1 Discussion: From Chronic Inflation to Chronic Deflation Gita
... the 2012 debt crisis in the Eurozone. As yields on government debt rose rapidly in Greece and spilled over to Ireland, Portugal, Spain and Italy, the European Central Bank’s (ECB) president Mario Draghi promised to do whatever it takes to save the euro including possibly buying stressed governme ...
... the 2012 debt crisis in the Eurozone. As yields on government debt rose rapidly in Greece and spilled over to Ireland, Portugal, Spain and Italy, the European Central Bank’s (ECB) president Mario Draghi promised to do whatever it takes to save the euro including possibly buying stressed governme ...
Foreign Direct Investment in Romania and the Balkans Joan
... Authorities were unable to prevent financial crisis in 1996-97 and decline in external value of the lev ...
... Authorities were unable to prevent financial crisis in 1996-97 and decline in external value of the lev ...
Statutory Instrument 57 of 1996 Foreign Exchange Risk
... of money on an agreed date, or at any time between agreed dates at an agreed price or rate, on payment of a non-refundable fee or premium to the writer of the option; "long position" means the excess of assets over liabilities in a particular currency; "net forward position" means all amounts to be ...
... of money on an agreed date, or at any time between agreed dates at an agreed price or rate, on payment of a non-refundable fee or premium to the writer of the option; "long position" means the excess of assets over liabilities in a particular currency; "net forward position" means all amounts to be ...
Discussions of the King/King Reader MBA 628
... “The fastest growing countries are China, India, and others in East and Southeast Asia. Policymakers in these countries have also espoused trade and investment liberalization, but they have done so in an unorthodox manner—gradually, sequentially, and only after an intitial period of high growth – an ...
... “The fastest growing countries are China, India, and others in East and Southeast Asia. Policymakers in these countries have also espoused trade and investment liberalization, but they have done so in an unorthodox manner—gradually, sequentially, and only after an intitial period of high growth – an ...
Filip Křepelka, Masarykova univerzita (krepelka@law
... banknotes and guaranted change for gold has been stopped by national laws or practices. Several European currencies collapsed in hyperinflation. Only several states continued gold coverage of their currencies. Several other countries attempted to do it (including Czechoslovakia). Since the second wo ...
... banknotes and guaranted change for gold has been stopped by national laws or practices. Several European currencies collapsed in hyperinflation. Only several states continued gold coverage of their currencies. Several other countries attempted to do it (including Czechoslovakia). Since the second wo ...
Open-Economy Macroeconomics
... markets would necessarily converge. According to the theory of purchasing-power parity, a currency must have the same purchasing power in all countries and exchange rates move to ensure that. If the purchasing power of the dollar is always the same at home and abroad, then the exchange rate cannot c ...
... markets would necessarily converge. According to the theory of purchasing-power parity, a currency must have the same purchasing power in all countries and exchange rates move to ensure that. If the purchasing power of the dollar is always the same at home and abroad, then the exchange rate cannot c ...
New currency hedging possibilities in Cambodia`s
... which is 25%. This has sparked worries that it might become excessive, resulting in pressure on asset prices and the creation of a bubble. Nevertheless, Cambodia’s creditto-GDP ratio of below 50% is still very low in a regional context, especially when compared with Thailand and Vietnam’s ratios, wh ...
... which is 25%. This has sparked worries that it might become excessive, resulting in pressure on asset prices and the creation of a bubble. Nevertheless, Cambodia’s creditto-GDP ratio of below 50% is still very low in a regional context, especially when compared with Thailand and Vietnam’s ratios, wh ...
Some sample pages from the toolkit can be downloaded here
... The boom was in large part the result of Latvia joining the European Union in May 2004. The decision to go ahead with EU enlargement had been made a few years earlier and one effect of this was a pre‐accession and post‐accession boom in inward investment. Businesses believed in the prospects of in ...
... The boom was in large part the result of Latvia joining the European Union in May 2004. The decision to go ahead with EU enlargement had been made a few years earlier and one effect of this was a pre‐accession and post‐accession boom in inward investment. Businesses believed in the prospects of in ...
