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. ...
NBER WORKING PAPER SERIES Jean Boivin Marc P. Giannoni
... monetary policy in the EA tended to trigger a depreciation of the lira and the peseta, and a smaller decline of exports of these countries than in the rest of the EA. The creation of the euro has contributed to an widespread reduction in the e¤ect of monetary shocks. In particular, long-term interes ...
... monetary policy in the EA tended to trigger a depreciation of the lira and the peseta, and a smaller decline of exports of these countries than in the rest of the EA. The creation of the euro has contributed to an widespread reduction in the e¤ect of monetary shocks. In particular, long-term interes ...
Non deliverable forwards: 2013 and beyond
... detailed by the survey. Data from the Bank of England on London trading, from the Depository Trust & Clearing Corporation (DTCC) and from an electronic broker show that the market for NDFs grew rapidly from April 2008 to April 2013, but its development since April 2013 is less clear. By analysing th ...
... detailed by the survey. Data from the Bank of England on London trading, from the Depository Trust & Clearing Corporation (DTCC) and from an electronic broker show that the market for NDFs grew rapidly from April 2008 to April 2013, but its development since April 2013 is less clear. By analysing th ...
International Reserves - Independent Evaluation Office (IEO)
... • Reserve adequacy indicators should be applied flexibly and reflect country-specific circumstances; and • The multiple trade-offs involved in decisions on reserve accumulation and reserve adequacy at the country level need to be recognized, and advice on reserves should be integrated with advice in ...
... • Reserve adequacy indicators should be applied flexibly and reflect country-specific circumstances; and • The multiple trade-offs involved in decisions on reserve accumulation and reserve adequacy at the country level need to be recognized, and advice on reserves should be integrated with advice in ...
Models of Equilibrium Real Exchange Rates Revisited: A Selective
... resources and external debt sustainability. A minimum criterion for external balance is that the current account balance be “sustainable” over time. Unlike the simple PPP approach, the FEER approach recognizes that the ERER will vary across time as factors impacting sustainable internal and external ...
... resources and external debt sustainability. A minimum criterion for external balance is that the current account balance be “sustainable” over time. Unlike the simple PPP approach, the FEER approach recognizes that the ERER will vary across time as factors impacting sustainable internal and external ...
Predictability of Exchange Rates in Sri Lanka: A Test of
... banking system. In the wholesale market, transactions take place between dealers on the spot, cash and forward basis between the Sri Lankan rupee and the US dollar. The Central Bank's role is limited to intervene in the wholesale market to maintain an orderly market as and when necessary. As at the ...
... banking system. In the wholesale market, transactions take place between dealers on the spot, cash and forward basis between the Sri Lankan rupee and the US dollar. The Central Bank's role is limited to intervene in the wholesale market to maintain an orderly market as and when necessary. As at the ...
Out-of-Sample Analysis of International Reserves for
... doing, we consider dynamics of reserve to GDP as well as joint endogeneity of the explanatory variables. We confirm previous studies’ findings: traditional determinants for the reserves such as trade openness and the terms of trade have significant effects. M2/GDP is positively associated with the r ...
... doing, we consider dynamics of reserve to GDP as well as joint endogeneity of the explanatory variables. We confirm previous studies’ findings: traditional determinants for the reserves such as trade openness and the terms of trade have significant effects. M2/GDP is positively associated with the r ...
The Reserve Bank’s new foreign exchange intervention policy
... Intervention near the peaks of the exchange rate cycle will leave the Bank with an open (unhedged) net ‘long’ foreign currency position, while intervention at troughs will result in an open net ‘short’ foreign currency position.6 Open foreign currency positions will be closed when the exchange rate ...
... Intervention near the peaks of the exchange rate cycle will leave the Bank with an open (unhedged) net ‘long’ foreign currency position, while intervention at troughs will result in an open net ‘short’ foreign currency position.6 Open foreign currency positions will be closed when the exchange rate ...
WORKING PAPER SERIES Estimates of Fundamental Real
... The fundamental real exchange rate (FRER) is defined as the real exchange rate that is in line with economic fundamentals in the medium term. If we knew the values of the FRERs, we could learn very important information for the policy debate relating to EMU entry. First, significant deviations of th ...
