the terms of the debate
... the government, pay for the loan of funds) exceeds that prevailing in global markets. Under floating exchange rates, such net capital inflows may result in a currency that is "overvalued" relative to its domestic purchasing power. Alternatively, capital flight (that is, large net capital outflows un ...
... the government, pay for the loan of funds) exceeds that prevailing in global markets. Under floating exchange rates, such net capital inflows may result in a currency that is "overvalued" relative to its domestic purchasing power. Alternatively, capital flight (that is, large net capital outflows un ...
PDF
... and sugar. The share of global seafood production that is internationally traded has been rapidly increasing during the last decades, reaching 39 percent in 2010 (FAO, 2012). Moreover, as seafood produced domestically competes with imported seafood for consumption and the fact that domestic consumer ...
... and sugar. The share of global seafood production that is internationally traded has been rapidly increasing during the last decades, reaching 39 percent in 2010 (FAO, 2012). Moreover, as seafood produced domestically competes with imported seafood for consumption and the fact that domestic consumer ...
Asset Prices, Financial Conditions, and the
... there are also real determinants of the real exchange rates, which could give rise to long-run deterministic trends in real exchange rates. For example, the Balassa-Samuelson effect implies that if a country has higher long-run productivity growth in its tradable goods sector than its trading partn ...
... there are also real determinants of the real exchange rates, which could give rise to long-run deterministic trends in real exchange rates. For example, the Balassa-Samuelson effect implies that if a country has higher long-run productivity growth in its tradable goods sector than its trading partn ...
Snímek 1
... • If e < 1, then foreign price level relatively lower than domestic one, domestic goods relatively more expensive, so less competitive • if e > 1, then foreign price level relatively higher than domestic one, domestic goods relatively cheaper, so ...
... • If e < 1, then foreign price level relatively lower than domestic one, domestic goods relatively more expensive, so less competitive • if e > 1, then foreign price level relatively higher than domestic one, domestic goods relatively cheaper, so ...
Optimal Monetary Policy in an Open Emerging Market Economy
... to more muted real appreciation, which prevents the consumption of financially-included agents from falling as much. This leads to a relative output expansion, which closes the output gap, thus stabilizing real wages and hand-to-mouth consumption. Further, lower exchange rate volatility directly sta ...
... to more muted real appreciation, which prevents the consumption of financially-included agents from falling as much. This leads to a relative output expansion, which closes the output gap, thus stabilizing real wages and hand-to-mouth consumption. Further, lower exchange rate volatility directly sta ...
The Role of Monetary Policy in Turkey Harun ALP Selim ELEKDAĞ
... addresses the following broad question: If an inflation targeting framework underpinned by a flexible exchange rate regime was not adopted, how much deeper would the recent recession have been? Taking the most intense year of the crisis as our baseline, namely 2009, counterfactual simulations indica ...
... addresses the following broad question: If an inflation targeting framework underpinned by a flexible exchange rate regime was not adopted, how much deeper would the recent recession have been? Taking the most intense year of the crisis as our baseline, namely 2009, counterfactual simulations indica ...
IS THERE AN ALTERNATIVE TO THE TAYLOR RULE WHEN EURO ZONE?
... Where i is the base rate, r is the NRR, INFGAP is the inflation expectation gap, GDP is the GDP growth gap, STOXX is a proxy for the performance of financial markets and SDR is a proxy for the exchange rate. The mean of the constant and residual that result from such a regression may be taken as an ...
... Where i is the base rate, r is the NRR, INFGAP is the inflation expectation gap, GDP is the GDP growth gap, STOXX is a proxy for the performance of financial markets and SDR is a proxy for the exchange rate. The mean of the constant and residual that result from such a regression may be taken as an ...
An Analysis of the Appreciation of the Chinese Currency and
... From 1949 until the late 1970s, the Chinese exchange rate was fixed at a highly overvalued level, 1.5 Yuan per US dollar. but Since 1978 as the economic reforms began, reforms of China’s exchange rate regime have been a key factor underlying the country’s growing participation in global trade. In th ...
... From 1949 until the late 1970s, the Chinese exchange rate was fixed at a highly overvalued level, 1.5 Yuan per US dollar. but Since 1978 as the economic reforms began, reforms of China’s exchange rate regime have been a key factor underlying the country’s growing participation in global trade. In th ...
Policy Instrument Choice and Non-Coordinated Monetary Policy in
... in state-contingent rules which determine the setting of the policy instrument selected in the firststage game. ...
... in state-contingent rules which determine the setting of the policy instrument selected in the firststage game. ...
Mr. Samson Ampofo
... in interest rates. As a result, the depreciation episode was more protracted and contributed to a more significant increase in inflation. Nevertheless, exports grew at unprecedented rates and the overall economic growth rate reached a seven-year high. The financial system adjusted for the benefit of ...
... in interest rates. As a result, the depreciation episode was more protracted and contributed to a more significant increase in inflation. Nevertheless, exports grew at unprecedented rates and the overall economic growth rate reached a seven-year high. The financial system adjusted for the benefit of ...
slides - SUNY Albany
... De…nition 1 Given constant values for the world interest rate and price level, an upper bound on the long-run value of debt, a policy mix, de…ned by the surplus rule from equation (4) with = 1 and a monetary policy …xing the exchange rate, which the government will maintain as long as possible, and ...
... De…nition 1 Given constant values for the world interest rate and price level, an upper bound on the long-run value of debt, a policy mix, de…ned by the surplus rule from equation (4) with = 1 and a monetary policy …xing the exchange rate, which the government will maintain as long as possible, and ...
