Interest Rate Pass-Through in Romania and Other
... two-step approach in which the long-run relationship is fitted in levels, while the second step involves regressing the first differences of the dependent variables on their lagged values and lagged deviations from the long-run equilibrium relationship. This approach, labeled errorcorrection, is war ...
... two-step approach in which the long-run relationship is fitted in levels, while the second step involves regressing the first differences of the dependent variables on their lagged values and lagged deviations from the long-run equilibrium relationship. This approach, labeled errorcorrection, is war ...
Assessing nonlinear dynamics of Central Bank reaction function: the
... the assumption of a linear and symmetric Central Bank reaction function i.e. the coefficients of target variables are considered as being constant and evenly weighted. In other words, one major supposal that governs current monetary policy is that Central Banks tend to treat, symmetrically and with ...
... the assumption of a linear and symmetric Central Bank reaction function i.e. the coefficients of target variables are considered as being constant and evenly weighted. In other words, one major supposal that governs current monetary policy is that Central Banks tend to treat, symmetrically and with ...
hefeker neu mmi08 6670809 en
... Empirical evidence shows a marked contrast concerning the choice of exchange rate regime for industrialized and developing countries, with emerging markets falling somewhat in between. Whereas industrial countries (with the notable exception of the member states of the European Union) mostly tend to ...
... Empirical evidence shows a marked contrast concerning the choice of exchange rate regime for industrialized and developing countries, with emerging markets falling somewhat in between. Whereas industrial countries (with the notable exception of the member states of the European Union) mostly tend to ...
Draft: October 14, 2008 DOLLAR DOMINANCE, EURO ASPIRATIONS
... well in exchange-rate terms. Its market value has soared from a low near $0.83 in mid-2002 to as high as $1.60 in mid-2008, before dropping back more recently. But exchange rates are at best an imperfect indicator of a currency’s international standing. The real issue is not price but use: the exten ...
... well in exchange-rate terms. Its market value has soared from a low near $0.83 in mid-2002 to as high as $1.60 in mid-2008, before dropping back more recently. But exchange rates are at best an imperfect indicator of a currency’s international standing. The real issue is not price but use: the exten ...
Using Interest Rates to Stabilize the Domestic Economy
... • They do it through what is called a “channel” or “corridor” system that involves setting not only a target interest rate, but also a lending and deposit rate: just as the Fed and the ECB do. • Banks in need of funds will never be willing to pay more than the central bank’s lending rate, and • Tho ...
... • They do it through what is called a “channel” or “corridor” system that involves setting not only a target interest rate, but also a lending and deposit rate: just as the Fed and the ECB do. • Banks in need of funds will never be willing to pay more than the central bank’s lending rate, and • Tho ...
Full Text
... The Russian economy appears to have reached this third stage. Anecdotal evidence indicates that foreign currency, in particular the U.S. dollar, is widely used, not just as a store of value and as unit of account, but also as a medium of exchange, even though accepting payments in foreign currency i ...
... The Russian economy appears to have reached this third stage. Anecdotal evidence indicates that foreign currency, in particular the U.S. dollar, is widely used, not just as a store of value and as unit of account, but also as a medium of exchange, even though accepting payments in foreign currency i ...
Utilizing financial market information in forecasting real
... asset classes is strengthened through indirect spillovers via other asset prices. These results call for a better understanding of international cross-market financial linkages, which so far has been missing in the literature. Phylaktis and Ravazzolo (2005) use a data set of a group of Pacific Basin ...
... asset classes is strengthened through indirect spillovers via other asset prices. These results call for a better understanding of international cross-market financial linkages, which so far has been missing in the literature. Phylaktis and Ravazzolo (2005) use a data set of a group of Pacific Basin ...
Forthcoming in Journal of Monetary Economics
... import price inflation will depend on the gap between the sticky import price and the foreign price denominated in local currency, one important implication of this analysis is the introduction of an explicit reason for the stabilisation of the nominal exchange rate in response to other shocks than ...
