Balance of Payments Problems
... concentrated on removing currency exchange restrictions and ensuring currency convertibility, with the goal of encouraging international trade. The inception of floating exchange rates in 1973 and the onset of the 1974 -1975 recession caused concern by the IMF that countries would attempt to reduce ...
... concentrated on removing currency exchange restrictions and ensuring currency convertibility, with the goal of encouraging international trade. The inception of floating exchange rates in 1973 and the onset of the 1974 -1975 recession caused concern by the IMF that countries would attempt to reduce ...
How Far Can Domestic Credit Growth Explain Speculative Attacks
... currency crisis increases when domestic credit growth is high, the real exchange rate is overvalued relative to trend, and the ratio of M2 to reserves is high. Glick and Moreno (1999) build a probit model based on data from January 1972 to October 1997 to study the crises in Asia and Latin America. ...
... currency crisis increases when domestic credit growth is high, the real exchange rate is overvalued relative to trend, and the ratio of M2 to reserves is high. Glick and Moreno (1999) build a probit model based on data from January 1972 to October 1997 to study the crises in Asia and Latin America. ...
PRIVATE MONEY: AN IDEA WHOSE TIME Introduction Richard W. Rahn HAS COME
... currency that people consider superior to government money. People making long-term contracts or investments would be eager to rely on a private currency only if they thought it would maintain its value better than the U.S. dollar or Japanese yen or other currencies. Proponents of competitive curren ...
... currency that people consider superior to government money. People making long-term contracts or investments would be eager to rely on a private currency only if they thought it would maintain its value better than the U.S. dollar or Japanese yen or other currencies. Proponents of competitive curren ...
Presentation - International Development Economics Associates
... • Whether he was right or wrong, we do not know, but “Quantum funds” with assets of over $100 billion had an opportunity to do it because Malaysian reserves before the crisis were only several dozen billion dollars • The need for the new international financial architecture: the regulatory capacity ...
... • Whether he was right or wrong, we do not know, but “Quantum funds” with assets of over $100 billion had an opportunity to do it because Malaysian reserves before the crisis were only several dozen billion dollars • The need for the new international financial architecture: the regulatory capacity ...
Should Ireland stay in the Euro
... trade floated their currencies downward. A sharp internal division has emerged between EU core and periphery, reflected in progressive loss of competitiveness by the periphery relative to the core which has benefited from extraordinary pressure on workers’ wages. In Germany, this has meant practical ...
... trade floated their currencies downward. A sharp internal division has emerged between EU core and periphery, reflected in progressive loss of competitiveness by the periphery relative to the core which has benefited from extraordinary pressure on workers’ wages. In Germany, this has meant practical ...
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... growing US current account deficit. The key element in this development is ultimately how the savingsinvestment gap in the United States in comparison to the rest of the world develops in the future. It is very likely that the private sector in the United States, under the pressure of the financial ...
... growing US current account deficit. The key element in this development is ultimately how the savingsinvestment gap in the United States in comparison to the rest of the world develops in the future. It is very likely that the private sector in the United States, under the pressure of the financial ...
How to Avoid Currency Wars NOTE DIRECTORATE GENERAL FOR INTERNAL POLICIES
... Trade and currency wars are in the air. After the severe global financial crisis, governments started to coordinate their actions worldwide in the G20, but this cooperation seems to have run out of steam. They have stimulated the economy by pursuing very accommodating fiscal and monetary policies, i ...
... Trade and currency wars are in the air. After the severe global financial crisis, governments started to coordinate their actions worldwide in the G20, but this cooperation seems to have run out of steam. They have stimulated the economy by pursuing very accommodating fiscal and monetary policies, i ...
US Dollar Collapse? - Malaysian Institute of Accountants
... few years and its capacity to draw capital o understand how badly the cut their losses and seek other profitable from reserves that were kept by emergUS economy is ailing, one has international markets. ing economies and oil-rich countries are to imagine the massive size of The common paradigm that ...
... few years and its capacity to draw capital o understand how badly the cut their losses and seek other profitable from reserves that were kept by emergUS economy is ailing, one has international markets. ing economies and oil-rich countries are to imagine the massive size of The common paradigm that ...
Economic and Monetary Union
... consolidated between and within the sectors of general government) relative to GDP at market prices, must not exceed 60% at the end of the preceding fiscal year. 4. Exchange rate: Applicant countries should have joined the exchange-rate mechanism (ERM / ERM II) under the European Monetary System (EM ...
... consolidated between and within the sectors of general government) relative to GDP at market prices, must not exceed 60% at the end of the preceding fiscal year. 4. Exchange rate: Applicant countries should have joined the exchange-rate mechanism (ERM / ERM II) under the European Monetary System (EM ...
Carbaugh, International Economics 9e, Chapter 16
... have foreign exchange reserves large enough to cover the domestic currency in circulation Put another way, the domestic money supply is limited by the amount of foreign reserves on hand Currency boards do not make loans or finance government deficits Carbaugh, Chap. 16 ...
