Evolving Perceptions of Central Bank Credibility
... by t * . Private sector agents infer such changes by observing the deviation of it from their prior expectation for policy, and update their view of the target according to the strength of a Kalman gain parameter and when the observed policy rate is higher or lower than what they would have exp ...
... by t * . Private sector agents infer such changes by observing the deviation of it from their prior expectation for policy, and update their view of the target according to the strength of a Kalman gain parameter and when the observed policy rate is higher or lower than what they would have exp ...
The Illusive Quest: Do International Capital Controls Contribute to Currency Stability?
... Other studies provide a more mixed view of the effects of capital controls on the factors contributing to currency pressures in developing countries. On the one hand, Bartolini and Drazen (1997a), who survey a number of episodes of capital account liberalization, find that the easing of restriction ...
... Other studies provide a more mixed view of the effects of capital controls on the factors contributing to currency pressures in developing countries. On the one hand, Bartolini and Drazen (1997a), who survey a number of episodes of capital account liberalization, find that the easing of restriction ...
External Stability, Real Exchange Rate
... switching between domestic and foreign-produced goods, and can occur while the economy is operating at close to full employment.4 In contrast, income and expenditure adjustment have proven to be much more costly in terms of forgone output and employment. In theory, marketdriven RER adjustment will o ...
... switching between domestic and foreign-produced goods, and can occur while the economy is operating at close to full employment.4 In contrast, income and expenditure adjustment have proven to be much more costly in terms of forgone output and employment. In theory, marketdriven RER adjustment will o ...
The Efficacy of Foreign Exchange Market Intervention in Malawi
... package, the RBM has also intervened to buy foreign exchange in order to build up reserves for the government and to moderate exchange rate fluctuations. There has been much debate in the literature on the question of whether these interventions affect the value of the kwacha. Friedman (1953) provid ...
... package, the RBM has also intervened to buy foreign exchange in order to build up reserves for the government and to moderate exchange rate fluctuations. There has been much debate in the literature on the question of whether these interventions affect the value of the kwacha. Friedman (1953) provid ...
NEER WORKING PAPER SERIES INTERNATI)NAL COORDINATION OF ECONOMIC POLICIES: METHODS, AND EFFECTS
... "Coordnaton of macroeconomic policies is certainly not easy; But in its absence, I suspect maybe it is impossible. nationalistic solutions will be sought——trade barriers, capital War among nations controls, and dual exchange—rate systems. with these weapons is likely to be mutually destructive. inte ...
... "Coordnaton of macroeconomic policies is certainly not easy; But in its absence, I suspect maybe it is impossible. nationalistic solutions will be sought——trade barriers, capital War among nations controls, and dual exchange—rate systems. with these weapons is likely to be mutually destructive. inte ...
Asset market approach to exchange rate determination
... factors that affect absolute and relative prices; it also depends on current expectations concerning the future behavior of these exogenous monetary and real factors. Many other factors impinge on the level and adjustments of the exchange rate; for example, differential movements in absolute price l ...
... factors that affect absolute and relative prices; it also depends on current expectations concerning the future behavior of these exogenous monetary and real factors. Many other factors impinge on the level and adjustments of the exchange rate; for example, differential movements in absolute price l ...
Interest Rate Pass-Through: Empirical Evidence from Pakistan
... the country’s monetary policy, taking into consideration the current economic environment and future expectations about core economic variables such as output, inflation, and the exchange rate. The government, researchers, policymakers, and other stakeholders keep close watc ...
... the country’s monetary policy, taking into consideration the current economic environment and future expectations about core economic variables such as output, inflation, and the exchange rate. The government, researchers, policymakers, and other stakeholders keep close watc ...
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... industries, diversified economies may experience smaller aggregate disturbances than highly specialized ones. In particular, if two ,economies specialize in sectors that produce and utilize primary products, respectively, then there is good reason to anticipate that the disturbances they experience ...
... industries, diversified economies may experience smaller aggregate disturbances than highly specialized ones. In particular, if two ,economies specialize in sectors that produce and utilize primary products, respectively, then there is good reason to anticipate that the disturbances they experience ...
7 money demand. ppt
... CHAPTER 24: Money Demand, the Equilibrium Interest Rate, and Monetary Policy ...
... CHAPTER 24: Money Demand, the Equilibrium Interest Rate, and Monetary Policy ...
Monetary Policy Rules for Managing Aid Surges in Africa
... neither it nor the public sector has direct access to world capital markets. Hence, domestic government debt, which is the only marketable debt instrument in the economy, is effectively non-tradable so that domestic interest rates are not tied down by interest parity conditions. The model is calibra ...
... neither it nor the public sector has direct access to world capital markets. Hence, domestic government debt, which is the only marketable debt instrument in the economy, is effectively non-tradable so that domestic interest rates are not tied down by interest parity conditions. The model is calibra ...
Time-Varying Risk, Interest Rates, and Exchange Rates
... participants, defined as stockholders, is more volatile and more highly correlated with the excess return on the stock market than the consumption of nonparticipants. Brav, Constantinides, and Geczy (2002) argue that if attention is restricted to the consumption of active market participants, then ...
