Real Exchange Rates for the Year 2000
... and the Quarterly National Accounts (QNA) and Monthly Economic Indicators (MEI) published by the OECD. The series are extracted for the G7 countries (Japan, the United States, Canada, the United Kingdom, France, Italy, and Germany) and for world aggregates as appropriate. We try to ensure that the d ...
... and the Quarterly National Accounts (QNA) and Monthly Economic Indicators (MEI) published by the OECD. The series are extracted for the G7 countries (Japan, the United States, Canada, the United Kingdom, France, Italy, and Germany) and for world aggregates as appropriate. We try to ensure that the d ...
Exchange Rate Theories
... must be consistent with money-demand requirements. So far, we have discussed sterilization in the context of fixed exchange rates. Now, let’s consider how a sterilization operation might occur in a floating exchange rate system. Suppose the Japanese yen is appreciating against the dollar, and the Ba ...
... must be consistent with money-demand requirements. So far, we have discussed sterilization in the context of fixed exchange rates. Now, let’s consider how a sterilization operation might occur in a floating exchange rate system. Suppose the Japanese yen is appreciating against the dollar, and the Ba ...
Obstacles to Implementing Lessons from the 1997-1998 East Asian Crises & Social Af
... Second, private sector debt exploded in the 1990s, especially from abroad, not least because of the efforts of debt-pushers keen to secure higher returns from the fast-growing region.3 Commercial banks’ foreign liabilities also increased quickly, as the ratio of loans to gross national product rose ...
... Second, private sector debt exploded in the 1990s, especially from abroad, not least because of the efforts of debt-pushers keen to secure higher returns from the fast-growing region.3 Commercial banks’ foreign liabilities also increased quickly, as the ratio of loans to gross national product rose ...
NBER WORKING PAPER SERIES HEDGING AND FINANCIAL EXCHANGE RATE REGIMES Martin Eichenbaum
... intermediaries' net foreign assets prior to the onset of a crisis. There are two sources of data for doing this: the Bank of International Settlements (BIS) and the International Financial Statistics (IFS). An important advantage of the BIS data is that it is based on reports from major OECD banks. ...
... intermediaries' net foreign assets prior to the onset of a crisis. There are two sources of data for doing this: the Bank of International Settlements (BIS) and the International Financial Statistics (IFS). An important advantage of the BIS data is that it is based on reports from major OECD banks. ...
Monetary and Economic Integration in Africa
... integration in Anglophone West African the Economic Community of West African States (ECOWAS was established in 1975 with the primary objective of promoting cooperation leading to the creation of an economic and monetary union in West Africa. Apart from the motivation of achieving closer economic an ...
... integration in Anglophone West African the Economic Community of West African States (ECOWAS was established in 1975 with the primary objective of promoting cooperation leading to the creation of an economic and monetary union in West Africa. Apart from the motivation of achieving closer economic an ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... prices in any particular area. For example, prior to the establishment of the euro zone, if, say, the Bank of France believed that putting more francs (i.e., the former French currency) into circulation would keep prices stable in the midst of heightened economic activity, the central bank could buy ...
... prices in any particular area. For example, prior to the establishment of the euro zone, if, say, the Bank of France believed that putting more francs (i.e., the former French currency) into circulation would keep prices stable in the midst of heightened economic activity, the central bank could buy ...
Does Misaligned Currency Affect Economic Growth? – Evidence
... the usual Balassa-Samuelson effect, such as the behavior of the real exchange rate of the open sector and regulated prices. They also considered three main sources of uncertainty regarding the implementation of an equilibrium exchange rate model. They concluded that the ensuing three-dimensional spa ...
... the usual Balassa-Samuelson effect, such as the behavior of the real exchange rate of the open sector and regulated prices. They also considered three main sources of uncertainty regarding the implementation of an equilibrium exchange rate model. They concluded that the ensuing three-dimensional spa ...
2. I E D nternational
... recovery of the global economy, the headline commodity price index picked up slightly during the second half of the year. As indicated by the inflation developments in the fourth quarter, advanced economies saw an inflation uptick in line with the rising economic activity. Similarly, inflation trend ...
... recovery of the global economy, the headline commodity price index picked up slightly during the second half of the year. As indicated by the inflation developments in the fourth quarter, advanced economies saw an inflation uptick in line with the rising economic activity. Similarly, inflation trend ...
NBER WORKING PAPER SERIES NEGATIVE NOMINAL INTEREST RATES: Willem H. Buiter
... currency, using what amounts to stamp scrip methods, even though more high-tech ways than physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/mediu ...
... currency, using what amounts to stamp scrip methods, even though more high-tech ways than physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/mediu ...
Examiners` commentaries 2015
... What are the examiners looking for? Examiners are looking for a sound grasp of the economic theory in the subject guide and associated Essential reading, as well as a sense of the empirical validity of the models. Moreover, candidates should make use of examples and discuss theories through these ex ...
... What are the examiners looking for? Examiners are looking for a sound grasp of the economic theory in the subject guide and associated Essential reading, as well as a sense of the empirical validity of the models. Moreover, candidates should make use of examples and discuss theories through these ex ...
Exchange rate volatility effects on export competitiveness
... goods and used for export goods and fiscal incentives. In the analyzed period the trend of exchange rate was descending between 2006 and 2007 and after the last quarter of 2007 the national currency started to depreciate and reaching a maximum average level of about 4.3 lei for one Euro. How the nex ...
