Monetary Policy Shocks from the EU and Munich Personal RePEc Archive
... playing pivotal roles in determining how output responds and which of trade and/or interest rates will act as transmission mechanisms. For the most part, fixed exchange rate countries appear to be doing better than floating exchange rate countries, perhaps a bit counterintuitively. However, the reas ...
... playing pivotal roles in determining how output responds and which of trade and/or interest rates will act as transmission mechanisms. For the most part, fixed exchange rate countries appear to be doing better than floating exchange rate countries, perhaps a bit counterintuitively. However, the reas ...
Are the Foreign-Currency Official Reserves of Emerging Asia Excessive?
... of the IMF, and economies with a higher level of international reserves like China, survived the East Asian financial crisis better than those with a lower level. Consequently, emerging Asia became distrustful of the IMF and the fundamental belief not to “rely on the IMF in the future even as a last ...
... of the IMF, and economies with a higher level of international reserves like China, survived the East Asian financial crisis better than those with a lower level. Consequently, emerging Asia became distrustful of the IMF and the fundamental belief not to “rely on the IMF in the future even as a last ...
Mankiw 6e PowerPoints
... The results from large open economy analysis are a mixture of the results for the closed & small open economy cases. ...
... The results from large open economy analysis are a mixture of the results for the closed & small open economy cases. ...
Euro50 Group Meeting - Lorenzo Bini Smaghi
... stocks of foreign reserves. To sum up the argument, emerging economies may have an incentive to exit in a timely way from their expansionary policies if they can be certain that advanced economies, starting with the US, will do the same when their domestic conditions allow it. The third reason why A ...
... stocks of foreign reserves. To sum up the argument, emerging economies may have an incentive to exit in a timely way from their expansionary policies if they can be certain that advanced economies, starting with the US, will do the same when their domestic conditions allow it. The third reason why A ...
- Institute of Economic Affairs
... Money can be defined as a generalised purchasing power, which means it can be traded (at least relatively) against anything, at any time and with anyone. Holding money makes transactions easier and helps us face the uncertainties of life. A given currency at a given time can supply these services mo ...
... Money can be defined as a generalised purchasing power, which means it can be traded (at least relatively) against anything, at any time and with anyone. Holding money makes transactions easier and helps us face the uncertainties of life. A given currency at a given time can supply these services mo ...
Does it pay to defend – The dynamics of financial crises
... central bank basically faces three alternatives. If it chooses to defend its currency, the defense can be successful or not. Each of these outcomes yields entirely di¤erent economic consequences. The empirical results strongly support the theoretical model. In our panel of 33 emerging market countri ...
... central bank basically faces three alternatives. If it chooses to defend its currency, the defense can be successful or not. Each of these outcomes yields entirely di¤erent economic consequences. The empirical results strongly support the theoretical model. In our panel of 33 emerging market countri ...
foreign exchange risk
... Consider the case of Dell Inc., which operates assembly plants for its computers within the United States as well as in Ireland, Malaysia, China, and Brazil; runs offices and call centers in several other countries; and markets its products in more than 100 countries. Dells currency problems are evi ...
... Consider the case of Dell Inc., which operates assembly plants for its computers within the United States as well as in Ireland, Malaysia, China, and Brazil; runs offices and call centers in several other countries; and markets its products in more than 100 countries. Dells currency problems are evi ...
Monetary Policy and Exchange Rate Interactions in a Small Open
... After having allowed for a contemporaneous relationship between the interest rate and the exchange rate, the remaining VAR can be identified using standard recursive zero restrictions on the impact matrix of shocks that are commonly used in the closed economy literature, i.e., assuming a lagged resp ...
... After having allowed for a contemporaneous relationship between the interest rate and the exchange rate, the remaining VAR can be identified using standard recursive zero restrictions on the impact matrix of shocks that are commonly used in the closed economy literature, i.e., assuming a lagged resp ...
Exchange Rates and Monetary Policy Uncertainty
... is denominated in their respective domestic currency. We use Rt to denote the interest rate in the United States and Rt∗ to denote the interest rate in the foreign country between periods t and t + 1. We assume that the interest rate in the United States is smaller than that in the foreign country i ...
... is denominated in their respective domestic currency. We use Rt to denote the interest rate in the United States and Rt∗ to denote the interest rate in the foreign country between periods t and t + 1. We assume that the interest rate in the United States is smaller than that in the foreign country i ...
Revisiting the Dollar-Euro Permanent Equilibrium Exchange Rate
... There are a large variety of methods available for calculating a country’s equilibrium exchange rate, from the internal-external balance approach, to the behavioural and permanent equilibrium approaches, through to the new open economy approach (see MacDonald (2000) and Driver and Westaway (2004) fo ...
