Discussion papers are a series of manuscripts in their draft form
... claim that a chosen macroeconomic policy regime can only succeed in at most two out of three goals: 1) full freedom of cross-border capital movements, 2) a fixed exchange rate, 3) independent monetary policy oriented toward domestic objectives. They argue that the gold standard is the typical case o ...
... claim that a chosen macroeconomic policy regime can only succeed in at most two out of three goals: 1) full freedom of cross-border capital movements, 2) a fixed exchange rate, 3) independent monetary policy oriented toward domestic objectives. They argue that the gold standard is the typical case o ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... If the aggregate elasticity of demand for imports is less than unity, an increase in the average tariff rate increases government revenues and savings at a given level of government expenditures. Purchases of export certificates which carry import entitlement, while they add to the local currency co ...
... If the aggregate elasticity of demand for imports is less than unity, an increase in the average tariff rate increases government revenues and savings at a given level of government expenditures. Purchases of export certificates which carry import entitlement, while they add to the local currency co ...
*Stability* and *Instability* Determinants of International Monetary
... Although the number of case to observe is the only one, the evolution from CMI to CMIM, it can be separated into two cases related to the ‘crisis’ according to the temporal dimensions. – At the same time, by explaining ‘the only one independent variable’, ‘socialization’ with three dimensions, obser ...
... Although the number of case to observe is the only one, the evolution from CMI to CMIM, it can be separated into two cases related to the ‘crisis’ according to the temporal dimensions. – At the same time, by explaining ‘the only one independent variable’, ‘socialization’ with three dimensions, obser ...
The Mexican Peso Crisis - Federal Reserve Bank of Atlanta
... account deficits that deplete foreign exchange reserves. At the same time, capital outflows further deplete reserves unless effective capital controls are in place. Eventually, reserves become so small that devaluation becomes virtually inevitable.6 Mexico was not following either of the above scena ...
... account deficits that deplete foreign exchange reserves. At the same time, capital outflows further deplete reserves unless effective capital controls are in place. Eventually, reserves become so small that devaluation becomes virtually inevitable.6 Mexico was not following either of the above scena ...
PDF
... maintained a managed floating exchange rate regime while Japan freely floated its currency. Under these different exchange rate regimes, no official exchange rate coordination has been attempted. Nonetheless, exchange rates matter. In the context of Japan-Korea economic interdependence, yen-dollar e ...
... maintained a managed floating exchange rate regime while Japan freely floated its currency. Under these different exchange rate regimes, no official exchange rate coordination has been attempted. Nonetheless, exchange rates matter. In the context of Japan-Korea economic interdependence, yen-dollar e ...
Day 4 - Industrial theme - Exchange rates and growth, Kevin Nell
... associated with 1) poor institutions and 2) market failures. • The first-best strategy is to address these distortions directly, but this is not easily done in developing countries. ...
... associated with 1) poor institutions and 2) market failures. • The first-best strategy is to address these distortions directly, but this is not easily done in developing countries. ...
The International Monetary Fund
... characterized by a highly integrated world economy Supported from approximately 1870 to 1914 by an international financial arrangement known as the gold standard • Each country defined the value of its currency in terms of gold • Most countries also held gold as official reserves ...
... characterized by a highly integrated world economy Supported from approximately 1870 to 1914 by an international financial arrangement known as the gold standard • Each country defined the value of its currency in terms of gold • Most countries also held gold as official reserves ...
Document
... money market. Increase in money growth creates a temporary excess supply in the money market. This leads to an increase in inflation. Higher inflation rate exerts two conflicting effects on the equilibrium of the money market: it reduces supply of real money balances (reequilibrate the market); ...
... money market. Increase in money growth creates a temporary excess supply in the money market. This leads to an increase in inflation. Higher inflation rate exerts two conflicting effects on the equilibrium of the money market: it reduces supply of real money balances (reequilibrate the market); ...
Managing Short-Term Capital Flows in New Central Banking
... due to such flows.7 On practical grounds, however, the empirical literature is inconclusive about the effectiveness of such controls.8 It is usually easier for market participants to circumvent the controls as these controls are set only on one part of the financial system (e.g. foreigner’s transac ...
