PDF
... (negative). If U.S. dollar appreciation causes more supply shock in the domestic food and agricultural markets than other commodity groups, the expected sign of δ is negative. Different lag lengths are important in examining the main hypothesis of the paper. If we believe that the inflation rate cau ...
... (negative). If U.S. dollar appreciation causes more supply shock in the domestic food and agricultural markets than other commodity groups, the expected sign of δ is negative. Different lag lengths are important in examining the main hypothesis of the paper. If we believe that the inflation rate cau ...
Interbank lending rates and monetary policy in China
... exchange rate and allow capital to move freely at the same time (Obstfeld and Rogoff 1996). With China being a country of low capital mobility, i.e. without free capital movement, this provides theoretical grounding for treating the exchange rate and domestic credit as policy variables. The Mundell- ...
... exchange rate and allow capital to move freely at the same time (Obstfeld and Rogoff 1996). With China being a country of low capital mobility, i.e. without free capital movement, this provides theoretical grounding for treating the exchange rate and domestic credit as policy variables. The Mundell- ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
Monetary Policy - John Zietlow
... • The Keynesian cure for unemployment is to expand M and lower interest rates • Using the equation of exchange, Monetarists fear an increase in M will lead to higher P – Rather than leading us out of recession, expansionary monetary policies heap inflation on top of our unemployment woes ...
... • The Keynesian cure for unemployment is to expand M and lower interest rates • Using the equation of exchange, Monetarists fear an increase in M will lead to higher P – Rather than leading us out of recession, expansionary monetary policies heap inflation on top of our unemployment woes ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... 4.1 Introduction This paper reviews exchange rate arrangements that deviate from unrestricted convertibility at uniform fixed or flexible exchange rates. Broadly, these alternatives are called “multiple exchange rate practices,” which are formally defined by International Monetary Fund (1981, 2 3 ) ...
... 4.1 Introduction This paper reviews exchange rate arrangements that deviate from unrestricted convertibility at uniform fixed or flexible exchange rates. Broadly, these alternatives are called “multiple exchange rate practices,” which are formally defined by International Monetary Fund (1981, 2 3 ) ...
A Guided Tour of the Market Microstructure Approach to
... Stock Exchange (LSE), where transactions are the result of private bilateral “meetings” between traders. In the past these meetings have generally been conducted on the phone. Nowadays, though, FX dealers employ electronic communication systems, such as the Reuters Dealing 3000 spot matching system. ...
... Stock Exchange (LSE), where transactions are the result of private bilateral “meetings” between traders. In the past these meetings have generally been conducted on the phone. Nowadays, though, FX dealers employ electronic communication systems, such as the Reuters Dealing 3000 spot matching system. ...
Fair Rates of Interest in Post
... translated fairly directly into Wicksellian terms. The monetary authorities can make the market rate less than the natural rate only by inflation.” ...
... translated fairly directly into Wicksellian terms. The monetary authorities can make the market rate less than the natural rate only by inflation.” ...
eee06-Wojcik2 3772761 en
... compression ( µ < µ ∗ ) moves actual inflation above expected inflation whereas markup expansion ( µ > µ ∗ ) moves actual inflation below expected inflation. Stickiness of prices means that current employment and output are determined by the aggregate demand for goods. This outcome is central to the ...
... compression ( µ < µ ∗ ) moves actual inflation above expected inflation whereas markup expansion ( µ > µ ∗ ) moves actual inflation below expected inflation. Stickiness of prices means that current employment and output are determined by the aggregate demand for goods. This outcome is central to the ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATE TARGETING AND MACROECONOMIC INSTABILITY Martín Uribe
... key to understanding the intuition behind our indeterminacy result lies in the relationship between the current level of the real exchange rate and expected devaluations implied by the model. In a small open economy, the nominal interest rate is, loosely speaking, an increasing function of the expec ...
