Official PDF , 23 pages
... adverse effects of depreciation on the net worth of domestic financial institutions and firms (see Lane and others 1999). Because many firms and banks in the crisis countries had severe currency mismatches on their balance sheets, the imf feared that an excessive depreciation of the currency would e ...
... adverse effects of depreciation on the net worth of domestic financial institutions and firms (see Lane and others 1999). Because many firms and banks in the crisis countries had severe currency mismatches on their balance sheets, the imf feared that an excessive depreciation of the currency would e ...
Tight Money in a Post-Crisis Defense of the Exchange Rate: What
... adverse effects of depreciation on the net worth of domestic financial institutions and firms (see Lane and others 1999). Because many firms and banks in the crisis countries had severe currency mismatches on their balance sheets, the imf feared that an excessive depreciation of the currency would e ...
... adverse effects of depreciation on the net worth of domestic financial institutions and firms (see Lane and others 1999). Because many firms and banks in the crisis countries had severe currency mismatches on their balance sheets, the imf feared that an excessive depreciation of the currency would e ...
The Libyan Asset Freeze and Its Application to Foreign Government
... establishment of a managed account system, -consisting of a current account with the New York office, and a call account with the London office.34 The LAFB, however, rejected the managed account proposal. 3 Bankers Trust Company revived the managed account system proposal in 1980 and reached an agre ...
... establishment of a managed account system, -consisting of a current account with the New York office, and a call account with the London office.34 The LAFB, however, rejected the managed account proposal. 3 Bankers Trust Company revived the managed account system proposal in 1980 and reached an agre ...
Keynes and Friedman on Laissez
... – as a contemporary for Keynes and much more as a historian for Friedman. As during the time of the Great Depression, one can now find again at the core of debates issues such as the self-‐ ...
... – as a contemporary for Keynes and much more as a historian for Friedman. As during the time of the Great Depression, one can now find again at the core of debates issues such as the self-‐ ...
Exchange Rates and the Foreign Exchange Market: An Asset
... measured in terms of dollars, prices in France were so much lower than they had been a few years before that a shopper’s savings could offset the cost of an airplane ticket from New York or Chicago. Five years later, however, the prices of French goods again looked high to Americans. What economic f ...
... measured in terms of dollars, prices in France were so much lower than they had been a few years before that a shopper’s savings could offset the cost of an airplane ticket from New York or Chicago. Five years later, however, the prices of French goods again looked high to Americans. What economic f ...
Money and the Payments System
... of deferred payment. Hence a furniture maker may be willing to sell the boat builder a chair now in exchange for money in the future. How important is it that money be a reliable store of value and standard of deferred payment? People care about how much food, clothing, and other goods and services ...
... of deferred payment. Hence a furniture maker may be willing to sell the boat builder a chair now in exchange for money in the future. How important is it that money be a reliable store of value and standard of deferred payment? People care about how much food, clothing, and other goods and services ...
World Economic Outlook, October 2015, Chapter 3: Exchange Rates
... with stronger domestic demand experiencing appreciation. Compare this with another example, in which the exchange rate change is not driven by domestic demand, but reflects an unexpected shift in investor preferences for U.S.-dollar-denominated assets. The behavior of domestic demand in the two exam ...
... with stronger domestic demand experiencing appreciation. Compare this with another example, in which the exchange rate change is not driven by domestic demand, but reflects an unexpected shift in investor preferences for U.S.-dollar-denominated assets. The behavior of domestic demand in the two exam ...
Leading Indicators of Currency Crises
... weaken the banking system, and the authorities may prefer to devalue rather than incur the cost of a bailout that could result from an explicit or implicit official guarantee on the banking system liabilities.5 Therefore, the presence of banking problems (say, as reflected in the relative price of b ...
... weaken the banking system, and the authorities may prefer to devalue rather than incur the cost of a bailout that could result from an explicit or implicit official guarantee on the banking system liabilities.5 Therefore, the presence of banking problems (say, as reflected in the relative price of b ...
Foreign Exchange Market Organization in Selected
... transparency. More specifically, they affect the overall market design by establishing the rules of the game for the currency exchange within the country. Regulations determine the legally permitted uses and sources of foreign exchange, the type of market participants, and the rules for their intera ...