... The fundamental real exchange rate (FRER) is defined as the real exchange rate that is in line with economic fundamentals in the medium term. If we knew the values of the FRERs, we could learn very important information for the policy debate relating to EMU entry. First, significant deviations of th ...
Exchange Rate Pass-Through to Import Prices in the
... to maintain local market share, even if nominal exchange rate variability is high. The second strand of literature embeds a more general-equilibrium approach, whereby prices are sticky in one currency, i.e. set in advance of the realization of the exchange rate by exporters. When prices are determin ...
... to maintain local market share, even if nominal exchange rate variability is high. The second strand of literature embeds a more general-equilibrium approach, whereby prices are sticky in one currency, i.e. set in advance of the realization of the exchange rate by exporters. When prices are determin ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... dustries, and this has to be taken into account in assessing the overall impact of the dollar depreciation. Another widespread belief in the policy literature is that a pickup in foreign productivity growth rates, relative to U.S. rates, should lead to a closing of global imbalances. Our analytical ...
... dustries, and this has to be taken into account in assessing the overall impact of the dollar depreciation. Another widespread belief in the policy literature is that a pickup in foreign productivity growth rates, relative to U.S. rates, should lead to a closing of global imbalances. Our analytical ...
Financial Globalization and Monetary Policy∗
... globalization for the design of monetary policy1 . There are many aspects to this question. Most central banks now either explicitly or implicitly follow a policy of inflation targeting. Under this policy, price stability, appropriately defined, is the principal goal of monetary policy. Is this conc ...
... globalization for the design of monetary policy1 . There are many aspects to this question. Most central banks now either explicitly or implicitly follow a policy of inflation targeting. Under this policy, price stability, appropriately defined, is the principal goal of monetary policy. Is this conc ...
The Costs of Losing Monetary Independence: The Case of Mexico1
... of optimality in the conduct of monetary policy? Second, is the welfare loss from not being able to use monetary policy to react optimally to shocks quantitatively important? In this paper we address these questions in the context of a simple two-country model where both countries are technologicall ...
... of optimality in the conduct of monetary policy? Second, is the welfare loss from not being able to use monetary policy to react optimally to shocks quantitatively important? In this paper we address these questions in the context of a simple two-country model where both countries are technologicall ...
NBER WORKING PAPER SERIES MONETARY POLICY IN THE OPEN ECONOMY REVISITED:
... The modern case for flexible exchange rates goes back to Friedman (1953). Real countryspecific productivity or demand shocks require adjustment of relative price levels between countries. If nominal prices adjusted quickly, Friedman argues, the choice of exchange-rate regime would be irrelevant bec ...
... The modern case for flexible exchange rates goes back to Friedman (1953). Real countryspecific productivity or demand shocks require adjustment of relative price levels between countries. If nominal prices adjusted quickly, Friedman argues, the choice of exchange-rate regime would be irrelevant bec ...
Determinants of Monetary Policy in France,
... controls are among the principal means employed by government ministries and the Banque de France to manage the French economy. Direct controls by the Banque de France and the relevant government ministries often are used to regulate both the quantity of credit flowing through various financial inst ...
... controls are among the principal means employed by government ministries and the Banque de France to manage the French economy. Direct controls by the Banque de France and the relevant government ministries often are used to regulate both the quantity of credit flowing through various financial inst ...
THE RELATIONSHIP BETWEEN PRICE LEVEL, MONEY SUPPLY
... Taking this into account the authors consider three main monetary regimes in light of their ability to control inflation. Money growth targeting can keep nominal income growing that leads to the long-term price stability if the velocity of money is predictable (MV=PQ). But the main condition for the ...
... Taking this into account the authors consider three main monetary regimes in light of their ability to control inflation. Money growth targeting can keep nominal income growing that leads to the long-term price stability if the velocity of money is predictable (MV=PQ). But the main condition for the ...
Twin Deficit Hypothesis: The Case of Ukraine
... government collects seigniorage. Seigniorage can be decomposed into a “pure seigniorage” component and an “inflation tax” component. (Quanes and Thakur, 1997, p.64). The pure seigniorage component is the change in real cash balances. It comes about because of real growth of the economy or a favorabl ...