FINANCIAL MARKE TS 2 SOLUTIONS NOV 2014
... They are determined in separate markets. The key idea behind the segmented markets theory of the term structure of interest rates in that financial instruments with differing terms to maturity are not perfect substitutes .consequently , they essentially are traded in separate financial markets ,even ...
... They are determined in separate markets. The key idea behind the segmented markets theory of the term structure of interest rates in that financial instruments with differing terms to maturity are not perfect substitutes .consequently , they essentially are traded in separate financial markets ,even ...
The exchange rate of the króna and the interset
... According to standard economic theory, a rise in the monetary policy rate affects the exchange rate of the domestic currency in two ways. One is the direct impact caused by the wider interestrate differential with abroad making domestic securities more attractive to investors. Demand for the domesti ...
... According to standard economic theory, a rise in the monetary policy rate affects the exchange rate of the domestic currency in two ways. One is the direct impact caused by the wider interestrate differential with abroad making domestic securities more attractive to investors. Demand for the domesti ...
An Analysis of the Impact of the Online –Virtual Currency
... and regulations. Nowadays, the legislation work on the virtual network and the virtual credit is not satisfactory in China. Therefore, the government should formulate some relevant laws and regulations to standardize the rights and obligations of each party in the virtual economic credit system, and ...
... and regulations. Nowadays, the legislation work on the virtual network and the virtual credit is not satisfactory in China. Therefore, the government should formulate some relevant laws and regulations to standardize the rights and obligations of each party in the virtual economic credit system, and ...
Unit10Macro
... If the dollar appreciates, it becomes more expensive for South Africa to purchase dollars. So if South Africa buys a U.S. car, it will have to pay more for the car (ceteris paribus). U.S. products become more expensive for South Africa. U.S. exports to South Africa become more expensive if the dolla ...
... If the dollar appreciates, it becomes more expensive for South Africa to purchase dollars. So if South Africa buys a U.S. car, it will have to pay more for the car (ceteris paribus). U.S. products become more expensive for South Africa. U.S. exports to South Africa become more expensive if the dolla ...
Trade, Exchange Rates, and Public Policy
... and lower its real exchange rate. This would encourage higher net exports that would add to domestic income to offset the original exogenous shock. 3. In your view, are fixed or flexible exchange rates preferable in a world of increasing financial integration? Take a stand and justify your position. ...
... and lower its real exchange rate. This would encourage higher net exports that would add to domestic income to offset the original exogenous shock. 3. In your view, are fixed or flexible exchange rates preferable in a world of increasing financial integration? Take a stand and justify your position. ...
Chapter 17
... late the government will start to print money to finance the deficit. A “self-fulfilling” currency crisis occurs when: – speculation feeds on itself (instead of being driven by “fundamentals”): if speculators believe an attack will succeed, they coordinate and make the attack successful. Example: If ...
... late the government will start to print money to finance the deficit. A “self-fulfilling” currency crisis occurs when: – speculation feeds on itself (instead of being driven by “fundamentals”): if speculators believe an attack will succeed, they coordinate and make the attack successful. Example: If ...
Argentina`s collapse | A decline without parallel
... renounced both exchange-rate policy and monetary policy (interest rates were, in effect, those set by the United States' Federal Reserve, plus whatever risk-margin lenders assigned to Argentina), the government was left with few tools to respond to outside events. The first foretaste of difficulties ...
... renounced both exchange-rate policy and monetary policy (interest rates were, in effect, those set by the United States' Federal Reserve, plus whatever risk-margin lenders assigned to Argentina), the government was left with few tools to respond to outside events. The first foretaste of difficulties ...
CHAPTER 4 Competing in World Markets
... developed nations, providing a rich source of new markets and customers. Developing countries like China and India have GDP growth rates that are higher than developed economies like the U.S. These developing markets represent opportunities for global business. ...
... developed nations, providing a rich source of new markets and customers. Developing countries like China and India have GDP growth rates that are higher than developed economies like the U.S. These developing markets represent opportunities for global business. ...
