Monetary Policy: Why Money Matters and Interest Rates Don`t
... in practice, is an aggregation (index) of the money prices of commodities. This simple fact necessitates that money is essential for the determination of the price level as we know it. Woodford (2001, 2003) has challenged this idea suggesting that in a fiat monetary system, money is nothing more th ...
... in practice, is an aggregation (index) of the money prices of commodities. This simple fact necessitates that money is essential for the determination of the price level as we know it. Woodford (2001, 2003) has challenged this idea suggesting that in a fiat monetary system, money is nothing more th ...
Chap_22
... • Because the central bank was not allowed to print more pesos without having more dollar reserves, inflation slowed dramatically. • Yet inflation was about 5% per annum, faster than U.S. inflation, so that the price/value of Argentinean goods appreciated relative to U.S. and other foreign goods. • ...
... • Because the central bank was not allowed to print more pesos without having more dollar reserves, inflation slowed dramatically. • Yet inflation was about 5% per annum, faster than U.S. inflation, so that the price/value of Argentinean goods appreciated relative to U.S. and other foreign goods. • ...
Demand for Money in the Transition Economy
... exchange rate, which impacts directly on the consumer price index via changes in the domestic value of imports. The reaction of the exchange rate to interest rates is quite fast, as is the transmission of monetary policy to inflation in the domestic economy. If prices and nominal wages are rigid, th ...
... exchange rate, which impacts directly on the consumer price index via changes in the domestic value of imports. The reaction of the exchange rate to interest rates is quite fast, as is the transmission of monetary policy to inflation in the domestic economy. If prices and nominal wages are rigid, th ...
NBER WORKING PAPER SERIES Michael B. Devereux
... condition.) This is consistent with the finding of Chari, Kehoe, and McGrattan (2002), who point out that, in time series observations, the correlation between relative consumption and real exchange rates is negative for most OECD economies. They refer to this discrepancy between theory and data as t ...
... condition.) This is consistent with the finding of Chari, Kehoe, and McGrattan (2002), who point out that, in time series observations, the correlation between relative consumption and real exchange rates is negative for most OECD economies. They refer to this discrepancy between theory and data as t ...
The Gold Price - Dubai City of Gold
... The gold price’s deviation from its fair value between 1978 and 1984 can be explained by looking at what else went on during that time. In retaliation for the Western world’s support of Israel during the Arab-Israeli War of 1973, Arab members of OPEC took control of the organization, cut oil product ...
... The gold price’s deviation from its fair value between 1978 and 1984 can be explained by looking at what else went on during that time. In retaliation for the Western world’s support of Israel during the Arab-Israeli War of 1973, Arab members of OPEC took control of the organization, cut oil product ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Japanese Monetary Policy
... time ( t - I ) , but instead will depend on surprises in money demand (velocity), even if the bank makes no such intramonth attempts. A second reason that the real exchange rate is present is that its value might affect intramonth decisions about whether or not to sterilize exchange rate operations, ...
... time ( t - I ) , but instead will depend on surprises in money demand (velocity), even if the bank makes no such intramonth attempts. A second reason that the real exchange rate is present is that its value might affect intramonth decisions about whether or not to sterilize exchange rate operations, ...
referees, and Stephen J. Turnovsky July 1983
... ineffective inofar as the stabilization of the real part of the domestic economy is concerned. Likewise, if the monetary authority intervenes in the exchange market so as to exactly accommodate for nominal movements in the demand for money, thereby rendering the excess demand for money dependent onl ...
... ineffective inofar as the stabilization of the real part of the domestic economy is concerned. Likewise, if the monetary authority intervenes in the exchange market so as to exactly accommodate for nominal movements in the demand for money, thereby rendering the excess demand for money dependent onl ...
The Nature and Role of Monetary Policy When Money Is Endogenous
... (through the lagged inflation term in equation 2). Similarly if expectations on inflation were to rise (for whatever reason), then inflation would rise according to equation (2), and subsequent inflation would also be higher (than otherwise). In the event of a sustained increase in inflation (due to ...
