Hayek - currency competition and European monetary union
... information in the most synthetic and relevant way for the purpose of economic calculus. Now, prices – impersonal signals that provide for an extensive social division of labour – are expressed in terms of money. Irving Fisher coined the term “money yardstick”.9 The unit of account represented by th ...
... information in the most synthetic and relevant way for the purpose of economic calculus. Now, prices – impersonal signals that provide for an extensive social division of labour – are expressed in terms of money. Irving Fisher coined the term “money yardstick”.9 The unit of account represented by th ...
Ehrmann - Viessmann European Research Centre
... Eurobarometer survey mistrusting the ECB is above sample mean – Excessive deficit procedure; dummy when procedure in place – Negative growth differential (Alesina and Cukierman 1990, Rogoff and Sibert 1988); dummy if national growth below euro area – Left-wing party (Hibbs 1977, Powell and Whitten 1 ...
... Eurobarometer survey mistrusting the ECB is above sample mean – Excessive deficit procedure; dummy when procedure in place – Negative growth differential (Alesina and Cukierman 1990, Rogoff and Sibert 1988); dummy if national growth below euro area – Left-wing party (Hibbs 1977, Powell and Whitten 1 ...
Currency Substitution, Unofficial Dollarization and Estimates of
... to which these countries are already de facto euroized or dollarized. The major limitation of any analysis of unofficial foreign currency use is that the amount of foreign cash in circulation (FCC) is typically unknown. There is virtually no reliable empirical information concerning the actual exten ...
... to which these countries are already de facto euroized or dollarized. The major limitation of any analysis of unofficial foreign currency use is that the amount of foreign cash in circulation (FCC) is typically unknown. There is virtually no reliable empirical information concerning the actual exten ...
MONETARY POLICY AND TRANSITION IN SOUTHEAST EUROPE
... 1. Factors determining monetary policy strategy The region of southeast Europe consists of seven countries of which six are low income and one is medium income economy. The average GDP per capita at market exchange rate in 1998 was USD 1,793. The lowest GDP per capita had Albania (USD 1,110 at marke ...
... 1. Factors determining monetary policy strategy The region of southeast Europe consists of seven countries of which six are low income and one is medium income economy. The average GDP per capita at market exchange rate in 1998 was USD 1,793. The lowest GDP per capita had Albania (USD 1,110 at marke ...
... Mid 2014, the emu remains unfinished, but the Banking Union as agreed until now has strengthened it in important ways, although crucial pieces are still missing to achieve a truly European banking union. After the European elections of May 2014, one can hardly expect more progress due to political f ...
Is Monetary Policy
... the crisis, seen in figure 1, has similar patterns in the four economies shown. And yet, the patterns of unemployment, including the long-term average of the rate of unemployment but also its movement over the business cycle, differ greatly from one economy to another. Central banks cannot ensure th ...
... the crisis, seen in figure 1, has similar patterns in the four economies shown. And yet, the patterns of unemployment, including the long-term average of the rate of unemployment but also its movement over the business cycle, differ greatly from one economy to another. Central banks cannot ensure th ...
NBER WORKING PAPER SERIES THE GREAT EXCHANGE RATE DEBATE AFTER ARGENTINA Sebastian Edwards
... did they expect the nominal devaluation to exceed 60 percent.4 Growth forecasts for 2002 indicate that GDP will contract between 15 and 20 percent; for 2003 most analysts expect and additional drop in GDP of the order of 5 percent. These tragic events showed that in a de-facto dollarized economy a d ...
... did they expect the nominal devaluation to exceed 60 percent.4 Growth forecasts for 2002 indicate that GDP will contract between 15 and 20 percent; for 2003 most analysts expect and additional drop in GDP of the order of 5 percent. These tragic events showed that in a de-facto dollarized economy a d ...
Currency Privatization as a Substitute for Currency
... the outstanding peso monetary base, including both paper pesos and commercial bank reserves. Bank assets and liabilities are redenominated in dollars, according to the established exchange rate, and banks are responsible for redeeming their deposits in dollars. In order to be able to do so, they wil ...
