NBER WORKING PAPER SEPJES EXPLAINING THE DURATION OF EXCHANGE-RATE PEGS Michael W. Klein
... value of it) since this results in less accumulated misalignment at any moment Given x, the 9An alternative approach involves modeling the optimum length of apeg over a time horizon that exceeds the length of the peg; that is, to model a repeated series of episodes. We found that this approach, unli ...
... value of it) since this results in less accumulated misalignment at any moment Given x, the 9An alternative approach involves modeling the optimum length of apeg over a time horizon that exceeds the length of the peg; that is, to model a repeated series of episodes. We found that this approach, unli ...
Primary Money Creation Channels under Instability
... appropriate amount of primary money. It represents a logical circular flow between monetary and real economies. We will not get into details of supply and demand for primary money because we are interested primarily for reasons and flows of primary money creation. Discounting already discounted bil ...
... appropriate amount of primary money. It represents a logical circular flow between monetary and real economies. We will not get into details of supply and demand for primary money because we are interested primarily for reasons and flows of primary money creation. Discounting already discounted bil ...
NBER WORKING PAPER SERIES COORDINATION OF MONETARY AND Warwick J. Mckibbin
... operated (see Swoboda [1978]). In fact, it should be remembered that under the Bretton Woods arrangement, the U.S. had the side condition to peg the dollar price of gold at $35 per ounce, though it is difficult to find an important ...
... operated (see Swoboda [1978]). In fact, it should be remembered that under the Bretton Woods arrangement, the U.S. had the side condition to peg the dollar price of gold at $35 per ounce, though it is difficult to find an important ...
Currency Strategy 2015-09
... was seen as raising downside risks to Chinese growth with widespread knock-on effects for the global economy. But risk appetite probably collapsed due to other factors as well such as crowded positioning, new regulations curbing liquidity and “computerized” trading. Although we expect weak risk appe ...
... was seen as raising downside risks to Chinese growth with widespread knock-on effects for the global economy. But risk appetite probably collapsed due to other factors as well such as crowded positioning, new regulations curbing liquidity and “computerized” trading. Although we expect weak risk appe ...
The Relationship Between Foreign Exchange
... calls for exchange of one country’s currency for another. International trade is directly linked trading of goods and services, foreign direct investment, long term investment portfolio flows, hedge funds, mutual funds and the safe haven status of currencies. In economies such as US and the Europea ...
... calls for exchange of one country’s currency for another. International trade is directly linked trading of goods and services, foreign direct investment, long term investment portfolio flows, hedge funds, mutual funds and the safe haven status of currencies. In economies such as US and the Europea ...
the effects of exchange rate on the trade balance in ghana
... that since 1986 the exchange rate policy of the Bank of Ghana has been the managed floating exchange rate. The Bank of Ghana’s intervention in the foreign exchange market has been mainly to smooth fluctuations in the foreign exchange market (Bank of Ghana). The exchange rate system, as discussed abo ...
... that since 1986 the exchange rate policy of the Bank of Ghana has been the managed floating exchange rate. The Bank of Ghana’s intervention in the foreign exchange market has been mainly to smooth fluctuations in the foreign exchange market (Bank of Ghana). The exchange rate system, as discussed abo ...
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... and exporting and thus tend to reduce the volume both of imports and exports. On the other hand, the increased internal production of a depreciating country, as a result of its higher internal prices, could easily increase international trade, since the prosperity of the parties to a trade is as sig ...
... and exporting and thus tend to reduce the volume both of imports and exports. On the other hand, the increased internal production of a depreciating country, as a result of its higher internal prices, could easily increase international trade, since the prosperity of the parties to a trade is as sig ...
Currency Outlook-Why the JPY won`t weaken
... flow turned very positive (up to 8% of GDP) as carry trades were unwound and safe haven flows moved into the JPY. Now, the short term flow has become sharply negative again. This implies that the main driving force behind the JPY’s fall has been flows that can slow or even be reversed very rapidly. ...
... flow turned very positive (up to 8% of GDP) as carry trades were unwound and safe haven flows moved into the JPY. Now, the short term flow has become sharply negative again. This implies that the main driving force behind the JPY’s fall has been flows that can slow or even be reversed very rapidly. ...
