The Open Economy
... exchange market with little or no intervention by central banks; Managed exchange rate – e is managed by central banks according to some rule; Fixed exchange rate – central bank(s) set a price and enter the market to support the price as required; Currency Board/Common currency - strong types ...
... exchange market with little or no intervention by central banks; Managed exchange rate – e is managed by central banks according to some rule; Fixed exchange rate – central bank(s) set a price and enter the market to support the price as required; Currency Board/Common currency - strong types ...
anchoring to the euro (and grouped together)? the case of african
... For a survey of the OCA literature see, inter alia, Mongelli (2005). ...
... For a survey of the OCA literature see, inter alia, Mongelli (2005). ...
Inflation Targeting and Business Cycle - Berkeley-Haas
... that a positive domestic real shock raises the domestic interest rate, attracting foreign capital and appreciating the exchange rate. Similarly, with fixed rates, business cycles cause by real shocks of large countries may or may not be transmitted abroad. Devereux and Engel (1999, 2003) use dynamic ...
... that a positive domestic real shock raises the domestic interest rate, attracting foreign capital and appreciating the exchange rate. Similarly, with fixed rates, business cycles cause by real shocks of large countries may or may not be transmitted abroad. Devereux and Engel (1999, 2003) use dynamic ...
Dollarization in Tanzania
... deposits, local currency deposits and money supply, broadly defined. Measures commonly used include foreign currency deposits as a ratio of local currency deposits (FCD/LCD), the ratio of foreign currency deposits to total deposits (FCD/(FCD+LCD), the ratio of foreign currency to broad money supply ...
... deposits, local currency deposits and money supply, broadly defined. Measures commonly used include foreign currency deposits as a ratio of local currency deposits (FCD/LCD), the ratio of foreign currency deposits to total deposits (FCD/(FCD+LCD), the ratio of foreign currency to broad money supply ...
STABILIZING THE DOLLAR IN A GLOBAL ECONOMY Marc A. Miles
... cannot find as much financing as they desire, so they turn to the Eurodollar market to borrow more for their projects. With higher loan demand, Eurobanks offer slightly higher interest rates to attract more deposits to finance the loans. This expansion does not imply a corresponding decline in domes ...
... cannot find as much financing as they desire, so they turn to the Eurodollar market to borrow more for their projects. With higher loan demand, Eurobanks offer slightly higher interest rates to attract more deposits to finance the loans. This expansion does not imply a corresponding decline in domes ...
PDF
... Copyright 2002 by MinKyoung Kim and Won W. Koo. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. ...
... Copyright 2002 by MinKyoung Kim and Won W. Koo. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. ...
- International Growth Centre
... deposits, local currency deposits and money supply, broadly defined. Measures commonly used include foreign currency deposits as a ratio of local currency deposits (FCD/LCD), the ratio of foreign currency deposits to total deposits (FCD/(FCD+LCD), the ratio of foreign currency to broad money supply ...
... deposits, local currency deposits and money supply, broadly defined. Measures commonly used include foreign currency deposits as a ratio of local currency deposits (FCD/LCD), the ratio of foreign currency deposits to total deposits (FCD/(FCD+LCD), the ratio of foreign currency to broad money supply ...
What Explains Movements in the Peso/Dollar
... difference of the 90-day Brazilian and Chilean government bill yields. This serves as a proxy for alternative investment opportunities for international investors in the region (or among emerging markets), or carry trade opportunities using peso as the funding currency. In both cases, a higher Brazi ...
... difference of the 90-day Brazilian and Chilean government bill yields. This serves as a proxy for alternative investment opportunities for international investors in the region (or among emerging markets), or carry trade opportunities using peso as the funding currency. In both cases, a higher Brazi ...
Requirements for Using Interest Rates as an Operating Target for
... Following acceptance by Tunisia of the obligations of Article VIII, financial reforms aimed at paving the way for the development of financial markets. In 1994, the authorities introduced a spot interbank foreign exchange market. The legal framework for the banking and securities sectors was strengt ...
... Following acceptance by Tunisia of the obligations of Article VIII, financial reforms aimed at paving the way for the development of financial markets. In 1994, the authorities introduced a spot interbank foreign exchange market. The legal framework for the banking and securities sectors was strengt ...
Financial Markets
... Clearly some currency was held by firms rather than by households. And some was held by those involved in the underground economy or in illegal activities. However, this leaves 66% of the total unaccounted for. The balance of which is abroad and held by foreigners. The fact that foreigners hold such ...
... Clearly some currency was held by firms rather than by households. And some was held by those involved in the underground economy or in illegal activities. However, this leaves 66% of the total unaccounted for. The balance of which is abroad and held by foreigners. The fact that foreigners hold such ...
Document
... Clearly some currency was held by firms rather than by households. And some was held by those involved in the underground economy or in illegal activities. However, this leaves 66% of the total unaccounted for. The balance of which is abroad and held by foreigners. The fact that foreigners hold such ...
... Clearly some currency was held by firms rather than by households. And some was held by those involved in the underground economy or in illegal activities. However, this leaves 66% of the total unaccounted for. The balance of which is abroad and held by foreigners. The fact that foreigners hold such ...
Exchange Rates and Fundamentals: Closing a Two
... Few equilibrium models for nominal exchange rates systematically beat a naive randomwalk counterpart in terms of out-of-sample forecast performance. Since the study of Meese and Rogoff (1983), this robust empirical property of nominal exchange rate fluctuations has stubbornly resisted theoretical chal ...
