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Time Series vs. Panel Estimates
Time Series vs. Panel Estimates

... Our panel consists of the US and 16 of its major trading partners: Australia, Belgium, Canada, China, France, Germany, Ireland, Italy, Japan, Korea, Mexico, Netherlands, Spain, Sweden, Switzerland and the UK. These countries either make up a a significant part of US trade, or are an issuer of a majo ...
Exploring the Relationship between Population Age Structure and Real Exchange Rate in OECD Countries
Exploring the Relationship between Population Age Structure and Real Exchange Rate in OECD Countries

... goods sector and even as a measure of the standard of living in one country relative to another (Dwyer and Lowe, 1993). It influences consumption and resource allocation decisions between tradable and non-tradable goods, and also represents a country‟s comparative advantage. Different real (i.e. ter ...
Currency Mismatch: New Database and Indicators for Latin America
Currency Mismatch: New Database and Indicators for Latin America

... I employ CEMLA’s database to construct two currency mismatch indicators, each of which should be used for different purposes. The first indicator measures the average degree of currency mismatch, regardless of the type of foreign currency risk involved. The second indicator distinguishes between the ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATE TARGETING AND MACROECONOMIC INSTABILITY Martín Uribe
NBER WORKING PAPER SERIES REAL EXCHANGE RATE TARGETING AND MACROECONOMIC INSTABILITY Martín Uribe

... key to understanding the intuition behind our indeterminacy result lies in the relationship between the current level of the real exchange rate and expected devaluations implied by the model. In a small open economy, the nominal interest rate is, loosely speaking, an increasing function of the expec ...
Exchange Rates and Monetary Policy Uncertainty
Exchange Rates and Monetary Policy Uncertainty

... constrained financiers with short investment horizons intermediate global demand for currencies. These financiers can actively engage in currency trading, but have a downward-sloping demand for risk taking, which limits their risk-bearing capacity. Such a limit can arise for a variety of reasons, su ...
Empirical Exchange Rate Models of the Nineties
Empirical Exchange Rate Models of the Nineties

... literature are by Meese and Rogoff (1983, 1988), who examined monetary and portfolio balance models. Succeeding works by Mark (1995) and Chinn and Meese (1995) focused on similar models. In this paper we re-assess exchange rate prediction using a wider set of models that have been proposed in the la ...
EditedxThesis
EditedxThesis

... is complete government intervention in the foreign exchange market. The exchange rate is fixed at a given equilibrium level; and if the market forces of demand and supply tend to upset this equilibrium, the central bank would intervene and see that the fixed exchange rate is maintained (IBID). This ...
Some Further Evidence on Exchange
Some Further Evidence on Exchange

... The arguments, however, are not all on one side. Consider the following factors, which suggest that exchange-rate volatility can increase trade. (i) Exporters may gain knowledge through trade that might help them anticipate future exchange-rate movements better than can the average participant in t ...
Chapter 15
Chapter 15

... PowerPoint® Slides t/a Principles of Macroeconomics by Bernanke, Olekalns and Frank ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... end of the contract period. As Gray (1976) has shown, analogous modeling can be applied to the workings of a labor market characterized by the existence of a strong union. In that case the contract length and the indexing parameter are the important contract characteristics. In merging these two str ...
Exchange Rate Policies in Arab Countries
Exchange Rate Policies in Arab Countries

... The exchange rate matters since it is an important price in the economy. Changes can cause substantial reallocation of resources and production between the tradeable and non-tradeable sectors of the economy. But rarely is the exchange rate seen for what it is: a relative price that, like any other, ...
Macroeconomic Implications Of Capital Inflows In India :
Macroeconomic Implications Of Capital Inflows In India :

... The study attemts to analyse the behaviour of some macroeconomic variables in response to Total Capital Inflows in India using quarterly data for the period 1994-2007. The paper consist two sections, in first section we have analysed trend behaviour of macroeconomic variables included in the study. ...
Real currency appreciation in accession countries
Real currency appreciation in accession countries

... more than 1,300 % over a period of 37 quarters, ie in less than ten years. To put these figures into perspective, consider comparable indices for the G7 countries: since the collapse of the Bretton Woods system, none of these indices doubled in any given decade. The real currency appreciation in tra ...
Depreciation of the Russian rouble in 2014-2015 and its
Depreciation of the Russian rouble in 2014-2015 and its

... different income-level groups (4) A secondary data analysis of the official publications of the Bank of Russia and of relevant research papers on Russian economy was carried out. The results show that although consumers’ disposable income decreased in 2014 and 2015, there is an overall preference to ...
Federal Reserve Bank of New York Staff Reports
Federal Reserve Bank of New York Staff Reports

