A survey of literature on the equilibrium real exchange rate an
... of an equation for the real exchange rate, as a function of its fundamental determinants. In this approach, the equilibrium path of the exchange rate corresponds to the fitted values of that equation, using the observed values of the economic fundamentals assumed to have long run effects. In general ...
... of an equation for the real exchange rate, as a function of its fundamental determinants. In this approach, the equilibrium path of the exchange rate corresponds to the fitted values of that equation, using the observed values of the economic fundamentals assumed to have long run effects. In general ...
del08 wollmershaeuser 7196267 de
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
PDF Download
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
Currency Crises
... monetary policy. In practice, this means that it must be willing to raise domestic interest rates high enough to maintain the attractiveness of its currency to speculators. But, as the examples above show, many countries with pegged exchange rate regimes at some time or another have found forgoing a ...
... monetary policy. In practice, this means that it must be willing to raise domestic interest rates high enough to maintain the attractiveness of its currency to speculators. But, as the examples above show, many countries with pegged exchange rate regimes at some time or another have found forgoing a ...
The economics of digital currencies
... hold the digital record and are trusted to ensure its validity. With digital currencies, by contrast, the ledger containing the record of all transactions by all users is publicly available to all. Rather than requiring users to have trust in special institutions, reliance is placed on the network a ...
... hold the digital record and are trusted to ensure its validity. With digital currencies, by contrast, the ledger containing the record of all transactions by all users is publicly available to all. Rather than requiring users to have trust in special institutions, reliance is placed on the network a ...
The economics of digital currencies
... hold the digital record and are trusted to ensure its validity. With digital currencies, by contrast, the ledger containing the record of all transactions by all users is publicly available to all. Rather than requiring users to have trust in special institutions, reliance is placed on the network a ...
... hold the digital record and are trusted to ensure its validity. With digital currencies, by contrast, the ledger containing the record of all transactions by all users is publicly available to all. Rather than requiring users to have trust in special institutions, reliance is placed on the network a ...
MONETARY REFORM THE CASE GOLD Convertibility, Monetary Overhang,
... perpetual budgetary hemorrhage and “soft budget” financing of state enterprises is stopped (this is why supply-side tax policies and privatization are so essential). By some estimates, the stock of rubles (measured by exchange rates that often priced the ruble below purchasing power parity) was wort ...
... perpetual budgetary hemorrhage and “soft budget” financing of state enterprises is stopped (this is why supply-side tax policies and privatization are so essential). By some estimates, the stock of rubles (measured by exchange rates that often priced the ruble below purchasing power parity) was wort ...
ECB move `may hurt investors`
... ECB move ‘may hurt investors’ LONDON: A large-scale bond-buying programme by the European Central Bank (ECB) could increase losses for investors if the euro zone had to write down public debt again, according to a lawyer who advised bondholders in the 2012 Greek debt restructuring. Investors have be ...
... ECB move ‘may hurt investors’ LONDON: A large-scale bond-buying programme by the European Central Bank (ECB) could increase losses for investors if the euro zone had to write down public debt again, according to a lawyer who advised bondholders in the 2012 Greek debt restructuring. Investors have be ...
Currency Strategy 2015-09
... currencies heavily dependent on commodity exports to EM/China, whose central banks have scope to cut interest rates further and whose currencies are still overvalued will depreciate further (including the AUD and NZD). Regarding the previously bullish USD outlook, prospects have admittedly deteriora ...
... currencies heavily dependent on commodity exports to EM/China, whose central banks have scope to cut interest rates further and whose currencies are still overvalued will depreciate further (including the AUD and NZD). Regarding the previously bullish USD outlook, prospects have admittedly deteriora ...
sturm new 6675605 en
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
... It is defined as the gap between the optimal area-wide interest rate, i∗EA,t , and the optimal interest rate that would prevail in country j, if it was able to follow a country-specific interest rate policy, i∗j,t . A negative value for Sj,t implies that actual monetary policy of the ECB for countr ...
