A small estimated euro area model with rational expectations and
... backward-looking expectations would imply that the central bank can exploit systematic expectational errors by market participants.4 As to overlapping wage contracts, we explore the empirical fit of the nominal wage contracting model due to Taylor (1980) as well as three different versions of the re ...
... backward-looking expectations would imply that the central bank can exploit systematic expectational errors by market participants.4 As to overlapping wage contracts, we explore the empirical fit of the nominal wage contracting model due to Taylor (1980) as well as three different versions of the re ...
Money Demand Stability and Inflation Prediction in the Four Largest
... observations raise doubts about the stability of money demand as well as the information content of M3 growth for future inflation—two properties that were the main reasons named by the ECB to build its monetary policy strategy around a monetary aggregate. Hence, further analysis is clearly indicate ...
... observations raise doubts about the stability of money demand as well as the information content of M3 growth for future inflation—two properties that were the main reasons named by the ECB to build its monetary policy strategy around a monetary aggregate. Hence, further analysis is clearly indicate ...
Download Full Article
... currency redenomination. Recorded in the last 4 years, due to hyper inflation, Zimbabwe have been 3 times to the currency redenomination. Zimbabwe's main mistake was doing redenomination when inflation is so high that the redenomination further strengthens the effects of inflation. With extraordinar ...
... currency redenomination. Recorded in the last 4 years, due to hyper inflation, Zimbabwe have been 3 times to the currency redenomination. Zimbabwe's main mistake was doing redenomination when inflation is so high that the redenomination further strengthens the effects of inflation. With extraordinar ...
INTRODUCTION REFORMING THE MONETARY REGIME James A. Dorn
... money continues. Moreover, after the first-order question about the form of the monetary regime is decided, there is still the secondorder question ofhow to implement andmaintain the desired regime. The political economy of monetary reform cannot be ignored. In order to address the fundamental issue ...
... money continues. Moreover, after the first-order question about the form of the monetary regime is decided, there is still the secondorder question ofhow to implement andmaintain the desired regime. The political economy of monetary reform cannot be ignored. In order to address the fundamental issue ...
hefeker neu mmi08 6670809 en
... Empirical evidence shows a marked contrast concerning the choice of exchange rate regime for industrialized and developing countries, with emerging markets falling somewhat in between. Whereas industrial countries (with the notable exception of the member states of the European Union) mostly tend to ...
... Empirical evidence shows a marked contrast concerning the choice of exchange rate regime for industrialized and developing countries, with emerging markets falling somewhat in between. Whereas industrial countries (with the notable exception of the member states of the European Union) mostly tend to ...
Bretton Woods system - Wikipedia, the free encyclopedia
... The experience of the Great Depression was fresh on the minds of public officials. The planners at Bretton Woods hoped to avoid a repeat of the debacle of the 1930s, when intransigent American insistence as a creditor nation on the repayment of Allied war debts, combined with an inclination to isola ...
... The experience of the Great Depression was fresh on the minds of public officials. The planners at Bretton Woods hoped to avoid a repeat of the debacle of the 1930s, when intransigent American insistence as a creditor nation on the repayment of Allied war debts, combined with an inclination to isola ...
Essays on Money, Credit and Fiscal Policy TESI DOCTORAL UPF / 2011
... This thesis tackles three different issues of relevance for economic policy, with an explicit reference to the euro area. Does monetary targeting improve macroeconomic stability? Which role does the banking sector play in the impulse and transmission of shocks? Which fiscal tools have the greatest a ...
... This thesis tackles three different issues of relevance for economic policy, with an explicit reference to the euro area. Does monetary targeting improve macroeconomic stability? Which role does the banking sector play in the impulse and transmission of shocks? Which fiscal tools have the greatest a ...
the appropriateness of intermediate monetary
... this arrangement, these countries were expected to maintain fixed exchange rates against the United States (US) dollar, within a band. Most of these countries also imposed exchange controls on their capital accounts to protect their economies from international inflation. Also in the 1970s, culminat ...
... this arrangement, these countries were expected to maintain fixed exchange rates against the United States (US) dollar, within a band. Most of these countries also imposed exchange controls on their capital accounts to protect their economies from international inflation. Also in the 1970s, culminat ...
LEADING INDICATORS OF CURRENCY AND BANKING CRISES
... been amended and reformulated repeatedly over time, models using this approach usually emphasize the following potential indicators of currency crisis: movements in the real exchange rate, merchandise trade balance or current account, real wages and interest rates. Recent models abandon explanations ...
