• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
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 ...
Sources of Real Exchange Rate Fluctuations in Transition Economies
Sources of Real Exchange Rate Fluctuations in Transition Economies

... 1992 to 3.1% in 1993 (Table 2), a level around which it has fluctuated since, monetary policy was relatively expansionary. While real interest rates remained positive, money supply and credit growth consistently outpaced the targets set by the National Bank of Poland (NBP). The zloty’s peg was aband ...
Currency Misalignments and Optimal Monetary Policy: A
Currency Misalignments and Optimal Monetary Policy: A

vsi10 roc McCauley  13312202 en
vsi10 roc McCauley 13312202 en

... of the Euromarkets in the 1950s and 1960s, this paper identifies and analyses the challenges posed to monetary and financial stability by offshore markets of domestic currencies. It gives particular attention to the policy measures that were considered or used by policymakers in major-currency econo ...
Economic Policy in Dollarized Economies with Special Review of
Economic Policy in Dollarized Economies with Special Review of

... 3. Economic policy in dollarized economies .....................................................................14 3.1. The Benefits of Dollarization...................................................................................16 3.2 The Weaknesses of Dollarization ............................. ...
money chpt 16 - Cobb Learning
money chpt 16 - Cobb Learning

... sofa cushion find a $50 bill (and a half-eaten taco). You deposit the bill in your checking account. The Fed’s reserve requirement is 20% of deposits. A. What is the maximum amount that the money supply could increase? B. What is the minimum amount that the money supply could increase? ...
Barter System Signals Harmony in Causality
Barter System Signals Harmony in Causality

... true? Is money represented by the goods and thus acquires their image? However money is not goods at all. This has to be analyzed and hence confirmed or refuted. Sometimes money is perceived as power, energy, trust, value, wealth and so many things. From this point, its functional role is least cont ...
The Price Theory of Money, Prospero`s Liquidity Trap, and Sudden
The Price Theory of Money, Prospero`s Liquidity Trap, and Sudden

... prices in terms of euro.  Under those circumstances, and unless fiscal deficits become rampant,  the euro could still hold its own as a reserve currency even though the EU economy dives into  deep recession.4  On the other hand, the ever‐present candidate for making a stellar comeback,  i.e., gold,  ...
Economics Explorer #1 - Monetary Authority of Singapore
Economics Explorer #1 - Monetary Authority of Singapore

... and services are not distorted by inflation, and can serve as clearer signals and guides so as to allocate resources more efficiently. In addition, such an environment is believed to encourage saving and investment as it prevents the value of assets from being eroded by unexpected inflation. As the ...
Part 5 Clearing and settlement facilities
Part 5 Clearing and settlement facilities

... (2) For paragraph 12BAB (18) (i) of the Act, the conduct of: (a) the Stock Exchange of Newcastle Limited, or an agent of that body; or (b) a participant of the Stock Exchange of Newcastle Limited, or an agent of the participant; or (c) Bendigo Stock Exchange Limited, or an agent of that body; or (d) ...
Money Demand and the Equilibrium Interest Rate
Money Demand and the Equilibrium Interest Rate

... Firms and governments borrow funds by issuing bonds, and they pay interest to the lenders that purchase the bonds. Bonds are issued with a face value, typically in denominations of $1,000. They come with a maturity date—or the date when the face value of the bond is paid out, and they offer a fixed ...
DEGREE OF OPENNESS,1905-2000
DEGREE OF OPENNESS,1905-2000

... twentieth century was closely related to what happened with its foreign trade. The large cycles in the terms of trade and in the volume of exports that were observed in the country coincided with the cycles in economic activity and with the most important turning points in the structure of domestic ...
Is there a trade-off between exchange rate risk
Is there a trade-off between exchange rate risk

... direction. The analysis under this model also helps to discern the relevant variables at play in these empirical findings. The paper has five sections. In the first two, the proposed model is presented and resolved. The third and fourth sections analyse the behaviour of exchange and interest rate ri ...
Domestic securities markets and monetary policy in Latin America
Domestic securities markets and monetary policy in Latin America

