NBER WORKING PAPER SERIES HISTORICAL PERSPECTIVE ON GLOBAL IMBALANCES Michael D. Bordo
... areas with current account surpluses and excess savings (see figures 4 and 5). To the extent that European nominal rigidities prevent it from adjusting to the decline in demand for its exports to the U.S., its real economy could suffer. China with its currency pegged to the dollar would not have to ...
... areas with current account surpluses and excess savings (see figures 4 and 5). To the extent that European nominal rigidities prevent it from adjusting to the decline in demand for its exports to the U.S., its real economy could suffer. China with its currency pegged to the dollar would not have to ...
mmi-sinn 221780 en
... dollar? Why is it not enough if the dollar price of American shares goes up relative to the euro price of European shares? Obviously, there are two relative prices for the same thing, and one is redundant. The traditional portfolio balance approach downplays the redundancy problem by assuming that t ...
... dollar? Why is it not enough if the dollar price of American shares goes up relative to the euro price of European shares? Obviously, there are two relative prices for the same thing, and one is redundant. The traditional portfolio balance approach downplays the redundancy problem by assuming that t ...
home.ust.hk
... • If interest rate is less than i*, savers will keep their wealth in the form of liquid assets and withdraw their funds from savings accounts and bonds. In order to maintain their own liquidity, banks higher interest rates on deposits. • If interest rate is greater than i*, savers will deposit more ...
... • If interest rate is less than i*, savers will keep their wealth in the form of liquid assets and withdraw their funds from savings accounts and bonds. In order to maintain their own liquidity, banks higher interest rates on deposits. • If interest rate is greater than i*, savers will deposit more ...
Exchange Rates and the Foreign Exchange Market - uc
... Forward exchange rates: Can also arrange currency trade for some date in future. Is one way of hedging against risk of e changes. Suppose Best Buy electronics is expecting a shipment of Sony TVs in a month, for which it needs to pay yen. Could wait until the shipment to buy the yen to pay Sony, but ...
... Forward exchange rates: Can also arrange currency trade for some date in future. Is one way of hedging against risk of e changes. Suppose Best Buy electronics is expecting a shipment of Sony TVs in a month, for which it needs to pay yen. Could wait until the shipment to buy the yen to pay Sony, but ...
Armenian Interest Rate Raised Further
... Armenia's Central Bank Raises Interest Rate Again Financial Services Monitor Worldwide - 11/2/2015 ...
... Armenia's Central Bank Raises Interest Rate Again Financial Services Monitor Worldwide - 11/2/2015 ...
Global Imbalances and the Transition to a Symmetric World
... in the US was going to burst amid rising interest rates. Starting in July 2007, accumulating losses on US sub-prime mortgages triggered widespread disruption of credit markets, as uncertainty about the ultimate size and location of credit losses undermined investor confidence. Exposure to these loss ...
... in the US was going to burst amid rising interest rates. Starting in July 2007, accumulating losses on US sub-prime mortgages triggered widespread disruption of credit markets, as uncertainty about the ultimate size and location of credit losses undermined investor confidence. Exposure to these loss ...
Open Economy Macroeconomics
... Effect of an Import Quota There is no change in the interest rate because nothing happens in the loanable funds market. There will be no change in net exports. There is no change in net foreign investment even though an import quota reduces imports. ...
... Effect of an Import Quota There is no change in the interest rate because nothing happens in the loanable funds market. There will be no change in net exports. There is no change in net foreign investment even though an import quota reduces imports. ...
Surprising Similarities: Recent Monetary Regimes of Small Economies Overview Frederic S. Mishkin
... The second additional feature necessary for a successful monetary regime is strong fiscal institutions to ensure that government budget deficits do not get out of control. When weak fiscal institutions lead to an explosion in government debt, there are two possible outcomes. One is the possibility o ...
... The second additional feature necessary for a successful monetary regime is strong fiscal institutions to ensure that government budget deficits do not get out of control. When weak fiscal institutions lead to an explosion in government debt, there are two possible outcomes. One is the possibility o ...
