Low inflation in the euro area: Causes and
... in most advanced economies (missing disinflation). Second, more recent global developments point in the opposite direction (missing inflation): inflation was expected to be higher in most advanced economies after 2012, on the back of the ongoing recovery. Instead, inflation was persistently below ta ...
... in most advanced economies (missing disinflation). Second, more recent global developments point in the opposite direction (missing inflation): inflation was expected to be higher in most advanced economies after 2012, on the back of the ongoing recovery. Instead, inflation was persistently below ta ...
The European Central Bank - History, role and functions, October 2004
... national currencies: a national currency became an indispensable ingredient of national sovereignty; national banknotes, which occupied an increasingly important role in the circulation of money and eventually replaced par-value gold and silver coins as legal tender, communicated national cultures a ...
... national currencies: a national currency became an indispensable ingredient of national sovereignty; national banknotes, which occupied an increasingly important role in the circulation of money and eventually replaced par-value gold and silver coins as legal tender, communicated national cultures a ...
Full Text
... Interestingly, evidence of dollarization hysteresis has been found most often in cases where estimates of dollar currency in circulation were used instead of, or in addition to, data on dollar denominated deposits. A seminal paper in this respect is Kamin and Ericsson (1993), who used data on record ...
... Interestingly, evidence of dollarization hysteresis has been found most often in cases where estimates of dollar currency in circulation were used instead of, or in addition to, data on dollar denominated deposits. A seminal paper in this respect is Kamin and Ericsson (1993), who used data on record ...
- International Growth Centre
... bank can step in as lender of last resort, since it can create domestic currency in case of emergency. For foreign currency deposits, international reserves are the only buffer that exists to stem a liquidity crisis, thereby limiting the central bank’s scope for taking preventative measures. The oth ...
... bank can step in as lender of last resort, since it can create domestic currency in case of emergency. For foreign currency deposits, international reserves are the only buffer that exists to stem a liquidity crisis, thereby limiting the central bank’s scope for taking preventative measures. The oth ...
Dollarization in Tanzania
... bank can step in as lender of last resort, since it can create domestic currency in case of emergency. For foreign currency deposits, international reserves are the only buffer that exists to stem a liquidity crisis, thereby limiting the central bank’s scope for taking preventative measures. The oth ...
... bank can step in as lender of last resort, since it can create domestic currency in case of emergency. For foreign currency deposits, international reserves are the only buffer that exists to stem a liquidity crisis, thereby limiting the central bank’s scope for taking preventative measures. The oth ...
`Missing disinflation` and `missing inflation` since the Great Recession
... the same specification for the euro area and the US, we want to separate domestic from global variables (so we omit exports and imports which are difficult to classify), and for a-priori reasons we want the number of global variables to be equal to the number of domestic variables, so we end up incl ...
... the same specification for the euro area and the US, we want to separate domestic from global variables (so we omit exports and imports which are difficult to classify), and for a-priori reasons we want the number of global variables to be equal to the number of domestic variables, so we end up incl ...
Regional currency areas and the use of foreign currencies
... spillover effects. For example, overexpansionary deficits that lead to unsustainable debt accumulation in one country can lead to higher interest rates or exchange rate overvaluation in other members of the union. In regional currency areas, this issue has generally been addressed through procedures ...
... spillover effects. For example, overexpansionary deficits that lead to unsustainable debt accumulation in one country can lead to higher interest rates or exchange rate overvaluation in other members of the union. In regional currency areas, this issue has generally been addressed through procedures ...
Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero
... zero lower bound – cannot be lowered further, this would prevent conventional monetary policy from adequately stimulating demand and, hence, economic growth. The economy could then fall into a self-enforcing era of economic stagnation unless bold monetary and fiscal stimuli and far-reaching structur ...
... zero lower bound – cannot be lowered further, this would prevent conventional monetary policy from adequately stimulating demand and, hence, economic growth. The economy could then fall into a self-enforcing era of economic stagnation unless bold monetary and fiscal stimuli and far-reaching structur ...
