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 ...
A power GARCH examination of the gold market
... While gold is an industrial metal, its uses are fewer compared to other metals, with only approximately 10% of gold demand derived from industry. Of perhaps more interest is gold’s use as an investible metal. Central banks hold a large proportion of the above-ground stocks of gold (Kaufmann and Wint ...
... While gold is an industrial metal, its uses are fewer compared to other metals, with only approximately 10% of gold demand derived from industry. Of perhaps more interest is gold’s use as an investible metal. Central banks hold a large proportion of the above-ground stocks of gold (Kaufmann and Wint ...
NBER WORKING PAPER SERIES INFLUENCE OF FOREIGN DISTURBANCES?
... This paper investigates whether an estimated microfounded semi-small open economy model can reproduce the observed comovements in international business cycles. Focusing on Canada as the small open economy, the starting point for the analysis is the large body of empirical work that identi…es a sign ...
... This paper investigates whether an estimated microfounded semi-small open economy model can reproduce the observed comovements in international business cycles. Focusing on Canada as the small open economy, the starting point for the analysis is the large body of empirical work that identi…es a sign ...
Dynamics of the Trade Balance: The Turkish J-Curve
... several months in advance. But the real depreciation will make the predetermined level of imports to cost more in domestic currency units, thus value of imports rise where the value of exports do not change much, which will worsen the trade balance immediately after the real depreciation. However as ...
... several months in advance. But the real depreciation will make the predetermined level of imports to cost more in domestic currency units, thus value of imports rise where the value of exports do not change much, which will worsen the trade balance immediately after the real depreciation. However as ...
Central Bank of the Republic of Turkey No: 2006-37
... Central Bank of the Republic of Turkey This outlook has allowed the Monetary Policy Committee (MPC) to stick to the policy path underlying the January forecast and the policy rates were cut by 0.25 percentage points in the April meeting. April inflation figures, which came out a couple of days afte ...
... Central Bank of the Republic of Turkey This outlook has allowed the Monetary Policy Committee (MPC) to stick to the policy path underlying the January forecast and the policy rates were cut by 0.25 percentage points in the April meeting. April inflation figures, which came out a couple of days afte ...
A NEW LOOK AT THE FORWARD PREMIUM PUZZLE
... namely, that future exchange rate changes do not move one-for-one with interest rate differentials across countries. In fact, they tend to move in the opposite direction (e.g., see Hodrick (1987) and Engel (1996) for survey evidence). This anomaly has led to a plethora of papers over the last two de ...
... namely, that future exchange rate changes do not move one-for-one with interest rate differentials across countries. In fact, they tend to move in the opposite direction (e.g., see Hodrick (1987) and Engel (1996) for survey evidence). This anomaly has led to a plethora of papers over the last two de ...
ECONOMIC STUDIES 101 ERIK POST MACROECONOMIC
... open economy to shed some light on factors determining exits from a fixed to a flexible exchange rate regime. Exits are in the model determined by a concern for macroeconomic stabilization. If cost-push shocks are important relative to demand shocks exits should occur more likely in times of low con ...
... open economy to shed some light on factors determining exits from a fixed to a flexible exchange rate regime. Exits are in the model determined by a concern for macroeconomic stabilization. If cost-push shocks are important relative to demand shocks exits should occur more likely in times of low con ...
Principles of Economics, Case and Fair,9e
... The amount of money needed by firms and households to facilitate their day-to-day transactions also depends on the average dollar amount of each transaction. In turn, the average amount of each transaction depends on prices, or instead, on the price level. TABLE 26.1 Determinants of Money Demand 1. ...
... The amount of money needed by firms and households to facilitate their day-to-day transactions also depends on the average dollar amount of each transaction. In turn, the average amount of each transaction depends on prices, or instead, on the price level. TABLE 26.1 Determinants of Money Demand 1. ...
the relationship between selected macroeconomic factors and gold
... Index have a very low impact on gold price independently. The finding also proves that gold does not cause and affect exchange rate, BSE Sensex, NSE Index, forex reserves and fiscal deficit but gold does affect interest rate and inflation and vice versa. Simakova (2011) stated that gold plays an imp ...
