International Outsourcing, Exchange Rates, and
... measure the imported input content of exports. The World Trade Report 2013 presents preliminary estimates of trade measured in valued-added terms and states that the share of total world trade consisting of re-exports of intermediate inputs was about 30% in 2011, which had increased by almost 10% si ...
... measure the imported input content of exports. The World Trade Report 2013 presents preliminary estimates of trade measured in valued-added terms and states that the share of total world trade consisting of re-exports of intermediate inputs was about 30% in 2011, which had increased by almost 10% si ...
mmi14-Stratmann 19106659 en
... over time, distinguishing across exchange rate regimes. First we analyze the differences in yields of countries with de facto and de jure floating exchange rate regimes versus all other countries (Figure 1). We then repeat a similar exercise using only the de facto exchange rate classification and d ...
... over time, distinguishing across exchange rate regimes. First we analyze the differences in yields of countries with de facto and de jure floating exchange rate regimes versus all other countries (Figure 1). We then repeat a similar exercise using only the de facto exchange rate classification and d ...
Globalization without global money: the double role of the dollar as
... commodities (by 33.5 percent). In order to lay the ground for an oil price increase as areaction to the ongoing dollar depreciation, Saudi Arabia gave up its role as a "swing producer" by the end of 1985 and flooded the oil market with additional supply. The idea was for Saudi Arabia deliberate1yto ...
... commodities (by 33.5 percent). In order to lay the ground for an oil price increase as areaction to the ongoing dollar depreciation, Saudi Arabia gave up its role as a "swing producer" by the end of 1985 and flooded the oil market with additional supply. The idea was for Saudi Arabia deliberate1yto ...
Currency Unions, Product Introductions, and the Real Exchange Rate
... their nominal exchange rate (NER) is pegged. For example, prices in the euro zone typically differ from those in Sweden, which has a floating exchange rate, and also from those in Denmark, which pegs its currency to the euro. This clarifies that the common currency itself, and not simply the lack of ...
... their nominal exchange rate (NER) is pegged. For example, prices in the euro zone typically differ from those in Sweden, which has a floating exchange rate, and also from those in Denmark, which pegs its currency to the euro. This clarifies that the common currency itself, and not simply the lack of ...
NBER WORKING PAPER SERIES FRANCE AND THE BRETFON WOODS Michael D. Bordo
... international monetary policy during the period 1960 - 1968. The official French position seems to have changed often, from a position of indifference towards the United States balance of payments deficit, towards a position of concern, to advocating a return to the originally planned Bretton Woods ...
... international monetary policy during the period 1960 - 1968. The official French position seems to have changed often, from a position of indifference towards the United States balance of payments deficit, towards a position of concern, to advocating a return to the originally planned Bretton Woods ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
... across currency areas. Lustig and Verdelhan (2007) extend that analysis and show that portfolios of high interest currencies depreciate when consumption is low, while portfolios of low interest currencies provide hedging of consumption risk. Those papers support the idea that risk needs to be endog ...
debt valuation effects when there is foreign currency denominated
... domestic and foreign currency affects debt-sustainability analyses. We show that a devaluation of the domestic currency can significantly change the path of a sustainable fiscal policy. This is important, for instance, to poor countries. Most of the public debt of these countries is dollar-denominat ...
... domestic and foreign currency affects debt-sustainability analyses. We show that a devaluation of the domestic currency can significantly change the path of a sustainable fiscal policy. This is important, for instance, to poor countries. Most of the public debt of these countries is dollar-denominat ...
Part VIII. Determinants of the Money Supply
... $1,000. Keep in mind that the results from this analysis can also be applied to the situation when Bob receives a check from the Fed and he decides to withdraw some of it. Based on the different scenarios we have looked at, the Fed’s action on the reserves and currency in circulation depends on how ...
... $1,000. Keep in mind that the results from this analysis can also be applied to the situation when Bob receives a check from the Fed and he decides to withdraw some of it. Based on the different scenarios we have looked at, the Fed’s action on the reserves and currency in circulation depends on how ...
The Price Theory of Money, Prospero`s Liquidity Trap, and Sudden
... flows. This is the point at which Wall Street and Main Street enter into contact. The decline in credit flows has an immediate effect on output and employment, which cannot be easily undone, unless, in an act of improbable magnanimity, Prospero restores liquidity illusion, or the government ca ...
... flows. This is the point at which Wall Street and Main Street enter into contact. The decline in credit flows has an immediate effect on output and employment, which cannot be easily undone, unless, in an act of improbable magnanimity, Prospero restores liquidity illusion, or the government ca ...
Trade Network Centrality and Currency Risk Premia
... Carry trade investors who went long in currencies with high average interest rates, by borrowing in currencies with low average interest rates, obtained an annualized Sharpe ratio of 0.43 between 1995 and 2013. This Sharpe ratio is similar to those found in U.S. equity markets and is surprising giv ...
... Carry trade investors who went long in currencies with high average interest rates, by borrowing in currencies with low average interest rates, obtained an annualized Sharpe ratio of 0.43 between 1995 and 2013. This Sharpe ratio is similar to those found in U.S. equity markets and is surprising giv ...
