The Argentine Monetary and Financial Policies and the Crisis
... In the risk management approach, the policy maker must consider not only the most likely economic evolution path ahead but also the probability distribution of outcomes around this path, together with an analysis of the costs and benefits of these likely scenarios under alternative policy choices. I ...
... In the risk management approach, the policy maker must consider not only the most likely economic evolution path ahead but also the probability distribution of outcomes around this path, together with an analysis of the costs and benefits of these likely scenarios under alternative policy choices. I ...
Effects of the Exchange Rate on Output and Price Level:Evidence
... Buffie, 1986 and Van Wijnbergen, 1986). Since a substantial portion of any new investment in developing countries consists of imported capital goods, depreciation raises the cost of imported capital and reduces its imports. This discourages new investment and exerts contractionary pressure on aggreg ...
... Buffie, 1986 and Van Wijnbergen, 1986). Since a substantial portion of any new investment in developing countries consists of imported capital goods, depreciation raises the cost of imported capital and reduces its imports. This discourages new investment and exerts contractionary pressure on aggreg ...
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... Joneses’ effect lends support to the implicit rivalry-hoarding motives; and commodity-price volatility induces IR hoarding against uncertainty while fuel exporters store their proceeds partly in the form of foreign reserves. During the 2007–2009 GFC period, many of the variables that are significant ...
... Joneses’ effect lends support to the implicit rivalry-hoarding motives; and commodity-price volatility induces IR hoarding against uncertainty while fuel exporters store their proceeds partly in the form of foreign reserves. During the 2007–2009 GFC period, many of the variables that are significant ...
Searching for financial stability: the Mexican Moritz Cruz
... adequacy. In essence, the ratio R/M indicates the number of months that the imports can be financed with the reserves. In this sense, the criterion to establish the optimum level of reserves suggests that they are inadequate if not cover at least three or four months of imports. It is important to n ...
... adequacy. In essence, the ratio R/M indicates the number of months that the imports can be financed with the reserves. In this sense, the criterion to establish the optimum level of reserves suggests that they are inadequate if not cover at least three or four months of imports. It is important to n ...
NBER WORKING PAPER SERIES THE LONG OR SHORT OF IT:
... We next analyze the panel variation in foreign currency exposures. We …nd that factors such as trade openness and the level of development help to explain the cross-sectional variation in foreign currency exposure: richer, more open economies take longer positions in foreign currency. This means the ...
... We next analyze the panel variation in foreign currency exposures. We …nd that factors such as trade openness and the level of development help to explain the cross-sectional variation in foreign currency exposure: richer, more open economies take longer positions in foreign currency. This means the ...
Quiz 8
... same price in all locations. If the price for a good is higher in one market than in another, someone can make a profit by purchasing the good where it is relatively cheap, and selling the good where it is relatively expensive. This process of arbitrage leads to an equalization of prices for the goo ...
... same price in all locations. If the price for a good is higher in one market than in another, someone can make a profit by purchasing the good where it is relatively cheap, and selling the good where it is relatively expensive. This process of arbitrage leads to an equalization of prices for the goo ...
Chapter 21. Exchange Rate Regimes
... legislative or technical measures that limit or prohibit discretionary monetary policymaking. The latter arrangements—called currency boards—generated much interest in the 1990s. Argentina adopted a ...
... legislative or technical measures that limit or prohibit discretionary monetary policymaking. The latter arrangements—called currency boards—generated much interest in the 1990s. Argentina adopted a ...
Going global with bonds
... 2 Throughout this paper, we use the term ‘global fixed income’ to refer to the universe of investment grade fixed income securities available for purchase by international investors, issued in a liquid, hedge-able currency. We use the term ‘UK fixed income’ to refer to the universe of investment gr ...
... 2 Throughout this paper, we use the term ‘global fixed income’ to refer to the universe of investment grade fixed income securities available for purchase by international investors, issued in a liquid, hedge-able currency. We use the term ‘UK fixed income’ to refer to the universe of investment gr ...
Sovereign Wealth and Sovereign Power
... government. All statements of fact and expressions of opinion contained in its publications are the sole responsibility of the author or authors. Council Special Reports (CSRs) are concise policy briefs, produced to provide a rapid response to a developing crisis or contribute to the public’s unders ...
... government. All statements of fact and expressions of opinion contained in its publications are the sole responsibility of the author or authors. Council Special Reports (CSRs) are concise policy briefs, produced to provide a rapid response to a developing crisis or contribute to the public’s unders ...
BUSINESS COMBINATIONS
... securities depend on management intent, which refers to management’s objectives regarding disposition of securities. This intent rule can result in identical debt securities being separately classified into one or any combination of all three classes of trading, held-to-maturity, and available-for ...
... securities depend on management intent, which refers to management’s objectives regarding disposition of securities. This intent rule can result in identical debt securities being separately classified into one or any combination of all three classes of trading, held-to-maturity, and available-for ...
