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This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2008, Volume 23
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2008, Volume 23

... variables. It also allows us to measure the spillovers between individual countries and the EA. Many papers have attempted to characterize the dynamics of European economies. One common strategy has been to model the EA economy using only EA aggregates. Examples include evidence based on VARs (Peers ...
NBER WORKING PAPER SERIES MONETARY AND EXCHANGE RATE POLICY COORDINATION IN ASEAN+1
NBER WORKING PAPER SERIES MONETARY AND EXCHANGE RATE POLICY COORDINATION IN ASEAN+1

... reserve pooling via the Chiang Mai Initiative (CMI) and of the ABM. Reserve pooling through the CMI structure and development of the ABM have received substantial attention to date. See, for example, Kuroda and Kawai (2003) and Nasution (2005). The political cooperation involved in the CMI and the r ...
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NBER WORKING PAPER SERIES ASSET PRICES AND EXCHANGE RATES Anna Pavlova Roberto Rigobon

... by an exchange rate appreciation. Surprisingly, these connections have rarely been highlighted in workhorse models of exchange rate determination. This paper develops a framework in which the same forces that drive exchange rates, also influence countries’ stock markets, and argues that a great deal ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
Principles of Macroeconomics, Case/Fair/Oster, 10e

... of interest rates, the 2-year rate is equal to the average of the current 1year rate and the 1-year rate expected a year from now. Fed behavior may directly affect people’s expectations of the future shortterm rates, which will then affect long-term rates. ...
Between the cup and the lip
Between the cup and the lip

... 6 Camara Neto and Vernengo (2004) also advocate a low interest rate policy so as to make it easier for the government to implement a sound countercyclical fiscal policy. 7 According to Keynes, ‘The social philosophy towards which the General Theory might lead’ (Keynes 1936: 374-377) focuses on our a ...
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Ehrmann - Viessmann European Research Centre
Ehrmann - Viessmann European Research Centre

... Bank to review its rates to reduce the euro-dollar exchange level. If this does not happen, I think we should aim to have a political committee with government representatives to work alongside the central bank” ...
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... countries. In particular, we …nd larger responses of long-term interest rates in Italy and in Spain, which contribute to larger contractions of consumption in these two countries. Also, restrictive monetary policy in the EA tended to trigger a depreciation of the lira and the peseta, and a smaller ...
What Determines Bilateral Trade Flows? - bu people
What Determines Bilateral Trade Flows? - bu people

... by prior researchers and to the received theories of international trade. However, we stop well short of testing any particular theory of international trade. Our dataset includes 92 countries. We collected data on 24 variables that measure a wide range of economic, geographic, and policy environmen ...
Volume 68 No. 4, December 2005 Contents
Volume 68 No. 4, December 2005 Contents

... prices on consumer prices (through higher costs of transport services and other goods and services, as opposed to the cost of petrol itself) could be quite large. However, how large these indirect effects turn out to be will depend very much on how persistent the higher fuel prices are expected to b ...
PDF
PDF

... in developed countries. Overshooting of agricultural prices can at least partially explain the observed agricultural-price variability. These monetary impacts and financial factors have policy implications as well. The short- and long-run impacts of monetary policy have been very important for the ...
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Practice Problems on Money and Monetary Policy

... money multiplier is one. Under fractional reserve banking, with all money held as deposits, the money multiplier is the reciprocal of the reserve-deposit ratio. The multiplier is higher under fractional reserve banking, because banks hold only part of the monetary base as reserve and create money in ...
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... United States have gradually increase, the Canadian segment decreased from 2014 to 2015. In addition to that, the international segment barely grew 2% over the last year. Another finding was that the percentage of sales that comes from each item category didn’t change much over the last three years. ...
IE-UFRJ Discussion Paper - Instituto de Economia
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... exchange devaluation is the consequence of serious international crisis, low export elasticity of demand, high import elasiticity of imports, and terms of trade deterioration, which would imply, or require, a series of new nominal exchange rate devaluation until the new real exchange rate settles in ...
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... started to flow out of emerging market economies (EMEs). The event echoed what had happened after the first “tapering” announcement last May: the prospect of US monetary tightening sent EME financial markets tumbling. These developments confirm that advanced economy monetary policy has large and sig ...
An Analysis of Cambodia`s Trade Flows
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... between Cambodia’s city (Phnom Penh) to each of her partners’ capital cities were obtained from GEOBYTES (www.geobytes.com/CityDistanceTool.htm).7 2.4. Expected signs of the coefficients The real GDPs are used to proxy for the economic sizes of the countries; hence, if real GDP increases, countries ...
1 - unece
1 - unece

