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... peg the nominal exchange rate and at the same time pursue an independent monetary policy aimed at stabilizing the price level, without imposing capital controls; fine-tune the economy; make accurate macroeconomic forecasts. ...
... peg the nominal exchange rate and at the same time pursue an independent monetary policy aimed at stabilizing the price level, without imposing capital controls; fine-tune the economy; make accurate macroeconomic forecasts. ...
1 Economic way of thinking
... • Horizontally: How much suppliers are willing and able to sell at a given price • Vertically: The minimum price for which suppliers are willing to sell a given quantity Example Will producers ever take accept a price that is lower than the price on the supply curve? ...
... • Horizontally: How much suppliers are willing and able to sell at a given price • Vertically: The minimum price for which suppliers are willing to sell a given quantity Example Will producers ever take accept a price that is lower than the price on the supply curve? ...
eliminating runaway inflation: lessons from the german hyperinflation
... lessons to be more often forgotten than remembered. Over the past year, however, there are signs that the authorities both at home and abroad may have started to apply the lessons and that they may have abandoned their old shifting-targets policy of responding to the most pressing short-run concerns ...
... lessons to be more often forgotten than remembered. Over the past year, however, there are signs that the authorities both at home and abroad may have started to apply the lessons and that they may have abandoned their old shifting-targets policy of responding to the most pressing short-run concerns ...
A Three-State Markov-Modulated Switching Model for Exchange Rates
... Figure 1 which displayed the exchange rates of US dollars to a unit of euros, British pounds, and Japanese yen. It is easily seen that the three currencies switched between appreciation and depreciation states during the period under review. However, owing to varying monetary policies, currencies wh ...
... Figure 1 which displayed the exchange rates of US dollars to a unit of euros, British pounds, and Japanese yen. It is easily seen that the three currencies switched between appreciation and depreciation states during the period under review. However, owing to varying monetary policies, currencies wh ...
beliefs - Georgia State University
... difficult to change the rules of the monetary regime and also serves as an important “information device” (Ho, 2002) since the objectives and tools of monetary operations are spelled out in black and white. Although the law can be changed, it deters ad hoc changes in policy. The legal framework is a ...
... difficult to change the rules of the monetary regime and also serves as an important “information device” (Ho, 2002) since the objectives and tools of monetary operations are spelled out in black and white. Although the law can be changed, it deters ad hoc changes in policy. The legal framework is a ...
Nominal GDP Targeting for Middle-Income Countries
... condition a < b holds, the necessary condition easily follows; nominal GDP targeting dominates. (The results asserted in the last three paragraphs are derived in Frankel, 1995a,b, 2011; and Bhandari and Frankel, 2014). The original Taylor Rule from Taylor (1993), which is still the form in which it ...
... condition a < b holds, the necessary condition easily follows; nominal GDP targeting dominates. (The results asserted in the last three paragraphs are derived in Frankel, 1995a,b, 2011; and Bhandari and Frankel, 2014). The original Taylor Rule from Taylor (1993), which is still the form in which it ...
Foreign Exchange Intervention Since the Plaza Accord
... account balances. The evidence from the 1980s does not refute that skepticism. However, the experience of the past 15 years shows that intervention can have important sustained effects if it is large enough. A number of countries—most notably China—have used massive and sustained intervention to hol ...
... account balances. The evidence from the 1980s does not refute that skepticism. However, the experience of the past 15 years shows that intervention can have important sustained effects if it is large enough. A number of countries—most notably China—have used massive and sustained intervention to hol ...
Explicit and Implicit Taxation in Uzbekistan
... strategies pursued in various developing countries in the 1960s and 1970s3: under the government’s guidance, resources are channeled from the traditional export sectors of the country (especially cotton and gold) to the development of import-substituting industries (such as automobile production and ...
... strategies pursued in various developing countries in the 1960s and 1970s3: under the government’s guidance, resources are channeled from the traditional export sectors of the country (especially cotton and gold) to the development of import-substituting industries (such as automobile production and ...
The euro-dollar exchange rate and Dutch imports and exports
... statements about the past. For prognoses as the one above the CPB uses an error correction model (see for example Engle and Granger, 1987), that among others, contains the relevant world trade, the price of domestically produced fabricates and the price of competing exports. This model is part of th ...
... statements about the past. For prognoses as the one above the CPB uses an error correction model (see for example Engle and Granger, 1987), that among others, contains the relevant world trade, the price of domestically produced fabricates and the price of competing exports. This model is part of th ...
This PDF is a selection from a published volume from the... Economic Research Volume Title: NBER International Seminar on Macroeconomics 2007
... 2.10) output, and its implicationsfor the choice of monetarypolicy under discretion. 2.2.6 TheEffectsof Nominal and Real ShocksunderFlexiblePrices We can now use our apparatusto analyze the macroeconomiceffects of monetaryand productivityshocks (Christiano,Eichenbaum,and Evans 1999,2005;Clarida,Gali ...
... 2.10) output, and its implicationsfor the choice of monetarypolicy under discretion. 2.2.6 TheEffectsof Nominal and Real ShocksunderFlexiblePrices We can now use our apparatusto analyze the macroeconomiceffects of monetaryand productivityshocks (Christiano,Eichenbaum,and Evans 1999,2005;Clarida,Gali ...
VI. Suggestions on China`s Renminbi Exchange Rate Policy
... Renminbi (RMB) exchange rate at 8.7 per US dollar (USD) with a narrow band of 0.25% of the previous day’s reference rate. Under the new regime, the RMB/USD exchange rate began to appreciate to 8.3 in May 1995 and 8.28 in October 1997. During the Asian financial crisis, the trading band was narrowed ...
