Extending the Reserve Bank’s macroeconomic balance model of the exchange rate
... and trade elasticities that determine how responsive New Zealand’s trade balance is to movements in the real exchange rate. In the earlier version of the model the parameters that described these assumptions were held constant at estimates of their medium term values. However, the model’s estimates ...
... and trade elasticities that determine how responsive New Zealand’s trade balance is to movements in the real exchange rate. In the earlier version of the model the parameters that described these assumptions were held constant at estimates of their medium term values. However, the model’s estimates ...
Currency Crises in Argentina - Asociación Argentina de Economía
... The speculative attack takes place when the shadow price of exchange rates (the price that would prevail after the speculative attack takes place) equals the exchange rate. At that ...
... The speculative attack takes place when the shadow price of exchange rates (the price that would prevail after the speculative attack takes place) equals the exchange rate. At that ...
NBER WORKING PAPER SERIES FLEXIBLE EXCHANGE RATES AS SHOCK ABSORBERS Sebastian Edwards
... The following notation has been used: g* j is the long run rate of real per capita GDP growth in country j. x j is a vector of structural, institutional and policy variables that determine long run growth; r j is a vector of regional dummies. α, β and θ are parameters, and ω j is an error term assum ...
... The following notation has been used: g* j is the long run rate of real per capita GDP growth in country j. x j is a vector of structural, institutional and policy variables that determine long run growth; r j is a vector of regional dummies. α, β and θ are parameters, and ω j is an error term assum ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... Through these policy initiatives, gross flows on the capital account grew from 15 percent of GDP in 1992–93 to 20 percent of GDP in 2003–4, along with sharp changes in the composition of flows. In 2003–4, gross portfolio flows amounted to as much as 7 percent of GDP. The growth of the capital accoun ...
... Through these policy initiatives, gross flows on the capital account grew from 15 percent of GDP in 1992–93 to 20 percent of GDP in 2003–4, along with sharp changes in the composition of flows. In 2003–4, gross portfolio flows amounted to as much as 7 percent of GDP. The growth of the capital accoun ...
How the Economic Machine Works – Leveragings and
... because, over time, knowledge increases, which in turn raises productivity and living standards. As shown in this chart, over the very long run, there is relatively little variation from the trend line. Even the Great Depression in the 1930s looks rather small. As a result, we can be relatively conf ...
... because, over time, knowledge increases, which in turn raises productivity and living standards. As shown in this chart, over the very long run, there is relatively little variation from the trend line. Even the Great Depression in the 1930s looks rather small. As a result, we can be relatively conf ...
NBER WORKING PAPER SERIES ENDOGENOUS EXCHANGE RATE PASS-THROUGH Michael B. Devereux
... their prices in that country’s currency, thereby reducing the impact of exchange rate changes on the country’s CPI. But the flip side of this is that the foreign country experiences less stable prices, since exporters in the stabilizing country will also begin to pre-set their prices in domestic cu ...
... their prices in that country’s currency, thereby reducing the impact of exchange rate changes on the country’s CPI. But the flip side of this is that the foreign country experiences less stable prices, since exporters in the stabilizing country will also begin to pre-set their prices in domestic cu ...
Chapter 14
... All chartered banks are members of the Canadian Payments Association. Among other things, this association runs an electronic funds transfer system called the Large Value Transfer system (LVTS), where payments clear and settle daily. ...
... All chartered banks are members of the Canadian Payments Association. Among other things, this association runs an electronic funds transfer system called the Large Value Transfer system (LVTS), where payments clear and settle daily. ...
NBER WORKING PAPER SERIES CAN INFLATION TARGETING WORK IN EMERGING MARKET COUNTRIES?
... budget deficits may force the government to confiscate assets, particularly those in the banking system and this has indeed happened often in Latin America. The suspicion that this might occur, would then cause depositors and other creditors to pull their money out of the banking system, and the res ...
... budget deficits may force the government to confiscate assets, particularly those in the banking system and this has indeed happened often in Latin America. The suspicion that this might occur, would then cause depositors and other creditors to pull their money out of the banking system, and the res ...
The Illusive Quest: Do International Capital Controls Contribute to Currency Stability?
... Other studies provide a more mixed view of the effects of capital controls on the factors contributing to currency pressures in developing countries. On the one hand, Bartolini and Drazen (1997a), who survey a number of episodes of capital account liberalization, find that the easing of restriction ...
... Other studies provide a more mixed view of the effects of capital controls on the factors contributing to currency pressures in developing countries. On the one hand, Bartolini and Drazen (1997a), who survey a number of episodes of capital account liberalization, find that the easing of restriction ...
Money - Meetup
... increasing or lowering government borrowing increasing or lowering government spending manipulation of exchange rates raising or lowering bank reserve requirements regulation or prohibition of private currencies taxation or tax breaks on imports or exports of capital into a country ...
... increasing or lowering government borrowing increasing or lowering government spending manipulation of exchange rates raising or lowering bank reserve requirements regulation or prohibition of private currencies taxation or tax breaks on imports or exports of capital into a country ...
ppt_montreal_crise
... According to the IMF… “The results show that the presence of an IMF-supported program does not reduce public spending on either health or education—measured as a share of total public spending, GDP, or in per capita real terms. In fact, we estimate that during program periods, and with all other fa ...
... According to the IMF… “The results show that the presence of an IMF-supported program does not reduce public spending on either health or education—measured as a share of total public spending, GDP, or in per capita real terms. In fact, we estimate that during program periods, and with all other fa ...
Monetary Policy after the Crisis 1. introduction Lars E.O. Svensson
... My conclusions are as follows: The crisis was not caused by monetary policy but by other factors, mainly regulatory and supervisory failures in combination with some special circumstances, such as low real interest rates due to global imbalances and U.S. housing and housing finance policy. Easy mone ...
