Capital Controls and Monetary Policy in Developing Countries
... Developing Countries José Antonio Cordero and Juan Antonio Montecino ...
... Developing Countries José Antonio Cordero and Juan Antonio Montecino ...
Chapter 16
... Monetary Stability If the government picks an exchange rate that is too low, it is paying more for its imports than it needs to and is building up official reserves. Some other country is losing official reserves. ...
... Monetary Stability If the government picks an exchange rate that is too low, it is paying more for its imports than it needs to and is building up official reserves. Some other country is losing official reserves. ...
ec11 - Caritas University
... The study is a critical Evaluation of the impact of Exchange rate variation on Aggregate Demand in Nigeria. These study made use of the ordinary least square (OLS) regression technique in analyzing the impact of Exchange Rate Variation On Aggregate Demand in Nigeria. There are also other variables t ...
... The study is a critical Evaluation of the impact of Exchange rate variation on Aggregate Demand in Nigeria. These study made use of the ordinary least square (OLS) regression technique in analyzing the impact of Exchange Rate Variation On Aggregate Demand in Nigeria. There are also other variables t ...
Chapter 7: Quantitative vs. Credit Easing
... In contrast, the Federal Reserve’s credit easing approach focuses on the mix of loans and securities that it holds and on how this composition of assets affects credit conditions for households and businesses. This difference does not reflect any doctrinal disagreement with the Japanese approach, bu ...
... In contrast, the Federal Reserve’s credit easing approach focuses on the mix of loans and securities that it holds and on how this composition of assets affects credit conditions for households and businesses. This difference does not reflect any doctrinal disagreement with the Japanese approach, bu ...
Link to Text - Johns Hopkins University
... than they would be if Jamaica were richer. And it has kept Jamaica a laggard in fields that require a foundation of considerable wealth: higher education, scientific and technical research, advanced manufacturing, communications, medicine--the growth industries of the coming century. Slow economic g ...
... than they would be if Jamaica were richer. And it has kept Jamaica a laggard in fields that require a foundation of considerable wealth: higher education, scientific and technical research, advanced manufacturing, communications, medicine--the growth industries of the coming century. Slow economic g ...
mmi14-Urosevic 19106720 en
... analogy is with the European banking system, with the Euro zone playing the role of the large country, and European countries outside of the Euro zone playing the role of the small country. Following Allen and Gale (2000a) we proxy for different levels of network interconnectedness between the four ...
... analogy is with the European banking system, with the Euro zone playing the role of the large country, and European countries outside of the Euro zone playing the role of the small country. Following Allen and Gale (2000a) we proxy for different levels of network interconnectedness between the four ...
Global Financial Markets and Instruments
... we have moved over to currency, convertibility on current account. The importance of the World Bank as financier has diminished considerably. The world is now dependant on private capital imports. Even the role of the IMF has diminished with most countries adopting currency convertibility. Capital f ...
... we have moved over to currency, convertibility on current account. The importance of the World Bank as financier has diminished considerably. The world is now dependant on private capital imports. Even the role of the IMF has diminished with most countries adopting currency convertibility. Capital f ...
Adaptational Pressure, Domestic Politics and the Evolution of the
... countries. The Treaty of Rome mentioned price stability and the external stability of the currencies as the“common, general objectives of economic policy in the Community” (Article 104). The stop-and-go patterns of the monetary cooperation throughout the 1970s and 1980s did not prevent Europe from s ...
... countries. The Treaty of Rome mentioned price stability and the external stability of the currencies as the“common, general objectives of economic policy in the Community” (Article 104). The stop-and-go patterns of the monetary cooperation throughout the 1970s and 1980s did not prevent Europe from s ...
Free Full text
... long-run (static) equation is estimated by regressing the current values of the RER on the contemporaneous values of its fundamentals. In a second step, the residuals of this estimation are introduced in a dynamic short-run equation to form an error-correction model. In this paper, we shall concentr ...
... long-run (static) equation is estimated by regressing the current values of the RER on the contemporaneous values of its fundamentals. In a second step, the residuals of this estimation are introduced in a dynamic short-run equation to form an error-correction model. In this paper, we shall concentr ...
NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... reluctant to do this for fear of starting a recession (Meltzer 2009).1 Instead, some half-hearted measures were taken to reduce capital outflows in the 1960s, such as the interest equalization tax on foreign bonds sold in the United States, but these were far from sufficient to address the fundament ...
... reluctant to do this for fear of starting a recession (Meltzer 2009).1 Instead, some half-hearted measures were taken to reduce capital outflows in the 1960s, such as the interest equalization tax on foreign bonds sold in the United States, but these were far from sufficient to address the fundament ...
Principles of Economics, Case and Fair,9e
... were backed by gold. The values were fixed in terms of a specific number of ounces of gold. At the end of World War II, the Bretton Woods system came into force before its demise in 1971. Under this system, countries were to maintain fixed exchange rates with each other. Governments must at times in ...
... were backed by gold. The values were fixed in terms of a specific number of ounces of gold. At the end of World War II, the Bretton Woods system came into force before its demise in 1971. Under this system, countries were to maintain fixed exchange rates with each other. Governments must at times in ...