... (through the lagged inflation term in equation 2). Similarly if expectations on inflation were to rise (for whatever reason), then inflation would rise according to equation (2), and subsequent inflation would also be higher (than otherwise). In the event of a sustained increase in inflation (due to ...
NBER WORKING PAPER SERIES THE NEED FOR INTERNATIONAL POLICY COORDINATION:
... to the gains from simply reacting to shocks in a sensible way at the national level (as in a Nash solution). Their finding is reminiscent of the conclusions in McKibbin’s (1997) survey of the first generation models; in fact, McKibbin reports that the same conclusion has attained the status of a fol ...
... to the gains from simply reacting to shocks in a sensible way at the national level (as in a Nash solution). Their finding is reminiscent of the conclusions in McKibbin’s (1997) survey of the first generation models; in fact, McKibbin reports that the same conclusion has attained the status of a fol ...
Bitcoin and the Future of Money
... Bank (DAO) that performs market operations 5. Proof-of-Payment can avoid increasing socially inefficient usage of seigniorage revenues for transaction verification Ferdinando Ametrano 2017 ...
... Bank (DAO) that performs market operations 5. Proof-of-Payment can avoid increasing socially inefficient usage of seigniorage revenues for transaction verification Ferdinando Ametrano 2017 ...
Chapter 22
... debt to foreigners. These debts are been produced because the economy of the developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are a ...
... debt to foreigners. These debts are been produced because the economy of the developing world is very small compared to the economy of the industrial world. Since developing countries face a lot of poverty and poor financial institutions, national savings is often low and because of that, they are a ...
this PDF file - Tazkia Islamic Finance and Business Review
... discuss in the current monetary system. This study therefore investigated the gold as currency in Islamic view. The survey includes historical aspect, supremacy of gold currency and the weakness of fiat money by employed maslahah-mursalah approach. Besides that, the study discussed law of gold as mo ...
... discuss in the current monetary system. This study therefore investigated the gold as currency in Islamic view. The survey includes historical aspect, supremacy of gold currency and the weakness of fiat money by employed maslahah-mursalah approach. Besides that, the study discussed law of gold as mo ...
overcoming the zero bound on interest rate policy
... rate depreciation, then, would create an increase in net exports, the nominal short interest rate would immediately match the foreign currency interest rate, and prices would move up over time in proportion to the exchange rate depreciation. The expected inflation would imply a low or even negative ...
... rate depreciation, then, would create an increase in net exports, the nominal short interest rate would immediately match the foreign currency interest rate, and prices would move up over time in proportion to the exchange rate depreciation. The expected inflation would imply a low or even negative ...
Does globalization alter the monetary transmission mechanism?
... of this trend on domestic prices in major industrialized countries, notably disinflationary tendencies due to increased global capacity and competition, see, e.g., Mishkin (2007). In addition, globalization may alter the dynamics of the inflation process which are frequently analyzed on the basis of ...
... of this trend on domestic prices in major industrialized countries, notably disinflationary tendencies due to increased global capacity and competition, see, e.g., Mishkin (2007). In addition, globalization may alter the dynamics of the inflation process which are frequently analyzed on the basis of ...
A monetary and fiscal framework for macroeconomic stability in the
... Under the assumption of reasonably small lags between changes in production on the one hand and changes in nominal wages (and prices) on the other, inflation targeting would do a reasonably good job offsetting aggregate demand shocks: if output fell below potential, inflation would fall below its ta ...
... Under the assumption of reasonably small lags between changes in production on the one hand and changes in nominal wages (and prices) on the other, inflation targeting would do a reasonably good job offsetting aggregate demand shocks: if output fell below potential, inflation would fall below its ta ...
Monetary Policy Report. May 2016
... In the words of its Charter, the Central Bank of the Republic of Argentina “has as its purpose the promotion of monetary and financial stability, employment and economic development with social equity, to the extent of its powers and within the policies adopted by the national government”. This orde ...
