An Independent Review of Monetary Policy and Institutions in Norway
... some problems and inconsistencies associated with the current standard assumption of constant interest and exchange rates. It may also make monetary policy more predictable and improve the Bank’s communication with the market. The central projections should be the mean projections (the probability-w ...
... some problems and inconsistencies associated with the current standard assumption of constant interest and exchange rates. It may also make monetary policy more predictable and improve the Bank’s communication with the market. The central projections should be the mean projections (the probability-w ...
Long–and Short–Run Determinants of Demand for Money and its
... demand for money and its stability in the Gambia using quarterly time series data from 1993:I to 2008:IV. The Johansen cointegration test shows the existence of a long-run equilibrium relationship between money demand, income, interest rate, inflation rate and exchange rate. However, the short-run d ...
... demand for money and its stability in the Gambia using quarterly time series data from 1993:I to 2008:IV. The Johansen cointegration test shows the existence of a long-run equilibrium relationship between money demand, income, interest rate, inflation rate and exchange rate. However, the short-run d ...
Inflation and the making of macroeconomic policy in Australia, 1945
... Structures are relatively autonomous from one another, i.e., they are shaped by but not fully determined by the other structures they depend upon: it makes a difference to the science of biology that universities are heavily involved in its reproduction, but does not fully determine its content. Bio ...
... Structures are relatively autonomous from one another, i.e., they are shaped by but not fully determined by the other structures they depend upon: it makes a difference to the science of biology that universities are heavily involved in its reproduction, but does not fully determine its content. Bio ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... borrow and lend unlimited amounts at this nominal rate, and then no one would borrow from another person at a higher rate nor would one lend to another at a lower rate. If the Fed can print nominal bonds as well as money in unlimited amounts, there is no limit to its ability to do this (or to repay ...
... borrow and lend unlimited amounts at this nominal rate, and then no one would borrow from another person at a higher rate nor would one lend to another at a lower rate. If the Fed can print nominal bonds as well as money in unlimited amounts, there is no limit to its ability to do this (or to repay ...
A Journey to Inflation Targeting: Easier Said than Done
... The subject matter has gained momentum at the Fund in the context of the recently introduced monetary conditionality for countries with evolving monetary policy regimes.4 The evolution of monetary policy frameworks has implications for monetary conditionality in Fund-supported programs. There are cl ...
... The subject matter has gained momentum at the Fund in the context of the recently introduced monetary conditionality for countries with evolving monetary policy regimes.4 The evolution of monetary policy frameworks has implications for monetary conditionality in Fund-supported programs. There are cl ...
Outside the Band: Depreciation and Inflation Dynamics in Chile
... economies frequently exposed to terms of trade shocks, such as Chile (De Gregorio and others, 2005). Exchange rate movements generate relative price adjustments between traded and non-traded goods, leading to resource reallocation and mitigating the impact on output from external real shocks. Specif ...
... economies frequently exposed to terms of trade shocks, such as Chile (De Gregorio and others, 2005). Exchange rate movements generate relative price adjustments between traded and non-traded goods, leading to resource reallocation and mitigating the impact on output from external real shocks. Specif ...
1 Chapter
... A) increases when income increases above normal. B) decreases when interest rates decrease below normal. C) increases when interest rates decrease below normal. D) decreases when the price level decreases below normal. Answer: C Diff: 1 Topic: The Demand for Money Skill: Conceptual AACSB: Reflective ...
... A) increases when income increases above normal. B) decreases when interest rates decrease below normal. C) increases when interest rates decrease below normal. D) decreases when the price level decreases below normal. Answer: C Diff: 1 Topic: The Demand for Money Skill: Conceptual AACSB: Reflective ...
NBER WORKING PAPER SERIES MONETARY POLICY STRATEGY: HOW DID WE GET HERE?
... monetary policy. In the 1970s, inflation had risen to very high levels, with most countries, , including the United States, experiencing inflation rates in the double digits. Today, almost all nations in the world are in a low inflation environment. Of two hundred and twenty-three countries, one hun ...
... monetary policy. In the 1970s, inflation had risen to very high levels, with most countries, , including the United States, experiencing inflation rates in the double digits. Today, almost all nations in the world are in a low inflation environment. Of two hundred and twenty-three countries, one hun ...
