Inflation Targeting and Business Cycle - Berkeley-Haas
... We are now in a position to compare the cross-country output covariance as the monetary regime of the small open economy changes. The most obvious default case is where the authorities pursue no active policy via interest rates (NAP).2 Consider the alternative, where the interest rate is directed ex ...
... We are now in a position to compare the cross-country output covariance as the monetary regime of the small open economy changes. The most obvious default case is where the authorities pursue no active policy via interest rates (NAP).2 Consider the alternative, where the interest rate is directed ex ...
MUCH ADO ABOUT NOTHING? THE RMB`S INCLUSION IN THE
... Monetary and Financial System (Helleiner 2014). For a little while, there seemed to be consensus among many governments and analysts that a national currency was simply too tied to the self-interest and economic policy of the issuing country to serve as the reserve currency for the rest of the world ...
... Monetary and Financial System (Helleiner 2014). For a little while, there seemed to be consensus among many governments and analysts that a national currency was simply too tied to the self-interest and economic policy of the issuing country to serve as the reserve currency for the rest of the world ...
Foreign Exchange Intervention and Equilibrium Real Exchange Rates
... source of shocks to real and nominal exchange rates (see, inter alia, Clarida and Gali, 1994, Kim and Roubini, 2000), Kim (2003) comes up with similar suggestions. Kim analyses jointly the effects of foreign exchange intervention strategies –pursued by setting exchange reserves- and monetary policy ...
... source of shocks to real and nominal exchange rates (see, inter alia, Clarida and Gali, 1994, Kim and Roubini, 2000), Kim (2003) comes up with similar suggestions. Kim analyses jointly the effects of foreign exchange intervention strategies –pursued by setting exchange reserves- and monetary policy ...
The Effects of Unconventional and Conventional U.S. Monetary
... The extent to which an announcement affects the currency when it is released to the public largely depends on whether or not market participants expect the announcement. If market participants anticipate the content of the news, then no additional information is revealed at the time of the announcem ...
... The extent to which an announcement affects the currency when it is released to the public largely depends on whether or not market participants expect the announcement. If market participants anticipate the content of the news, then no additional information is revealed at the time of the announcem ...
Money, Prices and the Real Economy
... It is clear, then, what the objective of monetary policy ought to be – price stability. But how to achieve it? Numerous approaches have been tried. Currently inflation targets are fashionable. An increasing number of countries, including Britain, have announced that the objective of monetary policy ...
... It is clear, then, what the objective of monetary policy ought to be – price stability. But how to achieve it? Numerous approaches have been tried. Currently inflation targets are fashionable. An increasing number of countries, including Britain, have announced that the objective of monetary policy ...
Exchange-Rate Determination: A Survey of
... portation and other transactions costs in reality leave room for substantial purchasing-power disparities to occur before residents in any one country would find it economical to exchange an "overvalued" local currency for currencies to use in purchasing goods and services abroad. Similarly, advoca ...
... portation and other transactions costs in reality leave room for substantial purchasing-power disparities to occur before residents in any one country would find it economical to exchange an "overvalued" local currency for currencies to use in purchasing goods and services abroad. Similarly, advoca ...
NBER WORKING PAPER SERIES EXCESS CAPACITY, MONOPOLISTIC COMPETITION, AND INTERNATIONAL TRANSMISSION
... This is an extensive revision of Svensson and van Wijnbergen (1986). We are grateful for comments by Bernard Dumas, Jeremy Greenwood, Jeffrey Sachs, two anonymous referees and participants in seminars at Columbia University, Harvard University, Massachusetts Institute of Technology, NBER, University ...
... This is an extensive revision of Svensson and van Wijnbergen (1986). We are grateful for comments by Bernard Dumas, Jeremy Greenwood, Jeffrey Sachs, two anonymous referees and participants in seminars at Columbia University, Harvard University, Massachusetts Institute of Technology, NBER, University ...
an External Instruments Approach
... on real activity and inflation, and instead they abstract from open economy issues and the inclusion of financial variables, which are central to our investigation. Sims (1992) is the seminal study to show anomalies related to movements in inflation and exchange rates using a recursive identificatio ...
