operational framework of monetary and macroprudential
... increases in personal consumption, activities in the construction sector, trade and tourism as well as by an increase in government spending. On the other hand, the potentials for higher economic growth and development were hindered by low and dawdling increase of investment in fixed capital (especi ...
... increases in personal consumption, activities in the construction sector, trade and tourism as well as by an increase in government spending. On the other hand, the potentials for higher economic growth and development were hindered by low and dawdling increase of investment in fixed capital (especi ...
Balance-of-Payments Concepts
... previous example, there will be an increase in the demand for imports (the demand for foreign exchange) and a decrease in the demand for exports (the supply of foreign exchange). Under freely floating exchange rates, the inevitable consequence will he a rise in the exchange rate (the price of foreig ...
... previous example, there will be an increase in the demand for imports (the demand for foreign exchange) and a decrease in the demand for exports (the supply of foreign exchange). Under freely floating exchange rates, the inevitable consequence will he a rise in the exchange rate (the price of foreig ...
8_Monetary
... Gold standard Up until quite recently, gold was money. 1933 - the United States went off the domestic gold standard. Gold was stored in government vaults, and in it's place people were issued paper money which was "backed" by gold or silver on a one for one basis. 1973 - the U.S. left off the ...
... Gold standard Up until quite recently, gold was money. 1933 - the United States went off the domestic gold standard. Gold was stored in government vaults, and in it's place people were issued paper money which was "backed" by gold or silver on a one for one basis. 1973 - the U.S. left off the ...
Module Monetary Policy and the Interest Rate
... • How the Federal Reserve implements monetary policy, moving the interest rate to affect aggregate output • Why monetary policy is the main tool for stabilizing the economy ...
... • How the Federal Reserve implements monetary policy, moving the interest rate to affect aggregate output • Why monetary policy is the main tool for stabilizing the economy ...
1. Prices and Inflation
... Enterprises were told what to produce, from whom to produce and to whom to sell. The only existing markets were shadow ones, which were illegal and operated at the margins of the system. The production structure was distorted compared to market economies. The two most important distortions were: rel ...
... Enterprises were told what to produce, from whom to produce and to whom to sell. The only existing markets were shadow ones, which were illegal and operated at the margins of the system. The production structure was distorted compared to market economies. The two most important distortions were: rel ...
Who put the holes in the Swiss cheese? Currency crisis under
... central bank will switch to a floating exchange rate system. Since this would result in an appreciation of the Swiss currency, appreciation expectations popup (E(ė) = e1 − ef0 ix < 0). Even mild appreciation expectations lead via the UIP-condition to a scenario, where the domestic interest rate has ...
... central bank will switch to a floating exchange rate system. Since this would result in an appreciation of the Swiss currency, appreciation expectations popup (E(ė) = e1 − ef0 ix < 0). Even mild appreciation expectations lead via the UIP-condition to a scenario, where the domestic interest rate has ...
Chapter Five: Currency Boards - Peterson Institute for International
... is lower for countries with more flexible currency regimes. Using monthly data for 11 countries during the 1960-98 period, Hausmann, Panizza, and Stein (2000) did not find that currency regimes mattered for the domestic interest rate response to US interest rate changes. Moreover, comparing three La ...
... is lower for countries with more flexible currency regimes. Using monthly data for 11 countries during the 1960-98 period, Hausmann, Panizza, and Stein (2000) did not find that currency regimes mattered for the domestic interest rate response to US interest rate changes. Moreover, comparing three La ...
Examiners` commentaries 2015
... Consider a decrease in real income level in the fixed case. For given domestic prices, the demand of real money balances is lower; in order to have equilibrium in the domestic money market prices will be forced up; at the fixed exchange rate, the economy is now undercompetitive and a balance of paym ...
... Consider a decrease in real income level in the fixed case. For given domestic prices, the demand of real money balances is lower; in order to have equilibrium in the domestic money market prices will be forced up; at the fixed exchange rate, the economy is now undercompetitive and a balance of paym ...
