Chapter 12national Income, Accounting and the Balance of Payments
... A. If the demand for money increases, a budget surplus will result, and the money supply will have to decrease to maintain equilibrium. B. If the demand for money increases, a budget surplus will result, and the money supply will have to increase to maintain equilibrium. C. If the demand for money i ...
... A. If the demand for money increases, a budget surplus will result, and the money supply will have to decrease to maintain equilibrium. B. If the demand for money increases, a budget surplus will result, and the money supply will have to increase to maintain equilibrium. C. If the demand for money i ...
Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic
... (a) to rise as the J curve would have predicted, but with a short lag (less than one year). (b) to rise as the J curve would have predicted, but with a long lag (more than one year). (c) to fall as the J curve would have predicted, but with a short lag (less than one year). (d) to fall as the J curv ...
... (a) to rise as the J curve would have predicted, but with a short lag (less than one year). (b) to rise as the J curve would have predicted, but with a long lag (more than one year). (c) to fall as the J curve would have predicted, but with a short lag (less than one year). (d) to fall as the J curv ...
Did France Cause the Great Depression?
... shares had been at their predicted levels, the gold reserves of other countries could have doubled and, “assuming that central banks were concerned to retain some proportion between their reserves and domestic liabilities,” Eichengreen concludes, “this redistribution of reserves would have provided ...
... shares had been at their predicted levels, the gold reserves of other countries could have doubled and, “assuming that central banks were concerned to retain some proportion between their reserves and domestic liabilities,” Eichengreen concludes, “this redistribution of reserves would have provided ...
CHAPTER 14—EXCHANGE-RATE ADJUSTMENTS AND THE
... a. Home demand for imports is inelastic and foreign export demand is inelastic b. Home demand for imports is elastic and foreign export demand is inelastic c. Home demand for imports is inelastic and foreign export demand is elastic d. Home demand for imports is elastic and foreign export demand is ...
... a. Home demand for imports is inelastic and foreign export demand is inelastic b. Home demand for imports is elastic and foreign export demand is inelastic c. Home demand for imports is inelastic and foreign export demand is elastic d. Home demand for imports is elastic and foreign export demand is ...
Why did London become the main money market?
... Graphs 5-7 show gross arbitrage profits caused by disintegration of the Law of One Price (equation 11). Gross profit is divided into the two reasons for disintegration: seigniorage and premium. Seigniorage profit for metal i,j measures gross profitability caused by Si,j effect, supposing the exchang ...
... Graphs 5-7 show gross arbitrage profits caused by disintegration of the Law of One Price (equation 11). Gross profit is divided into the two reasons for disintegration: seigniorage and premium. Seigniorage profit for metal i,j measures gross profitability caused by Si,j effect, supposing the exchang ...
NBER WORKING PAPER SERIES EXCHANGE RATES, INFLATION, AND THE STERILIZATION Maurice Obstfeld
... 1980 when the dollar stood at an all-time low in the foreign exchange market) the Deutschemark began to weaken. But U.S. interest rates were temporarily soft during the summer, and the Bundesbank took the opportunity to speed up monetary growth in the face of the emerging recession. As the U.S. slow ...
... 1980 when the dollar stood at an all-time low in the foreign exchange market) the Deutschemark began to weaken. But U.S. interest rates were temporarily soft during the summer, and the Bundesbank took the opportunity to speed up monetary growth in the face of the emerging recession. As the U.S. slow ...
A Flop And A debAcle: InsIde the IMF`s GlobAl RebAlAncInG Acts
... how suspenseful the meeting actually was — and how discordant. ...
... how suspenseful the meeting actually was — and how discordant. ...
The De Facto Exchange Rate Regimes in East Asia over 2003
... and Taylor (1998) and Obstfeld et al. (2004) argued that all national policy-makers can choose at most two elements of the “inconsistent trinity” of three policy goals: (i) a fixed exchange rate; (ii) full freedom of cross-border capital movements; and (iii) an independent monetary policy oriented t ...
... and Taylor (1998) and Obstfeld et al. (2004) argued that all national policy-makers can choose at most two elements of the “inconsistent trinity” of three policy goals: (i) a fixed exchange rate; (ii) full freedom of cross-border capital movements; and (iii) an independent monetary policy oriented t ...
