S0212088_en.pdf
... have being discussed more recently. One is creating foreign demand for assets denominated in the national currency inspired in the Australia and New Zealand cases. The degree of international financial integration of these two OECD countries is not comparable with a typical emerging economy. Among o ...
... have being discussed more recently. One is creating foreign demand for assets denominated in the national currency inspired in the Australia and New Zealand cases. The degree of international financial integration of these two OECD countries is not comparable with a typical emerging economy. Among o ...
Causes of Capital Inflows and Policy Responses to Them
... Financial indicators that may help policymakers differentiate between inflows caused by a shift in the money demand function and those driven by exogenous factors include asset prices, monetary and credit aggregates, balance of payments data, and key international variables, such as interest rates ( ...
... Financial indicators that may help policymakers differentiate between inflows caused by a shift in the money demand function and those driven by exogenous factors include asset prices, monetary and credit aggregates, balance of payments data, and key international variables, such as interest rates ( ...
H o w N e w ... m a c r o e c o n o...
... This is a continuation of a series of articles on what the costs and benefits might be if New Zealand wer e to join a larger currency area, say if it were to enter into currency union with Australia, or to ‘dollarise’. The back-drop is public debate, in New Zealand and in some other countries, on cu ...
... This is a continuation of a series of articles on what the costs and benefits might be if New Zealand wer e to join a larger currency area, say if it were to enter into currency union with Australia, or to ‘dollarise’. The back-drop is public debate, in New Zealand and in some other countries, on cu ...
Inflation
... is that the quality and features of a product change over time. • When the price of a good or service goes up because of an improvement in quality, the BLS does not count that price increase as part of the inflation rate. – Rapid technological change makes the job of measuring inflation especially d ...
... is that the quality and features of a product change over time. • When the price of a good or service goes up because of an improvement in quality, the BLS does not count that price increase as part of the inflation rate. – Rapid technological change makes the job of measuring inflation especially d ...
Response of Output to Macroeconomic Policies and Conditions in
... exchange rate policy, convergence, and other macroeconomic relations for Romania and its neighboring countries. Radulescu (2003) reviewed Romania’s fiscal policy in the 1990s and found that Romania had incurred very large quasi-fiscal deficits, followed an unsustainable fiscal policy particularly up ...
... exchange rate policy, convergence, and other macroeconomic relations for Romania and its neighboring countries. Radulescu (2003) reviewed Romania’s fiscal policy in the 1990s and found that Romania had incurred very large quasi-fiscal deficits, followed an unsustainable fiscal policy particularly up ...
1 Is a Change in the Renminbi Exchange Rate in China`s Interest?1
... and “surprisingly positive” evidence of integration with the United States. Decomposing the real interest differential into the uncovered interest differential and the relative purchasing power parity differential, they find that a downward trend in the former is mainly responsible for the shrinkin ...
... and “surprisingly positive” evidence of integration with the United States. Decomposing the real interest differential into the uncovered interest differential and the relative purchasing power parity differential, they find that a downward trend in the former is mainly responsible for the shrinkin ...
Public Choice Theory and the Transition Market Economy in Eastern
... menting these policies, leaders sought to restore confidence in and value to the domestic currencies.53 Implicit in many of these objectives was the necessity to "harden" the "soft" budget constraint and to dismantle staterun monopolies.3 4 Currency stabilization and price reforms would allow partic ...
... menting these policies, leaders sought to restore confidence in and value to the domestic currencies.53 Implicit in many of these objectives was the necessity to "harden" the "soft" budget constraint and to dismantle staterun monopolies.3 4 Currency stabilization and price reforms would allow partic ...
The anatomy of current account reversals
... over the period 1970-2010. More specifically, for an observation to qualify as the starting point of a reversal, the following conditions have to be met: (1) the initial current account deficit exceeds 4% of GDP; and (2) the average current account deficit over the next three years is reduced by at ...
... over the period 1970-2010. More specifically, for an observation to qualify as the starting point of a reversal, the following conditions have to be met: (1) the initial current account deficit exceeds 4% of GDP; and (2) the average current account deficit over the next three years is reduced by at ...
Australian Dollar Outlook
... Other commodities, such as oil, also face uncertainty. The outlook for oil prices will depend on whether OPEC will successfully curb output. However, US shale producers have the ability to ramp up output particularly if prices lift from current levels. Higher commodity prices are likely providing th ...
... Other commodities, such as oil, also face uncertainty. The outlook for oil prices will depend on whether OPEC will successfully curb output. However, US shale producers have the ability to ramp up output particularly if prices lift from current levels. Higher commodity prices are likely providing th ...
