NBER WORKING PAPER SERIES Richard Clarida Daniel Waldman
... Before we proceed further, it will be useful to review some of the results from a model of optimal monetary policy and exchange rate determination in the open economy developed in Clarida-Gali-Gertler (2002). ...
... Before we proceed further, it will be useful to review some of the results from a model of optimal monetary policy and exchange rate determination in the open economy developed in Clarida-Gali-Gertler (2002). ...
Cost Push Shocks and Monetary Policies in Open
... The world exists for a single period9 and consists of two countries, which will be referred to as the home country and the foreign country. Each country is populated by agents who consume a basket consisting of all home and foreign produced goods. Each agent is a monopoly producer of a single di¤ere ...
... The world exists for a single period9 and consists of two countries, which will be referred to as the home country and the foreign country. Each country is populated by agents who consume a basket consisting of all home and foreign produced goods. Each agent is a monopoly producer of a single di¤ere ...
Download Full Article
... In economic theory, redenomination not cause any impact, contrast and devaluation sanering besides have a direct impact on the exchange rate of the currency held by the public, as well as other economic impacts due to the continuation of this policy which includes exports and imports, inflation, unt ...
... In economic theory, redenomination not cause any impact, contrast and devaluation sanering besides have a direct impact on the exchange rate of the currency held by the public, as well as other economic impacts due to the continuation of this policy which includes exports and imports, inflation, unt ...
DP2005/04 Reaction functions in a small open economy: What role for non-traded inflation?
... by Schorfheide (2000) and used in Lubik and Schorfheide (2005). A procedure to test if the model fits the data, based on the comparison between the empirical and the model cross-covariances, is also briefly discussed. Section 4 presents the analysis of alternative monetary policy reaction functions: ...
... by Schorfheide (2000) and used in Lubik and Schorfheide (2005). A procedure to test if the model fits the data, based on the comparison between the empirical and the model cross-covariances, is also briefly discussed. Section 4 presents the analysis of alternative monetary policy reaction functions: ...
Monetary Policy Management in Nigeria in the Context of Uncertainty
... Monetary policy process is fairly complex and involves: setting objectives (primary focus of monetary policy) choosing a nominal anchor (monetary policy strategy), financial programming/model monetary policy instruments and application day-to-day conduct of monetary policy (routine activit ...
... Monetary policy process is fairly complex and involves: setting objectives (primary focus of monetary policy) choosing a nominal anchor (monetary policy strategy), financial programming/model monetary policy instruments and application day-to-day conduct of monetary policy (routine activit ...
The theoretical framework of monetary policy revisited
... considered to be “always and everywhere a monetary phenomenon” according to Friedman’s famous dictum (Friedman, 1963, p.17). Given that monetary policy decisions are made by most central banks with regard to the interest rate, changes in this rate, by influencing aggregate demand and the gap between ...
... considered to be “always and everywhere a monetary phenomenon” according to Friedman’s famous dictum (Friedman, 1963, p.17). Given that monetary policy decisions are made by most central banks with regard to the interest rate, changes in this rate, by influencing aggregate demand and the gap between ...
Money and the Payments System
... chair now in exchange for money in the future. How important is it that money be a reliable store of value and standard of deferred payment? People care about how much food, clothing, and other goods and services their dollars will buy. The value of money depends on its purchasing power, the ability ...
... chair now in exchange for money in the future. How important is it that money be a reliable store of value and standard of deferred payment? People care about how much food, clothing, and other goods and services their dollars will buy. The value of money depends on its purchasing power, the ability ...
MONETARY POLICY REPORT 2005-III
... ~GGGGGGGGGGGG G G G YWW\SG G G G G G G UG {G G G G G G G G G GGGGUGpGGGGSGGG ...
... ~GGGGGGGGGGGG G G G YWW\SG G G G G G G UG {G G G G G G G G G GGGGUGpGGGGSGGG ...
Assessment of the Effectiveness of Monetary Policy in Mauritius
... With the interest rate channel being weak for now and considering the fact that the Central Bank has only chosen to intervene in the FX market to limit foreign exchange volatility and not change its trend which is market determined, we choose to focus on the remaining monetary channel by estimating ...
... With the interest rate channel being weak for now and considering the fact that the Central Bank has only chosen to intervene in the FX market to limit foreign exchange volatility and not change its trend which is market determined, we choose to focus on the remaining monetary channel by estimating ...
M-3
... Money also functions as a store of value; it is a repository of purchasing power over time. A store of value is used to save purchasing power from the time income is received until the time it is spent. This function of money is useful, because most of us do not want to spend our income immediately ...
... Money also functions as a store of value; it is a repository of purchasing power over time. A store of value is used to save purchasing power from the time income is received until the time it is spent. This function of money is useful, because most of us do not want to spend our income immediately ...
The eagle. A model for policy analysis of macroeconomic
... to maximize profits. Nominal prices are sticky, so that there is a non trivial stabilization role for monetary policy. For tradable intermediate goods, prices are set in the currency of the destination market (the local currency pricing assumption holds). As a consequence, pass-through of the nomina ...
... to maximize profits. Nominal prices are sticky, so that there is a non trivial stabilization role for monetary policy. For tradable intermediate goods, prices are set in the currency of the destination market (the local currency pricing assumption holds). As a consequence, pass-through of the nomina ...
View/Open
... firm specific assets. Campa (1993), however, finds exchange rate volatility to be negatively correlated with the number of new FDI entries. Nevertheless, the effect of currency crises may largely differ from that of regular exchange rate movements. Currency crises may have large impact on the overal ...
