NBER WORKING PAPER SERIES THE SMALL OPEN ECONOMY CASE
... approach. However, Buffie and Atolia (2007) claim otherwise by introducing durable goods into the model, a conjecture that was first spelled out in Calvo (1988). ...
... approach. However, Buffie and Atolia (2007) claim otherwise by introducing durable goods into the model, a conjecture that was first spelled out in Calvo (1988). ...
Exchange Rate Regime Choice with Multiple Key Currencies
... understanding of countries’ actual exchange rate and monetary policy choices. The contribution of this article thus goes beyond merely arguing that governments choose the key currency as monetary anchor from which most of their imports stem from. In fact, not only can fear of floating explain what a ...
... understanding of countries’ actual exchange rate and monetary policy choices. The contribution of this article thus goes beyond merely arguing that governments choose the key currency as monetary anchor from which most of their imports stem from. In fact, not only can fear of floating explain what a ...
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... agamst the Importer (country 3) are reported m col umn 3 of table 1 This situatIOn would result If the currencies of competmg exporters, such as Canada, fell about mime with ,the dollar as the dollar depreciated relatIve to the, currencies of Importers, such as Japan The exchange rate r3 was set at ...
... agamst the Importer (country 3) are reported m col umn 3 of table 1 This situatIOn would result If the currencies of competmg exporters, such as Canada, fell about mime with ,the dollar as the dollar depreciated relatIve to the, currencies of Importers, such as Japan The exchange rate r3 was set at ...
Milan and the Mediterranean Economy: 16th
... particular2 - but above all in France, where the Crown and Court demanded the best and most expensive fabrics. The shape and extent of the commercial network depended, it might be said, on the duration and stability of 'taste', in the sense that demand for luxury products was a function of quality ...
... particular2 - but above all in France, where the Crown and Court demanded the best and most expensive fabrics. The shape and extent of the commercial network depended, it might be said, on the duration and stability of 'taste', in the sense that demand for luxury products was a function of quality ...
Chapter 15 Price Levels and the Exchange Rate in the Long Run
... • Relationship between interest rates and inflation: Fisher effect • Shortcomings of purchasing power parity ...
... • Relationship between interest rates and inflation: Fisher effect • Shortcomings of purchasing power parity ...
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... old. In other words, this is a work not on dynamics, but on comparative statics, in economics. Meade criticized the lack of any explicit mathematical account of how the economy gets from one “partial or temporary” equilibrium to another. A related problem, already noted above and highlighted by Mead ...
... old. In other words, this is a work not on dynamics, but on comparative statics, in economics. Meade criticized the lack of any explicit mathematical account of how the economy gets from one “partial or temporary” equilibrium to another. A related problem, already noted above and highlighted by Mead ...
High-level Regional Policy Dialogue on
... reversal.1 The other is highly volatile FX market. The latter is somewhat related to the former but needs to be explored further. The capital inflows problem may be characterized by aperiodicity, procyclicality and risk of currency and maturity mismatch, which accompanies potential systemic risk. Si ...
... reversal.1 The other is highly volatile FX market. The latter is somewhat related to the former but needs to be explored further. The capital inflows problem may be characterized by aperiodicity, procyclicality and risk of currency and maturity mismatch, which accompanies potential systemic risk. Si ...
NBER WORKING PAPER SERIES INFLATION, REAL INTEREST, AND THE DETERtIINACY
... response to an increase in the expected inflation rate. In the alternative case, in which the economy is effectively closed, increased inflation, if it has a determinate effect, causes an immediate fall in desired real balances, ...
... response to an increase in the expected inflation rate. In the alternative case, in which the economy is effectively closed, increased inflation, if it has a determinate effect, causes an immediate fall in desired real balances, ...
Assignment3Answ
... of payments surplus, equal to the demand for shekels minus the supply of shekels. The demand for shekels at an exchange rate of 0.20 dollars/shekel is 30,000 – 8,000(0.20) = 28,400, and the supply of shekels is 25,000 + 12,000(0.20) = 27,400, so the balance of payments surplus is 28,400 – 27,400 = 1 ...