With it*s main objective to maintain price stability for the medium to
... lack of a standard long-run money demand function to incorporate all factors or motives that in fact determine the demand for money. Greiber and Lemke (2005), e.g., examine whether the instability results from not including a variable representing macroeconomic uncertainty. Their augmented standard ...
... lack of a standard long-run money demand function to incorporate all factors or motives that in fact determine the demand for money. Greiber and Lemke (2005), e.g., examine whether the instability results from not including a variable representing macroeconomic uncertainty. Their augmented standard ...
F inancial dollarization
... depositors are not allowed to short-sell deposits in any currency and, in accordance with the emphasis of this paper on asset rather than currency substitution, that agents hold no cash.8 Due to foreign exchange rate risk, dollar deposits or loans (at home or abroad) are imperfect substitutes for ho ...
... depositors are not allowed to short-sell deposits in any currency and, in accordance with the emphasis of this paper on asset rather than currency substitution, that agents hold no cash.8 Due to foreign exchange rate risk, dollar deposits or loans (at home or abroad) are imperfect substitutes for ho ...
The Dynamics of Currency Substitution, Asset Substitution and De
... dollarization can also lead to a distortion in various measures of macroeconomic activity making the formulation of macroeconomic policy more difficult. However, since de facto dollarization represents a revealed preference for holding foreign currency as a means of reducing the risks of domestic i ...
... dollarization can also lead to a distortion in various measures of macroeconomic activity making the formulation of macroeconomic policy more difficult. However, since de facto dollarization represents a revealed preference for holding foreign currency as a means of reducing the risks of domestic i ...
Money Demand Stability and Inflation Prediction in the Four Largest
... Almost all papers find euro area money demand to be stable until the EMU started in 1999, even though they differ in many respects (sample, variables, estimation procedure, geographic area, aggregation method). A further outstanding result for studies with sample periods ending prior to 1999 is the ...
... Almost all papers find euro area money demand to be stable until the EMU started in 1999, even though they differ in many respects (sample, variables, estimation procedure, geographic area, aggregation method). A further outstanding result for studies with sample periods ending prior to 1999 is the ...
Download Full Article
... Indonesia (Shubham Chudori: 2011) (5). According Hasanuddin Aco: 2010(6), cheapest currency today is Zimbabwe. Talking about the redenomination, Zimbabwe is one country that is quite aggressive conduct of its currency redenomination. Recorded in the last 4 years, due to hyper inflation, Zimbabwe hav ...
... Indonesia (Shubham Chudori: 2011) (5). According Hasanuddin Aco: 2010(6), cheapest currency today is Zimbabwe. Talking about the redenomination, Zimbabwe is one country that is quite aggressive conduct of its currency redenomination. Recorded in the last 4 years, due to hyper inflation, Zimbabwe hav ...
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 ...
A small estimated euro area model with rational expectations and
... of inflation persistence in France and Italy and the euro area as a whole to structural nominal rigidities. An alternative interpretation of this finding is to consider it evidence of adaptive expectations as suggested by Roberts (1997) in the context of the U.S. inflation process. This interpretati ...
... of inflation persistence in France and Italy and the euro area as a whole to structural nominal rigidities. An alternative interpretation of this finding is to consider it evidence of adaptive expectations as suggested by Roberts (1997) in the context of the U.S. inflation process. This interpretati ...
The Renminbi and Exchange Rate Regimes in East Asia
... New Zealand have achieved international currency status, but they are not major or even second-tier international currencies because of their small economic size. Australia, Canada, and Switzerland cannot go beyond the second-tier international currency status for the same reason. In this regard, th ...
... New Zealand have achieved international currency status, but they are not major or even second-tier international currencies because of their small economic size. Australia, Canada, and Switzerland cannot go beyond the second-tier international currency status for the same reason. In this regard, th ...
Can the Renminbi Rise as a Global Currency? The Political
... The sum of the percentage shares of individual currencies in global foreign exchange market turnover totals 200 rather than 100 per cent, since two currencies are involved in each transaction. ...
... The sum of the percentage shares of individual currencies in global foreign exchange market turnover totals 200 rather than 100 per cent, since two currencies are involved in each transaction. ...
