Can Monetary Policy Affect Economic Activity under Surplus Liquidity?
... often suggests that monetary policy cannot affect output in transition countries (Starr, 2005, Jovanovic and Petreski, 2014). The usual explanation is that these countries have underdeveloped financial markets, characterized with low competition and surplus liquidity (see also Gigineishvili, 2011, M ...
... often suggests that monetary policy cannot affect output in transition countries (Starr, 2005, Jovanovic and Petreski, 2014). The usual explanation is that these countries have underdeveloped financial markets, characterized with low competition and surplus liquidity (see also Gigineishvili, 2011, M ...
Lecture Note on the Gold Standard
... Studying the gold standard also is useful because it is a pure example of a fixed exchange rate. So if we understand the gold standard fixed exchange rates and currency boards are much easier to study. ...
... Studying the gold standard also is useful because it is a pure example of a fixed exchange rate. So if we understand the gold standard fixed exchange rates and currency boards are much easier to study. ...
NBER WORKING PAPER SERIES MONEIARY POLICY SIRATEGIES Robert Flood Peter Isard
... that might arise to the extent that the central bank may have different preferences than society at large and might not seek to minimize the social loss function if left to its own discretion. From the structure of the model and the assumption of uncorrelated disturbances, it is intuitively clear th ...
... that might arise to the extent that the central bank may have different preferences than society at large and might not seek to minimize the social loss function if left to its own discretion. From the structure of the model and the assumption of uncorrelated disturbances, it is intuitively clear th ...
Money - Site BU
... weight of barley, which was used as currency.[15] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were th ...
... weight of barley, which was used as currency.[15] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were th ...
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... from Asia and Europe, the Korea Institute for International Economic Policy and BRUEGEL. It would have four key components: • attainment of modest budget surpluses in the United States, as needed for purely domestic reasons and as actually achieved during 1998-2001, to make room for the needed impro ...
... from Asia and Europe, the Korea Institute for International Economic Policy and BRUEGEL. It would have four key components: • attainment of modest budget surpluses in the United States, as needed for purely domestic reasons and as actually achieved during 1998-2001, to make room for the needed impro ...
Entry Dynamics and the Decline in Exchange-Rate Pass-Through
... In this paper, we model how the entry and exit decisions of exporting firms affect passthrough. This is particularly important since the decline in pass-through has occurred as a greater concentration of foreign firms are exporting to the United States. We find that the effect of entry on pass-throu ...
... In this paper, we model how the entry and exit decisions of exporting firms affect passthrough. This is particularly important since the decline in pass-through has occurred as a greater concentration of foreign firms are exporting to the United States. We find that the effect of entry on pass-throu ...
The Causes of Persistent Inflation in Nigeria
... Nigerian economy experienced double-digit inflation with the highest figure recorded at about 35% in 2003. Based on the foregoing, it could be reasonably deduced that the Nigerian economic environment has been and probably is still experiencing inflationary episodes and this may tempt one to call in ...
... Nigerian economy experienced double-digit inflation with the highest figure recorded at about 35% in 2003. Based on the foregoing, it could be reasonably deduced that the Nigerian economic environment has been and probably is still experiencing inflationary episodes and this may tempt one to call in ...
Special drawing rights, the dollar, and the institutionalist approach to
... strengthen if foreign governments decided to peg their own currencies to the dollar, or if they continued to purchase dollar debt. Foreign governments may be motivated to support the dollar, based on the monetary peg theory of Ronald McKinnon, or the Bretton Woods II theory of Michael Dooley, David ...
... strengthen if foreign governments decided to peg their own currencies to the dollar, or if they continued to purchase dollar debt. Foreign governments may be motivated to support the dollar, based on the monetary peg theory of Ronald McKinnon, or the Bretton Woods II theory of Michael Dooley, David ...
Continuous time regime switching model applied to foreign
... of exchange rate fluctuations on their international portfolios. Governments are serious about the prices of exports and imports and their domestic currency value of debt payments, such as the huge debate of the Chinese Yuan’s evaluation in recent years. Central banks care about the value of their i ...
... of exchange rate fluctuations on their international portfolios. Governments are serious about the prices of exports and imports and their domestic currency value of debt payments, such as the huge debate of the Chinese Yuan’s evaluation in recent years. Central banks care about the value of their i ...
Openness and equilibrium determinacy under interest rate rules
... economy models despite the empirical evidence that most inflation-targeting countries have also a large trade share. In this paper, we argue that whether a feedback interest rate rule ensures equilibrium determinacy depends in general on whether and to what extent the country is open to internationa ...
... economy models despite the empirical evidence that most inflation-targeting countries have also a large trade share. In this paper, we argue that whether a feedback interest rate rule ensures equilibrium determinacy depends in general on whether and to what extent the country is open to internationa ...
as a PDF
... risk as iL shows up. However, we need to explain what is behind the interest rate iL. In order to do so we need to introduce an institutional investor and derive an expression for the country risk. ...
... risk as iL shows up. However, we need to explain what is behind the interest rate iL. In order to do so we need to introduce an institutional investor and derive an expression for the country risk. ...