File
... • For over 30 years, the control of inflation has been the main objective of Monetary Policy in the UK – the inflation target set by the Government 2% CPI is the main policy objective • Low and stable inflation helps to create the conditions in which the economy can flourish and achieve the ultimate ...
... • For over 30 years, the control of inflation has been the main objective of Monetary Policy in the UK – the inflation target set by the Government 2% CPI is the main policy objective • Low and stable inflation helps to create the conditions in which the economy can flourish and achieve the ultimate ...
ch09
... The East Asian Currency Crisis of 1997-1998 • In mid-1997, foreign investors began to worry about the long-run sustainability of growth in East Asia – they began to change their opinions of the fundamental long-term value of East Asia’s exchange rates (0) • the value of the currencies fell causing ...
... The East Asian Currency Crisis of 1997-1998 • In mid-1997, foreign investors began to worry about the long-run sustainability of growth in East Asia – they began to change their opinions of the fundamental long-term value of East Asia’s exchange rates (0) • the value of the currencies fell causing ...
Indian Rupee Convertibility
... sign has been incorporated in the currency notes in the denomination of 10, 100, 500 and 1000. Each banknote has its amount written in 15 languages. On the obverse side, the denomination is written in English and Hindi. On the reverse of each note is a language panel that displays the denomination ...
... sign has been incorporated in the currency notes in the denomination of 10, 100, 500 and 1000. Each banknote has its amount written in 15 languages. On the obverse side, the denomination is written in English and Hindi. On the reverse of each note is a language panel that displays the denomination ...
Monetary Policy
... about prospects of loan default or fears of inflation). No shifts in demand or supply for financial capital. (2) Banks want to loan, but firms and consumers don’t want to borrow the funds (e.g. pessimism about state of economy). Described as leftward shift in the demand for financial capital coupled ...
... about prospects of loan default or fears of inflation). No shifts in demand or supply for financial capital. (2) Banks want to loan, but firms and consumers don’t want to borrow the funds (e.g. pessimism about state of economy). Described as leftward shift in the demand for financial capital coupled ...
euro rush: Who Will be next?
... The Baltic countries have been in ERM-II for longer than the required two years and they are not in excessive deficit procedure (EDP). So, they can apply for the single currency in any year that they fulfill the inflation criterion. In any case, the main risk is that sustainability might be question ...
... The Baltic countries have been in ERM-II for longer than the required two years and they are not in excessive deficit procedure (EDP). So, they can apply for the single currency in any year that they fulfill the inflation criterion. In any case, the main risk is that sustainability might be question ...
Maurice Obstfeld Paper No. i186 1050 PAPER SERIES
... to withdraw from the foreign exchange market. This implies that the hypothesized run cannot occur along an equilibrium path of the economy. Any investor who anticipates the exchange rate's path will not participate in the attack (even if he believes everyone else will), but will prefer to wait ...
... to withdraw from the foreign exchange market. This implies that the hypothesized run cannot occur along an equilibrium path of the economy. Any investor who anticipates the exchange rate's path will not participate in the attack (even if he believes everyone else will), but will prefer to wait ...
12. Impact of Currency Devaluation on Economic Growth of Nigeria
... forced into devaluation by an ominous trade deficit. Thailand, China, Mexico, Czech Republic - all devalued strongly, willingly or unwillingly, after their trade deficits exceeded 8% of the GDP. Devaluation of currency is decided by the government issuing the currency, and is the result of governmen ...
... forced into devaluation by an ominous trade deficit. Thailand, China, Mexico, Czech Republic - all devalued strongly, willingly or unwillingly, after their trade deficits exceeded 8% of the GDP. Devaluation of currency is decided by the government issuing the currency, and is the result of governmen ...
New Perspectives on Financial Globalization IMF Economic Forum
... • US can no longer necessarily rely on the support of foreign central banks, such as China. • China may allow appreciation of RMB. • Even if China keeps RMB undervalued, it can diversify its currency basket out of $ – There now exists a credible rival for international reserve currency, the € . – Ch ...
