Financial Frictions and Unconventional Monetary Policy in Emerging
... All of this analysis holds with equity claims and debts, both foreign and domestic, denominated in foreign currency, so it does not depend on dollarization per se. But currency mismatches are indeed consequential: matters are quite different if the equity of banks is denominated in domestic currenc ...
... All of this analysis holds with equity claims and debts, both foreign and domestic, denominated in foreign currency, so it does not depend on dollarization per se. But currency mismatches are indeed consequential: matters are quite different if the equity of banks is denominated in domestic currenc ...
Response of Output to Macroeconomic Policies and Conditions in
... in the monetary policy regime from targeting monetary aggregates in 1990 to targeting inflation in 2005 and argued that the new monetary policy was inconsistent with the conditions of Romania’s economy. Kasman, Kirbas-Kasman, and Turgutlu (2008) found that there was monetary policy convergence betwe ...
... in the monetary policy regime from targeting monetary aggregates in 1990 to targeting inflation in 2005 and argued that the new monetary policy was inconsistent with the conditions of Romania’s economy. Kasman, Kirbas-Kasman, and Turgutlu (2008) found that there was monetary policy convergence betwe ...
Three policy tools the Fed use to control money supply and the
... in 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. ...
... in 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. ...
99095115I_en.pdf
... strategy to enhance its effectiveness (given that Central Bank interventions in the currency market are fully disclosed) or to accountability standards being lower than for monetary policy, but rather to its subordination to that policy.5 This being so, one theory might be that the macroeconomic goa ...
... strategy to enhance its effectiveness (given that Central Bank interventions in the currency market are fully disclosed) or to accountability standards being lower than for monetary policy, but rather to its subordination to that policy.5 This being so, one theory might be that the macroeconomic goa ...
1. Introduction 2. The Basic Model
... are essentially diverted away from capital expenditure into consumption, leading to a decline in future output. Alternatively, one can just think of a lower inflation as implying a higher rate of return on money leading agents to substitute capital for money in their wealth portfolios. There are two ...
... are essentially diverted away from capital expenditure into consumption, leading to a decline in future output. Alternatively, one can just think of a lower inflation as implying a higher rate of return on money leading agents to substitute capital for money in their wealth portfolios. There are two ...
the effects of exchange rate on the trade balance in ghana
... that the variability of the real exchange rate is largely accounted for by the changes in the nominal exchange rate (Musila, 2002). One of the most important problems identified in developing economies, especially in Africa, is the deficit in the government budget and balance of payments. These coun ...
... that the variability of the real exchange rate is largely accounted for by the changes in the nominal exchange rate (Musila, 2002). One of the most important problems identified in developing economies, especially in Africa, is the deficit in the government budget and balance of payments. These coun ...
NBER WORKING PAPER SERIES ENDOGENOUS EXCHANGE RATE PASS-THROUGH Michael B. Devereux
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
... then pass-through from exchange rate changes to final consumers will be complete, and imported goods will display considerable price flexibility. On the other hand, if goods prices are fixed in consumer’s currency (LCP, or ‘local currency pricing’), there is no pass-through at all, and imported good ...
ADDICTED TO DOLLARS
... • It produces a measure of dollarization that encompasses both holdings of foreign currency assets by the private sector and the external foreign currency liabilities of the economy. • The inclusion of domestic government debt in foreign currency in the composite index takes explicitly into account ...
... • It produces a measure of dollarization that encompasses both holdings of foreign currency assets by the private sector and the external foreign currency liabilities of the economy. • The inclusion of domestic government debt in foreign currency in the composite index takes explicitly into account ...
Non-Traded Goods, the Trade Balance, and the Balance of Payments
... (recall that gt = t' Vt). However, for this small open economy with a fixed exchange rate, the current supply of money, M,1, is an endogenous variable determinedby the demand for it, M1. Thus, by imposing equilibriumin the money market,or equation (6), one may rewritethe above expression as bl = (M/ ...
... (recall that gt = t' Vt). However, for this small open economy with a fixed exchange rate, the current supply of money, M,1, is an endogenous variable determinedby the demand for it, M1. Thus, by imposing equilibriumin the money market,or equation (6), one may rewritethe above expression as bl = (M/ ...
Week 5
... domestic investors lend abroad minus the amount that foreign investors lend to the U.S. It may be positive or negative. In a small open economy, investment (capital) flows in and out of a country freely at a fixed world interest rate. In the large open economy model the interest rate r is largely a ...
... domestic investors lend abroad minus the amount that foreign investors lend to the U.S. It may be positive or negative. In a small open economy, investment (capital) flows in and out of a country freely at a fixed world interest rate. In the large open economy model the interest rate r is largely a ...