... of payments surplus, equal to the demand for shekels minus the supply of shekels. The demand for shekels at an exchange rate of 0.20 dollars/shekel is 30,000 – 8,000(0.20) = 28,400, and the supply of shekels is 25,000 + 12,000(0.20) = 27,400, so the balance of payments surplus is 28,400 – 27,400 = 1 ...
2016:1 Thinking about the future of money and potential implications
... process, by which changes in open market operations and the quantity of reserves directly affect the amount of lending in an economy, could be severely diminished. This may in turn hamper central banks’ ability to control liquidity in the economy and the economic performance through standard monetar ...
... process, by which changes in open market operations and the quantity of reserves directly affect the amount of lending in an economy, could be severely diminished. This may in turn hamper central banks’ ability to control liquidity in the economy and the economic performance through standard monetar ...
Thomas Plümper Department of Government, University of Essex Eric Neumayer
... trast, individuals generating income from the production of non-tradable goods and services ought to prefer flexible exchange rates, which allow governments to use monetary policy to stimulate domestic economic activity. As these authors readily admit (e.g., Frieden et al. 2008: 5), their theory la ...
... trast, individuals generating income from the production of non-tradable goods and services ought to prefer flexible exchange rates, which allow governments to use monetary policy to stimulate domestic economic activity. As these authors readily admit (e.g., Frieden et al. 2008: 5), their theory la ...
Chapter 1
... • When price is quoted per month: – Multiply currency amount by 12 for price/year. ...
... • When price is quoted per month: – Multiply currency amount by 12 for price/year. ...
What is a bank
... Money is any object or record, that is generally accepted as payment for goods and services and repayment of debts in a given country or socioeconomic context ...
... Money is any object or record, that is generally accepted as payment for goods and services and repayment of debts in a given country or socioeconomic context ...
in Stanley Fischer of Working Paper No. 936
... effective cost of a unit of consumption goods is not one (in real terms) but one plus the transaction cost needed to acquire it——hence (8). Equations (9) and (10) say that labor and wealth should be efficiently allocated to the making of transactions using currency, relative to the alternative of le ...
... effective cost of a unit of consumption goods is not one (in real terms) but one plus the transaction cost needed to acquire it——hence (8). Equations (9) and (10) say that labor and wealth should be efficiently allocated to the making of transactions using currency, relative to the alternative of le ...
Understanding the financial crisis in Asia Bhagwan Chowdhry , Amit Goyal
... that successfully defended its currency against speculative attacks and has maintained its parity with the U.S. dollar. The stock markets in all these countries in Asia plunged as the currency crisis engulfed most of East Asian countries.4 One of the biggest challenges facing scholars studying the E ...
... that successfully defended its currency against speculative attacks and has maintained its parity with the U.S. dollar. The stock markets in all these countries in Asia plunged as the currency crisis engulfed most of East Asian countries.4 One of the biggest challenges facing scholars studying the E ...
James A. Dorn MONEY, MACROECONOMICS, AND FORECASTING
... select from a broad menu of policy objectives—such as promoting full employment, lowering interest rates, and stabilizing exchange rates—to try to fine-tune the real economy. Macro-forecasting models of inflation perform about equally well; iione are very accurate. In a study for the Federal Reserve ...
... select from a broad menu of policy objectives—such as promoting full employment, lowering interest rates, and stabilizing exchange rates—to try to fine-tune the real economy. Macro-forecasting models of inflation perform about equally well; iione are very accurate. In a study for the Federal Reserve ...
The Thirty-Five Most Tumultuous Years in Monetary History
... collapses occurred in several different waves. The scope and extent of the deviations of market exchange rates from real exchange rates—the “overshooting” and “undershooting” and the variability in the ratios of trade balances to the GDPs have been larger than in any previous period. There were four ...
... collapses occurred in several different waves. The scope and extent of the deviations of market exchange rates from real exchange rates—the “overshooting” and “undershooting” and the variability in the ratios of trade balances to the GDPs have been larger than in any previous period. There were four ...