Is Mercosur an optimum currency area? An assessment using
... β s were not significantly different from zero. This at first suggests leaving the USA out from the potential currency area (see Enders and Hurn 1994). However, the cointegration vector parameter reflects not only the trade relation but also broader fundamental macro variables tracking the linkages ...
... β s were not significantly different from zero. This at first suggests leaving the USA out from the potential currency area (see Enders and Hurn 1994). However, the cointegration vector parameter reflects not only the trade relation but also broader fundamental macro variables tracking the linkages ...
The Feasibility of a Monetary Union in MERCOSUR
... called an “Optimum Currency Area”. Mundell suggested that if labor and capital “are mobile across national boundaries then a flexible exchange rate system ...
... called an “Optimum Currency Area”. Mundell suggested that if labor and capital “are mobile across national boundaries then a flexible exchange rate system ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... popular, and would motivate support for the currency reform, popular capitalism, and a transition to a market economy (Pifiera 1991). Step 5: What restrictions on foreign exchange and foreign banks are necessary? None. Without restrictions on foreign exchange, currency competition can exist, not onl ...
... popular, and would motivate support for the currency reform, popular capitalism, and a transition to a market economy (Pifiera 1991). Step 5: What restrictions on foreign exchange and foreign banks are necessary? None. Without restrictions on foreign exchange, currency competition can exist, not onl ...
Does the Canadian economy suffer from Dutch Disease?
... of policy makers to express big concerns about the seriousness of such a phenomenon in Canada. To what extent can we ascribe the decrease in manufacturing employment to the rise in oil prices? A first and important step is to test whether the evolution of the Canadian currency has been driven by th ...
... of policy makers to express big concerns about the seriousness of such a phenomenon in Canada. To what extent can we ascribe the decrease in manufacturing employment to the rise in oil prices? A first and important step is to test whether the evolution of the Canadian currency has been driven by th ...
PDF Download
... a ‘foreign’ currency. This is because a central bank can in principle act as a lender of last resort for the sovereign, i.e. print money and buy government bonds (as the Federal Reserve, the Bank of England or the Bank of Japan did during the crisis). While the ECB has also started such a programme, ...
... a ‘foreign’ currency. This is because a central bank can in principle act as a lender of last resort for the sovereign, i.e. print money and buy government bonds (as the Federal Reserve, the Bank of England or the Bank of Japan did during the crisis). While the ECB has also started such a programme, ...
Mizuho Dealer`s Eye
... 1. Review of the Previous Month As market participants focused on the possibility of a U.S. rate hike within the year, the dollar/yen pair moved with a heavy topside in September on lackluster U.S. economic indicators and concerns of a Chinese economic slowdown. With the FOMC holding off from raisin ...
... 1. Review of the Previous Month As market participants focused on the possibility of a U.S. rate hike within the year, the dollar/yen pair moved with a heavy topside in September on lackluster U.S. economic indicators and concerns of a Chinese economic slowdown. With the FOMC holding off from raisin ...
PDF Download
... Apart from these changes in the demand for currency, macroeconomic factors have also contributed to the weakness of the euro, which may be seen as a reflection of dollar strength in the late 1990s. Dollar appreciation was initially driven by high consumption and investment demand due to expectations ...
... Apart from these changes in the demand for currency, macroeconomic factors have also contributed to the weakness of the euro, which may be seen as a reflection of dollar strength in the late 1990s. Dollar appreciation was initially driven by high consumption and investment demand due to expectations ...
Currency Boards
... economy should help to increase the level of foreign reserves. Allowing international banks in the economy, who will have foreign assets should provide a sufficient amount of reserves which could be used to supply liquidity to domestic banks, in the form of interbank loans. However, sometimes in sma ...
... economy should help to increase the level of foreign reserves. Allowing international banks in the economy, who will have foreign assets should provide a sufficient amount of reserves which could be used to supply liquidity to domestic banks, in the form of interbank loans. However, sometimes in sma ...
Competitiveness and its leverage in a currency union
... World Economic Forum, as well as, IMD World Competitiveness Center (2016) IMD World Competitiveness Yearbook, Lausanne, IMD World Competitiveness Center. ...
