An Analysis of Exchange Rate Volatility and
... volume. Similarly, for an economy with imperfectly tradable good, shocks to risks associated with output results in increased exchange rate volatility which increases the projected trade volume as economic agents respond by trading more given the uncertainty. Also, if the degree of segmentation betw ...
... volume. Similarly, for an economy with imperfectly tradable good, shocks to risks associated with output results in increased exchange rate volatility which increases the projected trade volume as economic agents respond by trading more given the uncertainty. Also, if the degree of segmentation betw ...
Money and the Rule of Law in Ecuador
... a matter of property rights. If a government is in possession of a devaluation option, those who own money issued by the government face the prospect of having their property rights confiscated in an arbitrary, ad hoc manner via devaluations. Accordingly, governments that fail to protect the value o ...
... a matter of property rights. If a government is in possession of a devaluation option, those who own money issued by the government face the prospect of having their property rights confiscated in an arbitrary, ad hoc manner via devaluations. Accordingly, governments that fail to protect the value o ...
Slide 1
... Council members from various kinds of pressure, precisely determines the conditions for the appointment and removal from office, and guards against the conflict of interest Financial: revenues and expenditures of the CNB are solely determined by the nature of the monetary and exchange rate policie ...
... Council members from various kinds of pressure, precisely determines the conditions for the appointment and removal from office, and guards against the conflict of interest Financial: revenues and expenditures of the CNB are solely determined by the nature of the monetary and exchange rate policie ...
Implementation of Monetary Policy in a Regime with Zero Reserve
... currency, and the settings of policy instruments should be varied in accordance with this objective. This paper focusses on the link between the first two concepts. It is concerned with the technical question of how the central bank, using market-oriented instruments only, might achieve the level of ...
... currency, and the settings of policy instruments should be varied in accordance with this objective. This paper focusses on the link between the first two concepts. It is concerned with the technical question of how the central bank, using market-oriented instruments only, might achieve the level of ...
The balance of payments constraint as an explanation of
... because of an ultimate capacity ceiling. But Japan still grew considerably faster than other countries because demand was unconstrained and induced its own supply of factors of production. For countries which have moved into deficit over the period, the estimate of their balance of payments equilibr ...
... because of an ultimate capacity ceiling. But Japan still grew considerably faster than other countries because demand was unconstrained and induced its own supply of factors of production. For countries which have moved into deficit over the period, the estimate of their balance of payments equilibr ...
70013029I_en.pdf
... in the level of activity of a number of economies have heightened the debate on how major macroeconomic fluctuations are generated and spread. Although it is acknowledged that much can be learned from the study of specific cases, in the literature decisions are often presented as though the agents a ...
... in the level of activity of a number of economies have heightened the debate on how major macroeconomic fluctuations are generated and spread. Although it is acknowledged that much can be learned from the study of specific cases, in the literature decisions are often presented as though the agents a ...
Gold, the renminbi and the multi
... the vacuum created by the evident failings of the dollar and the euro, and the not-yetrequited ambitions of the renminbi. Much needs to be done, of course, to prepare the Chinese currency for reserve status. This could take years, and there could be setbacks. The danger of perturbations along the wa ...
... the vacuum created by the evident failings of the dollar and the euro, and the not-yetrequited ambitions of the renminbi. Much needs to be done, of course, to prepare the Chinese currency for reserve status. This could take years, and there could be setbacks. The danger of perturbations along the wa ...
Vehicle Currency Use in International Trade
... Donnenfeld and Haug (2002, 2000) look at the role of exchange rate volatility in driving the invoicing decision for Canadian trade transactions. They conclude that a higher volatility makes LCP more attractive, or VCP provided that goods are not too substitutable. These conclusions are in contrast t ...
... Donnenfeld and Haug (2002, 2000) look at the role of exchange rate volatility in driving the invoicing decision for Canadian trade transactions. They conclude that a higher volatility makes LCP more attractive, or VCP provided that goods are not too substitutable. These conclusions are in contrast t ...
Tight Money, Real Interest Rates, and Inflation in Sub
... hypothesis seems attractive. It runs into problems, however, when confronted with the large, erratic fluctuations of the real interest rate seen in different tight-money episodes. Maybe the real interest rate in Kenya fell sharply between July and November of 1993 because the public judged the gover ...
... hypothesis seems attractive. It runs into problems, however, when confronted with the large, erratic fluctuations of the real interest rate seen in different tight-money episodes. Maybe the real interest rate in Kenya fell sharply between July and November of 1993 because the public judged the gover ...
Monetary and Fiscal Operations in the People`s Republic of China
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
Monetary Policy and Global Banking
... taking differences between funding and investment currency into consideration reveals a more nuanced effect on lending in domestic and foreign markets due to the effects of global banks’ capital movement on the FX market. We contribute to the emerging literature on the funding currency effects. As i ...
... taking differences between funding and investment currency into consideration reveals a more nuanced effect on lending in domestic and foreign markets due to the effects of global banks’ capital movement on the FX market. We contribute to the emerging literature on the funding currency effects. As i ...
Current account reversals and currency crises: empirical
... triggers large and persistent reductions in current account deficits? Second, what triggers sharp exchange rate depreciations (currency crises)? Third, what are the consequences of these events for output and consumption? Fourth, is there a link between current account reversals and currency crises? ...
... triggers large and persistent reductions in current account deficits? Second, what triggers sharp exchange rate depreciations (currency crises)? Third, what are the consequences of these events for output and consumption? Fourth, is there a link between current account reversals and currency crises? ...
