Reforming the International Monetary System in the 1970s and 2000s
... exchange reserves would require their transformation into holdings denominated in other currencies. Accomplishing this in an off-market transaction, so as not to depress the dollar’s exchange rate, was the core idea of the substitution account. Policy makers active in the 1970s, when the dollar was ...
... exchange reserves would require their transformation into holdings denominated in other currencies. Accomplishing this in an off-market transaction, so as not to depress the dollar’s exchange rate, was the core idea of the substitution account. Policy makers active in the 1970s, when the dollar was ...
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. ...
del01-Stein 221109 en
... variable defined in (2b). The question is whether coefficients B and b are statistically significant. The term in brackets on the left hand side is the definition of the real exchange rate in (2). (2d) log R(CPI) = [log R(T) + log R(NT)] = B.Z(t) + b log R(NT) Some studies find that that coefficient ...
... variable defined in (2b). The question is whether coefficients B and b are statistically significant. The term in brackets on the left hand side is the definition of the real exchange rate in (2). (2d) log R(CPI) = [log R(T) + log R(NT)] = B.Z(t) + b log R(NT) Some studies find that that coefficient ...
The Asian Crises Reexamined
... surrounding the Asian crises. We also find that contrary to the emphasis placed by many commentators on the role of unstable portfolio investment, the biggest outflows during the crises were from the banking sector. This casts doubt on the importance of the Calvo-Mendoza model of contagion based on ...
... surrounding the Asian crises. We also find that contrary to the emphasis placed by many commentators on the role of unstable portfolio investment, the biggest outflows during the crises were from the banking sector. This casts doubt on the importance of the Calvo-Mendoza model of contagion based on ...
How Important Is the Shock-Absorbing Role of the
... represents the second challenge for the ACs. Although the literature associates a single currency with considerable bene¯ts, it could prove costly due to asymmetries between national shocks when a country relinquishes the exchange rate as a shock absorber. For the ACs, with GDP per capita levels wel ...
... represents the second challenge for the ACs. Although the literature associates a single currency with considerable bene¯ts, it could prove costly due to asymmetries between national shocks when a country relinquishes the exchange rate as a shock absorber. For the ACs, with GDP per capita levels wel ...
Monetary Policy under Alternative Asset Market Structures: the Case
... In a complete markets setting, Benigno and Benigno (2003) explore the consequences of such internal and external distortions for optimal monetary policy in a stochastic twocountry framework. De Paoli (2008) and Faia and Monacelli (2008) present a similar analysis in a small open economy setting.3 Th ...
... In a complete markets setting, Benigno and Benigno (2003) explore the consequences of such internal and external distortions for optimal monetary policy in a stochastic twocountry framework. De Paoli (2008) and Faia and Monacelli (2008) present a similar analysis in a small open economy setting.3 Th ...
Financial Globalization and Monetary Policy∗
... equities for a large group of countries. They describe this as a process of financial globalization. Economists and policy makers have speculated on the implications of financial globalization for the design of monetary policy1 . There are many aspects to this question. Most central banks now either ...
... equities for a large group of countries. They describe this as a process of financial globalization. Economists and policy makers have speculated on the implications of financial globalization for the design of monetary policy1 . There are many aspects to this question. Most central banks now either ...
Capital Inflows, Inflation and Exchange Rate Volatility
... monetary base. And this distress gets worse further in case when the central bank does intervention in inefficient way. For an effective absorption and sterilisation of foreign capital inflows, it is necessary to know that whether the relationship between capital inflows and monetary indicators whic ...
... monetary base. And this distress gets worse further in case when the central bank does intervention in inefficient way. For an effective absorption and sterilisation of foreign capital inflows, it is necessary to know that whether the relationship between capital inflows and monetary indicators whic ...
Temi di discussione
... Furthermore, in the absence of capital ‡ows between regions, the very existence of common international exogenous shocks may lead to co-movements of monetary aggregates in di¤erent countries. From a single country perspective, such co-movements can be exploited to reveal information about the source ...
... Furthermore, in the absence of capital ‡ows between regions, the very existence of common international exogenous shocks may lead to co-movements of monetary aggregates in di¤erent countries. From a single country perspective, such co-movements can be exploited to reveal information about the source ...
Extracting Inflation from Stock Returns to Test Purchasing Power Parity
... (Dornbusch, 1976), news and consumer/investor expectations and sentiments. Moreover, if nominal prices were not “sticky,” they would adjust not only to current monetary shocks and news or rumors in the market, but also to shocks that affect consumers/investors expectations of future price levels, a ...
... (Dornbusch, 1976), news and consumer/investor expectations and sentiments. Moreover, if nominal prices were not “sticky,” they would adjust not only to current monetary shocks and news or rumors in the market, but also to shocks that affect consumers/investors expectations of future price levels, a ...
No. 227 Re-Evaluating Swedish Membership in EMU: Evidence
... 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 ...
NBER WORKING PAPER SERIES INFLATION INERTIA AND CREDIBLE DISINFLATION - Guillermo Calvo
... and Woodford,1998) where higher steady state inflation implies lower steady state output through increased price dispersion. This nonneutrality is removed in the second approach, starting with Yun (1996), where firms still choose only a price level but update their prices at the steady state inflati ...
