Morris Inflationdynamicsandtheparallelmarketforforeignexchange
... the Government if Government has a deficit on its foreign exchange account. The result is reversed if Government has a surplus on the foreign exchange account. This result is obviously going to depend on exactly which items are denominated in local currency or dollars. Two critical items are those e ...
... the Government if Government has a deficit on its foreign exchange account. The result is reversed if Government has a surplus on the foreign exchange account. This result is obviously going to depend on exactly which items are denominated in local currency or dollars. Two critical items are those e ...
The Research of Exchange Rate Change, Export Structure and
... The different amount and liquidities of different factors brings on the flow and structure change of factor-endowments, which induces the imbalance. Some researchers took the infinite supply capability of America’s dollar and the infinite supply capability of China’s labor factor as the cause of imb ...
... The different amount and liquidities of different factors brings on the flow and structure change of factor-endowments, which induces the imbalance. Some researchers took the infinite supply capability of America’s dollar and the infinite supply capability of China’s labor factor as the cause of imb ...
A Macroeconomic Theory of the Open Economy
... The U.S. real exchange rate (E) measures the quantity of foreign goods & services that trade for one unit of U.S. goods & services. ...
... The U.S. real exchange rate (E) measures the quantity of foreign goods & services that trade for one unit of U.S. goods & services. ...
Michael D. Bordo and AnnaJ. Schwartz TRANSMISSION OF REAL AND MONETARY
... Disturbances are both monetary and real in nature. They are transmitted by a number of channels, of which the most prominent is the current account of the balance of payments with effects on relative prices, output, and income, and by capital flows induced by interest rate differentials that establi ...
... Disturbances are both monetary and real in nature. They are transmitted by a number of channels, of which the most prominent is the current account of the balance of payments with effects on relative prices, output, and income, and by capital flows induced by interest rate differentials that establi ...
Costs of Adopting a Common European Currency. Analysis in Terms
... (inflation). We can notice that a shock of the demand creates different problems to the two countries. In the absence of the possibility to use the rate of exchange(1), an automatic balance of the two countries’ economies is possible if the wages in X and in Y are flexible, and the labor movement is ...
... (inflation). We can notice that a shock of the demand creates different problems to the two countries. In the absence of the possibility to use the rate of exchange(1), an automatic balance of the two countries’ economies is possible if the wages in X and in Y are flexible, and the labor movement is ...
Chinese Foreign Exchange Reserves, Policy Choices and the U.S.
... their exchange rates partly to facilitate planning for businesses that import or export or use international financial markets. Governments in developed economies see less need for exchange rate management because businesses in those markets can more easily insulate themselves from exchange rate flu ...
... their exchange rates partly to facilitate planning for businesses that import or export or use international financial markets. Governments in developed economies see less need for exchange rate management because businesses in those markets can more easily insulate themselves from exchange rate flu ...
Economic Review - Econsult Botswana
... investing in Botswana were, therefore, much reduced and, while it could be argued that the interest rate on the bond was high precisely to compensate for risk, including that of devaluation, the timing was interpreted – wrongly – as being deliberately malicious. Recovering from a damaged internation ...
... investing in Botswana were, therefore, much reduced and, while it could be argued that the interest rate on the bond was high precisely to compensate for risk, including that of devaluation, the timing was interpreted – wrongly – as being deliberately malicious. Recovering from a damaged internation ...
Lesson 4
... transportation costs and barriers between those markets are not important. Why? Suppose the price of pizza at one restaurant is $20, while the price of the same pizza at an identical restaurant across the street is $40. What do you predict to happen? Many people would buy the $20 pizza, few wo ...
... transportation costs and barriers between those markets are not important. Why? Suppose the price of pizza at one restaurant is $20, while the price of the same pizza at an identical restaurant across the street is $40. What do you predict to happen? Many people would buy the $20 pizza, few wo ...
PDF
... operations to Bank Negara Indonesia, the largest state-owned bank (Johnson, 1998). Another 38 banks were liquidated later in April 1999. The second event that Kaminsky and Reinhart (1999) associate with banking crises is the need for large-scale bailout packages such as were offered by the Indonesia ...
... operations to Bank Negara Indonesia, the largest state-owned bank (Johnson, 1998). Another 38 banks were liquidated later in April 1999. The second event that Kaminsky and Reinhart (1999) associate with banking crises is the need for large-scale bailout packages such as were offered by the Indonesia ...
Fixed Exchange Rates
... • Tourists when they travel to any country they need to exchange their currency into that country’s currency • Banks that have too much of too little of foreign money can trade for what they need in the foreign exchange market. • The results of trading in foreign exchange are illustrated for four fo ...
... • Tourists when they travel to any country they need to exchange their currency into that country’s currency • Banks that have too much of too little of foreign money can trade for what they need in the foreign exchange market. • The results of trading in foreign exchange are illustrated for four fo ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL PERSPECTIVES
... current account ought to depend on government bonds and taxes, one major point about the equilibrium of this model is that the values of net foteign assets do not depend directly on the financing of the government sector. To see why, consider the dollar value of the tax-related asset whose payoff is ...
... current account ought to depend on government bonds and taxes, one major point about the equilibrium of this model is that the values of net foteign assets do not depend directly on the financing of the government sector. To see why, consider the dollar value of the tax-related asset whose payoff is ...
Bade_Parkin_Macro_Lecture_CH20
... Net taxes minus government expenditure on goods and services. Table 20.2 on the next slide shows what determines net exports. ...
... Net taxes minus government expenditure on goods and services. Table 20.2 on the next slide shows what determines net exports. ...
