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 ...
research paper series Research Paper 2011/27 T
... affected the performance of firms that were exporters compared to those that were non-exporters. In order to analyze all these possibilities we develop a two-sector extension of the combined fixed and variable investment versions of the Holmström and Tirole (1997) closed-economy model. Our first con ...
... affected the performance of firms that were exporters compared to those that were non-exporters. In order to analyze all these possibilities we develop a two-sector extension of the combined fixed and variable investment versions of the Holmström and Tirole (1997) closed-economy model. Our first con ...
Can Foreign Exchange Intervention Stem Exchange Rate Pressures
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
NBER WORKING PAPER SERIES DISINFLATION AND FISCAL REFORM: A NEOCLASSICAL PERSPECTIVE
... During the last two decades, many Latin American countries engaged in disinflation programs based on both exchange rate management and fiscal reforms. However, in most instances, part of the fiscal reform was delayed or not implemented completely, so the fiscal deficit increased and the program had ...
... During the last two decades, many Latin American countries engaged in disinflation programs based on both exchange rate management and fiscal reforms. However, in most instances, part of the fiscal reform was delayed or not implemented completely, so the fiscal deficit increased and the program had ...
Uncleared margin rules: Currency investors brace for change
... any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Russell Investments’ ownership is composed of a majority stake held by funds manag ...
... any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Russell Investments’ ownership is composed of a majority stake held by funds manag ...
Freeing the World from the Free Market Economy
... before we can hope to find solutions to the myriad of problems facing humanity. Its basis lies in the idea that we will seek to satisfy our own individual rational interests prior to addressing other concerns. Therefore, based on level of importance to an individual, economic stability is crucial to ...
... before we can hope to find solutions to the myriad of problems facing humanity. Its basis lies in the idea that we will seek to satisfy our own individual rational interests prior to addressing other concerns. Therefore, based on level of importance to an individual, economic stability is crucial to ...
Economic Papers. 173. Latin America`s integration processes in the
... Since the early 1960s, a number of subregional trade and economic integration processes involving Latin American countries have developed. They include, in historical order, the Central American Common Market (CACM), the Andean Community, Mercosur, and the North American Free Trade Agreement (NAFTA) ...
... Since the early 1960s, a number of subregional trade and economic integration processes involving Latin American countries have developed. They include, in historical order, the Central American Common Market (CACM), the Andean Community, Mercosur, and the North American Free Trade Agreement (NAFTA) ...
Monetary Policy Statement June 2004 Contents
... The Reserve Bank has increased the Official Cash Rate to 5.75 per cent. The New Zealand economy has enjoyed strong growth over an extended period. For some time, we have been expecting growth to slow due to a range of factors such as the high exchange rate and declining population gr owth. But activ ...
... The Reserve Bank has increased the Official Cash Rate to 5.75 per cent. The New Zealand economy has enjoyed strong growth over an extended period. For some time, we have been expecting growth to slow due to a range of factors such as the high exchange rate and declining population gr owth. But activ ...
Monetary Policy Strategies for Emerging Market Countries
... continued tapping the markets with IMF support, external financing dried up and real output fell by 3.5 percent in the second half of the year (see Figure 3). The devaluation of the Brazilian real in January 1999 sent Argentina into a full-blown recession that lasted more than three years. The sudde ...
... continued tapping the markets with IMF support, external financing dried up and real output fell by 3.5 percent in the second half of the year (see Figure 3). The devaluation of the Brazilian real in January 1999 sent Argentina into a full-blown recession that lasted more than three years. The sudde ...
Stop-loss orders and price cascades in currency markets
... must be news. Yet Cai et al. (2002) find that the arrival of news was of only "secondary importance" for extraordinary yen volatility throughout 1998. Likewise, Evans (2001) finds that "public news is rarely the predominant source of exchange rate movements over any horizon" (p. 1, italics in the or ...
... must be news. Yet Cai et al. (2002) find that the arrival of news was of only "secondary importance" for extraordinary yen volatility throughout 1998. Likewise, Evans (2001) finds that "public news is rarely the predominant source of exchange rate movements over any horizon" (p. 1, italics in the or ...
NBER WORKING PAPER SERIES ISSUES CONCERNING NOMINAL ANCHORS FOR MONETARY POLICY Robert Flood
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...
exchange rate volatility and exports in south africa
... The results do not support the hypothesis that exchange rate volatility has a significant, first order negative effect on South African trade flows. Results from time series analysis indicate a weakly positive long run relation and no consistent short run relation between total exports and exchange ...
... The results do not support the hypothesis that exchange rate volatility has a significant, first order negative effect on South African trade flows. Results from time series analysis indicate a weakly positive long run relation and no consistent short run relation between total exports and exchange ...
