This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... absorption in each country is also a positive function of real wealth. The marginal propensity to consume out of wealth, 8, can be thought of as a discount rate.2 Wealth is defined in equation (4) as real money balances, m, plus the real value of domestic and foreign bonds. Two crucial assumptions a ...
... absorption in each country is also a positive function of real wealth. The marginal propensity to consume out of wealth, 8, can be thought of as a discount rate.2 Wealth is defined in equation (4) as real money balances, m, plus the real value of domestic and foreign bonds. Two crucial assumptions a ...
The Cost-benefit Analysis on International Reserve Currency Status
... world, depending on the comprehensive economic strength in Euro zone, the status of Euro in the IRC system went up steadily, and it became the second largest international reserve currency. The UK possessed a developed international financial market with history, and with the traditional advantages ...
... world, depending on the comprehensive economic strength in Euro zone, the status of Euro in the IRC system went up steadily, and it became the second largest international reserve currency. The UK possessed a developed international financial market with history, and with the traditional advantages ...
Exchange Rate Regime: Does it Matter for Inflation?
... external disequilibrium, the country will ultimately have to discipline itself through other contractionary policies such as aggregate demand policies, commercial policy, or exchange control [see Crockett and Goldstein (1976) for more details]. A floating exchange rate regime lacks the discipline ef ...
... external disequilibrium, the country will ultimately have to discipline itself through other contractionary policies such as aggregate demand policies, commercial policy, or exchange control [see Crockett and Goldstein (1976) for more details]. A floating exchange rate regime lacks the discipline ef ...
Competition and Cooperation among Exchanges
... n recent years a growing number of companies have listed their stocks on exchanges outside their country of origin. Many European companies have listed on the New York Stock Exchange (NYSE), and companies from emerging market countries such as Israel, India, and China have listed not only on the NYS ...
... n recent years a growing number of companies have listed their stocks on exchanges outside their country of origin. Many European companies have listed on the New York Stock Exchange (NYSE), and companies from emerging market countries such as Israel, India, and China have listed not only on the NYS ...
Price Levels and the Exchange Rate in the Long Run
... and expected changes in real exchange rates. ...
... and expected changes in real exchange rates. ...
NBER WORKING PAPER SERIES EXPENDITURE SWITCHING VS. REAL EXCHANGE RATE
... we consider that special case, then under LCP for final goods, nominal exchange rate changes induce movements in real exchange rates that lead to inefficient consumption allocations. Stabilization of the consumption real exchange rate is a legitimate goal of exchange-rate policy, but it conflicts w ...
... we consider that special case, then under LCP for final goods, nominal exchange rate changes induce movements in real exchange rates that lead to inefficient consumption allocations. Stabilization of the consumption real exchange rate is a legitimate goal of exchange-rate policy, but it conflicts w ...
The Panorama of the East Asian Crisis and the IMF`s
... followed by foreign investors who saw potential in Thailand’s young fast growing economy. The newly liberalized capital market system amplified the capital inflow into Thailand. While all these events were unfolding, Thai banks did not hedge against their foreign currency debts because they thought ...
... followed by foreign investors who saw potential in Thailand’s young fast growing economy. The newly liberalized capital market system amplified the capital inflow into Thailand. While all these events were unfolding, Thai banks did not hedge against their foreign currency debts because they thought ...
real exchange rate movements and export growth: nigeria, 1960-1990
... in inflation rates between the current and the base year. Three defects are usually associated with the PPP approach. First, it is not easy to find an equilibrium base period. For example, in Nigeria, external equilibrium could be associated with some years during the oil boom. However, using any of ...
... in inflation rates between the current and the base year. Three defects are usually associated with the PPP approach. First, it is not easy to find an equilibrium base period. For example, in Nigeria, external equilibrium could be associated with some years during the oil boom. However, using any of ...
14 pages - Bank for International Settlements
... How should reserve managers choose the currency composition of their reserves? The numeraire that is used to measure risks and returns has a very strong influence on calculated optimal currency allocations (Papaioannou et al (2006), Borio et al (2008a)). Its choice depends on the intended uses of th ...
... How should reserve managers choose the currency composition of their reserves? The numeraire that is used to measure risks and returns has a very strong influence on calculated optimal currency allocations (Papaioannou et al (2006), Borio et al (2008a)). Its choice depends on the intended uses of th ...
Document
... —Interest Rates and Role of Exchange Rate Regime 1.4: Interest Rates and Role of Exchange Rate Regime ...
... —Interest Rates and Role of Exchange Rate Regime 1.4: Interest Rates and Role of Exchange Rate Regime ...
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... © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. ...
... © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. ...
Forex Medium-Term Outlook
... A weak JPY scenario remains in place for the rest of this year for USD/JPY going by supply-demand and interest rates. The improvement in the trade balance continues to be a risk factor, but as of the present stage, it is merely lowering the pressure to sell, rather than increasing the pressure to bu ...
... A weak JPY scenario remains in place for the rest of this year for USD/JPY going by supply-demand and interest rates. The improvement in the trade balance continues to be a risk factor, but as of the present stage, it is merely lowering the pressure to sell, rather than increasing the pressure to bu ...
NBER WORKING PAPER SERIES Michael B. Devereux
... graphical evidence using these forecasts for 28 countries over 1990-2008. We also specialize the evidence by pairs of countries, by time, and by exchange-rate regime. The overall conclusion is that there is still very little evidence of a positive relationship. This deepens the puzzle. We then provi ...