... due to such flows.7 On practical grounds, however, the empirical literature is inconclusive about the effectiveness of such controls.8 It is usually easier for market participants to circumvent the controls as these controls are set only on one part of the financial system (e.g. foreigner’s transac ...
inflation and exchange rate depreciation: a
... The theory by Mundell and Flemming (1960) , considers three markets: money, assets and goods market under perfect price flexibility in the long run. One implication is that devaluation may lead to further devaluation if fiscal discipline, inflation and B.O.P disequilibria are not well managed. Anoth ...
... The theory by Mundell and Flemming (1960) , considers three markets: money, assets and goods market under perfect price flexibility in the long run. One implication is that devaluation may lead to further devaluation if fiscal discipline, inflation and B.O.P disequilibria are not well managed. Anoth ...
Bretton Woods system - Wikipedia, the free encyclopedia
... The experience of the Great Depression was fresh on the minds of public officials. The planners at Bretton Woods hoped to avoid a repeat of the debacle of the 1930s, when intransigent American insistence as a creditor nation on the repayment of Allied war debts, combined with an inclination to isola ...
... The experience of the Great Depression was fresh on the minds of public officials. The planners at Bretton Woods hoped to avoid a repeat of the debacle of the 1930s, when intransigent American insistence as a creditor nation on the repayment of Allied war debts, combined with an inclination to isola ...
Transaction exposure
... • A forward hedge involves a forward (or futures) contract and a source of funds to fulfill the contract. • In some situations, funds to fulfill the forward exchange contract are not already available or due to be received later, but must be purchased in the spot market at some future date. • This t ...
... • A forward hedge involves a forward (or futures) contract and a source of funds to fulfill the contract. • In some situations, funds to fulfill the forward exchange contract are not already available or due to be received later, but must be purchased in the spot market at some future date. • This t ...
dealing with foreign exchange
... In fact, accumulation of FX reserves, mostly in emerging and petrodollar economies, has created huge imbalances in the global economy, what the Federal Reserve Chairman Ben Bernanke dubbed ‘the global savings glut’ (excess intended saving), leading to a fall in global real longterm interest rates. ...
... In fact, accumulation of FX reserves, mostly in emerging and petrodollar economies, has created huge imbalances in the global economy, what the Federal Reserve Chairman Ben Bernanke dubbed ‘the global savings glut’ (excess intended saving), leading to a fall in global real longterm interest rates. ...
Consumption Baskets and Currency Choice in International Borrowing
... Our theory is framed in the context of a small open emerging economy where both domestic and foreign lenders compete to purchase bonds issued by domestic borrowers. Bonds can be issued in both local and foreign currencies, and the currency composition of assets and liabilities is determined in equil ...
... Our theory is framed in the context of a small open emerging economy where both domestic and foreign lenders compete to purchase bonds issued by domestic borrowers. Bonds can be issued in both local and foreign currencies, and the currency composition of assets and liabilities is determined in equil ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... the exchange rate-because the information variable conveys current though incomplete information about the sources of disturbances. Under general conditions macroeconomic outcomes will be better if the financial authorities in a single open economy facing transitory disturbances neither rigidly fix ...
... the exchange rate-because the information variable conveys current though incomplete information about the sources of disturbances. Under general conditions macroeconomic outcomes will be better if the financial authorities in a single open economy facing transitory disturbances neither rigidly fix ...
The Canadian Dollar and Commodity Prices
... Graydon Paulin, Don Coletti, Robert Lafrance, and the participants of the International Department’s seminar series for valuable comments on earlier versions. ...
... Graydon Paulin, Don Coletti, Robert Lafrance, and the participants of the International Department’s seminar series for valuable comments on earlier versions. ...
Interest Rate
... The Discount Rate is the interest rate that the FED charges commercial banks. • If Bank of America needs $10 million to meet their reserve requirement, they may need to borrow it from the U.S. Treasury (which the FED controls) but they must pay it back with interest. • The lower the rate of interest ...
