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SB-FRS 29 Financial Reporting in Hyperinflationary Economies
SB-FRS 29 Financial Reporting in Hyperinflationary Economies

... At the beginning of the first period of application of this Standard, the components of owners’ equity, except retained earnings and any revaluation surplus, are restated by applying a general price index from the dates the components were contributed or otherwise arose. Any revaluation surplus that ...
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... production and the receipts from sales, firms often face liquidity constraints and have to finance their working capital externally. As surveyed by Manova (2010), the recent literature on trade and finance has focused on the role of domestic financial market frictions and stressed the importance of ...
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... establishment of reserve requirements for banks, (2) buying and selling U.S. government securities and other financial assets in the open market, (3) the volume of loans extended to banks and other institutions, and (4) the interest rate it pays banks on funds held as reserves. We now turn to the ex ...
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

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PDF

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... given levels of domestic prices and costs that it is impossible or undesirable to alter and trade restriction policies that it is not wished to alter, will balance international payments without any significant net inward or outward movement of monetary gold and Central Bank or Government agency hol ...
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This PDF is a selection from an out-of-print volume from the... of Economic Research

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... evade the adverse effects of volatility in oil prices. Oil importing countries like Indonesia must make efforts to reduce dependency on oil by going for alternative sources of energy. Due to its influence on other macroeconomic variables like exchange rate, countries must predict its movements and r ...
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... pose. Moreover, they are only as broad as the alternatives they explore. On all these scores, these results are problematic. First, they do not simulate the impact of inflation targeting relative to other possible policy regimes, such as targeting the real exchange rate as discussed below. Second, t ...
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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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