Sorensen-Chapter 17
... The relationship between the short-term and the long-term interest rate: The expectations hypothesis and the yield curve The ex ante versus the ex post real interest rate Poperties of the AD curve, including the importance of monetary policy for the position and the slope of the curve ...
... The relationship between the short-term and the long-term interest rate: The expectations hypothesis and the yield curve The ex ante versus the ex post real interest rate Poperties of the AD curve, including the importance of monetary policy for the position and the slope of the curve ...
NBER WORKING PAPER SERIES EXCHANGE RATE PASS-THROUGH AND MONETARY POLICY
... Constitutional Convention of 1787, policymakers recognized that monetary systems without a nominal anchor--that is, systems which relied on paper money not backed by gold or other commodities--were prone to large currency devaluations and high inflation. The lack of a nominal anchor is one of the re ...
... Constitutional Convention of 1787, policymakers recognized that monetary systems without a nominal anchor--that is, systems which relied on paper money not backed by gold or other commodities--were prone to large currency devaluations and high inflation. The lack of a nominal anchor is one of the re ...
Report on China's Foreign Exchange Reserves
... growth, unfavorable to achieving the transform to domestic-demand-led economic growth mode. Under the background of weak domestic demand and lack of realization of consumption fueling economic growth, China's foreign exchange reserves surge through exporting large volumes of primary resource product ...
... growth, unfavorable to achieving the transform to domestic-demand-led economic growth mode. Under the background of weak domestic demand and lack of realization of consumption fueling economic growth, China's foreign exchange reserves surge through exporting large volumes of primary resource product ...
Time Consistency of Monetary Policy in Separating Exchange Markets
... exchange rate regime. Section III deals with the credibility of monetary policy. Section IV draws some conclusions. II. The Nature of the Dual Exchange Rate System The general assumptions about the domestic economy, a small open economy, adopting separate exchange markets will be given as follows. T ...
... exchange rate regime. Section III deals with the credibility of monetary policy. Section IV draws some conclusions. II. The Nature of the Dual Exchange Rate System The general assumptions about the domestic economy, a small open economy, adopting separate exchange markets will be given as follows. T ...
The Federal Reserve and Monetary Policy
... • In inflationary times, the Fed decreases money supply to check (decrease) aggregate ...
... • In inflationary times, the Fed decreases money supply to check (decrease) aggregate ...
Paul de Grauwe
... The previous exchange rate models have been thoroughly tested since at least twenty years. Three major conclusions stand out from this vast empirical literature. First, even if economic agents were able to perfectly forecast the future path of the fundamentals, this would not produce a better foreca ...
... The previous exchange rate models have been thoroughly tested since at least twenty years. Three major conclusions stand out from this vast empirical literature. First, even if economic agents were able to perfectly forecast the future path of the fundamentals, this would not produce a better foreca ...
Study of the Behavior of the Indonesian Rupiah/US Dollar
... Slovakia is positively influenced by deficit spending/GDP ratio and the stock price index and negatively associated with real M2, the US Treasury bill rate, country risk, and the expected inflation rate. The error variance can be characterized by the GARCH process. Hsing (2007) shows that the US dol ...
... Slovakia is positively influenced by deficit spending/GDP ratio and the stock price index and negatively associated with real M2, the US Treasury bill rate, country risk, and the expected inflation rate. The error variance can be characterized by the GARCH process. Hsing (2007) shows that the US dol ...
ECONOMIC POLICY AND THE REAL EXCHANGE RATE: RUSSIA
... nominal exchange rate, and can implement this policy by buying and selling dollars at the stipulated nominal rate. But they cannot fix the real exchange rate in a similar fashion. A oneline explanation of this “policy impotence” is that one cannot in the final analysis determine a real variable thro ...
... nominal exchange rate, and can implement this policy by buying and selling dollars at the stipulated nominal rate. But they cannot fix the real exchange rate in a similar fashion. A oneline explanation of this “policy impotence” is that one cannot in the final analysis determine a real variable thro ...
Exchange rate, output and employment: revisiting the contractionary devaluation hypothesis Saúl Keifman
... internal balance (full employment and price stability) and external balance (a current account balance consistent with sustainable capital flows) required two kinds of policies: expenditureswitching policies, to reallocate expenditure between tradable and nontradable goods, and expenditure-reducing ...
... internal balance (full employment and price stability) and external balance (a current account balance consistent with sustainable capital flows) required two kinds of policies: expenditureswitching policies, to reallocate expenditure between tradable and nontradable goods, and expenditure-reducing ...
Competitiveness of Swiss companies
... inflation being persistently negative or – in the worst case – to a downward price spiral. This is particularly a risk when the speed of an appreciation leaves companies virtually no time to adjust, and the appreciation is thus combined with widespread upheaval in the real economy. These destabilis ...
... inflation being persistently negative or – in the worst case – to a downward price spiral. This is particularly a risk when the speed of an appreciation leaves companies virtually no time to adjust, and the appreciation is thus combined with widespread upheaval in the real economy. These destabilis ...
Currency Investor Roundtable
... overall strategy and whether the currency manager is expected to implement a currency hedge as well, then clearly the manager chosen has to be able to meet these demands. If the currency manager doesn’t have to hedge the assets or is part of a multi-manager program, then the way is open to consider ...
... overall strategy and whether the currency manager is expected to implement a currency hedge as well, then clearly the manager chosen has to be able to meet these demands. If the currency manager doesn’t have to hedge the assets or is part of a multi-manager program, then the way is open to consider ...