... World Economic Forum, as well as, IMD World Competitiveness Center (2016) IMD World Competitiveness Yearbook, Lausanne, IMD World Competitiveness Center. ...
supplement/ancillary title - Amazon Simple Storage Service (S3)
... This feature examines the effects of Volkswagen’s decision to not properly hedge its foreign exchange exposure in 2003. Volkswagen saw a 95 percent drop in its fourth quarter profits after an unexpected surge in the value of the euro left the company with losses of $1.5 billion. Traditionally, Volks ...
... This feature examines the effects of Volkswagen’s decision to not properly hedge its foreign exchange exposure in 2003. Volkswagen saw a 95 percent drop in its fourth quarter profits after an unexpected surge in the value of the euro left the company with losses of $1.5 billion. Traditionally, Volks ...
del01-Stein 221109 en
... ownership. These economies suffered a substantial output contraction at the start of transition. Almost 10 years after the transition process took off in Europe, only a handful of countries are estimated to have returned to the levels prevailing at the start of transition. One must exercise caution ...
... ownership. These economies suffered a substantial output contraction at the start of transition. Almost 10 years after the transition process took off in Europe, only a handful of countries are estimated to have returned to the levels prevailing at the start of transition. One must exercise caution ...
Spain and the euro. The first ten years
... In his remarks, Professor Rojo, who was Governor of the Banco de España when the Maastricht Treaty was signed and up to completion of the third phase of EMU, set Spain’s participation in EMU in a historical perspective. He described the challenges that Spain faced to join the monetary union as a fou ...
... In his remarks, Professor Rojo, who was Governor of the Banco de España when the Maastricht Treaty was signed and up to completion of the third phase of EMU, set Spain’s participation in EMU in a historical perspective. He described the challenges that Spain faced to join the monetary union as a fou ...
Currency crises and monetary policy in an economy with credit
... repayment obligations of the )rms, and consequently a fall in pro)ts. 4 Since lower pro)ts reduce net worth, it may result in less investment and lower output in the next period. This, in turn, brings a fall in the demand for money, and thus a currency depreciation. But arbitrage in the foreign exch ...
... repayment obligations of the )rms, and consequently a fall in pro)ts. 4 Since lower pro)ts reduce net worth, it may result in less investment and lower output in the next period. This, in turn, brings a fall in the demand for money, and thus a currency depreciation. But arbitrage in the foreign exch ...
Global Financial Markets and Instruments
... After the Second War and the IMF par value system came into existence, we became part of the new world system. Countries had exchange control and various sorts of trade restrictions. It was after the Seventies that gradually a scheme of flexible exchange rates came into existence among leading devel ...
... After the Second War and the IMF par value system came into existence, we became part of the new world system. Countries had exchange control and various sorts of trade restrictions. It was after the Seventies that gradually a scheme of flexible exchange rates came into existence among leading devel ...
Chapter II (pdf format)
... (1) The central bank needs a large stock of the domestic currency to buy the foreign currency whenever there is a tendency for the market price of the foreign currency to go down. This is an easy requirement, since the central bank has the machine that prints domestic currency. (2) The central bank ...
... (1) The central bank needs a large stock of the domestic currency to buy the foreign currency whenever there is a tendency for the market price of the foreign currency to go down. This is an easy requirement, since the central bank has the machine that prints domestic currency. (2) The central bank ...
International status and usage of the euro
The international status and usage of the euro has grown since its launch in 1999. When the euro formally replaced 12 currencies on 1 January 2002, it inherited their use in territories such as Montenegro and replaced minor currencies tied to the pre-euro currencies, such as in Monaco. Four small states have been given a formal right to use the euro, and to mint their own coins, but all other usage has been unofficial outside the eurozone (the EU states who have adopted the euro). With or without an agreement these countries, unlike those in the eurozone, do not participate in the European Central Bank or the Euro Group.Its international usage has also grown as a trading currency, acting as an economic or political alternative to using the United States dollar. Its increasing usage in this sense has led to its becoming the only significant challenger to the US dollar as the world's main reserve currency.