Exchange Rate Reform in South Sudan
... This in turn led to further problems. The divergence between official and parallel market rates created huge incentives for “round tripping” buying dollars at the official rate and selling at the parallel rate – earning profits not related to any economic activity – unproductive activity that econom ...
... This in turn led to further problems. The divergence between official and parallel market rates created huge incentives for “round tripping” buying dollars at the official rate and selling at the parallel rate – earning profits not related to any economic activity – unproductive activity that econom ...
Fixed Exchange Rates and the Trilemma
... • Open economies have different features than closed economies – True general eguilibrium model – Deal with agents that are not homogenous (at least two different countries) – Interaction between financial markets, goods markets and factor markets – Research is driven by empirical anomalies • PPP, U ...
... • Open economies have different features than closed economies – True general eguilibrium model – Deal with agents that are not homogenous (at least two different countries) – Interaction between financial markets, goods markets and factor markets – Research is driven by empirical anomalies • PPP, U ...
CENTRAL BANKERS` FEAR OF FLOATING: THE PERUVIAN
... forced to sustain massive pressure for devaluation. Within Latin America, Brazil wait up to the very last to abandon the crawling peg regime and Colombia and Chile moved to a fully flexible exchange rate system. Despite the financial turmoil, Argentina convertibility system has endured and there are ...
... forced to sustain massive pressure for devaluation. Within Latin America, Brazil wait up to the very last to abandon the crawling peg regime and Colombia and Chile moved to a fully flexible exchange rate system. Despite the financial turmoil, Argentina convertibility system has endured and there are ...
Technical Trading-Rule Profitability, Data Snooping, and Reality
... exchange rates and to testing the efficiency of the foreign exchange (FX) market. One strand of such literature examines the profitability of technical trading rules. The central idea underlying this research is that if the FX market is efficient, one should not be able to use publicly available inf ...
... exchange rates and to testing the efficiency of the foreign exchange (FX) market. One strand of such literature examines the profitability of technical trading rules. The central idea underlying this research is that if the FX market is efficient, one should not be able to use publicly available inf ...
The Cost-benefit Analysis on International Reserve Currency Status
... world, depending on the comprehensive economic strength in Euro zone, the status of Euro in the IRC system went up steadily, and it became the second largest international reserve currency. The UK possessed a developed international financial market with history, and with the traditional advantages ...
... world, depending on the comprehensive economic strength in Euro zone, the status of Euro in the IRC system went up steadily, and it became the second largest international reserve currency. The UK possessed a developed international financial market with history, and with the traditional advantages ...
Determinants of the physical demand for gold
... gold standard in the 1970s, it is still a significant item in central bank reserves, it continues to be a sought-after store of value, and its price remains closely watched as an indicator of changing risk perceptions. While markets in which claims to gold trade have been well-studied (Beckers 1984; ...
... gold standard in the 1970s, it is still a significant item in central bank reserves, it continues to be a sought-after store of value, and its price remains closely watched as an indicator of changing risk perceptions. While markets in which claims to gold trade have been well-studied (Beckers 1984; ...
Exchange rates and export performance: evidence from micro-data
... long-term real depreciation raises the real cost of imported ...
... long-term real depreciation raises the real cost of imported ...
30 years ago, the topic of Macroeconomics or Monetary Economics
... Although most developing countries in the 1990s brought under control the chronic pattern of runaway budget deficits, money creation, and inflation, that they had experienced in the preceding two decades, most are still subject to monetary and fiscal policy that is procyclical rather than countercyc ...
... Although most developing countries in the 1990s brought under control the chronic pattern of runaway budget deficits, money creation, and inflation, that they had experienced in the preceding two decades, most are still subject to monetary and fiscal policy that is procyclical rather than countercyc ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... Because option-pricing theory is at the heart of dynamic hedging, it is helpful at this point to review the basic option-pricing formula for foreign exchange—the Garman/Kohlhagen formula.8 Although banks and other wholesale traders may use more sophisticated pricing methods that account for varying ...
