16 - UiO
... specialize according to comparative advantages. dispose of excess supplies of goods that they do not want. share equally in the potential gains from trade. leave the exchange feeling that they have been treated fairly. specialize according to absolute advantage. ...
... specialize according to comparative advantages. dispose of excess supplies of goods that they do not want. share equally in the potential gains from trade. leave the exchange feeling that they have been treated fairly. specialize according to absolute advantage. ...
ECONOMIC POLICY AND THE REAL EXCHANGE RATE: RUSSIA
... will fall rather than rise. If one expects the price of the dollar to fall in nominal terms, it is better simply to hold rubles rather than buy dollars. If one expects it to fall in real terms the relevant strategy is to protect one’s wealth by holding it in real assets (even groceries or coal) rath ...
... will fall rather than rise. If one expects the price of the dollar to fall in nominal terms, it is better simply to hold rubles rather than buy dollars. If one expects it to fall in real terms the relevant strategy is to protect one’s wealth by holding it in real assets (even groceries or coal) rath ...
External Constraints on Monetary Policy and The Financial Accelerator
... that have apparently led to signi¯cant contractions in economic activity. One feature of these crises, that pertains in particular to open economies, is the strong connection with a ¯xed exchange rate regime. In a study covering the 1970s through the 1990s, Kaminsky and Reinhart [18] document the st ...
... that have apparently led to signi¯cant contractions in economic activity. One feature of these crises, that pertains in particular to open economies, is the strong connection with a ¯xed exchange rate regime. In a study covering the 1970s through the 1990s, Kaminsky and Reinhart [18] document the st ...
Monetary Policy under Alternative Exchange-Rate Regimes" Simulations with a Multi-Country Model
... which determines short- and long-term interest rates together with monetary aggregates. The most important instruments of monetary and fiscal policy -reserve requirements, the discount rate, central bank holdings of domestic and foreign assets, and real government expenditures -- are integrated into ...
... which determines short- and long-term interest rates together with monetary aggregates. The most important instruments of monetary and fiscal policy -reserve requirements, the discount rate, central bank holdings of domestic and foreign assets, and real government expenditures -- are integrated into ...
Preview Sample 1
... 2. Carefully explain some of the similar problems faced by otherwise diverse countries in Africa, Asia, and Latin America. Answer: This calls for students to summarize some of the main points discussed in the chapter. 3. What are some of the main ways in which the economies of developing countries d ...
... 2. Carefully explain some of the similar problems faced by otherwise diverse countries in Africa, Asia, and Latin America. Answer: This calls for students to summarize some of the main points discussed in the chapter. 3. What are some of the main ways in which the economies of developing countries d ...
Derivatives-chapter1
... An option is the right to either buy or sell something at a set price, within a set period of time ...
... An option is the right to either buy or sell something at a set price, within a set period of time ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL PERSPECTIVES
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
... relationship between the level of the real exthange rate that clears the balance of payments at a particular point in time and the magnitude of the current account when that real exchange rate is at that same level at some other point in time. ...
PDF Download
... rouble when making purchases in Lithuania. The purpose of the talonas was to reduce goods shortages by making it harder for people from the other countries emerging from the former Soviet Union to purchase goods in Lithuania. A new version of the talonas was introduced in May 1992 and the new versio ...
... rouble when making purchases in Lithuania. The purpose of the talonas was to reduce goods shortages by making it harder for people from the other countries emerging from the former Soviet Union to purchase goods in Lithuania. A new version of the talonas was introduced in May 1992 and the new versio ...
NBER WORKING PAPER SERIES THE LOGIC OF CURRENCY CRISES Maurice Obstfeld
... analysis to show how the possibility that a government will Introduce capital controls in a crisis can generate self—fulfilling attacks. These papers do not, however, derive official responses from models of optimal government behavior, as I do here. Probably the earliest attempt ...
... analysis to show how the possibility that a government will Introduce capital controls in a crisis can generate self—fulfilling attacks. These papers do not, however, derive official responses from models of optimal government behavior, as I do here. Probably the earliest attempt ...
A fundamental divide in economics, between those who see capitalism... system and those who celebrate the "invisible hand" of the... THE THEORY OF MONEY AND WORLD CAPITALISM
... first term being negative owing to elastic expectations, or due to r being a function of the price fall, or both)3. All these however are capital account considerations. A fall in currency value, it may be thought, would be self-arresting owing to its current account impact. This however is not the ...