Full Report - Federal Reserve Bank of New York
... throughout January and early February, euro-area officials were seen as reluctant to support significant fiscal expansion, as some market participants pointed to comments by officials arguing for fiscal restraint. Nonetheless, investors anticipated a significant increase in the amount of sovereign ...
... throughout January and early February, euro-area officials were seen as reluctant to support significant fiscal expansion, as some market participants pointed to comments by officials arguing for fiscal restraint. Nonetheless, investors anticipated a significant increase in the amount of sovereign ...
The Emerging Market Economies in Times of Taper-Talk and Actual Tapering
... in the analysis, I only find a few signals. The exceptions are Indonesia and Turkey which stand out for their large number of signals. However, even for these two countries the situation is not too worrisome since they made adjustments and I observe no signals during the last part of the time frame ...
... in the analysis, I only find a few signals. The exceptions are Indonesia and Turkey which stand out for their large number of signals. However, even for these two countries the situation is not too worrisome since they made adjustments and I observe no signals during the last part of the time frame ...
Dollar Drops Versus Euro, Yen as Bush Nominates Bernanke for
... touched 2.8027 PEN/USD , its strongest level since March 1998. The central bank bought USD 126 million in the foreign exchange market in a bid to ease gains in the sol. The yield on Peru's 8.6 percent sol-denominated bonds due in August 2017 was little changed at 6.58 percent, according to Banco BBV ...
... touched 2.8027 PEN/USD , its strongest level since March 1998. The central bank bought USD 126 million in the foreign exchange market in a bid to ease gains in the sol. The yield on Peru's 8.6 percent sol-denominated bonds due in August 2017 was little changed at 6.58 percent, according to Banco BBV ...
Chapter 15 Price Levels and the Exchange Rate in the Long Run
... • There is no inflation in the long run, but only during the transition to the long run equilibrium. • During the transition, inflation causes the nominal interest rate to increase to its long run rate. • Expectations of inflation cause the expected return on foreign currency to increase, making the ...
... • There is no inflation in the long run, but only during the transition to the long run equilibrium. • During the transition, inflation causes the nominal interest rate to increase to its long run rate. • Expectations of inflation cause the expected return on foreign currency to increase, making the ...
Implications of Dollarization for Belize
... and elements in the private sector with several countries recently choosing to give up their right to issue a sovereign currency and subsequently adopting the US dollar as legal tender. In recent months, the subject has also been raised in some quarters locally as Belize has been experiencing increa ...
... and elements in the private sector with several countries recently choosing to give up their right to issue a sovereign currency and subsequently adopting the US dollar as legal tender. In recent months, the subject has also been raised in some quarters locally as Belize has been experiencing increa ...
Working Papers - CESifo Group Munich
... American shares in terms of European ones. But does this mean a revaluation of the dollar? Why ...
... American shares in terms of European ones. But does this mean a revaluation of the dollar? Why ...
OPTIMAL CURRCENCY AREA II
... • Countries are not really free to choose their most preferred combination of inflation-unemployment trade off, because in the long-run there is simply no trade off • And in the short-run? • If macroeconomic policies are used to push ouput above potential: then loosing them (by joining a monetary u ...
... • Countries are not really free to choose their most preferred combination of inflation-unemployment trade off, because in the long-run there is simply no trade off • And in the short-run? • If macroeconomic policies are used to push ouput above potential: then loosing them (by joining a monetary u ...
The Experience of Greece: Pre-ERM
... The Retreat from Intermediate Regimes Before I discuss Greece’s experience, let me address the reasons underlying the retreat from intermediate regimes. What has caused this retreat? First, an explosive increase in capital flows during the 1990s has made the operation of intermediate regimes problem ...
