A Melton William and
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
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 ...
real exchange rate movements and export growth: nigeria, 1960-1990
... and measurement frameworks have been used for the equilibrium RER. The first approach is the purchasing power parity (PPP) doctrine, which associates the equilibrium exchange rate with the value of the nominal exchange rate (NER) in a period of external balance (known as the base year), adjusted for ...
... and measurement frameworks have been used for the equilibrium RER. The first approach is the purchasing power parity (PPP) doctrine, which associates the equilibrium exchange rate with the value of the nominal exchange rate (NER) in a period of external balance (known as the base year), adjusted for ...
Is the Gold Standard Still the Gold Standard among Monetary Systems? No. 100
... and purchasing power of money to be determined by the forces of supply and demand in the market for gold. There can be “accidental” shifts in the supply and demand curves to which the quantity and purchasing power of money will respond. Our current fiat standard, by contrast, leaves the supply of mo ...
... and purchasing power of money to be determined by the forces of supply and demand in the market for gold. There can be “accidental” shifts in the supply and demand curves to which the quantity and purchasing power of money will respond. Our current fiat standard, by contrast, leaves the supply of mo ...
Mitigating Turkey's Trilemma Tradeoffs Yasin AKÇELİK Orcan ÇÖRTÜK İbrahim M. TURHAN
... an important turning point for the Turkish economy as it made clear that such a regime was impossible to carry out due to the loss of confidence of economic agents at the time. Hence, on 22nd February of 2001, the Turkish Lira was allowed to float freely in order to prevent further damage to the eco ...
... an important turning point for the Turkish economy as it made clear that such a regime was impossible to carry out due to the loss of confidence of economic agents at the time. Hence, on 22nd February of 2001, the Turkish Lira was allowed to float freely in order to prevent further damage to the eco ...
NBER WORKING PAPER SERIES TOWARDS AN EXPLANATION OF NATIONAL PRICE LEVELS
... price levels. Jones and Purvis (1981) have recently explored this source of differences in national price levels more systematically. They put forth a model in which each country transforms imported inputs into final ...
... price levels. Jones and Purvis (1981) have recently explored this source of differences in national price levels more systematically. They put forth a model in which each country transforms imported inputs into final ...
Forex Medium-Term Outlook
... same kind of movements are likely to be repeated going forward. Of course, there is unlikely to be a change to the gap between the monetary policies of the FRB and ECB for the time being, and given that the Greece crisis is likely to continue making itself felt, it is inevitable that EUR will have a ...
... same kind of movements are likely to be repeated going forward. Of course, there is unlikely to be a change to the gap between the monetary policies of the FRB and ECB for the time being, and given that the Greece crisis is likely to continue making itself felt, it is inevitable that EUR will have a ...
NEW ZEALAND: THE LAST BASTION OF TEXTBOOK OPEN
... financially developed countries, New Zealand is unique in having no domestic banks of any significant size: over 99% of the domestic market is covered by foreign banks,1 almost all of them Australian (Liang, 2008). Both capital and labour move freely between New Zealand and Australia, an economy ove ...
... financially developed countries, New Zealand is unique in having no domestic banks of any significant size: over 99% of the domestic market is covered by foreign banks,1 almost all of them Australian (Liang, 2008). Both capital and labour move freely between New Zealand and Australia, an economy ove ...
Simple Models to Understand and Teach Business Cycle
... explaining facts such as the countercyclicality of the trade balance and the real interest rate, and the higher volatility of output, consumption, and real wages compared with those observed in advanced countries. Simple extensions can be used to understand other empirical facts such as large capita ...
... explaining facts such as the countercyclicality of the trade balance and the real interest rate, and the higher volatility of output, consumption, and real wages compared with those observed in advanced countries. Simple extensions can be used to understand other empirical facts such as large capita ...
Crude Oil Prices and the USD/EUR Exchange Rate
... monetary policy channel and a currency market channel. These five channels can be derived from the following five hypotheses: First, oil-exporting countries aim to stabilize the purchasing power of their (U.S. dollar) export revenues in terms of their (predominately euro-denominated and not U.S. dol ...
... monetary policy channel and a currency market channel. These five channels can be derived from the following five hypotheses: First, oil-exporting countries aim to stabilize the purchasing power of their (U.S. dollar) export revenues in terms of their (predominately euro-denominated and not U.S. dol ...
SINZIYA SIGAUKE RE - Midlands State University
... government later suspended the Z$ from the market, for multiple currencies. The researcher found out that although as much the MCS brought positive changes, it also brought a shame of its own challenges in particular; the people of Marange remain in poverty if one considers the quality of life indic ...
... government later suspended the Z$ from the market, for multiple currencies. The researcher found out that although as much the MCS brought positive changes, it also brought a shame of its own challenges in particular; the people of Marange remain in poverty if one considers the quality of life indic ...
Money Demand in a Cross-Section of Countries
... can now result when the rest of the labor force, LA=A-LX, is employed in R&D, and when there are positive spillover-effects such that knowledge increases proportional to A. Employing this model to our purposes it should be straightforward to observe that the transaction volume in the factor market i ...
... can now result when the rest of the labor force, LA=A-LX, is employed in R&D, and when there are positive spillover-effects such that knowledge increases proportional to A. Employing this model to our purposes it should be straightforward to observe that the transaction volume in the factor market i ...
355 K - National Bureau of Economic Research
... 40 percent of GDP and the government ran a surplus of around 3.5 percent of GDP). Thus, Sweden today seems less vulnerable to adverse shocks than in 1996. Finally, there do not seem to have been any large country-specific disturbances to the Swedish economy, so the gains from independent monetary po ...
