Monetary Darwinism: The Political Economy of
... only two can be simultaneously realised. For Obstfeld and Taylor the histories of monetary policy and modern capital markets begin in the decades before the First World War. In their analysis the policy trilemma under the gold standard resolved itself by monetary authorities choosing the policies of ...
... only two can be simultaneously realised. For Obstfeld and Taylor the histories of monetary policy and modern capital markets begin in the decades before the First World War. In their analysis the policy trilemma under the gold standard resolved itself by monetary authorities choosing the policies of ...
NBER WORKING PAPER SERIES
... The unique Canadian experiment with a flexible exchange rate sparked extensive research, most of which was published in the 1960s and early 1970s in an era when the Bretton Woods par value system was undergoing severe strains and debates raged about feasible alternatives.9 This earlier literature on ...
... The unique Canadian experiment with a flexible exchange rate sparked extensive research, most of which was published in the 1960s and early 1970s in an era when the Bretton Woods par value system was undergoing severe strains and debates raged about feasible alternatives.9 This earlier literature on ...
Schmidt-del05 1101825 de
... monetary policy shocks. How does a domestic monetary expansion a ect the foreign economy? Does it induce an increase or a decline in foreign production? And is it ‘beggar-thy-neighbour’ or does it raise foreign welfare? In the traditional MundellFleming Model, a monetary expansion at home causes a d ...
... monetary policy shocks. How does a domestic monetary expansion a ect the foreign economy? Does it induce an increase or a decline in foreign production? And is it ‘beggar-thy-neighbour’ or does it raise foreign welfare? In the traditional MundellFleming Model, a monetary expansion at home causes a d ...
(PDF)
... xchange rate fluctuations remain remarkably large, despite the steady decline in the volatility of the trade-weighted dollar since the late 1980s. Yet large fluctuations in the value of the dollar do not translate into similarly large swings in the domestic production of traded goods relative to for ...
... xchange rate fluctuations remain remarkably large, despite the steady decline in the volatility of the trade-weighted dollar since the late 1980s. Yet large fluctuations in the value of the dollar do not translate into similarly large swings in the domestic production of traded goods relative to for ...
AN EMPIRICAL EXAMINATION OF THE STRUCTURAL TURKEY
... (Graph I). Import liberalization was more gradual and cautious due to balance of payment problems. The major change in this context started in 1983 with the removal of quantitative restrictions on a large proportion of import items along with reductions in tariff rates. Changes in the direction of ...
... (Graph I). Import liberalization was more gradual and cautious due to balance of payment problems. The major change in this context started in 1983 with the removal of quantitative restrictions on a large proportion of import items along with reductions in tariff rates. Changes in the direction of ...
Chapter 14
... To provide more liquidity directly to the banking system, the Fed developed a number of new ideas. The first was the Term Auction Facility, in which the Fed auctioned off loans in the market to banks and other eligible depository institutions. The next was a Term Securities Lending Facility that pro ...
... To provide more liquidity directly to the banking system, the Fed developed a number of new ideas. The first was the Term Auction Facility, in which the Fed auctioned off loans in the market to banks and other eligible depository institutions. The next was a Term Securities Lending Facility that pro ...
Description of Investment Instruments and Warning of
... Liquidity refers to the possibility of buying or selling a security or closing out a position at the current market price at any time. The market in a particular security is said to be liquid if an average sell instruction (measured by the usual trading volume) does not cause perceptible price fluct ...
... Liquidity refers to the possibility of buying or selling a security or closing out a position at the current market price at any time. The market in a particular security is said to be liquid if an average sell instruction (measured by the usual trading volume) does not cause perceptible price fluct ...
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... We investigate two variations of the benchmark model designed to increase the persistence of real exchange rates. One variation is to replace the model’s complete international asset markets with incomplete markets that allow for trade only in an uncontingent nominal bond. The idea is that with inc ...
