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 ...
Current account reversals and currency crises: empirical
... banks refused to roll over their short-term foreign currency assets vis-avis offshore and onshore Korean banks. The attempts by the central bank to shore up the foreign liquidity position of banks simply led to the rapid loss of foreign currency reserves and the collapse of the currency. Insofar as ...
... banks refused to roll over their short-term foreign currency assets vis-avis offshore and onshore Korean banks. The attempts by the central bank to shore up the foreign liquidity position of banks simply led to the rapid loss of foreign currency reserves and the collapse of the currency. Insofar as ...
G97/4 Current account and exchange rate behaviour economy
... It is assumed: (1) that all agents’information set is dated at time (t-1) and (2), that market participants and the monetary authority share the same information. The dating of the information set is motivated by three factors: first, it is the most realistic dating of the information set for inflat ...
... It is assumed: (1) that all agents’information set is dated at time (t-1) and (2), that market participants and the monetary authority share the same information. The dating of the information set is motivated by three factors: first, it is the most realistic dating of the information set for inflat ...
The Eurosystem`s bond purchases and the exchange rate of the
... to remain expansionary for longer than previously expected and that future money market rates, too, will therefore stay low for longer. This, in turn, would bring current capital market rates under pressure. Much like with the portfolio rebalancing channel, such developments would tend to provoke ne ...
... to remain expansionary for longer than previously expected and that future money market rates, too, will therefore stay low for longer. This, in turn, would bring current capital market rates under pressure. Much like with the portfolio rebalancing channel, such developments would tend to provoke ne ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
... in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate has been stabilized in the short run but at the cost of high interest rates, which jeopardize the goal of increased domestic investment and economic recovery. The liberalization experience wi ...
... in the money market, thereby raising the domestic interest rates. The result has been that the exchange rate has been stabilized in the short run but at the cost of high interest rates, which jeopardize the goal of increased domestic investment and economic recovery. The liberalization experience wi ...
This PDF is a selection from an out-of-print volume from the... of Economic Research
... is clear that for foreign investors, Korea is an attractive market that has not yet been sufficiently explored. Then the most relevant question to our analysis in this paper is what maintains the high (real) interest rate in Korea and how it will evolve over time. Figure 11.3 plots three series of i ...
... is clear that for foreign investors, Korea is an attractive market that has not yet been sufficiently explored. Then the most relevant question to our analysis in this paper is what maintains the high (real) interest rate in Korea and how it will evolve over time. Figure 11.3 plots three series of i ...
Stop-loss orders and price cascades in currency markets
... the response to take-profit orders, which generate negative-feedback trading and are therefore unlikely to contribute to price cascades. (3) The response to stop-loss orders lasts longer than the response to take-profit orders. Most results are statistically significant for hours, although not for d ...
... the response to take-profit orders, which generate negative-feedback trading and are therefore unlikely to contribute to price cascades. (3) The response to stop-loss orders lasts longer than the response to take-profit orders. Most results are statistically significant for hours, although not for d ...
New evidence on the puzzles: Results from agnostic identification
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
Multi-Product Firms and Exchange Rate Fluctuations
... u nderstand the d eterminants of incomplete exchange pass-through. This strand of the literature started with Feenstra, Gagnon, and Knetter (1996) and Goldberg and Verboven (2001) studying price behavior in the international car market, and is experiencing a recent surge with the availability of o ...
... u nderstand the d eterminants of incomplete exchange pass-through. This strand of the literature started with Feenstra, Gagnon, and Knetter (1996) and Goldberg and Verboven (2001) studying price behavior in the international car market, and is experiencing a recent surge with the availability of o ...
Price dispersion: the role of borders, distance, and location∗
... and border size. In fact, a number of factors can be important in shaping this so called "border effect." For example, the size of the border will depend on international differences in non-traded input costs. A "border effect" will be present when the non-traded inputs like labor and land that go into ...