... Index have a very low impact on gold price independently. The finding also proves that gold does not cause and affect exchange rate, BSE Sensex, NSE Index, forex reserves and fiscal deficit but gold does affect interest rate and inflation and vice versa. Simakova (2011) stated that gold plays an imp ...
Lecture 7 - Money, Prices and Inflation
... Before we showed that when the supply of money increased by a fixed factor, the price level also increased by the same factor. By analogy, we make the conjecture that when the growth rate of money is constant, µt = µ, then the inflation rate is constant and equal to the growth rate of money: πt = µ. ...
... Before we showed that when the supply of money increased by a fixed factor, the price level also increased by the same factor. By analogy, we make the conjecture that when the growth rate of money is constant, µt = µ, then the inflation rate is constant and equal to the growth rate of money: πt = µ. ...
current politics and economics of europe
... number of factors. One of these was a perception that in the late 1990s and early 21st century the Canadian economy was on the decline relative to that of the US. A few years later, however, after the September 11, 2001 attacks, and in light of a rising Canadian dollar and a stronger economic recove ...
... number of factors. One of these was a perception that in the late 1990s and early 21st century the Canadian economy was on the decline relative to that of the US. A few years later, however, after the September 11, 2001 attacks, and in light of a rising Canadian dollar and a stronger economic recove ...
Exchange Rates, Economic Integration and the International
... contemporary research agenda in international trade and open-economy macroeconomics. The choice of exchange-rate regime and the suitability of regional currency unions are two important topics which receive particular attention. The apparent success of European Monetary Union and perceived failures ...
... contemporary research agenda in international trade and open-economy macroeconomics. The choice of exchange-rate regime and the suitability of regional currency unions are two important topics which receive particular attention. The apparent success of European Monetary Union and perceived failures ...
Chapter 2
... substitute relatively cheaper goods for relatively more expensive goods when prices rise (substitution bias) ...
... substitute relatively cheaper goods for relatively more expensive goods when prices rise (substitution bias) ...
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... important nonlinearities, certain results that derive from linear models do not carry over, with major implications for the monetary policy transmission channel. Interest rate pass-through is of central importance for monetary policy. With the adoption of a common currency, the euro area was faced w ...
... important nonlinearities, certain results that derive from linear models do not carry over, with major implications for the monetary policy transmission channel. Interest rate pass-through is of central importance for monetary policy. With the adoption of a common currency, the euro area was faced w ...
The Output Composition Puzzle - compositional response of GDP to
... study finds that investment is most sensitive (followed by net exports) to unanticipated increases in the cash rate, and also contributes the most to output deviation. However, this study also finds that net exports are a key driver of output reduction in the first year, and then play a role in damp ...
... study finds that investment is most sensitive (followed by net exports) to unanticipated increases in the cash rate, and also contributes the most to output deviation. However, this study also finds that net exports are a key driver of output reduction in the first year, and then play a role in damp ...
Competition in Currency The Potential for Private Money Executive Summary
... a commodity or basket of commodities. A commodity-based currency would likely be most valuable for international transactions. International traders rely on the stability of exchange rates among nations, which in turn rely on a vast array of variables that are affected by each country’s economic per ...
... a commodity or basket of commodities. A commodity-based currency would likely be most valuable for international transactions. International traders rely on the stability of exchange rates among nations, which in turn rely on a vast array of variables that are affected by each country’s economic per ...
the role of the euro in sub-saharan Africa and in the CFA franc zone
... (CEMAC) 2 have the CFA franc as a currency which is pegged to the euro. Although being two separate currency unions, they use the same exchange rate parity to the euro. Similarly, the Comores have a fixed peg of the Comorian franc to the euro. These fifteen countries are referred to as the African f ...
... (CEMAC) 2 have the CFA franc as a currency which is pegged to the euro. Although being two separate currency unions, they use the same exchange rate parity to the euro. Similarly, the Comores have a fixed peg of the Comorian franc to the euro. These fifteen countries are referred to as the African f ...
SDS-FPS: A small demand-side version of the David Hargreaves December 1999
... inflation, which has very important policy implications. For example, stabilising inflation after a positive demand shock will require a temporary negative output gap, as in a linear model. But the asymmetry implies there will be a net output loss as a result of the shock, and that loss will be mini ...