Ignorance and Influence: U.S. Economists on Argentina`s
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... ECONOMISTS CAN BE HAZARDOUS TO YOUR WEALTH IN LATE 1998, ARGENTINA ENTERED AN ECONOMIC DECLINE that was to last until 2002. The decline deepened after Brazil, Argentina’s largest trading partner, devalued its currency substantially in January 1999. Argentina could not devalue under the monetary syst ...
ethiopian commodity exchange - Making The Connection: Value
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... Trading volume in 2010-11 totaled 504,000 tons for coffee, sesame seed, pea bean and maize, with a trading value of US$ 1.2 billion. On the ground, ECX has a network of over 50 warehouses spread across 17 sites, with a total storage capacity of 300,000 tons. Crops delivered to the warehouses are gra ...
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... consequences of antidumping policies, both in the U.S. and in other countries,1 little work has been done on the extent to which patterns of antidumping filings and enforcement have been driven by macroeconomic phenomena. We contribute to this literature here, by first analyzing the determinants of ...
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... 2. A SMALL OPEN ECONOMY MODEL We model the world economy as a continuum of small open economies represented by the unit interval. Since each economy is of measure zero, its domestic policy decisions do not have any impact on the rest of the world. While different economies are subject to imperfectly ...
1st draft: March 28, 2010 Paper to be presented at the Fourth Annual
1st draft: March 28, 2010 Paper to be presented at the Fourth Annual

... (1996-2009) suggest that there exists an optimal-exchange rate level that maximizes growth. If there is also a positive relationship between real exchange rate and inflation, the optimal exchange rate for economic growth might not be compatible with the inflation target desired by the population. Th ...
How does monetary policy respond to exchange rate movements
How does monetary policy respond to exchange rate movements

... be equally interesting, and more to the point, in describing how central banks implement policy. Furthermore, the empirical results may be an important addition to the more theoretically driven structural model responses derived in Lubik and Schorfheide (2007) and Dong (2008), where the chosen excha ...
Financial Reporting in Hyperinflationary Economies
Financial Reporting in Hyperinflationary Economies

... therefore in the general purchasing power of money. ...
Monetary Conditions in the Kingdom of Serbia (1884-1914)
Monetary Conditions in the Kingdom of Serbia (1884-1914)

... It would be right to say that the National Bank was successful in establishing relatively stable monetary conditions given the circumstances in which it operated. Such an assessment is based on the fact that the National Bank’s relatively low and stable interest rates throughout the period under rev ...
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Fixed exchange-rate system

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold. There are benefits and risks to using a fixed exchange rate. A fixed exchange rate is usually used in order to stabilize the value of a currency by directly fixing its value in a predetermined ratio to a different, more stable or more internationally prevalent currency (or currencies), to which the value is pegged. In doing so, the exchange rate between the currency and its peg does not change based on market conditions, the way floating currencies will do. This makes trade and investments between the two currency areas easier and more predictable, and is especially useful for small economies in which external trade forms a large part of their GDP.A fixed exchange-rate system can also be used as a means to control the behavior of a currency, such as by limiting rates of inflation. However, in doing so, the pegged currency is then controlled by its reference value. As such, when the reference value rises or falls, it then follows that the value(s) of any currencies pegged to it will also rise and fall in relation to other currencies and commodities with which the pegged currency can be traded. In other words, a pegged currency is dependent on its reference value to dictate how its current worth is defined at any given time. In addition, according to the Mundell–Fleming model, with perfect capital mobility, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.In the 21st century, the currencies associated with large economies typically do not fix or peg exchange rates to other currencies. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
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