... and border size. In fact, a number of factors can be important in shaping this so called "border effect." For example, the size of the border will depend on international differences in non-traded input costs. A "border effect" will be present when the non-traded inputs like labor and land that go into ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... Over the past twenty years there has been a marked shift toward more flexible exchange rate regimes and more open capital accounts by both industrial and emerging market countries. Exchange rate targets accounted for over half of monetary policy regimes in 1985, but declined to just 5 percent in 200 ...
... Over the past twenty years there has been a marked shift toward more flexible exchange rate regimes and more open capital accounts by both industrial and emerging market countries. Exchange rate targets accounted for over half of monetary policy regimes in 1985, but declined to just 5 percent in 200 ...
stop-loss orders and price cascades in currency markets
... the response to take-profit orders, which generate negative-feedback trading and are therefore unlikely to contribute to price cascades. (3) The response to stop-loss orders lasts longer than the response to take-profit orders. Most results are statistically significant for hours, although not for d ...
... the response to take-profit orders, which generate negative-feedback trading and are therefore unlikely to contribute to price cascades. (3) The response to stop-loss orders lasts longer than the response to take-profit orders. Most results are statistically significant for hours, although not for d ...
Monetary Unions, External Shocks and Economic Performance
... what is the optimal number of currencies in the world. More specifically, they have asked whether it would make sense for some countries to give up their national currencies and either adopt another country’s currency, or join other nations in creating a regional currency. The first option – adoptin ...
... what is the optimal number of currencies in the world. More specifically, they have asked whether it would make sense for some countries to give up their national currencies and either adopt another country’s currency, or join other nations in creating a regional currency. The first option – adoptin ...
hefte3-07 - bibsys brage
... structures impacting on exports in developing countries. Still, some theoretical progress has been made. Göcke (2002) analysed the different concepts of hysteresis that are applied in economics and the forms of persistence (path-dependence) that follow. Amable et al (1995) introduced the crucial dis ...
... structures impacting on exports in developing countries. Still, some theoretical progress has been made. Göcke (2002) analysed the different concepts of hysteresis that are applied in economics and the forms of persistence (path-dependence) that follow. Amable et al (1995) introduced the crucial dis ...
referees, and Stephen J. Turnovsky July 1983
... ineffective inofar as the stabilization of the real part of the domestic economy is concerned. Likewise, if the monetary authority intervenes in the exchange market so as to exactly accommodate for nominal movements in the demand for money, thereby rendering the excess demand for money dependent onl ...
... ineffective inofar as the stabilization of the real part of the domestic economy is concerned. Likewise, if the monetary authority intervenes in the exchange market so as to exactly accommodate for nominal movements in the demand for money, thereby rendering the excess demand for money dependent onl ...
US Intervention in the Exchange Market for DM, 1977-80
... We look at daily data for the period starting on October 1, 1977, and ending two and a half years later, on March 31, 1980. The last quarter of 1977 was chosen as the beginning point because sizable intervention recommenced then, after several years of very limited intervention. The end point was di ...
... We look at daily data for the period starting on October 1, 1977, and ending two and a half years later, on March 31, 1980. The last quarter of 1977 was chosen as the beginning point because sizable intervention recommenced then, after several years of very limited intervention. The end point was di ...
Trade Integration, Competition, and the Decline in
... statistic takes into account the correlation between the two series as well as their relative volatility and can be derived as the estimate from a univariate least squares regression of the real exchange rate on the relative import price. As shown in Table 1, our estimate of βpm ,q has declined in ...
... statistic takes into account the correlation between the two series as well as their relative volatility and can be derived as the estimate from a univariate least squares regression of the real exchange rate on the relative import price. As shown in Table 1, our estimate of βpm ,q has declined in ...
NBER WORKING PAPER SERIES OFFSET AND STERILIZATION UNDER FIXED EXCHANGE
... its monetary policy dominance over the other European central banks by "punishing" them whenever it was forced to intervene in support of the European currencies participating to the pre-EMS "snake"; according to this hypothesis the punishment consisted in overcoinpensating the ...
