Cost-Push Shocks and Monetary Policy in Open Economies Alan Sutherland
... pF,i (j) = p∗F,i (j) S for all i and j where an asterisk indicates a price measured in foreign currency and S is the exchange rate (defined as the domestic price of foreign currency). Note that purchasing power parity does not hold because home and foreign agents have different preferences over consu ...
... pF,i (j) = p∗F,i (j) S for all i and j where an asterisk indicates a price measured in foreign currency and S is the exchange rate (defined as the domestic price of foreign currency). Note that purchasing power parity does not hold because home and foreign agents have different preferences over consu ...
Low Interest Rates and Housing Booms
... for collateral in this model arises not because of asymmetric information but because of limited commitment, i.e. lenders cannot force borrowers to work in order to repay their debt. The dynamic interaction between the borrowing constraint and the value of collateral generates both persistence and a ...
... for collateral in this model arises not because of asymmetric information but because of limited commitment, i.e. lenders cannot force borrowers to work in order to repay their debt. The dynamic interaction between the borrowing constraint and the value of collateral generates both persistence and a ...
The Benefits and Costs of Renminbi Internationalization
... discussion about the reform of the international monetary system. Once again, the US dollar-centered reserve system has been strongly criticized for its exorbitant privileges, which not only cause financial instability but also give rise to inequality between rich countries and poor countries (Stigl ...
... discussion about the reform of the international monetary system. Once again, the US dollar-centered reserve system has been strongly criticized for its exorbitant privileges, which not only cause financial instability but also give rise to inequality between rich countries and poor countries (Stigl ...
Retailer Pass-Through and its Determinants Using Scanner Data
... vary little across regions in the UAE.2 We then estimate pass-through across retailers within regions and find it is highest for supermarkets and lowest for mini-markets, with groceries in between. To control for any differences in business models across types of outlets, we repeat the analysis only ...
... vary little across regions in the UAE.2 We then estimate pass-through across retailers within regions and find it is highest for supermarkets and lowest for mini-markets, with groceries in between. To control for any differences in business models across types of outlets, we repeat the analysis only ...
Chapter 3. The Money Demand Function
... apparently exceeds one. This result might be explained by the whole range of new financial instruments with rather market-determined interest rates. The estimated result for the fixed exchange rate regime is not satisfactory with usual standards. However, as done in Furukawa (1985), if we change the ...
... apparently exceeds one. This result might be explained by the whole range of new financial instruments with rather market-determined interest rates. The estimated result for the fixed exchange rate regime is not satisfactory with usual standards. However, as done in Furukawa (1985), if we change the ...
NBER WORKING PAPER SERIES ACTIVITY? A SCENARIO ANALYSIS
... countries), AS (Emerging Asia: China, India, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan province of China and Thailand) and RC (the Remaining Countries not considered elsewhere). The steady-state shares of world GDP of the four blocs are, respectively, 27.9, 32.2, 15.5 and 24.4 ...
... countries), AS (Emerging Asia: China, India, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan province of China and Thailand) and RC (the Remaining Countries not considered elsewhere). The steady-state shares of world GDP of the four blocs are, respectively, 27.9, 32.2, 15.5 and 24.4 ...
Volume 70 No. 2, June 2007 Contents
... prices. Adjusting the settlement cash target enabled the Bank to influence short-term interest rates, but this influence was much less precise than under the present OCR regime. Brookes and Hampton (2000) discuss the introduction and operation of the OCR and Nield (2006) describes recent changes to ...
... prices. Adjusting the settlement cash target enabled the Bank to influence short-term interest rates, but this influence was much less precise than under the present OCR regime. Brookes and Hampton (2000) discuss the introduction and operation of the OCR and Nield (2006) describes recent changes to ...
Consistency of two major data sources for
... have been the focus of numerous empirical studies which employ exchange rate data. For instance, Frenkel (1977, 1979), Abel et al. (1979) and Michael et al. (1994) employed the forward premium as a determinant of inflationary expectations or currency substitution in the demand for money. Krugman (19 ...