... participants, defined as stockholders, is more volatile and more highly correlated with the excess return on the stock market than the consumption of nonparticipants. Brav, Constantinides, and Geczy (2002) argue that if attention is restricted to the consumption of active market participants, then ...
Twin Deficit Hypothesis: The Case of Ukraine
... borrowing will tend to push the private sector into borrowing more abroad. In this case the composition of public borrowing between foreign and domestic sources does not have much macroeconomic effect. The link between fiscal and external deficits will also be especially close when the capital accou ...
... borrowing will tend to push the private sector into borrowing more abroad. In this case the composition of public borrowing between foreign and domestic sources does not have much macroeconomic effect. The link between fiscal and external deficits will also be especially close when the capital accou ...
43_THE READER2004
... effectively lessens the capacity of the banking profession as regards credit risk management; a rise in real interest rates which induces most solvent borrowers to leave the market; and volatility in the asset market which reduces the protection enjoyed by banks against credit risk (Timmermans, 2001 ...
... effectively lessens the capacity of the banking profession as regards credit risk management; a rise in real interest rates which induces most solvent borrowers to leave the market; and volatility in the asset market which reduces the protection enjoyed by banks against credit risk (Timmermans, 2001 ...
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... and reliable budgetary systems. The connection is less than tight: some middle-income countries, in Scandinavia for example, had solvent governments and maintained specie convertibility, while Austria-Hungary, Russia and the Ottoman Empire, whose incomes per capita were not dramatically different fr ...
... and reliable budgetary systems. The connection is less than tight: some middle-income countries, in Scandinavia for example, had solvent governments and maintained specie convertibility, while Austria-Hungary, Russia and the Ottoman Empire, whose incomes per capita were not dramatically different fr ...
- Central Bank of Solomon Islands
... Mundell (1963) highlights the importance of the exchange rate in offsetting central bank changes to money supply due to capital outflows, underpinning the capital mobility hypothesis. Under this premise, where funds are internationally mobile and residents are able to take advantage of rates of retu ...
... Mundell (1963) highlights the importance of the exchange rate in offsetting central bank changes to money supply due to capital outflows, underpinning the capital mobility hypothesis. Under this premise, where funds are internationally mobile and residents are able to take advantage of rates of retu ...
62
... different financial aggregates, the transmission mechanism and the effectiveness of interest-rate based monetary policy; these studies mostly use data up to early 1988. Since then there has been the change from SRD’s to Non-callable deposits, the use of high interest rates by the government and also ...
... different financial aggregates, the transmission mechanism and the effectiveness of interest-rate based monetary policy; these studies mostly use data up to early 1988. Since then there has been the change from SRD’s to Non-callable deposits, the use of high interest rates by the government and also ...
The Applicability of Inflation Targeting in ASEAN Countries
... that inflation targeters exhibit larger inflation gap coefficient relative to the output gap coefficient, although in most cases the coefficients are not statistically different from zero. Meanwhile Lubik and Schorfheide (2007) estimate a calibrated small-scale general equilibrium model for Australi ...
... that inflation targeters exhibit larger inflation gap coefficient relative to the output gap coefficient, although in most cases the coefficients are not statistically different from zero. Meanwhile Lubik and Schorfheide (2007) estimate a calibrated small-scale general equilibrium model for Australi ...
New Consensus Macroeconomics: A Critical Appraisal
... prices are perfectly flexible without any cyclical distortions in place; it is, thus, a long-run variable, determined by the supply side of the economy. Equation (1) emanates from intertemporal optimisation of expected lifetime utility that reflects optimal consumption smoothing subject to a budget ...
... prices are perfectly flexible without any cyclical distortions in place; it is, thus, a long-run variable, determined by the supply side of the economy. Equation (1) emanates from intertemporal optimisation of expected lifetime utility that reflects optimal consumption smoothing subject to a budget ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... deficits has led to renewed interest in the effects of fiscal expansion in an open, macroeconomic environment. We have witnessed a fascinating episode of real dollar appreciation, high real interest rates, and growing U.S. current account deficits. Many elements of this experience are well-explained ...
... deficits has led to renewed interest in the effects of fiscal expansion in an open, macroeconomic environment. We have witnessed a fascinating episode of real dollar appreciation, high real interest rates, and growing U.S. current account deficits. Many elements of this experience are well-explained ...
External Shocks, Banks and Optimal Monetary Policy in an Open
... structure of domestic banks, which is defined as the non-core liabilities share, and analyse changes in this measure in response to external shocks. Lastly, our model incorporates various real rigidities generally considered in medium-scale DSGE models such as those studied by Christiano et al. (200 ...
... structure of domestic banks, which is defined as the non-core liabilities share, and analyse changes in this measure in response to external shocks. Lastly, our model incorporates various real rigidities generally considered in medium-scale DSGE models such as those studied by Christiano et al. (200 ...