Exchange Rate Policies in Arab Countries
... context of Arab economies. While the pegged regime emerges clearly as a distinctive hallmark in Arab exchange rate regimes, an analysis of its advantages and disadvantages is conducted. Thus, the contribution of the paper lies in the analysis of “country specific” circumstances, current as well as e ...
... context of Arab economies. While the pegged regime emerges clearly as a distinctive hallmark in Arab exchange rate regimes, an analysis of its advantages and disadvantages is conducted. Thus, the contribution of the paper lies in the analysis of “country specific” circumstances, current as well as e ...
Inflation and Macroeconomic Instability in Madagascar
... The concept of macroeconomic instability is widely used in the policy-oriented literature. However, this concept is almost never really defined, and seems to refer in turn to high inflation, overvalued currency, unstable real exchange rate, balance of payment deficit, or fiscal deficit, etc. Roughly ...
... The concept of macroeconomic instability is widely used in the policy-oriented literature. However, this concept is almost never really defined, and seems to refer in turn to high inflation, overvalued currency, unstable real exchange rate, balance of payment deficit, or fiscal deficit, etc. Roughly ...
Demand for Money in the Transition Economy
... the extent to which portfolio effects can play a role depends on the difference in the “moneyness” (i.e. the opportunity cost of holding each monetary asset) between the assets bought and sold by the central bank. In the third series of channels, the bank-lending channel2, we include the credit mar ...
... the extent to which portfolio effects can play a role depends on the difference in the “moneyness” (i.e. the opportunity cost of holding each monetary asset) between the assets bought and sold by the central bank. In the third series of channels, the bank-lending channel2, we include the credit mar ...
China Turn Into the Largest Market in the World
... • first, if a country adjusts its exchange rate to , its trade is balanced as Xi = 0. • Secondly, if all countries adjust their exchanges to , each country is own trade balanced. • Finally, by using Chang's model specification or linear specification, the global trade balance condition is always sat ...
... • first, if a country adjusts its exchange rate to , its trade is balanced as Xi = 0. • Secondly, if all countries adjust their exchanges to , each country is own trade balanced. • Finally, by using Chang's model specification or linear specification, the global trade balance condition is always sat ...
Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary
... hourly wages in euros, and the rate of unemployment for a group of peripheral European countries that were either on or pegging to the euro over the period 2000–2011. In the early 2000s, these countries enjoyed large capital inflows, which, through their expansionary effect on domestic absorption, le ...
... hourly wages in euros, and the rate of unemployment for a group of peripheral European countries that were either on or pegging to the euro over the period 2000–2011. In the early 2000s, these countries enjoyed large capital inflows, which, through their expansionary effect on domestic absorption, le ...
free sample here
... will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their home currency, the total home-country receipts will change depending on the exchange rate at the t ...
... will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their home currency, the total home-country receipts will change depending on the exchange rate at the t ...
BALTIC ECONOMIC REFORMS: A Crisis Review of Baltic
... were the major trading partners, a pattern essentially echoed in Baltic external trade today, and these commercial ties formed larger networks that flourished despite Soviet rule.3 But in plain economic terms, the 50 years as part of the Soviet Union led to a complete socialisation of the Baltic eco ...
... were the major trading partners, a pattern essentially echoed in Baltic external trade today, and these commercial ties formed larger networks that flourished despite Soviet rule.3 But in plain economic terms, the 50 years as part of the Soviet Union led to a complete socialisation of the Baltic eco ...
Is Mercosur an Optimal Currency Area? A shock correlation
... In January 1998, at the ceremony of assumption of the pro tempore presidency of Mercosur, the Argentinean president, Carlos Menem proposed Argentina, Brazil, Paraguay and Uruguay to build a currency union. Later on, President Cardoso talked about the need to build a little Maastricht in the region, ...
... In January 1998, at the ceremony of assumption of the pro tempore presidency of Mercosur, the Argentinean president, Carlos Menem proposed Argentina, Brazil, Paraguay and Uruguay to build a currency union. Later on, President Cardoso talked about the need to build a little Maastricht in the region, ...
The Impact of RMB Appreciation on Shandong Foreign Trade Enterprises
... yuan of fiscal revenue has provided effective protection for the appreciation of the RMB exchange rate in 2006, China’s economic growth reached to 11.1 percent in 2008 a quarter, showing a rapid growth that doesn’t close for many years . National economic development experience shows that a country’ ...
... yuan of fiscal revenue has provided effective protection for the appreciation of the RMB exchange rate in 2006, China’s economic growth reached to 11.1 percent in 2008 a quarter, showing a rapid growth that doesn’t close for many years . National economic development experience shows that a country’ ...
The Relationship between Exchange Rates and International Trade
... exchange rates, the supply of goods and the decision to trade became more ambiguous. For example, in the presence of imported inputs, the contraction in the supply of exports is smaller, as acknowledged by Clark himself, because when an exporter imports inputs from a country whose currency depreciat ...
... exchange rates, the supply of goods and the decision to trade became more ambiguous. For example, in the presence of imported inputs, the contraction in the supply of exports is smaller, as acknowledged by Clark himself, because when an exporter imports inputs from a country whose currency depreciat ...
