When Capital Inflows Come to a Sudden Stop: Consequences and
... funds. Yet, as in Mexico, all the recipients of this financing have had to undertake drastic adjustment, as private capital flows dried up. Furthermore, these countries have had to cope with severe recessions. Hence, if we are to assess whether the balance has tilted in recent years toward adjustmen ...
... funds. Yet, as in Mexico, all the recipients of this financing have had to undertake drastic adjustment, as private capital flows dried up. Furthermore, these countries have had to cope with severe recessions. Hence, if we are to assess whether the balance has tilted in recent years toward adjustmen ...
Consumption and real exchange rates with incomplete
... rate. There are two key features that are important in accounting for our results. By assuming that international asset trade is limited to a risk-less bond we break the link between the real exchange rate and relative consumption that would arise under complete …nancial markets. While by introducin ...
... rate. There are two key features that are important in accounting for our results. By assuming that international asset trade is limited to a risk-less bond we break the link between the real exchange rate and relative consumption that would arise under complete …nancial markets. While by introducin ...
The new BIS effective exchange rate indices
... The OECD publishes statistics on trade in services for 28 economies (27 OECD member countries and Hong Kong) from 1999. However, the geographical coverage is not as extensive as for merchandise trade. ...
... The OECD publishes statistics on trade in services for 28 economies (27 OECD member countries and Hong Kong) from 1999. However, the geographical coverage is not as extensive as for merchandise trade. ...
Can Currency Competition Work? - Penn Economics
... and Lagos and Wright (2003) in economies with government-issued money and a moneygrowth rule are not an inherent feature of public monies. Private monies are also subject to self-fulfilling inflationary episodes, even when they are issued by profit-maximizing, long-lived entrepreneurs who care about ...
... and Lagos and Wright (2003) in economies with government-issued money and a moneygrowth rule are not an inherent feature of public monies. Private monies are also subject to self-fulfilling inflationary episodes, even when they are issued by profit-maximizing, long-lived entrepreneurs who care about ...
Name of presentation
... transaction occurs. – For example, a czech firm may borrow U.S. dollars from a bank in London. – Because foreign banks do not operate under czech legal restrictions, they may offer better interest rates on deposits and loans. – On the other hand, foreign banking laws do apply and may cause other pro ...
... transaction occurs. – For example, a czech firm may borrow U.S. dollars from a bank in London. – Because foreign banks do not operate under czech legal restrictions, they may offer better interest rates on deposits and loans. – On the other hand, foreign banking laws do apply and may cause other pro ...
Filed Pursuant to Rule 424(b)(3) Registration No. 333
... We may deliver the Notes against payment therefor in New York, New York on a date that is in excess of three business days following the Pricing Date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unl ...
... We may deliver the Notes against payment therefor in New York, New York on a date that is in excess of three business days following the Pricing Date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unl ...
Central Bank Sterilization Policy
... As a rule, central banks in transitional and/or emerging economies have to deal with surplus instead of deficit liquidity positions in the banking system, since these economies often attract a sizeable capital inflow as they open and undergo privatization (Ganley, 2002). Generally, two major types o ...
... As a rule, central banks in transitional and/or emerging economies have to deal with surplus instead of deficit liquidity positions in the banking system, since these economies often attract a sizeable capital inflow as they open and undergo privatization (Ganley, 2002). Generally, two major types o ...
The transmission mechanism of monetary policy in Indonesia
... credit institution, to control domestic demand, curb domestic inflation, and to attack the deficit in the balance of payments. Then, in 1970, the government declared the rupiah to be fully a convertible currency (free foreign exchange regime), with no restrictions on the flow of foreign exchange in ...
... credit institution, to control domestic demand, curb domestic inflation, and to attack the deficit in the balance of payments. Then, in 1970, the government declared the rupiah to be fully a convertible currency (free foreign exchange regime), with no restrictions on the flow of foreign exchange in ...
Capital-Account Crisis and Credit Contraction
... The malignancy of the Asian crisis comes from its characteristics as twin financial crises. Externally, it is a “capital-account crisis” (Yoshitomi 1998) driven by excessive net private capital inflows relative to underlying current-account deficits, and further worsened by their composition domina ...
... The malignancy of the Asian crisis comes from its characteristics as twin financial crises. Externally, it is a “capital-account crisis” (Yoshitomi 1998) driven by excessive net private capital inflows relative to underlying current-account deficits, and further worsened by their composition domina ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... uation of the real exchange rate is more necessary for a balance-ofpayments improvement when the conditions for a smooth working of the real balance effect are unfavorable. Can the process of price adjustment differ depending on the way the exchange rate is managed? The answer would be positive if o ...
... uation of the real exchange rate is more necessary for a balance-ofpayments improvement when the conditions for a smooth working of the real balance effect are unfavorable. Can the process of price adjustment differ depending on the way the exchange rate is managed? The answer would be positive if o ...
exchange rate volatility and trade
... more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustment in response to external shocks and, hence, reduces the need to raise protective tariff barrie ...
... more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustment in response to external shocks and, hence, reduces the need to raise protective tariff barrie ...
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... and the empirical evidence. In order to separate the "is" from the "ought", as David Hume would have said. This is particularly important to avoid ill-designed policy responses by frustrated countries such as trade protectionism - based on (more or less justified) accusations of beggar-thy-neighbour ...
... and the empirical evidence. In order to separate the "is" from the "ought", as David Hume would have said. This is particularly important to avoid ill-designed policy responses by frustrated countries such as trade protectionism - based on (more or less justified) accusations of beggar-thy-neighbour ...
The International Financial System: Crises and Reforms
... to perform as the engine of world stability and growth.6 After March 1999, things began to go right as the expected Brazilian recession failed to materialize, and growth resumed. At that point the pall that had been hanging over the emerging markets and the concerns that had beset me since October 1 ...