Financial Stability vs. the Taylor Rule
... The inflation target of 2% is expressed in terms of an annual rate of inflation based on the Consumer Prices Index (CPI). The remit is not to achieve the lowest possible inflation rate. Inflation below the target of 2% is judged to be just as bad as inflation above the target. The inflation target i ...
... The inflation target of 2% is expressed in terms of an annual rate of inflation based on the Consumer Prices Index (CPI). The remit is not to achieve the lowest possible inflation rate. Inflation below the target of 2% is judged to be just as bad as inflation above the target. The inflation target i ...
Predictability of Exchange Rates in Sri Lanka: A Test of
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
... The foreign exchange market of Sri Lanka comprises two tiers, namely, the wholesale market (inter-bank market) and the retail market (client market). The wholesale market consists of all licensed commercial banks. The transactions in the wholesale market partly emanate from the transactions in the r ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... demand and output at will. Woodford scrutinizes each of these hypotheses under the lens of modern monetary theory, finding little or no support for any of them. Even in the limiting case of an economy of negligible size, with access to complete international financial markets and an arbitrarily larg ...
... demand and output at will. Woodford scrutinizes each of these hypotheses under the lens of modern monetary theory, finding little or no support for any of them. Even in the limiting case of an economy of negligible size, with access to complete international financial markets and an arbitrarily larg ...
The advantages and disadvantages of various exchange rate regimes
... the assumption that the country in question is too small to affect the commodity price on world markets. Operationally, the most practical way to implement the PEP proposal might be for the local central bank to announce a daily exchange rate against the dollar that varies perfectly with the dollar ...
... the assumption that the country in question is too small to affect the commodity price on world markets. Operationally, the most practical way to implement the PEP proposal might be for the local central bank to announce a daily exchange rate against the dollar that varies perfectly with the dollar ...
From Gold to Paper and Back Again Transcript
... about the correct value of money. His preferred monetary standard, silver, was becoming increasingly scarce and it was his responsibility to try and correct this matter. Gold coins were simply driving silver ones out of domestic existence. The question he was wrestling with was whether he could use ...
... about the correct value of money. His preferred monetary standard, silver, was becoming increasingly scarce and it was his responsibility to try and correct this matter. Gold coins were simply driving silver ones out of domestic existence. The question he was wrestling with was whether he could use ...
Europe Will Form a Momentary Union Eventually
... Germany was the anchor of the fixed exchange rate system at the time, the other countries were forced to increase their interest rates as well, leading to deeper recessions for them and also making their goods less competitive. There have atso been other frictions on the path to monetary integration ...
... Germany was the anchor of the fixed exchange rate system at the time, the other countries were forced to increase their interest rates as well, leading to deeper recessions for them and also making their goods less competitive. There have atso been other frictions on the path to monetary integration ...
Historical precedents for the internationalization of the RMB
... eventually became the law establishing the Federal Reserve. There is no question that this was a small elite taking steps that did not have broad support. Attempts to found a national bank earlier in American history had foundered on populist suspicion of Eastern banking interests, and this attempt ...
... eventually became the law establishing the Federal Reserve. There is no question that this was a small elite taking steps that did not have broad support. Attempts to found a national bank earlier in American history had foundered on populist suspicion of Eastern banking interests, and this attempt ...
Chapter 5: Open Economy In an open economy, Y = C + I + G + NX
... The accounting identity says NX = S – I We saw earlier how S – I is determined: S depends on domestic factors (output, fiscal ...
... The accounting identity says NX = S – I We saw earlier how S – I is determined: S depends on domestic factors (output, fiscal ...
Sweder van Wijnbergen
... resolution of inconsistent implications of different policy instrucments under ...
... resolution of inconsistent implications of different policy instrucments under ...
On a Tractable Small Open Economy Model with Endogenous Monetary-policy Trade-offs
... and producer price inflation index. Movements in the international real exchange rate must also be taken into account explicitly in the small open economy monetary policy problem. Arguably, such a conclusion is indeed what practitioners in small open economy central banks have already been doing. Fo ...
... and producer price inflation index. Movements in the international real exchange rate must also be taken into account explicitly in the small open economy monetary policy problem. Arguably, such a conclusion is indeed what practitioners in small open economy central banks have already been doing. Fo ...
Chapter 3 PowerPoint
... To meet reserve requirements, depository institutions must transact with Fed in monetary base assets. They either deposit adequate reserves at FRB or maintain adequate cash in vault Either way, reserves - required or excess - earn no interest. The more cash or reserves an institution holds above its ...
... To meet reserve requirements, depository institutions must transact with Fed in monetary base assets. They either deposit adequate reserves at FRB or maintain adequate cash in vault Either way, reserves - required or excess - earn no interest. The more cash or reserves an institution holds above its ...
China`s exchange rate policy
... focused on the fact that export growth has been slowing down in China. Therefore, a depreciation of the yuan is needed to make Chinese exports more competitive. The present paper argues that now in China, the exchange rate is actually more useful as a nominal anchor than as an expenditure-switching ...
... focused on the fact that export growth has been slowing down in China. Therefore, a depreciation of the yuan is needed to make Chinese exports more competitive. The present paper argues that now in China, the exchange rate is actually more useful as a nominal anchor than as an expenditure-switching ...
Fixed Exchange Rate and the Autonomy of Monetary
... 1972. Finally, the central bank of the Comoros issues the Comorian franc. Thus, the name “CFA franc zone” is misleading—besides the Comorian and French francs there are two distinct CFA francs within the zone. The zone is derived from international cooperation between France and several African coun ...
... 1972. Finally, the central bank of the Comoros issues the Comorian franc. Thus, the name “CFA franc zone” is misleading—besides the Comorian and French francs there are two distinct CFA francs within the zone. The zone is derived from international cooperation between France and several African coun ...