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 ...
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 ...
Exogenous Macroeconomic Shocks and their Propagation in Bosnia
... Monetary policy in a currency board should have the sole objective of maintaining a fixed exchange rate relative to the anchor currency. Orthodox currency board systems have no discretionary monetary policy and the money supply is driven by market forces. Furthermore, orthodox currency boards usuall ...
... Monetary policy in a currency board should have the sole objective of maintaining a fixed exchange rate relative to the anchor currency. Orthodox currency board systems have no discretionary monetary policy and the money supply is driven by market forces. Furthermore, orthodox currency boards usuall ...
Nominal GDP Targeting for Middle-Income Countries
... on a relatively inferior iso-welfare curve). Most reasonable objective functions would, instead, tell the monetary authorities to allow part of the temporary shock to show up as an increase in the price level so that the fall in output need not be as severe.7 Under the NGDP target, the adverse suppl ...
... on a relatively inferior iso-welfare curve). Most reasonable objective functions would, instead, tell the monetary authorities to allow part of the temporary shock to show up as an increase in the price level so that the fall in output need not be as severe.7 Under the NGDP target, the adverse suppl ...
Chapter 1: An Introduction to Corporate Finance
... • Counterparties to a swap are often unequal partners to the contract; for example, one party may be AAA-rated while the other is BBB-rated • Any credit risk is borne by the higher-rated counterparty, so the AAArated party may have to honour both its own obligations and those of the BBB-rated party ...
... • Counterparties to a swap are often unequal partners to the contract; for example, one party may be AAA-rated while the other is BBB-rated • Any credit risk is borne by the higher-rated counterparty, so the AAArated party may have to honour both its own obligations and those of the BBB-rated party ...
An estimation of the J-Curve effect between South Africa and the
... depreciation of the domestic currency. At a macro level, a currency crisis could result in the instability of domestic price levels and could also lower the economic growth of a country (Knedlik, 2006). ...
... depreciation of the domestic currency. At a macro level, a currency crisis could result in the instability of domestic price levels and could also lower the economic growth of a country (Knedlik, 2006). ...
External Influences
... Inflation can cause major problems for smaller businesses because raw materials (produced in the UK) become more expensive to buy. Businesses will then put up their prices to compensate for inflation, but it can lower their sales. Staff will also demand pay rises which creates even more cost. ...
... Inflation can cause major problems for smaller businesses because raw materials (produced in the UK) become more expensive to buy. Businesses will then put up their prices to compensate for inflation, but it can lower their sales. Staff will also demand pay rises which creates even more cost. ...
Exchange rate, income distribution and technical change - unu
... A topic of main concern among economists nowadays is the impacts of exchange rate on growth. We might say the exchange rate is, in an open economy, one of the most important macroeconomic policy tools due to its capacity of affecting a country’s relative competitiveness in international trade. After ...
... A topic of main concern among economists nowadays is the impacts of exchange rate on growth. We might say the exchange rate is, in an open economy, one of the most important macroeconomic policy tools due to its capacity of affecting a country’s relative competitiveness in international trade. After ...
Navigation - Zentrum für Europäische Integrationsforschung
... Again, I would not expect any group of experts to come up with a definite conclusion on where the comma should be set. But I do think it is quite an achievement that the question is being discussed at all. Remember that not very long ago EMU was hardly taken seriously in the United States and other ...
... Again, I would not expect any group of experts to come up with a definite conclusion on where the comma should be set. But I do think it is quite an achievement that the question is being discussed at all. Remember that not very long ago EMU was hardly taken seriously in the United States and other ...
Central Bank of Nigeria Communique No. 102 of the Monetary
... The other factor is the pass through effect of exchange rate depreciation which the monetary authority cannot completely ignore. It is doubtful if the adjustment process has completed in view of continuous increase in the contribution of imported foods to inflation in recent times. The antidote how ...
... The other factor is the pass through effect of exchange rate depreciation which the monetary authority cannot completely ignore. It is doubtful if the adjustment process has completed in view of continuous increase in the contribution of imported foods to inflation in recent times. The antidote how ...
FRBSF E L
... The Act of 1977 also demanded a greater level of oversight and transparency regarding monetary policy. It stipulated that the Fed would consult with congressional committees at semiannual meetings concerning “objectives and plans with respect to the ranges of growth or diminution of monetary and cre ...
... The Act of 1977 also demanded a greater level of oversight and transparency regarding monetary policy. It stipulated that the Fed would consult with congressional committees at semiannual meetings concerning “objectives and plans with respect to the ranges of growth or diminution of monetary and cre ...
DOLLARISATION: THE CASE OF ECUADOR B J
... dollarisation. A key indicator is the large difference between interbank interest rates (which fell to 4.92% in 2002) and the lending rate to private borrowers (which stood at 13.09% in 2002).16 This is partly due to an attempt by the banks to recapitalise their assets, but more so, it is due to the ...
... dollarisation. A key indicator is the large difference between interbank interest rates (which fell to 4.92% in 2002) and the lending rate to private borrowers (which stood at 13.09% in 2002).16 This is partly due to an attempt by the banks to recapitalise their assets, but more so, it is due to the ...
