Report to the Executive Board of the Norges Bank On the Decision
... Our reading of Inflation Reports and Strategy Documents is that the Norges Bank's view is that there are a number of important channels through which monetary policy changes currently affect inflation. First, interest rate changes and their induced effects on exchange rates both affect output, which ...
... Our reading of Inflation Reports and Strategy Documents is that the Norges Bank's view is that there are a number of important channels through which monetary policy changes currently affect inflation. First, interest rate changes and their induced effects on exchange rates both affect output, which ...
DP2006/09 Uncovering the Hit-list for Small Inflation Targeters: A Bayesian Structural Analysis
... enhanced by providing explicit statements of how alternative stabilization objectives are weighted (see Svensson 2005) and our analysis provides such statements. Finally, historical estimates of stabilization objectives (conditioned on an explicit structural and microfounded model) provide a framewo ...
... enhanced by providing explicit statements of how alternative stabilization objectives are weighted (see Svensson 2005) and our analysis provides such statements. Finally, historical estimates of stabilization objectives (conditioned on an explicit structural and microfounded model) provide a framewo ...
A Comparative Analysis of the Impact of the Fixed and... Exchange Rate Systems on the Nigerian Economy
... official rate)”. They further observed that in practice, this rate varied slightly. Before World War II, the par value of each major currency normally was fixed in relation to gold; in the post war period, it was set (by the International Monetary Fund) in relation to the U.S. dollar, which was itse ...
... official rate)”. They further observed that in practice, this rate varied slightly. Before World War II, the par value of each major currency normally was fixed in relation to gold; in the post war period, it was set (by the International Monetary Fund) in relation to the U.S. dollar, which was itse ...
CHAPTER 12—EXCHANGE-RATE DETERMINATION MULTIPLE
... 21. Under a system of floating exchange rates, relatively low productivity and high inflation rates in the United States result in: a. An increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar b. An increase in the demand for forei ...
... 21. Under a system of floating exchange rates, relatively low productivity and high inflation rates in the United States result in: a. An increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar b. An increase in the demand for forei ...
DP2010/03 Multi-period fixed-rate loans, housing and monetary policy in small open economies
... debt associated with the purchase of a house. Mortgage contracts of 2-, 5and 10-year duration are not uncommon. In this paper, we examine the implications of multi-period loans under both inflation targeting and fixed exchange rate regimes. First, we examine the consumer’s problem and show that ex a ...
... debt associated with the purchase of a house. Mortgage contracts of 2-, 5and 10-year duration are not uncommon. In this paper, we examine the implications of multi-period loans under both inflation targeting and fixed exchange rate regimes. First, we examine the consumer’s problem and show that ex a ...
International trends in productivity and unit labor costs in manufacturing
... NOTE : Rates of change based on the compound rate method. ...
... NOTE : Rates of change based on the compound rate method. ...
Chapter 16: Monetary Policy and Inflation
... As the money supply increases, equilibrium interest rates fall from r0 to r1. Investment spending increases from I0 to I1. ...
... As the money supply increases, equilibrium interest rates fall from r0 to r1. Investment spending increases from I0 to I1. ...
References
... supply”), and the rate at which money is reused V (also known as “the velocity of circulation of money”). This paper offers first a qualitative discussion of what can cause these factors to change and how those causes might be controlled, then develops a quantitative model of inflation based on a no ...
... supply”), and the rate at which money is reused V (also known as “the velocity of circulation of money”). This paper offers first a qualitative discussion of what can cause these factors to change and how those causes might be controlled, then develops a quantitative model of inflation based on a no ...
Macroeconomics
... Version 2017 – Revision A: Updates include new cover and back pages, new front matter. Version 2015 – Revision A: The content of this edition has been revised in several respects. Chapter 5 has been modified to provide a more concise AD/AS model and a framework for the material covered in later chap ...
... Version 2017 – Revision A: Updates include new cover and back pages, new front matter. Version 2015 – Revision A: The content of this edition has been revised in several respects. Chapter 5 has been modified to provide a more concise AD/AS model and a framework for the material covered in later chap ...
inflation, exchange rates, and stabilization
... The important difference between the Chilean and the Argentine cases is the channel through which exchange speculation took place. In Chile, trade had been completely liberalized, so flight into importables was the rule. In Argentina, the capital account had been completely opened, so flight into fo ...
... The important difference between the Chilean and the Argentine cases is the channel through which exchange speculation took place. In Chile, trade had been completely liberalized, so flight into importables was the rule. In Argentina, the capital account had been completely opened, so flight into fo ...
Liberalized capital markets, state autonomy, and European
... government with an immediate crisis in the balance of payments affecting both the current and capital accounts. The experience of the 1970s left three important lessons behind. The first two are well-known: governments can liberalize international capital markets more easily than they can control th ...
... government with an immediate crisis in the balance of payments affecting both the current and capital accounts. The experience of the 1970s left three important lessons behind. The first two are well-known: governments can liberalize international capital markets more easily than they can control th ...
Hyperinflation and the Reconstruction of a National Money
... people will tend to count in one unit while paying either in the national currency or a foreign one. As a rule, the actual circulation of foreign cash money, or capital flight, or as well the growth of foreign currency deposits in domestic banks have received more attention than the fate of the unit ...