... government collects seigniorage. Seigniorage can be decomposed into a “pure seigniorage” component and an “inflation tax” component. (Quanes and Thakur, 1997, p.64). The pure seigniorage component is the change in real cash balances. It comes about because of real growth of the economy or a favorabl ...
WARWICK ECONOMIC RESEARCH PAPERS Trade Costs and the Open Macroeconomy No 778
... in consumption. This containment e¤ ect of trade costs tends to isolate two countries from each other and makes them behave more like closed economies. Shocks hitting one country therefore have a reduced bearing on the other, weakening current account movements and the international correlations of ...
... in consumption. This containment e¤ ect of trade costs tends to isolate two countries from each other and makes them behave more like closed economies. Shocks hitting one country therefore have a reduced bearing on the other, weakening current account movements and the international correlations of ...
Chinese Exporters, Exchange Rate Exposure, and the
... and exchange rate risk management. A growing body of research examines the choice of invoicing currency by exporting …rms. Bacchetta and van Wincoop (2005) …nd that exporting …rms will price in their own currency when they face less competition in the foreign market. Engel (2006) develops a theoreti ...
... and exchange rate risk management. A growing body of research examines the choice of invoicing currency by exporting …rms. Bacchetta and van Wincoop (2005) …nd that exporting …rms will price in their own currency when they face less competition in the foreign market. Engel (2006) develops a theoreti ...
Exchange Rates as Exchange Rate Common Factors"
... has become standard procedure for exchange-rate model validation, work in this area has discovered (at least) three things. First, the particular time-period of the sample matters. Fundamentalsbased models exhibited good ability to forecast exchange rates during the 1980s and early 1990s (Mark, 1995 ...
... has become standard procedure for exchange-rate model validation, work in this area has discovered (at least) three things. First, the particular time-period of the sample matters. Fundamentalsbased models exhibited good ability to forecast exchange rates during the 1980s and early 1990s (Mark, 1995 ...
Regional Monetary Cooperation and Growth
... consumption. Investment creates both income for workers as well as profits for business. As wage growth feeds into consumption, company profits can be re-invested to sustain investment in the knowledge that the additional capacity will be matched by expanding markets, thereby enabling a virtuous cir ...
... consumption. Investment creates both income for workers as well as profits for business. As wage growth feeds into consumption, company profits can be re-invested to sustain investment in the knowledge that the additional capacity will be matched by expanding markets, thereby enabling a virtuous cir ...
This PDF is a selection from a published volume from... Economic Research Volume Title: Europe and the Euro
... a referendum) conditional on the five economic tests being passed. The five economic tests are:9 1. Are business cycles and economic structures compatible so that we and others could live with euro interest rates on a permanent basis? 2. If problems emerge[,] is there sufficient flexibility to deal wi ...
... a referendum) conditional on the five economic tests being passed. The five economic tests are:9 1. Are business cycles and economic structures compatible so that we and others could live with euro interest rates on a permanent basis? 2. If problems emerge[,] is there sufficient flexibility to deal wi ...
Portfolio-Flow Volatility and Demand for International Resemes
... large number of potential determinants of reserves in their empirical study. Their empirical results suggest that trade openness is the most important factor in explaining cross-country variation in reserve accumulation. The other statistically significant variables are financial development and the ...
... large number of potential determinants of reserves in their empirical study. Their empirical results suggest that trade openness is the most important factor in explaining cross-country variation in reserve accumulation. The other statistically significant variables are financial development and the ...
(1994) "The P-star model in five small economies,"
... rate regimes and macroeconomic adjustment of prices and output is quite limited. Recently, Bayoumi and Eichengn’een (1992) use impulseresponse functions to analyze the differences between the Bretton Woods and post-Bretton Woods period in this respect for the G7 countries (United States, Canada, Uni ...
... rate regimes and macroeconomic adjustment of prices and output is quite limited. Recently, Bayoumi and Eichengn’een (1992) use impulseresponse functions to analyze the differences between the Bretton Woods and post-Bretton Woods period in this respect for the G7 countries (United States, Canada, Uni ...
Foreign Currency Transactions
... separation of forward exchange contracts into components: – Financial instrument component (obligation to pay yen) – Nonfinancial asset component (right to receive ...
... separation of forward exchange contracts into components: – Financial instrument component (obligation to pay yen) – Nonfinancial asset component (right to receive ...