... frequently - on average once every 20-21 months. The volatility of the real exchange rate is also much higher in the heterogeneous economy (by a factor that ranges from 2:5 to more than 5, depending on the speci…cation of the model). These results obtain in the absence of strategic complementaritie ...
Brazil in the 21 Century:
Brazil in the 21 Century:

... would trigger another channel (call it the exchange rate channel) that would make interest rates jump upwards. Typically, as shown in Chart 2B, the C-Bond spread is the first to jump, and the CIPD moves later when domestic interest rates are raised to avoid further foreign reserves losses. Therefore ...
Exchange rate regimes in Latin America
Exchange rate regimes in Latin America

... A Concise History of Exchange Rate  Regimes in Latin America  Roberto Frenkel and Martín Rapetti  ...
What Drives Exchange Rates? New Evidence from a Panel of U.S.
What Drives Exchange Rates? New Evidence from a Panel of U.S.

... dollar. However, over the same time, currencies of commodity-importing countries or currency areas, like the euro area and the United Kingdom, have also appreciated against the U.S. dollar. If currencies of commodity exporters appreciate, because their economies bene t from rising commodity prices, ...
Gold, the renminbi and the multi
Gold, the renminbi and the multi

... imbalances represent just one element of uncertainty. If there are big question marks over the economic rise of China, then these surround, too, the economic stewardship of the other main creditor countries, Germany and Japan; fundamental flaws have also emerged over the euro. Against this backgroun ...
Snímek 1
Snímek 1

... of the curve for expected return from investment abroad → additional increase of E ...
THE ENIGMATIC DOLLAR-EURO EXCHANGE RATE AND THE
THE ENIGMATIC DOLLAR-EURO EXCHANGE RATE AND THE

Purchasing Power Parity and Country Characteristics
Purchasing Power Parity and Country Characteristics

... Purchasing Power Parity (PPP) has been one of the most enduring concepts in international economics. In its strongest form, absolute PPP implies that one could buy the same basket of goods in any country for the same value when prices are denominated in a common currency. This concept is based on th ...
Real Exchange Rate Volatility and the Price of Nontradable Goods
Real Exchange Rate Volatility and the Price of Nontradable Goods

... does not separate periods of managed exchange rates from periods of floating exchange rates. A related point is that liability dollarization does seem to matter for emerging market crises. Panel data evidence shows that the relative nontradables price is, in fact, closely linked to the real exchange ...
ASX Operating Rules Section 01
ASX Operating Rules Section 01

... Trading Permission in respect of one or more Products if ASX considers it appropriate and is satisfied that the applicant will have in place and maintain adequate clearing arrangements in accordance with Rule [1003] and Schedule 1 for those products and have the technical capacity and knowledge requ ...
DP2006/07 How costly is exchange rate stabilisation for an
DP2006/07 How costly is exchange rate stabilisation for an

... 1 Introduction Most central banks within the OECD currently have as their main target of policy a low inflation rate, with other possible policy objectives relegated to second place. In most of the theoretical literature regarding central bank behaviour the two variables that enter a central bank’s ...
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Foreign exchange market

The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of volume of trading, it is by far the largest market in the world. The main participants in this market are the larger international banks. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.The foreign exchange market works through financial institutions, and it operates on several levels. Behind the scenes banks turn to a smaller number of financial firms known as “dealers,” who are actively involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the “interbank market”, although a few insurance companies and other kinds of financial firms are involved. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, forex has little (if any) supervisory entity regulating its actions.The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the United States to import goods from European Union member states, especially Eurozone members, and pay Euros, even though its income is in United States dollars. It also supports direct speculation and evaluation relative to the value of currencies, and the carry trade, speculation based on the interest rate differential between two currencies.In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.The foreign exchange market is unique because of the following characteristics: its huge trading volume representing the largest asset class in the world leading to high liquidity; its geographical dispersion; its continuous operation: 24 hours a day except weekends, i.e., trading from 22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York); the variety of factors that affect exchange rates; the low margins of relative profit compared with other markets of fixed income; and the use of leverage to enhance profit and loss margins and with respect to account size.As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks.According to the Bank for International Settlements,the preliminary global results from the 2013 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.3 trillion per day in April 2013. This is up from $4.0 trillion in April 2010 and $3.3 trillion in April 2007. Foreign exchange swaps were the most actively traded instruments in April 2013, at $2.2 trillion per day, followed by spot trading at $2.0 trillion.According to the Bank for International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.The $3.98 trillion break-down is as follows: $1.490 trillion in spot transactions $475 billion in outright forwards $1.765 trillion in foreign exchange swaps $43 billion currency swaps $207 billion in options and other products↑ ↑ ↑ ↑ ↑ ↑
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