Managing Sustainable Growth
... housing-loans (mortgages) was more than a third (38%)1. After Swiss Central Bank in January 2015 withdrew from controlling CHF/EUR exchange rate, the CHF/HRK rate rose more than a 15% in a day. This happened because Croatian currency (Kuna – HRK) is virtually pegged to Euro, and Croatian monetary sy ...
... housing-loans (mortgages) was more than a third (38%)1. After Swiss Central Bank in January 2015 withdrew from controlling CHF/EUR exchange rate, the CHF/HRK rate rose more than a 15% in a day. This happened because Croatian currency (Kuna – HRK) is virtually pegged to Euro, and Croatian monetary sy ...
should the southeast asian countries form a currency union?
... the Common Effective Preferential Tariff (CEPT) scheme. The creation of the free trade area in ASEAN could help set the stage for the creation of a currency union among the member countries. This is because a currency union eliminates exchange rate fluctuations among the countries involved and the t ...
... the Common Effective Preferential Tariff (CEPT) scheme. The creation of the free trade area in ASEAN could help set the stage for the creation of a currency union among the member countries. This is because a currency union eliminates exchange rate fluctuations among the countries involved and the t ...
Are All Emerging Market Crises Alike?
... shift toward safer foreign assets—resulting in capital outflows and further pressure on the exchange rate and reserves until there is a full-blown capital account crisis. Various case studies of capital account crises illustrate how currency and maturity mismatches in sectoral balance sheets, and li ...
... shift toward safer foreign assets—resulting in capital outflows and further pressure on the exchange rate and reserves until there is a full-blown capital account crisis. Various case studies of capital account crises illustrate how currency and maturity mismatches in sectoral balance sheets, and li ...
Purchasing Power Parity
... the parity condition. Step 3: Review the empirical evidence under the parity condition. We will begin with purchasing power parity (PPP) by developing its theory and reviewing the empirical evidence related to it. ...
... the parity condition. Step 3: Review the empirical evidence under the parity condition. We will begin with purchasing power parity (PPP) by developing its theory and reviewing the empirical evidence related to it. ...
should the southeast asian countries form a currency union?
... the Common Effective Preferential Tariff (CEPT) scheme. The creation of the free trade area in ASEAN could help set the stage for the creation of a currency union among the member countries. This is because a currency union eliminates exchange rate fluctuations among the countries involved and the t ...
... the Common Effective Preferential Tariff (CEPT) scheme. The creation of the free trade area in ASEAN could help set the stage for the creation of a currency union among the member countries. This is because a currency union eliminates exchange rate fluctuations among the countries involved and the t ...
Can macroeconomic indicators predict a currency crisis? Evidence
... useful in accelerating a disinflation process, but they typically lead to overvalued exchange rates and large current account deficits. These factors, in turn, make it difficult to sustain exchange rate pegs. The longer a disinflation program lasts, the dimmer will be memories of the cost of high in ...
... useful in accelerating a disinflation process, but they typically lead to overvalued exchange rates and large current account deficits. These factors, in turn, make it difficult to sustain exchange rate pegs. The longer a disinflation program lasts, the dimmer will be memories of the cost of high in ...
Zimbabwe’s Black Market for Foreign Exchange Albert Makochekanwa
... market” and “black market” in foreign exchange, this study will use the two terms interchangeably or synonymously. Robert Grosse (1991) pointed out that black markets in foreign currency have emerged in most countries since time immemorial mainly as a result of government controls on access to forei ...
... market” and “black market” in foreign exchange, this study will use the two terms interchangeably or synonymously. Robert Grosse (1991) pointed out that black markets in foreign currency have emerged in most countries since time immemorial mainly as a result of government controls on access to forei ...
LEADING INDICATORS OF CURRENCY CRISES IN EMERGING
... revival of these empirical studies. Most of them are concerned with the analysis of one or several particular events (single-country or regional studies). However, an increasing number of studies also try to identify features that are common to a large set of crises (see the work carried out at inte ...
... revival of these empirical studies. Most of them are concerned with the analysis of one or several particular events (single-country or regional studies). However, an increasing number of studies also try to identify features that are common to a large set of crises (see the work carried out at inte ...
Earlier versions of
... to be optImal. 2) Output stabilizing monetary policy may well require 'leaning with the wind' in the foreign exchange market, expanding the money supply when the home currency depreciates, thus increasing the volatility of the exchange rate. 3) The ability of the monetary authorities to influence re ...
... to be optImal. 2) Output stabilizing monetary policy may well require 'leaning with the wind' in the foreign exchange market, expanding the money supply when the home currency depreciates, thus increasing the volatility of the exchange rate. 3) The ability of the monetary authorities to influence re ...