... transparency. More specifically, they affect the overall market design by establishing the rules of the game for the currency exchange within the country. Regulations determine the legally permitted uses and sources of foreign exchange, the type of market participants, and the rules for their intera ...
Gold Demand Trends Full Year 2013
... intended consequence of reducing the current account deficit in India. Nevertheless, import restrictions are likely to remain in place at least until the end of the first quarter of 2014 and perhaps beyond, keeping supply from this source constrained. Unofficial gold will undoubtedly continue to sup ...
... intended consequence of reducing the current account deficit in India. Nevertheless, import restrictions are likely to remain in place at least until the end of the first quarter of 2014 and perhaps beyond, keeping supply from this source constrained. Unofficial gold will undoubtedly continue to sup ...
Changes in the Monetary Base
... facing the Fed is not quite so simple. The monetary base fluctuates, particularly over short horizons, for many reasons. For the Fed to control the size of the monetary base and the money supply, it must offset these changes. This task can be daunting, as is illustrated by the problems facing the tr ...
... facing the Fed is not quite so simple. The monetary base fluctuates, particularly over short horizons, for many reasons. For the Fed to control the size of the monetary base and the money supply, it must offset these changes. This task can be daunting, as is illustrated by the problems facing the tr ...
Forex Medium-Term Outlook
... A weak JPY scenario remains in place for the rest of this year for USD/JPY going by supply-demand and interest rates. The improvement in the trade balance continues to be a risk factor, but as of the present stage, it is merely lowering the pressure to sell, rather than increasing the pressure to bu ...
... A weak JPY scenario remains in place for the rest of this year for USD/JPY going by supply-demand and interest rates. The improvement in the trade balance continues to be a risk factor, but as of the present stage, it is merely lowering the pressure to sell, rather than increasing the pressure to bu ...
Explaining the Early Years of the Euro Exchange Rate: an episode
... theoretical model of pre- and post-euro foreign exchange trading that generates three possible causes of euro depreciation: a reduction in hedging opportunities due to the elimination of the legacy currencies, asymmetric information due to some traders having superior information regarding shocks to ...
... theoretical model of pre- and post-euro foreign exchange trading that generates three possible causes of euro depreciation: a reduction in hedging opportunities due to the elimination of the legacy currencies, asymmetric information due to some traders having superior information regarding shocks to ...
Gold Confiscation
... that the individual can use the Eminent Domain Clause to extract a “fair” price from the government for coins that are subject to confiscation. “Fair” price connotes market price, in today’s understanding, and not an artificially set price by the powers in Washington. The Roosevelt administration pr ...
... that the individual can use the Eminent Domain Clause to extract a “fair” price from the government for coins that are subject to confiscation. “Fair” price connotes market price, in today’s understanding, and not an artificially set price by the powers in Washington. The Roosevelt administration pr ...
WO R K I N G PA P... WHAT IS GLOBAL EXCESS LIQUIDITY, AND DOES IT MATTER?
... so on) emphasising that, due to a number of capital market imperfections, money and nonmonetary assets may be imperfectly substitutable. As a consequence, the behaviour of monetary aggregates may reflect not only contemporaneous output, price and interest rate developments, but also a “spectrum of y ...
... so on) emphasising that, due to a number of capital market imperfections, money and nonmonetary assets may be imperfectly substitutable. As a consequence, the behaviour of monetary aggregates may reflect not only contemporaneous output, price and interest rate developments, but also a “spectrum of y ...
Multinational Finance
... The Impact of News Events The U.S. government reports that U.S. money supply M1 increased by $1 billion more than expected in the most recent quarter This would appear to result in a larger supply of dollars and hence a lower value for the dollar. However, the increase in the money supply has alrea ...
... The Impact of News Events The U.S. government reports that U.S. money supply M1 increased by $1 billion more than expected in the most recent quarter This would appear to result in a larger supply of dollars and hence a lower value for the dollar. However, the increase in the money supply has alrea ...
An extended dynamic IS-LM model of exchange rate adjustments
... The foreign exchange market is crucial to international economic co-operations. It facilitates international trade and transactions. Nonetheless, disturbances generated in one part of this interlinked global economy can also be transmitted and magnified through the foreign exchange market as one of ...