... Few equilibrium models for nominal exchange rates systematically beat a naive randomwalk counterpart in terms of out-of-sample forecast performance. Since the study of Meese and Rogoff (1983), this robust empirical property of nominal exchange rate fluctuations has stubbornly resisted theoretical chal ...
THE CENTRAL BANK OF THE REPUBLIC OF TURKEY
... Over the years Chilean Cental Bank changed the relative weights it attached to its goals. During 198283, primary aim was to strengthen export competitiveness, to pay the huge short term debt and to keep sustainable current account deficit. So low inflation objective was secondary to the real exchan ...
... Over the years Chilean Cental Bank changed the relative weights it attached to its goals. During 198283, primary aim was to strengthen export competitiveness, to pay the huge short term debt and to keep sustainable current account deficit. So low inflation objective was secondary to the real exchan ...
application of the mundell-fleming model on a small open economy
... of liquidity trap is strongly rejected. Furthemore all liquidity constraints are eliminated, because the country can borrow money from the rest of the world, thus the government deficit, government budget and capital spending by the government would be exogenous. The economy can undergo strong infla ...
... of liquidity trap is strongly rejected. Furthemore all liquidity constraints are eliminated, because the country can borrow money from the rest of the world, thus the government deficit, government budget and capital spending by the government would be exogenous. The economy can undergo strong infla ...
A developing country view of the current global crisis
... rate. The real appreciation reinforces the inflow of capital seeking capital gains by holding domestic assets and, therefore, further fuels the expansion of credit and output growth. The combined effect of the real exchange rate appreciation and economic growth stimulates the demand for imports, whi ...
... rate. The real appreciation reinforces the inflow of capital seeking capital gains by holding domestic assets and, therefore, further fuels the expansion of credit and output growth. The combined effect of the real exchange rate appreciation and economic growth stimulates the demand for imports, whi ...
In this paper we wil first the large increase of foreign exchange
... efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run massive current account surpluses, the main counterpart of which is, at the world level, the US deficit. According to this point of view, the economic benefits of ...
... efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run massive current account surpluses, the main counterpart of which is, at the world level, the US deficit. According to this point of view, the economic benefits of ...
Scenario Review - Mexico
... announce a reserve accumulation program through U.S. dollar put auctions. This mechanism was last introduced in 2010, with a monthly notional volume of $600 million. We don’t expect that volumes would be significantly higher this time. Not a long time ago, Mexican policymakers have expressed concern ...
... announce a reserve accumulation program through U.S. dollar put auctions. This mechanism was last introduced in 2010, with a monthly notional volume of $600 million. We don’t expect that volumes would be significantly higher this time. Not a long time ago, Mexican policymakers have expressed concern ...
Real Exchange Rate Volatility and the Price of Nontradable Goods
... causes a temporary real appreciation of the currency. The literature on sudden stops in emerging economies emphasizes the phenomenon of liability dollarization: debts in emerging economies are generally denominated in units of tradable goods or in hard currencies, but they are partially leveraged on ...
... causes a temporary real appreciation of the currency. The literature on sudden stops in emerging economies emphasizes the phenomenon of liability dollarization: debts in emerging economies are generally denominated in units of tradable goods or in hard currencies, but they are partially leveraged on ...
International Finance and Growth in Developing Countries: What
... Enron) emerge, and most likely always will. Most countries reckon that the advantage of a market-oriented system, even when subject to some political pressures, outweighs the inefficiency and blatant abuses that characterized centralized systems of credit allocation. The hope is that the safeguards ...
... Enron) emerge, and most likely always will. Most countries reckon that the advantage of a market-oriented system, even when subject to some political pressures, outweighs the inefficiency and blatant abuses that characterized centralized systems of credit allocation. The hope is that the safeguards ...
1 Financial Instability, Reserves, and Central Bank Swap Lines in
... has been called, to the demand for international reserves. In previous work, we have shown that international reserve demand can be rationalized by a central bank’s desire to backstop the broad money supply to avert the possibility of an internal/external double drain (a bank run combined with capit ...
... has been called, to the demand for international reserves. In previous work, we have shown that international reserve demand can be rationalized by a central bank’s desire to backstop the broad money supply to avert the possibility of an internal/external double drain (a bank run combined with capit ...
Globalization without global money: the double role of the dollar as
... for supranational stocks. This is evidenced by the foIlowing characteristics of our current international financial system: .The pricing and trading of almost all standard cornmodities, including crude oil, are carriedout in dollars. Standard cornmodities can therefore be called "dollar goods." .Mos ...
... for supranational stocks. This is evidenced by the foIlowing characteristics of our current international financial system: .The pricing and trading of almost all standard cornmodities, including crude oil, are carriedout in dollars. Standard cornmodities can therefore be called "dollar goods." .Mos ...
Towards a Strategy for Economic Growth in Uruguay
... large real depreciation vis a vis the US dollar. But with a highly dollarized financial system and public debt, the depreciation would entail serious solvency problems. However, it reestablished the conditions of profitability for its global goods sector. This story clearly indicates that with respe ...
... large real depreciation vis a vis the US dollar. But with a highly dollarized financial system and public debt, the depreciation would entail serious solvency problems. However, it reestablished the conditions of profitability for its global goods sector. This story clearly indicates that with respe ...
DISINFLATION AND BALANCE OF PAYMENTS IN THE TURKISH ECONOMY Erdem Ba
... Effects of Energy Prices Current Account Balance and the Effect of Energy Prices on Current Account Deficit * (2002 – 2007, ratio to GDP, percent) ...
... Effects of Energy Prices Current Account Balance and the Effect of Energy Prices on Current Account Deficit * (2002 – 2007, ratio to GDP, percent) ...