... goods and used for export goods and fiscal incentives. In the analyzed period the trend of exchange rate was descending between 2006 and 2007 and after the last quarter of 2007 the national currency started to depreciate and reaching a maximum average level of about 4.3 lei for one Euro. How the nex ...
30 years ago, the topic of Macroeconomics or Monetary Economics
... “financial repression” under which the only financial intermediaries were uncompetitive banks and the government itself, which kept nominal interest rates artificially low (often well below the inflation rate) and allocated capital administratively rather than by market forces.3 Capital inflows and ...
... “financial repression” under which the only financial intermediaries were uncompetitive banks and the government itself, which kept nominal interest rates artificially low (often well below the inflation rate) and allocated capital administratively rather than by market forces.3 Capital inflows and ...
IX. The First Global Economy: The Gold Standard
... Monetary authorities would find themselves restrained from pursuing overinflationary policies by fears of the gold drains that would result. And since central bankers in every country were all working under the same gold standard system, they would all find their policies in rough harmony without ex ...
... Monetary authorities would find themselves restrained from pursuing overinflationary policies by fears of the gold drains that would result. And since central bankers in every country were all working under the same gold standard system, they would all find their policies in rough harmony without ex ...
big mac index and effective exchange rates: the us dollar, the euro
... This study is an investigation of currency misvaluation estimates versus several EER baskets, based on The Economist’s two standards of intrinsic FX value: (1) the original Big Mac index, which applies the PPP condition and is now usually called the raw Big Mac index; and (2) the adjusted Big Mac me ...
... This study is an investigation of currency misvaluation estimates versus several EER baskets, based on The Economist’s two standards of intrinsic FX value: (1) the original Big Mac index, which applies the PPP condition and is now usually called the raw Big Mac index; and (2) the adjusted Big Mac me ...
Michael D. Bordo and AnnaJ. Schwartz TRANSMISSION OF REAL AND MONETARY
... outflow from the home country, so its income is raised even more than is the case in the absence of capital mobility. Under fixed exchange rates a real disturbance is exemplified by an increase in government expenditure in one country that raises real expenditure and income, including the demand for ...
... outflow from the home country, so its income is raised even more than is the case in the absence of capital mobility. Under fixed exchange rates a real disturbance is exemplified by an increase in government expenditure in one country that raises real expenditure and income, including the demand for ...
E x c h a n g e ... d e v e l o p e d ...
... Changes in the global financial system, together with new experience with fixed and floating exchange rates, have resulted in a reassessment of exchange rate strategies for both developed and emerging market economies. The emergence of a currency union in Europe has been seen by some as showing the ...
... Changes in the global financial system, together with new experience with fixed and floating exchange rates, have resulted in a reassessment of exchange rate strategies for both developed and emerging market economies. The emergence of a currency union in Europe has been seen by some as showing the ...
An exorbitant privilege? Implications of reserve
... status. Independent estimates suggest that the dollar was overvalued by around 5 to 10 percent in 2008. This harms the competitiveness of US exporting companies and companies that compete with imports, and we estimate that it imposes a net financial cost of $30 billion to $60 billion. This cost incr ...
... status. Independent estimates suggest that the dollar was overvalued by around 5 to 10 percent in 2008. This harms the competitiveness of US exporting companies and companies that compete with imports, and we estimate that it imposes a net financial cost of $30 billion to $60 billion. This cost incr ...
Negative Nominal Interest Rates:Three ways to overcome the zero lower bound
... currency, using what amounts to stamp scrip methods, even though more high-tech ways than physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/mediu ...
... currency, using what amounts to stamp scrip methods, even though more high-tech ways than physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/mediu ...
Monetary Velocity in a Systemic
... bank money or in short the existing moneysystem - "tems", has succeeded in becoming the absolutely dominant or monopoly money. Whether it is called Dollar, Pound, Yen Swiss Franc or Lev, it is acually of the same construction. The Euro might be slightly different because it is supranational, but the ...
... bank money or in short the existing moneysystem - "tems", has succeeded in becoming the absolutely dominant or monopoly money. Whether it is called Dollar, Pound, Yen Swiss Franc or Lev, it is acually of the same construction. The Euro might be slightly different because it is supranational, but the ...
Diasporas and Dollars
... absence of formal channels of organization and interest articulation, people can evade official rules and regulations through black market and sideline activity, hoarding, tax evasion, and the like, which affect what states can accomplish. In economies with nonconvertible currency, dollar activity m ...
... absence of formal channels of organization and interest articulation, people can evade official rules and regulations through black market and sideline activity, hoarding, tax evasion, and the like, which affect what states can accomplish. In economies with nonconvertible currency, dollar activity m ...
Emerging Local Currency Bond Markets
... The development of EME local currency bond markets is impressive. But EMEs are not equal in their ability to develop their bond markets. Why do some EMEs have larger local currency bond markets than others? Were “original sin” to hold, the answer would be just that some countries are naturally large ...
... The development of EME local currency bond markets is impressive. But EMEs are not equal in their ability to develop their bond markets. Why do some EMEs have larger local currency bond markets than others? Were “original sin” to hold, the answer would be just that some countries are naturally large ...
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... Thus compared to the recent past there is no particular reason for a portfolio shift in favour of euro assets. Nor is there any clear evidence that growth prospects are better in Europe than in the United States: the crisis is at least as severe as in the US, the aging problem is worse, and, despite ...
... Thus compared to the recent past there is no particular reason for a portfolio shift in favour of euro assets. Nor is there any clear evidence that growth prospects are better in Europe than in the United States: the crisis is at least as severe as in the US, the aging problem is worse, and, despite ...
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.