Corporate Debt in emerging eConomies
... However, a combination of domestic and external factors has led to a partial reversal of this strategy, with some emerging economies accumulating significant external debt since 2010. Previewed by the May 2013 “taper tantrum,” there has been considerable speculation that a tightening of dollar-fundi ...
... However, a combination of domestic and external factors has led to a partial reversal of this strategy, with some emerging economies accumulating significant external debt since 2010. Previewed by the May 2013 “taper tantrum,” there has been considerable speculation that a tightening of dollar-fundi ...
No.253 / June 2008 Exposure in External Balance Sheets
... of international portfolios. At the same time, recent advances in macroeconomic theory have provided a more nuanced consideration of the general equilibrium characteristics of the portfolio allocation problem than was attained in the earlier wave of “portfolio balance” models (see, amongst others, D ...
... of international portfolios. At the same time, recent advances in macroeconomic theory have provided a more nuanced consideration of the general equilibrium characteristics of the portfolio allocation problem than was attained in the earlier wave of “portfolio balance” models (see, amongst others, D ...
Interpreting recent movements in sterling
... (PPP) theory of exchange rates. This argues that if aggregate UK tradable prices are higher than those abroad, this will tend to put downward pressure on sterling and vice versa. So, if all goods were tradable, the real exchange rate would tend to remain broadly constant over time. But in practice t ...
... (PPP) theory of exchange rates. This argues that if aggregate UK tradable prices are higher than those abroad, this will tend to put downward pressure on sterling and vice versa. So, if all goods were tradable, the real exchange rate would tend to remain broadly constant over time. But in practice t ...
Chapter 31: Open Economy Macroeconomics: The Balance of
... • At the end of World War II, representatives of 44 countries met in Bretton Woods, New Hampshire. One of their agreements established a system of essentially fixed exchange rates. • Each country agreed to intervene by buying and selling currencies in the foreign exchange market when necessary to ma ...
... • At the end of World War II, representatives of 44 countries met in Bretton Woods, New Hampshire. One of their agreements established a system of essentially fixed exchange rates. • Each country agreed to intervene by buying and selling currencies in the foreign exchange market when necessary to ma ...
Política monetaria en un entorno de dos monedas
... the constraints they face when operating in a dual-currency environment. Policy makers are aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized econo ...
... the constraints they face when operating in a dual-currency environment. Policy makers are aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized econo ...
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... on agricultural trade. Recently, Kost examined potential price and quantity effects of such changes. He drew implications for agricultural trade, assuming that the underlying supply and demand curves were inelastic (1). 2 He concludes the following: ...
... on agricultural trade. Recently, Kost examined potential price and quantity effects of such changes. He drew implications for agricultural trade, assuming that the underlying supply and demand curves were inelastic (1). 2 He concludes the following: ...
and the Exchange Rate
... domestic interest rate implies an expected appreciation to maintain uncovered interest parity. If the expected future exchange rate is fixed, an expected appreciation implies a depreciation of the current exchange rate, which is incompatible with a fixed exchange rate regime. To defend the exchange ...
... domestic interest rate implies an expected appreciation to maintain uncovered interest parity. If the expected future exchange rate is fixed, an expected appreciation implies a depreciation of the current exchange rate, which is incompatible with a fixed exchange rate regime. To defend the exchange ...
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... Joneses’ effect lends support to the implicit rivalry-hoarding motives; and commodity-price volatility induces IR hoarding against uncertainty while fuel exporters store their proceeds partly in the form of foreign reserves. During the 2007–2009 GFC period, many of the variables that are significant ...
... Joneses’ effect lends support to the implicit rivalry-hoarding motives; and commodity-price volatility induces IR hoarding against uncertainty while fuel exporters store their proceeds partly in the form of foreign reserves. During the 2007–2009 GFC period, many of the variables that are significant ...
NBER WORKING PAPER SERIES SELF-VALIDATING OPTIMUM CURRENCY AREAS Giancarlo Corsetti Paolo Pesenti
... choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in which firms choose to preset prices in domestic currency, and let the foreign price adjust according to the law of one price. With complete pass-through, moneta ...
... choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in which firms choose to preset prices in domestic currency, and let the foreign price adjust according to the law of one price. With complete pass-through, moneta ...
Lecture 13 - Har Wai Mun
... determined by the unregulated forces of supply and demand. • (Exchange rate movements have important impacts on imports, exports, and movement of capital between countries). ...
... determined by the unregulated forces of supply and demand. • (Exchange rate movements have important impacts on imports, exports, and movement of capital between countries). ...
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... The empirical version of the model used in this study has 39 regions and 24 commodities, and therefore relies on more than 36,000 commodity price elasticities. Developing this empirical application would probably be impossible without the rich source of elasticity estimates provided by simulations u ...
... The empirical version of the model used in this study has 39 regions and 24 commodities, and therefore relies on more than 36,000 commodity price elasticities. Developing this empirical application would probably be impossible without the rich source of elasticity estimates provided by simulations u ...
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.