Prologue -- Tearing Down Walls -- History of the International
... The conference’s neglect of economics did not result from a failure to understand the importance of international trade for prosperity and thus for maintaining the peace. As the quotation at the head of this prologue shows, Woodrow Wilson had made this relationship clear in his “fourteen points” spe ...
... The conference’s neglect of economics did not result from a failure to understand the importance of international trade for prosperity and thus for maintaining the peace. As the quotation at the head of this prologue shows, Woodrow Wilson had made this relationship clear in his “fourteen points” spe ...
Chapter 30
... Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, ...
... Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, ...
Monetary Policy Report – May 1995
... Estimation of Potential Output The level of potential output is unobservable. Traditional estimates either (i) choose a base period in which the economy was believed to be operating at capacity and assume that the level of potential output grew at a constant rate from then on, or (ii) assume a const ...
... Estimation of Potential Output The level of potential output is unobservable. Traditional estimates either (i) choose a base period in which the economy was believed to be operating at capacity and assume that the level of potential output grew at a constant rate from then on, or (ii) assume a const ...
NBER WORKING PAPER SERIES TARIFFS, TERMS OF TRADE, AND INTERTEMPORAL OPTIMIZING MODEL
... simultaneously the external and internal (i.e., nontradables) sectors.6 In terms of the model the vector of equilibrium relative prices ...
... simultaneously the external and internal (i.e., nontradables) sectors.6 In terms of the model the vector of equilibrium relative prices ...
NBER WORKING PAPER SERIES MONETARY INSTRUMENTS AND POLICY RULES Michael Dotsey
... supply response to interest rate movements. Further, since private agents find the ...
... supply response to interest rate movements. Further, since private agents find the ...
central bank interventions, communication and interest rate policy in
... rate interventions on the rather illiquid FX markets. However, restrictions on capital movements were gradually levied from 1994 onward, because the countries wished to join the OECD and the European Union and because of IMF recommendations. As a matter of fact, one important reason for the shift to ...
... rate interventions on the rather illiquid FX markets. However, restrictions on capital movements were gradually levied from 1994 onward, because the countries wished to join the OECD and the European Union and because of IMF recommendations. As a matter of fact, one important reason for the shift to ...
effects of expansionary monetary policy
... the effects of an exogenous shock to monetary policy. CEE find that there has been agreement over the qualitative impact of monetary policy shocks, whereas the quantitative effects of monetary policy shocks have been an issue of debate. The qualitative effect of an increase in the interest rate (mon ...
... the effects of an exogenous shock to monetary policy. CEE find that there has been agreement over the qualitative impact of monetary policy shocks, whereas the quantitative effects of monetary policy shocks have been an issue of debate. The qualitative effect of an increase in the interest rate (mon ...
US-Europe Economic Interdependence and Policy
... except in steady state. However, this is not sufficient to cause overshooting of the dollar exchange rate following policy shocks. Adjustment in real variables removes the need for nominal exchange rate overshooting to re-equilibrate markets. Starting from a zero-asset holding position, unexpected m ...
... except in steady state. However, this is not sufficient to cause overshooting of the dollar exchange rate following policy shocks. Adjustment in real variables removes the need for nominal exchange rate overshooting to re-equilibrate markets. Starting from a zero-asset holding position, unexpected m ...
Building a Kenyan Monetary Regime for the 21 Century
... particularly good time to consider the choices facing the authorities, and the Central Bank in particular, as the transformation of the macroeconomic landscape in Kenya, as elsewhere in Africa, has so altered conditions that the redesign of the monetary framework is both pressing and meaningful. Thi ...
... particularly good time to consider the choices facing the authorities, and the Central Bank in particular, as the transformation of the macroeconomic landscape in Kenya, as elsewhere in Africa, has so altered conditions that the redesign of the monetary framework is both pressing and meaningful. Thi ...
Brief History of the Gold Standard in the United States
... Under such a law, it is still possible to make a contract in something other than the legally designated currency. A vendor, for example, may specify that the payment needed to induce provision of a service will not be accepted in legal tender. But if payment for an obligation not otherwise specifie ...
... Under such a law, it is still possible to make a contract in something other than the legally designated currency. A vendor, for example, may specify that the payment needed to induce provision of a service will not be accepted in legal tender. But if payment for an obligation not otherwise specifie ...
Brief History of the Gold Standard in the United States
... Under such a law, it is still possible to make a contract in something other than the legally designated currency. A vendor, for example, may specify that the payment needed to induce provision of a service will not be accepted in legal tender. But if payment for an obligation not otherwise specifie ...
... Under such a law, it is still possible to make a contract in something other than the legally designated currency. A vendor, for example, may specify that the payment needed to induce provision of a service will not be accepted in legal tender. But if payment for an obligation not otherwise specifie ...
DP2003/8 The stabilisation problem: The case of New Zealand
... superior to the discretion outcome because by committing to a rule and sticking to it, the central bank can effectively shape agents’ expectations, which helps the central bank achieve its objectives. In game theory terms, the central bank acts first under commitment and agents form expectations on ...
... superior to the discretion outcome because by committing to a rule and sticking to it, the central bank can effectively shape agents’ expectations, which helps the central bank achieve its objectives. In game theory terms, the central bank acts first under commitment and agents form expectations on ...