... the outstanding peso monetary base, including both paper pesos and commercial bank reserves. Bank assets and liabilities are redenominated in dollars, according to the established exchange rate, and banks are responsible for redeeming their deposits in dollars. In order to be able to do so, they wil ...
Special Drawing Rights: An Explanation of Their Current Role and Future Function
... projected to reach 100% in 2023, and 200% by 2038 (Burman, 2010). This large of a debt to GDP ratio happened once before in the U.S. during the second world war, but this is expected to happen in times of crisis, as opposed to the current debt being created from entitlement spending (Amaral, 2010). ...
... projected to reach 100% in 2023, and 200% by 2038 (Burman, 2010). This large of a debt to GDP ratio happened once before in the U.S. during the second world war, but this is expected to happen in times of crisis, as opposed to the current debt being created from entitlement spending (Amaral, 2010). ...
Worlds Apart? Labour Unions, Wages and Monetary Integration
... safe umbrella against the turmoil in financial markets. Less than two years later, when the financial crisis of 2007-08 rapidly spilled over into a sovereign debt crisis on the continent and beyond, the single currency was facing an existential crisis. The combination of massive bank bail-outs, low ...
... safe umbrella against the turmoil in financial markets. Less than two years later, when the financial crisis of 2007-08 rapidly spilled over into a sovereign debt crisis on the continent and beyond, the single currency was facing an existential crisis. The combination of massive bank bail-outs, low ...
Document
... The European Union (EU27) and particularly the European Monetary Union (EMU) of 17 countries have built up since EMU inception strong and rising current account imbalances and corresponding financial imbalances. In this paper, I want to explore the driving forces for the imbalances, fathom their ris ...
... The European Union (EU27) and particularly the European Monetary Union (EMU) of 17 countries have built up since EMU inception strong and rising current account imbalances and corresponding financial imbalances. In this paper, I want to explore the driving forces for the imbalances, fathom their ris ...
MONEY AND THE MARKET: WHAT ROLE FOR Kevin Dowd
... perhaps, redemption media to be used by the commercial banking system, but it would not issue deposits as such. Currency boards typically hold reasonably safe assets that are dominated in the currency to which the domestic currency is pegged, but that also bear some pecuniary return (for example, tr ...
... perhaps, redemption media to be used by the commercial banking system, but it would not issue deposits as such. Currency boards typically hold reasonably safe assets that are dominated in the currency to which the domestic currency is pegged, but that also bear some pecuniary return (for example, tr ...
The great exchange rate debate after Argentina Sebastian Edwards ∗
... objectives, but an important question is how to design such institutions. Some have argued that the EMU’s “Growth and Stability Pact” is the type of institution that would help deal with fiscal federalism issues.11 Whether the pact will actually live up to its promises is still to be seen, however. ...
... objectives, but an important question is how to design such institutions. Some have argued that the EMU’s “Growth and Stability Pact” is the type of institution that would help deal with fiscal federalism issues.11 Whether the pact will actually live up to its promises is still to be seen, however. ...
Is Monetary Policy Overburdened?
... following the crisis, seen in figure 1, has similar patterns in the four economies shown. And yet, the patterns of unemployment, including the long-term average of the rate of unemployment but also its movement over the business cycle, differ greatly from one economy to another. Central banks cannot ...
... following the crisis, seen in figure 1, has similar patterns in the four economies shown. And yet, the patterns of unemployment, including the long-term average of the rate of unemployment but also its movement over the business cycle, differ greatly from one economy to another. Central banks cannot ...
NBER WORKING PAPER SERIES EXPERIENCE OF AND LESSONS FROM EXCHANGE RATE
... entered the 1990s with widely varying fundamentals. To over-generalize, Latin American countries before the 1990s traditionally had low national savings rates, profligate fiscal and monetary policies, and overvalued currencies, together with a large and growthinhibiting role of the government in the ...
... entered the 1990s with widely varying fundamentals. To over-generalize, Latin American countries before the 1990s traditionally had low national savings rates, profligate fiscal and monetary policies, and overvalued currencies, together with a large and growthinhibiting role of the government in the ...
Heading 1 used for the Chapter heading
... monetary integration. For participating nations, monetary integration implies a common currency, a single exchange rate, a single monetary policy, and a single central bank to oversee the monetary policy. ...