Currency Crises and Collapses
... Castroclaimed in mid-1981: "Having a fixed exchange rate since mid1979, and having the conditions to keep it that way indefinitely, have given the Chilean economy a great stability. ...
... Castroclaimed in mid-1981: "Having a fixed exchange rate since mid1979, and having the conditions to keep it that way indefinitely, have given the Chilean economy a great stability. ...
The Relationship between Exchange Rates and International Trade
... exchange rates, the supply of goods and the decision to trade became more ambiguous. For example, in the presence of imported inputs, the contraction in the supply of exports is smaller, as acknowledged by Clark himself, because when an exporter imports inputs from a country whose currency depreciat ...
... exchange rates, the supply of goods and the decision to trade became more ambiguous. For example, in the presence of imported inputs, the contraction in the supply of exports is smaller, as acknowledged by Clark himself, because when an exporter imports inputs from a country whose currency depreciat ...
International barter
... The first two modes in this group occur almost exclusively in East-West trade. The third is an aspect of most barters. As was pointed out in the previous section, pure barter is very inflexible. The other modes represent ways countries and traders have found to relax some of the constraints it impos ...
... The first two modes in this group occur almost exclusively in East-West trade. The third is an aspect of most barters. As was pointed out in the previous section, pure barter is very inflexible. The other modes represent ways countries and traders have found to relax some of the constraints it impos ...
Chapter 10 8e SM
... in a high inflation country, remeasurement gains and losses are reported in income. Companies might want to hedge their balance sheet exposure in this situation to avoid the adverse impact remeasurement losses can have on consolidated income and earnings per share. The paradox in hedging balance she ...
... in a high inflation country, remeasurement gains and losses are reported in income. Companies might want to hedge their balance sheet exposure in this situation to avoid the adverse impact remeasurement losses can have on consolidated income and earnings per share. The paradox in hedging balance she ...
Optimal Monetary Policy in Open Economies
... policy is characterized by a ‡exible in‡ation target, trading o¤ ‡uctuations in the GDP de‡ator and the output gap vis-à-vis ine¢ cient shocks — such as markup shocks (which would not be accommodated by the social planner). Conversely, the optimal target will result in the complete stabilization of ...
... policy is characterized by a ‡exible in‡ation target, trading o¤ ‡uctuations in the GDP de‡ator and the output gap vis-à-vis ine¢ cient shocks — such as markup shocks (which would not be accommodated by the social planner). Conversely, the optimal target will result in the complete stabilization of ...
Is the Crisis Problem Growing More Severe?
... the amplitude of the cycle -- and, specifically, on the impetus provided by the preceding credit boom and subsequent bust -- in helping to set the stage for a crisis (see e.g. Gavin and Hausmann 1996). While causality is a difficult nut to crack -- some economists would regard it as impossible to di ...
... the amplitude of the cycle -- and, specifically, on the impetus provided by the preceding credit boom and subsequent bust -- in helping to set the stage for a crisis (see e.g. Gavin and Hausmann 1996). While causality is a difficult nut to crack -- some economists would regard it as impossible to di ...
Structuring Local Currency Transactions: Case Studies
... An international provider of long‐term funding (the lender) approves a 5 year loan to a local microfinance institution (the borrower) in Kyrgyzstan with a 5% interest rate for the expansion of the bank’s micro and SME portfolio. Given that the borrower on lends to its customer base ...
... An international provider of long‐term funding (the lender) approves a 5 year loan to a local microfinance institution (the borrower) in Kyrgyzstan with a 5% interest rate for the expansion of the bank’s micro and SME portfolio. Given that the borrower on lends to its customer base ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... side of the economy.2 Most empirical studies using panel data sets and regression techniques find that IMF-supported programs improve the balance of payments and current account (e.g., Khan 1990; Conway 1994; Bordo and Schwartz 2000). This is not surprising, because a key purpose of the IMF is “to g ...
... side of the economy.2 Most empirical studies using panel data sets and regression techniques find that IMF-supported programs improve the balance of payments and current account (e.g., Khan 1990; Conway 1994; Bordo and Schwartz 2000). This is not surprising, because a key purpose of the IMF is “to g ...
Contemporary exchange rate regimes: floating, fixed and hybrid
... The other regimes that Galí and Monacelli consider are a pegged exchange rate; and two Taylor (1993)-type rules that respond, respectively, to domestic inflation and CPI inflation. Pegging the exchange rate allows no variability in the exchange rate, but of all policy choices gives rise to the great ...
... The other regimes that Galí and Monacelli consider are a pegged exchange rate; and two Taylor (1993)-type rules that respond, respectively, to domestic inflation and CPI inflation. Pegging the exchange rate allows no variability in the exchange rate, but of all policy choices gives rise to the great ...
La eleccion del regimen cambiario en America Central
... creation of the EMU. Thus, while Glick and Rose answer the right policy question, their answer is relevant mostly for the case of very small and/or poor countries, which are primarily the ones that have had currency unions (or have adopted the currency of others) in their sample. These controversia ...
... creation of the EMU. Thus, while Glick and Rose answer the right policy question, their answer is relevant mostly for the case of very small and/or poor countries, which are primarily the ones that have had currency unions (or have adopted the currency of others) in their sample. These controversia ...
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.