A Comparative Analysis of the Impact of the Fixed and... Exchange Rate Systems on the Nigerian Economy
... Exchange Rate-the value of one currency in terms of another currency or other currencies. For example, the value Nigeria (N) against the United States dollar ($) constitutes the exchange rate between the two currencies. b. Exchange Rate System (or Regime)- this is an exchange rate mechanism or optio ...
... Exchange Rate-the value of one currency in terms of another currency or other currencies. For example, the value Nigeria (N) against the United States dollar ($) constitutes the exchange rate between the two currencies. b. Exchange Rate System (or Regime)- this is an exchange rate mechanism or optio ...
How Should the Foreign-directed Enterprises Face the Impact of RMB Appreciation?
... highly substituted products, therefore, RMB appreciation deteriorates the business situation for foreign-directed enterprises. [7] In the deteriorated situation, companies will compete each other harmfully and break the industrial environment, which will hurt their competition ability cultivation an ...
... highly substituted products, therefore, RMB appreciation deteriorates the business situation for foreign-directed enterprises. [7] In the deteriorated situation, companies will compete each other harmfully and break the industrial environment, which will hurt their competition ability cultivation an ...
** Complementary Credit Networks and Macro-Economic Stability * * uses data from a Swiss barter network to argue that large scale internet barter helps to stabilize the business cycle. My paper was recently invited for a 2nd presentation to the Central Bank of Brazil, and is in the
... point of view, an account in WIR is much like an ordinary checking account with clearing balances and limits on how large a negative balance can be run. (WIR-Bank is, in fact, a bank under Swiss law, and also provides ordinary banking services in SFr.) WIR-credits can be seen as an extension of the ...
... point of view, an account in WIR is much like an ordinary checking account with clearing balances and limits on how large a negative balance can be run. (WIR-Bank is, in fact, a bank under Swiss law, and also provides ordinary banking services in SFr.) WIR-credits can be seen as an extension of the ...
NBER WORKING PAPER SERIES VARIETIES OF CURRENCY CRISES Graciela L. Kaminsky
... swings may also produce an exaggerated business cycle that ends in bank runs and financial and currency crashes. More recently, the literature on capit al inflows and capital inflow problems has suggested another potential source of instability (see, for example, Calvo, 1998, Calvo and Reinhart, 200 ...
... swings may also produce an exaggerated business cycle that ends in bank runs and financial and currency crashes. More recently, the literature on capit al inflows and capital inflow problems has suggested another potential source of instability (see, for example, Calvo, 1998, Calvo and Reinhart, 200 ...
Antecedents and actions of export pricing strategy
... components not characteristic of domestic operations. These characteristics, discussed in detail in the following section, make pricing in export markets particularly problematic for managers. A conceptual framework for export pricing decisions Both the export marketing literature (e.g. Walters, 198 ...
... components not characteristic of domestic operations. These characteristics, discussed in detail in the following section, make pricing in export markets particularly problematic for managers. A conceptual framework for export pricing decisions Both the export marketing literature (e.g. Walters, 198 ...
The Yen and Its East Asian Neighbors 1980
... may be a particularly pertinent consideration, given the significant share of Japanese goods in total imports. In this case, ex post, the currency in question must have moved with the yen and appreciated against the U.S. dollar to a greater extent, and its relationship with the yen may be regarded a ...
... may be a particularly pertinent consideration, given the significant share of Japanese goods in total imports. In this case, ex post, the currency in question must have moved with the yen and appreciated against the U.S. dollar to a greater extent, and its relationship with the yen may be regarded a ...
Chapter 2: Introduction to Exchange Rates and Foreign
... Multilateral Exchange Rates Nominal Effective Exchange Rate: a weighted average of several bilateral exchange rates, usually using trade shares as weights to reflect the relative importance of each of the bilateral pairs involved. Example: Suppose US only trade with Britian and EU. ∆E$/£ = −10%,trad ...
... Multilateral Exchange Rates Nominal Effective Exchange Rate: a weighted average of several bilateral exchange rates, usually using trade shares as weights to reflect the relative importance of each of the bilateral pairs involved. Example: Suppose US only trade with Britian and EU. ∆E$/£ = −10%,trad ...
managing foreign exchange risk with derivatives
... (USD) currency exposures with financial derivatives. For example, in 1997 the notional value of foreign exchange derivatives held at fiscal year-end totaled approximately $3 billion and the notional value of derivative transactions for the year was over $15 billion. HDG is a manufacturer of durable ...
... (USD) currency exposures with financial derivatives. For example, in 1997 the notional value of foreign exchange derivatives held at fiscal year-end totaled approximately $3 billion and the notional value of derivative transactions for the year was over $15 billion. HDG is a manufacturer of durable ...
Global Strategy Views - Glovista Investments LLC
... including, among others: (1) vastly different effects of inflation and deflation on households’ purchasing power and standards of living; (2) vastly different effects of inflation and deflation across creditor and debtor groups within a society; (3) adverse effects of inflation and deflation on risk ...
... including, among others: (1) vastly different effects of inflation and deflation on households’ purchasing power and standards of living; (2) vastly different effects of inflation and deflation across creditor and debtor groups within a society; (3) adverse effects of inflation and deflation on risk ...
as a PDF
... Against this institutional background, the bulk of the academic work on foreign exchange market interventions in major currencies has tended to focus on the question of “effectiveness” of the FX market operations against the background of some pre-specified objective that the monetary authorities ar ...