... on real activity and inflation, and instead they abstract from open economy issues and the inclusion of financial variables, which are central to our investigation. Sims (1992) is the seminal study to show anomalies related to movements in inflation and exchange rates using a recursive identificatio ...
NBER WORKING PAPER SERIES SPECIAL EXCHANGE RATES FOR CAPITAL ACCOUNT TRANSACTIONS Rudiger Dornbusch
... escalating rates of price increase. Figure 1 shows the exchange rate of the dollar in Berlin in early 1923. During February-March the government manages to stabilize the rate and while this is going on prices are stable. Then a loss in confidence, related to the reparations problem, ensues and in a ...
... escalating rates of price increase. Figure 1 shows the exchange rate of the dollar in Berlin in early 1923. During February-March the government manages to stabilize the rate and while this is going on prices are stable. Then a loss in confidence, related to the reparations problem, ensues and in a ...
The Dynamics of Currency Substitution, Asset Substitution and De
... dollarization can also lead to a distortion in various measures of macroeconomic activity making the formulation of macroeconomic policy more difficult. However, since de facto dollarization represents a revealed preference for holding foreign currency as a means of reducing the risks of domestic i ...
... dollarization can also lead to a distortion in various measures of macroeconomic activity making the formulation of macroeconomic policy more difficult. However, since de facto dollarization represents a revealed preference for holding foreign currency as a means of reducing the risks of domestic i ...
Chapter Two: New Nature of Emerging-Market Crises -
... absence of budget deficits.6 However, outside of Asia, persistent fiscal deficits typically contributed to the creation of “twin” current account deficits and added to the country’s vulnerability: Government borrowing competes with private investment unless additional financing is obtained from abro ...
... absence of budget deficits.6 However, outside of Asia, persistent fiscal deficits typically contributed to the creation of “twin” current account deficits and added to the country’s vulnerability: Government borrowing competes with private investment unless additional financing is obtained from abro ...
Monetary Policy Strategies for Emerging Market Countries
... replacement of the brief interim government of Rodriguez Saa, finally pulled the plug on the currency board. On January 6, the exchange rate applicable to exports, essential imports and most capital transactions was set at 1.4 pesos/dollar, while a floating exchange was created for all other transa ...
... replacement of the brief interim government of Rodriguez Saa, finally pulled the plug on the currency board. On January 6, the exchange rate applicable to exports, essential imports and most capital transactions was set at 1.4 pesos/dollar, while a floating exchange was created for all other transa ...
Chapter 12
... • covers receipts and payments of income associated, respectively, with residents’ holdings of external financial assets and with residents’ liabilities to nonresidents. Investment income consists of direct investment income, portfolio investment income, and other investment income. The direct inves ...
... • covers receipts and payments of income associated, respectively, with residents’ holdings of external financial assets and with residents’ liabilities to nonresidents. Investment income consists of direct investment income, portfolio investment income, and other investment income. The direct inves ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2008, Volume 23
... dynamics, such as real activity and inflation) and by series‐specific components unrelated to the general state of the economies, et . For instance, (2) specifies that indicators of country‐level economic activity or inflation are driven by a European interest rate, EA latent factors Ft , and a comp ...
... dynamics, such as real activity and inflation) and by series‐specific components unrelated to the general state of the economies, et . For instance, (2) specifies that indicators of country‐level economic activity or inflation are driven by a European interest rate, EA latent factors Ft , and a comp ...
Working Paper No. 405 Monetary policy, capital
... A range of hypotheses have been put forward to explain the boom in house prices that occurred in the United States from the mid-1990s to 2007. This paper considers the relative importance of two of these hypotheses. First, global imbalances increased liquidity in the US nancial system, driving down ...
... A range of hypotheses have been put forward to explain the boom in house prices that occurred in the United States from the mid-1990s to 2007. This paper considers the relative importance of two of these hypotheses. First, global imbalances increased liquidity in the US nancial system, driving down ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... These three countries have always had strong ties since 1951, when they signed the ANZUS treaty which specifies the three countries will cooperate on defense matters in the Pacific Ocean (King, 2003). Not only have these countries have had military alliance, the U.S has collaborated with Australia o ...
