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Foreign Exchange Market Organization in Selected
Foreign Exchange Market Organization in Selected

... trading in “exotic” currencies, as those of developing economies are known in the market. C. Predominantly Against U.S. Dollars The U.S. dollar is the most traded foreign currency in developing economies.9 It is even the most traded foreign currency in several countries applying for European Union m ...
Monetary Policy and Economic Growth of Nigeria
Monetary Policy and Economic Growth of Nigeria

... channels of transmissions have been broadly examined under the monetarist and Keynesian schools of thought. The monetarist postulates that change in the money supply leads directly to a change in the real magnitude of money. Describing this transmission mechanism, (Friedman and Schwartz. 1963) say a ...
Does exchange rate depreciation have contractionary effects on firm
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... We address the severe data limitations on firms’ foreign currency exposures. The breakdown required by most generally accepted accounting principles (GAAP) ignores some relevant details, such as currency composition, residual maturity and market of issuance. When this information is included in ...
Day-of-the-week Anomaly: An illusion or a Reality? Evidence from
Day-of-the-week Anomaly: An illusion or a Reality? Evidence from

... After the first calendar effect detected by Field (1931), who investigated the pattern of the Dow Jone industrial average from 1915 to 1930, to ascertain whether the conventional Wall Street wisdom was true. For the 717 weekend data he studied, he discovered that Saturday’s prices tend to rise in $. ...
Monetary Policy Alternatives at the Zero Bound: February, 2013 Christopher Hanes
Monetary Policy Alternatives at the Zero Bound: February, 2013 Christopher Hanes

... York exchanges; and interest-paying interbank deposits (Haney, Logan and Gavens 1932; United States Senate 1931 part 1, 1048; Turner 1931). The U.S. and most of its international trading partners were in an international gold standard system. Monetary authorities exchanged currency and central bank ...
56a68c3071b7663b2065966b2f51ef12
56a68c3071b7663b2065966b2f51ef12

... The effect of real income on an exchange rate. British productivity increase 10%, lead to 10% increase in real British national income, if the money supply is not change, the price must decline 10%, eventually, leading to a rise in the value of pounds. A 10% decline in US real income should raise e ...
The Demand for Money in Tanzania
The Demand for Money in Tanzania

... operator,  is the inflation rate,  is the rate of nominal depreciation, and z is a vector of other determinants (Ericsson 1998).1 As alternative scale variables, we consider real GDP and gross national expenditure (GNE); both serve as proxies for the transactions demand for money.2 The two varia ...
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A cash rate system for implementing monetary policy

... and end of the transmission mechanism closer together. Specifically, expectations about future monetary policy acRESERVE BANK OF NEW ZEALAND: Bulletin Vol. 62 No. 1 ...
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The Benefits of Commitment to a Currency Peg
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Prices and Exchange Rates: A Theory of Disconnect
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... consumer import prices (Engel, 2002).1 This empirical regularity is usually interpreted as implying that the effect of nominal exchange rates on quantities traded between countries, the so-called expenditure-switching effect of exchange rates, is negligible: if exchange rate movements do not affect ...
Another View on an Old Inflation
Another View on an Old Inflation

... made by Jones (1953), Duncan-Jones (1990), and others. However, historians have over the last decades consistently suggested -though not in terms of compound annual rates- that prices rose considerably within a much shorter period of time, spanning perhaps the last three quarters of a century or qua ...
mmi14-Urosevic  19106720 en
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... globalization helped improve quality, scope, and efficiency of financial services in Europe and many other regions of the world. At the same time, past two decades witnessed, also, a dramatic increase in frequency, severity and geographic reach of financial crises.2 The recent financial and economic cris ...
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... between buyers and sellers but not within other countries. Australian producers of exports want to be paid in AUD while Japanese buyers of Australian exports pay in Yen. Somehow Yen must be converted into AUD (exchanged for AUD). • The problem is solved through foreign exchange markets (markets in c ...
German Monetary Policy in the Second Half
German Monetary Policy in the Second Half

... 11 The sum of government and private unilateral transfers and capital outflows was $6.8 billion in 1949. The figure fell to around $4 billion in the mid-1950s, but rose again to almost $7 billion in 1957 (U.S. Historical Statistics, Part 2, Series U 1-25, “Balance of International Payments: 1790 to ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
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... adjustments could potentially create a complex balancing act for the Federal Reserve. Even if such a circumstance is remote, it is certainly worth exploring policy options under this kind of worst-case scenario. In this paper, accordingly, we explore the implications of current account imbalances fo ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
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... low and declining. That is, the economy has been on a deflationary trend since 1994, save for a few blips in 1997, and the exchange rate has been volatile. The paper analyses the relationship between real exchange rate movements and the real interest rate differential and their implications for shor ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero
NBER WORKING PAPER SERIES CURRENT ACCOUNT DYNAMICS AND MONETARY POLICY Andrea Ferrero

... adjustments could potentially create a complex balancing act for the Federal Reserve. Even if such a circumstance is remote, it is certainly worth exploring policy options under this kind of worst-case scenario. In this paper, accordingly, we explore the implications of current account imbalances fo ...
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... framework. When one turns to empirically-oriented issues, however, it becomes important to work with a model that reflects more closely the properties of actual economies. Consequently, an open-economy model with slow price level adjustments and inertia in consumption demand is specified in Section ...
Exchange rate regimes in Latin America
Exchange rate regimes in Latin America

... of inflation occurred in a context of rapid growth and robust external accounts- is a clear example of this. However, although a crawling band regime is much more flexible than a currency board, both Chile and Colombia found that it lacked enough flexibility to deal with capital flows and by the lat ...
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS

... securities depend on management intent, which refers to management’s objectives regarding disposition of securities.  This intent rule can result in identical debt securities being separately classified into one or any combination of all three classes of trading, held-to-maturity, and available-for ...
The Gold Standard, the Euro, and the Debt Crisis
The Gold Standard, the Euro, and the Debt Crisis

... exchange rates of the participating countries moved within narrow limits approximating their respective gold points without the support of exchange restrictions, import quotas, or related controls.8 The authorities of the participating countries maintained these fixed prices by being willing to buy ...
Bruna(216)..pdf
Bruna(216)..pdf

... dynamics of the optimal main interest rate is influenced by the instability level of the economy structure and to what extent the central bank’s policy is consistent. The instability of the optimal main interest rate also results from the fact to what extent the inflation cycle, business cycle and r ...
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Fixed exchange-rate system

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold. There are benefits and risks to using a fixed exchange rate. A fixed exchange rate is usually used in order to stabilize the value of a currency by directly fixing its value in a predetermined ratio to a different, more stable or more internationally prevalent currency (or currencies), to which the value is pegged. In doing so, the exchange rate between the currency and its peg does not change based on market conditions, the way floating currencies will do. This makes trade and investments between the two currency areas easier and more predictable, and is especially useful for small economies in which external trade forms a large part of their GDP.A fixed exchange-rate system can also be used as a means to control the behavior of a currency, such as by limiting rates of inflation. However, in doing so, the pegged currency is then controlled by its reference value. As such, when the reference value rises or falls, it then follows that the value(s) of any currencies pegged to it will also rise and fall in relation to other currencies and commodities with which the pegged currency can be traded. In other words, a pegged currency is dependent on its reference value to dictate how its current worth is defined at any given time. In addition, according to the Mundell–Fleming model, with perfect capital mobility, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.In the 21st century, the currencies associated with large economies typically do not fix or peg exchange rates to other currencies. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
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