US Presidential Cycle and Foreign Exchange Market
... system in the first subsample and the floating and hybrid systems in the second subsample. For the first subsample, the average value of the dollar is higher under Republicans by£0.044 and €0.0133, and lower by ¥23.2212. For the second subsample, the average value of the U.S. foreign exchange rate a ...
... system in the first subsample and the floating and hybrid systems in the second subsample. For the first subsample, the average value of the dollar is higher under Republicans by£0.044 and €0.0133, and lower by ¥23.2212. For the second subsample, the average value of the U.S. foreign exchange rate a ...
The Instruments of Central Banking - AUEB e
... Quantity of Discount Lending • However, under the new discount lending procedure, the Federal Reserve charges a penalty rate above short-term market rates • In return, the Fed removes conditions and restrictions for banks that qualify for primary credit • The intent of the new policy is to improve ...
... Quantity of Discount Lending • However, under the new discount lending procedure, the Federal Reserve charges a penalty rate above short-term market rates • In return, the Fed removes conditions and restrictions for banks that qualify for primary credit • The intent of the new policy is to improve ...
Foreign Exchange Risk
... • Consider the following situation: R – R* < Se, with both sides positive. The interest differential in favor of the domestic financial instrument is less than the expected depreciation of the domestic currency. In this case, and ignoring transaction costs, the saver would be induced to reallocate ...
... • Consider the following situation: R – R* < Se, with both sides positive. The interest differential in favor of the domestic financial instrument is less than the expected depreciation of the domestic currency. In this case, and ignoring transaction costs, the saver would be induced to reallocate ...
six possible meanings of "overvaluation": the 1981
... criterion for a devaluation under the Bretton Woods system: Although the term was never formally defined, the IMF's (1970) report on the exchange-rate system implied that fundamental disequilibrium was a situation in which a country could not expect to generate a current account balance to match its ...
... criterion for a devaluation under the Bretton Woods system: Although the term was never formally defined, the IMF's (1970) report on the exchange-rate system implied that fundamental disequilibrium was a situation in which a country could not expect to generate a current account balance to match its ...
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... Stabilisation is likely to fall disproportionately on monetary and fiscal authorities, both from a macro perspective and from a financial stability perspective. In such an environment, mandatory adoption of a regime of limited exchange rate flexibility (the ERM) for two years before entering EMU is ...
... Stabilisation is likely to fall disproportionately on monetary and fiscal authorities, both from a macro perspective and from a financial stability perspective. In such an environment, mandatory adoption of a regime of limited exchange rate flexibility (the ERM) for two years before entering EMU is ...
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... somewhat “weaker” form of the dollar’s international role as a monetary anchor. Because prices of tradable goods and services, virtually all primary products and most manufactures (except for exports from industrial Europe) are set in dollars in international markets, central banks in emerging marke ...
... somewhat “weaker” form of the dollar’s international role as a monetary anchor. Because prices of tradable goods and services, virtually all primary products and most manufactures (except for exports from industrial Europe) are set in dollars in international markets, central banks in emerging marke ...
Output and Exchange Rate in the Short Run
... 2. Changes in T: lower taxes raise Yd and thereby increase C, increasing aggregate demand and output in equilibrium for any given exchange rate: the DD curve shifts out. 3. Changes in I: higher investment expenditure is represented by shifting the DD curve out. 4. Changes in P relative to P*: lower ...
... 2. Changes in T: lower taxes raise Yd and thereby increase C, increasing aggregate demand and output in equilibrium for any given exchange rate: the DD curve shifts out. 3. Changes in I: higher investment expenditure is represented by shifting the DD curve out. 4. Changes in P relative to P*: lower ...
An Analysis of the Carry Trade - Trace: Tennessee Research and
... The carry trade produced by the Australian dollar and Japanese yen currency pair is observed in Figure 1. The interest rate differential between Australia and Japan is consistently high. Because the Australian dollar yields a much higher return on investment compared to the Japanese yen, the situati ...
... The carry trade produced by the Australian dollar and Japanese yen currency pair is observed in Figure 1. The interest rate differential between Australia and Japan is consistently high. Because the Australian dollar yields a much higher return on investment compared to the Japanese yen, the situati ...