Does Pakistan Need To Adopt Inflation Targeting?
... are not sufficient conditions for Pakistan to adopt IT as a monetary regime. The key questions in this debate are, first, whether Pakistan is ready for it, as there are a number of requirements to be met for this regime to be a sensible option as a monetary regime; and second, whether the SBP has co ...
... are not sufficient conditions for Pakistan to adopt IT as a monetary regime. The key questions in this debate are, first, whether Pakistan is ready for it, as there are a number of requirements to be met for this regime to be a sensible option as a monetary regime; and second, whether the SBP has co ...
Exchange Rate Predictability in a Changing World
... Having defined the form and the method to estimate the parameters of our main forecasting regression, an additional modelling issue relates to the exact specification of the fundamental information contained in ...
... Having defined the form and the method to estimate the parameters of our main forecasting regression, an additional modelling issue relates to the exact specification of the fundamental information contained in ...
NBER WORKING PAPER SERIES EXTERNAL ADJUSTMENT AND THE GLOBAL CRISIS
... In this paper, we analyze the external adjustment process following the financial crisis. Our hypothesis is that pre-crisis current account imbalances widened beyond levels consistent with sustainable medium-term positions. The emergence of large imbalances was facilitated by a benign global financi ...
... In this paper, we analyze the external adjustment process following the financial crisis. Our hypothesis is that pre-crisis current account imbalances widened beyond levels consistent with sustainable medium-term positions. The emergence of large imbalances was facilitated by a benign global financi ...
Monetary policy background to the gold transactions of the Swiss
... This paper attempts to describe the monetary policy background to the gold transactions of the Swiss National Bank (SNB) in the Second World War. The Independent Commission of Experts Switzerland – Second World War (ICE) addressed the general problem of the SNB gold transactions in the Second World ...
... This paper attempts to describe the monetary policy background to the gold transactions of the Swiss National Bank (SNB) in the Second World War. The Independent Commission of Experts Switzerland – Second World War (ICE) addressed the general problem of the SNB gold transactions in the Second World ...
A Microfoundation of Monetary Economics
... These shortcuts are convenient because they do not have to modify radically the analytical and computational techniques developed for the general equilibrium framework. But analytical convenience often comes at a price. With the shortcuts, the functional forms in which money appears in the models a ...
... These shortcuts are convenient because they do not have to modify radically the analytical and computational techniques developed for the general equilibrium framework. But analytical convenience often comes at a price. With the shortcuts, the functional forms in which money appears in the models a ...
changes in equilibrium level of the interest rate and aggregate output
... 1 at an interest rate iA crosses the 45° line Y = Y at an aggregate output level of YA. When autonomous consumer expenditure rises because of the oil discovery, the aggregate demand function shifts upward to Y ad 2 and equilibrium output rises to YA¿. This rise in equilibrium output from YA to YA¿ w ...
... 1 at an interest rate iA crosses the 45° line Y = Y at an aggregate output level of YA. When autonomous consumer expenditure rises because of the oil discovery, the aggregate demand function shifts upward to Y ad 2 and equilibrium output rises to YA¿. This rise in equilibrium output from YA to YA¿ w ...
early warning indicators for developed countries - ECB
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
... apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data availability. To account for the fact that early warning signals may come at different horizons, we consider time horizons varying from less than a year (‘late warning’) to up to ...
The Current Account and Macroeconomic Adjustment in the 1970s
... affected by aggregate demand; real interest rates are tied to the marginal productivity of capital and are not influenced by monetary policies, and frictions in adjusting to shocks are unimportant. These presumptions still permit a variety of responses, depending on the nature of shocks to the syste ...
... affected by aggregate demand; real interest rates are tied to the marginal productivity of capital and are not influenced by monetary policies, and frictions in adjusting to shocks are unimportant. These presumptions still permit a variety of responses, depending on the nature of shocks to the syste ...
Arbitrage in the foreign exchange market
... the International Monetary Fund and Norges Bank. The authors are grateful to a number of people who kindly offered constructive comments at various stages of this paper, including Ulf Axelson, Magnus Dahlquist, Martin Evans, Rich Lyons, Michael Melvin, Kristian Miltersen, Michael Moore, Carol Osler, ...