... to perform as the engine of world stability and growth.6 After March 1999, things began to go right as the expected Brazilian recession failed to materialize, and growth resumed. At that point the pall that had been hanging over the emerging markets and the concerns that had beset me since October 1 ...
Tesis de Maestría en Economía Internacional
... expenditure are weighted baskets of traded (PT) and non-traded (PN) goods. If the weighting of these two elements were the same, then a variation in the real exchange rate (q) -measured as the relation between traded and non-traded goods- would not cause any variation in the relative structure of th ...
... expenditure are weighted baskets of traded (PT) and non-traded (PN) goods. If the weighting of these two elements were the same, then a variation in the real exchange rate (q) -measured as the relation between traded and non-traded goods- would not cause any variation in the relative structure of th ...
Twenty-Five Years Later: Macroeconomic Aspects of Transition
... both cases, the determination to hold the line is crucial. This is why intermediate regimes are often adopted, including pegs that are often changed or managed floating. The choice is well known but always challenging. As they started with inexistent exchange markets, transition countries could not ...
... both cases, the determination to hold the line is crucial. This is why intermediate regimes are often adopted, including pegs that are often changed or managed floating. The choice is well known but always challenging. As they started with inexistent exchange markets, transition countries could not ...
Sources of Inflation in Developing Countries: Abstract
... choices taken by the central bank) or from other sources (i.e., financial inflows linked to capital, external debt, or transfers which enter the domestic money supply). For some African countries, the nominal exchange rate and imported ...
... choices taken by the central bank) or from other sources (i.e., financial inflows linked to capital, external debt, or transfers which enter the domestic money supply). For some African countries, the nominal exchange rate and imported ...
the eurozone and political economic institutions
... imply an appreciated currency or at any rate no devaluation---a win-win situation for public sector employees. The consequence is a strong commitment by governments to tight rule-based fiscal policy as well as minimizing public sector deficits. Thus, export-oriented CMEs, with powerful companies, un ...
... imply an appreciated currency or at any rate no devaluation---a win-win situation for public sector employees. The consequence is a strong commitment by governments to tight rule-based fiscal policy as well as minimizing public sector deficits. Thus, export-oriented CMEs, with powerful companies, un ...
Fertility and the Real Exchange Rate
... account for a number of other reasons why exchange rates adjust, including deviations from Purchasing Power Parity, the Balassa-Samuelson effect, the effects of trade liberalization, government spending, net foreign assets, and so on. Yet we still find that a 1-point decline in the fertility rate is ...
... account for a number of other reasons why exchange rates adjust, including deviations from Purchasing Power Parity, the Balassa-Samuelson effect, the effects of trade liberalization, government spending, net foreign assets, and so on. Yet we still find that a 1-point decline in the fertility rate is ...
The Determinants of Pakistan`s Trade Balance
... of the price elasticities (a measure of how much demand changes in response to a price change) of domestic and foreign demand for imports is larger than 1. Devaluation always improves the balance of payments if this condition is satisfied—although it is not a necessary condition of such improvement. ...
... of the price elasticities (a measure of how much demand changes in response to a price change) of domestic and foreign demand for imports is larger than 1. Devaluation always improves the balance of payments if this condition is satisfied—although it is not a necessary condition of such improvement. ...
Forecasting Global Commodity Prices Using South
... 1/3 of the 58 countries that he researches appear to have tangibly interlinked currencies and commodity exports. They state that part of the reason behind their limited findings could be ...
... 1/3 of the 58 countries that he researches appear to have tangibly interlinked currencies and commodity exports. They state that part of the reason behind their limited findings could be ...
A Sentiment-based Explanation of the Forward Premium Puzzle*
... when risk aversion is greater than the inverse of IES, the second effect dominates and high domestic sentiment predicts an appreciation of the home currency from the econometrician’s point of view. All together, when domestic sentiment is relatively high, the home interest rate is pushed up, and at ...
... when risk aversion is greater than the inverse of IES, the second effect dominates and high domestic sentiment predicts an appreciation of the home currency from the econometrician’s point of view. All together, when domestic sentiment is relatively high, the home interest rate is pushed up, and at ...
The Political Economy of Monetary Institutions
... Over the past thirty years, countries have pursued a variety of monetary arrangements and commitments. These experiments involve two distinct types of monetary institutions: central banks and exchange-rate regimes. Central banks are the bureaucratic institutions charged with managing the supply of c ...
... Over the past thirty years, countries have pursued a variety of monetary arrangements and commitments. These experiments involve two distinct types of monetary institutions: central banks and exchange-rate regimes. Central banks are the bureaucratic institutions charged with managing the supply of c ...
Fixing Argentina Executive Summary by Kurt Schuler No. 445
... Overvaluation. The peso was not persistently overvalued. There are three senses in which a currency can be overvalued. In the most precise and easily observed sense, a pegged or allegedly fixed exchange rate is overvalued if, at that rate, demand to sell the currency exceeds the willingness of the c ...
... Overvaluation. The peso was not persistently overvalued. There are three senses in which a currency can be overvalued. In the most precise and easily observed sense, a pegged or allegedly fixed exchange rate is overvalued if, at that rate, demand to sell the currency exceeds the willingness of the c ...
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... chiefly by restraining demand, will be costly, especially in Sub-Saharan Africa. The IMF has traditionally viewed the financial difficulties of economies requiring adjustment as problems originating from high demand, with a relatively stable supply. Only recently has the IMF begun to supplement its ...
... chiefly by restraining demand, will be costly, especially in Sub-Saharan Africa. The IMF has traditionally viewed the financial difficulties of economies requiring adjustment as problems originating from high demand, with a relatively stable supply. Only recently has the IMF begun to supplement its ...