... In the words of its Charter, the Central Bank of the Republic of Argentina “has as its purpose the promotion of monetary and financial stability, employment and economic development with social equity, to the extent of its powers and within the policies adopted by the national government”. This orde ...
Currency Mismatch: New Database and Indicators for Latin America
... currency mismatches at the aggregate level (Eichengreen, Hausmann and Panizza, 2007, and Goldstein and Turner, 2004) and measures that have been or could be used as proxies for currency mismatches (Mulder, 1999, and Lane and Shambaugh, 2010). My work is also closely related to a stream of research c ...
... currency mismatches at the aggregate level (Eichengreen, Hausmann and Panizza, 2007, and Goldstein and Turner, 2004) and measures that have been or could be used as proxies for currency mismatches (Mulder, 1999, and Lane and Shambaugh, 2010). My work is also closely related to a stream of research c ...
JAMES L. PIERCE
... to results which are superior to those obtained from the current conduct of policy. Friedman’s proposal of a constant growth rate of the money stock can be interpreted as such a rule of thumb. The rule is not claimed to be optimal in the linear decision rule sense. It is only argued that the lags in ...
... to results which are superior to those obtained from the current conduct of policy. Friedman’s proposal of a constant growth rate of the money stock can be interpreted as such a rule of thumb. The rule is not claimed to be optimal in the linear decision rule sense. It is only argued that the lags in ...
Sterilisation, Capital Mobility and Interest Rate Determination for
... The first factor influencing the effect of ∆f on it is sterilisation. (1+λ) = 0 implies that λ = -1 and that there is complete sterilisation of reserve flows as a change in reserves is fully offset by a(n opposite) change in domestic credit. If this is the case, the model asserts that there is no ef ...
... The first factor influencing the effect of ∆f on it is sterilisation. (1+λ) = 0 implies that λ = -1 and that there is complete sterilisation of reserve flows as a change in reserves is fully offset by a(n opposite) change in domestic credit. If this is the case, the model asserts that there is no ef ...
Exchange rate movements and export market dynamics: evidence
... movements on export market dynamics to several firm characteristics, which allows us to gain a better understanding on how exchange rate movements affect export market dynamics and more policy implications. Finally, we are different from previous studies by adopting a discrete time survival model w ...
... movements on export market dynamics to several firm characteristics, which allows us to gain a better understanding on how exchange rate movements affect export market dynamics and more policy implications. Finally, we are different from previous studies by adopting a discrete time survival model w ...
MONETARY POLICY DURING TRANSFORMATION April 11, 1994
... of money demanded is proportional to nominal income, and money supply is determined by the banking system. Nominal income is decomposed into a change in real output and a change in the price level. The focus is on the demand for money and volition rather than emphasizing mechanical aspects of the ci ...
... of money demanded is proportional to nominal income, and money supply is determined by the banking system. Nominal income is decomposed into a change in real output and a change in the price level. The focus is on the demand for money and volition rather than emphasizing mechanical aspects of the ci ...
World Economic Outlook, October 2015, Chapter 3: Exchange Rates
... preferences for U.S.-dollar-denominated assets. The behavior of domestic demand in the two examples would clearly be different, with implications for the overall outcome for trade. The chapter’s main findings are as follows: •• Trade tends to respond strongly to exchange rate movements. A depreciati ...
... preferences for U.S.-dollar-denominated assets. The behavior of domestic demand in the two examples would clearly be different, with implications for the overall outcome for trade. The chapter’s main findings are as follows: •• Trade tends to respond strongly to exchange rate movements. A depreciati ...
Explaining large euro effects on trade: the extensive margin and
... Euro effects seem to be present for exports within the eurozone and from the eurozone to outsiders, but not for exports from outsiders to the eurozone. Naturally, we need to control for other factors that affect trade to be able to determine if euro effects are really present and how large they are. ...
... Euro effects seem to be present for exports within the eurozone and from the eurozone to outsiders, but not for exports from outsiders to the eurozone. Naturally, we need to control for other factors that affect trade to be able to determine if euro effects are really present and how large they are. ...