Foreign Currency Transactions
... - gains and losses on the effective portion of the hedge go to OCI; other gains and losses go to current earnings ...
... - gains and losses on the effective portion of the hedge go to OCI; other gains and losses go to current earnings ...
An Analysis of the Carry Trade - Trace: Tennessee Research and
... from Japan, coupled with high-interest investment in Australia had to remove their capital to prevent losses. Those who had been a part of this investment strategy for most of the previous decade saw large profits, while investors who had entered the carry trade strategy shortly before the unwinding ...
... from Japan, coupled with high-interest investment in Australia had to remove their capital to prevent losses. Those who had been a part of this investment strategy for most of the previous decade saw large profits, while investors who had entered the carry trade strategy shortly before the unwinding ...
1 THE KEYNES PLAN, THE MARSHALL PLAN AND THE IMCU
... peoples thoughts and actions create the future, while all the mathematical risk management models presume that using past market data the computer models discovers the future that has already been predetermined by existing market fundamentals. In an uncertain world, by entering into money contracts, ...
... peoples thoughts and actions create the future, while all the mathematical risk management models presume that using past market data the computer models discovers the future that has already been predetermined by existing market fundamentals. In an uncertain world, by entering into money contracts, ...
RESEARCH SEMINAR IN INTERNATIONAL ECONOMICS
... sample of countries over an eighteen-year period. The results indicate that there is considerable exchange rate exposure at both the industry and firm level. I. Defining Exchange Rate Exposure A firm is said to exhibit exchange rate exposure if its share value is influenced by changes in currency va ...
... sample of countries over an eighteen-year period. The results indicate that there is considerable exchange rate exposure at both the industry and firm level. I. Defining Exchange Rate Exposure A firm is said to exhibit exchange rate exposure if its share value is influenced by changes in currency va ...
LDH161211
... Underlying documents to be submitted while booking contract. Grace period of 15 days provided after which contract be cancelled and no exchange gain to be passed. Certificate that the exposure is not covered with any AD category 1 bank and if covered in parts, the details thereof. Quarterly certific ...
... Underlying documents to be submitted while booking contract. Grace period of 15 days provided after which contract be cancelled and no exchange gain to be passed. Certificate that the exposure is not covered with any AD category 1 bank and if covered in parts, the details thereof. Quarterly certific ...
The EMU and the Theory of Optimum Currency Areas
... monetary efficiency gain for Spanish traders than a fixed Peseta/Dollar rate. Similarly, the efficiency gain from a fixed Peseta/Euro rate is greater when Spain’s EMU trade is extensive than when it is small. The monetary efficiency gain from pegging the Peseta to EMU currencies will also be higher ...
... monetary efficiency gain for Spanish traders than a fixed Peseta/Dollar rate. Similarly, the efficiency gain from a fixed Peseta/Euro rate is greater when Spain’s EMU trade is extensive than when it is small. The monetary efficiency gain from pegging the Peseta to EMU currencies will also be higher ...
INPUT PRICES: THE ROLE OF ECONOMIC STRUCTURE
... international finance (Whitman, 1969; Bruno and Sachs, 1979; KatseliPapaefstratiou, 1980; Flood and Marion, 1980). Section 2 of this paper develops a simple general equilibrium model to analyze ...
... international finance (Whitman, 1969; Bruno and Sachs, 1979; KatseliPapaefstratiou, 1980; Flood and Marion, 1980). Section 2 of this paper develops a simple general equilibrium model to analyze ...
Exchange Rates, the Balance of Payments, and Trade
... 18. Which of the following combinations is plausible, as it relates to a nation's balance of payments? A) current account = $ + 40 billion; capital account = $ + 20 billion; official reserves account = $ - 50 billion. B) current account - $ + 50 billion; capital account = $ - 20 billion; official re ...
... 18. Which of the following combinations is plausible, as it relates to a nation's balance of payments? A) current account = $ + 40 billion; capital account = $ + 20 billion; official reserves account = $ - 50 billion. B) current account - $ + 50 billion; capital account = $ - 20 billion; official re ...
INTRODUCTION DOLLARS, DEFICITS, AND TRADE James A. Dorn
... bankers and ultimately on the politicians they serve. Other characteristics ofthe post—Bretton Woods landscape include floating exchange rates for the dollar and other key currencies; wide swings in the foreign exéhange value ofthe dollar; persistent U.S. budget and trade ...
... bankers and ultimately on the politicians they serve. Other characteristics ofthe post—Bretton Woods landscape include floating exchange rates for the dollar and other key currencies; wide swings in the foreign exéhange value ofthe dollar; persistent U.S. budget and trade ...
NBER WORKING PAPER SERIES EXCHANGE RATE FLEXIBILITY AND Jorge Braga de Macedo
... exchange rate, comparative static results can then show the effects of, for instance, a current or expected foreign cyclical upturn on the home ...
... exchange rate, comparative static results can then show the effects of, for instance, a current or expected foreign cyclical upturn on the home ...
DOLLARIZATION, THE FUNCTIONS OF A CENTRAL BANK AND
... deposits and assets denominated in one or more of what are perceived as strong (safe haven) foreign currencies. Especially for most small, open economies, whether the nation dollarizes or maintains its own domestic currency, any financial system problem tends to become an external financial problem ...
... deposits and assets denominated in one or more of what are perceived as strong (safe haven) foreign currencies. Especially for most small, open economies, whether the nation dollarizes or maintains its own domestic currency, any financial system problem tends to become an external financial problem ...