The economics of currency unions
... For example, suppose demand for a country’s exports falls. All else equal, its output will fall, unemployment increase and current account deteriorate. With an independent currency, exchange rate depreciation can dampen these effects by improving competitiveness, and monetary policy can become more ...
... For example, suppose demand for a country’s exports falls. All else equal, its output will fall, unemployment increase and current account deteriorate. With an independent currency, exchange rate depreciation can dampen these effects by improving competitiveness, and monetary policy can become more ...
Slides. - Harvard Kennedy School
... Written for Handbook of Monetary Economics, edited by Benjamin Friedman and Michael Woodford Conference on Developments in Monetary Economics, European Central Bank, Frankfurt 29-30 October, 2009 ...
... Written for Handbook of Monetary Economics, edited by Benjamin Friedman and Michael Woodford Conference on Developments in Monetary Economics, European Central Bank, Frankfurt 29-30 October, 2009 ...
Exchange Rates and Business Cycles
... Under the neo-classical dichotomy, goods markets works like an auction. Firms produce a fixed number of goods and demand will determine the price. Under Keynesian theories, goods markets work like McDonalds. Firms post a certain price and produce as many goods as are demanded at that price. ...
... Under the neo-classical dichotomy, goods markets works like an auction. Firms produce a fixed number of goods and demand will determine the price. Under Keynesian theories, goods markets work like McDonalds. Firms post a certain price and produce as many goods as are demanded at that price. ...
Chapter 18. Openness in Goods
... economy IS-LM model. Chapter 21 discusses a medium run model of the open economy and considers exchange rate crises. ...
... economy IS-LM model. Chapter 21 discusses a medium run model of the open economy and considers exchange rate crises. ...
People`s Bank of China Boosts the Yuan
... January 6. Such high interest rates made it very expensive to “short” the CNY. As a result of this liquidity squeeze, the CNY gained 1 percent in value from January 3 to January 5, 2017. Two factors may have contributed to the PBOC’s recent decision to take action to boost the CNY. First, the CNY/ U ...
... January 6. Such high interest rates made it very expensive to “short” the CNY. As a result of this liquidity squeeze, the CNY gained 1 percent in value from January 3 to January 5, 2017. Two factors may have contributed to the PBOC’s recent decision to take action to boost the CNY. First, the CNY/ U ...
Business Cycles and Macroeconomic Policy in Emerging Market
... Schmitt-Grohe and Uribe (2015) have challenged the traditional view that the terms of trade shocks are an important determinant of macroeconomic dynamics in emerging market economies. They have estimated annual country-specific SVARs for 38 poor and emerging countries and showed that terms-of-trade ...
... Schmitt-Grohe and Uribe (2015) have challenged the traditional view that the terms of trade shocks are an important determinant of macroeconomic dynamics in emerging market economies. They have estimated annual country-specific SVARs for 38 poor and emerging countries and showed that terms-of-trade ...
The Advantages of a Community Currency – An OCA Perspective
... The division of labour leads to comparative advantages and the integration of sales markets which promotes more economic growth and job placements than individual markets. This is not only true for the region introducing the new payment system but also for the former trading partners. In here, it ne ...
... The division of labour leads to comparative advantages and the integration of sales markets which promotes more economic growth and job placements than individual markets. This is not only true for the region introducing the new payment system but also for the former trading partners. In here, it ne ...
UNCTAD October 2007 N . 1
... to calm markets with the biggest financial rescue package in history, and several European governments have entered the fray. The almost daily news of collapsing banks, and the fact that a once-trumpeted business model of investment banks has disappeared down the black hole of the crisis, bodes ill ...
... to calm markets with the biggest financial rescue package in history, and several European governments have entered the fray. The almost daily news of collapsing banks, and the fact that a once-trumpeted business model of investment banks has disappeared down the black hole of the crisis, bodes ill ...
Currency war
Currency war, also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a country's currency falls so too does the price of exports. Imports to the country become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets. However, the price increase for imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.Competitive devaluation has been rare through most of history as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when currency war broke out in the 1930s. As countries abandoned the Gold Standard during the Great Depression, they used currency devaluations to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.According to Guido Mantega, the Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase ""currency war"" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.