NBER WORKING PAPER SERIES ADJUSTMENT TO MONETARY POLICY AND
... domestic citizens.3 The signs of the partial effects of the various variables are determined by the assumption of gross substutability.4 The analysis takes the case in which inflation is zero, assuming real domestic expenditure to be a function of real disposable income and the rates of return on th ...
... domestic citizens.3 The signs of the partial effects of the various variables are determined by the assumption of gross substutability.4 The analysis takes the case in which inflation is zero, assuming real domestic expenditure to be a function of real disposable income and the rates of return on th ...
3. Composite indicator and the probability of a crisis - Hal-SHS
... internal issues such as faster growth and higher inflation, as well as fiscal problems, put pressures on these countries’ exchange rates. Contagion channels have also been important in ...
... internal issues such as faster growth and higher inflation, as well as fiscal problems, put pressures on these countries’ exchange rates. Contagion channels have also been important in ...
Sample
... 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 ...
Exchange rate and trade: an analysis of the relationship for Ukraine
... price. The depreciation will also influence import. In particular, it will make the import more expensive in domestic currency. This will stimulate domestic consumers to substitute for domestically produced good. So, the price again will experience two different effects: decrease due to fall in dema ...
... price. The depreciation will also influence import. In particular, it will make the import more expensive in domestic currency. This will stimulate domestic consumers to substitute for domestically produced good. So, the price again will experience two different effects: decrease due to fall in dema ...
The Asian Crises Reexamined
... Like several other recent studies, our statistical analysis finds a positive rather than negative correlation between capital controls and currency crises. These results strongly conflict with the popular view that premature liberalization of capital controls was a major cause of the Asian crises. I ...
... Like several other recent studies, our statistical analysis finds a positive rather than negative correlation between capital controls and currency crises. These results strongly conflict with the popular view that premature liberalization of capital controls was a major cause of the Asian crises. I ...
Global Shocks, Global Financial Crises: How can small open economies like
... increasing globalization have resonance to the first era of globalization in the years 1880-1914. Globalization has been associated with an increased incidence of financial crises, banking crises, debt crises and sudden stops. ...
... increasing globalization have resonance to the first era of globalization in the years 1880-1914. Globalization has been associated with an increased incidence of financial crises, banking crises, debt crises and sudden stops. ...
Chapter 33: Open Economy Macroeconomics: The
... • A higher price level in the United States increases the demand for pounds and decreases the supply of pounds. The result is appreciation of the pound against the dollar. ...
... • A higher price level in the United States increases the demand for pounds and decreases the supply of pounds. The result is appreciation of the pound against the dollar. ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... rate are conditioned by the entire future path of policy. There are equations for the internal macroeconomic structure of the three industrialized regions of the United States, the ROECD, and Japan, while the OPEC and developing-country regions have only their foreign trade and financial structures ...
... rate are conditioned by the entire future path of policy. There are equations for the internal macroeconomic structure of the three industrialized regions of the United States, the ROECD, and Japan, while the OPEC and developing-country regions have only their foreign trade and financial structures ...
An Economic Analysis of the Effects of Exchange Rate Regimes on
... institutions.”10 This implies that a transition economy can be successful during liberalization by not only implementing a more flexible exchange rate, but also backing this regime with strong monetary policies and institutions. In estimating a model to determine the effects of exchange rate regime ...
... institutions.”10 This implies that a transition economy can be successful during liberalization by not only implementing a more flexible exchange rate, but also backing this regime with strong monetary policies and institutions. In estimating a model to determine the effects of exchange rate regime ...
Foreign exchange reserves - how much is enough?
... it is the underlying strength of the economy, and the ability to earn foreign exchange which are vital. In the Caribbean many countries consistently post current account deficits and rely on capital inflows to offset these deficits. However, where current account deficits become very large, dependen ...
... it is the underlying strength of the economy, and the ability to earn foreign exchange which are vital. In the Caribbean many countries consistently post current account deficits and rely on capital inflows to offset these deficits. However, where current account deficits become very large, dependen ...
chapter iii balance of payments – theoretical
... those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance – in an accounting sense - one sided transaction.” 2 In general, Balance of Payments (BOP) of a country is “a systematic rec ...
... those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance – in an accounting sense - one sided transaction.” 2 In general, Balance of Payments (BOP) of a country is “a systematic rec ...
Impact of the Euro adoption on the Economy of Latvia
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
Introducción - Banco de España
... economy's good growth performance and China's dynamic economy pushed up commodity prices last year, which significantly improved the terms of trade. This resulted in better than expected current account balances, hence, contributing to the currency appreciation in most of the Latin American countrie ...
... economy's good growth performance and China's dynamic economy pushed up commodity prices last year, which significantly improved the terms of trade. This resulted in better than expected current account balances, hence, contributing to the currency appreciation in most of the Latin American countrie ...
Identifying the Relationship Between Trade and Exchange Rate
... tradable goods in consumption. In his model, however, this share is exogenously given while in our model differences in consumption baskets are endogenously determined by trading and searching costs. In our model the bilateral pattern of real exchange rate volatility can differ across countries even t ...
... tradable goods in consumption. In his model, however, this share is exogenously given while in our model differences in consumption baskets are endogenously determined by trading and searching costs. In our model the bilateral pattern of real exchange rate volatility can differ across countries even t ...
Exchange rate policy and export performance in a landlocked
... The choice of exchange rate regime for a landlocked developing country involves several considerations. One is the effect on exports. Landlocked countries have to rely heavily on bordering countries for connections to international markets, although for some goods this reliance can be reduced by the ...
... The choice of exchange rate regime for a landlocked developing country involves several considerations. One is the effect on exports. Landlocked countries have to rely heavily on bordering countries for connections to international markets, although for some goods this reliance can be reduced by the ...
hefeker neu mmi08 6670809 en
... Increasing corruption might result in protest from the population, lower foreign investment or less support from international …nancial organizations, like the World Bank and the International Monetary Fund.8 A reduction in corruption, in contrast, leads to personal income losses for the government, ...
... Increasing corruption might result in protest from the population, lower foreign investment or less support from international …nancial organizations, like the World Bank and the International Monetary Fund.8 A reduction in corruption, in contrast, leads to personal income losses for the government, ...
the prerequisites for progress towards a single currency in the
... economic policy coordination where national policies create externalities for neighbouring countries. However, policy unions are difficult to maintain, particularly if countries which are members of the union respond differently to the same external shocks. Where there are long-term relationships th ...
... economic policy coordination where national policies create externalities for neighbouring countries. However, policy unions are difficult to maintain, particularly if countries which are members of the union respond differently to the same external shocks. Where there are long-term relationships th ...
The Foreign Exchange Market
... determined by a decision of the government or the central bank and is achieved by active intervention in the market. China is a country that operates a crawling peg. A crawling peg works like a fixed exchange rate except that the target value changes. The idea behind a crawling peg is to avoid wild ...
... determined by a decision of the government or the central bank and is achieved by active intervention in the market. China is a country that operates a crawling peg. A crawling peg works like a fixed exchange rate except that the target value changes. The idea behind a crawling peg is to avoid wild ...
Macroeconomics Chamberlin and Yueh
... unleashed an equal fiscal expansion. The following figure represents the outcome for each country if they all expand simultaneously. • As output has increased in every country, all will experience a rise in exports as well as the initial expansion in aggregate demand. • Therefore, countries can expa ...
... unleashed an equal fiscal expansion. The following figure represents the outcome for each country if they all expand simultaneously. • As output has increased in every country, all will experience a rise in exports as well as the initial expansion in aggregate demand. • Therefore, countries can expa ...
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.