... Renminbi (RMB) exchange rate at 8.7 per US dollar (USD) with a narrow band of 0.25% of the previous day’s reference rate. Under the new regime, the RMB/USD exchange rate began to appreciate to 8.3 in May 1995 and 8.28 in October 1997. During the Asian financial crisis, the trading band was narrowed ...
Beju D., Romania`s monetary policy towards EMU integration
... challenging (4%+/-1% for 2007 and 3.8%=/-1% for 2008), but they can be attained through a consistent anti-inflationist monetary policy, supported by the other component of the mix of macroeconomic policies. In March 2007, the annual inflation rate was 3.66 %(March 2007/March 2006), a record low leve ...
... challenging (4%+/-1% for 2007 and 3.8%=/-1% for 2008), but they can be attained through a consistent anti-inflationist monetary policy, supported by the other component of the mix of macroeconomic policies. In March 2007, the annual inflation rate was 3.66 %(March 2007/March 2006), a record low leve ...
Statistical properties of exchange rate LKR changes
... monetary transmission process in Sri Lanka. Movement in this price has a significant effect on consumer prices. Again this background, good understanding of stochastic properties of the behavior of Rupee-US dollar exchange rate changes is important in many aspects. Therefore, an in-depth empirical a ...
... monetary transmission process in Sri Lanka. Movement in this price has a significant effect on consumer prices. Again this background, good understanding of stochastic properties of the behavior of Rupee-US dollar exchange rate changes is important in many aspects. Therefore, an in-depth empirical a ...
Boom, Gloom, Doom: Balance Sheets, Monetary Fragmentation
... links the value of domestic currency closely to the dollar or other authoritative international currencies. Such exchange-rate pledges were intended to rein in inflationary expectations. In this they usually had some immediate successes. However, ERBS programs had other, more troubling financial con ...
... links the value of domestic currency closely to the dollar or other authoritative international currencies. Such exchange-rate pledges were intended to rein in inflationary expectations. In this they usually had some immediate successes. However, ERBS programs had other, more troubling financial con ...
July 2016
... calculated that at the end of December 2015, China’s real economy (mainly enterprise) leverage ratio was at a mid-stream level of 254.8 per cent which is relatively high in terms of emerging economies. As for the increment, since the global financial crisis, China’s debt ratio has been climbing rapi ...
... calculated that at the end of December 2015, China’s real economy (mainly enterprise) leverage ratio was at a mid-stream level of 254.8 per cent which is relatively high in terms of emerging economies. As for the increment, since the global financial crisis, China’s debt ratio has been climbing rapi ...
Exchange rate overshooting and the costs of floating April 2004 1 Michele Cavallo
... currency debt) and thus forces the country to sell domestic stocks to buy back some of its external debt. The stock sell-off further depresses domestic stock prices relative to the foreign currency debt making the margin constraint even more binding. The final effect of the move to a float is a larg ...
... currency debt) and thus forces the country to sell domestic stocks to buy back some of its external debt. The stock sell-off further depresses domestic stock prices relative to the foreign currency debt making the margin constraint even more binding. The final effect of the move to a float is a larg ...
The Monetary System: What It Is and How It Works
... But unlike during the crisis of the early 1930s, the currency–deposit ratio did not rise during the recent crisis. As shown in Figure 1, it actually declined slightly. Even so, the increase in the reserve– deposit ratio caused the money multiplier to drop sharply (see Supplement 20-6). But because t ...
... But unlike during the crisis of the early 1930s, the currency–deposit ratio did not rise during the recent crisis. As shown in Figure 1, it actually declined slightly. Even so, the increase in the reserve– deposit ratio caused the money multiplier to drop sharply (see Supplement 20-6). But because t ...
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... Factors that Affect the Money Multiplier An Increase in ... c (the desired ratio of currency to checkable ...
... Factors that Affect the Money Multiplier An Increase in ... c (the desired ratio of currency to checkable ...
Monetary Policy Strategy of the National Bank of Moldova for
... the continued convergence of the Moldovan economy toward its main trading partners, systematic productivity growth in all sectors and structural transformations in the economy. Therefore, the inflation objective is set higher than by the European Central Bank (ECB)3 to avoid systematic and fast appr ...
... the continued convergence of the Moldovan economy toward its main trading partners, systematic productivity growth in all sectors and structural transformations in the economy. Therefore, the inflation objective is set higher than by the European Central Bank (ECB)3 to avoid systematic and fast appr ...
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... Forecasting currency crises is a challenging task. A well-known standard approach is the signal approach developed by Kaminsky, Lizondo and Reinhart (KLR).1 Following this approach currency crises are identified by means of a foreign exchange market pressure index. This pressure index serves as a re ...
... Forecasting currency crises is a challenging task. A well-known standard approach is the signal approach developed by Kaminsky, Lizondo and Reinhart (KLR).1 Following this approach currency crises are identified by means of a foreign exchange market pressure index. This pressure index serves as a re ...
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... • The net export effect of contractionary monetary policy will be in the same direction as the monetary policy effect, thereby amplifying the effect of such policy ...
... • The net export effect of contractionary monetary policy will be in the same direction as the monetary policy effect, thereby amplifying the effect of such policy ...
Local versus Producer Currency Pricing: Evidence from
... What the ECB should do depends crucially on the sensitivity of prices to exchange rate movements. In the optimal monetary policy literature, ‡exible exchange rates is the optimal response when prices of traded goods are rigid in the producer’s currency. In contrast, a …xed exchange rate regime becom ...
... What the ECB should do depends crucially on the sensitivity of prices to exchange rate movements. In the optimal monetary policy literature, ‡exible exchange rates is the optimal response when prices of traded goods are rigid in the producer’s currency. In contrast, a …xed exchange rate regime becom ...