Nontraded Goods, Market Segmentation, and Exchange Rates
... traded goods are consistent with prices of imported goods that are sticky in the currency of the consumer (local currency pricing). This pricing mechanism, however, dampens the expenditure-switching effect of nominal exchange rate movements. This effect, a central feature of models in which imports ...
... traded goods are consistent with prices of imported goods that are sticky in the currency of the consumer (local currency pricing). This pricing mechanism, however, dampens the expenditure-switching effect of nominal exchange rate movements. This effect, a central feature of models in which imports ...
NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
... both countries, but their exports harmed politically powerful domestic constituencies, textiles and electronics in the case of Japan and iron and steel in the case of Germany. Because they feared importing inflation from the United States, West German officials had shown flexibility with regard to ...
Nontraded Goods, Market Segmentation, and Exchange Rates WP
... traded goods are consistent with prices of imported goods that are sticky in the currency of the consumer (local currency pricing). This pricing mechanism, however, dampens the expenditure-switching effect of nominal exchange rate movements. This effect, a central feature of models in which imports ...
... traded goods are consistent with prices of imported goods that are sticky in the currency of the consumer (local currency pricing). This pricing mechanism, however, dampens the expenditure-switching effect of nominal exchange rate movements. This effect, a central feature of models in which imports ...
Pricing-to-Market - The Review of Economic Studies
... markup in the home market increases one-for-one with home currency depreciations and decreases one-for-one with home currency appreciations. This implies that real exchange rates at the plant-product level track nominal exchange rates, even conditional on price changes. This behavior is pervasive ac ...
... markup in the home market increases one-for-one with home currency depreciations and decreases one-for-one with home currency appreciations. This implies that real exchange rates at the plant-product level track nominal exchange rates, even conditional on price changes. This behavior is pervasive ac ...
A Brief Survey of Dutch Monetary Policy in the Post-war Period1
... period has been remarkable not only in its conceptual framework but also in its strategy. For several decades, monetary authorities adopted a dual strategy of combined monetary and exchange rate targeting. As is widely accepted, in a small open economy, such as the Netherlands, these two goals canno ...
... period has been remarkable not only in its conceptual framework but also in its strategy. For several decades, monetary authorities adopted a dual strategy of combined monetary and exchange rate targeting. As is widely accepted, in a small open economy, such as the Netherlands, these two goals canno ...
Real Exchange Rates and International Competitiveness
... The persistence of a high level of real exchange rate since 2000 has been a focal point of policy discussions. The exchange rate workshop hosted by the Treasury and the Reserve Bank in March 2013 discussed a wide range of issues including exchange rate regimes, drivers of the exchange rate and their ...
... The persistence of a high level of real exchange rate since 2000 has been a focal point of policy discussions. The exchange rate workshop hosted by the Treasury and the Reserve Bank in March 2013 discussed a wide range of issues including exchange rate regimes, drivers of the exchange rate and their ...
Engineering Good Times: Fiscal Manipulation in a Global Economy
... domestic economy. As Edwards and Levy-Yeyati note, a flexible exchange rate acts as a “shock absorber”.31 The logic for this argument stems from Meade’s and Friedman’s arguments that in an economy typified by some degree of price rigidity, i.e., all economies in practice, flexible exchange rates all ...
... domestic economy. As Edwards and Levy-Yeyati note, a flexible exchange rate acts as a “shock absorber”.31 The logic for this argument stems from Meade’s and Friedman’s arguments that in an economy typified by some degree of price rigidity, i.e., all economies in practice, flexible exchange rates all ...
Evaluating Alternative Measures of the Real Effective Exchange Rate
... considered. Moreover, the value of using broad rather than narrow indices will depend on the extent to which they provide a different picture of a country’s international competitiveness. For Canada, however, the breadth of country coverage does not matter much, given the high concentration of its t ...
... considered. Moreover, the value of using broad rather than narrow indices will depend on the extent to which they provide a different picture of a country’s international competitiveness. For Canada, however, the breadth of country coverage does not matter much, given the high concentration of its t ...
RESERVE REQUIREMENTS FOR PRICE AND FINANCIAL
... contain fluctuations in credit in addition to output and prices. Adjusting only the interest rate increases the volatility of the three target variables substantially. Overall our results therefore indicate that reserve requirements can support the price stability objective only if financial frictio ...
... contain fluctuations in credit in addition to output and prices. Adjusting only the interest rate increases the volatility of the three target variables substantially. Overall our results therefore indicate that reserve requirements can support the price stability objective only if financial frictio ...
Working Paper No. 355 Can Monetary Policy Affect The Real
... period's output gap influences changes in prices between last period and this period), and output-gap responds immediately to interest rate. The lags in monetary policy, which we discuss below, do not get a mention. Under these conditions it is essential to ask the question of the possibility of inf ...
... period's output gap influences changes in prices between last period and this period), and output-gap responds immediately to interest rate. The lags in monetary policy, which we discuss below, do not get a mention. Under these conditions it is essential to ask the question of the possibility of inf ...
Seminar Paper No. 687 THE ZERO BOUND IN AN OPEN ECONOMY:
... out of the liquidity trap. A problem with this suggestion is that a mere announcement of a future monetary expansion or an in‡ation target need not be credible with the private sector and therefore not a¤ect in‡ation expectations, in the absence of any commitment mechanism or any action supporting ...
... out of the liquidity trap. A problem with this suggestion is that a mere announcement of a future monetary expansion or an in‡ation target need not be credible with the private sector and therefore not a¤ect in‡ation expectations, in the absence of any commitment mechanism or any action supporting ...
