Economics for Investment Decision Makers Workbook
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
Foreign exchange intervention and exchange rate volatility in Peru
... and foreign currency interest rates) and in international reserve accumulation (measured as the central bank’s net international position), these variables are also study independently. Since empirical evidence suggest high variance in the dynamics of these variables, their modeling considers the fe ...
... and foreign currency interest rates) and in international reserve accumulation (measured as the central bank’s net international position), these variables are also study independently. Since empirical evidence suggest high variance in the dynamics of these variables, their modeling considers the fe ...
Depreciation of the Russian rouble in 2014-2015 and its
... The present Bachelor’s thesis examines the impact of the devaluation of the Russian rouble in 2014 and 2015 on Finnish companies operating in the food and beverages and chemical industries. The objective of the thesis is to identify the indirect impact of the weakened rouble on the financial perform ...
... The present Bachelor’s thesis examines the impact of the devaluation of the Russian rouble in 2014 and 2015 on Finnish companies operating in the food and beverages and chemical industries. The objective of the thesis is to identify the indirect impact of the weakened rouble on the financial perform ...
the appropriateness of intermediate monetary
... operations (Laurens 2005). Alternatively, indirect monetary instruments that attempts to regulate liquidity conditions by influencing the demand and supply of reserve money2 can be applied. For small economies, with underdeveloped financial systems, direct instruments may be the only option for the ...
... operations (Laurens 2005). Alternatively, indirect monetary instruments that attempts to regulate liquidity conditions by influencing the demand and supply of reserve money2 can be applied. For small economies, with underdeveloped financial systems, direct instruments may be the only option for the ...
NBER WORKING PAPER SERIES
... for protectionism. Nobody claimed that trade balances would be zero under floating exchange rates. While it is true that when the central bank follows a policy of refraining from intervening in the foreign exchange market the overall balance of payments is by definition zero, in the presence of inte ...
... for protectionism. Nobody claimed that trade balances would be zero under floating exchange rates. While it is true that when the central bank follows a policy of refraining from intervening in the foreign exchange market the overall balance of payments is by definition zero, in the presence of inte ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY AND FISCAL POLICY Jordi Gali
... nominal rigidities by assuming a staggered price setting structure, analogous to the one embedded in the workhorse model used for monetary policy analysis in closed economies, which we treat as a useful benchmark. Secondly, we model the currency union as being made up by a continuum of small open ec ...
... nominal rigidities by assuming a staggered price setting structure, analogous to the one embedded in the workhorse model used for monetary policy analysis in closed economies, which we treat as a useful benchmark. Secondly, we model the currency union as being made up by a continuum of small open ec ...
70 Working Paper The benefits and costs of monetary union in Southern Africa:
... prior to the South African Reserve Bank’s Monetary Policy Committee meetings, at which interest rates for South Africa are set. Second, as pointed out by Wang et al. (2006), in some respects the CMA arrangement for Lesotho, Namibia, and Swaziland is similar to that of a currency-board arrangement - ...
... prior to the South African Reserve Bank’s Monetary Policy Committee meetings, at which interest rates for South Africa are set. Second, as pointed out by Wang et al. (2006), in some respects the CMA arrangement for Lesotho, Namibia, and Swaziland is similar to that of a currency-board arrangement - ...
The Reserve Bank’s new foreign exchange intervention policy
... position, it would look to buy back New Zealand dollars at that point. ...
... position, it would look to buy back New Zealand dollars at that point. ...
THREE ESSAYS ON MONETARY ECONOMICS by
... every new game, and we are able to freely observe the interactions in these markets. The forecast for this paper is that there is most likely a great deal of truth in Menger’s theories, but there may also be certain deviations produced by the advancement of modern communication. A secondary purpose ...
... every new game, and we are able to freely observe the interactions in these markets. The forecast for this paper is that there is most likely a great deal of truth in Menger’s theories, but there may also be certain deviations produced by the advancement of modern communication. A secondary purpose ...
The international monetary and financial system
... better to think of it as rising in booms, when the financial imbalances develop, and materialising in busts, when their consequences are revealed. ...
... better to think of it as rising in booms, when the financial imbalances develop, and materialising in busts, when their consequences are revealed. ...
Document
... as graphs for a limited number of countries. The graphs show the number of units of foreign currency that can be purchased for one US dollar for a five (or more) year period. The New York Federal Reserve provides daily reports of current rates for many countries. The exchange rate is reported as u ...
