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 ...
costs and benefits of running an international currency
... credit. Then we discuss recent work that examines the effect of the euro on financial integration. We relate both of these developments to the internationalization of the euro and draw some conclusions about the benefits. We also discuss the implications of the euro’s rising internationalization on ...
... credit. Then we discuss recent work that examines the effect of the euro on financial integration. We relate both of these developments to the internationalization of the euro and draw some conclusions about the benefits. We also discuss the implications of the euro’s rising internationalization on ...
The impact of inflation and deflation on the case for gold
... The strong performance of gold during the inflationary 1970s and early 1980s confirms its potential value in periods of rapid price rises. Less clear, however, is how gold might fare in a period of prolonged price deflation. This is because periods of general price deflation are rare. In the last 15 ...
... The strong performance of gold during the inflationary 1970s and early 1980s confirms its potential value in periods of rapid price rises. Less clear, however, is how gold might fare in a period of prolonged price deflation. This is because periods of general price deflation are rare. In the last 15 ...
Money - Site BU
... Market liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and serv ...
... Market liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and serv ...
“Development of an explicit rule of monetary policy for the economy
... The US experience is important in this regard. The purpose of the monetary policy of the Federal Reserve System is formulated quite broadly: the increase of production, maximum employment, stable prices, and the formation of moderate longterm interest rates. On the other hand, the most wellknown mon ...
... The US experience is important in this regard. The purpose of the monetary policy of the Federal Reserve System is formulated quite broadly: the increase of production, maximum employment, stable prices, and the formation of moderate longterm interest rates. On the other hand, the most wellknown mon ...
Trade Network Centrality and Currency Risk Premia
... of 0.43 between 1995 and 2013. This Sharpe ratio is similar to those found in U.S. equity markets and is surprising given the strategy’s simple, unconditional nature. Although the returns to carry trade strategies are well studied, less is known about their economic origins. In this paper, I show th ...
... of 0.43 between 1995 and 2013. This Sharpe ratio is similar to those found in U.S. equity markets and is surprising given the strategy’s simple, unconditional nature. Although the returns to carry trade strategies are well studied, less is known about their economic origins. In this paper, I show th ...
Can Monetary Policy Affect Economic Activity under Surplus Liquidity?
... remained pretty silent about the ways central banks can affect economic activity, and, through it, the inflation rate, in such circumstances. That is the purpose of this paper – to analyse the effects of different monetary policy instruments on economic activity in an economy characterized by surplu ...
... remained pretty silent about the ways central banks can affect economic activity, and, through it, the inflation rate, in such circumstances. That is the purpose of this paper – to analyse the effects of different monetary policy instruments on economic activity in an economy characterized by surplu ...
The Foreign Exchange Market
... determined by a decision of the government or the central bank and is achieved by active intervention in the market. China is a country that operates a crawling peg. A crawling peg works like a fixed exchange rate except that the target value changes. The idea behind a crawling peg is to avoid wild ...
... determined by a decision of the government or the central bank and is achieved by active intervention in the market. China is a country that operates a crawling peg. A crawling peg works like a fixed exchange rate except that the target value changes. The idea behind a crawling peg is to avoid wild ...
International Outsourcing, Exchange Rates, and
... production and the receipts from sales, firms often face liquidity constraints and have to finance their working capital externally. As surveyed by Manova (2010), the recent literature on trade and finance has focused on the role of domestic financial market frictions and stressed the importance of ...
... production and the receipts from sales, firms often face liquidity constraints and have to finance their working capital externally. As surveyed by Manova (2010), the recent literature on trade and finance has focused on the role of domestic financial market frictions and stressed the importance of ...
Monetary Policy and Foreign Exchange Management: Reforming
... and economic sanctions. The latter, which severely depressed trade, investment, and international payments transfer, isolated Myanmar for more than 5 decades from the global economy. Guided by the “Export First” policy to preserve foreign exchange by balancing import payments with export proceeds un ...
... and economic sanctions. The latter, which severely depressed trade, investment, and international payments transfer, isolated Myanmar for more than 5 decades from the global economy. Guided by the “Export First” policy to preserve foreign exchange by balancing import payments with export proceeds un ...
China`s Exchange Rate Policy - Peterson Institute for International
... is particularly likely to be the case for small countries that are price takers in international goods and capital markets. Capital controls, in theory, could prevent large inflows (outflows) when domestic interest rates are higher (lower) than foreign rates, but in practice it is difficult to maint ...
... is particularly likely to be the case for small countries that are price takers in international goods and capital markets. Capital controls, in theory, could prevent large inflows (outflows) when domestic interest rates are higher (lower) than foreign rates, but in practice it is difficult to maint ...
Financial globalization and exchange rates
... Financial globalization has been one of the most important trends in the world economy in recent decades. This process has involved the accumulation of large gross international investment positions, with foreign asset and liability positions sharply rising, whether scaled by GDP or by domestic fina ...
... Financial globalization has been one of the most important trends in the world economy in recent decades. This process has involved the accumulation of large gross international investment positions, with foreign asset and liability positions sharply rising, whether scaled by GDP or by domestic fina ...