Title: The Political Economy of Monetary Institutions: An
... Notwithstanding important differences between the two institutions, exchange rate pegs and central bank independence can be thought of as alternative forms of monetary delegation. Indeed, as we discuss below, a purely economic logic of monetary delegation, derived from the problem of time inconsiste ...
... Notwithstanding important differences between the two institutions, exchange rate pegs and central bank independence can be thought of as alternative forms of monetary delegation. Indeed, as we discuss below, a purely economic logic of monetary delegation, derived from the problem of time inconsiste ...
PDF
... confused WIth shIfts m relative demand, and It m duces output responses If price elashCltles of supply and demand dIffer across markets, a monetary shock may affect relative prices and have different Impacts among sectors Thus, m a stochastic eqUlhbrlUm model, changes m the money supply can have re ...
... confused WIth shIfts m relative demand, and It m duces output responses If price elashCltles of supply and demand dIffer across markets, a monetary shock may affect relative prices and have different Impacts among sectors Thus, m a stochastic eqUlhbrlUm model, changes m the money supply can have re ...
Exchange Rate Volatility on Investment and Growth in Nigeria, an
... effect of exchange rate volatility. Few of the studies have conducted both exchange rate volatility on growth and investment in Nigeria. Manalo, Perera and Rees (2014) examine the effects of exchange rate movements on the Australian economy using the structural vector auto-regression model using sea ...
... effect of exchange rate volatility. Few of the studies have conducted both exchange rate volatility on growth and investment in Nigeria. Manalo, Perera and Rees (2014) examine the effects of exchange rate movements on the Australian economy using the structural vector auto-regression model using sea ...
Explaining the Early Years of the Euro Exchange Rate: an episode
... Introduction The launch of the euro on January 1, 1999 was the most important international financial ...
... Introduction The launch of the euro on January 1, 1999 was the most important international financial ...
INTERPRETING THE MACROECONOMIC TIME SERIES FACTS
... intermediate macroeconomics textbooks, where IS and LM curves are derived and shifted about to give students a vocabulary with which to discuss macroeconomic policy. In this framework, which is essentially static, policy can increase the money stock, thereby shifting the LM curve outward under the a ...
... intermediate macroeconomics textbooks, where IS and LM curves are derived and shifted about to give students a vocabulary with which to discuss macroeconomic policy. In this framework, which is essentially static, policy can increase the money stock, thereby shifting the LM curve outward under the a ...
Interest Rate
... try to beef up their reserves by making fewer loans thus decreasing deposits and the money supply. Fewer banks in need of reserves, more banks with excess reserves, banks with excess reserves make more loans thus increasing deposits and the money supply. Fed injects more reserves: Fewer banks in nee ...
... try to beef up their reserves by making fewer loans thus decreasing deposits and the money supply. Fewer banks in need of reserves, more banks with excess reserves, banks with excess reserves make more loans thus increasing deposits and the money supply. Fed injects more reserves: Fewer banks in nee ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 17
... 22) A country's domestic currency's real exchange rate, q, is best described by A) the price of similar goods in the same market. B) the price of the domestic basket in terms of the foreign one. C) the price of a domestic basket. D) the price of the foreign basket in terms of the domestic basket. E) ...
... 22) A country's domestic currency's real exchange rate, q, is best described by A) the price of similar goods in the same market. B) the price of the domestic basket in terms of the foreign one. C) the price of a domestic basket. D) the price of the foreign basket in terms of the domestic basket. E) ...
The central bank`s objectives and means throughout history
... talking to deaf ears. 11 However, the most recent financial crisis illustrates with great clarity the size of the costs of “mopping up afterwards”. In this context, it should be pointed out that the Riksbank warned about developments in the Swedish housing market long before the financial crisis. 12 ...
... talking to deaf ears. 11 However, the most recent financial crisis illustrates with great clarity the size of the costs of “mopping up afterwards”. In this context, it should be pointed out that the Riksbank warned about developments in the Swedish housing market long before the financial crisis. 12 ...
A Small Open Economy in the Great Depression: the Case of
... In this paper, we try to account for these different aspects of the Swiss crisis. Our contribution is threefold. First, we provide a new monthly dataset covering the performance of the real economy from January 1926 to December 1938. Second, we estimate the structural parameters of a New Keynesian s ...
... In this paper, we try to account for these different aspects of the Swiss crisis. Our contribution is threefold. First, we provide a new monthly dataset covering the performance of the real economy from January 1926 to December 1938. Second, we estimate the structural parameters of a New Keynesian s ...
Torsten Paul B. Krugnan 981 NBER WORKING PAPER SERIES
... Our model is of a two—period, pure exchange economy. There is a single composite consumption good, and agents receive ...
... Our model is of a two—period, pure exchange economy. There is a single composite consumption good, and agents receive ...
NBER WORKING PAPER SERIES STRICT DOLLARIZATION AND ECONOMIC PERFORMANCE: AN EMPIRICAL INVESTIGATION
... individuals and corporations to evade taxes. These fundamental characteristics of the dollarized economies – very small and extremely open – already suggest that using a broad control group of all non-dollarized countries, which are much larger and not as open, may indeed generate biased results.11 ...
... individuals and corporations to evade taxes. These fundamental characteristics of the dollarized economies – very small and extremely open – already suggest that using a broad control group of all non-dollarized countries, which are much larger and not as open, may indeed generate biased results.11 ...