... people will tend to count in one unit while paying either in the national currency or a foreign one. As a rule, the actual circulation of foreign cash money, or capital flight, or as well the growth of foreign currency deposits in domestic banks have received more attention than the fate of the unit ...
International transmission of anticipated inflation under alternative
... J.A. Holman, F.K. Rioja / Journal of International Money and Finance 20 (2001) 497–519 ...
... J.A. Holman, F.K. Rioja / Journal of International Money and Finance 20 (2001) 497–519 ...
Can a tighter monetary policy actually lead to a higher rate of inflation?
... It could be argued that (non-inflationary) tax revenue is another source of liquidity for the government besides seigniorage and bond issuance, so the amount of debt does not need to increase exponentially. However, Sargent and Wallace’s mathematical model only requires the real return on governmen ...
... It could be argued that (non-inflationary) tax revenue is another source of liquidity for the government besides seigniorage and bond issuance, so the amount of debt does not need to increase exponentially. However, Sargent and Wallace’s mathematical model only requires the real return on governmen ...
PDF file - AgEcon Search
... by raising the domestic prices of imported goods relative to the price of domestically produced goods, devaluation shifts the demand from imported goods to domestically produced goods. This is what is referred to as the expenditure switching effect of ...
... by raising the domestic prices of imported goods relative to the price of domestically produced goods, devaluation shifts the demand from imported goods to domestically produced goods. This is what is referred to as the expenditure switching effect of ...
vietnam`s exchange rate policy
... In line with a general economic reform process dating back to at least the late 1980s, the Vietnamese authorities have endeavored to allow and encourage financial markets to develop. The formation of an organized foreign exchange (forex) market in the early 1990s was an example of such efforts. Yet, ...
... In line with a general economic reform process dating back to at least the late 1980s, the Vietnamese authorities have endeavored to allow and encourage financial markets to develop. The formation of an organized foreign exchange (forex) market in the early 1990s was an example of such efforts. Yet, ...
DP2004/05 What can the Taylor rule tell us New Zealand and Australia?
... One shortcoming of the employment series for the Australian states is that they exhibit seasonality. We adjusted for seasonality by using the conventional X11 technique. In a Taylor rule context this is nevertheless not a major issue, as the weight on the output gap in a Taylor rule is relatively sm ...
... One shortcoming of the employment series for the Australian states is that they exhibit seasonality. We adjusted for seasonality by using the conventional X11 technique. In a Taylor rule context this is nevertheless not a major issue, as the weight on the output gap in a Taylor rule is relatively sm ...
Chapter 2: Introduction to Exchange Rates and Foreign
... Foreign Exchange Market (FOREX) is a collection of private individuals, corporations, and some public institutions that buy and sell currencies. Volume is enormous: 2010 $4 trilion per day. US GDP? Highly integrated internationally: there is not a moment in the day when foreign exchange is not being ...
... Foreign Exchange Market (FOREX) is a collection of private individuals, corporations, and some public institutions that buy and sell currencies. Volume is enormous: 2010 $4 trilion per day. US GDP? Highly integrated internationally: there is not a moment in the day when foreign exchange is not being ...
Asset Substitutes, Money Demand and the Inflation Process in Brazil
... (subsidiesto commercial banks for particularloans). Some direct loans and passthroughs are backed by bona fide loans, while others have been made with little expectation of repayment. Thus it is difficult to measure the implicit transfer accomplished through central bank programs. When the monetary ...
... (subsidiesto commercial banks for particularloans). Some direct loans and passthroughs are backed by bona fide loans, while others have been made with little expectation of repayment. Thus it is difficult to measure the implicit transfer accomplished through central bank programs. When the monetary ...
NBER WORKING PAPER SERIES INTERNATIONAL MONETARY POLICY IJ PROMOTE ECONOMIC RECOVERY
... market equilibrium equations. These are given in equations (1)—(7). Starred variables relate to the foreign country, unstarred variables to the home ...
... market equilibrium equations. These are given in equations (1)—(7). Starred variables relate to the foreign country, unstarred variables to the home ...
5. Interest Rates7
... promissory notes, a credit line mostly associated with foreign trade. Thus, the stock reached US$4 billion by the end of March. It is worth mentioning that the increase in these loans occurred in a context in which interest rates charged on loans arranged through unsecured promissory notes in foreig ...
... promissory notes, a credit line mostly associated with foreign trade. Thus, the stock reached US$4 billion by the end of March. It is worth mentioning that the increase in these loans occurred in a context in which interest rates charged on loans arranged through unsecured promissory notes in foreig ...
The anatomy of current account reversals
... For instance, a country with a current account deficit may be implementing a strategy of fiscal consolidation, which will act to reduce the current account deficit through higher public savings. External factors, such as a sudden stop in capital inflows, can also play a role. All these factors have ...
... For instance, a country with a current account deficit may be implementing a strategy of fiscal consolidation, which will act to reduce the current account deficit through higher public savings. External factors, such as a sudden stop in capital inflows, can also play a role. All these factors have ...