2. The practice of the gold standard
... following the rules of the game—as long as they did not cast doubt on their long-term commitment to do whatever was necessary in the last instance in order to maintain the gold standard.17 Confidence in long-run stability obviated the need to do much of anything in the short run, and certainly elimi ...
... following the rules of the game—as long as they did not cast doubt on their long-term commitment to do whatever was necessary in the last instance in order to maintain the gold standard.17 Confidence in long-run stability obviated the need to do much of anything in the short run, and certainly elimi ...
Management & Engineering Internationalization Based on SVAR Model
... internationalization is depending as well. From the aspect of measure of value, a currency’s internationalization needs its value to be stable and denomination to be sizable; from the aspect of medium of exchange, a currency’s internationalization depends on the domestic country’s economy, foreign t ...
... internationalization is depending as well. From the aspect of measure of value, a currency’s internationalization needs its value to be stable and denomination to be sizable; from the aspect of medium of exchange, a currency’s internationalization depends on the domestic country’s economy, foreign t ...
A Antonio Martino
... temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedman 1968, 1975, 1977; Bordo and Schwartz 1983). Manipulation of monetary ...
... temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedman 1968, 1975, 1977; Bordo and Schwartz 1983). Manipulation of monetary ...
International Monetary Systems
... would rush to redeem their dollar assets before the gold ran out. – This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. – If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed ra ...
... would rush to redeem their dollar assets before the gold ran out. – This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. – If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed ra ...
Monetary Policy Transmission (Page a)
... reflects both analytical and methodological considerations. From an analytical point of view, it is widely acknowledged that significant gaps remain with regard to the precise nature of the channels monetary impulses are transmitted through economies (Levy, et.al 1997). Economists have been trying t ...
... reflects both analytical and methodological considerations. From an analytical point of view, it is widely acknowledged that significant gaps remain with regard to the precise nature of the channels monetary impulses are transmitted through economies (Levy, et.al 1997). Economists have been trying t ...
Capital Inflows, Exchange Rate Flexibility, and Credit Booms
... monetary and credit expansions, build vulnerabilities associated with currency mismatches, and distort asset prices.2 Large inflows tend to be associated with expansionary economic policies and behave procyclically.3 These linkages between surges in capital inflows and financial excess are not limit ...
... monetary and credit expansions, build vulnerabilities associated with currency mismatches, and distort asset prices.2 Large inflows tend to be associated with expansionary economic policies and behave procyclically.3 These linkages between surges in capital inflows and financial excess are not limit ...
INSTITUTE OF ECONOMIC STUDIES
... Ultimately, the government chose to restrict its debt relief to legal entities (firms) that could prove that they had enough cash-flow to sustain the necessary expenditure. Debt write-downs to families was restricted to 110% of the fair value of the family house. (An aside, a new government, voted ...
... Ultimately, the government chose to restrict its debt relief to legal entities (firms) that could prove that they had enough cash-flow to sustain the necessary expenditure. Debt write-downs to families was restricted to 110% of the fair value of the family house. (An aside, a new government, voted ...
THE KNOWLEDGE PROBLEM UNDER ALTERNATIVE MONETARY REGIMES William N. Butos I. Introduction
... absence of any locus of control. Knowledge is not centered in any one place; instead, it is dispersed. As Hayek (1948, p. 78) observes, the division of knowledge presents “the problem of the utilization of knowledge which is not given to anyone in its totality.” Knowledge exists in the form of “obje ...
... absence of any locus of control. Knowledge is not centered in any one place; instead, it is dispersed. As Hayek (1948, p. 78) observes, the division of knowledge presents “the problem of the utilization of knowledge which is not given to anyone in its totality.” Knowledge exists in the form of “obje ...
Stories of the Twentieth Century for the Twenty
... Figure 1 also shows that the decade of the 2000s, until 2009, was a boom period for EMEs, with growth generally far above the long-run trend. Supporting this exceptional growth were low interest rates in the advanced economies and rising world commodity prices. Indeed, a notable absence of major eme ...
... Figure 1 also shows that the decade of the 2000s, until 2009, was a boom period for EMEs, with growth generally far above the long-run trend. Supporting this exceptional growth were low interest rates in the advanced economies and rising world commodity prices. Indeed, a notable absence of major eme ...
NBER WORKING PAPER SERIES MONETARY AND EXCHANGE RATE POLICY COORDINATION IN ASEAN+1
... Exchange rate stability was restored in the period after the crisis. However, this period has seen a major depression in investment with current account surpluses. This is consistent with real appreciation, but slower real growth. The effects of the lack of sustainable policies and the breakdown of ...
... Exchange rate stability was restored in the period after the crisis. However, this period has seen a major depression in investment with current account surpluses. This is consistent with real appreciation, but slower real growth. The effects of the lack of sustainable policies and the breakdown of ...
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.