... key to understanding the intuition behind our indeterminacy result lies in the relationship between the current level of the real exchange rate and expected devaluations implied by the model. In a small open economy, the nominal interest rate is, loosely speaking, an increasing function of the expec ...
PDF
... 1971, great part of the developed and industrialized countries started to adopt the regimen of floating exchange rates, which received a boost with the opening and financial integration of the market. Whereas in 1990s, this process increased more, reaching the emerging countries. However, this integ ...
... 1971, great part of the developed and industrialized countries started to adopt the regimen of floating exchange rates, which received a boost with the opening and financial integration of the market. Whereas in 1990s, this process increased more, reaching the emerging countries. However, this integ ...
china`s foreign exchange black market and exchange flight
... black market. Furthermore, the startling figures from the Direction of Trade Statistics (IMF, various issues) show that one-third of China’s exports receipts were left abroad unreported. Whenever the official rate is distorted arbitrarily by a large margin, transactions on the foreign currency black ...
... black market. Furthermore, the startling figures from the Direction of Trade Statistics (IMF, various issues) show that one-third of China’s exports receipts were left abroad unreported. Whenever the official rate is distorted arbitrarily by a large margin, transactions on the foreign currency black ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value highly unpredictable. As a result, people save by hoarding bricks, timbers, food, and other commodities ...
... exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value highly unpredictable. As a result, people save by hoarding bricks, timbers, food, and other commodities ...
Technical Trading-Rule Profitability, Data Snooping, and Reality
... over a benchmark. This methodology allows data mining to be undertaken with some degree of confidence that one will not mistake results that might be generated by pure chance for genuinely good ones.4 This paper studies the profitability of technical trading rules in the FX market and examines the b ...
... over a benchmark. This methodology allows data mining to be undertaken with some degree of confidence that one will not mistake results that might be generated by pure chance for genuinely good ones.4 This paper studies the profitability of technical trading rules in the FX market and examines the b ...
Equilibrium Exchange Rates - National Bureau of Economic Research
... subsequent price increase. During the adjustment implied by the Dornbusch model, we would see a depreciation and then a subsequent appreciation of the real exchange rate. The view that nominal shocks produce temporary disequilibrium real exchange rates depends on the belief that nominal prices are a ...
... subsequent price increase. During the adjustment implied by the Dornbusch model, we would see a depreciation and then a subsequent appreciation of the real exchange rate. The view that nominal shocks produce temporary disequilibrium real exchange rates depends on the belief that nominal prices are a ...
Exchange Rate Volatility and International Trade
... effective exchange rate volatility is also found to have a negative effect on a firm’s export decision. It appears that if policy makers wish to promote exports, especially as the Indian growth rate keeps faltering in recent times, they ought to focus their efforts on stemming steady appreciation of ...
... effective exchange rate volatility is also found to have a negative effect on a firm’s export decision. It appears that if policy makers wish to promote exports, especially as the Indian growth rate keeps faltering in recent times, they ought to focus their efforts on stemming steady appreciation of ...
Why are some exchange rates more volatile than others? Evidence from
... of GDP in 2005 and 6,1 per cent in the …rst half of 2006). Figure 1 illustrates that, except for the Chilean peso, every economy among the ten worst-performing currencies against the dollar this year is expected to record de…cits on their current accounts in 2005 (and eight of the ten worst currency ...
... of GDP in 2005 and 6,1 per cent in the …rst half of 2006). Figure 1 illustrates that, except for the Chilean peso, every economy among the ten worst-performing currencies against the dollar this year is expected to record de…cits on their current accounts in 2005 (and eight of the ten worst currency ...
Document
... target a market interest rate the Fed must adjust the money supply as necessary when the demand for money changes To target the money supply the Fed must permit the interest rate to vary when the demand for money changes ...
... target a market interest rate the Fed must adjust the money supply as necessary when the demand for money changes To target the money supply the Fed must permit the interest rate to vary when the demand for money changes ...
transparency and credibility of monetary policy in transition countries
... The are several common features in the transitional trajectories of post-command economies. First of all, at the beginning of transformation process1, all countries had to cope with high inflation. In many cases inflation was the result of price liberalisation, the lifting of administrated prices, ...