... and Woodford,1998) where higher steady state inflation implies lower steady state output through increased price dispersion. This nonneutrality is removed in the second approach, starting with Yun (1996), where firms still choose only a price level but update their prices at the steady state inflati ...
laura a. wolff - Pearson Higher Education
... Flows of financial capital include stocks, bonds, currencies, and bank accounts. Flows of capital representing physical assets such as real estate, factories, and businesses are called foreign direct investment, and this is the kind of capital flow most nations are eager to attract. ...
... Flows of financial capital include stocks, bonds, currencies, and bank accounts. Flows of capital representing physical assets such as real estate, factories, and businesses are called foreign direct investment, and this is the kind of capital flow most nations are eager to attract. ...
External Wealth, the Trade Balance, and the Real Exchange
... -6balance and the real exchange rate. However, our focus in this paper is on the long-run relation between these variables. For countries with market power in international markets, trade imbalances may also affect the structure of international relative prices. For instance, a trade deficit may be ...
... -6balance and the real exchange rate. However, our focus in this paper is on the long-run relation between these variables. For countries with market power in international markets, trade imbalances may also affect the structure of international relative prices. For instance, a trade deficit may be ...
3 Effects of the Strong Dollar - Federal Reserve Bank of Kansas City
... cannot be argued that the Federal Reserve would have prevented faster growth of GNP during that period. The slowdown of the economy after the second quarter of 1984 owes something to the weaker expansion of gross domestic demand. It advanced 3.3 percent from then through the second quarter of 1985. ...
... cannot be argued that the Federal Reserve would have prevented faster growth of GNP during that period. The slowdown of the economy after the second quarter of 1984 owes something to the weaker expansion of gross domestic demand. It advanced 3.3 percent from then through the second quarter of 1985. ...
H D A N
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
H D A N
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
currency crises, capital-account liberalization, and selection bias
... 9 Real-exchange-rate changes are defined in terms of the trade-weighted sum of bilateral real exchange rates (constructed in terms of CPI indices, line 64 of the IFS) against the U.S. dollar, the German mark, and the Japanese yen, where the trade weights are based on the average of bilateral trade w ...
... 9 Real-exchange-rate changes are defined in terms of the trade-weighted sum of bilateral real exchange rates (constructed in terms of CPI indices, line 64 of the IFS) against the U.S. dollar, the German mark, and the Japanese yen, where the trade weights are based on the average of bilateral trade w ...
The analytics of the New Keynesian 3-equation Model - Hal-SHS
... decision rules where consumers maximize their welfare subject to an intertemporal budget constraint and where firms maximize their profit, subject to nominal rigidities, characterising the imperfect adjustment of prices on the goods market. For convenience the micro foundations of this model and the ...
... decision rules where consumers maximize their welfare subject to an intertemporal budget constraint and where firms maximize their profit, subject to nominal rigidities, characterising the imperfect adjustment of prices on the goods market. For convenience the micro foundations of this model and the ...
THE IMF Lecture 6 LIUC 2010 1
... The amount that a country can borrow from the Fund, known as its access limit, varies depending on the type of loan, but is typically a multiple of the country’s IMF quota. This limit may be exceeded in exceptional circumstances. The Flexible Credit Line has no pre-set cap on access. ...
... The amount that a country can borrow from the Fund, known as its access limit, varies depending on the type of loan, but is typically a multiple of the country’s IMF quota. This limit may be exceeded in exceptional circumstances. The Flexible Credit Line has no pre-set cap on access. ...
Central banking in an open economy: Rist and
... by the in and out-flows of gold within the country, and the central bank should vary its discount rate to protect its gold reserve. On the other side of the Channel, Hawtrey, the Director of Financial Enquiries at the British Treasury, encouraged the central bank to try to impact the level of invest ...
... by the in and out-flows of gold within the country, and the central bank should vary its discount rate to protect its gold reserve. On the other side of the Channel, Hawtrey, the Director of Financial Enquiries at the British Treasury, encouraged the central bank to try to impact the level of invest ...
Monetary policy challenges in New Zealand: how are we different?
... position in New Zealand capital markets. This loosely translates into a market-based risk assessment associated with liquidity, currency volatility and default3. This explanation focuses on the role of the foreign investor as the supplier of capital at the margin. An alternative explanation, which s ...
... position in New Zealand capital markets. This loosely translates into a market-based risk assessment associated with liquidity, currency volatility and default3. This explanation focuses on the role of the foreign investor as the supplier of capital at the margin. An alternative explanation, which s ...
Unconventional Central Bank Measures for Emerging
... central banks in the attainment of macroeconomic objectives. Many of them have employed unconventional measures to help alleviate liquidity stresses in foreign exchange and domestic financial markets in the relatively short run and with some apparent success. However, unconventional measures are wit ...
... central banks in the attainment of macroeconomic objectives. Many of them have employed unconventional measures to help alleviate liquidity stresses in foreign exchange and domestic financial markets in the relatively short run and with some apparent success. However, unconventional measures are wit ...
Implementation Gold Dinar: Is It Feasible?
... cannot be inflated by printing more of it because it is natural resources not like fiat money where it can be printed when needed; it cannot be devalued by government decree, and unlike paper currency it is an asset which does not depend upon anybody's promise to pay. Portability and mystery of Gold ...
... cannot be inflated by printing more of it because it is natural resources not like fiat money where it can be printed when needed; it cannot be devalued by government decree, and unlike paper currency it is an asset which does not depend upon anybody's promise to pay. Portability and mystery of Gold ...