Notes 11B to 13
... invest monies that are surplus to operational requirements. As a general principle, surplus money may only be placed on deposit with a bank or invested directly in securities issued or guaranteed by the Australian Government, a state or a territory, unless an exemption is approved by the Finance Min ...
... invest monies that are surplus to operational requirements. As a general principle, surplus money may only be placed on deposit with a bank or invested directly in securities issued or guaranteed by the Australian Government, a state or a territory, unless an exemption is approved by the Finance Min ...
The Effects of Exchange Rate Regimes on Real Exchange
... On the empirical side, there are many studies that analyze the impact of exchange rate regimes on different macroeconomic variables, such as inflation and its volatility, real interest rate, and growth and its volatility. However, the relationship between ER regime and RER volatility is an issue tha ...
... On the empirical side, there are many studies that analyze the impact of exchange rate regimes on different macroeconomic variables, such as inflation and its volatility, real interest rate, and growth and its volatility. However, the relationship between ER regime and RER volatility is an issue tha ...
Adaptational Pressure, Domestic Politics and the Evolution of the
... the EMS. The EMU was envisioned as a solution to the rising costs of policy adaptation that was brought about by the successful EMS. Against this backdrop, domestic political actors were sharply divided over the appropriate monetary policies. Those political actors who committed themselves to domest ...
... the EMS. The EMU was envisioned as a solution to the rising costs of policy adaptation that was brought about by the successful EMS. Against this backdrop, domestic political actors were sharply divided over the appropriate monetary policies. Those political actors who committed themselves to domest ...
Study Guide - Amazon Web Services
... c. Over the past 200 years, international trade throughout the world has grown more rapidly than world output. d. In the late 1990s, the United States exported less than it did 500 years earlier. ____ 4. In modern terms, Adam Smith’s “division of labour” is commonly referred to as: a. economic growt ...
... c. Over the past 200 years, international trade throughout the world has grown more rapidly than world output. d. In the late 1990s, the United States exported less than it did 500 years earlier. ____ 4. In modern terms, Adam Smith’s “division of labour” is commonly referred to as: a. economic growt ...
PDF
... sales will be in foreign countries. Consequently, more US agribusinesses are attempting to increase sales by expanding their activities abroad. Although exports are traditionally considered to be the primary way to access overseas markets, US food companies earn far more from sales of their foreign ...
... sales will be in foreign countries. Consequently, more US agribusinesses are attempting to increase sales by expanding their activities abroad. Although exports are traditionally considered to be the primary way to access overseas markets, US food companies earn far more from sales of their foreign ...
Trends in cryptocurrencies and blockchain technologies: a monetary
... this question in more detail from both the traditional metalist views on currency value generation and more recent (and perhaps less-orthodox) monetary theories, such as the Modern Monetary Theory (MMT), in this context. We discuss issues relating to monetary theory and resultant economic policy imp ...
... this question in more detail from both the traditional metalist views on currency value generation and more recent (and perhaps less-orthodox) monetary theories, such as the Modern Monetary Theory (MMT), in this context. We discuss issues relating to monetary theory and resultant economic policy imp ...
NBER WORKING PAPER SERIES RE-EVALUATING SWEDISH MEMBERSHIP IN EMU: Ulf Söderström
... and Growth Pact. The ratio of government debt to GDP was close to 75% in 1995–96, and the government deficit amounted to 9% and 7% of GDP in 1994 and 1995, respectively. Again, this difficult fiscal situation was partly caused by the recession in the early 1990s. 3. To ensure legitimacy among the el ...
... and Growth Pact. The ratio of government debt to GDP was close to 75% in 1995–96, and the government deficit amounted to 9% and 7% of GDP in 1994 and 1995, respectively. Again, this difficult fiscal situation was partly caused by the recession in the early 1990s. 3. To ensure legitimacy among the el ...
MALAYSIA’S RESPONSE TO THE FINANCIAL CRISIS: Shankaran Nambiar*
... the result of increases in the investment rate. From 1995 to 1997 the ratio of investment to GDP was above 45 per cent. The persistent CAD had been due to excessive investments in non-tradeables such as power generation and telecommunications. This has been criticized on two grounds (Jomo, 2001:163) ...
... the result of increases in the investment rate. From 1995 to 1997 the ratio of investment to GDP was above 45 per cent. The persistent CAD had been due to excessive investments in non-tradeables such as power generation and telecommunications. This has been criticized on two grounds (Jomo, 2001:163) ...
Real equilibrium exchange rates for Norway
... This article presents and applies three different approaches to determine the equilibrium exchange rate for Norway. These approaches are: the theory of purchasing power parity (PPP), the behavioural equilibrium real exchange rate (BEER) approach and the fundamental equilibrium real exchange rate (F ...
... This article presents and applies three different approaches to determine the equilibrium exchange rate for Norway. These approaches are: the theory of purchasing power parity (PPP), the behavioural equilibrium real exchange rate (BEER) approach and the fundamental equilibrium real exchange rate (F ...
NBER WORKING PAPER SERIES INTERNATIONAL RESERVES MANAGEMENT
... the possibility of costly recessions. To simplify the discussion, we strip fiscal considerations from the problem, and identify the precautionary demand for international reserves that is independent of the inefficiencies associated with costly taxes. We study a two-period emerging-market economy wh ...
... the possibility of costly recessions. To simplify the discussion, we strip fiscal considerations from the problem, and identify the precautionary demand for international reserves that is independent of the inefficiencies associated with costly taxes. We study a two-period emerging-market economy wh ...