... • US can no longer necessarily rely on the support of foreign central banks, such as China. • China may allow appreciation of RMB. • Even if China keeps RMB undervalued, it can diversify its currency basket out of $ – There now exists a credible rival for international reserve currency, the € . – Ch ...
In Order to Form a More Perfect Monetary Union
... We the people of the United States, in order to form a more perfect union, . . . do ordain and establish this Constitution for the United States of America. — Preamble, U.S. Constitution Just like its political system, America's monetary system changed dramatically when the United States adopted a C ...
... We the people of the United States, in order to form a more perfect union, . . . do ordain and establish this Constitution for the United States of America. — Preamble, U.S. Constitution Just like its political system, America's monetary system changed dramatically when the United States adopted a C ...
On floating exchange rates, currency depreciation and effective
... same direction: the real exchange rate falls when domestic currency appreciates; and a rise in the real exchange rate also means that the domestic currency depreciates in real terms. The optimality of fixed exchange rates has long been rejected under the presumption that if the economy faces primari ...
... same direction: the real exchange rate falls when domestic currency appreciates; and a rise in the real exchange rate also means that the domestic currency depreciates in real terms. The optimality of fixed exchange rates has long been rejected under the presumption that if the economy faces primari ...
Spot Market
... change in economic conditions. • The demand for the euro rises as savers desire more euros to purchase greater amounts of European financial assets. Spot Market ...
... change in economic conditions. • The demand for the euro rises as savers desire more euros to purchase greater amounts of European financial assets. Spot Market ...
The Operation and Demise of the Bretton Woods
... Woods Articles and restore current account convertibility in dollars. Current account convertibility was restored in July 15 1947 quickly followed by a run on sterling which rapidly depleted the UK’s reserves and led to the suspension of convertibility on August 20 1947. This event as well as the de ...
... Woods Articles and restore current account convertibility in dollars. Current account convertibility was restored in July 15 1947 quickly followed by a run on sterling which rapidly depleted the UK’s reserves and led to the suspension of convertibility on August 20 1947. This event as well as the de ...
Determinants of Foreign Currency Borrowing in the New Member
... rowing in a foreign currency (from Figure 4 above). Basso, Calvo-Gonzales, and Jurgilas (2007) develop a theoretical and empirical model that shows how the presence of foreign banks in the NMS increases liability dollarization. Interest rate differentials between local and foreign currency are beli ...
... rowing in a foreign currency (from Figure 4 above). Basso, Calvo-Gonzales, and Jurgilas (2007) develop a theoretical and empirical model that shows how the presence of foreign banks in the NMS increases liability dollarization. Interest rate differentials between local and foreign currency are beli ...
Federal funds rate
... Cost of borrowing from the Fed is the discount rate, and borrowing from the Fed is a substitute for borrowing from other banks (in federal funds market) If iff < id, then banks will not borrow from the Fed and borrowed reserves are zero The supply curve will be vertical As iff rises above id, banks ...
... Cost of borrowing from the Fed is the discount rate, and borrowing from the Fed is a substitute for borrowing from other banks (in federal funds market) If iff < id, then banks will not borrow from the Fed and borrowed reserves are zero The supply curve will be vertical As iff rises above id, banks ...
Capital Mobility, Interest Rate Rules, and Equilibrium Indeterminacy
... optimally follow the declining path of the marginal utility of consumption, agents thus must cut leisure time as a result of ucl > 0 . ...
... optimally follow the declining path of the marginal utility of consumption, agents thus must cut leisure time as a result of ucl > 0 . ...
The advantages of a small European Monetary Union
... them, for this would necessitate forecasts of possible changes in behaviour within the framework of a macroeconomic model. The economic costs in terms of slower growth depend on the willingness of various social groups to adjust to the changed situation. Since in the case under consideration the low ...
... them, for this would necessitate forecasts of possible changes in behaviour within the framework of a macroeconomic model. The economic costs in terms of slower growth depend on the willingness of various social groups to adjust to the changed situation. Since in the case under consideration the low ...