... first term being negative owing to elastic expectations, or due to r being a function of the price fall, or both)3. All these however are capital account considerations. A fall in currency value, it may be thought, would be self-arresting owing to its current account impact. This however is not the ...
Sample
... interesting if you ask them to come up with the list and then fill in any items they have missed, as noted in the discussion topic section below. If you did not already discuss interesting statistics (or covered those very briefly) you could do this here as part of the discussion of common character ...
... interesting if you ask them to come up with the list and then fill in any items they have missed, as noted in the discussion topic section below. If you did not already discuss interesting statistics (or covered those very briefly) you could do this here as part of the discussion of common character ...
InflationPowerPoint
... Buyers switch from one good to another when their relative prices diverge. ...
... Buyers switch from one good to another when their relative prices diverge. ...
Balance of Payments and Exchange Rates
... • GDP is the value added ________ - ignoring who owns the factors of production - i.e. income generated by activity within the border • GNP is the value added by __________ owned factors of production - i.e. total income received by domestic ...
... • GDP is the value added ________ - ignoring who owns the factors of production - i.e. income generated by activity within the border • GNP is the value added by __________ owned factors of production - i.e. total income received by domestic ...
Global Pricing
... Should prices differ with market segment? What pricing options are available if the firm’s costs increase or decrease? Is demand in the international market elastic or inelastic? Are the firm’s prices likely to be viewed by the host-country government as reasonable or exploitative? Do the foreign co ...
... Should prices differ with market segment? What pricing options are available if the firm’s costs increase or decrease? Is demand in the international market elastic or inelastic? Are the firm’s prices likely to be viewed by the host-country government as reasonable or exploitative? Do the foreign co ...
NBER WORKING PAPER SERIES WHY CLASHES BETWEEN INTERNAL AND EXTERNAL STABILITY GOALS END
... Woods or the EMS, crises are an endemic part of the system. They arise because of unexpected shocks that may make unsustainable policies that were previously compatible with existing exchange rate arrangements. Market participants understand this tension and precipitate an attack on a currency by se ...
... Woods or the EMS, crises are an endemic part of the system. They arise because of unexpected shocks that may make unsustainable policies that were previously compatible with existing exchange rate arrangements. Market participants understand this tension and precipitate an attack on a currency by se ...
Daily FX & Market Commentary
... This document is based on information provided by Citigroup Investment Research, Citigroup Global Markets, Citigroup Global Wealth Management and Citigroup Alternative Investments. It is provided for your information only. It is not intended as an offer or solicitation for the purchase or sale of an ...
... This document is based on information provided by Citigroup Investment Research, Citigroup Global Markets, Citigroup Global Wealth Management and Citigroup Alternative Investments. It is provided for your information only. It is not intended as an offer or solicitation for the purchase or sale of an ...
2 Micro-foundations of Macroeconomic Development T
... The concept of PPP catch-up inflation arises from the empirical observation that as countries grow in terms of per capita GDP the required PPP adjustment appears to become lower (see Figure). Countries with per capita GDPs of around US$ 850 to 1200 in 2009, like India, Pakistan, Nicaragua, and Vietn ...
... The concept of PPP catch-up inflation arises from the empirical observation that as countries grow in terms of per capita GDP the required PPP adjustment appears to become lower (see Figure). Countries with per capita GDPs of around US$ 850 to 1200 in 2009, like India, Pakistan, Nicaragua, and Vietn ...
Estonia: A Macroeconomic Enquiry
... worrying that the kroon would be devalued on a regular basis and that they would lose money when converting their profits from Estonian investments to their domestic currencies. In addition, a fixed nominal exchange rate does not fix the real exchange rate, which is still subject to fluctuations. Th ...
... worrying that the kroon would be devalued on a regular basis and that they would lose money when converting their profits from Estonian investments to their domestic currencies. In addition, a fixed nominal exchange rate does not fix the real exchange rate, which is still subject to fluctuations. Th ...
QUIZ 3 14.02 Principles of Macroeconomics May 19, 2005 I. True/False (30 points)
... depressing net exports and output (so the IS and LM both shift back to their initial medium run positions). So when the economy is at the new medium run equilibrium, prices are higher, output is back to the natural level, the real exchange rate is appreciated even further (relative to the short run ...
... depressing net exports and output (so the IS and LM both shift back to their initial medium run positions). So when the economy is at the new medium run equilibrium, prices are higher, output is back to the natural level, the real exchange rate is appreciated even further (relative to the short run ...
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.