... We investigate two variations of the benchmark model designed to increase the persistence of real exchange rates. One variation is to replace the model’s complete international asset markets with incomplete markets that allow for trade only in an uncontingent nominal bond. The idea is that with inc ...
A Long-Term Strategy and a Short
... RMB in the inter-bank foreign exchange market was allowed to float within a band of ±0.3 percent around the central parity published by the People’s Bank of China (PBoC), while the trading prices of non-U.S. dollar currencies against the RMB were permitted to move within a band of ±1.5 percent. Why ...
... RMB in the inter-bank foreign exchange market was allowed to float within a band of ±0.3 percent around the central parity published by the People’s Bank of China (PBoC), while the trading prices of non-U.S. dollar currencies against the RMB were permitted to move within a band of ±1.5 percent. Why ...
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... that being charged elsewhere. A firm setting a price always below that set by the other (identically behaving) firms would only gradually drain customers from its competitors. Symmetrically, it is supposed that a firm setting a price always above that set by the others would see an equally gradual eros ...
... that being charged elsewhere. A firm setting a price always below that set by the other (identically behaving) firms would only gradually drain customers from its competitors. Symmetrically, it is supposed that a firm setting a price always above that set by the others would see an equally gradual eros ...
Consequences of the Federal Reserve`s Re
... response to the increased demand. Later, when prices rise and gold flows out, the economy contracts; the demand for bank credit declines; and market rates lead the discount rate to lower levels; bank borrowing and money growth fall. The classical gold standard does not make the interest rate an obvi ...
... response to the increased demand. Later, when prices rise and gold flows out, the economy contracts; the demand for bank credit declines; and market rates lead the discount rate to lower levels; bank borrowing and money growth fall. The classical gold standard does not make the interest rate an obvi ...
Tilburg University Stability of Monetary Unions
... of unions. They show that democratization and economic integration lead to higher number of nations. The latter result is further pursued by Alesina, Spolaore and Wacziarg (1997). They present a model where trade liberalization increases incentives for regions to secede. This conclusion is then supp ...
... of unions. They show that democratization and economic integration lead to higher number of nations. The latter result is further pursued by Alesina, Spolaore and Wacziarg (1997). They present a model where trade liberalization increases incentives for regions to secede. This conclusion is then supp ...
The Portfolio Balance Model∗
... A third alternative is to combine a foreign exchange operation and an open market operation, a sterilized foreign exchange operation. In particular, we may consider the dierence between an expansionary foreign exchange operation expanding the money supply and a restrictive open market operation th ...
... A third alternative is to combine a foreign exchange operation and an open market operation, a sterilized foreign exchange operation. In particular, we may consider the dierence between an expansionary foreign exchange operation expanding the money supply and a restrictive open market operation th ...
NBER WORKING PAPER SERIES CURRENCY MISALIGNMENTS AND OPTIMAL MONETARY POLICY: A REEXAMINATION
... Canadian dollar/U.S. dollar has risen and fallen by more than 35% in the past decade, but inflation rates in these countries have differed by only a percentage point or two per year. Should these exchange rate movements be a concern for policymakers? Would it not be better for policymakers to focus ...
... Canadian dollar/U.S. dollar has risen and fallen by more than 35% in the past decade, but inflation rates in these countries have differed by only a percentage point or two per year. Should these exchange rate movements be a concern for policymakers? Would it not be better for policymakers to focus ...
Interest Rate Surprises and Transmission Mechanism in Turkey: Evidence from
... Another prevalent problem, especially for small open economies, is the “exchange rate puzzle” which indicates a counter intuitive response to unexpected interest rate shocks. In contrast to the prediction of the theories as postulated under the interest parity conditions, the empirical research comm ...
... Another prevalent problem, especially for small open economies, is the “exchange rate puzzle” which indicates a counter intuitive response to unexpected interest rate shocks. In contrast to the prediction of the theories as postulated under the interest parity conditions, the empirical research comm ...