... Against this institutional background, the bulk of the academic work on foreign exchange market interventions in major currencies has tended to focus on the question of “effectiveness” of the FX market operations against the background of some pre-specified objective that the monetary authorities ar ...
EXCHANGE RATE AND INFLATION TARGETING IN MOROCCO
... the robustness of the results. Empirical results should reveal the significant factors driving inflation, which should be controlled or, at least, monitored to make inflation-targeting effective. Finally, the paper outlines the institutional and operational conditions for the success of an inflatio ...
... the robustness of the results. Empirical results should reveal the significant factors driving inflation, which should be controlled or, at least, monitored to make inflation-targeting effective. Finally, the paper outlines the institutional and operational conditions for the success of an inflatio ...
NBER WORKING PAPER SERIES ASSESSING THE EMERGING GLOBAL FINANCIAL ARCHITECTURE:
... Testing the Stability and Fitness of Trilemma’s Linear Specification” and “The Emerging Global Financial Architecture – Tracing and Evaluating the New Patterns of the Trilemma’s Configurations”. We would like to thank Eduardo Borensztein, Eduardo Cavallo, Camilo Tavor, Mathijs van Dijk, and the part ...
... Testing the Stability and Fitness of Trilemma’s Linear Specification” and “The Emerging Global Financial Architecture – Tracing and Evaluating the New Patterns of the Trilemma’s Configurations”. We would like to thank Eduardo Borensztein, Eduardo Cavallo, Camilo Tavor, Mathijs van Dijk, and the part ...
Recent studies have found that PEFM is more likely in new
... In an analysis of speculative attacks in ninety developing countries, Leblang (2003) finds that governments are most likely to defend the value of their currency prior to an election, and argues that governments’ greater commitment to their exchange rate peg reduces the likelihood of a pre-electoral ...
... In an analysis of speculative attacks in ninety developing countries, Leblang (2003) finds that governments are most likely to defend the value of their currency prior to an election, and argues that governments’ greater commitment to their exchange rate peg reduces the likelihood of a pre-electoral ...
central bank interventions, communication and interest rate policy in
... to increase international reserves. When considering exchange rate volatility, the central bank not only looks at past and present volatilities, but also considers changes in volatility that are expected to occur in the future (CBRT, 2004, paragraph 26). FX interventions by the Turkish central bank ...
... to increase international reserves. When considering exchange rate volatility, the central bank not only looks at past and present volatilities, but also considers changes in volatility that are expected to occur in the future (CBRT, 2004, paragraph 26). FX interventions by the Turkish central bank ...
Competition in the Cryptocurrency Market
... the mainstream media only in 2012. Due to its supposed anonymity, Bitcoin and other digital currencies are often compared to cash. However, unlike cash, these currencies are purely digital and used primarily online. Digital currencies have the potential to compete against other online payment method ...
... the mainstream media only in 2012. Due to its supposed anonymity, Bitcoin and other digital currencies are often compared to cash. However, unlike cash, these currencies are purely digital and used primarily online. Digital currencies have the potential to compete against other online payment method ...
Currency Devaluations And Implications Of The
... balance of payments? These questions have attracted much attention in recent years, since during that time, macro-economists have developed models involving intermediate imports. In such a framework, the exchange rate has both expansionary demand-side and contractionary supply-side effects. A number ...
... balance of payments? These questions have attracted much attention in recent years, since during that time, macro-economists have developed models involving intermediate imports. In such a framework, the exchange rate has both expansionary demand-side and contractionary supply-side effects. A number ...
Zimbabwe: Challenges and Policy Options after Hyperinflation African Department 10/3
... Loss of an autonomous monetary policy and the risk for unfavorable exchange rate movements would become main concerns if Zimbabwe adopted the currency of a country that did not meet the conditions for an optimal currency area. (That said, an autonomous monetary policy is beneficial only if supported ...
... Loss of an autonomous monetary policy and the risk for unfavorable exchange rate movements would become main concerns if Zimbabwe adopted the currency of a country that did not meet the conditions for an optimal currency area. (That said, an autonomous monetary policy is beneficial only if supported ...
exchange rate volatility and trade
... more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustment in response to external shocks and, hence, reduces the need to raise protective tariff barrie ...
... more abrupt, movements in fixed parities. Therefore, a system of fixed rates would not reduce unanticipated volatility. Moreover, greater exchange rate flexibility facilitates balance of payments adjustment in response to external shocks and, hence, reduces the need to raise protective tariff barrie ...
Economics of Money, Banking, and Financial Markets, 8e
... Answer: The cigarettes performed the three functions of money. They served as the medium of exchange because individuals did exchange items for cigarettes. They served as a unit of account because prices were quoted in terms of the number of cigarettes required for the exchange. They served as a sto ...
... Answer: The cigarettes performed the three functions of money. They served as the medium of exchange because individuals did exchange items for cigarettes. They served as a unit of account because prices were quoted in terms of the number of cigarettes required for the exchange. They served as a sto ...
predicting currency markets behavior after scheduled
... is a more realistic one, as it deals with real world constraints and traders behavior. This method performs a simulated ruled based trading activity over real prices and values the final results. Our goal is to understand whether it is possible or not to capture reaction of prices after scheduled ne ...
... is a more realistic one, as it deals with real world constraints and traders behavior. This method performs a simulated ruled based trading activity over real prices and values the final results. Our goal is to understand whether it is possible or not to capture reaction of prices after scheduled ne ...
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.