• Study Resource
  • Explore
    • 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
Monetary Policy Discussions for Q4 2016 and Decisions for Q1 2017
Monetary Policy Discussions for Q4 2016 and Decisions for Q1 2017

... The Central Bank held its fourth and final quarterly Monetary Policy Meeting for the year 2016 on December 27. As customary, the Board of Directors was apprised of global developments which are of particular relevance to the country, especially the conduct of monetary policy. Members of the Board di ...
Diagnostic Tables - Description
Diagnostic Tables - Description

... Unweighted geometric mean of all BH PLIs; Set upper limit for BH PLIs (here 2 times the geometric mean); Set lower limit for BH PLIs (here 0.5 times the geometric mean); Number of missing BH PLIs (hence missing PPPs); Number of BHs below set threshold in (5); Number of BHs above set threshold on (6) ...
International Dimensions
International Dimensions

... • The central bank cannot control the domestic interest rate, if it wishes to maintain a fixed exchange rate. – Fixed exchange rates mean interest rates are the same in all countries. – If not, investors would shift their funds to the country with the higher rates; thereby, bidding down the high rat ...
Lecture 1
Lecture 1

... External Wealth A country’s net credit position with the rest of the world is called external wealth. The time series charts show levels of external wealth from 1980 to 2007 for the United States in panel (a) and Argentina in panel (b). All else equal, deficits cause external wealth to fall; surplus ...
The Canadian Dollar - Cold Lake Middle School
The Canadian Dollar - Cold Lake Middle School

... 3. After buying her first house, Lisa wanted to know the market of it. 4. Jonathan’s absence would the outcome of the election. 5. The small company was concerned about the downturn. Affect: To bring about a change in; to have an effect on. Compared: Examined certain things in orde ...
Document
Document

... Explain whether you agree or disagree with the following statement: Flexible exchange rates allow nations to pursue their own monetary policies. Flexible exchange rates do allow nations to pursue their own monetary policies because they do not need to defend the value of their currencies as required ...
Economic Globalization
Economic Globalization

... monetary system of convertible currencies, fixed exchange rates and free trade. This international monetary system was to be a global network of institutions to promote international trade and the regulation of currency ($$) among Western countries. To facilitate these objectives, the agreement crea ...
European Monetary System
European Monetary System

... by the Finance Ministry in order to finance some state expenditure. In 1880 the National Bank of Romania was founded as a mixed-capital company, with 1/3 state capital and 2/3 private capital. Its profile was similar to that of the issuing banks in Europe. NBR functioned as the single issuing bank a ...
Equilibrium exchange rate and Misalignment in Morocco
Equilibrium exchange rate and Misalignment in Morocco

... Misalignment in Morocco 1-Motivation and outline The exchange rate policy is amidst the most important macroeconomic decision and dominates the public policy debate today. The recent reforms adopted in MENA countries particularly in Morocco during the period (2000-2011) aiming at opening up its econ ...
Vulnerability Index – Guessing the Probability of a Currency Crisis
Vulnerability Index – Guessing the Probability of a Currency Crisis

... appreciation of the currency, weak domestic economic growth, rising unemployment, an adverse terms-of-trade shock, a deteriorating current account balance, excessive domestic credit expansion, banking-system difficulties, unsustainably large government budget deficits, overly expansionary monetary p ...
PDF Download
PDF Download

... a) BIS calculations; to December 1998, based on weighted averages of the euro area countries’ effective exchange rates; from January 1999, based on weighted averages of bilateral euro exchange rates. Weights are based on 1990 manufactured goods trade with the trading partners United States, Japan, S ...
Chapter 10 The Determination of Exchange Rates
Chapter 10 The Determination of Exchange Rates

On the Renminbi - Harvard Kennedy School
On the Renminbi - Harvard Kennedy School

... level of spending. (2) Although foreign exchange reserves are a useful shield against currency crises, by now China’s current level is fully adequate, and US treasury securities do not pay a high return. (3) It becomes increasingly difficult to sterilize the inflow over time. (4) Although external b ...
Chapter 21
Chapter 21

... Exchange Rate Strategies Dollarization 1. Adopt a foreign currency like the U.S. dollar as the country’s money → even stronger commitment mechanism → no possibility of speculative attack. 2. Usual disadvantages of fixed exchange rate regime. 3. Lose seignorage (the revenue that a government receive ...
Monetary Integration and the Euro
Monetary Integration and the Euro

Currency Considerations: Investing Through the
Currency Considerations: Investing Through the

... the US dollar, which has been unable to shed its role as the world’s reserve currency despite the collapse of the Bretton Woods arrangement in 1973. Most Asian EM countries and the petro-states manage their currencies against the US dollar in an arrangement that has come to be known as Bretton Woods ...
Banking Credit, Policy Interest Rate and Reserve Requirements in
Banking Credit, Policy Interest Rate and Reserve Requirements in

... Banking Credit, Policy Interest Rate and Reserve Requirements in Peru ...
Forecasting Exchange Rates
Forecasting Exchange Rates

... relative prices levels between countries. – Countries with relatively high rates of inflation will show currency depreciation – Countries with relatively low rates of inflation will experience currency appreciation ...
(IMF) International Monetary Fund
(IMF) International Monetary Fund

... Conference held in 1944 at Bretton Woods, New Hampshire. The IMF began operations in 1947. Membership is open to all independent nations and included 183 countries in ...
The Costs of a Single Currency
The Costs of a Single Currency

... – Residents of a country experiencing recession may borrow money from residents of a country experiencing a boom to make up for their temporary fall in income - without domestic interest rates rising – Clearly if the demand shocks hitting the EA are symmetric there is no problem ...
Naira opens at N374 at new investor window Source
Naira opens at N374 at new investor window Source

... The new window closed at N377.11 per US dollar on Monday, after being quoted at an opening price of N372 per dollar, according to FMDQ data. The Central Bank said at the close of trading yesterday that the rates will be market determined, as monetary authorities look to return dollar liquidity to th ...
Lecture 7 part 1
Lecture 7 part 1

... – Disaggregated land by ecological type ...
Slide 1
Slide 1

... (Uncovered) interest parity condition • We derived this is the last lecture. Assuming that capital is mobile, investors are free to put their money in the country where it will earn the highest return. In equilibrium it must be true then that expected returns are the same across all countries. • Co ...
Chapter 15: Financial Markets and Expectations
Chapter 15: Financial Markets and Expectations

... A fixed exchange rate ties policymakers’ hands, and in countries that are prone to bouts of high inflation, a fixed exchange rate may be the only way to establish a credible low-inflation policy. Moreover, An exchange rate target enforces low-inflation discipline on both central banks and politician ...
exchange rate
exchange rate

... –country that owes more than other countries owe to it. •A creditor nation –a country that owes less than other coutnries owe to it. •Since 1986, the United States has been a debtor nation. •Borrower/lender status based upon one year •Debtor/creditor status based upon entire history of ...
< 1 ... 175 176 177 178 179 180 181 182 183 ... 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 © 2025
  • DMCA
  • Privacy
  • Terms
  • Report