Ch. 11 – Monetary System - Boyne City Public Schools
... When people decide in what forms to hold their wealth, they must balance the liquidity of each possible asset against the asset’s usefulness as a store of value ...
... When people decide in what forms to hold their wealth, they must balance the liquidity of each possible asset against the asset’s usefulness as a store of value ...
Does Internationalizing the RMB Make Sense for China?
... A more tangible concern is the priority given to maintaining stability of economic growth. Zhou’s paper was released shortly after the U.S. central bank’s quantitative easing program, which was perceived by many developing countries as contributing to more instability in global financial markets and ...
... A more tangible concern is the priority given to maintaining stability of economic growth. Zhou’s paper was released shortly after the U.S. central bank’s quantitative easing program, which was perceived by many developing countries as contributing to more instability in global financial markets and ...
O D : C E
... These developments are likely to alter the monetary map of the world dramatically in the 21st century. They may reflect a more fundamental aspect of globalization, implying a gradual movement toward a smaller number of key currencies, such as the dollar, euro, and yen (Mundell 1999). In countries wi ...
... These developments are likely to alter the monetary map of the world dramatically in the 21st century. They may reflect a more fundamental aspect of globalization, implying a gradual movement toward a smaller number of key currencies, such as the dollar, euro, and yen (Mundell 1999). In countries wi ...
Definition
... • 1994: Foreign financial institutions compete on equal basis with Argentine institutions • February 1999: Propose official dollarization ...
... • 1994: Foreign financial institutions compete on equal basis with Argentine institutions • February 1999: Propose official dollarization ...
macroeconomic and growth policies
... well-being in an equitable and sustainable manner. Much of the recent discussion of economic policy has focused on intermediate variables, such as price stability or the balance of payments. Intermediate variables, however, are not important in their own right. Their importance derives largely from ...
... well-being in an equitable and sustainable manner. Much of the recent discussion of economic policy has focused on intermediate variables, such as price stability or the balance of payments. Intermediate variables, however, are not important in their own right. Their importance derives largely from ...
Research Division Federal Reserve Bank of St. Louis Working Paper Series
... exchange even when the cost of holding it is very high, as during hyperinflations. 4 This observation has important implications for the portfolio-balance theory of money. The portfolio-balance theory of money assumes that individuals efficiently allocate their assets between bonds and money. In th ...
... exchange even when the cost of holding it is very high, as during hyperinflations. 4 This observation has important implications for the portfolio-balance theory of money. The portfolio-balance theory of money assumes that individuals efficiently allocate their assets between bonds and money. In th ...
Euro, Dollar, Yuan Uncertainties - Scenarios on the Future
... exchange rate regimes and the supply of reserves. It creates an environment where international currencies facilitate the exchange of goods and services, the accumulation of savings, price setting and calibration as well as the denomination of balance sheets for both public and private actors. It al ...
... exchange rate regimes and the supply of reserves. It creates an environment where international currencies facilitate the exchange of goods and services, the accumulation of savings, price setting and calibration as well as the denomination of balance sheets for both public and private actors. It al ...
lecture4_2008old
... When the first depositor arrived with $100 in cash, the money supply included that $100 of currency in the depositor's wallet After the deposit, the currency was in the bank vault and not circulating (so out of the money supply) However, demand deposits increased by $100, so the money supply w ...
... When the first depositor arrived with $100 in cash, the money supply included that $100 of currency in the depositor's wallet After the deposit, the currency was in the bank vault and not circulating (so out of the money supply) However, demand deposits increased by $100, so the money supply w ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... environment where current imbalances do exert pressures on the domestic 1. To be clear, we model differences in consumption/saving propensities as preferences shocks that are meant to be a catch-all for factors that could cause differences in national savings rates such as fiscal policies, demographic ...
... environment where current imbalances do exert pressures on the domestic 1. To be clear, we model differences in consumption/saving propensities as preferences shocks that are meant to be a catch-all for factors that could cause differences in national savings rates such as fiscal policies, demographic ...