... There are a large variety of methods available for calculating a country’s equilibrium exchange rate, from the internal-external balance approach, to the behavioural and permanent equilibrium approaches, through to the new open economy approach (see MacDonald (2000) and Driver and Westaway (2004) fo ...
Exchange rate anomalies in the industrial countries: A solution with
... "rst two puzzles and provided suggestions on how to explain them. For what concerns the liquidity puzzle, Sims (1992) suggested that innovations in monetary aggregates may not correctly represent changes in monetary policy in the presence of money demand shocks. Thus, he proposed considering innovat ...
... "rst two puzzles and provided suggestions on how to explain them. For what concerns the liquidity puzzle, Sims (1992) suggested that innovations in monetary aggregates may not correctly represent changes in monetary policy in the presence of money demand shocks. Thus, he proposed considering innovat ...
New Zealand`s Exchange Rate Cycles: Evidence and Drivers
... Figure 1: New Zealand’s real trade-weighted exchange rate .............................................................4 Figure 2: New Zealand’s real and nominal trade-weighted exchange rate ........................................4 Figure 3: Stylised path for the real exchange rate .............. ...
... Figure 1: New Zealand’s real trade-weighted exchange rate .............................................................4 Figure 2: New Zealand’s real and nominal trade-weighted exchange rate ........................................4 Figure 3: Stylised path for the real exchange rate .............. ...
Money Demand, the Equilibrium Interest Rate, and
... the hope of selling them when interest rates fall. ...
... the hope of selling them when interest rates fall. ...
Introduction - Lahore School of Economics
... In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the money demand function should include the short-term market interest rate. Further, economic agents may choose short-term financial assets as an alternative ...
... In the case of developing countries, where the financial market (particularly the long-term bond and equity markets) is not fully developed, the money demand function should include the short-term market interest rate. Further, economic agents may choose short-term financial assets as an alternative ...
DISCUSSION PAPERS 02-23 High Inflation, Hyperinflation and
... the losses of these firms were not directly covered by the government they did not add to the public deficit but the state performed an informal pressure on the banking system to cover these losses by forwarding soft loans to labor-managed firms. These credits were given in domestic currency at the ...
... the losses of these firms were not directly covered by the government they did not add to the public deficit but the state performed an informal pressure on the banking system to cover these losses by forwarding soft loans to labor-managed firms. These credits were given in domestic currency at the ...
investigating the stability of money demand in namibia a thesis
... transferable deposits. In this case, currency in circulation refers to notes and coins issued by the BoN less the amount held by commercial banks. Transferable deposits refer to the current account deposits in national and foreign currency of other financial institutions, state and local governments ...
... transferable deposits. In this case, currency in circulation refers to notes and coins issued by the BoN less the amount held by commercial banks. Transferable deposits refer to the current account deposits in national and foreign currency of other financial institutions, state and local governments ...
How Does a Depreciation in the Exchange Rate Affect Trade
... Lower prices in the domestic country will generally increase foreign demand for domestic country’s good, but only if the foreign elasticity of demand is elastic. If the foreign elasticity of demand for domestic goods is inelastic the quantity of domestic goods will not increase to the extent that i ...
... Lower prices in the domestic country will generally increase foreign demand for domestic country’s good, but only if the foreign elasticity of demand is elastic. If the foreign elasticity of demand for domestic goods is inelastic the quantity of domestic goods will not increase to the extent that i ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... misleading. The accumulation of external debt and its servicing are both clearly macroeconomic phenomena. These two are fundamentally linked to the relation between aggregate expenditures and national income. As such, the various microeconomic measures constituting a country’s trade regime play a so ...
... misleading. The accumulation of external debt and its servicing are both clearly macroeconomic phenomena. These two are fundamentally linked to the relation between aggregate expenditures and national income. As such, the various microeconomic measures constituting a country’s trade regime play a so ...
NBER WORKING PAPER SERIES CAPITAL FLOWS, INVESTMENT, AND EXCHANGE RATES Alan C. Stockman
... the following scenario. The household begins period t with moneys Mt and Nt, ...
... the following scenario. The household begins period t with moneys Mt and Nt, ...
M o n e t a r y P... Contents 1 December 2000
... What was not clear was how the economy would respond to the stimulatory monetary conditions then prevailing. Would depressed business and consumer confidence yield to the buoyant world environment and low exchange rate, leading to a strong resurgence in economic activity and resultant medium-term pr ...
... What was not clear was how the economy would respond to the stimulatory monetary conditions then prevailing. Would depressed business and consumer confidence yield to the buoyant world environment and low exchange rate, leading to a strong resurgence in economic activity and resultant medium-term pr ...