... The Retreat from Intermediate Regimes Before I discuss Greece’s experience, let me address the reasons underlying the retreat from intermediate regimes. What has caused this retreat? First, an explosive increase in capital flows during the 1990s has made the operation of intermediate regimes problem ...
chapter overview
... This notebook considers the case of the Export-Import Bank, which allows private investors to purchase shares of risk to which the bank was exposed in making loans to support U.S. exports. This allows the export-import bank to reduce its exposure to risk, and helped provide the bank with an external ...
... This notebook considers the case of the Export-Import Bank, which allows private investors to purchase shares of risk to which the bank was exposed in making loans to support U.S. exports. This allows the export-import bank to reduce its exposure to risk, and helped provide the bank with an external ...
NBER WORKING PAPER SERIES MONETARY POLICY: DOMESTIC TARGETS AND INTERNATIONAL CONSTRAINTS
... This paper argues that macroeconomic policies for open economies differ, in fundamentally important ways, from the corresponding policies for closed economies. The openness of the economy imposes constraints on the effectiveness and proper conduct of macroeconomic policies and it also provides polic ...
... This paper argues that macroeconomic policies for open economies differ, in fundamentally important ways, from the corresponding policies for closed economies. The openness of the economy imposes constraints on the effectiveness and proper conduct of macroeconomic policies and it also provides polic ...
Cash Management Support
... decided to increase and extend the QE program by SEK 45bn in the second half of 2016. Also, index linked bonds was added to the program. During the second half of this year the Riksbank will buy SEK 30bn nominal bonds while the purchase of SEK 15bn in index linked bonds will begin already in June, t ...
... decided to increase and extend the QE program by SEK 45bn in the second half of 2016. Also, index linked bonds was added to the program. During the second half of this year the Riksbank will buy SEK 30bn nominal bonds while the purchase of SEK 15bn in index linked bonds will begin already in June, t ...
Economic Growth - Durham University
... exchange rate move together. If foreign prices rise faster than domestic prices, the real exchange rate will depreciate. ...
... exchange rate move together. If foreign prices rise faster than domestic prices, the real exchange rate will depreciate. ...
Linking interbank payment systems across borders and currencies
... However, outside a fixed exchange rate regime, it is hard to see why central banks would assume such a risk-taking role in the foreign exchange markets. That said, there are cases of central banks offering foreign currency settlement. When the euro was introduced, the European Central Bank (ECB) li ...
... However, outside a fixed exchange rate regime, it is hard to see why central banks would assume such a risk-taking role in the foreign exchange markets. That said, there are cases of central banks offering foreign currency settlement. When the euro was introduced, the European Central Bank (ECB) li ...
RTF format
... to fulfil the agreement. The correct rate would have been the indicative rate of the Reserve bank. This is however not the official rate of South Africa and I am not inclined to declare it as such. The reserve bank is not a commercial bank. The indicative rate is only a reflection, not prescriptive, ...
... to fulfil the agreement. The correct rate would have been the indicative rate of the Reserve bank. This is however not the official rate of South Africa and I am not inclined to declare it as such. The reserve bank is not a commercial bank. The indicative rate is only a reflection, not prescriptive, ...
Net Capital Outflow
... buy more UK goods and fewer goods from other countries. • As a result, UK exports rise, and UK imports fall, and both of these changes raise UK net exports. • Conversely, an appreciation in the UK real exchange rate means that UK goods have become more expensive compared to foreign goods, so UK net ...
... buy more UK goods and fewer goods from other countries. • As a result, UK exports rise, and UK imports fall, and both of these changes raise UK net exports. • Conversely, an appreciation in the UK real exchange rate means that UK goods have become more expensive compared to foreign goods, so UK net ...
slides - Paris School of Economics
... 1. Monetary Policy transmission channel can be defected -‐QuanGty constraint -‐Transmission channel too slow, less important -‐Not enough compare with macroeconomic requirement ...
... 1. Monetary Policy transmission channel can be defected -‐QuanGty constraint -‐Transmission channel too slow, less important -‐Not enough compare with macroeconomic requirement ...