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 ...
Political Economy in Macroeconomics
... Taken together with the economic arguments for flexible exchange rates, pegging the exchange rate to gain credibility for a low-inflation policy can be thought of as an application of the question of commitment versus flexibility introduced in Section 4.6 of Chapter 4 and further discussed in Chapte ...
... Taken together with the economic arguments for flexible exchange rates, pegging the exchange rate to gain credibility for a low-inflation policy can be thought of as an application of the question of commitment versus flexibility introduced in Section 4.6 of Chapter 4 and further discussed in Chapte ...
International Coordination
... phased out -- provoked another sort of complaint from Indian Central Bank Governor Raghuram Rajan: “International monetary cooperation has broken down…The U.S. should worry about the effects of its policies on the rest of the world” (1/30/14). The monetary part of this paper considers both kinds of ...
... phased out -- provoked another sort of complaint from Indian Central Bank Governor Raghuram Rajan: “International monetary cooperation has broken down…The U.S. should worry about the effects of its policies on the rest of the world” (1/30/14). The monetary part of this paper considers both kinds of ...
Euro - Georgia State University
... difficult to distinguish between domestic and external factors.2 The survey data also make it possible to study the determinants of support for euroization at the micro level, whereas the literature has studied exchange rate choices across countries. For example, the data show whether respondents pe ...
... difficult to distinguish between domestic and external factors.2 The survey data also make it possible to study the determinants of support for euroization at the micro level, whereas the literature has studied exchange rate choices across countries. For example, the data show whether respondents pe ...
View/Open
... of its contributions to income, employment, foreign exchange earnings and domestic food supply (Omojimite, 2012). Despite the immense potentials of agriculture in Nigeria, food production to meet local demand has been a challenge over the years and as noted by Oparaeke et al. (2009) who posited that ...
... of its contributions to income, employment, foreign exchange earnings and domestic food supply (Omojimite, 2012). Despite the immense potentials of agriculture in Nigeria, food production to meet local demand has been a challenge over the years and as noted by Oparaeke et al. (2009) who posited that ...
Issues on the choice of Exchange Rate Regimes1 Ashwin Moheeput
... countries wishing to adopt a currency board, not as a quick fix solution to end an economic chaos but rather, as integral part of a long term monetary strategy. ...
... countries wishing to adopt a currency board, not as a quick fix solution to end an economic chaos but rather, as integral part of a long term monetary strategy. ...
Contagion, Herding and Exchange-rate Instability
... factors that cause or influence financial crisis. The early work on currency crises, initiated by Krugman,3 is characterised by inconsistencies in fundamental macroeconomic variables with the maintenance of a currency peg. In these first generation models, the government runs a lax fiscal policy and fina ...
... factors that cause or influence financial crisis. The early work on currency crises, initiated by Krugman,3 is characterised by inconsistencies in fundamental macroeconomic variables with the maintenance of a currency peg. In these first generation models, the government runs a lax fiscal policy and fina ...
RMB Internationalization: An Empirical and Policy Analysis
... for a currency to be stored. The same is as the variable real interest rate. A puzzling variable is current account balance, which is negative, suggesting the currency issuing country with a worse trading balance has more share of reserve holding. Though we can not explain it now, this accorded with ...
... for a currency to be stored. The same is as the variable real interest rate. A puzzling variable is current account balance, which is negative, suggesting the currency issuing country with a worse trading balance has more share of reserve holding. Though we can not explain it now, this accorded with ...
krugman_PPT_c20
... EU members adopted the euro for principally 4 reasons: 1. Unified market: the belief that greater market integration and economic growth would occur. 2. Political stability: the belief that a common currency would make political interests more uniform. 3. The belief that German influence under the E ...
... EU members adopted the euro for principally 4 reasons: 1. Unified market: the belief that greater market integration and economic growth would occur. 2. Political stability: the belief that a common currency would make political interests more uniform. 3. The belief that German influence under the E ...
NBER WORKING PAPER SERIES ENDOGENOUS EXCHANGE RATE PASS-THROUGH Michael B. Devereux
... exporters in the stabilizing country will also begin to pre-set their prices in domestic currency. Thus, there is a ‘beggar-thy-neighbor’ aspect to policies of monetary stabilization in an environment of endogenous pass-through. This paper is part of a wider literature on sticky price open economy m ...
... exporters in the stabilizing country will also begin to pre-set their prices in domestic currency. Thus, there is a ‘beggar-thy-neighbor’ aspect to policies of monetary stabilization in an environment of endogenous pass-through. This paper is part of a wider literature on sticky price open economy m ...
The US Dollar, IMF and the Global Financial Crisis
... 1. After purchase of foreign exchange from IMF with local currency, the country is required to buy back, or repurchase, its local currency from IMF with foreign exchange, within 3 years to 5 years. 2. Hence IMF help is only short-term. 3. IMF acts somewhat like a pawn shop. If you are desperately in ...
