13-102 Fixed Exchange Rates
... • Nominal exchange rates – In the past, many currencies operated under a fixed-exchange-rate system, in which exchange rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • ...
... • Nominal exchange rates – In the past, many currencies operated under a fixed-exchange-rate system, in which exchange rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • ...
NBER WORKING PAPER SERIES ADJUSTMENT TO MONETARY POLICY AND
... domestic money balances, foreign bonds, and domestic bonds. Each is a function of the return on domestic bonds (r) and foreign bonds (j*) facing domestic citizens.3 The signs of the partial effects of the various variables are determined by the assumption of gross substutability.4 The analysis takes ...
... domestic money balances, foreign bonds, and domestic bonds. Each is a function of the return on domestic bonds (r) and foreign bonds (j*) facing domestic citizens.3 The signs of the partial effects of the various variables are determined by the assumption of gross substutability.4 The analysis takes ...
Exchange Rates
... and making the appropriate adjustments to the dollar budget so that the spending limit shown reflects what is available to spend; c. When UNDP does the pre-financing before the payment of the last installment - this can be addressed by negotiating from the outset a smaller percentage to be disbursed ...
... and making the appropriate adjustments to the dollar budget so that the spending limit shown reflects what is available to spend; c. When UNDP does the pre-financing before the payment of the last installment - this can be addressed by negotiating from the outset a smaller percentage to be disbursed ...
monetary policy in resource-rich developing economies - cerge-ei
... actions can help improve the allocation problem. In particular, targeting the exchange rate or price level through foreign exchange interventions by the central bank allows for consumption smoothing and avoiding the negative e¤ects of Dutch Disease. Also due to higher intensity in using foreign exc ...
... actions can help improve the allocation problem. In particular, targeting the exchange rate or price level through foreign exchange interventions by the central bank allows for consumption smoothing and avoiding the negative e¤ects of Dutch Disease. Also due to higher intensity in using foreign exc ...
Chapter 17
... a financial trouble and with sever liquidity problems(0.5% above discount rate) Seasonal credit: is given to meet the needs of a limited number of small banks that have s seasonal patterns of deposits. The interest rate charged is linked to federal funds rate. ...
... a financial trouble and with sever liquidity problems(0.5% above discount rate) Seasonal credit: is given to meet the needs of a limited number of small banks that have s seasonal patterns of deposits. The interest rate charged is linked to federal funds rate. ...
Management of Capital Flows in India: 1990-2011
... Asymmetric intervention, unless sterilized, often leads to a sharp increase in reserve money and fuels inflationary pressure. We evaluate the magnitude of sterilization, using empirical tools. We find that between 1998 and 2004, most of the concomitant rise in international reserves was offset by co ...
... Asymmetric intervention, unless sterilized, often leads to a sharp increase in reserve money and fuels inflationary pressure. We evaluate the magnitude of sterilization, using empirical tools. We find that between 1998 and 2004, most of the concomitant rise in international reserves was offset by co ...
Alternatives to inflation targeting in Mexico Luis Miguel Galindo Jaime Ros
... an important concern about the ability of the Central Bank to control the inflation rate in particular under the presence of fiscal or external shocks. In the case of emerging market economies there is further a special concern about the relationship of IT with exchange rate movements, imperfect and ...
... an important concern about the ability of the Central Bank to control the inflation rate in particular under the presence of fiscal or external shocks. In the case of emerging market economies there is further a special concern about the relationship of IT with exchange rate movements, imperfect and ...
Economics of exchange rates and policy options
... equilibrium, the central banks may contract (or expand) the money supply, when output growth declined due to high or low inflation. The macro policy is incentive-compatible with micro investment strategies, which otherwise may fail to revert to the positive equilibrium or the fair value. In the conc ...
... equilibrium, the central banks may contract (or expand) the money supply, when output growth declined due to high or low inflation. The macro policy is incentive-compatible with micro investment strategies, which otherwise may fail to revert to the positive equilibrium or the fair value. In the conc ...
This PDF is a selection from a published volume from... Economic Research
... think it is time to analyze the dynamics and evolution of the system given that its basic parameters will last for some time. 1.2 A Differing Base of Premises In this paper we set out in greater detail how we think about the dynamic forces emanating from the emergence of China and Asia as major playe ...
... think it is time to analyze the dynamics and evolution of the system given that its basic parameters will last for some time. 1.2 A Differing Base of Premises In this paper we set out in greater detail how we think about the dynamic forces emanating from the emergence of China and Asia as major playe ...
Assessing the Impact of Exchange Rate Risk on Banks Performance
... primary determinants of exchange rates. This was due, in part, to the fact that governments maintained tight restrictions on international flows of financial capital. The role of exchange rate changes in eliminating international trade imbalances suggests countries with current trade surpluses are e ...
... primary determinants of exchange rates. This was due, in part, to the fact that governments maintained tight restrictions on international flows of financial capital. The role of exchange rate changes in eliminating international trade imbalances suggests countries with current trade surpluses are e ...
LCcarG715_en.pdf
... monetary union in 1983. The Bahamas, Belize and Barbados also fixed the value of their domestic currency in relation to the United States dollar in the middle o f the 1970s. Soft pegs are monetary arrangements characterized by a forcefully managed exchange rate. Three countries are included in this ...