... the International Monetary Fund and Norges Bank. The authors are grateful to a number of people who kindly offered constructive comments at various stages of this paper, including Ulf Axelson, Magnus Dahlquist, Martin Evans, Rich Lyons, Michael Melvin, Kristian Miltersen, Michael Moore, Carol Osler, ...
The Currency Market and its Satellites
... B the pound used to play the key role taken by USD after WW2 Also US traders still do this; so they use unnatural one for e.g. CHF but natural quote for GBP etc ...
... B the pound used to play the key role taken by USD after WW2 Also US traders still do this; so they use unnatural one for e.g. CHF but natural quote for GBP etc ...
Global Shocks, Global Financial Crises: How can small open economies like
... I have extended the historical comparisons to include Debt Crises (1880–1913 versus 1972-1997) (Bordo and Meissner 2006) and Sudden Stops (1880-1913 versus 1980-2004) (Bordo, Cavallo, and Meissner 2009). See Figures 3 and 4. In terms of output losses, sudden stops were less serious than other crises ...
... I have extended the historical comparisons to include Debt Crises (1880–1913 versus 1972-1997) (Bordo and Meissner 2006) and Sudden Stops (1880-1913 versus 1980-2004) (Bordo, Cavallo, and Meissner 2009). See Figures 3 and 4. In terms of output losses, sudden stops were less serious than other crises ...
Asset Return Predictability
... (1) Under relative PPP, Rt remains constant (it can be different from 1!). (2) Relative PPP does not imply that St is easy to forecast. (3) Without relative price changes, an MNC faces no real operating FX risk (as long as the firm avoids fixed contracts denominated in FC). • Relative PPP: Absolute ...
... (1) Under relative PPP, Rt remains constant (it can be different from 1!). (2) Relative PPP does not imply that St is easy to forecast. (3) Without relative price changes, an MNC faces no real operating FX risk (as long as the firm avoids fixed contracts denominated in FC). • Relative PPP: Absolute ...
The unremunerated reserve requirement and net capital flows: Chile
... external financing, the capacity of the economy and local financial system to cope with the volatility of capital flows, the legal and regulatory infrastructure within which the URR policy would be applied, and the limitations imposed by international treaties and other legal instruments. In short, ...
... external financing, the capacity of the economy and local financial system to cope with the volatility of capital flows, the legal and regulatory infrastructure within which the URR policy would be applied, and the limitations imposed by international treaties and other legal instruments. In short, ...
Mundell`s International Economics: Adaptations and Debates
... Mundell asserts that the theoretical framework in his paper demonstrated the correct policy mix, and that President Kennedy reversed his policy mix in order to conform with the Mundell recommendation. Nonetheless he later admitted (Mundell [2002, 9]) that his view all along was that this paper is “t ...
... Mundell asserts that the theoretical framework in his paper demonstrated the correct policy mix, and that President Kennedy reversed his policy mix in order to conform with the Mundell recommendation. Nonetheless he later admitted (Mundell [2002, 9]) that his view all along was that this paper is “t ...
PHD thesis - Neven Vidakovic
... 4.2.5.1. Stable exchange rate, conduct of the monetary policy and the role of the foreign debt ................. 126 4.2.5.2. Conduct of the monetary policy under the variable exchange rate ................................................. 133 ...
... 4.2.5.1. Stable exchange rate, conduct of the monetary policy and the role of the foreign debt ................. 126 4.2.5.2. Conduct of the monetary policy under the variable exchange rate ................................................. 133 ...
CLAUS BRAND DIETER GERDESMEIER BARBARA ROFFIA May
... developments over shorter periods. In light of the fundamental monetary nature of inflation over the medium term, the ECB assigned a prominent role to money. This element – known as the “first pillar” of the strategy – was signalled by the announcement of a quantitative reference value for monetary ...
... developments over shorter periods. In light of the fundamental monetary nature of inflation over the medium term, the ECB assigned a prominent role to money. This element – known as the “first pillar” of the strategy – was signalled by the announcement of a quantitative reference value for monetary ...