Rumen_5_ALTERNATIVI_br2_2016
... increasing the liquidity of the reserve currency and risking the convertibility of the central currency against gold. Once one of the central countries had abandoned the gold standard, the peripheral countries, bound by its currency, were also forced to do it. That happened with the countries from " ...
... increasing the liquidity of the reserve currency and risking the convertibility of the central currency against gold. Once one of the central countries had abandoned the gold standard, the peripheral countries, bound by its currency, were also forced to do it. That happened with the countries from " ...
The Measurement of Co-Circulation of Currencies and Dollarization
... Currency substitution in developing and Eastern European countries is usually one of the consequences of high and variable inflation. High inflation, in turn, leads to dollarization and eventually to currency substitution. However, high inflation is not the only cause of dollarization. The issue of ...
... Currency substitution in developing and Eastern European countries is usually one of the consequences of high and variable inflation. High inflation, in turn, leads to dollarization and eventually to currency substitution. However, high inflation is not the only cause of dollarization. The issue of ...
Level of the Real Exchange Rate and Endogenous Elasticities
... investment decisions that not may be reverted later. In this vein, the structure of the market is changed with permanent effects on growth. Baldwin and Krugman (1989) also confirm this view, proposing that large exchange rate fluctuations lead to entry or exit decisions that are not reversed when th ...
... investment decisions that not may be reverted later. In this vein, the structure of the market is changed with permanent effects on growth. Baldwin and Krugman (1989) also confirm this view, proposing that large exchange rate fluctuations lead to entry or exit decisions that are not reversed when th ...
Questions For The Central Bank Of The Republic
... change in the nominal exchange rate. Uncovered interest rate parity does not necessarily hold all the time. However, when there are deviations from the parity, appropriate flows of capital will tend to establish the parity again. Specifically, an increase in the home country interest rate will attra ...
... change in the nominal exchange rate. Uncovered interest rate parity does not necessarily hold all the time. However, when there are deviations from the parity, appropriate flows of capital will tend to establish the parity again. Specifically, an increase in the home country interest rate will attra ...
Slides for Chapter 9 - Columbia University
... At market exchange rates GDP per capita in the United States in 2011 was 32 times as large as that of India. However, at PPP exchange rate U.S. per capita GDP was only 11 times as large as that of India. ⇒ $1,533 can buy 3 times as many goods in India (at Indian prices) than it can in the U.S. at U. ...
... At market exchange rates GDP per capita in the United States in 2011 was 32 times as large as that of India. However, at PPP exchange rate U.S. per capita GDP was only 11 times as large as that of India. ⇒ $1,533 can buy 3 times as many goods in India (at Indian prices) than it can in the U.S. at U. ...
The Negative Rate Chrono-Synclastic Infundibula
... important to understand that the motive for the DNB’s policy has not been to increase lending in Denmark, in fact it is the exact opposite. The Danish central bank imposed negative rates to alleviate pressure on the currency to appreciate and to stem capital inflows. The taxation of Dkr base money a ...
... important to understand that the motive for the DNB’s policy has not been to increase lending in Denmark, in fact it is the exact opposite. The Danish central bank imposed negative rates to alleviate pressure on the currency to appreciate and to stem capital inflows. The taxation of Dkr base money a ...
Long-Run Monetary Neutrality and Contemporary Policy Analysis
... money-growth (and inflation) rates do not have sustained effects on real variables. In particular, it does not rule out permanent effects on levels of output, consumption, real interest rates, etc. In fact, an increased (for example) inflation rate will normally imply an increased nominal interest r ...
... money-growth (and inflation) rates do not have sustained effects on real variables. In particular, it does not rule out permanent effects on levels of output, consumption, real interest rates, etc. In fact, an increased (for example) inflation rate will normally imply an increased nominal interest r ...
The Effects of Budget Deficit Reduction on the Exchange Rate
... budget deficits simply by printing money, or having the deficit “monetized” by the monetary authority, many analysts believe that a projected string of budget deficits eventually leads to higher inflation. Therefore, if a country reduces its budget deficit, long-term inflation expectations could dec ...
... budget deficits simply by printing money, or having the deficit “monetized” by the monetary authority, many analysts believe that a projected string of budget deficits eventually leads to higher inflation. Therefore, if a country reduces its budget deficit, long-term inflation expectations could dec ...
Oil Price, Exchange Rate and the Indian Macro Economy
... The first part of the present work is to study how variations in oil prices affect the Indian macro economy (price, output, interest rate, exchange rate). India is the fourth largest oil importer in the world after US, Japan and China. Its demand for oil is expected to rise very fast in the future ...
... The first part of the present work is to study how variations in oil prices affect the Indian macro economy (price, output, interest rate, exchange rate). India is the fourth largest oil importer in the world after US, Japan and China. Its demand for oil is expected to rise very fast in the future ...
Models of Economic and Financial Crises
... index of vulnerability is sometimes based on a weighted average of percentage changes in nominal exchange rates, gross international reserves and short-term interest rate differentials (e.g. local versus US rates when dealing with crises in the Philippines). Explanatory variables typically would be ...
... index of vulnerability is sometimes based on a weighted average of percentage changes in nominal exchange rates, gross international reserves and short-term interest rate differentials (e.g. local versus US rates when dealing with crises in the Philippines). Explanatory variables typically would be ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... euro zone, if, say, the Bank of France believed that putting more francs (i.e., the former French currency) into circulation would keep prices stable in the midst of heightened economic activity, the central bank could buy a bond from the government, printing francs to do so, and the government coul ...