... The Discount Rate is the interest rate that the FED charges commercial banks. • If Bank of America needs $10 million to meet their reserve requirement, they may need to borrow it from the U.S. Treasury (which the FED controls) but they must pay it back with interest. • The lower the rate of interest ...
Free Full Text ( Final Version , 1mb )
... The BWII have been used by DFG to explain the global current account imbalances in the last decade, and DFG have argued that this system of fixed and heavily managed exchange rates is fundamentally stable, and the intervention required to prevent Asian currencies from appreciating will continue to p ...
... The BWII have been used by DFG to explain the global current account imbalances in the last decade, and DFG have argued that this system of fixed and heavily managed exchange rates is fundamentally stable, and the intervention required to prevent Asian currencies from appreciating will continue to p ...
Chapter 16: Foreign Exchange Derivative Markets
... By 1971 the U.S. dollar was clearly overvalued. That is, its value was maintained only by central bank intervention. In 1971, an agreement among all major countries (known as the Smithsonian Agreement) allowed for devaluation of the dollar. In addition, the Smithsonian Agreement called for a widenin ...
... By 1971 the U.S. dollar was clearly overvalued. That is, its value was maintained only by central bank intervention. In 1971, an agreement among all major countries (known as the Smithsonian Agreement) allowed for devaluation of the dollar. In addition, the Smithsonian Agreement called for a widenin ...
THE RELATIONSHIP BETWEEN PRICE LEVEL, MONEY SUPPLY
... market in GDP increases by 1% for each 10% increase in inflation, up to an inflation rate of 100%. The next cost of inflation is the distortion of productive decisions because of uncertainty in the future relative prices, which are crucial for planning investment expenditures. Finally, because taxe ...
... market in GDP increases by 1% for each 10% increase in inflation, up to an inflation rate of 100%. The next cost of inflation is the distortion of productive decisions because of uncertainty in the future relative prices, which are crucial for planning investment expenditures. Finally, because taxe ...
THE ROLE OF INTEREST RATES IN BUSINESS CYCLE
... firms and the government, these goods are then distributed across countries. We extend the basic version of GEM in two ways. First, we allow for balance sheet-related credit market frictions. As will be discussed in detail below, this creates a valuation channel that amplifies the impact of external ...
... firms and the government, these goods are then distributed across countries. We extend the basic version of GEM in two ways. First, we allow for balance sheet-related credit market frictions. As will be discussed in detail below, this creates a valuation channel that amplifies the impact of external ...
Reforming the Transmission Mechanism of Monetary Policy in China
... In 1984, China launched its reserve requirement system. The initial purpose was not to use it as an instrument of monetary policy, but for the PBC to pool funds statutorily from banks to control and balance the credit position of commercial banks. First, the statutory reserve could not used for paym ...
... In 1984, China launched its reserve requirement system. The initial purpose was not to use it as an instrument of monetary policy, but for the PBC to pool funds statutorily from banks to control and balance the credit position of commercial banks. First, the statutory reserve could not used for paym ...
NBER WORKING PAPER SERIES FEAR OF SUDDEN STOPS: Ricardo Caballero
... Despite these similarities, external shocks have had much milder macroeconomic consequences in Australia. Why Chile? Because on one hand Chile is arguably the most advanced economy in Latin America in terms of institutional development and macroeconomic stability, and in this sense the closest to Au ...
... Despite these similarities, external shocks have had much milder macroeconomic consequences in Australia. Why Chile? Because on one hand Chile is arguably the most advanced economy in Latin America in terms of institutional development and macroeconomic stability, and in this sense the closest to Au ...
NBER WORKING PAPER SERIES DYNAMIC STRATEGIC MONETARY POLICIES AND COORDINATION IN INTERDEPENDENT ECONOMIES
... In order to see how the strategic problem is generated, suppose that prior to time 1 the two monetary authorities have been allowing their respective nominal money stocks to follow exogenous time paths. From equations (10) we see that the real exchange rate s1 is generated by ...
... In order to see how the strategic problem is generated, suppose that prior to time 1 the two monetary authorities have been allowing their respective nominal money stocks to follow exogenous time paths. From equations (10) we see that the real exchange rate s1 is generated by ...