... Structural change in the banking sector and the interest rate channel Specific structural changes in the banking sector, such as deregulation or consolidation, can also affect the interest rate channel. Although deregulation can take many forms, it is possible to illustrate its overall impact by con ...
long-run effects of commodity prices on the real exchange rate
long-run effects of commodity prices on the real exchange rate

... exchange rate appreciation and an increase in their returns on production relative to other tradable goods. Therefore, there are no incentives to invest in other tradable goods, which results in a highly commodity-specialized economy. Some empirical studies, however, suggest that such a negative lin ...
international financial crises
international financial crises

... it was the Vatican, and probably Muenchner Rueck also. Where would we look for the difference? The side issues of excess capacity in the world economy, low commodity prices – all of that is not going to give us a world financial crisis. Where should we look? The answer surely is that capital movemen ...
Representation and Economic Policy Ground Rules
Representation and Economic Policy Ground Rules

... tightening (or I should perhaps say the “normalisation” of monetary conditions) at the end of 2005. In addition to the staff projections that were pointing to an inflation rate above the ECB’s definition of price stability over the whole forecasting horizon, the fast rate of growth of monetary and c ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

... price.5 The world real rate of interest, which is determined by conditions in the rest of the world, is thus virtually independent of what goes on in the domestic economy. A positive anticipated rate of domestic inflation would lead to a domestic money rate of interest in excess of the world real ra ...
DP2006/07 How costly is exchange rate stabilisation for an
DP2006/07 How costly is exchange rate stabilisation for an

... Most central banks within the OECD currently have as their main target of policy a low inflation rate, with other possible policy objectives relegated to second place. In most of the theoretical literature regarding central bank behaviour the two variables that enter a central bank’s loss function a ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
This PDF is a selection from a published volume from... National Bureau of Economic Research

... debt [B/S –  0 (rB/St )e–rtdt]; and (c) an implicit fiscal reform that increases the real value of the nonindexed component of the fiscal surplus [  0 (Xt /S – Xt /St )e–rtdt]. It follows that the only way that the government can satisfy its intertemporal budget constraint is to use monetary polic ...
CH24 Stabilizing the Economy:The Role of the
CH24 Stabilizing the Economy:The Role of the

...  Relate this to the Fed's role in stabilization policy. Show how the demand for money and the supply of money determine equilibrium nominal interest rate. Discuss how the CB uses control of the money supply to influence nominal and real interest rates. ...
Australia`s Medium-run Exchange Rate: A Macroeconomic Balance
Australia`s Medium-run Exchange Rate: A Macroeconomic Balance

... other variables that determine Equation (3).4 WD distinguish four sources of such changes. First, there may be a trend in some components of trade, such as a declining (world) export share. Second, trend rates of GDP growth at home and abroad might differ. This can imply a different rate of change f ...
Maurice Obstfeld Working Paper No. 1230 Alan C. Stockmari 1050
Maurice Obstfeld Working Paper No. 1230 Alan C. Stockmari 1050

... This paper discusses the dynamic behavior of exchange rates, focusing both on the exchange rate's response to exogenous shocks and the relation between exchange—rate movements and movements in important endogenous variables such as prices, interest rates, output, and the current account. Aspects of ...
Contemporary Logistics the Forming of Real-life Exchange Rate Misalignment
Contemporary Logistics the Forming of Real-life Exchange Rate Misalignment

... early years when policies of Reform and opening to the outside world were implemented, the market mechanism began to play a role in the forming process of RMB exchange rate system and its effect became more and more important. 3.1.1 RMB exchange rate going out of balance under the control of dual ex ...
View/Open
View/Open

... important and helpful for the Indian economy as well as other developing countries, which target monetary measures believing that they would simultaneously influence output, price and also exchange rate in the desired direction. However, the economy is not only supply constrained, but also demand co ...
< 1 ... 54 55 56 57 58 59 60 61 62 ... 198 >

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.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report