“New” Views on the Optimum Currency Area Theory: What
... currency, or of several currencies, whose exchange rates are irrevocably pegged. The single currency, or the pegged currencies, can fluctuate only in unison against the rest of the world: • The domain of the OCA is defined by the sovereign countries choosing to adopt a single currency or to irrevoca ...
... currency, or of several currencies, whose exchange rates are irrevocably pegged. The single currency, or the pegged currencies, can fluctuate only in unison against the rest of the world: • The domain of the OCA is defined by the sovereign countries choosing to adopt a single currency or to irrevoca ...
Inflation and Macroeconomic Instability in Madagascar
... The concept of macroeconomic instability is widely used in the policy-oriented literature. However, this concept is almost never really defined, and seems to refer in turn to high inflation, overvalued currency, unstable real exchange rate, balance of payment deficit, or fiscal deficit, etc. Roughly ...
... The concept of macroeconomic instability is widely used in the policy-oriented literature. However, this concept is almost never really defined, and seems to refer in turn to high inflation, overvalued currency, unstable real exchange rate, balance of payment deficit, or fiscal deficit, etc. Roughly ...
Expectations, Real Exchange Rates, and Monetary Policy Michael B. Devereux Charles Engel UBC
... on the foundation that exchange rates are asset prices and that some goods prices adjust more slowly than asset prices. If this is true, it means that exchange rates wear two hats: They are asset prices that determine the relative price of two monies, but they also are important in determining the r ...
... on the foundation that exchange rates are asset prices and that some goods prices adjust more slowly than asset prices. If this is true, it means that exchange rates wear two hats: They are asset prices that determine the relative price of two monies, but they also are important in determining the r ...
Does the Purchasing Power Parity Hold in Emerging
... the real exchange rate using black market rates of this dimension has not been previously undertaken. Thus this study extends the test of PPP into new directions. We use a battery of new heterogeneous panel unit root and cointegration tests which have greater power than the time series tests normal ...
... the real exchange rate using black market rates of this dimension has not been previously undertaken. Thus this study extends the test of PPP into new directions. We use a battery of new heterogeneous panel unit root and cointegration tests which have greater power than the time series tests normal ...
Tradability of Goods and Real Exchange Rate
... the consumption of other more traded goods is more efficiently raised through raising imports. When factors are relatively immobile across sectors, however, this limits the relative increase in comparatively nontraded goods’ production, and tends to increase the domestic (and international) relative ...
... the consumption of other more traded goods is more efficiently raised through raising imports. When factors are relatively immobile across sectors, however, this limits the relative increase in comparatively nontraded goods’ production, and tends to increase the domestic (and international) relative ...
This David Longworth Working Paper No. 535 1050 Massachusetts Avenue
... very sharp growth of external borrowing by Canadians in the 1974—76 period. Our attempt to explain this growth relies in part upon the existence of irrationality in the formation of long—run expectations in the bond market or exchange market or both. Finally, in Section 4 we turn to an analysis of t ...
... very sharp growth of external borrowing by Canadians in the 1974—76 period. Our attempt to explain this growth relies in part upon the existence of irrationality in the formation of long—run expectations in the bond market or exchange market or both. Finally, in Section 4 we turn to an analysis of t ...
The economics of digital currencies
... The key innovation: the distributed ledger The key innovation in this regard is the introduction of a ‘distributed ledger’, which allows a digital currency to be used in a decentralised payment system. Any digital record of currency opens up the possibility that it may be copied and spent more than ...
... The key innovation: the distributed ledger The key innovation in this regard is the introduction of a ‘distributed ledger’, which allows a digital currency to be used in a decentralised payment system. Any digital record of currency opens up the possibility that it may be copied and spent more than ...
The economics of digital currencies
... The key innovation: the distributed ledger The key innovation in this regard is the introduction of a ‘distributed ledger’, which allows a digital currency to be used in a decentralised payment system. Any digital record of currency opens up the possibility that it may be copied and spent more than ...
... The key innovation: the distributed ledger The key innovation in this regard is the introduction of a ‘distributed ledger’, which allows a digital currency to be used in a decentralised payment system. Any digital record of currency opens up the possibility that it may be copied and spent more than ...
Information Asymmetry and Foreign Currency Borrowing by Small
... where informational asymmetries are acute is still lacking (see also the review in Nagy, Jeffrey and Zettelmeyer (2011)). In this paper we aim to fill this gap in the literature by introducing an information asymmetry between banks and firms in a framework that also features a trade-off between the ...
... where informational asymmetries are acute is still lacking (see also the review in Nagy, Jeffrey and Zettelmeyer (2011)). In this paper we aim to fill this gap in the literature by introducing an information asymmetry between banks and firms in a framework that also features a trade-off between the ...
The return of deflation: what can central banks do?
... deflation – a fall in the prices of existing stores of value, either real or financial. Asset price movements are an important part of the transmission mechanism of monetary and fiscal policy. They also transmit other developments and shocks, domestic and foreign. They may even, when asset prices de ...
... deflation – a fall in the prices of existing stores of value, either real or financial. Asset price movements are an important part of the transmission mechanism of monetary and fiscal policy. They also transmit other developments and shocks, domestic and foreign. They may even, when asset prices de ...
Reserve Bank Monetary Policy Statement 1st October 2007
... policy measures, which are anchored by action on the ground. The Past three (3) Months 1.16 Again, as Governor of the Central Bank, I present this Statement fully aware of the gravity of the economic situation in which we find ourselves and the entire consequences of that situation. 1.17 This is mor ...