The interest rate pass-through in the euro area during
... sense that other factors such as sovereign risk, macro and borrowers’ risk and bank risk dominated monetary policy). Most studies so far use money market rates as an approximation to the monetary policy stance. However, money market rates were near the zero lower bound (ZLB) and did not move much si ...
... sense that other factors such as sovereign risk, macro and borrowers’ risk and bank risk dominated monetary policy). Most studies so far use money market rates as an approximation to the monetary policy stance. However, money market rates were near the zero lower bound (ZLB) and did not move much si ...
P R I C E S TA B I L... W H Y I S I T I M P... F O R YO U ?
... C. Rogers, P. Sandars, D. Schackis, H. J. Schlösser, G. Vitale, C. Zilioli. ...
... C. Rogers, P. Sandars, D. Schackis, H. J. Schlösser, G. Vitale, C. Zilioli. ...
price stability - ECB
... C. Rogers, P. Sandars, D. Schackis, H. J. Schlösser, G. Vitale, C. Zilioli. ...
... C. Rogers, P. Sandars, D. Schackis, H. J. Schlösser, G. Vitale, C. Zilioli. ...
B 09 2003 - Universität Mannheim
... Bank with tax-payers’ money to keep it operating because a central bank cannot create money out of nothing, as many an economist believes, but risks its own capital when it creates money. Thus, the ministry of finance forms the final ...
... Bank with tax-payers’ money to keep it operating because a central bank cannot create money out of nothing, as many an economist believes, but risks its own capital when it creates money. Thus, the ministry of finance forms the final ...
WO R K I N G PA P... WHAT IS GLOBAL EXCESS LIQUIDITY, AND DOES IT MATTER?
... However, there is a long tradition of economic thought, which goes back to the “founding 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 s ...
... However, there is a long tradition of economic thought, which goes back to the “founding 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 s ...
Threshold Models for Monetary Policy Rules for the Euro Area
... (US, Japan and Germany) in the setting of short term nominal interest rate. After that they examine the monetary policy behavior of three main European countries (Italy, France and UK). Their results for the first set of countries support the argument for price stability through the adoption of a fo ...
... (US, Japan and Germany) in the setting of short term nominal interest rate. After that they examine the monetary policy behavior of three main European countries (Italy, France and UK). Their results for the first set of countries support the argument for price stability through the adoption of a fo ...
What drives euro area break-even inflation rates?
... well as to investigate the determinants of BEIRs at short and long horizons without being constrained to the issuance of in‡ation-linked bonds with di¤erent maturities. In principle, there are many potential variables that can help market participants form in‡ation expectations (and associated premi ...
... well as to investigate the determinants of BEIRs at short and long horizons without being constrained to the issuance of in‡ation-linked bonds with di¤erent maturities. In principle, there are many potential variables that can help market participants form in‡ation expectations (and associated premi ...
Euro
The euro (sign: €; code: EUR) is the official currency of the eurozone, which consists of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The currency is also officially used by the institutions of the European Union and four other European countries, as well as unilaterally by two others, and is consequently used daily by some 337 million Europeans as of 2015. Outside of Europe, a number of overseas territories of EU members also use the euro as their currency.Additionally, 210 million people worldwide as of 2013 use currencies pegged to the euro. The euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.As of August 2014, with more than €995,000,000,000 in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.Based on International Monetary Fund estimates of 2008 GDP and purchasing power parity among the various currencies, the eurozone is the second largest economy in the world.The name euro was officially adopted on 16 December 1995. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members. While the euro dropped subsequently to US$0.8252 within two years (26 October 2000), it has traded above the U.S. dollar since the end of 2002, peaking at US$1.6038 on 18 July 2008. Since late 2009, the euro has been immersed in the European sovereign-debt crisis which has led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilising the currency. In July 2012, the euro fell below US$1.21 for the first time in two years, following concerns raised over Greek debt and Spain's troubled banking sector. As of June 2015, the euro–dollar exchange rate stands at ~ US$1.10.