... euro zone, if, say, the Bank of France believed that putting more francs (i.e., the former French currency) into circulation would keep prices stable in the midst of heightened economic activity, the central bank could buy a bond from the government, printing francs to do so, and the government coul ...
Long-Horizon Forecasts of Asset Prices when the Discount Factor is
... have power advantages when there is a persistent predictable component in the asset return. More recently, Mark and Sul (2006) study the same model of Campbell (2001) and find that long-horizon regressions have an asymptotic power advantage over the short-horizon regressions if the regressor is endo ...
... have power advantages when there is a persistent predictable component in the asset return. More recently, Mark and Sul (2006) study the same model of Campbell (2001) and find that long-horizon regressions have an asymptotic power advantage over the short-horizon regressions if the regressor is endo ...
Trading Behaviors Under Floating Exchange Rate System: An Analysis of South Korea’s Financial Market
... increase in institutions’ longer-term hedging demand and the high volatility of the underlying exchange rate, i.e., Korean Won, during the 4th quarter of 2004. In South Korea’s financial market, the three major investor groups with high trading activity relationships in the spot and future foreign e ...
... increase in institutions’ longer-term hedging demand and the high volatility of the underlying exchange rate, i.e., Korean Won, during the 4th quarter of 2004. In South Korea’s financial market, the three major investor groups with high trading activity relationships in the spot and future foreign e ...
Energy prices and the real exchange rate of commodity
... to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously determined, the final effect will be an appreciation of the real exchange rate. Overall, equation (6) illustrates that any change in the terms-of-trade yields a one- ...
... to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously determined, the final effect will be an appreciation of the real exchange rate. Overall, equation (6) illustrates that any change in the terms-of-trade yields a one- ...
PDF
... to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously determined, the final effect will be an appreciation of the real exchange rate. Overall, equation (6) illustrates that any change in the terms-of-trade yields a one- ...
... to raise wages, which in turn will translate into higher non-traded goods prices. As the price of the primary commodity is exogenously determined, the final effect will be an appreciation of the real exchange rate. Overall, equation (6) illustrates that any change in the terms-of-trade yields a one- ...
Monetary Unions, External Shocks and Economic Performance
... Political coordination across countries. ...
... Political coordination across countries. ...
Macroeconomic Policy for Growth and Poverty Reduction: An
... macroeconomic management is unnecessary. If that full employment outcome is unique, given the parameters of the economy, then there is no justification for macroeconomic intervention. In this case, monetary and fiscal policies should be neutral, and the exchange rate should “float” without intervent ...
... macroeconomic management is unnecessary. If that full employment outcome is unique, given the parameters of the economy, then there is no justification for macroeconomic intervention. In this case, monetary and fiscal policies should be neutral, and the exchange rate should “float” without intervent ...
Identification of US Monetary Policy Shocks
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
exchange rate pass-through in india
... framework based on open economy macro models, find a positive and significant relationship between inflation and exchange rate pass—through to domestic prices across regimes. Zorzi, Hahn, and Sanchez (2007) also found that the degree of exchange rate passthrough to prices for a number of emerging ma ...
... framework based on open economy macro models, find a positive and significant relationship between inflation and exchange rate pass—through to domestic prices across regimes. Zorzi, Hahn, and Sanchez (2007) also found that the degree of exchange rate passthrough to prices for a number of emerging ma ...
Exchange rates, expected returns and risk: UIP unbound CAMA
... relationship between exchange rates and interest rates.2 A no-arbitrage condition - uncovered interest parity (UIP) - implies a close link between exchange rates and relative interest returns, but evidence of that link has proved elusive. Empirical tests of UIP fail systematically across currency pa ...
... relationship between exchange rates and interest rates.2 A no-arbitrage condition - uncovered interest parity (UIP) - implies a close link between exchange rates and relative interest returns, but evidence of that link has proved elusive. Empirical tests of UIP fail systematically across currency pa ...
DOES MONETARY POLICY INFLUENCE ECONOMIC GROWTH IN
... external balance, and the promotion of long-run economic growth. Evidence in the Nigerian economy has shown that since the 1980’s some relationship exist between the stock of money and economic growth or economic activity. Over the years, Nigeria has been controlling her economy through variation in ...
... external balance, and the promotion of long-run economic growth. Evidence in the Nigerian economy has shown that since the 1980’s some relationship exist between the stock of money and economic growth or economic activity. Over the years, Nigeria has been controlling her economy through variation in ...
Factors Influencing Emerging Market Central Banks` Decision
... Appendices 1. Notes on Foreign Exchange Intervention Data Utilized in Model ..................................... 25 References ............................................................................................................................... 27 ...
... Appendices 1. Notes on Foreign Exchange Intervention Data Utilized in Model ..................................... 25 References ............................................................................................................................... 27 ...
R C Morris Goldstein ENMINBI
... dollar), the depreciation has been large despite sizable current account surpluses. If the Asian currencies do not lead the way in the needed second wave of dollar depreciation, either the resulting overall depreciation of the dollar will be too small, or the burden of appreciation will fall heavily ...
... dollar), the depreciation has been large despite sizable current account surpluses. If the Asian currencies do not lead the way in the needed second wave of dollar depreciation, either the resulting overall depreciation of the dollar will be too small, or the burden of appreciation will fall heavily ...
Ocena procesów gospodarczych Czerwiec 2004
... Reconciling direct inflation targeting strategy with simultaneous membership in a guasi-fixed exchange rate system DIT strategy within ERM II will be bound by the expected interpretation of exchange rate stability criterion o o ...
... Reconciling direct inflation targeting strategy with simultaneous membership in a guasi-fixed exchange rate system DIT strategy within ERM II will be bound by the expected interpretation of exchange rate stability criterion o o ...