... These three countries have always had strong ties since 1951, when they signed the ANZUS treaty which specifies the three countries will cooperate on defense matters in the Pacific Ocean (King, 2003). Not only have these countries have had military alliance, the U.S has collaborated with Australia o ...
NBER WORKING PAPER SERIES THE FUTURE OF EMU: WHAT DOES
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
Alternative Guiding Principles for the Use of Monetary Policy.
... agement and influenced by its advice, rather than being managed directly by the government as an integral part of its general economic policy. The central bank is an independent corporation, not a government department; its personnel is selected by a different procedure than the Civil Service; and ...
... agement and influenced by its advice, rather than being managed directly by the government as an integral part of its general economic policy. The central bank is an independent corporation, not a government department; its personnel is selected by a different procedure than the Civil Service; and ...
Do loans harm?
... of the IMF’s most recent task, to fight the current financial crisis, which is largely caused by income and wealth inequalities (Leijonhuvfud 2009), and might lead to even more inequality (Atkinsons 2008). Is it really so that for IMF programs there exists no equity-efficiency tradeoff, as simply bo ...
... of the IMF’s most recent task, to fight the current financial crisis, which is largely caused by income and wealth inequalities (Leijonhuvfud 2009), and might lead to even more inequality (Atkinsons 2008). Is it really so that for IMF programs there exists no equity-efficiency tradeoff, as simply bo ...
View/Open
... output. He also revealed that a 1% appreciation (depreciation) in the trade-weighted exchange rate would reduce (increase) the CPI inflation rate by 0.3%. Brash (2000) attributed substantial depreciation of the New Zealand dollar during 1997 -2000 to large balance of payment deficits, an overvalued ...
... output. He also revealed that a 1% appreciation (depreciation) in the trade-weighted exchange rate would reduce (increase) the CPI inflation rate by 0.3%. Brash (2000) attributed substantial depreciation of the New Zealand dollar during 1997 -2000 to large balance of payment deficits, an overvalued ...
Author`s Note, Crash Proof 2.0
... healthy, prosperous, and growing, and John Wiley & Sons was the only company willing to take a chance. I finished writing the book by mid-2006, and the first copies arrived in bookstores in February 2007. Yet even then, as warning bells began to sound, most would have considered a book about an immi ...
... healthy, prosperous, and growing, and John Wiley & Sons was the only company willing to take a chance. I finished writing the book by mid-2006, and the first copies arrived in bookstores in February 2007. Yet even then, as warning bells began to sound, most would have considered a book about an immi ...
Should the IMF Pursue Capital-Account
... controls. Such controls, intended to reduce the vulnerability of domestic institutions to shifts in foreign capital flows, could well form part of a set of internationally accepted prudential standards. In addition to prudential controls, a case can be made that countries with weak financial systems ...
... controls. Such controls, intended to reduce the vulnerability of domestic institutions to shifts in foreign capital flows, could well form part of a set of internationally accepted prudential standards. In addition to prudential controls, a case can be made that countries with weak financial systems ...
F inancial dollarization
... always be on opposite sides of MVP, if not at MVP. For example, starting from MVP, an increase in the domestic interest rate differential in favor of the home currency should increase the attractiveness of home currency deposits and lower that of home currency loans, thereby reducing deposit dollari ...
... always be on opposite sides of MVP, if not at MVP. For example, starting from MVP, an increase in the domestic interest rate differential in favor of the home currency should increase the attractiveness of home currency deposits and lower that of home currency loans, thereby reducing deposit dollari ...
Trends in cryptocurrencies and blockchain technologies: a monetary
... fiat currency as any legal tender designated and issued by a central authority that people are willing to accept in exchange for goods and services because it is backed by regulation, and because they trust this central authority. Fiat money is similar to commodity-backed money in this regard with r ...
... fiat currency as any legal tender designated and issued by a central authority that people are willing to accept in exchange for goods and services because it is backed by regulation, and because they trust this central authority. Fiat money is similar to commodity-backed money in this regard with r ...
NBER WORKING PAPER SERIES ISSUES CONCERNING NOMINAL ANCHORS FOR MONETARY POLICY Robert Flood
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...
... importance and implications of any such analytical exercise, of course, need to be interpreted with an appropriate degree of caution. ...