Currency blocs in the 21st century
... The current world economy is shaped by two major currency blocs, the US dollar bloc and the euro bloc, which coexist with numerous floating currencies. The present study analyses this state of the world along three sets of questions: (1) What are the characteristics of the present currency blocs? (2 ...
... The current world economy is shaped by two major currency blocs, the US dollar bloc and the euro bloc, which coexist with numerous floating currencies. The present study analyses this state of the world along three sets of questions: (1) What are the characteristics of the present currency blocs? (2 ...
fixed exchange rates
... The fixed-exchange-rate regime that applied to most advanced countries from World War II until the early 1970s was called the Bretton Woods Under this system, the participating countries established narrow bands within which they pegged the nominal exchange rate, ε, between their currency and the U. ...
... The fixed-exchange-rate regime that applied to most advanced countries from World War II until the early 1970s was called the Bretton Woods Under this system, the participating countries established narrow bands within which they pegged the nominal exchange rate, ε, between their currency and the U. ...
Monetary policy frameworks: gradual implementation of steadily
... to speculative attacks, either because the pegged exchange rates were not validated by domestic economic policies or, more particularly, when it became evident that the monetary policy of the central bank issuing the anchor currency was unlikely to be appropriate for the pegging countries. The most ...
... to speculative attacks, either because the pegged exchange rates were not validated by domestic economic policies or, more particularly, when it became evident that the monetary policy of the central bank issuing the anchor currency was unlikely to be appropriate for the pegging countries. The most ...
the relationship between selected macroeconomic factors and gold
... Economic instability cannot be expected to accurately cause investors to take the initiative to make gold as an asset to the risks incurred from getting too high. Gold is not only regarded as a commodity but also classified as a financial asset. In addition to hedge, gold is a store of wealth, which ...
... Economic instability cannot be expected to accurately cause investors to take the initiative to make gold as an asset to the risks incurred from getting too high. Gold is not only regarded as a commodity but also classified as a financial asset. In addition to hedge, gold is a store of wealth, which ...
Money and Value in Ricardo: A Pasinetti
... production. But for Ricardo (1817, p. 43): ‘When commodities varied in relative value, it would be desirable to have the means of ascertaining which of them fell and which rose in real value, and this could be effected only by comparing them one after another with some invariable standard measure of ...
... production. But for Ricardo (1817, p. 43): ‘When commodities varied in relative value, it would be desirable to have the means of ascertaining which of them fell and which rose in real value, and this could be effected only by comparing them one after another with some invariable standard measure of ...
International Liquidity and Exchange Rate Dynamics Xavier Gabaix Matteo Maggiori January 19, 2014
... We provide a theory of exchange rate determination based on capital flows in imperfect financial markets. In our model, exchange rates are volatile and largely disconnected from traditional macroeconomic fundamentals over the medium term; they are instead governed by financial forces. Global shifts ...
... We provide a theory of exchange rate determination based on capital flows in imperfect financial markets. In our model, exchange rates are volatile and largely disconnected from traditional macroeconomic fundamentals over the medium term; they are instead governed by financial forces. Global shifts ...
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... output from participation in an IMF-supported stabilization program, and β int measures the effect of the interaction term. After postulating a rule for the k-element vector of policies that would have taken place in the absence of an IMF-supported program ( xit ), the model is estimated (with fixed ...
... output from participation in an IMF-supported stabilization program, and β int measures the effect of the interaction term. After postulating a rule for the k-element vector of policies that would have taken place in the absence of an IMF-supported program ( xit ), the model is estimated (with fixed ...
Monetary Policy Transmission Mechanisms in Papua New Guinea
... (rise) in domestic inflation, ceteris paribus. On the other hand, foreign currency prices of PNG’s exports would rise (fall) leading to a decline (rise) in external demand, which in turn should induce a negative (positive) change in the balance of payments position. Domestically, the monetary policy ...
... (rise) in domestic inflation, ceteris paribus. On the other hand, foreign currency prices of PNG’s exports would rise (fall) leading to a decline (rise) in external demand, which in turn should induce a negative (positive) change in the balance of payments position. Domestically, the monetary policy ...