... been amended and reformulated repeatedly over time, models using this approach usually emphasize the following potential indicators of currency crisis: movements in the real exchange rate, merchandise trade balance or current account, real wages and interest rates. Recent models abandon explanations ...
Regional currency areas and the use of foreign currencies
... necessary might disappear, exit strategies were typically not contemplated for fear of harming the credibility of the commitment. A third important question concerns the necessity to put constraints on other policies, in particular fiscal policy. It is generally accepted that in RCAs uncoordinated f ...
... necessary might disappear, exit strategies were typically not contemplated for fear of harming the credibility of the commitment. A third important question concerns the necessity to put constraints on other policies, in particular fiscal policy. It is generally accepted that in RCAs uncoordinated f ...
The Maastricht Inflation Criterion: How Unpleasant Is Purgatory?
... inflation rate of the three European Union (EU) member states with the most stable prices— was designed in the early 1990s to bring such “high-inflation” countries as Italy and the United Kingdom in line with such “low-inflation” countries as Germany and the Netherlands prior to the introduction of ...
... inflation rate of the three European Union (EU) member states with the most stable prices— was designed in the early 1990s to bring such “high-inflation” countries as Italy and the United Kingdom in line with such “low-inflation” countries as Germany and the Netherlands prior to the introduction of ...
Forecasting of Exchange Rate Disertation
... regarded as a simple task. Euro currency first came into the market as currency on January 1999. However, it was used as a legal tender especially in the retail transactions among customers on January 2002. This shows that it is only a decade and being specific it’s only fourteen years since the fir ...
... regarded as a simple task. Euro currency first came into the market as currency on January 1999. However, it was used as a legal tender especially in the retail transactions among customers on January 2002. This shows that it is only a decade and being specific it’s only fourteen years since the fir ...
Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero
... Figure 15 Life Expectancy and Effective Retirement Age in the Eurozone.......................... 16 Figure 16 Income Inequality in the Eurozone........................................................................ 16 Figure 17 Income Distribution in the Eurozone by Quintile ....................... ...
... Figure 15 Life Expectancy and Effective Retirement Age in the Eurozone.......................... 16 Figure 16 Income Inequality in the Eurozone........................................................................ 16 Figure 17 Income Distribution in the Eurozone by Quintile ....................... ...
Much Appreciated: The Rise of the Canadian Dollar, 2002-2008
... when they move do so very slowly. By contrast, nominal and real exchange rates are highly volatile, and move quickly. There is nothing very surprising in this. If PPP was true, then no-one would discuss the exchange rate, since it would really only be a way of converting between currencies, but it ...
... when they move do so very slowly. By contrast, nominal and real exchange rates are highly volatile, and move quickly. There is nothing very surprising in this. If PPP was true, then no-one would discuss the exchange rate, since it would really only be a way of converting between currencies, but it ...
The interest rate pass-through in the euro area during
... policy to influence bank retail rates is of particular interest for the European Central Bank (ECB). There exists a large literature on the effect changes in monetary policy rates have on bank retail rates, i.e. the interest rate pass-through (IP).1 Stylized facts about the IP for the euro area befo ...
... policy to influence bank retail rates is of particular interest for the European Central Bank (ECB). There exists a large literature on the effect changes in monetary policy rates have on bank retail rates, i.e. the interest rate pass-through (IP).1 Stylized facts about the IP for the euro area befo ...
Modern Money Theory 101: A Reply to Critics
... theoretical elements are summarized by saying that monetarily sovereign governments are always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to ...
... theoretical elements are summarized by saying that monetarily sovereign governments are always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to ...
Towards a Balanced Policy Mix under EMU: Co
... Germany and Italy with deficits near the ceiling of 3% set by the Stability and Growth Pact cannot rely on expansionary fiscal policy to boost the economy. The ‘hotspots’ Spain, Portugal Ireland (and more recently also Finland) are not prevented from exercising fiscal restraint. Moreover, one should ...
... Germany and Italy with deficits near the ceiling of 3% set by the Stability and Growth Pact cannot rely on expansionary fiscal policy to boost the economy. The ‘hotspots’ Spain, Portugal Ireland (and more recently also Finland) are not prevented from exercising fiscal restraint. Moreover, one should ...
Modern Money Theory 101: A Reply to Critics
... theoretical elements are summarized by saying that monetarily sovereign governments are always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to ...
... theoretical elements are summarized by saying that monetarily sovereign governments are always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to ...