A Fast-Track East African Community Monetary Union?
... of consistent long term interest rate data. The monetary aggregate is preferred over other broader aggregates because it is less diluted by intervention by other agents in the financial system, and better able to capture the central bank’s policy stance. Indicators of fiscal convergence, such as the ...
... of consistent long term interest rate data. The monetary aggregate is preferred over other broader aggregates because it is less diluted by intervention by other agents in the financial system, and better able to capture the central bank’s policy stance. Indicators of fiscal convergence, such as the ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... Recently, an upsurge of research has occurred relating to less developed countries, predominantly emerging Asian markets. Ahmed and Yang [22] investigate the effect of devaluation on China‟s bilateral trade with the G-7 countries. The results suggest that devaluation improves the trade balance for s ...
... Recently, an upsurge of research has occurred relating to less developed countries, predominantly emerging Asian markets. Ahmed and Yang [22] investigate the effect of devaluation on China‟s bilateral trade with the G-7 countries. The results suggest that devaluation improves the trade balance for s ...
Evaluating development efforts
... Other things equal, reduced aggregate volatility and lower inflation probably improved the incomes of the poor. The inflation tax tends to fall disproportionately on poorer households, who hold few or no financial assets to shelter them against rising prices, and whose wage earnings typically are n ...
... Other things equal, reduced aggregate volatility and lower inflation probably improved the incomes of the poor. The inflation tax tends to fall disproportionately on poorer households, who hold few or no financial assets to shelter them against rising prices, and whose wage earnings typically are n ...
CEPAL Review 96 - CEPAL
... Monetary autonomy in the screr regime This section will analyse whether, under an screr regime, there is sufficient economic autonomy for monetary policy to be conducted. It finds that there can usually be enough monetary autonomy to make an active monetary policy practicable. The regulatory power o ...
... Monetary autonomy in the screr regime This section will analyse whether, under an screr regime, there is sufficient economic autonomy for monetary policy to be conducted. It finds that there can usually be enough monetary autonomy to make an active monetary policy practicable. The regulatory power o ...
Institutional Failure, Monetary Scarcity, and the Depreciation of the
... provides a preferablemediumof exchange because it is lighterand does not lose value by wear.7 Franklin addressed opponents of land banks who claimed that an increase in money always led to inflation. He maintainedthat credible land-backed money would not be inflationary, in part because its creation ...
... provides a preferablemediumof exchange because it is lighterand does not lose value by wear.7 Franklin addressed opponents of land banks who claimed that an increase in money always led to inflation. He maintainedthat credible land-backed money would not be inflationary, in part because its creation ...
Effectiveness of Quantitative Easing Monetary Policy in Japan
... Monetary policy works through the interest rate channel in the normal situation. Monetary easing will increase monetary base which reduce the short-term interest rate. The lower interest rate affects the longer interest rates of financial assets, which will stimulate the investment and consumption, ...
... Monetary policy works through the interest rate channel in the normal situation. Monetary easing will increase monetary base which reduce the short-term interest rate. The lower interest rate affects the longer interest rates of financial assets, which will stimulate the investment and consumption, ...
Make Your Publication Visible
... time. While the market for copper cash was mostly local, to an extent that the exchange rate of copper to silver varied across regions and was determined by the local market, the silver price in terms of gold was determined in the highly competitive international market. The exchange rate between si ...
... time. While the market for copper cash was mostly local, to an extent that the exchange rate of copper to silver varied across regions and was determined by the local market, the silver price in terms of gold was determined in the highly competitive international market. The exchange rate between si ...
Financial Reform in Australia and China
... 1980s. In the late 1970s, Australia maintained a managed exchange rate regime, capital account transactions were subject to restrictions and the banking system was tightly regulated. Taken at face value, this is similar to China today, where portfolio capital flows are largely prohibited, the renmin ...
... 1980s. In the late 1970s, Australia maintained a managed exchange rate regime, capital account transactions were subject to restrictions and the banking system was tightly regulated. Taken at face value, this is similar to China today, where portfolio capital flows are largely prohibited, the renmin ...
EXCHANGE RATE RISK AND EXPORT FLOWS
... firm specific factors on export flows is estimated. Data analysis shows that the import intensity distribution among exporters is skewed. In other words, importintensive companies are very often large exporters. Consequently, this firms set high markups for their products and actively adjust them to ...
... firm specific factors on export flows is estimated. Data analysis shows that the import intensity distribution among exporters is skewed. In other words, importintensive companies are very often large exporters. Consequently, this firms set high markups for their products and actively adjust them to ...
International Dimensions Of Monetary And Fiscal Policy
... The Effect on Exchange Rates via Interest Rates Expansionary fiscal policy increases interest rates because the government sells bonds to finance the deficit. Higher Canadian interest rates cause foreign capital to flow into Canada. ...
... The Effect on Exchange Rates via Interest Rates Expansionary fiscal policy increases interest rates because the government sells bonds to finance the deficit. Higher Canadian interest rates cause foreign capital to flow into Canada. ...
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.