KC3002 International Finance /International Macroeconomics
... An increase in the base country interest rate should cause output to fall in a country which pegs its exchange rate to the base country, because the pegging country has to tighten its monetary policy and raise its interest rate to match the base interest rate. Di Giovanni and Shambaugh(2008) examine ...
... An increase in the base country interest rate should cause output to fall in a country which pegs its exchange rate to the base country, because the pegging country has to tighten its monetary policy and raise its interest rate to match the base interest rate. Di Giovanni and Shambaugh(2008) examine ...
The International Role of the Dollar and Trade Balance
... which is the case when exchange-rate pass through into prices is very low, expenditure-switching does not occur in the home market. A domestic currency depreciation does not lead to much of a decline in import quantities. At the same time a depreciation of the dollar raises quantities of U.S. export ...
... which is the case when exchange-rate pass through into prices is very low, expenditure-switching does not occur in the home market. A domestic currency depreciation does not lead to much of a decline in import quantities. At the same time a depreciation of the dollar raises quantities of U.S. export ...
Real Interest Rate
... • Panel (a) of the figure shows the market for loanable funds. As before, national saving is the source of the supply of loanable funds. Domestic investment and net capital outflow are the source of the demand for loanable funds. The equilibrium real interest rate(r1) brings the quantity of loanable ...
... • Panel (a) of the figure shows the market for loanable funds. As before, national saving is the source of the supply of loanable funds. Domestic investment and net capital outflow are the source of the demand for loanable funds. The equilibrium real interest rate(r1) brings the quantity of loanable ...
Carry Trades, Monetary Policy and Speculative Dynamics
... See, for instance, the full page feature in the Financial Times entitled “Carried Away”, April 30th, 2010. ...
... See, for instance, the full page feature in the Financial Times entitled “Carried Away”, April 30th, 2010. ...
the effects of exchange rate on the trade balance in ghana
... real and nominal exchange rates and how these affect the trade and growth in an economy. Should an economy adopt a fixed or flexible exchange rate system? Should it target the real or the nominal exchange rate? Models of real exchange rates reflect the relative prices of one country in terms of refe ...
... real and nominal exchange rates and how these affect the trade and growth in an economy. Should an economy adopt a fixed or flexible exchange rate system? Should it target the real or the nominal exchange rate? Models of real exchange rates reflect the relative prices of one country in terms of refe ...
The research reported here is part of the NBER's research
... "The fundamental argument for flexible exchange rates is that they would allow countries autonomy with respect monetary, fiscal and other policy instruments. The argument for flexible rates can be put more strongly still: flexible exchange rates are essential to the preservation of national autonomy ...
... "The fundamental argument for flexible exchange rates is that they would allow countries autonomy with respect monetary, fiscal and other policy instruments. The argument for flexible rates can be put more strongly still: flexible exchange rates are essential to the preservation of national autonomy ...
trading hours euronext amsterdam, brussels, lisbon and
... Trading arrangements for the period 24 December 2013 to 3 January 2014 for the Amsterdam, Brussels, Lisbon and Paris Derivatives Markets are detailed below. The trading hours of the Amsterdam, Brussels, Lisbon and Paris Derivatives Markets during the period of 24 December 2013 to 3 January 2014, inc ...
... Trading arrangements for the period 24 December 2013 to 3 January 2014 for the Amsterdam, Brussels, Lisbon and Paris Derivatives Markets are detailed below. The trading hours of the Amsterdam, Brussels, Lisbon and Paris Derivatives Markets during the period of 24 December 2013 to 3 January 2014, inc ...
Prasad-uce05-s 405386 en
... The current overall exposure of the corporate sector and banks in China to foreign exchange risks appears to be low; however, there are some indications that the degree of exposure has been on the rise in recent years. As shown in Table 1, in 2003, banks’ net foreign assets accounted for 3 percent o ...
... The current overall exposure of the corporate sector and banks in China to foreign exchange risks appears to be low; however, there are some indications that the degree of exposure has been on the rise in recent years. As shown in Table 1, in 2003, banks’ net foreign assets accounted for 3 percent o ...
The Relationship between Exchange Rates and Stock Prices
... short-run model that allows for simultaneous equilibrium in the goods, money, foreign exchange and stock markets in two-countries. Specifically, I focus on the United States and the United Kingdom over the period January 1990 through August 2004. Establishing the relationship between stock prices an ...
... short-run model that allows for simultaneous equilibrium in the goods, money, foreign exchange and stock markets in two-countries. Specifically, I focus on the United States and the United Kingdom over the period January 1990 through August 2004. Establishing the relationship between stock prices an ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... The role of intervention policy is explored in the context of a discretetime stochastic model in which agents have rational expectations. The description of this model in section l l .2 reveals that it has two features which are especially important. First, intervention operations affect macroeconom ...
... The role of intervention policy is explored in the context of a discretetime stochastic model in which agents have rational expectations. The description of this model in section l l .2 reveals that it has two features which are especially important. First, intervention operations affect macroeconom ...
Putting the Cart Before the Horse? Capital Account Liberalization and
... The current overall exposure of the corporate sector and banks in China to foreign exchange risks appears to be low; however, there are some indications that the degree of exposure has been on the rise in recent years. As shown in Table 1, in 2003, banks’ net foreign assets accounted for 3 percent o ...
... The current overall exposure of the corporate sector and banks in China to foreign exchange risks appears to be low; however, there are some indications that the degree of exposure has been on the rise in recent years. As shown in Table 1, in 2003, banks’ net foreign assets accounted for 3 percent o ...