A new heterodox model is presented for an open
... based on the scale of production or demand. Lucas (1988) and Romer (1990) give another justification for the hypothesis of an increasing-returns-to-scale production function: the level of knowledge is increasing independently from capital and labor. Therefore, the scale of the economy (Y) is an expl ...
... based on the scale of production or demand. Lucas (1988) and Romer (1990) give another justification for the hypothesis of an increasing-returns-to-scale production function: the level of knowledge is increasing independently from capital and labor. Therefore, the scale of the economy (Y) is an expl ...
NBER WORKING PAPER SERIES A LONG RUN VIEW Michael D. Bordo
... currency debt, combined with other financial weaknesses remain a vulnerability. We first investigate the empirical relationship between financial crises and foreign currency debt, economic growth and output. All else equal, we find robust evidence that foreign currency debt increases the likelihood ...
... currency debt, combined with other financial weaknesses remain a vulnerability. We first investigate the empirical relationship between financial crises and foreign currency debt, economic growth and output. All else equal, we find robust evidence that foreign currency debt increases the likelihood ...
stop-loss orders and price cascades in currency markets
... must be news. Yet Cai et al. (2002) find that the arrival of news was of only "secondary importance" for extraordinary yen volatility throughout 1998. Likewise, Evans (2001) finds that "public news is rarely the predominant source of exchange rate movements over any horizon" (p. 1, italics in the or ...
... must be news. Yet Cai et al. (2002) find that the arrival of news was of only "secondary importance" for extraordinary yen volatility throughout 1998. Likewise, Evans (2001) finds that "public news is rarely the predominant source of exchange rate movements over any horizon" (p. 1, italics in the or ...
PDF
... Dornbusch explains, the effect of monetary expansion is. therefore, to induce an immediate depreciation in the spot rate that exceeds the long-run depreciation, since only under these circu~nstanceswill the public anticipate an appreciating exchange rate and thus be compensated for the reduced retur ...
... Dornbusch explains, the effect of monetary expansion is. therefore, to induce an immediate depreciation in the spot rate that exceeds the long-run depreciation, since only under these circu~nstanceswill the public anticipate an appreciating exchange rate and thus be compensated for the reduced retur ...
This PDF is a selection from a published volume from... Economic Research
... aversion to liquidity risk can have on current account and the other macroeconomic variables in a simple open economy model. In the model, each representative agent maximizes the utility function over time. Since Obstfeld and Rogoff (1997), usefulness of utility-based models has been widely recognize ...
... aversion to liquidity risk can have on current account and the other macroeconomic variables in a simple open economy model. In the model, each representative agent maximizes the utility function over time. Since Obstfeld and Rogoff (1997), usefulness of utility-based models has been widely recognize ...
Put-Call Parity, Transaction Costs and PHLX Currency
... arbitrage profit ($) for each LBC deviation, multiplied by the contract size. Similarly, mean profit ($) for all currencies is calculated as summation of total arbitrage profit ($) for each currency (British pound, Swiss franc and Euro) divided by total number of PCP deviations for all currencies. I ...
... arbitrage profit ($) for each LBC deviation, multiplied by the contract size. Similarly, mean profit ($) for all currencies is calculated as summation of total arbitrage profit ($) for each currency (British pound, Swiss franc and Euro) divided by total number of PCP deviations for all currencies. I ...
Accumulation of Foreign Exchange Reserves and Long Term Growth
... exports, restructuring, and growth, while fighting inflation through tight fiscal and monetary policy (sterilization of increases in money supply caused by the growth of foreign exchange reserves), not through highly priced national currency. Undervalued currency – the necessary component of export ...
... exports, restructuring, and growth, while fighting inflation through tight fiscal and monetary policy (sterilization of increases in money supply caused by the growth of foreign exchange reserves), not through highly priced national currency. Undervalued currency – the necessary component of export ...
Monetary Policy Independence under Flexible
... are no obvious domestic reasons for raising interest rates, some central banks will follow the Fed. This phenomenon may be called policy “spillover,” and could be the result of a number of factors, including the desire to protect domestic currencies from “excessive” depreciation.6 The late Ron McKin ...
... are no obvious domestic reasons for raising interest rates, some central banks will follow the Fed. This phenomenon may be called policy “spillover,” and could be the result of a number of factors, including the desire to protect domestic currencies from “excessive” depreciation.6 The late Ron McKin ...
A Study Before and After German Unification
... feasible solution to defending a currency under a fixed exchange rate system, but it has one shortcoming which makes it ...
... feasible solution to defending a currency under a fixed exchange rate system, but it has one shortcoming which makes it ...