... firm specific assets. Campa (1993), however, finds exchange rate volatility to be negatively correlated with the number of new FDI entries. Nevertheless, the effect of currency crises may largely differ from that of regular exchange rate movements. Currency crises may have large impact on the overal ...
contracts 9,899,780,283 traded
... exchange-traded futures and options are perfect vehicles for trading. In addition to commodity trading advisors, two groups that have been a major force in our markets have been hedge funds and long-only commodity funds. Both groups have attracted large amounts of money, and each has had a major inf ...
... exchange-traded futures and options are perfect vehicles for trading. In addition to commodity trading advisors, two groups that have been a major force in our markets have been hedge funds and long-only commodity funds. Both groups have attracted large amounts of money, and each has had a major inf ...
Real Exchange Rate Dynamics in Sticky-Price Models with Capital
... interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. ...
... interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. ...
The Panorama of the East Asian Crisis and the IMF`s
... these crises, I feel obligated to offer a definition for the word ‘crisis.’ Economics Professor Michael B. McElroy, Visiting Associate Professor of Economics at Duke University, defines it this way: “an economic crisis may be said to occur when there are disruptions in usual patterns of supply and d ...
... these crises, I feel obligated to offer a definition for the word ‘crisis.’ Economics Professor Michael B. McElroy, Visiting Associate Professor of Economics at Duke University, defines it this way: “an economic crisis may be said to occur when there are disruptions in usual patterns of supply and d ...
Are the Effects of Monetary Policy Asymmetric in Australia?
... (1992) also finds that the term structure of interest rates is able to predict GDP movements. There is a much larger literature examining the monetary transmission mechanism in the United States.1 Bernanke and Blinder (1988,1992) argue that monetary policy changes, represented by movements in the Fe ...
... (1992) also finds that the term structure of interest rates is able to predict GDP movements. There is a much larger literature examining the monetary transmission mechanism in the United States.1 Bernanke and Blinder (1988,1992) argue that monetary policy changes, represented by movements in the Fe ...
Welcome to the Study Guide
... systems, heterodox economists’ policy prescriptions are usually much less specific than the policy prescriptions suggested by orthodox economists. In recognition of uncertainty within a complex system, such as our economic, social, and natural system, heterodox economists are likely to invoke the pr ...
... systems, heterodox economists’ policy prescriptions are usually much less specific than the policy prescriptions suggested by orthodox economists. In recognition of uncertainty within a complex system, such as our economic, social, and natural system, heterodox economists are likely to invoke the pr ...
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... All bondholders, including those not domiciled in Denmark, are recommended to seek separate and individual advice on their tax positions. ...
... All bondholders, including those not domiciled in Denmark, are recommended to seek separate and individual advice on their tax positions. ...
Introducing the Bank of Canada`s Projection Model for the Global
... well out-of-sample. Although it is reduced-form in nature, the model structure is based on the theory underlying larger-scale structural DSGE models; the model is estimated using state-of-the-art Bayesian econometric techniques. The small scale of the model enhances our ability to interpret shocks, ...
... well out-of-sample. Although it is reduced-form in nature, the model structure is based on the theory underlying larger-scale structural DSGE models; the model is estimated using state-of-the-art Bayesian econometric techniques. The small scale of the model enhances our ability to interpret shocks, ...
Currency Crises, Capital Account Liberalization
... had six currency crises since 1975 despite having controls over most of this period; and so on. Dooley (1996), summarizing the literature, concludes: “Capital controls or dual exchange rate systems have been effective in generating yield differentials, covered for exchange rate risk, for short peri ...
... had six currency crises since 1975 despite having controls over most of this period; and so on. Dooley (1996), summarizing the literature, concludes: “Capital controls or dual exchange rate systems have been effective in generating yield differentials, covered for exchange rate risk, for short peri ...
Interest on Reserves - Federal Reserve Bank of Richmond
... frequency). If policymakers observe rapid conversion of excess reserves into required reserves, it could indicate a bank-induced monetary expansion that warrants at least the consideration of an interest-rate target increase. Under the Fed’s previous operating procedures, which involved a very low l ...
... frequency). If policymakers observe rapid conversion of excess reserves into required reserves, it could indicate a bank-induced monetary expansion that warrants at least the consideration of an interest-rate target increase. Under the Fed’s previous operating procedures, which involved a very low l ...
2006-05
... the period of hyperinflation. Moreover, Kiguel and Neumeyer (1995), while investigating the relationship between seigniorage and inflation in Argentina in the periods 1979-80, 1982-84, and 1986-1987, found that the coefficient on the transactions variable, represented by GDP, was not significantly d ...
... the period of hyperinflation. Moreover, Kiguel and Neumeyer (1995), while investigating the relationship between seigniorage and inflation in Argentina in the periods 1979-80, 1982-84, and 1986-1987, found that the coefficient on the transactions variable, represented by GDP, was not significantly d ...
Chapter Seven
... d. If market interest rates had decreased 100 basis points by the end of year 1, would the market value of equity be higher or lower than $1,000? Why? The market value of the equity would be higher ($1,600) because the value of the bond would be higher ($10,600) and the value of the CD would remain ...
... d. If market interest rates had decreased 100 basis points by the end of year 1, would the market value of equity be higher or lower than $1,000? Why? The market value of the equity would be higher ($1,600) because the value of the bond would be higher ($10,600) and the value of the CD would remain ...
debt valuation effects when there is foreign currency denominated
... most likely also affect the interest rate that the country can negotiate on international markets, hence increasing the debt burden. It will likely also have effects on growth in the short term, which can also affect the sustainable fiscal path. Policy decisions must take this factor into account be ...
... most likely also affect the interest rate that the country can negotiate on international markets, hence increasing the debt burden. It will likely also have effects on growth in the short term, which can also affect the sustainable fiscal path. Policy decisions must take this factor into account be ...