THE IMPACT OF EXCHANGE RATE PASS-THROUGH
... price level in the country. Directly from the form itself it can be concluded that the increase in inflation in the domestic economy, or more specifically, the rapid growth of domestic than foreign price (assuming the constancy of the nominal exchange rate) leads to a decrease in the real exchange r ...
... price level in the country. Directly from the form itself it can be concluded that the increase in inflation in the domestic economy, or more specifically, the rapid growth of domestic than foreign price (assuming the constancy of the nominal exchange rate) leads to a decrease in the real exchange r ...
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... principal Asian creditors – Japan, China, Korea, Taiwan – and the principal European creditor Germany, only export manufactures and are themselves major importers of services and raw materials including oil. Thus, their trade (saving) surpluses with the rest of the world, and bilaterally with the Un ...
... principal Asian creditors – Japan, China, Korea, Taiwan – and the principal European creditor Germany, only export manufactures and are themselves major importers of services and raw materials including oil. Thus, their trade (saving) surpluses with the rest of the world, and bilaterally with the Un ...
- wiwi.uni
... literature often relies on a benchmark from outside South America, such as the volatility of real exchange rate changes between US states. This ignores the fact that some of the observed volatility may be caused by region-specific shocks that the benchmark countries do not experience, thus yielding ...
... literature often relies on a benchmark from outside South America, such as the volatility of real exchange rate changes between US states. This ignores the fact that some of the observed volatility may be caused by region-specific shocks that the benchmark countries do not experience, thus yielding ...
Paul de Grauwe
... This model has a different starting point than the monetary model. It recognises that the decisions of portfolio holders should be introduced in the analysis. In these models the desire to diversify plays an important role in the determination of the exchange rate. As a result, in addition to the ma ...
... This model has a different starting point than the monetary model. It recognises that the decisions of portfolio holders should be introduced in the analysis. In these models the desire to diversify plays an important role in the determination of the exchange rate. As a result, in addition to the ma ...
Chapter 2: Introduction to Exchange Rates and Foreign
... Foreign Exchange Market (FOREX) is a collection of private individuals, corporations, and some public institutions that buy and sell currencies. Volume is enormous: 2010 $4 trilion per day. US GDP? Highly integrated internationally: there is not a moment in the day when foreign exchange is not being ...
... Foreign Exchange Market (FOREX) is a collection of private individuals, corporations, and some public institutions that buy and sell currencies. Volume is enormous: 2010 $4 trilion per day. US GDP? Highly integrated internationally: there is not a moment in the day when foreign exchange is not being ...
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... exchange rate is ordered last in the list, which responds instantaneously to all other shocks. These shocks are ordered as following: Monetary aggregate, CPI, IIP, world price of oil and U.S. Federal Funds Rate. This model captures the characteristics of a large open economy with fully floating exch ...
... exchange rate is ordered last in the list, which responds instantaneously to all other shocks. These shocks are ordered as following: Monetary aggregate, CPI, IIP, world price of oil and U.S. Federal Funds Rate. This model captures the characteristics of a large open economy with fully floating exch ...
Chapter 16
... Relative interest rates (cont.) • Expectations about the value of the currency during the investment period – So far, the role of interest rates on the exchange rate has ignored expectations about the value of the currency during the investment period – Table 16.1 illustrates the interaction of int ...
... Relative interest rates (cont.) • Expectations about the value of the currency during the investment period – So far, the role of interest rates on the exchange rate has ignored expectations about the value of the currency during the investment period – Table 16.1 illustrates the interaction of int ...
Will the Renminbi replace the US Dollar as the world currency?
... affect the competitiveness of its export sector and economic growth. China’s Trilemma- In 1960, Noble prize winner Robert Mundell inferred that a country at one time can’t have an open capital account, along with control over interest rates and currency. For a country like China which is having a fi ...
... affect the competitiveness of its export sector and economic growth. China’s Trilemma- In 1960, Noble prize winner Robert Mundell inferred that a country at one time can’t have an open capital account, along with control over interest rates and currency. For a country like China which is having a fi ...
empirical investigation of the relationship between exchange rate
... There is a support of empirical literature which is in favour of argument that there is no significant link of stock volatility with fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United ...
... There is a support of empirical literature which is in favour of argument that there is no significant link of stock volatility with fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United ...
Working Paper No. 288 - Financial Performance and
... the link between macroeconomic fundamentals and relative exchange rate performance over the cycle, during both booms and busts. A time …xed e¤ect in the panel data regression controls for global factors, allowing us to examine the role of country-speci…c factors in determining the relative performan ...
... the link between macroeconomic fundamentals and relative exchange rate performance over the cycle, during both booms and busts. A time …xed e¤ect in the panel data regression controls for global factors, allowing us to examine the role of country-speci…c factors in determining the relative performan ...
Assessing the Impact of Exchange Rate Risk on Banks Performance
... international trade imbalances suggests countries with current trade surpluses are expected to have an appreciating currency, whereas countries with trade deficits should have depreciating currencies. Such exchange rate changes would lead to changes in international relative prices that would work t ...
... international trade imbalances suggests countries with current trade surpluses are expected to have an appreciating currency, whereas countries with trade deficits should have depreciating currencies. Such exchange rate changes would lead to changes in international relative prices that would work t ...
The monetary policies of two countries having trade relations are not
... the welfare of the cooperating countries in any case because cooperation strengthens a central bank’s credibility problem vis-à-vis the private sector. Oudiz and Sachs (1985) distinguish between open-loop and closed-loop behaviour and between non-cooperative and cooperative decisions. However, the a ...
... the welfare of the cooperating countries in any case because cooperation strengthens a central bank’s credibility problem vis-à-vis the private sector. Oudiz and Sachs (1985) distinguish between open-loop and closed-loop behaviour and between non-cooperative and cooperative decisions. However, the a ...