... as graphs for a limited number of countries. The graphs show the number of units of foreign currency that can be purchased for one US dollar for a five (or more) year period. The New York Federal Reserve provides daily reports of current rates for many countries. The exchange rate is reported as u ...
Monetary Policy and the Exchange Rate in
... The monetary policy framework in Colombia is based on an extended Inflation Targeting strategy that aims at maintaining a low and stable inflation rate, stabilizing output around its natural level and contributing to the preservation of financial stability. The latter objective is shared with other ...
... The monetary policy framework in Colombia is based on an extended Inflation Targeting strategy that aims at maintaining a low and stable inflation rate, stabilizing output around its natural level and contributing to the preservation of financial stability. The latter objective is shared with other ...
International Monetary Review
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
Exchange rates, expected returns and risk: UIP unbound CAMA
... relationship between exchange rates and interest rates.2 A no-arbitrage condition - uncovered interest parity (UIP) - implies a close link between exchange rates and relative interest returns, but evidence of that link has proved elusive. Empirical tests of UIP fail systematically across currency pa ...
... relationship between exchange rates and interest rates.2 A no-arbitrage condition - uncovered interest parity (UIP) - implies a close link between exchange rates and relative interest returns, but evidence of that link has proved elusive. Empirical tests of UIP fail systematically across currency pa ...
Macro Conference IV
... Lg: stock of net government liabilities to the central bank. Increase in Tr(·) must be offset somewhere else within government budget, since (7) must hold at all times. ...
... Lg: stock of net government liabilities to the central bank. Increase in Tr(·) must be offset somewhere else within government budget, since (7) must hold at all times. ...
PDF
... shifts the long run equilibrium or a demand shock that temporarily displaces output and prices from invariant steady state levels. Second, even countries which value policy autonomy may be willing to abandon monetary independence if they retain other flexible policy instruments, of which fiscal poli ...
... shifts the long run equilibrium or a demand shock that temporarily displaces output and prices from invariant steady state levels. Second, even countries which value policy autonomy may be willing to abandon monetary independence if they retain other flexible policy instruments, of which fiscal poli ...
The role of asymmetric information among investors in
... Customers are investors and they are the ultimate end-users of currency. They trigger the initial currency exchange by placing buy or sell orders with dealers. Dealers are intermediaries in the market and they quote prices, provide liquidity, and attempt to profit (and take risks) by holding position ...
... Customers are investors and they are the ultimate end-users of currency. They trigger the initial currency exchange by placing buy or sell orders with dealers. Dealers are intermediaries in the market and they quote prices, provide liquidity, and attempt to profit (and take risks) by holding position ...
Exchange-Rate Stabilization in Mid-1930s
... It is true that the British abandoned gold only when the financial resources available to them were exhausted, and that the subsequent depreciation of sterling was primarily attributable to market pressures. Yet it is also true that the British authorities, while generally offering little resistance ...
... It is true that the British abandoned gold only when the financial resources available to them were exhausted, and that the subsequent depreciation of sterling was primarily attributable to market pressures. Yet it is also true that the British authorities, while generally offering little resistance ...
1. Global Depth and the Big Shift
... hard at the onset of the financial crisis, but began recovering in 2009, and if its initial pace of recovery had been sustained, it would already have returned to its pre-crisis level. The pace of its recovery, however, slowed in 2011 and stalled completely in 2012. Before digging into the major fac ...
... hard at the onset of the financial crisis, but began recovering in 2009, and if its initial pace of recovery had been sustained, it would already have returned to its pre-crisis level. The pace of its recovery, however, slowed in 2011 and stalled completely in 2012. Before digging into the major fac ...
NBER WORKING PAPER SERIES EXCESS CAPACITY, MONOPOLISTIC COMPETITION, AND INTERNATIONAL TRANSMISSION
... An expansion of the foreign money supply leads in that model to an incipient capital outflow from the foreign country into the home country, an appreciation of the home currency, and an improvement in the home country's terms of trade. This deteriorates the home country's trade balance, and depresse ...
... An expansion of the foreign money supply leads in that model to an incipient capital outflow from the foreign country into the home country, an appreciation of the home currency, and an improvement in the home country's terms of trade. This deteriorates the home country's trade balance, and depresse ...
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.