... policy measures, which are anchored by action on the ground. The Past three (3) Months 1.16 Again, as Governor of the Central Bank, I present this Statement fully aware of the gravity of the economic situation in which we find ourselves and the entire consequences of that situation. 1.17 This is mor ...
SP151: FCIs and Economic Activity :Some International Evidence
... A Monetary Conditions Index (MCI), a weighted average of the short-term interest rate and the exchange rate, has commonly been used as a composite measure of the stance of monetary policy. The MCI concept was pioneered by the Bank of Canada in the 1980s (Freedman, 1995, Duguay, 1994), based on empir ...
... A Monetary Conditions Index (MCI), a weighted average of the short-term interest rate and the exchange rate, has commonly been used as a composite measure of the stance of monetary policy. The MCI concept was pioneered by the Bank of Canada in the 1980s (Freedman, 1995, Duguay, 1994), based on empir ...
The Effect of Exchange Rates on Statistical Decisions Author(s
... the issues raised by example 1 and its extensions have wide-ranging consequences in philosophy whenever uncertainty is connected with decision making. For instance, the issues affect how the criterion of coherence ðavoiding sure loss when bettingÞ regulates rational degrees of belief ðShimony 1955Þ. ...
... the issues raised by example 1 and its extensions have wide-ranging consequences in philosophy whenever uncertainty is connected with decision making. For instance, the issues affect how the criterion of coherence ðavoiding sure loss when bettingÞ regulates rational degrees of belief ðShimony 1955Þ. ...
Should We Worry about Deflation? Prevention and
... deflation – a fall in the prices of existing stores of value, either real or financial. Asset price movements are an important part of the transmission mechanism of monetary and fiscal policy. They also transmit other developments and shocks, domestic and foreign. They may even, when asset prices de ...
... deflation – a fall in the prices of existing stores of value, either real or financial. Asset price movements are an important part of the transmission mechanism of monetary and fiscal policy. They also transmit other developments and shocks, domestic and foreign. They may even, when asset prices de ...
Financial Globalization and Exchange Rates Philip R. Lane Gian Maria Milesi-Ferretti
... International Monetary Fund and CEPR October 2004 Abstract The founders of the Bretton Woods System sixty years ago were primarily concerned with orderly exchange rate adjustment in a world economy that was characterized by widespread restrictions on international capital mobility. In contrast, the ...
... International Monetary Fund and CEPR October 2004 Abstract The founders of the Bretton Woods System sixty years ago were primarily concerned with orderly exchange rate adjustment in a world economy that was characterized by widespread restrictions on international capital mobility. In contrast, the ...
Trade, Money, and Wealth in the Canadian Economy
... ("Wealth" here is used in the broadest sense: the generation of sustainable real income and jobs that lead to high standards of living.) From the end of the 198283 recession to the end of the current recession in 1992, the Canadian economy went through considerable change and a number of major polic ...
... ("Wealth" here is used in the broadest sense: the generation of sustainable real income and jobs that lead to high standards of living.) From the end of the 198283 recession to the end of the current recession in 1992, the Canadian economy went through considerable change and a number of major polic ...
The Federal Reserve`s Role in the Global
... stage for the gold standard’s international restoration. “The dollar was the lynchpin of the international system,” Eichengreen said. During 1924 and 1927, the U.S. experienced gold inflows, with international considerations “playing a subsidiary role.” During the great crash and its aftermath, 1929 ...
... stage for the gold standard’s international restoration. “The dollar was the lynchpin of the international system,” Eichengreen said. During 1924 and 1927, the U.S. experienced gold inflows, with international considerations “playing a subsidiary role.” During the great crash and its aftermath, 1929 ...
Fixed Exchange Rates and the Trilemma
... • A complete understanding of how a country’s economy works requires that we study the exchange rate, the price of foreign currency. • Because products and investments move across borders, fluctuations in exchange rates have significant effects on the relative prices of home and foreign goods (such ...
... • A complete understanding of how a country’s economy works requires that we study the exchange rate, the price of foreign currency. • Because products and investments move across borders, fluctuations in exchange rates have significant effects on the relative prices of home and foreign goods (such ...
Brazil in the 21 Century:
... lower dark blue area is the one-year interest rate on US Treasuries, it*. On top of the international interest rate, the red area is the forward premium, fpt. Finally, the yellow residual is the covered-interest-parity differential, CIPDt. To better contrast the behavior of the CIPD with the C-Bond ...
... lower dark blue area is the one-year interest rate on US Treasuries, it*. On top of the international interest rate, the red area is the forward premium, fpt. Finally, the yellow residual is the covered-interest-parity differential, CIPDt. To better contrast the behavior of the CIPD with the C-Bond ...
- Munich Personal RePEc Archive
... monetary theory which we discussed above. If the increased supple of and decreased demand for rupee is the root cause of depreciation in rupee’s value, then, we have to reverse both these causes. That means, first, the RBI must immediately stop creating any new money out of thin air. It must freeze ...
... monetary theory which we discussed above. If the increased supple of and decreased demand for rupee is the root cause of depreciation in rupee’s value, then, we have to reverse both these causes. That means, first, the RBI must immediately stop creating any new money out of thin air. It must freeze ...
Monetary Policy in Turkey After the Global Crisis
... prices. As a reflection of this lesson, the idea that the central banks should attach more weight to financial stability has gradually been highlighted across international platforms like G-20. Moreover, on the academic side, studies advocating the implementation of macro prudential policies for cri ...
... prices. As a reflection of this lesson, the idea that the central banks should attach more weight to financial stability has gradually been highlighted across international platforms like G-20. Moreover, on the academic side, studies advocating the implementation of macro prudential policies for cri ...
24. The Limits of Monetary Policy
... 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 ...