... The are several common features in the transitional trajectories of post-command economies. First of all, at the beginning of transformation process1, all countries had to cope with high inflation. In many cases inflation was the result of price liberalisation, the lifting of administrated prices, ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... The model treats the world prices of imported goods as exogenous data. On the export side, export volumes are sensitive to differences between Turkey’s own export prices and the world prices of other country’s exports, measured in dollars. The dollar prices of Turkey’s exports are endogenously deter ...
... The model treats the world prices of imported goods as exogenous data. On the export side, export volumes are sensitive to differences between Turkey’s own export prices and the world prices of other country’s exports, measured in dollars. The dollar prices of Turkey’s exports are endogenously deter ...
impact of exchange rate on trade and gdp for india a study of last
... crucial to the implementation of successful trade policy. In an economic climate where countries are focused on improving their output, often by permitting their currencies to lose value, this topic has become increasingly important. Standard theory dictates that these countries should be able to im ...
... crucial to the implementation of successful trade policy. In an economic climate where countries are focused on improving their output, often by permitting their currencies to lose value, this topic has become increasingly important. Standard theory dictates that these countries should be able to im ...
` ` ` Money and Banking - E-SGH
... The interest rate = the payment (% a year), made by borrower to a lender in exchange for the use of the amount lent The marginal benefit of holding money declines with the amount of money held. When the individual is holding so much money that there is no worry about running out of cash, holding ...
... The interest rate = the payment (% a year), made by borrower to a lender in exchange for the use of the amount lent The marginal benefit of holding money declines with the amount of money held. When the individual is holding so much money that there is no worry about running out of cash, holding ...
Dollarization in Latin America Barry Comerford, Emmet Ryan and Marton Gyongyosi
... Let us examine the economic history of the continent in question. Why is it that Latin American countries seem forced to choose between two extremes - to float or to fix their exchange rates? In short, many intermediate possibilities have already been tried with limited success. In the 1960s there w ...
... Let us examine the economic history of the continent in question. Why is it that Latin American countries seem forced to choose between two extremes - to float or to fix their exchange rates? In short, many intermediate possibilities have already been tried with limited success. In the 1960s there w ...
Financial globalization and exchange rates
... by GDP or by domestic financial variables (Lane and Milesi-Ferretti 2003a, Obstfeld and Taylor 2004). In addition to larger gross positions, financial globalization has also allowed a greater dispersion in net foreign asset positions, with a significant number of countries emerging as either large n ...
... by GDP or by domestic financial variables (Lane and Milesi-Ferretti 2003a, Obstfeld and Taylor 2004). In addition to larger gross positions, financial globalization has also allowed a greater dispersion in net foreign asset positions, with a significant number of countries emerging as either large n ...
Transmitting shocks to the economy: credit channel
... interest rate, the exchange rate and the credit channels in transmitting shocks in an open economy. Incomplete or erroneous understanding of the transmission mechanisms may cause delayed or inappropriate policy responses that can have harmful and long lasting effects on the economy. To conduct policy ...
... interest rate, the exchange rate and the credit channels in transmitting shocks in an open economy. Incomplete or erroneous understanding of the transmission mechanisms may cause delayed or inappropriate policy responses that can have harmful and long lasting effects on the economy. To conduct policy ...
Greek exchange rate policies for the EMU. The economy, the public and the Euro.
... based on expectations of future exchange rates, under the Lamfalussy rule, future exchange rates would be based on present and past buy and sell decisions’(Temperton, 1997: 137). In other words, with time, markets would become increasingly more aware of the final conversion rates, as the average wou ...
... based on expectations of future exchange rates, under the Lamfalussy rule, future exchange rates would be based on present and past buy and sell decisions’(Temperton, 1997: 137). In other words, with time, markets would become increasingly more aware of the final conversion rates, as the average wou ...