... have been the focus of numerous empirical studies which employ exchange rate data. For instance, Frenkel (1977, 1979), Abel et al. (1979) and Michael et al. (1994) employed the forward premium as a determinant of inflationary expectations or currency substitution in the demand for money. Krugman (19 ...
SEIGNIORAGE, CENTRAL BANK`S PROFITS, CAPITAL
... (assuming that the individuals can invest at the same market interest rate as the central bank does – this is a simplification that I will use throughout this essay). By investing the monetary base at the market rate i the central bank can earn a net monetary income equal to the expression in equati ...
... (assuming that the individuals can invest at the same market interest rate as the central bank does – this is a simplification that I will use throughout this essay). By investing the monetary base at the market rate i the central bank can earn a net monetary income equal to the expression in equati ...
Kueh(205)..pdf
... of a country will leave essential implication towards structural changes on the economy of the country. As pointed out by Chenery et al. (1986) and Aykut and Ratha (2004), firms are able to gain competitive advantage in term of economy of scale in the production despite adoption of new technologies ...
... of a country will leave essential implication towards structural changes on the economy of the country. As pointed out by Chenery et al. (1986) and Aykut and Ratha (2004), firms are able to gain competitive advantage in term of economy of scale in the production despite adoption of new technologies ...
From a fixed exchange rate regime to inflation targeting
... of the 1970s, Norway decided to participate in the EEC’s exchange rate targeting regime where the Deutsche Mark served as the nominal anchor. Owing to a desynchronisation of economic cycles following the oil crisis in 1973, inflation in Norway could no longer be restrained at the low level prevailin ...
... of the 1970s, Norway decided to participate in the EEC’s exchange rate targeting regime where the Deutsche Mark served as the nominal anchor. Owing to a desynchronisation of economic cycles following the oil crisis in 1973, inflation in Norway could no longer be restrained at the low level prevailin ...
Money - Meetup
... Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[20][24] Fiat money, ...
... Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[20][24] Fiat money, ...
Economics of Money, Banking, and Financial Markets, 8e
... 8) Explain the type of monetary policy strategy that the Federal Reserve has used in recent years. What are the advantages and disadvantages to this type of strategy? Answer: The Federal Reserve doesnʹt use an explicit nominal anchor such as a monetary aggregate or the inflation rate. Its strategy ...
... 8) Explain the type of monetary policy strategy that the Federal Reserve has used in recent years. What are the advantages and disadvantages to this type of strategy? Answer: The Federal Reserve doesnʹt use an explicit nominal anchor such as a monetary aggregate or the inflation rate. Its strategy ...
an evaluation of monetary policy instruments in achieving monetary
... the CPI represents the cost of living and is, therefore, more appropriate for measuring the welfare of the people. Furthermore, because the CPI is available on a more frequent basis, it is most useful for monetary policy purposes. ...
... the CPI represents the cost of living and is, therefore, more appropriate for measuring the welfare of the people. Furthermore, because the CPI is available on a more frequent basis, it is most useful for monetary policy purposes. ...
Download paper (PDF)
... interest rate increase should appreciate the currency. UIRP is one of the cornerstones of international finance, constituting an important building block of most important exchange rate determination theories such as the monetary exchange rate model, Dornbusch (1976)’s overshooting model or Krugman ...
... interest rate increase should appreciate the currency. UIRP is one of the cornerstones of international finance, constituting an important building block of most important exchange rate determination theories such as the monetary exchange rate model, Dornbusch (1976)’s overshooting model or Krugman ...
Recent Arguments Against the Gold Standard
... currency issued is tied to the government's gold holdings.” It is true only if the government monopolizes the issue of gold-redeemable currency and the holding of gold reserves, which was not the case in sixty-plus cases of competitive private note-issue under historical gold and silver standards (S ...