... monetary integration. For participating nations, monetary integration implies a common currency, a single exchange rate, a single monetary policy, and a single central bank to oversee the monetary policy. ...
new version - the School of Economics and Finance
... Argentina’s Currency Board Central bank could do nothing to control this—exchange rate was fixed. But world organizations (World Bank, IMF) helped out. Another recession in 1999 eventually lead to the collapse of the currency board in 2002. The peso depreciated by 70%, and a financial crisis en ...
... Argentina’s Currency Board Central bank could do nothing to control this—exchange rate was fixed. But world organizations (World Bank, IMF) helped out. Another recession in 1999 eventually lead to the collapse of the currency board in 2002. The peso depreciated by 70%, and a financial crisis en ...
Working Paper 74 – The Great Exchange Rate Debate after
... did they expect the nominal devaluation to exceed 60 percent.4 Growth forecasts for 2002 indicate that GDP will contract between 15 and 20 percent; for 2003 most analysts expect and additional drop in GDP of the order of 5 percent. These tragic events showed that in a de-facto dollarized economy a d ...
... did they expect the nominal devaluation to exceed 60 percent.4 Growth forecasts for 2002 indicate that GDP will contract between 15 and 20 percent; for 2003 most analysts expect and additional drop in GDP of the order of 5 percent. These tragic events showed that in a de-facto dollarized economy a d ...
The Tale of Two Great Crises
... shown in Figure 5. The sample annual average is 2.6 per cent. There are six periods when per-capita growth is negative, two of which connected with the first world war, one with the second world and its aftermath and three others with peace time, of which one is the GD and the other is the GFC. The ...
... shown in Figure 5. The sample annual average is 2.6 per cent. There are six periods when per-capita growth is negative, two of which connected with the first world war, one with the second world and its aftermath and three others with peace time, of which one is the GD and the other is the GFC. The ...
Uruguay: Two Years of Monetary Policy in Adverse Conditions
... intervention. Banco Central de Venezuela, Serie Documentos de Trabajo, 41, March 2003. 2004. Interest rate rules Vs Money Growth Rules: Some Theoretical Issues and an Empirical Application for Venezuela. Unpublished working paper. Poole, William (1994). Monetary Aggregates Targeting in a Low – Infla ...
... intervention. Banco Central de Venezuela, Serie Documentos de Trabajo, 41, March 2003. 2004. Interest rate rules Vs Money Growth Rules: Some Theoretical Issues and an Empirical Application for Venezuela. Unpublished working paper. Poole, William (1994). Monetary Aggregates Targeting in a Low – Infla ...
4. Monetary Aggregates and Scope of Use
... When selecting monetary aggregates, both international standards on monetary statistics, and features of Armenian economy and financial market shall be considered. It should be noted that monetary indicators can change during time due to the variety of financial instruments used, further development ...
... When selecting monetary aggregates, both international standards on monetary statistics, and features of Armenian economy and financial market shall be considered. It should be noted that monetary indicators can change during time due to the variety of financial instruments used, further development ...
The GCC Monetary Union: Choice of Exchange Rate Regime
... members states have decided that a monetary council will be established by the end of 2009 to serve as a transition body in preparation for the single currency and the GCC Central Bank. A set of five convergence criteria (on inflation, interest rates, reserves, fiscal balance, and public debt), simi ...
... members states have decided that a monetary council will be established by the end of 2009 to serve as a transition body in preparation for the single currency and the GCC Central Bank. A set of five convergence criteria (on inflation, interest rates, reserves, fiscal balance, and public debt), simi ...
Negative Nominal Interest Rates
... that is, free of default risk, nominal yield on non-monetary assets. ...
... that is, free of default risk, nominal yield on non-monetary assets. ...
NBER WORKING PAPER SERIES NEGATIVE NOMINAL INTEREST RATES: Willem H. Buiter
... that is, free of default risk, nominal yield on non-monetary assets. ...
... that is, free of default risk, nominal yield on non-monetary assets. ...
Negative Nominal Interest Rates:Three ways to overcome the zero lower bound
... that is, free of default risk, nominal yield on non-monetary assets. ...
... that is, free of default risk, nominal yield on non-monetary assets. ...
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.