... import price inflation will depend on the gap between the sticky import price and the foreign price denominated in local currency, one important implication of this analysis is the introduction of an explicit reason for the stabilisation of the nominal exchange rate in response to other shocks than ...
external vulnerabilities and economic integration: is the union of
... UNASUR Constitutive Treaty, signed in 2008 and ratified in 2011, formalizes the union as a juridical entity that integrates 12 independent nations in cultural, social, economic, and political fields.1 Furthermore, UNASUR is conceived as a strategy for improving the socioeconomic conditions of nation ...
... UNASUR Constitutive Treaty, signed in 2008 and ratified in 2011, formalizes the union as a juridical entity that integrates 12 independent nations in cultural, social, economic, and political fields.1 Furthermore, UNASUR is conceived as a strategy for improving the socioeconomic conditions of nation ...
References - Economic Growth and Distribution:On the Nature and
... However simplistic5, this view paves the way to a different theory on how the target rate of return actually implemented into firms’ pricing strategy, rs, is determined. Indeed, as clearly pointed out by Blecker (1999), Kalecki’s theory of mark-up pricing can be extended to an economy exposed to ...
... However simplistic5, this view paves the way to a different theory on how the target rate of return actually implemented into firms’ pricing strategy, rs, is determined. Indeed, as clearly pointed out by Blecker (1999), Kalecki’s theory of mark-up pricing can be extended to an economy exposed to ...
Money, Banking, and the Financial System
... 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. ...
Basic Exchange Rate Theories
... This study into basic exchange rate theory was largely undertaken while I was visiting professor at the University of Adelaide, Australia, July – November, 2004. I am grateful to the University of Adelaide for its hospitality which made this visit possible and to the staff of the School of Economics ...
... This study into basic exchange rate theory was largely undertaken while I was visiting professor at the University of Adelaide, Australia, July – November, 2004. I am grateful to the University of Adelaide for its hospitality which made this visit possible and to the staff of the School of Economics ...
Effects of Political Crises Events on the Venezuelan
... which have also been restricted to include only the national contests. There are five such events. The fourth type is major government announcements of policy change and there are nine such events. The last type is an announcement of a change in the exchange rate regime. Over the period from 1985 to ...
... which have also been restricted to include only the national contests. There are five such events. The fourth type is major government announcements of policy change and there are nine such events. The last type is an announcement of a change in the exchange rate regime. Over the period from 1985 to ...
Sterilized Interventions and Capital Controls
... the exchange rate. In particular, sterilization policies in conjunction with capital market restrictions can provide policymakers with an additional policy tool. In the models studied here, policymakers will be able to in uence interest rates, as is typically the case in these models. In addition, t ...
... the exchange rate. In particular, sterilization policies in conjunction with capital market restrictions can provide policymakers with an additional policy tool. In the models studied here, policymakers will be able to in uence interest rates, as is typically the case in these models. In addition, t ...
Money, Interest Rates, and Exchange Rates
... long run, inflationary expectations will have an effect in the foreign exchange market. • They will affect exchange-rate expectations. • Suppose that expectations about inflation change as people receive news about the economy, but that the actual adjustment of prices occurs afterward, gradually. Co ...
... long run, inflationary expectations will have an effect in the foreign exchange market. • They will affect exchange-rate expectations. • Suppose that expectations about inflation change as people receive news about the economy, but that the actual adjustment of prices occurs afterward, gradually. Co ...
Economic Costs of Alternative Monetary Policy Responses During
... explicit objectives. If nominal wages are sticky, a depreciation reduces real wages and may lower consumption and, therefore, aggregate demand. As a consequence, unemployment tends to go up. However, the reduction in real wages may help limit the increase in unemployment. Another channel through whi ...
... explicit objectives. If nominal wages are sticky, a depreciation reduces real wages and may lower consumption and, therefore, aggregate demand. As a consequence, unemployment tends to go up. However, the reduction in real wages may help limit the increase in unemployment. Another channel through whi ...