... 40 percent of GDP and the government ran a surplus of around 3.5 percent of GDP). Thus, Sweden today seems less vulnerable to adverse shocks than in 1996. Finally, there do not seem to have been any large country-specific disturbances to the Swedish economy, so the gains from independent monetary po ...
Debt Redemption and Reserve Accumulation
... foreign, and debt in domestic, currency) is optimal when a country faces international shocks (as to the endowment of tradable goods). This is because the asset valuation effects occasioned by currency depreciation (or appreciation) act to absorb global shocks and smooth consumption. Debt and reserv ...
... foreign, and debt in domestic, currency) is optimal when a country faces international shocks (as to the endowment of tradable goods). This is because the asset valuation effects occasioned by currency depreciation (or appreciation) act to absorb global shocks and smooth consumption. Debt and reserv ...
Problem Session-2
... accepted (so all transactions can be made in terms of it), recognized easily as money (so people can perform transactions easily and quickly), divisible (so people can provide change), and difficult to counterfeit (so people will not print their own money). That is why nearly all countries use paper ...
... accepted (so all transactions can be made in terms of it), recognized easily as money (so people can perform transactions easily and quickly), divisible (so people can provide change), and difficult to counterfeit (so people will not print their own money). That is why nearly all countries use paper ...
exchange agreement - Magellan Aviation Group
... having been used or without the original certification, will be considered to be exchange transactions, and the customer will be invoiced the Exchange Sales Fee and any repair and/or recertification fee(s). The full cost of returning the core unit to Magellan, including but not limited to, all repai ...
... having been used or without the original certification, will be considered to be exchange transactions, and the customer will be invoiced the Exchange Sales Fee and any repair and/or recertification fee(s). The full cost of returning the core unit to Magellan, including but not limited to, all repai ...
Price dispersion: the role of borders, distance, and location∗
... and border size. In fact, a number of factors can be important in shaping this so called "border effect." For example, the size of the border will depend on international differences in non-traded input costs. A "border effect" will be present when the non-traded inputs like labor and land that go into ...
... and border size. In fact, a number of factors can be important in shaping this so called "border effect." For example, the size of the border will depend on international differences in non-traded input costs. A "border effect" will be present when the non-traded inputs like labor and land that go into ...
Asset Prices, Liquidity, and Monetary Policy in an Exchange Economy Ricardo Lagos
... that money plays a special role, either because it is the only financial asset that satisfies a cashin-advance constraint, or because it is the only financial asset that enters the agents’ utility functions. In contrast, I do not assume that money plays a special role in exchange. Second, my work bu ...
... that money plays a special role, either because it is the only financial asset that satisfies a cashin-advance constraint, or because it is the only financial asset that enters the agents’ utility functions. In contrast, I do not assume that money plays a special role in exchange. Second, my work bu ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... TFP growth. A problem faced in the estimation of equations of the type of (4) refers to the measurement of TFP growth. In particular, it is difficult to obtain long time series of capital stocks for a large number of countries. In this paper I deal with this problem by constmcting three measures of ...
... TFP growth. A problem faced in the estimation of equations of the type of (4) refers to the measurement of TFP growth. In particular, it is difficult to obtain long time series of capital stocks for a large number of countries. In this paper I deal with this problem by constmcting three measures of ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... Ito’s evidence from his estimates of a Japanese Taylor rule drives this point home. Using a Taylor rule whose parameters were estimated over the low and stable inflation period from 1982 to 1995, he finds that the policy interest rate should have been far higher than it actually was during the Great ...
... Ito’s evidence from his estimates of a Japanese Taylor rule drives this point home. Using a Taylor rule whose parameters were estimated over the low and stable inflation period from 1982 to 1995, he finds that the policy interest rate should have been far higher than it actually was during the Great ...
Multi-Product Firms and Exchange Rate Fluctuations
... Our theoretical framework illustrates how heterogeneous firms adjust their prices, quantities and product scope in the event of an exchange rate depreciation, and how the degree of price and quantity responses varies across products within firms. The two key features of the model are: (i) Each firm ...
... Our theoretical framework illustrates how heterogeneous firms adjust their prices, quantities and product scope in the event of an exchange rate depreciation, and how the degree of price and quantity responses varies across products within firms. The two key features of the model are: (i) Each firm ...
Addl. Value Based Support Material
... help in the flow of goods and services of a country. But why these are not included in the estimation of national income? Ques 8. GDP growth rate in India for the last few years is more than 6% but still more than 28% of population is lying below poverty line. Explain any two factors responsible fo ...
... help in the flow of goods and services of a country. But why these are not included in the estimation of national income? Ques 8. GDP growth rate in India for the last few years is more than 6% but still more than 28% of population is lying below poverty line. Explain any two factors responsible fo ...
HubbardOBrien
... liquid. Nominal interest rates had also fallen to very low levels, which reduced the opportunity cost of holding reserves at the Fed. ...
... liquid. Nominal interest rates had also fallen to very low levels, which reduced the opportunity cost of holding reserves at the Fed. ...
Does it matter how aggregates are measured?
... Because the mean-corrected relative BDH weights series seem fairly robust to the choice of base year, it is of some interest to investigate whether this choice is very important in practice. The second part of this paper tries to shed some light on this issue by checking whether the main empirical c ...
... Because the mean-corrected relative BDH weights series seem fairly robust to the choice of base year, it is of some interest to investigate whether this choice is very important in practice. The second part of this paper tries to shed some light on this issue by checking whether the main empirical c ...