The Rise of German Protectionism in the 1870s: A Macroeconomic
... scientists and economists have proposed answers to this question over the years. The leading explanations concentrate on interest groups within Germany. Using trade-theoretic models these interest groups are defined along either sectoral or factoral lines. The focus in this line of research is usual ...
... scientists and economists have proposed answers to this question over the years. The leading explanations concentrate on interest groups within Germany. Using trade-theoretic models these interest groups are defined along either sectoral or factoral lines. The focus in this line of research is usual ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... economic reform, based on previous experience with relative speeds of adjustment in different markets and spheres of economic behavior. A distinction is drawn between stabilization of prices and exchange rates, which can be achieved fairly rapidly, and the responses of production structure, investme ...
... economic reform, based on previous experience with relative speeds of adjustment in different markets and spheres of economic behavior. A distinction is drawn between stabilization of prices and exchange rates, which can be achieved fairly rapidly, and the responses of production structure, investme ...
Lecture Notes
... For the investor the financial institution can offer protection against his bet turning sour. Having invested $50 mm in oil contracts the prospect of oil prices falling by the time he liquidates his investment is not a welcome prospect. But the investor can pay a premium (the value of the derivative ...
... For the investor the financial institution can offer protection against his bet turning sour. Having invested $50 mm in oil contracts the prospect of oil prices falling by the time he liquidates his investment is not a welcome prospect. But the investor can pay a premium (the value of the derivative ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Exchange Rates and International Macroeconomics
... (with sticky prices) output. Since these models are of the incomeexpenditure variety with no explicit consideration of wealth effects, the above implication can more generally be stated by saying that a short-run appreciation (depreciation) of the real exchange rate will be expansionary (contraction ...
... (with sticky prices) output. Since these models are of the incomeexpenditure variety with no explicit consideration of wealth effects, the above implication can more generally be stated by saying that a short-run appreciation (depreciation) of the real exchange rate will be expansionary (contraction ...
Inflation, Tax Rules, and the Prices of Land and Gold
... But before this equation is established, the relative prices of land and of the produced good must change in order to preserve the equality of the net-of-tax real yields. Since inflation does not alter the pretax real yields, the relative prices of the two assets in the new equilibrium depends on th ...
... But before this equation is established, the relative prices of land and of the produced good must change in order to preserve the equality of the net-of-tax real yields. Since inflation does not alter the pretax real yields, the relative prices of the two assets in the new equilibrium depends on th ...
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... Example: You are the owner of FU YANG FLYING EAGLE DUMPLINGS and have sold $100,000 worth of rice dumplings (zongzi) to a Chinese restaurant in San Francisco. You will be paid $100,000 in 90 days. Assume that the current spot exchange rate is 8.2767 yuan to the dollar. There is some risk that you ma ...
... Example: You are the owner of FU YANG FLYING EAGLE DUMPLINGS and have sold $100,000 worth of rice dumplings (zongzi) to a Chinese restaurant in San Francisco. You will be paid $100,000 in 90 days. Assume that the current spot exchange rate is 8.2767 yuan to the dollar. There is some risk that you ma ...
ch09
... The Bretton Woods System • The Bretton Woods System broke down in the early 1970s – the U.S. found itself with a large trade deficit and sought to devalue its currency ...
... The Bretton Woods System • The Bretton Woods System broke down in the early 1970s – the U.S. found itself with a large trade deficit and sought to devalue its currency ...
Chapter 16 Output and the Exchange Rate: the Short-Run
... • The CA in the DD-AA model has assumed that nominal exchange rate changes cause proportional changes in the real exchange rates in the short run. • Degree of Pass-through – It is the percentage by which import prices rise when the home currency depreciates by 1%. – In the DD-AA model, the degree of ...
... • The CA in the DD-AA model has assumed that nominal exchange rate changes cause proportional changes in the real exchange rates in the short run. • Degree of Pass-through – It is the percentage by which import prices rise when the home currency depreciates by 1%. – In the DD-AA model, the degree of ...
NBER WORKING PAPER SERIES THE EFFECT OF INFLATION ON THE PRICES
... The paper begins in section 1 with a simple model of the price of land and its relation to inflation. . This model assumes that land and bonds are perfect substitutes in investors' portfolios. types of assets must therefore be equal. ...
... The paper begins in section 1 with a simple model of the price of land and its relation to inflation. . This model assumes that land and bonds are perfect substitutes in investors' portfolios. types of assets must therefore be equal. ...
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.