... graphical evidence using these forecasts for 28 countries over 1990-2008. We also specialize the evidence by pairs of countries, by time, and by exchange-rate regime. The overall conclusion is that there is still very little evidence of a positive relationship. This deepens the puzzle. We then provi ...
NBER WORKING PAPER SERIES THE U.S. CURRENT ACCOUNT AND THE DOLLAR
... U.S. gross liabilities are denoted in dollars, and so their value in dollars are unaffected by a dollar depreciation. Valuation effects would obviously be very different when, as is typically the case for emerging countries, gross positions were smaller, and liabilities were denominated in foreign c ...
... U.S. gross liabilities are denoted in dollars, and so their value in dollars are unaffected by a dollar depreciation. Valuation effects would obviously be very different when, as is typically the case for emerging countries, gross positions were smaller, and liabilities were denominated in foreign c ...
Does Purchasing Power Parity hold between European countries?
... With the development of international trade, exchange rate plays a more important role in international financial market and commodity market than decades ago, since the foreign exchange rate market is the world‘s largest financial market and international trades depend on exchange rate. The exchang ...
... With the development of international trade, exchange rate plays a more important role in international financial market and commodity market than decades ago, since the foreign exchange rate market is the world‘s largest financial market and international trades depend on exchange rate. The exchang ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... A salient feature of the global economy is the emergence of significant global imbalances over the past decade, reflected principally by the large current account deficit of the United States, with the rest of the world portrayed in the top panel of figure 4.1. There has been considerable debate ove ...
... A salient feature of the global economy is the emergence of significant global imbalances over the past decade, reflected principally by the large current account deficit of the United States, with the rest of the world portrayed in the top panel of figure 4.1. There has been considerable debate ove ...
Title The Restoration of the Gold Standard after the US Civil War: A
... Hayes, a well-known sound-money representative, appointed John Sherman as Secretary of the Treasury. Sherman, from then on in charge of the accomplishment of resumption, believed that he needed at least an amount of gold large enough to be able to redeem 40 per cent of the outstanding greenbacks. Th ...
... Hayes, a well-known sound-money representative, appointed John Sherman as Secretary of the Treasury. Sherman, from then on in charge of the accomplishment of resumption, believed that he needed at least an amount of gold large enough to be able to redeem 40 per cent of the outstanding greenbacks. Th ...
The Contribution of Growth and Interest Rate Dimitrios Malliaropulos
... errors in the VAR model, which in turn implies that the origins of this shock cannot be identified. Assume for simplicity that there is no contemporaneous correlation among the elements of Yt , and consider the first equation of the VAR model, that is the one for the real exchange rate. The error t ...
... errors in the VAR model, which in turn implies that the origins of this shock cannot be identified. Assume for simplicity that there is no contemporaneous correlation among the elements of Yt , and consider the first equation of the VAR model, that is the one for the real exchange rate. The error t ...
Navigation - Zentrum für Europäische Integrationsforschung
... Yet, an Economic and Monetary Union in which policy debates with a bearing on European policy choices remain confined within national boundaries would be prone to instability, because disagreements about policies would tend to end up in disputes between countries. It is, therefore, of utmost importa ...
... Yet, an Economic and Monetary Union in which policy debates with a bearing on European policy choices remain confined within national boundaries would be prone to instability, because disagreements about policies would tend to end up in disputes between countries. It is, therefore, of utmost importa ...
When Capital Inflows Come to a Sudden Stop: Consequences and
... more damaging. Financial contracts are, as a general rule, contingent on very few “states of nature,” i.e., objective variables, like terms of trade, profit, demand, etc. A bank loan, for example, is typically serviced by a series of fixed installments unless the borrower goes bankrupt. To illustrat ...
... more damaging. Financial contracts are, as a general rule, contingent on very few “states of nature,” i.e., objective variables, like terms of trade, profit, demand, etc. A bank loan, for example, is typically serviced by a series of fixed installments unless the borrower goes bankrupt. To illustrat ...
An Impact of Macroeconomic Variables on the functioning of Indian
... the daily conduct of monetary practices and frequently used as an operating target for policy creations. An increase in CMR will increase the holding money opportunity cost, thereby causing swap of stocks with interest bearing assets and would decrease the stock prices. It also affects the corporate ...
... the daily conduct of monetary practices and frequently used as an operating target for policy creations. An increase in CMR will increase the holding money opportunity cost, thereby causing swap of stocks with interest bearing assets and would decrease the stock prices. It also affects the corporate ...
Dynamics of Firms and Trade in General Equilibrium
... competitive: the prices of foreign exports increase and the threshold to enter the domestic market increases ⇒ the import price index increases (less than due to intensive margin only) and import quantities fall, opposite to what the data show. ● DJK solution: imports are only of intermediate goods, ...
... competitive: the prices of foreign exports increase and the threshold to enter the domestic market increases ⇒ the import price index increases (less than due to intensive margin only) and import quantities fall, opposite to what the data show. ● DJK solution: imports are only of intermediate goods, ...
The Dutch Disease and Its Neutralization: A Ricardian Approach Luiz Carlos Bresser-Pereira
... main reasons that explain why medium-income countries such as those two, which grew considerably in the past, are not growing enough in the present: on the one hand, there was a substantial shrinking of public investments, and, on the other hand, since the end of 1980s those countries failed to neut ...
... main reasons that explain why medium-income countries such as those two, which grew considerably in the past, are not growing enough in the present: on the one hand, there was a substantial shrinking of public investments, and, on the other hand, since the end of 1980s those countries failed to neut ...