... The foreign exchange market is crucial to international economic co-operations. It facilitates international trade and transactions. Nonetheless, disturbances generated in one part of this interlinked global economy can also be transmitted and magnified through the foreign exchange market as one of ...
Post-EMS Exchange Risk Trends: A Comparative Perspective
... because the rules which govern expectations change or because of variations derived from the learning process during each trading day. We use daily data corresponding to each trading day for exchange rates and for three-month interbank interest rates. The sample period is from January 1, 1996 to May ...
... because the rules which govern expectations change or because of variations derived from the learning process during each trading day. We use daily data corresponding to each trading day for exchange rates and for three-month interbank interest rates. The sample period is from January 1, 1996 to May ...
Carl Menger`s contributions to the Austrian currency reform debate
... Extensive parts of the 120-page essay (in Hayek’s edition)1 deal with aspects of monetary theory which were intensly discussed 100 years ago but are considered to be outside the subject of economic theory today. In the first parts Menger carefully elaborates the historical origins of money and the i ...
... Extensive parts of the 120-page essay (in Hayek’s edition)1 deal with aspects of monetary theory which were intensly discussed 100 years ago but are considered to be outside the subject of economic theory today. In the first parts Menger carefully elaborates the historical origins of money and the i ...
1 Economic Fundamentals on Exchange Rates under Different
... in international trade. Most of the exchange rate determination analysis mentioned so far focused on the developed countries’ major currencies. There are, of course, reasons for this. Exchange rates of the major currencies are mostly freely determined by the market after the 1973 Bretton Woods accor ...
... in international trade. Most of the exchange rate determination analysis mentioned so far focused on the developed countries’ major currencies. There are, of course, reasons for this. Exchange rates of the major currencies are mostly freely determined by the market after the 1973 Bretton Woods accor ...
Using a Credit Aggregate Target to Implement Monetary Policy in
... difficult to pin down. Meanwhile, oil shocks and agricultural price shocks during this same period have powerfully illustrated the importance of instability on the economy's supply side as a cause of economic fluctuations. For all of these reasons, today's disillusionment with the monetary targets f ...
... difficult to pin down. Meanwhile, oil shocks and agricultural price shocks during this same period have powerfully illustrated the importance of instability on the economy's supply side as a cause of economic fluctuations. For all of these reasons, today's disillusionment with the monetary targets f ...
Why are some exchange rates more volatile than others? Evidence from
... The data set consists of a panel of 11 macroeconomic indicators for 19 countries between 1981 and 2003. There are a number of di¤erent approaches to measuring exchange rate volatility and as a result, there is no generally accepted measure. Most countries do not publish monthly real exchange series, ...
... The data set consists of a panel of 11 macroeconomic indicators for 19 countries between 1981 and 2003. There are a number of di¤erent approaches to measuring exchange rate volatility and as a result, there is no generally accepted measure. Most countries do not publish monthly real exchange series, ...
Chapter 02 The Dynamic Environment of International Trade
... 50. Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small business after small business go bankrupt because cheaper foreign goods have been more popular. The UK has just started a cell-phone manufacturing industry and ...
... 50. Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small business after small business go bankrupt because cheaper foreign goods have been more popular. The UK has just started a cell-phone manufacturing industry and ...
Full Text
... currency as a medium of exchange, which is sometimes referred to as ”currency substitution”.1 The Russian economy appears to have reached this third stage. Anecdotal evidence indicates that foreign currency, in particular the U.S. dollar, is widely used, not just as a store of value and as unit of a ...
... currency as a medium of exchange, which is sometimes referred to as ”currency substitution”.1 The Russian economy appears to have reached this third stage. Anecdotal evidence indicates that foreign currency, in particular the U.S. dollar, is widely used, not just as a store of value and as unit of a ...
The relationship between carry trade currencies and
... One of the most popular investment and trading strategies over the last decade, has been the currency carry trade, which allows traders and investors to buy high-yielding currencies in the Foreign Exchange spot market by borrowing, low or zero interest rate currencies in the form of pairs, such as t ...
... One of the most popular investment and trading strategies over the last decade, has been the currency carry trade, which allows traders and investors to buy high-yielding currencies in the Foreign Exchange spot market by borrowing, low or zero interest rate currencies in the form of pairs, such as t ...