NBER WORKING PAPER SERIES
... that the authorities should pursue price stability (in principle a zero rate of in‡ation going forward, in practice a low rate of in‡ation for some real world price index) in terms of that numéraire. The plausibility of both assumptions is questionable. This matters not just in the Eisler universe, ...
... that the authorities should pursue price stability (in principle a zero rate of in‡ation going forward, in practice a low rate of in‡ation for some real world price index) in terms of that numéraire. The plausibility of both assumptions is questionable. This matters not just in the Eisler universe, ...
Mitigating Turkey's Trilemma Tradeoffs Yasin AKÇELİK Orcan ÇÖRTÜK İbrahim M. TURHAN
... We study the trilemma configuration of the Turkish economy for the period between 2002 and 2012. The paper starts by empirically testing the Mundell-Fleming theoretical concept of an “impossible trinity” (trilemma) for Turkey, following Aizenman, Chinn and Ito (ACI, 2008). This includes calculating ...
... We study the trilemma configuration of the Turkish economy for the period between 2002 and 2012. The paper starts by empirically testing the Mundell-Fleming theoretical concept of an “impossible trinity” (trilemma) for Turkey, following Aizenman, Chinn and Ito (ACI, 2008). This includes calculating ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... private agents do not treat the security holdings of the authorities as being implicitly a part of their own portfolios. Second, contemporaneous financial policy feedback rules can dampen the variance of employment caused by disturbances in the markets for goods and assets even though agents have ra ...
... private agents do not treat the security holdings of the authorities as being implicitly a part of their own portfolios. Second, contemporaneous financial policy feedback rules can dampen the variance of employment caused by disturbances in the markets for goods and assets even though agents have ra ...
Document
... A fixed exchange rate – generates more certainty, but it ties monetary policy to this single overriding goal, and it is open to speculative attacks. Copyright c 2004 by The McGraw-Hill Companies, Inc. All rights reserved. ...
... A fixed exchange rate – generates more certainty, but it ties monetary policy to this single overriding goal, and it is open to speculative attacks. Copyright c 2004 by The McGraw-Hill Companies, Inc. All rights reserved. ...
- Bhoj University
... employment of factors of production, then this excess capacity must usually be used up before the comparative advantage reasoning can be applied. Constant opportunity costs - a more realistic treatment of opportunity costs the reasoning is broadly the same, but specialization of production can only ...
... employment of factors of production, then this excess capacity must usually be used up before the comparative advantage reasoning can be applied. Constant opportunity costs - a more realistic treatment of opportunity costs the reasoning is broadly the same, but specialization of production can only ...
The Federal Reserve Engages the World
... associated concerns about the US external accounts. Gyrations in exchange rates and exchange rate arrangements were poorly understood and analyzed. Increases in energy prices along with mistakes in macroeconomic policies contributed to global recession, rising inflation, and external financial crise ...
... associated concerns about the US external accounts. Gyrations in exchange rates and exchange rate arrangements were poorly understood and analyzed. Increases in energy prices along with mistakes in macroeconomic policies contributed to global recession, rising inflation, and external financial crise ...
Promoting active learning
... • to prevent exchange rate falling, the interest rate must thus not be allowed to fall so far – money supply must be allowed to contract to match the fall in demand for money – internal imbalance will persist ...
... • to prevent exchange rate falling, the interest rate must thus not be allowed to fall so far – money supply must be allowed to contract to match the fall in demand for money – internal imbalance will persist ...
EditedxThesis
... is complete government intervention in the foreign exchange market. The exchange rate is fixed at a given equilibrium level; and if the market forces of demand and supply tend to upset this equilibrium, the central bank would intervene and see that the fixed exchange rate is maintained (IBID). This ...
... is complete government intervention in the foreign exchange market. The exchange rate is fixed at a given equilibrium level; and if the market forces of demand and supply tend to upset this equilibrium, the central bank would intervene and see that the fixed exchange rate is maintained (IBID). This ...