... Because option-pricing theory is at the heart of dynamic hedging, it is helpful at this point to review the basic option-pricing formula for foreign exchange—the Garman/Kohlhagen formula.8 Although banks and other wholesale traders may use more sophisticated pricing methods that account for varying ...
mmi05 razin 225761 en
... unique equilibrium (i.e., with no sunspots). The extension builds on the recent global-games models (as in Morris and Shin (2000). The extended model posits an exogenous stochastic process for the fundamentals (e.g., aggregate export volumes) that foreign creditors estimate based on public and priva ...
... unique equilibrium (i.e., with no sunspots). The extension builds on the recent global-games models (as in Morris and Shin (2000). The extended model posits an exogenous stochastic process for the fundamentals (e.g., aggregate export volumes) that foreign creditors estimate based on public and priva ...
Requirements for Using Interest Rates as an Operating Target for
... period, the BCT has also begun to take into account a broader set of indicators to gauge the competitive position of producers and guide its exchange rate policy.5 At the same time, extensive restrictions on capital inflows and outflows were maintained, allowing the authorities to pursue an independ ...
... period, the BCT has also begun to take into account a broader set of indicators to gauge the competitive position of producers and guide its exchange rate policy.5 At the same time, extensive restrictions on capital inflows and outflows were maintained, allowing the authorities to pursue an independ ...
M-19
... Suppose that Wanda the Winetaster, an American, decides to buy a bottle of 1961 (a very good year) Château Lafite Rothschild to complete her wine cellar. If the price of the wine in France is 1,000 euros and the exchange rate is $1.08 to the euro, the wine will cost Wanda $1,080 ( 1,000 euros $1. ...
... Suppose that Wanda the Winetaster, an American, decides to buy a bottle of 1961 (a very good year) Château Lafite Rothschild to complete her wine cellar. If the price of the wine in France is 1,000 euros and the exchange rate is $1.08 to the euro, the wine will cost Wanda $1,080 ( 1,000 euros $1. ...
Capital-Account Crisis and Credit Contraction
... building and reforms, and capital-account convertibility. Furthermore, some find more fault with the overall design of the international financial system, rather than policies and institutions of individual countries, whose improvements are welcome but do not necessarily guarantee immunity from futu ...
... building and reforms, and capital-account convertibility. Furthermore, some find more fault with the overall design of the international financial system, rather than policies and institutions of individual countries, whose improvements are welcome but do not necessarily guarantee immunity from futu ...
Central banks and currency boards / What a currency board is
... establishing a discount rate like a typical central bank. The fixed exchange rate with the anchor currency encourages arbitrage that tends to keep interest rates and inflation in the currency board country roughly the same as those in the anchor-currency country. However, exceptions occur in countri ...
... establishing a discount rate like a typical central bank. The fixed exchange rate with the anchor currency encourages arbitrage that tends to keep interest rates and inflation in the currency board country roughly the same as those in the anchor-currency country. However, exceptions occur in countri ...
E x c h a n g e ... d e v e l o p e d ...
... Developed countries differ from emerging market economies in several ways. They have a higher per capita income, longestablished institutional structures associated with rules-based democracies, and significant social welfare programmes. Effective governance and regulatory structures have evolved, w ...
... Developed countries differ from emerging market economies in several ways. They have a higher per capita income, longestablished institutional structures associated with rules-based democracies, and significant social welfare programmes. Effective governance and regulatory structures have evolved, w ...
Pegging the future West African single currency in regard to
... Among the new questions, the choice of the exchange rate regime is at the forefront of the discussions though the academic work at still in a burgeoning step and rare. Some authors are concerned with the trade-off between floating and fixed exchange rate. For instance, Batte et al. (2008) study such ...
... Among the new questions, the choice of the exchange rate regime is at the forefront of the discussions though the academic work at still in a burgeoning step and rare. Some authors are concerned with the trade-off between floating and fixed exchange rate. For instance, Batte et al. (2008) study such ...
Prepare accounting entries relating to foreign currency transactions
... In this learning guide on the preparation of foreign currency transactions, our coverage included the accounting standard that governs foreign currency transactions (AASB121) and the guidelines under this standard relating to the import and export of goods, loans and repayments as well as the proces ...
... In this learning guide on the preparation of foreign currency transactions, our coverage included the accounting standard that governs foreign currency transactions (AASB121) and the guidelines under this standard relating to the import and export of goods, loans and repayments as well as the proces ...