Etica & Politica / Ethics & Politics VIII, 2006, 2 www.units.it/etica
... changes. Because, in the ERE, there are no risks of default or of inflation or deflation: “There prevails in the whole system only one rate of interest. The rate of interest on loans coincides with the rate of originary interest as manifested in the ratio of prices of present and of future goods” (M ...
... changes. Because, in the ERE, there are no risks of default or of inflation or deflation: “There prevails in the whole system only one rate of interest. The rate of interest on loans coincides with the rate of originary interest as manifested in the ratio of prices of present and of future goods” (M ...
the choice of exchange rate regime
... Drawing upon that experience, the Handbooks are therefore targeted primarily at central bankers, or people in related agencies or ministries. The aim is to present particular topics which concern them in a concise, balanced and accessible manner, and in a practical context. This should, we hope, ena ...
... Drawing upon that experience, the Handbooks are therefore targeted primarily at central bankers, or people in related agencies or ministries. The aim is to present particular topics which concern them in a concise, balanced and accessible manner, and in a practical context. This should, we hope, ena ...
Analysis of the Effect of Inflation, Interest Rates, and Exchange
... The results on the effect of the inner weight between interest rates on GDP generate a path coefficient of -0.457 with a t-statistic of 9.076 which is greater than the value of determination of 1.96. This indicates that there is a significant negative effect between the interest rate of GDP or highe ...
... The results on the effect of the inner weight between interest rates on GDP generate a path coefficient of -0.457 with a t-statistic of 9.076 which is greater than the value of determination of 1.96. This indicates that there is a significant negative effect between the interest rate of GDP or highe ...
NBER WORKING PAPER SERIES FINANCIAL OPENNESS UNDER ALTERNATIVE REAL EXCHANGE RATE REGIMES
... policies as well as the real exchange rate as an allocative device. Problems occur when short-term market prices do not give the 'correct' long-run allocation signals for producers or consumers. ...
... policies as well as the real exchange rate as an allocative device. Problems occur when short-term market prices do not give the 'correct' long-run allocation signals for producers or consumers. ...
Examining exchange rate return factors before and after
... test the ability of the APT model to explain other relationships within the financial market, such as foreign exchange relationships. Also concluded by Chen, Roll & Ross, 1986 - "Asset prices should depend on their exposures to the state variable that describe the company". Thereto, research papers ...
... test the ability of the APT model to explain other relationships within the financial market, such as foreign exchange relationships. Also concluded by Chen, Roll & Ross, 1986 - "Asset prices should depend on their exposures to the state variable that describe the company". Thereto, research papers ...
International Monetary System - GW Links
... which exchange rates are set. The purpose of an exchange-rate system is to facilitate and promote international trade and finance. There have been three major exchange rate regimes from a historical perspective – fixed, floating, and managed exchange rates. A fixed-exchange-rate system is one where ...
... which exchange rates are set. The purpose of an exchange-rate system is to facilitate and promote international trade and finance. There have been three major exchange rate regimes from a historical perspective – fixed, floating, and managed exchange rates. A fixed-exchange-rate system is one where ...
Calculating the Unthinkable: Exchange Rate Effects of a Credit Event
... of the euro zone, such as Germany or Austria, would have a disastrous effect on the exchange rate. These are relatively large economies and/or exhibit very low probabilities of default. The inferred depreciation of the Euro possibly reflects an expected value of a currency basket which would succeed ...
... of the euro zone, such as Germany or Austria, would have a disastrous effect on the exchange rate. These are relatively large economies and/or exhibit very low probabilities of default. The inferred depreciation of the Euro possibly reflects an expected value of a currency basket which would succeed ...
NBER WORKING PAPER SERIES WHY IS THE DOLLAR SO HIGH? Martin Feldstein
... requires an increase in the U.S. saving rate or an equally large fall in business investment and residential construction. I believe that the adjustment will come primarily through a higher saving rate and that this will happen without any specific change in government policy. The household saving r ...
... requires an increase in the U.S. saving rate or an equally large fall in business investment and residential construction. I believe that the adjustment will come primarily through a higher saving rate and that this will happen without any specific change in government policy. The household saving r ...
NBER WORKING PAPER SERIES RESOLVING THE GLOBAL IMBALANCE: Martin S. Feldstein
... of American corporations on the stock market or bought entire businesses (like Daimler buying Chrysler and Deutsche Bank buying Bankers Trust). Private funds came to the United States in this way because they expected to receive returns that outweighed the risks of cross-border investments. The situ ...
... of American corporations on the stock market or bought entire businesses (like Daimler buying Chrysler and Deutsche Bank buying Bankers Trust). Private funds came to the United States in this way because they expected to receive returns that outweighed the risks of cross-border investments. The situ ...
Forecasting Interest Rates
... $50,000 and you anticipate next year’s income to be $60,000. The current interest rate is 5%. In the absence of financial markets, your consumption stream would be $50,000 this year and $60,000 next year. C = Y (Current Consumption = Current Income) C’ = Y’ (Future Consumption = Future Income) ...
... $50,000 and you anticipate next year’s income to be $60,000. The current interest rate is 5%. In the absence of financial markets, your consumption stream would be $50,000 this year and $60,000 next year. C = Y (Current Consumption = Current Income) C’ = Y’ (Future Consumption = Future Income) ...
Chapter 1
... • Over Time: Familiar approach, use price index to account for inflaCon over Cme. For example, compute real GDP by deflaCng nominal GDP by price index. • Across Countries: More difficult – Market exchange ...
... • Over Time: Familiar approach, use price index to account for inflaCon over Cme. For example, compute real GDP by deflaCng nominal GDP by price index. • Across Countries: More difficult – Market exchange ...
Exchange Rate Regime Choice in Historical Perspective
... transactions costs of exchanging different currencies into each other. By 1900, most nations had switched away from silver and bimetallic standards and adhered to the gold standard. Fiat money and floating was considered to be a radical departure from fiscal and monetary stability and was only to b ...
... transactions costs of exchanging different currencies into each other. By 1900, most nations had switched away from silver and bimetallic standards and adhered to the gold standard. Fiat money and floating was considered to be a radical departure from fiscal and monetary stability and was only to b ...
- CREN - Croatian Real Estate Newsletter
... have to understand that we are part of a globalized world. So, potential investors do not only look whether to invest in Croatia or Serbia, but locations are chosen from all across the world. If we do not comprehend this global context soon, the country might have serious problems. We have to realiz ...
... have to understand that we are part of a globalized world. So, potential investors do not only look whether to invest in Croatia or Serbia, but locations are chosen from all across the world. If we do not comprehend this global context soon, the country might have serious problems. We have to realiz ...
NBER WORKING PAPER SERIES THE INTERNATIONAL MONETARY SYSTEM: Jacob
... departure of the exchange rate from the zone initiates a review of the whole range of policies and if that (multilateral) review tilts the balance of power in the domestic debate toward fiscal responsibility, will target zones discipline fiscal policy. ...
... departure of the exchange rate from the zone initiates a review of the whole range of policies and if that (multilateral) review tilts the balance of power in the domestic debate toward fiscal responsibility, will target zones discipline fiscal policy. ...
International Finance
... In theory, the sum of the current and capital accounts should balance with the financial account. The sum of the balance of payments should be zero. When a country buys more goods and services than it sells (a deficit on the combined current and capital accounts), it must finance the difference by ...
... In theory, the sum of the current and capital accounts should balance with the financial account. The sum of the balance of payments should be zero. When a country buys more goods and services than it sells (a deficit on the combined current and capital accounts), it must finance the difference by ...
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.