... monetary union in 1983. The Bahamas, Belize and Barbados also fixed the value of their domestic currency in relation to the United States dollar in the middle o f the 1970s. Soft pegs are monetary arrangements characterized by a forcefully managed exchange rate. Three countries are included in this ...
The Political Economy of Exchange Rate Policy in the Caribbean
... determinants of exchange rate strategy because, in the past 38 years, member countries have experienced a variety of regimes including currency boards, a monetary union, pegs to the US dollar and sterling, a crawling peg, exchange rate auctions and freely floating exchange rates, with and without ce ...
... determinants of exchange rate strategy because, in the past 38 years, member countries have experienced a variety of regimes including currency boards, a monetary union, pegs to the US dollar and sterling, a crawling peg, exchange rate auctions and freely floating exchange rates, with and without ce ...
Chapter 1: Introduction
... euros into $2.00, and buy… the exact same American goods as before. The change in the nominal exchange rate has offset the change in the U.S. price level. In this case the real exchange rate--the rate at which goods trade for goods—has not changed. The terms at which the goods of one country are tra ...
... euros into $2.00, and buy… the exact same American goods as before. The change in the nominal exchange rate has offset the change in the U.S. price level. In this case the real exchange rate--the rate at which goods trade for goods—has not changed. The terms at which the goods of one country are tra ...
ISLM: Part III: The Monetary Sector (with MV=PQ in play)
... supply is managed by thefor central MT ismoney one component of the demand money. bank, i.e, the Federal Reserve. The other component is MSPEC. So, the Fed can increase or decrease MS, as deemed necessary. Keynes took the two components to be additive. As thethe case the hard-drawn version D) of Tha ...
... supply is managed by thefor central MT ismoney one component of the demand money. bank, i.e, the Federal Reserve. The other component is MSPEC. So, the Fed can increase or decrease MS, as deemed necessary. Keynes took the two components to be additive. As thethe case the hard-drawn version D) of Tha ...
Convergence and shocks in the road to EU: Empirical investigations
... Need for good knowledge of the transmission mechanism and good macroeconomic model Need for well defined loss function (output gap) and reaction function (Taylor rule for example) Need for good inflation forecasts (EE never hit the target) Need for very good macro econometric model Need for develope ...
... Need for good knowledge of the transmission mechanism and good macroeconomic model Need for well defined loss function (output gap) and reaction function (Taylor rule for example) Need for good inflation forecasts (EE never hit the target) Need for very good macro econometric model Need for develope ...
MONETARY POLICY OF ALBANIA–DOES A MONETARY
... Increases in interest rates lead to exchange rate appreciation in Indonesia and Korea, but the effect is highly insignificant. Raising the interest rates at the beginning of the crisis leads to higher exchange rate volatilities in Thailand, and the resulting increase in the exchange rate risk premi ...
... Increases in interest rates lead to exchange rate appreciation in Indonesia and Korea, but the effect is highly insignificant. Raising the interest rates at the beginning of the crisis leads to higher exchange rate volatilities in Thailand, and the resulting increase in the exchange rate risk premi ...
Stability as a key factor of the success of the Czech financial system
... High wage growth (much higher than productivity growth) High growth of private and public investment (infrastructure) Strong credit growth Strong capital inflow (high interest rate differential) ...
... High wage growth (much higher than productivity growth) High growth of private and public investment (infrastructure) Strong credit growth Strong capital inflow (high interest rate differential) ...
Determinants of Currency Risk Premiums
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
... As shown in Table 1A, when equation (2) is estimated using OLS the 15 estimated values of ψ s are consistently negative and greater than unity in absolute value. With two exceptions, all the estimates are significant at the 5 percent level. Frankel and Chinn (1991) note that OLS estimates can likely ...
The Usefulness of factor models in forecasting the exchange
... More favorable results are found when we perform the analysis in different periods. When data from the first two years following the adoption of the floating exchange rate regime is removed from the sample there is strong evidence that models that include the factors and macroeconomic variables outp ...
... More favorable results are found when we perform the analysis in different periods. When data from the first two years following the adoption of the floating exchange rate regime is removed from the sample there is strong evidence that models that include the factors and macroeconomic variables outp ...
Does the Canadian economy suffer from Dutch Disease?
... is negatively affected by the appreciation of the Canadian dollar (against the USD). They also strongly believe that the Canadian dollar is mostly driven by oil and commodity prices.5 In the meantime, the brutal fall of the oil price and other commodity prices following the worsening of the financi ...
... is negatively affected by the appreciation of the Canadian dollar (against the USD). They also strongly believe that the Canadian dollar is mostly driven by oil and commodity prices.5 In the meantime, the brutal fall of the oil price and other commodity prices following the worsening of the financi ...
tipec 04/1 - Trent University
... of the US; over 40% of Canada’s GNP now consist of exports, and over 80% of these exports go to the US. NAMU was portrayed as an obvious next step in the process of North American economic integration that began with the introduction of the Canada-US Free Trade Agreement in 1989. Although the debate ...
... of the US; over 40% of Canada’s GNP now consist of exports, and over 80% of these exports go to the US. NAMU was portrayed as an obvious next step in the process of North American economic integration that began with the introduction of the Canada-US Free Trade Agreement in 1989. Although the debate ...