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 ...
nafta toward a common currency: an economic feasibility study
... currency. Though the U.S. dollar, also known as the greenback, is “indisputably the market leader among world monies,” 1 the Euro has become a recent threat to its power. The U.S. dollar accounts for nearly half the value in which the world’s exports are invoiced while the Euro accounts for roughly ...
... currency. Though the U.S. dollar, also known as the greenback, is “indisputably the market leader among world monies,” 1 the Euro has become a recent threat to its power. The U.S. dollar accounts for nearly half the value in which the world’s exports are invoiced while the Euro accounts for roughly ...
devaluation and its impact on ethiopian economy
... Main Exchange Rate regimes As it is mentioned before, the main exchange rate regimes are:- ...
... Main Exchange Rate regimes As it is mentioned before, the main exchange rate regimes are:- ...
The Gold Standard, Bretton Woods and Other Monetary Regimes: A
... tionaty policies. 17 Thus for an international monetaty arrangement to be effective both between countries and! within them, a consistent credible commitment mechanism is required. Such a mechanism likely prevailed under the gold standard but was less evident under Bretton Woods. A fifth and final i ...
... tionaty policies. 17 Thus for an international monetaty arrangement to be effective both between countries and! within them, a consistent credible commitment mechanism is required. Such a mechanism likely prevailed under the gold standard but was less evident under Bretton Woods. A fifth and final i ...
Link to official URL: http://www.tandfonline.com/10.1080
... (3). If Xt is a vector of I(1) variables, the left-hand side and the first (k - 1) elements of (4) are I(0), and the last element of (4) is a linear combination of I(1) variables. Given the assumption on the error term, this last element must also be I(0); ΠKxt_k~I(0). Hence, either xt contains a nu ...
... (3). If Xt is a vector of I(1) variables, the left-hand side and the first (k - 1) elements of (4) are I(0), and the last element of (4) is a linear combination of I(1) variables. Given the assumption on the error term, this last element must also be I(0); ΠKxt_k~I(0). Hence, either xt contains a nu ...
Debt Composition and Balance Sheet Effects of Exchange and
... do not have any data on exports and have to proxy for it by earnings or total sales. Hence as they conclude, their result that dollar debt is positively related to investment is probably driven by omitted variables like exports which are related to foreign currency denominated debt. In contrast we h ...
... do not have any data on exports and have to proxy for it by earnings or total sales. Hence as they conclude, their result that dollar debt is positively related to investment is probably driven by omitted variables like exports which are related to foreign currency denominated debt. In contrast we h ...
Post-EMS Exchange Risk Trends: A Comparative Perspective
... international transaction power at the introduction of the single currency, and whether European economic agents experience a higher or lower exchange risk. Finally, the BP and JY were used against the USD because, although these currencies do not belong to the EMU, the BP is in its neighbourhood an ...
... international transaction power at the introduction of the single currency, and whether European economic agents experience a higher or lower exchange risk. Finally, the BP and JY were used against the USD because, although these currencies do not belong to the EMU, the BP is in its neighbourhood an ...
Student Economic Review, Vol. 20, 2006, pg. 175 Senior Sophister
... Much has been made of inflation persistence by the ECB (ECB-IPN 20042005), as it queries why certain countries exhibit rates of inflation which lie beyond the range of the ECB targets. We have to come to the understanding however, that so long as countries are behaving differently in economic terms, ...
... Much has been made of inflation persistence by the ECB (ECB-IPN 20042005), as it queries why certain countries exhibit rates of inflation which lie beyond the range of the ECB targets. We have to come to the understanding however, that so long as countries are behaving differently in economic terms, ...
NBER WORKING PAPER SERIES EXPECTATIONS AND EXCHANGE RATE POLICY Michael B. Devereux
... Section 1 presents some empirical evidence on the importance of news in moving exchange rates. Section 2 then explains in a general context why prices of nondurables should not act like asset prices and reflect expectations of future fundamentals. The rest of the paper demonstrates the logic of targ ...
... Section 1 presents some empirical evidence on the importance of news in moving exchange rates. Section 2 then explains in a general context why prices of nondurables should not act like asset prices and reflect expectations of future fundamentals. The rest of the paper demonstrates the logic of targ ...
Feenstra ch 18
... are equal. In this example, the dollar interest rate is 5%, the euro interest rate is 3%, and the expected future exchange rate (one year ahead) is = 1.224 $/€. The equilibrium is highlighted in bold type, where both returns are 5% in annual dollar terms. Figure 12-2 plots the domestic and foreign r ...
... are equal. In this example, the dollar interest rate is 5%, the euro interest rate is 3%, and the expected future exchange rate (one year ahead) is = 1.224 $/€. The equilibrium is highlighted in bold type, where both returns are 5% in annual dollar terms. Figure 12-2 plots the domestic and foreign r ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... Several researchers have sought to compare bilateral trade by using Real exchange rates to see the effects of prices differentials on trade and other economic variables. methodological issues when calculating real exchange rates were also examined by Aftari (2004), who focused the research on Ghana. ...
... Several researchers have sought to compare bilateral trade by using Real exchange rates to see the effects of prices differentials on trade and other economic variables. methodological issues when calculating real exchange rates were also examined by Aftari (2004), who focused the research on Ghana. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... estimated by the Congressional Budget Office to be $175 billion, or 4% of GNP, is not sustainable, however. It is a “temporary equilibrium,” to use the jargon of macroeconomic dynamics. If the deficit is not eliminated, eventually international investors will begin to resist further absorption of do ...
... estimated by the Congressional Budget Office to be $175 billion, or 4% of GNP, is not sustainable, however. It is a “temporary equilibrium,” to use the jargon of macroeconomic dynamics. If the deficit is not eliminated, eventually international investors will begin to resist further absorption of do ...