Bayat(207).pdf
... selected case(s) and the method of analysing so in this section we aim to show that these cases can be appropriately studied in a comparative method. Argentina and Turkey for a long time have been involved in the IMF's liberalization process. As Önis (2006) argues there are significant similarities ...
... selected case(s) and the method of analysing so in this section we aim to show that these cases can be appropriately studied in a comparative method. Argentina and Turkey for a long time have been involved in the IMF's liberalization process. As Önis (2006) argues there are significant similarities ...
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... into account the external e¤ects of their behavior and thus overuse a given resource. While this literature usually asks what institutional solutions might help to solve this problem, I ask whether a particular exchange rate regime could help to induce governments to be less tolerant with corruption ...
... into account the external e¤ects of their behavior and thus overuse a given resource. While this literature usually asks what institutional solutions might help to solve this problem, I ask whether a particular exchange rate regime could help to induce governments to be less tolerant with corruption ...
Current account reversals and currency crises: empirical
... Third, what are the consequences of these events for output and consumption? Fourth, is there a link between current account reversals and currency crises? Although our study does not focus directly on reversals in capital flows, it uses data on size and composition of external liabilities in its ch ...
... Third, what are the consequences of these events for output and consumption? Fourth, is there a link between current account reversals and currency crises? Although our study does not focus directly on reversals in capital flows, it uses data on size and composition of external liabilities in its ch ...
Indian Currency, Exchange Rate Regime and Policy (PDF
... coins. The Indian Republic has been following the Saka era as its official calendar. The Kushan gold coins had portraits of Siva, Buddha and Kartikeya. The coins of Satavahana, who ruled India during 270 BC to 30 BC, were predominantly of copper, lead and silver. These coins had motifs of elephants, ...
... coins. The Indian Republic has been following the Saka era as its official calendar. The Kushan gold coins had portraits of Siva, Buddha and Kartikeya. The coins of Satavahana, who ruled India during 270 BC to 30 BC, were predominantly of copper, lead and silver. These coins had motifs of elephants, ...
Regional Economic Issues
... Risks to the outlook are two sided, but tilted to the downside, notably over the medium term. There is potential for some upside from stronger external demand, notably higher growth in the euro area and the United States, and a firmer recovery in commodity prices, which would help the CIS, and lower ...
... Risks to the outlook are two sided, but tilted to the downside, notably over the medium term. There is potential for some upside from stronger external demand, notably higher growth in the euro area and the United States, and a firmer recovery in commodity prices, which would help the CIS, and lower ...
Export Supply and Import Demand Models for
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
NBER WORKING PAPER SERIES SMALL COUNTRIES IN MONETARY UNIONS: A TWO-TIER MODEL
... Earlier versions were presented to the RIP Seminar, Boston College and the International Economics Workshop, Harvard University. Comments from participants, especially Richard Cooper, are gratefully acknowledged. The research reported here is part of the NBER's research program in International Stud ...
... Earlier versions were presented to the RIP Seminar, Boston College and the International Economics Workshop, Harvard University. Comments from participants, especially Richard Cooper, are gratefully acknowledged. The research reported here is part of the NBER's research program in International Stud ...
! Export Supply and Import Demand Models for the Turkish Economy
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
The Long or Short of it: Determinants of Foreign Currency
... foreign currency exposure into its constituent elements: this is important, since much of the theoretical literature has focused on particular dimensions of foreign-currency exposure, whereas the valuation impact of currency movements depends on the aggregate net foreign currency position. Second, w ...
... foreign currency exposure into its constituent elements: this is important, since much of the theoretical literature has focused on particular dimensions of foreign-currency exposure, whereas the valuation impact of currency movements depends on the aggregate net foreign currency position. Second, w ...
Hayek and the Revival of Free Banking
... Simons, 1936). This concern was voiced, not over elastic note issues, or lending as a last resort to failing banks, but over the potential arbitrariness of the `authorities' who might be tempted to pursue inflationary policies in order to stem the spread of unemployment. From this began to flow the ...