Contemporary exchange rate regimes: floating, fixed and hybrid
... The overall lesson of our analysis is that the trilemma makes sense as a guiding policy framework… Absent capital controls, countries choosing to peg lose considerable monetary independence. At the same time, nonpegs appear to have a reasonable amount of autonomy even when there are no capital contr ...
... The overall lesson of our analysis is that the trilemma makes sense as a guiding policy framework… Absent capital controls, countries choosing to peg lose considerable monetary independence. At the same time, nonpegs appear to have a reasonable amount of autonomy even when there are no capital contr ...
Interest Rates and Inflation - Federal Reserve Bank of Minneapolis
... to 70s and the 80s, or why Germany has been a low inflation country, relative to Mexico. For these questions, the really important ones from a welfare viewpoint, one needs to rely on some explicit version of the quantity theory of money. To be useful in thinking about the role of interest rates and ...
... to 70s and the 80s, or why Germany has been a low inflation country, relative to Mexico. For these questions, the really important ones from a welfare viewpoint, one needs to rely on some explicit version of the quantity theory of money. To be useful in thinking about the role of interest rates and ...
CATO HANDBOOK CONGRESS FOR
... If the Fed is to focus solely on maintaining the purchasing power of the dollar, then it cannot also use monetary policy to peg the foreign exchange, or external, value of the dollar. The dollar must be free to float without exchange market intervention. Halting such intervention requires that Congr ...
... If the Fed is to focus solely on maintaining the purchasing power of the dollar, then it cannot also use monetary policy to peg the foreign exchange, or external, value of the dollar. The dollar must be free to float without exchange market intervention. Halting such intervention requires that Congr ...
Modelling and Forecasting the Indian Re/US Dollar Exchange Rate
... The exchange rate is a key financial variable that affects decisions made by foreign exchange investors, exporters, importers, bankers, businesses, financial institutions, policymakers and tourists in the developed as well as developing world. Exchange rate fluctuations affect the value of internati ...
... The exchange rate is a key financial variable that affects decisions made by foreign exchange investors, exporters, importers, bankers, businesses, financial institutions, policymakers and tourists in the developed as well as developing world. Exchange rate fluctuations affect the value of internati ...
What Will Happen When Foreigners Stop Lending to the United
... As the real exchange rate falls, fewer U.S. consumption baskets trade for one Chinese consumption basket, and the dollar appreciates. Between 1992 and 2002, the real exchange rate between the U.S. dollar and the weighted sum of the currencies of its trading partners fell from 100 to 78.2. This means ...
... As the real exchange rate falls, fewer U.S. consumption baskets trade for one Chinese consumption basket, and the dollar appreciates. Between 1992 and 2002, the real exchange rate between the U.S. dollar and the weighted sum of the currencies of its trading partners fell from 100 to 78.2. This means ...
It`s About Demand, not Competitiveness
... level. Indeed, all crisis countries are found to have converted in 1999 their currencies into euros at an undervalued rate, with the opposite situation for Germany, and, to a much smaller extent, Austria. Crucially, the figure shows that by 2012 the REERs of all member countries are well within one ...
... level. Indeed, all crisis countries are found to have converted in 1999 their currencies into euros at an undervalued rate, with the opposite situation for Germany, and, to a much smaller extent, Austria. Crucially, the figure shows that by 2012 the REERs of all member countries are well within one ...
How Can Commodity Producers Make Fiscal & Monetary Policy
... Better response to trade shocks: • If the $ price of imported commodity goes up, CPI target says to tighten monetary policy enough to appreciate the currency. – Wrong response. (E.g., oil-importers in 2007-08.) – PPT does not have this flaw . ...
... Better response to trade shocks: • If the $ price of imported commodity goes up, CPI target says to tighten monetary policy enough to appreciate the currency. – Wrong response. (E.g., oil-importers in 2007-08.) – PPT does not have this flaw . ...
Document
... Which important condition is violated in any financial bubble? Give several examples. ...
... Which important condition is violated in any financial bubble? Give several examples. ...
Download Dissertation
... turnover around $4 trillion.1 In comparison the US bond market turns over about $1 trillion each day and the global on-exchange equity market turnover is around $250 billion, approximately half of which is in the US.2 Because of the highly liquid nature of the currency market any apparent pricing an ...
... turnover around $4 trillion.1 In comparison the US bond market turns over about $1 trillion each day and the global on-exchange equity market turnover is around $250 billion, approximately half of which is in the US.2 Because of the highly liquid nature of the currency market any apparent pricing an ...
NBER WORKING PAPER SERIES INTERNATIONAL BORROWING, CAPITAL CONTROLS AND THE EXCHANGE RATE:
... Prior to the debt crisis, most of Chile’s external debt was private (about 60%). Following the crisis, and in order to successfully renegotiate external debt, private debt received public guarantees. In addition, most of new foreign borrowing was done by the public sector. This caused a large drop i ...
... Prior to the debt crisis, most of Chile’s external debt was private (about 60%). Following the crisis, and in order to successfully renegotiate external debt, private debt received public guarantees. In addition, most of new foreign borrowing was done by the public sector. This caused a large drop i ...
$doc.title
... expansions in bank credit, predominantly in Spain and Ireland. Sustained increases in demand caused inflationary pressure, which led to both wage and price increases in the booming euro area economies and in turn contributed to an eventual decline in competitiveness. It is clear that a ‘one size fit ...
... expansions in bank credit, predominantly in Spain and Ireland. Sustained increases in demand caused inflationary pressure, which led to both wage and price increases in the booming euro area economies and in turn contributed to an eventual decline in competitiveness. It is clear that a ‘one size fit ...