Monetary policy response on exchange rate volatility in Indonesia
... is also supported by Kóbor and Székely (2004). Using Markov regime-switching model (low volatile regime and high volatile regime), they confirm that volatility is lower in lowly volatile periods. Meanwhile, Bulí (2005) arrives at an opposite conclusion that financial liberalization significantly con ...
... is also supported by Kóbor and Székely (2004). Using Markov regime-switching model (low volatile regime and high volatile regime), they confirm that volatility is lower in lowly volatile periods. Meanwhile, Bulí (2005) arrives at an opposite conclusion that financial liberalization significantly con ...
Macroeconomic effects of high interest rate policy: Mexico’s experience
... Where denotes the first difference of the variable and stands for the degree of utilization of productive capacity in the manufacturing industry. We note here the small positive value, at 0.002, for the interest rate r. This may be associated with the higher cost of credit, which firms probably ...
... Where denotes the first difference of the variable and stands for the degree of utilization of productive capacity in the manufacturing industry. We note here the small positive value, at 0.002, for the interest rate r. This may be associated with the higher cost of credit, which firms probably ...
Ingves: The central bank`s objectives and means throughout history
... During the 1980s, the credit regulations were increasingly questioned and the large capital flows meant that the effectiveness of the regulations was in doubt. As Englund (1999) writes: ”The stage was set for deregulation”.4 For this reason, the deregulation of the credit markets began in the first ...
... During the 1980s, the credit regulations were increasingly questioned and the large capital flows meant that the effectiveness of the regulations was in doubt. As Englund (1999) writes: ”The stage was set for deregulation”.4 For this reason, the deregulation of the credit markets began in the first ...
Exchange rate pass-through in central and eastern European
... This paper examines the degree of ERPT to domestic prices in nine central and eastern European EU Member States. The methodological framework used is a cointegrated VAR (vector autoregression) with five variables (the nominal effective exchange rate, consumer prices, producer prices, oil prices and ...
... This paper examines the degree of ERPT to domestic prices in nine central and eastern European EU Member States. The methodological framework used is a cointegrated VAR (vector autoregression) with five variables (the nominal effective exchange rate, consumer prices, producer prices, oil prices and ...
26 INTERNATIONAL ASPECTS OF STABILIZATION POLICIES
... importantly on the real sector. The signs of the two effects are not necessarily the same, as this paper shows. For example, an increase in "the" foreign interest rate (or world rate in a small-country model) will cause a stock-shift capital outflow as domestic portfolio balancers buy foreign securi ...
... importantly on the real sector. The signs of the two effects are not necessarily the same, as this paper shows. For example, an increase in "the" foreign interest rate (or world rate in a small-country model) will cause a stock-shift capital outflow as domestic portfolio balancers buy foreign securi ...
The Role of Monetary Policy during the Global Financial Crisis
... Turkish banking system was quite resilient to the episode of financial distress in contrast to many other countries. The recent Turkish experience differs from the past in several dimensions. As discussed in further detail in the next section, Turkey suffered from an intense financial crisis in 2001 ...
... Turkish banking system was quite resilient to the episode of financial distress in contrast to many other countries. The recent Turkish experience differs from the past in several dimensions. As discussed in further detail in the next section, Turkey suffered from an intense financial crisis in 2001 ...
F inancial dollarization
... always be on opposite sides of MVP, if not at MVP. For example, starting from MVP, an increase in the domestic interest rate differential in favor of the home currency should increase the attractiveness of home currency deposits and lower that of home currency loans, thereby reducing deposit dollari ...
... always be on opposite sides of MVP, if not at MVP. For example, starting from MVP, an increase in the domestic interest rate differential in favor of the home currency should increase the attractiveness of home currency deposits and lower that of home currency loans, thereby reducing deposit dollari ...
Title The Restoration of the Gold Standard after the US Civil War: A
... copper pennies and notes issued by state or private banks. All non- specie money could principally be converted into gold. There was no paper money issued by the government. However, the U.S. was practically on a gold standard since the relative price of gold to silver was higher than the world- mar ...
... copper pennies and notes issued by state or private banks. All non- specie money could principally be converted into gold. There was no paper money issued by the government. However, the U.S. was practically on a gold standard since the relative price of gold to silver was higher than the world- mar ...
NBER WORKING PAPER SERIES THE CAPITAL INFLOWS PROBLEM SOUTHERN CONE DISINFLATION
... of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, and exchange—rate policy. The goal of the present work is to elucidate a channel through which capital inflows and real appreciation may occur even if agents have ...
... of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, and exchange—rate policy. The goal of the present work is to elucidate a channel through which capital inflows and real appreciation may occur even if agents have ...
Chapter 15 Exchange-Rate Systems and currency crises
... caused by • A redefinition of a par value • Changes in an exchange rate • Changes in the supply of or demand for foreign exchange © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a ...
... caused by • A redefinition of a par value • Changes in an exchange rate • Changes in the supply of or demand for foreign exchange © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a ...
International Economics: Feenstra/Taylor 2/e
... Integration and Capital Controls: The Regulation of International Finance Key Topics Why have so many countries made the choice to pursue policies of financial openness? Evading control: For years, What are the potential economic benefits Zimbabwe imposed capital of removing capital controls and ado ...
... Integration and Capital Controls: The Regulation of International Finance Key Topics Why have so many countries made the choice to pursue policies of financial openness? Evading control: For years, What are the potential economic benefits Zimbabwe imposed capital of removing capital controls and ado ...