NBER WORKING PAPER SERIES INTERNATIONAL LIQUIDITY AND MONETARY CONTROL Jacob A. Frenkel
... and developing countries and it allows for country—specific and time—specific ...
... and developing countries and it allows for country—specific and time—specific ...
NBER WORKING PAPER SERIES THE MACROECONOMICS OF THE GREAT Ben S. Bernanke
... other, with monetarists stressing the monetary sources of the latter stages of the Great Contraction (from late 1930 or early 1931 until 1933), and anti-monetarists emphasizing the likely importance of non—monetary factors ...
... other, with monetarists stressing the monetary sources of the latter stages of the Great Contraction (from late 1930 or early 1931 until 1933), and anti-monetarists emphasizing the likely importance of non—monetary factors ...
Weak Dollar, Strong Dollar: Causes and Consequences
... asset there has also been an increase in the demand for dollars and an increase in the supply of foreign currency in the foreign exchange market. Other factors unchanged, these actions repeated on a larger scale would tend to increase the exchange value of the dollar relative to foreign currency. Th ...
... asset there has also been an increase in the demand for dollars and an increase in the supply of foreign currency in the foreign exchange market. Other factors unchanged, these actions repeated on a larger scale would tend to increase the exchange value of the dollar relative to foreign currency. Th ...
early warning indicators for developed countries - ECB
... considering various model combinations and thus has the advantage of minimizing the author’s subjective judgment in determining the optimal set of early warning indicators. We apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data ava ...
... considering various model combinations and thus has the advantage of minimizing the author’s subjective judgment in determining the optimal set of early warning indicators. We apply BMA to a set of 30 macroeconomic and financial indicators selected on the basis of a literature review, given data ava ...
Title: The Political Economy of Monetary Institutions: An
... announcements and, thereby, reducing the inflationary bias of monetary policy. The argument that these institutions are chosen as a response to the same economic problem, however, raises some issues about how we analyze the determinants of monetary institutions. First, it is unclear whether central ...
... announcements and, thereby, reducing the inflationary bias of monetary policy. The argument that these institutions are chosen as a response to the same economic problem, however, raises some issues about how we analyze the determinants of monetary institutions. First, it is unclear whether central ...
The duration of fixed exchange rate regimes Sébastien Wälti Trinity College Dublin
... regimes. These studies differ along several dimensions: exchange rate regime classification, identification of an exit, type of exit, time period, sample of countries, econometric methodology, and explanatory variables. The source of data varies greatly across studies. In turn, the procedure for the ...
... regimes. These studies differ along several dimensions: exchange rate regime classification, identification of an exit, type of exit, time period, sample of countries, econometric methodology, and explanatory variables. The source of data varies greatly across studies. In turn, the procedure for the ...
Foreign Exchange Market Organization in Selected
... International voice brokers and the main banks active in foreign exchange may advertise trading in “exotic” currencies, as those of developing economies are known in the market. C. Predominantly Against U.S. Dollars The U.S. dollar is the most traded foreign currency in developing economies.9 It is ...
... International voice brokers and the main banks active in foreign exchange may advertise trading in “exotic” currencies, as those of developing economies are known in the market. C. Predominantly Against U.S. Dollars The U.S. dollar is the most traded foreign currency in developing economies.9 It is ...
EMP – A Note on Empiricism and Foreign Exchange Markets
... tariffs, identical goods sold in different countries must sell for the same price where their prices are expressed in terms of the same currency – this is the law of one price. A study by Isard (1977) compared the movements of dollar prices of West German goods relative to their US equivalents for s ...
... tariffs, identical goods sold in different countries must sell for the same price where their prices are expressed in terms of the same currency – this is the law of one price. A study by Isard (1977) compared the movements of dollar prices of West German goods relative to their US equivalents for s ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... During the second half of the 1990s the view that most emerging countries should lift capital controls and open up their capital account became dominant at the IMF and the U.S. Treasury. Starting in 1995 more and more emerging countries began to relax their controls on capital mobility. In doing thi ...
... During the second half of the 1990s the view that most emerging countries should lift capital controls and open up their capital account became dominant at the IMF and the U.S. Treasury. Starting in 1995 more and more emerging countries began to relax their controls on capital mobility. In doing thi ...
The Impact of Real Exchange Rate Movements on
... Das, Roberts and Tybout (2007) who use Columbian data and find a similar relationship between exchange rates and exports, and in Bond, Tybout and Utar (2005) who find that macro-economic volatility (including exchange rate volatility) reduces average productivity by way of selection effects. Blalock ...
... Das, Roberts and Tybout (2007) who use Columbian data and find a similar relationship between exchange rates and exports, and in Bond, Tybout and Utar (2005) who find that macro-economic volatility (including exchange rate volatility) reduces average productivity by way of selection effects. Blalock ...
The Emerging Global Financial Architecture: Tracing and
... and assign a value of one for the ERS index. Single year pegs are dropped because they are quite ...
... and assign a value of one for the ERS index. Single year pegs are dropped because they are quite ...
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.