... have foreign exchange reserves large enough to cover the domestic currency in circulation Put another way, the domestic money supply is limited by the amount of foreign reserves on hand Currency boards do not make loans or finance government deficits Carbaugh, Chap. 16 ...
the exchange rate depreciation marvel in uganda
... The Deteriorating Current Account balance: the Current account measures the inflows and outflows of goods, services and investment incomes. When there is a persistent and large current account deficit, it mean that the value of earned from exports cannot pay for the value need to purchase the import ...
... The Deteriorating Current Account balance: the Current account measures the inflows and outflows of goods, services and investment incomes. When there is a persistent and large current account deficit, it mean that the value of earned from exports cannot pay for the value need to purchase the import ...
Monetary Policy
... under current economic conditions. • Set interest rate policy to push future inflation back into bounds. ...
... under current economic conditions. • Set interest rate policy to push future inflation back into bounds. ...
Chapter 6
... rate system, exchange rates are allowed to move freely on a daily basis and no official boundaries exist. However, governments may intervene to prevent the rates from moving too much in a certain direction. ...
... rate system, exchange rates are allowed to move freely on a daily basis and no official boundaries exist. However, governments may intervene to prevent the rates from moving too much in a certain direction. ...
GLOBAL BUSINESS ENVIRONMENT: MACROECONOMICS
... By the late 19th century, after utilizing a variety of commodity based money systems, the major nations of the world chose gold as the basis of their money supply. With Britain at its apex they created the international gold standard. Each nation fixed its currency to a specific quantity of gold. In ...
... By the late 19th century, after utilizing a variety of commodity based money systems, the major nations of the world chose gold as the basis of their money supply. With Britain at its apex they created the international gold standard. Each nation fixed its currency to a specific quantity of gold. In ...
Questioning the US Dollar`s Status as a Reserve
... Since then, the U.S. dollar has remained the most important currency for international transactions. According to the Bank for International Settlements, 86% of all foreign exchange transactions that took place in the month of April 2007 were against the U.S. dollar. In effect, the U.S. dollar is st ...
... Since then, the U.S. dollar has remained the most important currency for international transactions. According to the Bank for International Settlements, 86% of all foreign exchange transactions that took place in the month of April 2007 were against the U.S. dollar. In effect, the U.S. dollar is st ...
Questioning the U.S. Dollar`s Status as a Reserve Currency
... Since then, the U.S. dollar has remained the most important currency for international transactions. According to the Bank for International Settlements, 86% of all foreign exchange transactions that took place in the month of April 2007 were against the U.S. dollar. In effect, the U.S. dollar is st ...
... Since then, the U.S. dollar has remained the most important currency for international transactions. According to the Bank for International Settlements, 86% of all foreign exchange transactions that took place in the month of April 2007 were against the U.S. dollar. In effect, the U.S. dollar is st ...
A Puzzle in Portuguese
... structural gains did not go far enough. Arguably, the public sector is still too large, non-discretionary spending too big a piece of the budget, and crucially, investment is too low. This is most apparent in the deficiency in the country’s infrastructure. Also, Brazil’s very high taxes create disto ...
... structural gains did not go far enough. Arguably, the public sector is still too large, non-discretionary spending too big a piece of the budget, and crucially, investment is too low. This is most apparent in the deficiency in the country’s infrastructure. Also, Brazil’s very high taxes create disto ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER International Seminar on Macroeconomics 2012
... Central banks in these countries should pay more attention to their collective policy stance and its global implications.”1 I do not agree with this conclusion. The Federal Reserve’s mandate concerns US inflation and employment, and the Federal Reserve is not responsible for inflation, real developm ...
... Central banks in these countries should pay more attention to their collective policy stance and its global implications.”1 I do not agree with this conclusion. The Federal Reserve’s mandate concerns US inflation and employment, and the Federal Reserve is not responsible for inflation, real developm ...
Lesson
... demand shocks may depend on how the structure of its economy compares to that of fellow EU members. For example, the effects on an EU member of a reduction in aggregate demand caused by a reduction in demand in the software industry will depend on whether the EU member has a large number of workers ...
... demand shocks may depend on how the structure of its economy compares to that of fellow EU members. For example, the effects on an EU member of a reduction in aggregate demand caused by a reduction in demand in the software industry will depend on whether the EU member has a large number of workers ...
Economics+in+Asia+Notes
... Literacy Rate— 64.84% Real growth rate (2006-2007): 9.4% Capital Investment—39% of _____________ ...
... Literacy Rate— 64.84% Real growth rate (2006-2007): 9.4% Capital Investment—39% of _____________ ...
IPE3 - DSE
... currency to rise, they can reap a capital gain by buying our bonds and the selling them again after the exchange rate has risen • This speculation creates – An inflow of capital, – A balance of payments surplus, – and upward pressure on the exchange rate ...
... currency to rise, they can reap a capital gain by buying our bonds and the selling them again after the exchange rate has risen • This speculation creates – An inflow of capital, – A balance of payments surplus, – and upward pressure on the exchange rate ...
第三章 物流管理
... One country’s interest rates higher than another’s, currency is a forward discount One country’s interest rates lower than another country’s, currency is a forward premium ...
... One country’s interest rates higher than another’s, currency is a forward discount One country’s interest rates lower than another country’s, currency is a forward premium ...
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.