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 ...
The Role of Monetary Policy Milton Friedman The American
... This raises their prices and lowers their yields. I n 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, general ...
... This raises their prices and lowers their yields. I n 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, general ...
Fixing Argentina - Arlindo Correia
... currency board has three major defining features: (1) a rigid exchange rate with an anchor currency, (2) full convertibility into the anchor currency at that exchange rate, (3) and reserves of 100 percent or slightly more of its monetary liabilities, held in foreign assets only. Together, these thre ...
... currency board has three major defining features: (1) a rigid exchange rate with an anchor currency, (2) full convertibility into the anchor currency at that exchange rate, (3) and reserves of 100 percent or slightly more of its monetary liabilities, held in foreign assets only. Together, these thre ...
Foreign currency borrowing by small firms in emerging markets
... Tornell (2004), bailouts occur when a critical mass of borrowers defaults. As a result, borrowers in the non-tradable sector coordinate their exposure by denominating debt in tradable (foreign currency) goods. Domestic agents often lend in dollars too. One view is that riskaverse consumers prefer to ...
... Tornell (2004), bailouts occur when a critical mass of borrowers defaults. As a result, borrowers in the non-tradable sector coordinate their exposure by denominating debt in tradable (foreign currency) goods. Domestic agents often lend in dollars too. One view is that riskaverse consumers prefer to ...
Can macroeconomic indicators predict a currency crisis? Evidence
... The base year for all indices is 1995=100. Due to the limitation of the availability of the quarterly data, some data have been converted into quarterly data using the quadratic spline method. The monthly stock indices such as the stock exchange of Thailand (SET), the Korean composite stock price i ...
... The base year for all indices is 1995=100. Due to the limitation of the availability of the quarterly data, some data have been converted into quarterly data using the quadratic spline method. The monthly stock indices such as the stock exchange of Thailand (SET), the Korean composite stock price i ...
NBER WORKING PAPER SERIES THE SIMPLE GEOMETRY OF TRANSMISSION AND STABILIZATION
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
... in emphasis and style, a number of tightly related research agendas (from the ‘new neoclassical’synthesis to the ‘neo-Wicksellian’monetary economics to the ‘new open-economy macroeconomics’, and so on) have focused on the properties of choice-theoretic models with imperfectly competitive labor and/o ...
Purchasing Power Parity and Country Characteristics
... hold better for countries more open to trade because trade barriers hinder international arbitrage and among countries that are geographically closer because high transportation costs associated with greater distance could hinder trade and arbitrage. PPP may also hold better between countries with s ...
... hold better for countries more open to trade because trade barriers hinder international arbitrage and among countries that are geographically closer because high transportation costs associated with greater distance could hinder trade and arbitrage. PPP may also hold better between countries with s ...
How Did Short-Term Market Rates React to Liftoff?
... guidance – took steps specifically to influence longterm rates. The first two, in particular, attempted to do so through very large purchases of longer-term assets. Researchers have debated how much of an effect these programs had on longer-term interest rates, as well as to what extent the effect t ...
... guidance – took steps specifically to influence longterm rates. The first two, in particular, attempted to do so through very large purchases of longer-term assets. Researchers have debated how much of an effect these programs had on longer-term interest rates, as well as to what extent the effect t ...
The Yen and the Japanese Economy, 2004
... Other kinds of downside risk, originating abroad, also would affect the Japanese economy. Higher oil prices are an obvious downside risk for oilimporting Japan. However, the oil-import expenditures are small relative to Japanese exports, so moderately higher oil prices would hardly make a dent in th ...
... Other kinds of downside risk, originating abroad, also would affect the Japanese economy. Higher oil prices are an obvious downside risk for oilimporting Japan. However, the oil-import expenditures are small relative to Japanese exports, so moderately higher oil prices would hardly make a dent in th ...
A small open economy`s view on interest rate differential`s
... and depreciate the foreign currency. However, the forward premium puzzle could cause opposite effects on currencies value (Lothian 2016, p. 1). Our main objective is to investigate the uncovered interest rate parity in four currency pairs. This is of interest since the nominal exchange rates as fina ...
... and depreciate the foreign currency. However, the forward premium puzzle could cause opposite effects on currencies value (Lothian 2016, p. 1). Our main objective is to investigate the uncovered interest rate parity in four currency pairs. This is of interest since the nominal exchange rates as fina ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... compete in providing the most attractive economic environment, measured primarily by price stability, and that policy coordination is harmful because it reduces competition among governments. Coordination can also raise the costs of policy mistakes because governments will do the same wrong things c ...
... compete in providing the most attractive economic environment, measured primarily by price stability, and that policy coordination is harmful because it reduces competition among governments. Coordination can also raise the costs of policy mistakes because governments will do the same wrong things c ...
The Yugoslav Hyperinflation of 1992-1994
... The problem with the monetarist view that money growth is endogenous in a state of fiscal dominance is that it cannot explain the runaway inflation associated with the large and growing deficit that has been observed in most hyperinflations, including the Yugoslav one. The monetarist model predicts ...
... The problem with the monetarist view that money growth is endogenous in a state of fiscal dominance is that it cannot explain the runaway inflation associated with the large and growing deficit that has been observed in most hyperinflations, including the Yugoslav one. The monetarist model predicts ...
