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Currency internationalisation and exchange rate dynamics in
Currency internationalisation and exchange rate dynamics in

... determination in emerging markets in the context of the recent process of currency internationalisation using Brazil as a case study. It develops an alternative analytical framework for exchange rate determination in emerging markets based on PostKeynesian economic thought. Drawing on several strand ...
The Causes of Inflation in Mongolia
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Currency Boards for Developing Countries
Currency Boards for Developing Countries

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NBER WORKING PAPER SERIES SOURCES OF MACROECONOMIC IMBALANCES A SIMULATION APPROACH
NBER WORKING PAPER SERIES SOURCES OF MACROECONOMIC IMBALANCES A SIMULATION APPROACH

... the United States, usually with some variant of labor-managementgovernment cooperation to overcome structural problems in the U.S. economy. ...
currency boards for developing countries
currency boards for developing countries

... sound currency is one that is stable, credible, and fully convertible. Stability means that current annual inflation is relatively low, usually in single digits. Credibility means that the issuer creates confidence that it will keep future inflation low. Full convertibility means that the currency c ...
The Monetary Policy Decision Process in the Federal Republic of Germany
The Monetary Policy Decision Process in the Federal Republic of Germany

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EmErging CurrEnCy - Societe Generale

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mma research papers - Maldives Monetary Authority

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The Transmission of Monetary Policy in Canada
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... or a specified foreign currency. The domestic quantity of money in the form of currency rises only when people bring to the authority an equally valued amount of reserves, and the domestic quantity of currency falls only when people bring back these notes to exchange for reserves. If the monetary au ...
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The Politics of Monetary Leadership and

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Why Do T-Bill Rates React to Discount Rate Changes?

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NBER WORKING PAPER SERIES MONETARY POLICY AND RATIONAL ASSET PRICE BUBBLES

... dynamics of asset price bubbles. In particular, it makes it possible to assess the consequences of having a central bank use its interest rate policy to counteract asset price bubbles in a systematic way, as has been proposed by a number of authors and commentators.5 The paper’s main results can be ...
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

... Second, based on this diagnosis, these studies write out a prescription that the BOJ should make a commitment to an expansionary monetary policy in the future. Woodford (1999) and Reifschneider and Williams (2000) argue that, even when the current overnight interest rate is close to zero, the long-t ...
Export Dynamics in Large Devaluations January 2014
Export Dynamics in Large Devaluations January 2014

... confererence, BU, ECB-Bank of Canada Workshop on Exchange Rates, New York Fed, NYU, Federal Reserve Board, Paris School of Economics, HEC-Montreal, INSEAD, IMF, ITAM, Ohio State University, Richmond Fed, Stonybrook, UBC, Georgetown, Tsinghua Macro Workshop, Econometric Society Annual meeting, LACEA- ...
No.314 / January 2010 External Imbalances and Fiscal Policy Philip R. Lane
No.314 / January 2010 External Imbalances and Fiscal Policy Philip R. Lane

... be associated with an increase in external debt. For instance, Ganelli (2005) and Kumhof and Laxton (2009) provide models in which households have …nite horizons, such that a debt-…nanced tax cut increases the wealth of currently-alive cohorts, boosting consumption and generating a current account d ...
Greenspan`s Conundrum and the Fed`s Ability to
Greenspan`s Conundrum and the Fed`s Ability to

... it and that the change was due to the aberrant behavior of long-term yields and not to the behavior of the funds rate. I take a different approach. Specifically, I begin by investigating when the change in the relationship occurred. Finding the relationship between the 10-year Treasury yield and the ...
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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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