Chapter 14
... • Money is very liquid: it can be easily and quickly used to pay for goods and services. • Money, however, pays little or no rate of return. • Suppose we can group assets into money (liquid assets) and all other assets (illiquid assets). ...
... • Money is very liquid: it can be easily and quickly used to pay for goods and services. • Money, however, pays little or no rate of return. • Suppose we can group assets into money (liquid assets) and all other assets (illiquid assets). ...
Working NBER WORKING PAPER SERIES
... market approach to exchange rates" which emphasizes conditions for equilibrium in the markets for stocks of assets, especially national monies, as the proximate determinant of the behavior of exchange rates. Three general features of the research surveyed in this chapter distinguish it, in general e ...
... market approach to exchange rates" which emphasizes conditions for equilibrium in the markets for stocks of assets, especially national monies, as the proximate determinant of the behavior of exchange rates. Three general features of the research surveyed in this chapter distinguish it, in general e ...
The Role of Monetary Policy
... This raises their prices and lowers their yields. In the process, it also increases the quantity of reserves available to banks, hence the amount of bank credit, and, ultimately the total quantity of money. That is why central bankers in particular, and the financial community more broadly, generall ...
... This raises their prices and lowers their yields. In the process, it also increases the quantity of reserves available to banks, hence the amount of bank credit, and, ultimately the total quantity of money. That is why central bankers in particular, and the financial community more broadly, generall ...
PDF
... Additional imports of mining equipment, ∆Mm, can be negligible to as large as ∆Im depending on circumstances. In the special case where almost all the equipment is imported and ∆Mm ≈ ∆Im, the pressure for a further appreciation of the exchange rate change will be offset. For more likely cases where ...
... Additional imports of mining equipment, ∆Mm, can be negligible to as large as ∆Im depending on circumstances. In the special case where almost all the equipment is imported and ∆Mm ≈ ∆Im, the pressure for a further appreciation of the exchange rate change will be offset. For more likely cases where ...
The Giant Sucking Sound: Did NAFTA Devour the Mexican Peso?
... exchange rate should tend to come back to its historical average rather than be constant over time. Empirical studies suggest that this interpretation of relative PPP is useful for thinking about long-run tendencies in exchange rates, especially when inflation rates are high. Why is the real exchang ...
... exchange rate should tend to come back to its historical average rather than be constant over time. Empirical studies suggest that this interpretation of relative PPP is useful for thinking about long-run tendencies in exchange rates, especially when inflation rates are high. Why is the real exchang ...
NBER WORKING PAPER SERIES MONETARY AGGREGATES AS TARGETS SOME THEORETICAL ASPECTS Charles Freedman
... branched in two directions. The first deals with the question of whether the authorities should use reserves or interest rates as their instrument, in aiming at the money supply ...
... branched in two directions. The first deals with the question of whether the authorities should use reserves or interest rates as their instrument, in aiming at the money supply ...
here
... The relation of prices to the exchange rate was studied with interest during ’60’70-s. Initially models were established that based on the theory “Law of one price” presumed the existence of a unitarian connection between them. Later on there were developed models of the Parity of Buying Power (abso ...
... The relation of prices to the exchange rate was studied with interest during ’60’70-s. Initially models were established that based on the theory “Law of one price” presumed the existence of a unitarian connection between them. Later on there were developed models of the Parity of Buying Power (abso ...
Currency Unions, Product Introductions, and the Real Exchange Rate
... their nominal exchange rate (NER) is pegged. For example, prices in the euro zone typically differ from those in Sweden, which has a floating exchange rate, and also from those in Denmark, which pegs its currency to the euro. This clarifies that the common currency itself, and not simply the lack of ...
... their nominal exchange rate (NER) is pegged. For example, prices in the euro zone typically differ from those in Sweden, which has a floating exchange rate, and also from those in Denmark, which pegs its currency to the euro. This clarifies that the common currency itself, and not simply the lack of ...