... My conclusions are as follows: The crisis was not caused by monetary policy but by other factors, mainly regulatory and supervisory failures in combination with some special circumstances, such as low real interest rates due to global imbalances and U.S. housing and housing finance policy. Easy mone ...
The Effects of Short-Term Capital Flows on Exchange Rates in
... The capital inflows to Turkey after full capital account liberalization in 1989 were mainly short-term capital flows (Figure 1). These short-term capital flows constituted mostly credits obtained by banks (Figure 2). The short-term bank credits were the type of credit that responded immediately and ...
... The capital inflows to Turkey after full capital account liberalization in 1989 were mainly short-term capital flows (Figure 1). These short-term capital flows constituted mostly credits obtained by banks (Figure 2). The short-term bank credits were the type of credit that responded immediately and ...
... currencies to a purposive degrowth transition vs. involuntary degrowth in the context of a long-term crisis of global capitalism. The existing track record of local currencies is arguably more relevant to the former scenario, and their role in the second is more speculative. Furthermore, by offering ...
Exchange rate anomalies in the industrial countries: A solution with
... "rst two puzzles and provided suggestions on how to explain them. For what concerns the liquidity puzzle, Sims (1992) suggested that innovations in monetary aggregates may not correctly represent changes in monetary policy in the presence of money demand shocks. Thus, he proposed considering innovat ...
... "rst two puzzles and provided suggestions on how to explain them. For what concerns the liquidity puzzle, Sims (1992) suggested that innovations in monetary aggregates may not correctly represent changes in monetary policy in the presence of money demand shocks. Thus, he proposed considering innovat ...
Risk-Premia, Carry-Trade Dynamics, and Speculative
... Tests of foreign exchange market efficiency are typically based on an assessment of uncovered interest rate parity (UIP). UIP postulates that the expected change in a bilateral exchange rate is equal to the forward premium, i.e., given that covered interest rate parity holds, it compensates for the ...
... Tests of foreign exchange market efficiency are typically based on an assessment of uncovered interest rate parity (UIP). UIP postulates that the expected change in a bilateral exchange rate is equal to the forward premium, i.e., given that covered interest rate parity holds, it compensates for the ...
Forecasting Global Commodity Prices Using South
... 1/3 of the 58 countries that he researches appear to have tangibly interlinked currencies and commodity exports. They state that part of the reason behind their limited findings could be ...
... 1/3 of the 58 countries that he researches appear to have tangibly interlinked currencies and commodity exports. They state that part of the reason behind their limited findings could be ...
What Explains Movements in the Peso/Dollar
... ∆ denotes the first deference. The oil price is not included in the short-run specification because it turns out to be insignificant in the long-run specification as discussed below. CHLUS is the interest spread between the 90-day Chile and U.S. government bills−the 90-day government bill market is ...
... ∆ denotes the first deference. The oil price is not included in the short-run specification because it turns out to be insignificant in the long-run specification as discussed below. CHLUS is the interest spread between the 90-day Chile and U.S. government bills−the 90-day government bill market is ...
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 ...
Exchange Rates and Monetary Policy Uncertainty
... who find that returns in the equity market are earned entirely in the 24-hour window before the announcement, we document that currency excess returns span the entire announcement day and consist of a pre- as well as a postannouncement component. Second, we find that the postannouncement returns are ...
... who find that returns in the equity market are earned entirely in the 24-hour window before the announcement, we document that currency excess returns span the entire announcement day and consist of a pre- as well as a postannouncement component. Second, we find that the postannouncement returns are ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... primarily by price stability, and that policy coordination is harmful because it reduces competition among governments. Coordination can also raise the costs of policy mistakes because governments will do the same wrong things collectively rather than make mutually canceling errors. On Corden’s “mar ...
... primarily by price stability, and that policy coordination is harmful because it reduces competition among governments. Coordination can also raise the costs of policy mistakes because governments will do the same wrong things collectively rather than make mutually canceling errors. On Corden’s “mar ...
The economic and legal implications of speculative capital flows
... more currency unions, and a single world currency. It describes how the regulatory requirements for international finance are lagging behind market advancements and identifies deficiencies within global prudential regulation. Henceforth, the laws (both international and domestic) must catch up to cu ...
... more currency unions, and a single world currency. It describes how the regulatory requirements for international finance are lagging behind market advancements and identifies deficiencies within global prudential regulation. Henceforth, the laws (both international and domestic) must catch up to cu ...
NEER WORKING PAPER SERIES INTERNATI)NAL COORDINATION OF ECONOMIC POLICIES: METHODS, AND EFFECTS
... But the flip side of the coin is that output ...
... But the flip side of the coin is that output ...
What Determines Bilateral Trade Flows? - bu people
... exchange rate arrangements. For example, Nigeria has four exchange rates: (i) the official exchange rate which results from auctions of foreign exchange by the Nigerian Central Bank; (ii) the interbank rate at which commercial banks transact among themselves; (iii) the retail "bureau de change" rate; ...
... exchange rate arrangements. For example, Nigeria has four exchange rates: (i) the official exchange rate which results from auctions of foreign exchange by the Nigerian Central Bank; (ii) the interbank rate at which commercial banks transact among themselves; (iii) the retail "bureau de change" rate; ...
CHAPTER 28
... multiple contraction of deposits occurring in response to a change in reserves) further contracts the money supply. (3) If the Fed decreases the reserve requirement, it expands the money supply. (4) The money multiplier further expands the money supply. b. The approximate real-world money multiplier ...
... multiple contraction of deposits occurring in response to a change in reserves) further contracts the money supply. (3) If the Fed decreases the reserve requirement, it expands the money supply. (4) The money multiplier further expands the money supply. b. The approximate real-world money multiplier ...