Economic and Social Council African Union
... Declaration also called for acceleration of the integration process. This was followed in 2001, by the 37th Ordinary Summit in Lusaka, Zambia, which established the African Union along with the NEPAD Programme. In conformity with the economic integration fast tracking as implied in the Sirte Declara ...
... Declaration also called for acceleration of the integration process. This was followed in 2001, by the 37th Ordinary Summit in Lusaka, Zambia, which established the African Union along with the NEPAD Programme. In conformity with the economic integration fast tracking as implied in the Sirte Declara ...
WO R K I N G PA P... WHAT IS GLOBAL EXCESS LIQUIDITY, AND DOES IT MATTER?
... fathers” of monetarism (Milton Friedman, Anna Schwartz, Karl Brunner, Allan Meltzer and so on) emphasising that, due to a number of capital market imperfections, money and nonmonetary assets may be imperfectly substitutable. As a consequence, the behaviour of monetary aggregates may reflect not only ...
... fathers” of monetarism (Milton Friedman, Anna Schwartz, Karl Brunner, Allan Meltzer and so on) emphasising that, due to a number of capital market imperfections, money and nonmonetary assets may be imperfectly substitutable. As a consequence, the behaviour of monetary aggregates may reflect not only ...
Inflation Targets Reconsidered
... so that global investment has actually increased as a fraction of world GDP. Moreover, up to the recent financial crisis, the rate of return on capital in advanced economies remained high by historical standards (cf. IMF 2014).2 Hence, if equilibrium real interest rates have declined, this must be b ...
... so that global investment has actually increased as a fraction of world GDP. Moreover, up to the recent financial crisis, the rate of return on capital in advanced economies remained high by historical standards (cf. IMF 2014).2 Hence, if equilibrium real interest rates have declined, this must be b ...
The De Facto Exchange Rate Regimes in East Asia over 2003
... heavily when its economy is under the threat of economic and financial crises. Sometimes, central banks instilled liquidity to market in afraid of the impact of an overvalued currency on the real economy. One example is the central bank of Switzerland successfully stabilized the Swiss franc during t ...
... heavily when its economy is under the threat of economic and financial crises. Sometimes, central banks instilled liquidity to market in afraid of the impact of an overvalued currency on the real economy. One example is the central bank of Switzerland successfully stabilized the Swiss franc during t ...
The Renminbi and Exchange Rate Regimes in East Asia
... second largest economic power (measured by GDP) has been accompanied by the PRC’s greater economic influence over emerging economies in East Asia.1 The dependence of these economies on the PRC through trade and investment has risen over time. The PRC used to peg its currency, the renminbi (RMB), tig ...
... second largest economic power (measured by GDP) has been accompanied by the PRC’s greater economic influence over emerging economies in East Asia.1 The dependence of these economies on the PRC through trade and investment has risen over time. The PRC used to peg its currency, the renminbi (RMB), tig ...
Can the Renminbi Rise as a Global Currency? The Political
... renminbi obtained overseas. Finally, it has begun providing foreign aid denominated in renminbi. Such Chinese government efforts for renminbi internationalization have recently begun to produce meaningful outcomes. The volume of cross-border trade settled in renminbi jumped from 3.6 billion renminbi ...
... renminbi obtained overseas. Finally, it has begun providing foreign aid denominated in renminbi. Such Chinese government efforts for renminbi internationalization have recently begun to produce meaningful outcomes. The volume of cross-border trade settled in renminbi jumped from 3.6 billion renminbi ...
Free Full Text ( Final Version , 1mb )
... run current account surpluses; and achieve export-led growth and industrialization. This is the Bretton Woods II. The BWII have been used by DFG to explain the global current account imbalances in the last decade, and DFG have argued that this system of fixed and heavily managed exchange rates is fu ...
... run current account surpluses; and achieve export-led growth and industrialization. This is the Bretton Woods II. The BWII have been used by DFG to explain the global current account imbalances in the last decade, and DFG have argued that this system of fixed and heavily managed exchange rates is fu ...
History of the euro
The euro came into existence on 1 January 1999, although it had been a goal of the European Union (EU) and its predecessors since the 1960s. After tough negotiations, particularly due to opposition from the United Kingdom, the Maastricht Treaty entered into force in 1993 with the goal of creating an economic and monetary union by 1999 for all EU states except the UK and Denmark (even though Denmark has a fixed exchange rate policy with the euro).In 1999 the currency was born virtually and in 2002 notes and coins began to circulate. It rapidly took over from the former national currencies and slowly expanded behind the rest of the EU. In 2009 the Lisbon Treaty finalised its political authority, the Eurogroup, alongside the European Central Bank.