• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Federal Reserve System Assets Liabilities
Federal Reserve System Assets Liabilities

... • When the domestic currency is overvalued, the central bank must purchase domestic currency to keep the exchange rate fixed, but as a result, it loses international reserves • When the domestic currency is undervalued, the central bank must sell domestic currency to keep the exchange rate fixed, bu ...
Comments on `Exchange rate misalignment
Comments on `Exchange rate misalignment

... SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND ...
Issue 14 - Patrick Crowley
Issue 14 - Patrick Crowley

... has the same purchasing power: 2 Canadian dollars buy the same amount of goods and services as does 1 US dollar, since prices in Canada are twice as high. ...
PPP GDP 2006 (millions of dollars)
PPP GDP 2006 (millions of dollars)

... 2.Monetary Approach to the Balance of payments and Exchange Rate Determination 3. Exchange Rate Dynamics 4. Asset Market model and Exchange Rates.Portfolio-Balance Approach 5.Empirical tests and Exchange Rates Forecasting ...
Mundell Ponencia TJ
Mundell Ponencia TJ

... • The bottom line is that any short run gain would be more than wiped out by the long run loss. ...
Chapter 10 - University of Alberta
Chapter 10 - University of Alberta

... country’s real and financial assets are more attractive for investment. • The demand for domestic currency increases and the exchange rate appreciates (enom rises). ...
1 - National Bank
1 - National Bank

... A comprehensive strategy is needed to strengthen the banking sector. The recent steps to raise provisioning levels at the large banks are welcome as this provides a clearer picture of the financial situation at these institutions. However, with the economy contracting, a further deterioration in ass ...
2013 Central Bank Macroeconomic Modelling Workshop
2013 Central Bank Macroeconomic Modelling Workshop

...  New role for central banks: avoid development of financial imbalances  The post-crisis economic environment is ...
Chapter 9
Chapter 9

The Gulf CurrenCy - Lancaster University
The Gulf CurrenCy - Lancaster University

... Once it is established, there is the possibility of breaking the dollar link in order to adopt a more appropriate external exchange rate regime – a change that would be harder for each country to make on its own. For the most part, the peg to the US dollar has served well, being the currency of the ...
Peter Nicholl: Perspectives on monetary policy in Bosnia and
Peter Nicholl: Perspectives on monetary policy in Bosnia and

... made in other areas if BH is to have macro-economic sustainability over the medium term. The Currency Board requirement means that the CBBH can not issue KM currency in any quantity it chooses or the economy needs. The amount that can be issued is tied to the net position of Bosnia and Herzegovina’s ...
How Exchange Rate Influence a Country`s Import and
How Exchange Rate Influence a Country`s Import and

... depreciation took place at very large level. All the factors are affected because the currency of the country is the main source of exchange. In the end, it can be concluded that depreciation of the country increases exports but along with that cost of exported ...
Chapter 10 - University of Alberta
Chapter 10 - University of Alberta

... country’s real and financial assets are more attractive for investment. • The demand for domestic currency increases and the exchange rate appreciates (enom rises). ...
Money and its origins
Money and its origins

... facto silver standard), Latin Monetary Union (France, Italy, Belgium, Switzerland) created in 1865 monetary explanations of Kondratieff cycles (1850’s expansion - California and Australia, 1890’s - Alaska and South Africa combined with technology shock) after 1850 gold money drives out silver, Gold ...
Exchange Rate Regimes
Exchange Rate Regimes

... through the interwar period, and up to the end of the Second World War (1939-45), there was extensive recourse to exchange controls by national governments, some experimentation with exchange flexibility, and an unsuccessful attempt, in 1925, to restore the gold standard. In 1946 a gold exchange sta ...
Vulnerability Among Emerging Markets
Vulnerability Among Emerging Markets

... to push down the value of their currencies, to gain exports & employment, – a goal that is not globally consistent. ...
Chapter 4
Chapter 4

... ICAPM versus Domestic CAPM  The ICAPM differs from the domestic CAPM in two respects:  the relevant market risk is world (global) risk, not domestic market risk.  Additional risk premiums are linked to an asset’s sensitivity to currency movements. The different currency exposures of individual s ...
ECON 3010 Intermediate Macroeconomics Solutions to Exam #2
ECON 3010 Intermediate Macroeconomics Solutions to Exam #2

... curve shifts to the right. ...
Opening Statement before the Standing Senate
Opening Statement before the Standing Senate

... -3The final impact of the lower Canadian dollar I’ll mention is that it raises the prices of imports. On the one hand, that means all Canadians lose some purchasing power for imports, including goods such as fresh produce that have no simple substitute. It also means price pressures for companies t ...
Focus 1 Euro-dollar -- what does PPP say?
Focus 1 Euro-dollar -- what does PPP say?

... Economic and Monetary Union (EMU). At its introduction on 1 January 1999, one euro was worth $1.17. Its average value over the first quarter of 1999 was $1.13 (€0.88 per dollar), exactly equal to the PPP as calculated by the OECD1 and Oxford Economic Forecasting (OEF). Over the intervening fourteen ...
AP Macroeconomics
AP Macroeconomics

Exchange Rate and Currency Depreciation
Exchange Rate and Currency Depreciation

... Table 2: The volatility of rand and changes in other high frequency indicators, 2012 to May 2014 ...
The Natural Rate of Interest is Zero
The Natural Rate of Interest is Zero

real exchange rate
real exchange rate

... The real exchange rate compares the prices of domestic goods and foreign goods in the domestic economy. If a case of German beer is twice as expensive as American beer, the real exchange rate is 1/2 case of German beer per case of American ...
real exchange rate
real exchange rate

... The real exchange rate compares the prices of domestic goods and foreign goods in the domestic economy. If a case of German beer is twice as expensive as American beer, the real exchange rate is 1/2 case of German beer per case of American ...
< 1 ... 166 167 168 169 170 171 172 173 174 ... 198 >

Fixed exchange-rate system

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold. There are benefits and risks to using a fixed exchange rate. A fixed exchange rate is usually used in order to stabilize the value of a currency by directly fixing its value in a predetermined ratio to a different, more stable or more internationally prevalent currency (or currencies), to which the value is pegged. In doing so, the exchange rate between the currency and its peg does not change based on market conditions, the way floating currencies will do. This makes trade and investments between the two currency areas easier and more predictable, and is especially useful for small economies in which external trade forms a large part of their GDP.A fixed exchange-rate system can also be used as a means to control the behavior of a currency, such as by limiting rates of inflation. However, in doing so, the pegged currency is then controlled by its reference value. As such, when the reference value rises or falls, it then follows that the value(s) of any currencies pegged to it will also rise and fall in relation to other currencies and commodities with which the pegged currency can be traded. In other words, a pegged currency is dependent on its reference value to dictate how its current worth is defined at any given time. In addition, according to the Mundell–Fleming model, with perfect capital mobility, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.In the 21st century, the currencies associated with large economies typically do not fix or peg exchange rates to other currencies. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report