The Effectiveness of Open Market Operations in Monetary
... under the Common Monetary Area (CMA).The CMA arrangement has its roots in a de facto currency union. In 1921, after the establishment of the South African Reserve Bank (SARB), the South African currency became effectively the sole medium of exchange and legal tender in Sou ...
... under the Common Monetary Area (CMA).The CMA arrangement has its roots in a de facto currency union. In 1921, after the establishment of the South African Reserve Bank (SARB), the South African currency became effectively the sole medium of exchange and legal tender in Sou ...
NBER WORKING PAPER SERIES Russell Cooper Hubert Kempf
... small and might, when looked at from the global point of view, be negative. At the same time, EMU would increase cyclical instability, raising the cyclical unemployment rate". ...
... small and might, when looked at from the global point of view, be negative. At the same time, EMU would increase cyclical instability, raising the cyclical unemployment rate". ...
Chapter 18
... § Imbalances in the net capital outflow (NCO) are associated with imbalances in the trade balance (or net exports, NX), following the identity NCO = NX. § Each exchange that affects the net capital outflow, also affects net exports in the same amount. § For instance, if an economy is running a tr ...
... § Imbalances in the net capital outflow (NCO) are associated with imbalances in the trade balance (or net exports, NX), following the identity NCO = NX. § Each exchange that affects the net capital outflow, also affects net exports in the same amount. § For instance, if an economy is running a tr ...
The International Monetary Fund: 70 Years of Reinvention
... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
1 David Hume and Irving Fisher on the Quantity Theory of Money in
... proportion to the increase in the supply of money. The mercantilist hope of a lasting reduction in interest rates due to a larger quantity of money was as futile as the goal of a lasting trade surplus or a permanent stimulus to real economic activity from a larger money supply. Similarly, but movi ...
... proportion to the increase in the supply of money. The mercantilist hope of a lasting reduction in interest rates due to a larger quantity of money was as futile as the goal of a lasting trade surplus or a permanent stimulus to real economic activity from a larger money supply. Similarly, but movi ...
Can Inflation Targeting Work in Emerging Market Countries
... emerging market world (e.g., see Calomiris and Powell (2000). Large budget deficits forced the Argentine government to look for a new source of funds, the banking system which was primarily foreign-owned. After Domingo Cavallo became Minister of the Economy in April 2001 and the central bank preside ...
... emerging market world (e.g., see Calomiris and Powell (2000). Large budget deficits forced the Argentine government to look for a new source of funds, the banking system which was primarily foreign-owned. After Domingo Cavallo became Minister of the Economy in April 2001 and the central bank preside ...
Regional currency areas and the use of foreign currencies
... The third major legal and practical area discussed was the payment system. A country using another country’s currency would ultimately need access to that currency’s payment system. Although there was an example of a system for clearing dollar payments outside the United States (in Hong Kong), if p ...
... The third major legal and practical area discussed was the payment system. A country using another country’s currency would ultimately need access to that currency’s payment system. Although there was an example of a system for clearing dollar payments outside the United States (in Hong Kong), if p ...
Currency Portfolios and Currency Exchange in a
... In our decentralized environment, agents are assumed to meet at random and trade bilaterally. They use currency to buy goods and services and/or the other currency. When agents meet and trade currencies, the nominal exchange rate is the ratio of the quantities of currencies exchanged. To provide age ...
... In our decentralized environment, agents are assumed to meet at random and trade bilaterally. They use currency to buy goods and services and/or the other currency. When agents meet and trade currencies, the nominal exchange rate is the ratio of the quantities of currencies exchanged. To provide age ...
An Economic Analysis of the Effects of Exchange Rate Regimes on
... For over a decade, China has fixed the nominal exchange rate between the dollar and the Yuan at a value that is widely believed to be lower than it otherwise would be. The intention of this policy is to give Chinese producers a competitive advantage over producers in other countries, including the U ...