A Currency Union or an Exchange Rate Union: Evidence from
... China, Japan, Korea and Taiwan are important economies in East Asia. These Northeast Asian economies have become more integrated economically in recent years. They are major trading partners with each other. Taiwan’s economic and trade relationships with China, Japan, and Korea are closer than those ...
... China, Japan, Korea and Taiwan are important economies in East Asia. These Northeast Asian economies have become more integrated economically in recent years. They are major trading partners with each other. Taiwan’s economic and trade relationships with China, Japan, and Korea are closer than those ...
-1- Draft: October 15, 2008 DOLLAR DOMINANCE, EURO
... been active in injecting liquidity into the system – but under the Maastricht Treaty that is all it can do. National policy makers, in the meantime, have clung to a piecemeal, patchwork approach – an “every-country-for-itself” response that certainly has done little to bolster confidence in Europe’s ...
... been active in injecting liquidity into the system – but under the Maastricht Treaty that is all it can do. National policy makers, in the meantime, have clung to a piecemeal, patchwork approach – an “every-country-for-itself” response that certainly has done little to bolster confidence in Europe’s ...
Financial versus Monetary Mercantilism-Long
... development stages warranted financial mercantilism. Indeed, some observers made the case that, with proper implementation, such policy worked well for these countries.8 In contrast, for monetary mercantilism to be potent, prices and wages should adjust in an extremely sluggish manner, and trade riv ...
... development stages warranted financial mercantilism. Indeed, some observers made the case that, with proper implementation, such policy worked well for these countries.8 In contrast, for monetary mercantilism to be potent, prices and wages should adjust in an extremely sluggish manner, and trade riv ...
Chapter 15 Exchange-Rate Systems and currency crises
... Countries can adopt only two of the following three policies: free capital flows, a fixed exchange rate, and an independent monetary policy. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distribu ...
... Countries can adopt only two of the following three policies: free capital flows, a fixed exchange rate, and an independent monetary policy. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distribu ...
International Economics: Feenstra/Taylor 2/e
... Financial Globalization Since the 1970s, many restrictions on international financial transactions have been lifted, as shown by the time series chart in panel ...
... Financial Globalization Since the 1970s, many restrictions on international financial transactions have been lifted, as shown by the time series chart in panel ...
Exchange rate adjustment
... • As the price level falls in the country with a trade deficit, exports of its goods and services will be encouraged; as the price level increases in the country with a trade surplus, exports of its goods and services will be discouraged. • These changes in trade will decrease both the trade deficit ...
... • As the price level falls in the country with a trade deficit, exports of its goods and services will be encouraged; as the price level increases in the country with a trade surplus, exports of its goods and services will be discouraged. • These changes in trade will decrease both the trade deficit ...
Vehicle Currency Use in International Trade
... belongs neither to the exporter or importer home markets. The use of a specific currency in invoicing international trade transactions can now be broader than the importance of that currency’s home country as a direct counterparty in international trade transactions. Second, we contrast the role of ...
... belongs neither to the exporter or importer home markets. The use of a specific currency in invoicing international trade transactions can now be broader than the importance of that currency’s home country as a direct counterparty in international trade transactions. Second, we contrast the role of ...
Exchange Rate Volatility and Democratization in Emerging Market
... instance, the important book by Haggard (2000)Fargues that because of the uncertainty they create about the government’s ability to generate mass support and manage (cooperate with) its opposition, less democratic and opaque political institutions produce more market uncertainty and hence their resp ...
... instance, the important book by Haggard (2000)Fargues that because of the uncertainty they create about the government’s ability to generate mass support and manage (cooperate with) its opposition, less democratic and opaque political institutions produce more market uncertainty and hence their resp ...
In this paper we wil first the large increase of foreign exchange
... for nearly three-quarters of total assets under management by these funds. At endOctober 2007 oil-exporting countries managed an estimated US$2.2 trillion of SWFs. Of these, about US$1.5 trillion are related to SWFs of countries of the Gulf Cooperation Council, and “[w]ith oil at or above $90, the ...