Testing for efficiency and rationality in foreign exchange markets—a
... hypothesis H0 is equivalent to Et{st ⫹ t} ⫽ ft, where Et{} is expectations formed in t. Table 1 summarizes the main findings of the research using single equation methods with both overlapping and non-overlapping data sets. These include the three most influential studies in the 1980s by Bilson (198 ...
... hypothesis H0 is equivalent to Et{st ⫹ t} ⫽ ft, where Et{} is expectations formed in t. Table 1 summarizes the main findings of the research using single equation methods with both overlapping and non-overlapping data sets. These include the three most influential studies in the 1980s by Bilson (198 ...
Foreign Exchange Interventions at Zero Interest Rates
... Taylor-type policy rule with the exchange rate as the instrument.3 For example, when inflation is too low or output is below its potential level, the home currency will be depreciated. Such a policy rule can be accomplished via central bank’s outright purchases of foreign currency in the foreign exc ...
... Taylor-type policy rule with the exchange rate as the instrument.3 For example, when inflation is too low or output is below its potential level, the home currency will be depreciated. Such a policy rule can be accomplished via central bank’s outright purchases of foreign currency in the foreign exc ...
NBER 102500paperdraft - Stanford Center for International
... The International Monetary Fund (IMF) was established after the Second World War at Bretton Woods (along with the International Bank for Reconstruction and Development, now referred to as the World Bank) as a multilateral institution to coordinate exchange rate arrangements among nations. The immed ...
... The International Monetary Fund (IMF) was established after the Second World War at Bretton Woods (along with the International Bank for Reconstruction and Development, now referred to as the World Bank) as a multilateral institution to coordinate exchange rate arrangements among nations. The immed ...
Financial Reform in Australia and China
... domestic financial deregulation and increased exchange rate flexibility should happen first if the liberalisation of short-term capital flows is to occur in a manner that does not lead to instability (He 2013). Others have called for the Chinese capital account to be liberalised within 5–10 years, o ...
... domestic financial deregulation and increased exchange rate flexibility should happen first if the liberalisation of short-term capital flows is to occur in a manner that does not lead to instability (He 2013). Others have called for the Chinese capital account to be liberalised within 5–10 years, o ...
Expanding Beyond Borders: The Yen and the Yuan
... franc, fit the definition of an international currency, but they have different roles in the international monetary system, and these roles define each currency’s scope. The dollar is the key global currency, as its use in denominating international transactions, settling international payments, and ...
... franc, fit the definition of an international currency, but they have different roles in the international monetary system, and these roles define each currency’s scope. The dollar is the key global currency, as its use in denominating international transactions, settling international payments, and ...
On the long-run determinants of real exchange rates for
... The relationship between real exchange rate and economic development is certainly an important issue, both from the positive (descriptive) and normative (policy prescription) perspectives. In recent years, policy discussions have included increasing references to real exchange rate stability and cor ...
... The relationship between real exchange rate and economic development is certainly an important issue, both from the positive (descriptive) and normative (policy prescription) perspectives. In recent years, policy discussions have included increasing references to real exchange rate stability and cor ...
dynamic effects of government policies in an open economy
... anticipated real rate of return on equity is R, = r/P, where ant; -;pated changes in the relative price of capital are assumed away. Portfolio equilibrium is assumed to hold at each moment in time, therefore the demands for ;issets will equal the actual quantities in existence. Since these stocks ar ...
... anticipated real rate of return on equity is R, = r/P, where ant; -;pated changes in the relative price of capital are assumed away. Portfolio equilibrium is assumed to hold at each moment in time, therefore the demands for ;issets will equal the actual quantities in existence. Since these stocks ar ...
the relationship between exchange rate volatility and balance of
... overseas market for various goods, services and financial assets. Using the exchange rate, one is able to compare prices of goods, services, and assets quoted in different currencies. Exchange rate volatility can affect actual inflation as well as expectations about future price volatility Baharumsh ...
... overseas market for various goods, services and financial assets. Using the exchange rate, one is able to compare prices of goods, services, and assets quoted in different currencies. Exchange rate volatility can affect actual inflation as well as expectations about future price volatility Baharumsh ...
Regime Switches in Exchange Rate Volatility and Uncovered
... reflects the extent to which currency returns are related to interest rate differentials. Thus a positive β v means that a lower volatility leads to a lower β 0 + β v vt , i.e. a higher deviation from what is predicted by UIP. Table 2 shows that the point estimates of β v are positive in seven cases ...
... reflects the extent to which currency returns are related to interest rate differentials. Thus a positive β v means that a lower volatility leads to a lower β 0 + β v vt , i.e. a higher deviation from what is predicted by UIP. Table 2 shows that the point estimates of β v are positive in seven cases ...
Chapter 3 Types of Monetary Standards The original meaning of the
... 2. Gold standard with nongold money issued by either the government or a fractional-reserve commercial banking system The earliest departure from the idealized 100 percent gold coin standard was the creation of substitutes for gold. The motive for substitution was a reduction in the real resources e ...
... 2. Gold standard with nongold money issued by either the government or a fractional-reserve commercial banking system The earliest departure from the idealized 100 percent gold coin standard was the creation of substitutes for gold. The motive for substitution was a reduction in the real resources e ...
Searching for financial stability: the Mexican Moritz Cruz
... adequacy. In essence, the ratio R/M indicates the number of months that the imports can be financed with the reserves. In this sense, the criterion to establish the optimum level of reserves suggests that they are inadequate if not cover at least three or four months of imports. It is important to n ...
... adequacy. In essence, the ratio R/M indicates the number of months that the imports can be financed with the reserves. In this sense, the criterion to establish the optimum level of reserves suggests that they are inadequate if not cover at least three or four months of imports. It is important to n ...