Why Was the Plaza Accord Unique?
... event study methods, or high-frequency data, sterilized intervention by major economies has no impact on exchange rates beyond a period of a few weeks, according to more than 30 years of empirical work.4 Monetary authorities may believe intervention is effective (Neely 2001, 2008), but they likely s ...
... event study methods, or high-frequency data, sterilized intervention by major economies has no impact on exchange rates beyond a period of a few weeks, according to more than 30 years of empirical work.4 Monetary authorities may believe intervention is effective (Neely 2001, 2008), but they likely s ...
Investment Climate in Zambia
... o The effects of direct controls manifested in poor financial intermediation characterised by negative real interest rates. o Other effects included: ...
... o The effects of direct controls manifested in poor financial intermediation characterised by negative real interest rates. o Other effects included: ...
Chapter 18 - Patrick M. Crowley
... reversed and can be quickly implemented. The discount rate is less well used since it is no longer binding for most banks, can cause liquidity problems, and increases uncertainty for banks. The discount window remains of tremendous value given its ability to allow the Fed to act as a lender of last ...
... reversed and can be quickly implemented. The discount rate is less well used since it is no longer binding for most banks, can cause liquidity problems, and increases uncertainty for banks. The discount window remains of tremendous value given its ability to allow the Fed to act as a lender of last ...
Chapter 18 - Patrick M. Crowley
... reversed and can be quickly implemented. • The discount rate is less well used since it is no longer binding for most banks, can cause liquidity problems, and increases uncertainty for banks. The discount window remains of tremendous value given its ability to allow the Fed to act as a lender of las ...
... reversed and can be quickly implemented. • The discount rate is less well used since it is no longer binding for most banks, can cause liquidity problems, and increases uncertainty for banks. The discount window remains of tremendous value given its ability to allow the Fed to act as a lender of las ...
NBER WORKING PAPER SERIES PURCHASING POWER PARITY Rudiger Dornbusch Working Paper No. 1591
... "The general inflation which has taken place during the war has lowered this purchasing power in all countries, though in a different degree, and the rates of exchange should accordingly be expected to deviate from their old parities in proportion to the inflation of. each country. At every moment t ...
... "The general inflation which has taken place during the war has lowered this purchasing power in all countries, though in a different degree, and the rates of exchange should accordingly be expected to deviate from their old parities in proportion to the inflation of. each country. At every moment t ...
Introducción - Banco de España
... announced its decision to make discretionary foreign exchange interventions. The announcement indicated that the Banco de la República (BR) would buy up to US $ 1,000 million in international reserves until the end of the year 2004 through direct purchases in the foreign exchange market. It was also ...
... announced its decision to make discretionary foreign exchange interventions. The announcement indicated that the Banco de la República (BR) would buy up to US $ 1,000 million in international reserves until the end of the year 2004 through direct purchases in the foreign exchange market. It was also ...
Chapter 12 - Academic Csuohio
... foreign (European) goods are relatively cheap foreign currency (euro) is said to be undervalued (by x%). • why? euros are x% cheaper than they would have to be to satisfy PPP. © 2008 Worth Publishers ▪ International Economics ▪ Feenstra/Taylor ...
... foreign (European) goods are relatively cheap foreign currency (euro) is said to be undervalued (by x%). • why? euros are x% cheaper than they would have to be to satisfy PPP. © 2008 Worth Publishers ▪ International Economics ▪ Feenstra/Taylor ...
NBER WORKING PAPER SERIES MONETARY STABILIZATION, INTERVENTION AND REAL APPRECIATION Rudiger Dornbusch
... creation induced by exchange market intervention. With capital flows and induced money creation threatening attempts at stabilization, there is a need to understand the relationship between intervention and inflation. ...
... creation induced by exchange market intervention. With capital flows and induced money creation threatening attempts at stabilization, there is a need to understand the relationship between intervention and inflation. ...
New evidence on the puzzles: Results from agnostic identification
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
Identification of Monetary Policy Shocks in Turkey: A Structural VAR Approach
... As emerging economies are more integrated with international economic and …nancial markets, identi…cation of both domestic and external shocks on the domestic economic activities of these countries have recently been extensively analyzed in the literature.1 Identi…cation of monetary policy shocks is ...
... As emerging economies are more integrated with international economic and …nancial markets, identi…cation of both domestic and external shocks on the domestic economic activities of these countries have recently been extensively analyzed in the literature.1 Identi…cation of monetary policy shocks is ...
THE CENTRAL BANK OF THE REPUBLIC OF TURKEY 2000–01 FINANCIAL CRISIS
... which depletes international reserves of central banks—as the main cause of currency collapses.5 This generally materializes through reliance upon seigniorage revenue to finance public sector deficits. There comes a point in time when a rational economic agent will realize that a gradual depletion o ...
... which depletes international reserves of central banks—as the main cause of currency collapses.5 This generally materializes through reliance upon seigniorage revenue to finance public sector deficits. There comes a point in time when a rational economic agent will realize that a gradual depletion o ...
How Did Takahashi Korekiyo Rescue Japan from the Great
... • July 1932: Diet passes the Capital Flight Prevention Act and makes it effective • August 1932: BOJ reduces the ODR • November 1932: BOJ starts underwriting government bonds • March 1933: Diet passes the Foreign Exchange Control Act (effective in May 1933) • April 1933: USA departs from the gold stan ...
... • July 1932: Diet passes the Capital Flight Prevention Act and makes it effective • August 1932: BOJ reduces the ODR • November 1932: BOJ starts underwriting government bonds • March 1933: Diet passes the Foreign Exchange Control Act (effective in May 1933) • April 1933: USA departs from the gold stan ...