... inflation, which has very important policy implications. For example, stabilising inflation after a positive demand shock will require a temporary negative output gap, as in a linear model. But the asymmetry implies there will be a net output loss as a result of the shock, and that loss will be mini ...
General interest publications about the euro | European Commission
... rates. To cope with this risk, companies tended to sell at a higher price abroad, which discouraged trade. This risk is now gone. Additionally, trade within a single market using the same currency is simply more efficient than trade across many markets using multiple currencies. Before the euro, the ...
... rates. To cope with this risk, companies tended to sell at a higher price abroad, which discouraged trade. This risk is now gone. Additionally, trade within a single market using the same currency is simply more efficient than trade across many markets using multiple currencies. Before the euro, the ...
Relevance of a Taylor-type rule in the active monetary
... as support to economic growth and employment. But the mandate of the BAM, as the ECB, is more "hierarchical", because its primary mission is price stability. However, despite the modernization of monetary policy, the economy remains heavily dependent, for its financing, on the banking system. It has ...
... as support to economic growth and employment. But the mandate of the BAM, as the ECB, is more "hierarchical", because its primary mission is price stability. However, despite the modernization of monetary policy, the economy remains heavily dependent, for its financing, on the banking system. It has ...
Nominal GDP Targeting for Developing Countries
... Nominal GDP Targeting for Developing Countries India’s central bank has contemplated a move from its multi-indicator monetary policy approach, towards a simple credibility-enhancing nominal rule. It seems to favor a flexible inflation target, which it hopes will help lower inflation expectations th ...
... Nominal GDP Targeting for Developing Countries India’s central bank has contemplated a move from its multi-indicator monetary policy approach, towards a simple credibility-enhancing nominal rule. It seems to favor a flexible inflation target, which it hopes will help lower inflation expectations th ...
Capital Controls and Monetary Policy in Developing Countries
... countries’ exposure to the risk of capital flow bonanzas or capital flight. In 2007 net debt flows to the developing world were more than 6.5 times as big as they were in 2003; yet, in 2008 these flows were at less than half their 2007 level. Short-term debt flows, which almost quadrupled between 20 ...
... countries’ exposure to the risk of capital flow bonanzas or capital flight. In 2007 net debt flows to the developing world were more than 6.5 times as big as they were in 2003; yet, in 2008 these flows were at less than half their 2007 level. Short-term debt flows, which almost quadrupled between 20 ...
Winners and Losers from the euro
... and Hainmueller (2010, ADH) . This method allows us to estimate the income per capita EMU’s members would have experienced had they kept their independent monetary policy by exploiting data from the early 70’s. In particular, the methodology uses the data before the introduction of the euro to find, ...
... and Hainmueller (2010, ADH) . This method allows us to estimate the income per capita EMU’s members would have experienced had they kept their independent monetary policy by exploiting data from the early 70’s. In particular, the methodology uses the data before the introduction of the euro to find, ...
Interpreting Money-Supply and Interest
... endogenously and passively according to its demand. In this case, money is a passive channel with no meaningful causal role in the transmission of monetary policy. In an alternative approach, discrepancies between the nominal quantity of money demanded and the nominal quantity of money supplied are ...
... endogenously and passively according to its demand. In this case, money is a passive channel with no meaningful causal role in the transmission of monetary policy. In an alternative approach, discrepancies between the nominal quantity of money demanded and the nominal quantity of money supplied are ...
The Japan-U.S. Exchange Rate, Productivity, and the
... the dollar, to help eliminate the continuing trade deficits of the U.S. As a consequence of these policies, by February 1986, the yen-dollar exchange rate approached 180, from about 250 before the Plaza Accord (Figure 1). The yen continued to appreciate, reaching 120 in early 1988. There was another ...
... the dollar, to help eliminate the continuing trade deficits of the U.S. As a consequence of these policies, by February 1986, the yen-dollar exchange rate approached 180, from about 250 before the Plaza Accord (Figure 1). The yen continued to appreciate, reaching 120 in early 1988. There was another ...