... for nearly three-quarters of total assets under management by these funds. At endOctober 2007 oil-exporting countries managed an estimated US$2.2 trillion of SWFs. Of these, about US$1.5 trillion are related to SWFs of countries of the Gulf Cooperation Council, and “[w]ith oil at or above $90, the ...
A Primer on the Euro Breakup
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
Draft: October 14, 2008 DOLLAR DOMINANCE, EURO ASPIRATIONS
... been active in injecting liquidity into the system – but under the Maastricht Treaty that is all it can do. National policy makers, in the meantime, have clung to a piecemeal, patchwork approach – an “every-country-for-itself” response that certainly has done little to bolster confidence in Europe’s ...
... been active in injecting liquidity into the system – but under the Maastricht Treaty that is all it can do. National policy makers, in the meantime, have clung to a piecemeal, patchwork approach – an “every-country-for-itself” response that certainly has done little to bolster confidence in Europe’s ...
foreign exchange rate regimes and foreign exchange markets in
... which in the subsequent period fulfilled the criteria set by the European Bank for Reconstruction and Development (EBRD) for measuring development in transition. According to these criteria, the countries of Central and Eastern Europe are considered as transitive economies. The Asian economies, along ...
... which in the subsequent period fulfilled the criteria set by the European Bank for Reconstruction and Development (EBRD) for measuring development in transition. According to these criteria, the countries of Central and Eastern Europe are considered as transitive economies. The Asian economies, along ...
Unconventional Central Bank Measures for Emerging
... different from the conventional measures taken by central banks in more normal times.3 The approach taken in this paper is to organize the conventional and unconventional measures by policy objective and implementation means (Table 1). Conventional is taken to mean what central banks have usually be ...
... different from the conventional measures taken by central banks in more normal times.3 The approach taken in this paper is to organize the conventional and unconventional measures by policy objective and implementation means (Table 1). Conventional is taken to mean what central banks have usually be ...
Clamoring for Greenbacks: Explaining the
... A number of studies such as Calvo and Reinhart (2002), Eichengreen et al. (2002), Jeanne (2002), Ize and Levy-Yeyati (2003), and Chang and Velasco (2006) among other authors, have argued that issuing debt in foreign currencies could make a country face a higher extent of vulnerability to external sh ...
... A number of studies such as Calvo and Reinhart (2002), Eichengreen et al. (2002), Jeanne (2002), Ize and Levy-Yeyati (2003), and Chang and Velasco (2006) among other authors, have argued that issuing debt in foreign currencies could make a country face a higher extent of vulnerability to external sh ...
Temi di discussione
... 2000, Amato and Swansson; 2001, Dotsey and Hornstein; 2003). This paper provides an attempt to …ll this gap by studying the international transmission of monetary shocks with a special focus on the e¤ects of foreign money (“global liquidity”) on the euro area economy. There are several reasons why m ...
... 2000, Amato and Swansson; 2001, Dotsey and Hornstein; 2003). This paper provides an attempt to …ll this gap by studying the international transmission of monetary shocks with a special focus on the e¤ects of foreign money (“global liquidity”) on the euro area economy. There are several reasons why m ...
UIP and the Exchange Rate
... • The euro - one of many currencies – Each currency linked by a rate of exchange to the other n-1 currencies in the world. Exchange rates are in the first instance bilateral ...
... • The euro - one of many currencies – Each currency linked by a rate of exchange to the other n-1 currencies in the world. Exchange rates are in the first instance bilateral ...
Price Levels and the Exchange Rate in the Long Run.
... • The real exchange rate is a more general approach to explain exchange rates. Both monetary factors and real factors influence nominal exchange rates: 1a. increases in monetary levels, leading to temporary inflation and changes in expectations about inflation. 1b. increases in monetary growth rates ...
... • The real exchange rate is a more general approach to explain exchange rates. Both monetary factors and real factors influence nominal exchange rates: 1a. increases in monetary levels, leading to temporary inflation and changes in expectations about inflation. 1b. increases in monetary growth rates ...