Time Series vs. Panel Estimates
... pooled estimations, we formally check whether this restriction holds.9 However, even a rejection of the poolability null would not necessarily mean that the obtained pooled estimates are worthless. It may well be that the ’benefits of higher estimation precision’ outweigh the ’costs of bias’ as also ...
... pooled estimations, we formally check whether this restriction holds.9 However, even a rejection of the poolability null would not necessarily mean that the obtained pooled estimates are worthless. It may well be that the ’benefits of higher estimation precision’ outweigh the ’costs of bias’ as also ...
mmi14-Mueller 19106649 en
... perspective of the fiscal theory of the price level, which is also operative in parts of our analysis. The focus of these contributions are the implications of the fiscal rule in one or several member countries for the entire union (Woodford 1996, Sims 1997, Bergin 2000). In contrast, we analyze the c ...
... perspective of the fiscal theory of the price level, which is also operative in parts of our analysis. The focus of these contributions are the implications of the fiscal rule in one or several member countries for the entire union (Woodford 1996, Sims 1997, Bergin 2000). In contrast, we analyze the c ...
Chapter 17 Monetary Policy
... what level of output, prices, or interest rates you would like to achieve and then shift the LM curve until you get it. However, in the real world, we never have the information that we need to conduct policy in this simple way. Macroeconomic variables respond slowly to changes in monetary policy, s ...
... what level of output, prices, or interest rates you would like to achieve and then shift the LM curve until you get it. However, in the real world, we never have the information that we need to conduct policy in this simple way. Macroeconomic variables respond slowly to changes in monetary policy, s ...
EO4IC xrbrie, W 02138
... with the stage of disinflation? The next section (11) takes up a simple open economy extension of the basic macro model and considers alternative price level anchors. The subsequent section ...
... with the stage of disinflation? The next section (11) takes up a simple open economy extension of the basic macro model and considers alternative price level anchors. The subsequent section ...
No. 86
... policy depending on the exchange rate regime and the way prices are set. In general, under flexible exchange rates, taxes aim to finance public expenditures in the least distortionary way, while at the same time they can be used for stabilizing marginal costs of firms in response to shocks. This tra ...
... policy depending on the exchange rate regime and the way prices are set. In general, under flexible exchange rates, taxes aim to finance public expenditures in the least distortionary way, while at the same time they can be used for stabilizing marginal costs of firms in response to shocks. This tra ...
NBER WORKING PAPER SERIES THE EXCHANGE RATE AS A TOOL OF COMMERCIAL POLICY
... This paper develops a dynamic, rational expectations model that generalizes both the standard, two—country, two—commodity model of real trade theory and ...
... This paper develops a dynamic, rational expectations model that generalizes both the standard, two—country, two—commodity model of real trade theory and ...
The Money Market and Monetary Policy
... excess reserves yields the change in the money supply. Thus, if the Fed wants to change the money supply by a given amount, the money multiplier indicates by how much the excess reserves need to be ...
... excess reserves yields the change in the money supply. Thus, if the Fed wants to change the money supply by a given amount, the money multiplier indicates by how much the excess reserves need to be ...
NBER WORKING PAPER SERIES SHORT-TERM AND LONG-TERM INTEREST A SMALL OPEN ECONOMY
... as well. The inclusion of this variable, in addition to R, does not alter the substance of our analysis in any essential way. Domestic money market equilibrium is specified by (ib), with the demand for money depending upon the short—term nominal interest rate. ...
... as well. The inclusion of this variable, in addition to R, does not alter the substance of our analysis in any essential way. Domestic money market equilibrium is specified by (ib), with the demand for money depending upon the short—term nominal interest rate. ...
Factors that help to predict INR to USD exchange rate
... This paper outlines the history of the Indian currency exchange market, the basics of the Indian currency markets, past trends, its evolution to present day and the most significant factors that affect the exchange rates of the Indian Rupee and the US Dollar. The general history provides a profound ...
... This paper outlines the history of the Indian currency exchange market, the basics of the Indian currency markets, past trends, its evolution to present day and the most significant factors that affect the exchange rates of the Indian Rupee and the US Dollar. The general history provides a profound ...
Ireland in EMU: more shocks, less insulation? Patrick Honohan The World Bank
... European Monetary Union in January 1999. Thus at the time of writing, Ireland has had no independent currency for nearly seven years, or about half as long as the lifetime of the narrowband ERM (1979-1992). This is a period sufficiently long to begin to provide some information about the magnitude o ...
... European Monetary Union in January 1999. Thus at the time of writing, Ireland has had no independent currency for nearly seven years, or about half as long as the lifetime of the narrowband ERM (1979-1992). This is a period sufficiently long to begin to provide some information about the magnitude o ...
NBER WORKING PAPER SERIES THE U.S. CURRENT ACCOUNT AND THE DOLLAR
... First, an increase in the U.S. demand for foreign goods, partly because of relatively higher U.S. growth, partly because of shifts in demand away from U.S. goods towards foreign goods. Second, an increase in the foreign demand for U.S. assets, starting with high foreign private demand for U.S. equit ...
... First, an increase in the U.S. demand for foreign goods, partly because of relatively higher U.S. growth, partly because of shifts in demand away from U.S. goods towards foreign goods. Second, an increase in the foreign demand for U.S. assets, starting with high foreign private demand for U.S. equit ...
Slide
... 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. ...
... 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. ...