Poverty Reduction Strategy Paper - Basic Facts
... A Poverty Reduction Strategy Paper (PRSP) is an assessment of poverty and describes the macroeconomic, structural, social programs and policies that countriesintend to pursue over a number of years to promote growth and reduce poverty; it includes external financing needs and guaranteed sources of f ...
... A Poverty Reduction Strategy Paper (PRSP) is an assessment of poverty and describes the macroeconomic, structural, social programs and policies that countriesintend to pursue over a number of years to promote growth and reduce poverty; it includes external financing needs and guaranteed sources of f ...
Doc - Europa.eu
... The extent of international flows of capital and of the information needed to make investment decisions can provide further evidence of international economic interdependence. Today, gross flows of short-term capital in particular are huge by long-term historical standards. The latest Bank of Intern ...
... The extent of international flows of capital and of the information needed to make investment decisions can provide further evidence of international economic interdependence. Today, gross flows of short-term capital in particular are huge by long-term historical standards. The latest Bank of Intern ...
INSTITUTE FOR MONETARY AND ECONOMIC STUDIES BANK OF
... Specifically comparing interest rates and money supply between the two countries, under BOJ’s historically unprecedented accommodative monetary policy, interest rates in Japan have recently declined more rapidly and to a lower level than in the US during the Great Depression (Figure 2). Hence, it ca ...
... Specifically comparing interest rates and money supply between the two countries, under BOJ’s historically unprecedented accommodative monetary policy, interest rates in Japan have recently declined more rapidly and to a lower level than in the US during the Great Depression (Figure 2). Hence, it ca ...
the role of the euro in sub-saharan Africa and in the CFA franc zone
... market rate plus 100 basis points), the amount exceeding the minimum will only be remunerated by the ECB money market rate. ...
... market rate plus 100 basis points), the amount exceeding the minimum will only be remunerated by the ECB money market rate. ...
Can Currency Competition Work? - Penn Economics
... [email protected] (Fernández-Villaverde) and [email protected] (Sanches). We thank Ed Green, Todd Keister, Guillermo Ordoñez, George Selgin, Neil Wallace, Randy Wright, and participants at several seminars for useful comments. The views expressed in this paper are those of the autho ...
... [email protected] (Fernández-Villaverde) and [email protected] (Sanches). We thank Ed Green, Todd Keister, Guillermo Ordoñez, George Selgin, Neil Wallace, Randy Wright, and participants at several seminars for useful comments. The views expressed in this paper are those of the autho ...
PDF
... former to the latter, unemployment may return to normal levels before significant costs have been incurred even if the authorities lack policy instruments useful for expediting adjustment. Blanchard and Katz (1992) have recently affirmed the importance of this mechanism in one existing monetary unio ...
... former to the latter, unemployment may return to normal levels before significant costs have been incurred even if the authorities lack policy instruments useful for expediting adjustment. Blanchard and Katz (1992) have recently affirmed the importance of this mechanism in one existing monetary unio ...
Foreign Exchange Interventions at Zero Interest Rates
... Taylor-type policy rule with the exchange rate as the instrument.3 For example, when inflation is too low or output is below its potential level, the home currency will be depreciated. Such a policy rule can be accomplished via central bank’s outright purchases of foreign currency in the foreign exc ...
... Taylor-type policy rule with the exchange rate as the instrument.3 For example, when inflation is too low or output is below its potential level, the home currency will be depreciated. Such a policy rule can be accomplished via central bank’s outright purchases of foreign currency in the foreign exc ...
tipec 04/1 - Trent University
... economy. It is commonly assumed that countries with very open economies will favour a stable exchange rate. Kate McNamara sums up this conventional wisdom well: “In general…the more open the economy in trade terms, the more governments prefer to fix their exchange rates because of concerns about the ...
... economy. It is commonly assumed that countries with very open economies will favour a stable exchange rate. Kate McNamara sums up this conventional wisdom well: “In general…the more open the economy in trade terms, the more governments prefer to fix their exchange rates because of concerns about the ...
china`s growing influence in southeast asia - monetary - S
... China’s role in Southeast Asia by focusing on China’s evolving monetary policy and how it affects financial markets in the region. Most previous studies on monetary transmissions have focused on US monetary policy. This is natural, given the size of the US economy and the unique role the US dollar p ...
... China’s role in Southeast Asia by focusing on China’s evolving monetary policy and how it affects financial markets in the region. Most previous studies on monetary transmissions have focused on US monetary policy. This is natural, given the size of the US economy and the unique role the US dollar p ...
Volume 68 No. 4, December 2005 Contents
... The GDP data are expressed in US dollars at market exchange rates. If they are adjusted for differences in purchasing power across countries, New Zealand’s relative oil intensity falls relative to that of Japan and Europe – expenditure on oil there is high, but other domestic production inputs can a ...
... The GDP data are expressed in US dollars at market exchange rates. If they are adjusted for differences in purchasing power across countries, New Zealand’s relative oil intensity falls relative to that of Japan and Europe – expenditure on oil there is high, but other domestic production inputs can a ...
ch21_5e
... happen right away. There is likely to be a direct effect of the devaluation on the price level. ...
... happen right away. There is likely to be a direct effect of the devaluation on the price level. ...
CHAPTER 12—EXCHANGE-RATE DETERMINATION MULTIPLE
... from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. ...
... from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. ...
English
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...