... 1. After purchase of foreign exchange from IMF with local currency, the country is required to buy back, or repurchase, its local currency from IMF with foreign exchange, within 3 years to 5 years. 2. Hence IMF help is only short-term. 3. IMF acts somewhat like a pawn shop. If you are desperately in ...
CON/2016/49 - ECB
... authorised by central banks, as this volatility does not always appear to be related to economic or financial factors. Other concerns are that: (a) unlike the holders of legally established currencies, the holders of virtual currency units typically have no guarantee that they will be able to exchan ...
... authorised by central banks, as this volatility does not always appear to be related to economic or financial factors. Other concerns are that: (a) unlike the holders of legally established currencies, the holders of virtual currency units typically have no guarantee that they will be able to exchan ...
The Long or Short of it: Determinants of Foreign Currency
... the currency exposures that are present in the international balance sheet. In recent work (Lane and Shambaugh 2007), we have compiled and described the currency composition of foreign asset and liability positions for a broad set of countries over 1990-2004. In that work, we established that the cu ...
... the currency exposures that are present in the international balance sheet. In recent work (Lane and Shambaugh 2007), we have compiled and described the currency composition of foreign asset and liability positions for a broad set of countries over 1990-2004. In that work, we established that the cu ...
Currency competition between Euro and US Dollar
... and applying co-integration approaches, identify four factors as fundamental determinants of the real euro-dollar exchange rate: the international real interest differentials, relative prices in the traded and non-traded goods sectors, the real oil price and the relative fiscal position. From 2001 o ...
... and applying co-integration approaches, identify four factors as fundamental determinants of the real euro-dollar exchange rate: the international real interest differentials, relative prices in the traded and non-traded goods sectors, the real oil price and the relative fiscal position. From 2001 o ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... The monetary theory of exchange rate determination is one of the most recent. It is indeed a very popular model that has generated a lively debate in International Economics and Finance. The theory is last in the well-known tradition of the monetarists or the monetarist school, which regards money a ...
... The monetary theory of exchange rate determination is one of the most recent. It is indeed a very popular model that has generated a lively debate in International Economics and Finance. The theory is last in the well-known tradition of the monetarists or the monetarist school, which regards money a ...
Exchange Rate Volatility and Democratization in Emerging Market
... of economic policy, and therefore better able to anticipate macroeconomic performance, than where policymaking is more opaque. Of course political transparency is a key correlate of democracy so there should be a direct relationship between the degree of democratic development and the amount of curr ...
... of economic policy, and therefore better able to anticipate macroeconomic performance, than where policymaking is more opaque. Of course political transparency is a key correlate of democracy so there should be a direct relationship between the degree of democratic development and the amount of curr ...
32 - Long Island University
... • Capital flight has its largest impact on the country from which the capital is fleeing, but it also affects other countries. • If investors become concerned about the safety of their investments, capital can quickly leave an economy. • Interest rates increase and the domestic real exchange rate de ...
... • Capital flight has its largest impact on the country from which the capital is fleeing, but it also affects other countries. • If investors become concerned about the safety of their investments, capital can quickly leave an economy. • Interest rates increase and the domestic real exchange rate de ...
International Coordination - Federal Reserve Bank of San Francisco
... Chairman Ben Bernanke’s signal that Quantitative Easing would soon be phased out -provoked another sort of complaint from Indian Central Bank Governor Raghuram Rajan: “International monetary cooperation has broken down…The U.S. should worry about the effects of its policies on the rest of the world” ...
... Chairman Ben Bernanke’s signal that Quantitative Easing would soon be phased out -provoked another sort of complaint from Indian Central Bank Governor Raghuram Rajan: “International monetary cooperation has broken down…The U.S. should worry about the effects of its policies on the rest of the world” ...
NBER WORKING PAPER SERIES AT THE CENTRAL BANK: LESSONS FROM SUDAN
... of substitutability is usually reflected in an assumption that import demand and export supply both have high elasticities with respect to the ...
... of substitutability is usually reflected in an assumption that import demand and export supply both have high elasticities with respect to the ...
Mobile termination rates in the EU15 European jurisdictions
... PPP (purchasing power parity) exchange rates are widely used by international organisations as an alternative to monetary exchange rates when making international economic comparisons. They are, in effect, “real” exchange rates, based on a comparison of the relative purchasing power of each country’ ...
... PPP (purchasing power parity) exchange rates are widely used by international organisations as an alternative to monetary exchange rates when making international economic comparisons. They are, in effect, “real” exchange rates, based on a comparison of the relative purchasing power of each country’ ...
IIAC Comments to CSA re the Application of the Order Protection
... will not post on non-protected markets. As such, any benefits given to passive flow on nonprotected markets is not fairly accessible by most agency orders. This issue is not addressed in the Proposed Amendments. The IIAC understands the CSA concerns that clients could be disadvantaged if the proprie ...
... will not post on non-protected markets. As such, any benefits given to passive flow on nonprotected markets is not fairly accessible by most agency orders. This issue is not addressed in the Proposed Amendments. The IIAC understands the CSA concerns that clients could be disadvantaged if the proprie ...