... Simons, 1936). This concern was voiced, not over elastic note issues, or lending as a last resort to failing banks, but over the potential arbitrariness of the `authorities' who might be tempted to pursue inflationary policies in order to stem the spread of unemployment. From this began to flow the ...
A theory of the currency denomination of international trade
... and pass-through for a set of seven industrialized countries.2 The main objective of this paper is to derive and understand the optimal invoicing decisions in the context of bnew open economy macroeconomicsQ models. While most of the literature has assumed exogenously that firms set prices either in ...
... and pass-through for a set of seven industrialized countries.2 The main objective of this paper is to derive and understand the optimal invoicing decisions in the context of bnew open economy macroeconomicsQ models. While most of the literature has assumed exogenously that firms set prices either in ...
Adjustment Under Fixed Exchange Rates
... The European Monetary Union (EMU) was consolidated under the Maastricht Treaty. In January 1999, parities between the currencies of 11 countries and the Euro were “irrevocably” fixed. The new European Central Bank (ECB), based in Frankfurt, became responsible for monetary policy for the Euro area. ...
... The European Monetary Union (EMU) was consolidated under the Maastricht Treaty. In January 1999, parities between the currencies of 11 countries and the Euro were “irrevocably” fixed. The new European Central Bank (ECB), based in Frankfurt, became responsible for monetary policy for the Euro area. ...
Unconventional monetary policy of the ECB during the
... countries faced an interest rate which was frequently not in line with their business cycle position gave impetus to the initiative for a monetary union. Since 1999, the Governing Council of the ECB is in charge of monetary policymaking in the euro area. The Maastricht Treaty made price stability th ...
... countries faced an interest rate which was frequently not in line with their business cycle position gave impetus to the initiative for a monetary union. Since 1999, the Governing Council of the ECB is in charge of monetary policymaking in the euro area. The Maastricht Treaty made price stability th ...
MALAYSIA’S RESPONSE TO THE FINANCIAL CRISIS: Shankaran Nambiar*
... In 1985, when the economy was beset with a downturn, the central bank resorted to a more flexible exchange rate regime. This was probably in view of the need to stimulate the sluggish economy. The exchange rate was, at that time, perceived as being overvalued. The more liberal approach to exchange r ...
... In 1985, when the economy was beset with a downturn, the central bank resorted to a more flexible exchange rate regime. This was probably in view of the need to stimulate the sluggish economy. The exchange rate was, at that time, perceived as being overvalued. The more liberal approach to exchange r ...
NBER WORKING PAPER SERIES SHORT-RUN INDEPENDENCE OF MONETARY
... This paper develops an alternative theoretical framework in which monetary disturbances may play an important role in affecting interest rates and exchange rates. Unlike most previous research on the real effects of monetary shocks that has focused on a onesector macroeconomic model (such as [6] and ...
... This paper develops an alternative theoretical framework in which monetary disturbances may play an important role in affecting interest rates and exchange rates. Unlike most previous research on the real effects of monetary shocks that has focused on a onesector macroeconomic model (such as [6] and ...
Adaptational Pressure, Domestic Politics and the Evolution of the
... (Article 104). The stop-and-go patterns of the monetary cooperation throughout the 1970s and 1980s did not prevent Europe from setting up the European Monetary System (EMS). The success of EMS in the late 1980s truly paved the way for the full-fledged monetary union. However, the transition from EMS ...
... (Article 104). The stop-and-go patterns of the monetary cooperation throughout the 1970s and 1980s did not prevent Europe from setting up the European Monetary System (EMS). The success of EMS in the late 1980s truly paved the way for the full-fledged monetary union. However, the transition from EMS ...
Review of Exchange Arrangements, Restrictions, and Controls
... direct controls in managing their economies. However, some countries that have accepted the obligations of Article VIII appear to have imposed new exchange restrictions, multiple currency practices (MCPs) (jointly referred to in some parts of this paper as “exchange measures”) without the approval o ...
... direct controls in managing their economies. However, some countries that have accepted the obligations of Article VIII appear to have imposed new exchange restrictions, multiple currency practices (MCPs) (jointly referred to in some parts of this paper as “exchange measures”) without the approval o ...