish population ...
... and deteriorated current accounts using G-7 data and time-series techniques. The closest antecedents to our paper are by Andersson and Österholm. In their (2005) paper, Andersson and Österholm use Swedish data and time-series techniques and find that using the distribution of the Swedish population ...
Is Mercosur an optimum currency area? An assessment using
... cannot be excluded from the potential currency area. Also, the β s all fell above 0.5 in absolute value, thus reinforcing the finding of cross-country dissimilarities. The estimates of the adjustment speed parameter also presented the PPP puzzle. And Argentina and Venezuela were found to be strongl ...
... cannot be excluded from the potential currency area. Also, the β s all fell above 0.5 in absolute value, thus reinforcing the finding of cross-country dissimilarities. The estimates of the adjustment speed parameter also presented the PPP puzzle. And Argentina and Venezuela were found to be strongl ...
Ireland in EMU: more shocks, less insulation? Patrick Honohan The World Bank
... both of which could be used to offset shocks. It should, however, be borne in mind that both variables could be subject to suboptimal policy, whether because of technical failings or because of inherent problems of time inconsistency. The particular choice of alternative currency also matters: if th ...
... both of which could be used to offset shocks. It should, however, be borne in mind that both variables could be subject to suboptimal policy, whether because of technical failings or because of inherent problems of time inconsistency. The particular choice of alternative currency also matters: if th ...
unit 1. companies……………………………………………………7
... A manufacturer (or manufacturing company) produces goods. The goods it makes are its products. When a manufacturing company expands, it usually increases production. A company which sells goods in large quantities (in bulk) is called a wholesale distributor (or wholesaler). A company or a person buy ...
... A manufacturer (or manufacturing company) produces goods. The goods it makes are its products. When a manufacturing company expands, it usually increases production. A company which sells goods in large quantities (in bulk) is called a wholesale distributor (or wholesaler). A company or a person buy ...
Pass-through and Exposure
... exchange rates should be governed by many of the same firm and industry characteristics that determine pricing behavior. This paper will develop models of firm and industry behavior that will be used to study these closely related phenomena together. It will also provide estimates of pass-through an ...
... exchange rates should be governed by many of the same firm and industry characteristics that determine pricing behavior. This paper will develop models of firm and industry behavior that will be used to study these closely related phenomena together. It will also provide estimates of pass-through an ...
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.