Modelling the rand and commodity prices: A Granger causality and
... commodity on the ‘N’ exchange rates in the world. It is noted that if an individual exporting country is ‘small’, then a change in the value of its currency has no impact on the world price. The author supposes that there is a boom that exogenously increases the world price of a certain commodity, s ...
... commodity on the ‘N’ exchange rates in the world. It is noted that if an individual exporting country is ‘small’, then a change in the value of its currency has no impact on the world price. The author supposes that there is a boom that exogenously increases the world price of a certain commodity, s ...
Zimbabwe: Challenges and Policy Options after Hyperinflation African Department 10/3
... U.S. dollars, and the banking system and the Reserve Bank of Zimbabwe (RBZ) maintain accounting in U.S. dollars. In cash transactions, the U.S. dollar is the currency of choice, but the rand is prevalent in the South of the country, and it also circulates in the rest of the country, in particular co ...
... U.S. dollars, and the banking system and the Reserve Bank of Zimbabwe (RBZ) maintain accounting in U.S. dollars. In cash transactions, the U.S. dollar is the currency of choice, but the rand is prevalent in the South of the country, and it also circulates in the rest of the country, in particular co ...
Australian Government Foreign Exchange Risk Management
... These Guidelines explain the Australian Government’s policy on foreign exchange risk management and the framework under which it operates. The policy has been in place since 1 July 2002. The reporting requirements set out in chapter 5 of these guidelines apply from 1 July 2006. This policy applies t ...
... These Guidelines explain the Australian Government’s policy on foreign exchange risk management and the framework under which it operates. The policy has been in place since 1 July 2002. The reporting requirements set out in chapter 5 of these guidelines apply from 1 July 2006. This policy applies t ...
Exchange rate stabilization in developed and
... McKinnon and Schnabl (2004a, 2004b) stress the asymmetric nature of the world currency system. While the United States as the issuer of the most important international currency pursue an independent monetary policy focused on domestic inflation and growth, most countries outside of Europe tend to s ...
... McKinnon and Schnabl (2004a, 2004b) stress the asymmetric nature of the world currency system. While the United States as the issuer of the most important international currency pursue an independent monetary policy focused on domestic inflation and growth, most countries outside of Europe tend to s ...
THE ENIGMATIC DOLLAR-EURO EXCHANGE RATE AND THE
... 1. Exchange rate puzzles We have become accustomed to the fact that the dollar-euro exchange rate is fickle und seemingly unforecastable. Since its inception, it bottomed out at 0.82 dollar per euro, and peaked at 1,60. Many economists and policy makers take it as the fate of modern time, unchangeab ...
... 1. Exchange rate puzzles We have become accustomed to the fact that the dollar-euro exchange rate is fickle und seemingly unforecastable. Since its inception, it bottomed out at 0.82 dollar per euro, and peaked at 1,60. Many economists and policy makers take it as the fate of modern time, unchangeab ...
Carl Menger`s contributions to the Austrian currency reform debate
... der Staatswissenschaften” in 1892 and was revised twice for the editions following until 1909. In its final version Menger also included it in the second edition of his “Principles” which was published only after his death in 1923. Extensive parts of the 120-page essay (in Hayek’s edition)1 deal wit ...
... der Staatswissenschaften” in 1892 and was revised twice for the editions following until 1909. In its final version Menger also included it in the second edition of his “Principles” which was published only after his death in 1923. Extensive parts of the 120-page essay (in Hayek’s edition)1 deal wit ...
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 ...
How Much Would Germany Have to Adjust? - PISM-u
... Ognian Hishow discusses the common claims that Germany “should do more” to counteract macroeconomic imbalances. In his contribution, Hishow reveals that internal debates in Germany on its role in walking the eurozone out of the woods have found no easy solutions that would find domestic backing or t ...
... Ognian Hishow discusses the common claims that Germany “should do more” to counteract macroeconomic imbalances. In his contribution, Hishow reveals that internal debates in Germany on its role in walking the eurozone out of the woods have found no easy solutions that would find domestic backing or t ...
Is the Crisis Problem Growing More Severe?
... has undermined the credibility of exchange rate commitments and made currency pegs more fragile.13 Figure 1 is consistent with this view. For banking and twin crises, it is not today but the interwar years that are the period of exceptional instability. Afficionados of the Great Depression will not ...
... has undermined the credibility of exchange rate commitments and made currency pegs more fragile.13 Figure 1 is consistent with this view. For banking and twin crises, it is not today but the interwar years that are the period of exceptional instability. Afficionados of the Great Depression will not ...
Global Shocks, Global Financial Crises: How can small open economies like
... Sweden and Denmark with very high ratios of foreign currency debt to total debt could avoid crises by having high export receipts in foreign currency or large international reserves. They also had “country trust” (Caballero Cowan and Kearns 2006) based on sound institutions, the rule of law and stab ...
... Sweden and Denmark with very high ratios of foreign currency debt to total debt could avoid crises by having high export receipts in foreign currency or large international reserves. They also had “country trust” (Caballero Cowan and Kearns 2006) based on sound institutions, the rule of law and stab ...
IMF World Economic Outlook, May 1998-
... and Indicators of Vulnerability rency crisis.79 Indeed, it was largely in response to various crises that modern institutions and practices such as the lender-of-last-resort function of central banks, deposit insurance, prudential and regulatory standards, and international financial arrangements— e ...
... and Indicators of Vulnerability rency crisis.79 Indeed, it was largely in response to various crises that modern institutions and practices such as the lender-of-last-resort function of central banks, deposit insurance, prudential and regulatory standards, and international financial arrangements— e ...
Global Macro Risks in Currency Excess Returns
... In this paper, we study the cross-section of carry-trade generated currency excess returns in terms of their exposure to risk. We focus attention on global risk factors, constructed from macroeconomic fundamentals. The factors are designed to reflect variations in global macroeconomic uncertainty. T ...
... In this paper, we study the cross-section of carry-trade generated currency excess returns in terms of their exposure to risk. We focus attention on global risk factors, constructed from macroeconomic fundamentals. The factors are designed to reflect variations in global macroeconomic uncertainty. T ...
Reserve currency
A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.By the end of the 20th century, the United States dollar was considered the world's most dominant reserve currency, and the world's need for dollars has allowed the United States government as well as Americans to borrow at lower costs, granting them an advantage in excess of $100 billion per year. However, the U.S. dollar's status as a reserve currency, by increasing in value, hurts U.S. exporters.