NBER WORKING PAPER SERIES CAPITAL CONTROLS, THE DUAL EXCHANGE RATE, AND Maurice Obstfeld
... The paper is organized as follows. Section I studies the benchmark case of perfect capital mobility, showing that under certain idealized conditions (including interest—bearing official reserves), devaluation is fully neutral, even in the short run. This result was demonstrated previously in Obstfel ...
... The paper is organized as follows. Section I studies the benchmark case of perfect capital mobility, showing that under certain idealized conditions (including interest—bearing official reserves), devaluation is fully neutral, even in the short run. This result was demonstrated previously in Obstfel ...
money and exchange-rate regimes
... sist. However, they do not doubt that the price mechanism is the most efficient means of resource allocation. It is the belief in the ultimately benign nature of the price mechanism, regardless of temporary imperfections and rigidities, that induce the “long-run neutral view” proponents to prescribe ...
... sist. However, they do not doubt that the price mechanism is the most efficient means of resource allocation. It is the belief in the ultimately benign nature of the price mechanism, regardless of temporary imperfections and rigidities, that induce the “long-run neutral view” proponents to prescribe ...
Financial Performance
... • Intervention reduces the money stock and raises the domestic interest rate in panel (b). Which reduces demand for foreign-currency-denominated deposits in panel (a). – Sterilization uses open market operations to offset intervention’s effect on the money stock. • The domestic interest rate fails t ...
... • Intervention reduces the money stock and raises the domestic interest rate in panel (b). Which reduces demand for foreign-currency-denominated deposits in panel (a). – Sterilization uses open market operations to offset intervention’s effect on the money stock. • The domestic interest rate fails t ...
practice exam3
... reserves and the monetary base by influencing the quantity of discount loans; and changes in _____, which affect the money multiplier. A) open market operations; the discount rate; margin requirements. B) open market operations; the discount rate; reserve requirements. C) the discount rate; open mar ...
... reserves and the monetary base by influencing the quantity of discount loans; and changes in _____, which affect the money multiplier. A) open market operations; the discount rate; margin requirements. B) open market operations; the discount rate; reserve requirements. C) the discount rate; open mar ...
Alternative Interpretations of a Stateless Currency
... The prescient conclusion was that “it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) ‘as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do ...
... The prescient conclusion was that “it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) ‘as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do ...
Chapter 2
... • The real exchange rate is the rate at which a person can trade the goods and services of one country for the goods and services of another. ...
... • The real exchange rate is the rate at which a person can trade the goods and services of one country for the goods and services of another. ...
NBER WORKING PAPER SEPJES EXPLAINING THE DURATION OF EXCHANGE-RATE PEGS Michael W. Klein
... multilateral real exchange rate equals the geometrically-weighted product of the bilateral rates, i.e. ...
... multilateral real exchange rate equals the geometrically-weighted product of the bilateral rates, i.e. ...
Ágnes Horváth, Csaba Köber and Katalin Szilágyi: MPM
... match enabled the central bank to prepare reliable, so-called conditional projections.4 For quite some time, central banks considered macroeconometric modelling to be the best practice for preparing inflation forecasts. Conditional projection was seen to assist the decision-making process in that it ...
... match enabled the central bank to prepare reliable, so-called conditional projections.4 For quite some time, central banks considered macroeconometric modelling to be the best practice for preparing inflation forecasts. Conditional projection was seen to assist the decision-making process in that it ...
Aucun titre de diapositive
... Do indeed short-term interest rate and exchange rate directly influence both stability of the prices and aggregate demand? Controlled floating of the exchange rate To which extent tight control exercised by the National Bank of Romania (NBR) over the national currency depreciation rate influen ...
... Do indeed short-term interest rate and exchange rate directly influence both stability of the prices and aggregate demand? Controlled floating of the exchange rate To which extent tight control exercised by the National Bank of Romania (NBR) over the national currency depreciation rate influen ...
Exchange Rate, Inflation and Interest Rates Relationships
... interest rate of one country to the exchange value of her trading partner (Fadli, et al;2011). In other words, interest rate charge in a country is a reflection of the exchange value of the currency of that country and her trading partners(s). Accordingly, the difference in the rate of interest in t ...
... interest rate of one country to the exchange value of her trading partner (Fadli, et al;2011). In other words, interest rate charge in a country is a reflection of the exchange value of the currency of that country and her trading partners(s). Accordingly, the difference in the rate of interest in t ...
Does Currency Union Increase Intra-regional Trade? A Study on Euro:
... According to Mundell (1961), the major cost for a currency union is giving up an independent monetary policy. This cost can be measured using asymmetric shocks across the member countries (Lee, Shin and Park, 2004). Symmetric shocks are usually measured by a correlation between countries. Under this ...
... According to Mundell (1961), the major cost for a currency union is giving up an independent monetary policy. This cost can be measured using asymmetric shocks across the member countries (Lee, Shin and Park, 2004). Symmetric shocks are usually measured by a correlation between countries. Under this ...