Seminar Paper No. 740 AN ESTIMATED DSGE MODEL FOR SWEDEN
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... With the current estimated population of 8.9 million, the GDP of 6.712 billion USD, the ratio of total trade to GDP of 31 percent, out of which imports alone constitute 20 percent and relatively no exchange control (CIA world factbook, 2008), Benin Republic can best be described as a small open econ ...
... With the current estimated population of 8.9 million, the GDP of 6.712 billion USD, the ratio of total trade to GDP of 31 percent, out of which imports alone constitute 20 percent and relatively no exchange control (CIA world factbook, 2008), Benin Republic can best be described as a small open econ ...
M o n e t a r y ... Contents 1 March 2003
... The Reserve Bank has decided to leave the Official Cash Rate at 5.75 per cent. On 23 January 2003, we stated that “If the exchange rate remains at around present levels or appreciates further, and if the evidence points to reduced pressures on resources and medium-term inflation, then there may be s ...
... The Reserve Bank has decided to leave the Official Cash Rate at 5.75 per cent. On 23 January 2003, we stated that “If the exchange rate remains at around present levels or appreciates further, and if the evidence points to reduced pressures on resources and medium-term inflation, then there may be s ...
Primary Money Creation Channels under Instability
... appropriate amount of primary money. It represents a logical circular flow between monetary and real economies. We will not get into details of supply and demand for primary money because we are interested primarily for reasons and flows of primary money creation. Discounting already discounted bil ...
... appropriate amount of primary money. It represents a logical circular flow between monetary and real economies. We will not get into details of supply and demand for primary money because we are interested primarily for reasons and flows of primary money creation. Discounting already discounted bil ...
Document
... Under Greenspan, the answer was no! We have to assume that the government is smarter than the market. Greenspan preferred to let the market sort these things out. However, this policy is dangerous when a bubble is also accompanied by a credit boom. As we just experienced, such a bubble has far reach ...
... Under Greenspan, the answer was no! We have to assume that the government is smarter than the market. Greenspan preferred to let the market sort these things out. However, this policy is dangerous when a bubble is also accompanied by a credit boom. As we just experienced, such a bubble has far reach ...
Exchange rate arrangements and misalignments: contrasting words
... Ep and Ed stand for the partner and domestic countries bilateral nominal exchange rate respectively, expressed as local currency units per US dollar. CPId and CPIp are the consumer price index (or the producer price index when the former is missing) in the domestic and foreign countries respectively ...
... Ep and Ed stand for the partner and domestic countries bilateral nominal exchange rate respectively, expressed as local currency units per US dollar. CPId and CPIp are the consumer price index (or the producer price index when the former is missing) in the domestic and foreign countries respectively ...
Impact of Floating Exchange Rates on Company Risk Management
... not be hedged; even if it is to be hedged. corporations need not hedge it. ...
... not be hedged; even if it is to be hedged. corporations need not hedge it. ...
Central Banks and The Money Supply
... high-powered money dominate the long-term moveinents of money supply. Data developed by Brunner and Meltzer established the far more controversial proposition that changes in high-powered money also dominate short-term movements in the money stock.4 They found, for example, that 85 per cent of the v ...
... high-powered money dominate the long-term moveinents of money supply. Data developed by Brunner and Meltzer established the far more controversial proposition that changes in high-powered money also dominate short-term movements in the money stock.4 They found, for example, that 85 per cent of the v ...
NBER WORKING PAPER SERIES EXPENDITURE SWITCHING VS. REAL EXCHANGE RATE
... low. We show that reducing the flexibility of intermediate goods prices will first increase desired exchange rate volatility. But after a certain point, as a greater share of intermediate goods prices are sticky, it becomes desirable to reduce exchange rate volatility. The paper is organized as foll ...
... low. We show that reducing the flexibility of intermediate goods prices will first increase desired exchange rate volatility. But after a certain point, as a greater share of intermediate goods prices are sticky, it becomes desirable to reduce exchange rate volatility. The paper is organized as foll ...
NBER WORKING PAPER SERIES DEBT DELEVERAGING AND THE EXCHANGE RATE Pierpaolo Benigno
... omy requires short-run depreciation and long-run appreciation of the deleverager’s real exchange rate and a sharper short-term fall in its real interest rate than in the rest of the world. Constraints or policies that impede these mechanisms can only prolong the contraction. For instance, the zero- ...
... omy requires short-run depreciation and long-run appreciation of the deleverager’s real exchange rate and a sharper short-term fall in its real interest rate than in the rest of the world. Constraints or policies that impede these mechanisms can only prolong the contraction. For instance, the zero- ...
Economic commentaries 3/2012
... estimated monthly transfer would imply. Building up the petroleum buffer portfolio in this way is intended to avoid upward adjustments in foreign exchange purchases later in the year. Norges Bank can also purchase less foreign exchange than estimated transfers imply, if economic devel ...
... estimated monthly transfer would imply. Building up the petroleum buffer portfolio in this way is intended to avoid upward adjustments in foreign exchange purchases later in the year. Norges Bank can also purchase less foreign exchange than estimated transfers imply, if economic devel ...