... its monetary policy dominance over the other European central banks by "punishing" them whenever it was forced to intervene in support of the European currencies participating to the pre-EMS "snake"; according to this hypothesis the punishment consisted in overcoinpensating the ...
Does the Exchange Rate Regime Matter for Inflation? Ilker Domaç
... developments in Argentina. More precisely, the debate over fixed and flexible exchange regimes has once again taken center stage. Some claimed that the first round of this debate was won by those advocating flexible regimes: all crisis episodes took place in countries which had adopted a variety of ...
... developments in Argentina. More precisely, the debate over fixed and flexible exchange regimes has once again taken center stage. Some claimed that the first round of this debate was won by those advocating flexible regimes: all crisis episodes took place in countries which had adopted a variety of ...
NEMO: An Equation for the Canadian Dollar
... rate): real non-energy commodity prices and labour productivity differentials with the United States. This relationship is augmented by nominal variables to capture short-run dynamics: Canada-US short-term interest rate differentials, the evolution of the US dollar relative to other currencies, and ...
... rate): real non-energy commodity prices and labour productivity differentials with the United States. This relationship is augmented by nominal variables to capture short-run dynamics: Canada-US short-term interest rate differentials, the evolution of the US dollar relative to other currencies, and ...
1 Exchange Rates and Prices in the Long Run
... The Measurement of Money This figure shows the major kinds of monetary aggregates (currency, M0, M1, and M2) for the United States from 2004 to 2012. Normally, bank reserves are very close to zero, so M0 and currency are virtually identical, but reserves spiked up during the financial crisis in 2008 ...
... The Measurement of Money This figure shows the major kinds of monetary aggregates (currency, M0, M1, and M2) for the United States from 2004 to 2012. Normally, bank reserves are very close to zero, so M0 and currency are virtually identical, but reserves spiked up during the financial crisis in 2008 ...
Stock Prices, Exchange Rates, and Oil
... investigate the dynamics of international stock movements, and find significant cross-market interactions. These empirical findings are of interest for two reasons. First, portfolio theory suggests that if the stock returns between markets are less than perfectly correlated, investors should be able ...
... investigate the dynamics of international stock movements, and find significant cross-market interactions. These empirical findings are of interest for two reasons. First, portfolio theory suggests that if the stock returns between markets are less than perfectly correlated, investors should be able ...
Foreign Exchange Interventions at Zero Interest Rates
... 2000, the Bank of Japan, acting as the agent of the Ministry of Finance, bought US dollars on 168 occasions for a cumulative amount of $304 billion and sold US dollars on 33 occasions for a cumulative amount of $38 billion. In this paper, we use monthly data from 1991 to 2002. The variables include ...
... 2000, the Bank of Japan, acting as the agent of the Ministry of Finance, bought US dollars on 168 occasions for a cumulative amount of $304 billion and sold US dollars on 33 occasions for a cumulative amount of $38 billion. In this paper, we use monthly data from 1991 to 2002. The variables include ...
Forecasting Method #1
... pivotal to their comeback, they will need to keep the exchange rate low or risk an adverse effect on their exporting capabilities. -According to the Reserve Bank of Australia they currently carry 6.286 billion AUD in their reserve fund. They could use this as a form of direct intervention to increas ...
... pivotal to their comeback, they will need to keep the exchange rate low or risk an adverse effect on their exporting capabilities. -According to the Reserve Bank of Australia they currently carry 6.286 billion AUD in their reserve fund. They could use this as a form of direct intervention to increas ...
External Wealth, the Trade Balance, and the Real Exchange
... well as on its output growth rate. For instance, going back to the US example, a debtor country that grows quickly and manages to earn returns on its foreign assets that are higher than the payouts on its foreign liabilities requires a much smaller trade surplus to stabilize its net foreign asset po ...
... well as on its output growth rate. For instance, going back to the US example, a debtor country that grows quickly and manages to earn returns on its foreign assets that are higher than the payouts on its foreign liabilities requires a much smaller trade surplus to stabilize its net foreign asset po ...