... currency issued is tied to the government's gold holdings.” It is true only if the government monopolizes the issue of gold-redeemable currency and the holding of gold reserves, which was not the case in sixty-plus cases of competitive private note-issue under historical gold and silver standards (S ...
Determinants of the physical demand for gold
... Although the central role of gold in the world economy has declined since the demise of the gold standard in the 1970s, it is still a significant item in central bank reserves, it continues to be a sought-after store of value, and its price remains closely watched as an indicator of changing risk pe ...
... Although the central role of gold in the world economy has declined since the demise of the gold standard in the 1970s, it is still a significant item in central bank reserves, it continues to be a sought-after store of value, and its price remains closely watched as an indicator of changing risk pe ...
- Open University of Tanzania Repository
... This study reflects on assessment of the micro economic factor hindering the growth of Dar es Salaam Stock Exchange market. The main target of this study was to determine the factors hindering the growth of Dar es Salaam Stock Exchange market. Four examined variables such as money supply exchange ra ...
... This study reflects on assessment of the micro economic factor hindering the growth of Dar es Salaam Stock Exchange market. The main target of this study was to determine the factors hindering the growth of Dar es Salaam Stock Exchange market. Four examined variables such as money supply exchange ra ...
Expanding the Central Bank mandate in the “Soy Republic”
... January 2011-May 2013. ................................................................. 81 Figure 4.3: Total money supply (M1 and M2) and foreign exchange reserves, January 1996-May 2013. ................................................................. 82 Figure 4.4: International reserves in ...
... January 2011-May 2013. ................................................................. 81 Figure 4.3: Total money supply (M1 and M2) and foreign exchange reserves, January 1996-May 2013. ................................................................. 82 Figure 4.4: International reserves in ...
Gold Standards and the Real Bills Doctrine in U.S. Monetary Policy
... 1993, 111). The gold standard, however, was still in remission. Government policies centering on the Treasury’s issues of greenbacks ruled the monetary system and determined the course and magnitude of price-level variation. Treasury currency did not end with the greenbacks. In 1863, Congress passed ...
... 1993, 111). The gold standard, however, was still in remission. Government policies centering on the Treasury’s issues of greenbacks ruled the monetary system and determined the course and magnitude of price-level variation. Treasury currency did not end with the greenbacks. In 1863, Congress passed ...
Structuring Local Currency Transactions: Case Studies
... An international provider of long‐term funding (the lender) approves a 5 year loan to a local microfinance institution (the borrower) in Kyrgyzstan with a 5% interest rate for the expansion of the bank’s micro and SME portfolio. Given that the borrower on lends to its customer base ...
... An international provider of long‐term funding (the lender) approves a 5 year loan to a local microfinance institution (the borrower) in Kyrgyzstan with a 5% interest rate for the expansion of the bank’s micro and SME portfolio. Given that the borrower on lends to its customer base ...
NBER WORKING PAPER SERIES THE FUTURE OF EMU: WHAT DOES
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
Shocked by the world! Introducing the three block open economy FAVAR ∗
... of total trade to world GDP has increased significantly1 , while liberalisation of economic policies and financial markets have boosted financial integration. At the same time different regions of the world experience different growth paths, their own shocks and display heterogeneity in response to ...
... of total trade to world GDP has increased significantly1 , while liberalisation of economic policies and financial markets have boosted financial integration. At the same time different regions of the world experience different growth paths, their own shocks and display heterogeneity in response to ...
Optimal Simple Targeting Rules for Small Open Economies Richard Dennis
... countries. However, in many countries, particularly small open economies, Taylor type specifications are unlikely to fully explain the systematic component of interest rates. Indeed, the studies listed above employ of range of distinct rules to explain interest rate movements, while still classifyin ...
... countries. However, in many countries, particularly small open economies, Taylor type specifications are unlikely to fully explain the systematic component of interest rates. Indeed, the studies listed above employ of range of distinct rules to explain interest rate movements, while still classifyin ...