... For over a decade, China has fixed the nominal exchange rate between the dollar and the Yuan at a value that is widely believed to be lower than it otherwise would be. The intention of this policy is to give Chinese producers a competitive advantage over producers in other countries, including the U ...
NBER WORKING PAPER SERIES MONETARY POLICY AND EXCHANGE RATE Jordi Galí
... real exchange rates than CPI targeting and/or an exchange rate peg. In general, a CPI targeting regime delivers equilibrium dynamics that allow to characterize it as a hybrid regime between domestic inßation targeting and an exchange rate peg. In particular, CPI targeting coincides with domestic inß ...
... real exchange rates than CPI targeting and/or an exchange rate peg. In general, a CPI targeting regime delivers equilibrium dynamics that allow to characterize it as a hybrid regime between domestic inßation targeting and an exchange rate peg. In particular, CPI targeting coincides with domestic inß ...
Invoice Currency: puzzling evidence and new questions from Brazil
... We register, for the first time, the Brazilian foreign trade according to its invoice currency, exploring the Brazilian Ministry of Development, Industry and Foreign Trade (MDIC) series from 2007 to 2011. Our description allows the proposition of fresh questions on Brazil’s economic integration—both ...
... We register, for the first time, the Brazilian foreign trade according to its invoice currency, exploring the Brazilian Ministry of Development, Industry and Foreign Trade (MDIC) series from 2007 to 2011. Our description allows the proposition of fresh questions on Brazil’s economic integration—both ...
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... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
... As recently as 2008, the International Monetary Fund (IMF) seemed to be winding down its business. After the Argentine and Uruguayan crises of 2001-2003, the world had been comparatively free of financial crises. IMF lending, whether expressed as a share of world GDP or imports, fell to its lowest l ...
13-102 Fixed Exchange Rates
... • Nominal exchange rates – In the past, many currencies operated under a fixed-exchange-rate system, in which exchange rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • ...
... • Nominal exchange rates – In the past, many currencies operated under a fixed-exchange-rate system, in which exchange rates were determined by governments • The exchange rates were fixed because the central banks in those countries offered to buy or sell the currencies at the fixed exchange rate • ...
Monetary Policy Shocks from the EU and Munich Personal RePEc Archive
... Countries experiencing contractions are also able to lower rates and use capital controls, but the lowering of rates causes an increase in prices which drags down trade by enough to cause a decrease in GDP. The importance of EU trade in both directions for these SSA countries is due to large trading ...
... Countries experiencing contractions are also able to lower rates and use capital controls, but the lowering of rates causes an increase in prices which drags down trade by enough to cause a decrease in GDP. The importance of EU trade in both directions for these SSA countries is due to large trading ...
Exchange rate and trade: an analysis of the relationship for Ukraine
... 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 demand and ...
... 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 demand and ...
Commodity Price Volatility and Monetary Policy
... 1979, they concluded that gold prices and inflation move together, thus, finding gold to be a reliable hedge against inflation. The interplay between commodity prices and inflation rates contributes significantly to the discussion of the relationship between monetary policy and price volatility. How ...
... 1979, they concluded that gold prices and inflation move together, thus, finding gold to be a reliable hedge against inflation. The interplay between commodity prices and inflation rates contributes significantly to the discussion of the relationship between monetary policy and price volatility. How ...
Tilburg University Theories on the scope for foreign exchange
... 'The exact implications of an operation in foreign currency by the domestic central bank depend on who is the counterparry in the transaction. An earlier version of this paper which was circulated as a Research Memorandum of the Department of Economics, Tilburg University and which is available from ...
... 'The exact implications of an operation in foreign currency by the domestic central bank depend on who is the counterparry in the transaction. An earlier version of this paper which was circulated as a Research Memorandum of the Department of Economics, Tilburg University and which is available from ...