The Feasibility of a Monetary Union in MERCOSUR
... The consequences of reversing the Euro suggest it is best for the union to stay together. Reversing the Euro to the Drachma, for example, would probably cause Greece to continue suffering. A devaluation of their hypothetical independent currency would increase their debt and the costs of exports. Si ...
... The consequences of reversing the Euro suggest it is best for the union to stay together. Reversing the Euro to the Drachma, for example, would probably cause Greece to continue suffering. A devaluation of their hypothetical independent currency would increase their debt and the costs of exports. Si ...
The Current Account, the Spot Exchange Rate and the Demand for
... whether the composition effect does or does not outweigh the growth effect, or whether both are relevant forces in current account determination. This framework accommodates models developed by Kray and Ventura (2000, 2003), Lane and Milesi-Ferreti (2006) and Gourinchas and Rey (2007), among others. ...
... whether the composition effect does or does not outweigh the growth effect, or whether both are relevant forces in current account determination. This framework accommodates models developed by Kray and Ventura (2000, 2003), Lane and Milesi-Ferreti (2006) and Gourinchas and Rey (2007), among others. ...
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 ...
Monetary policy strategy in a global environment
... durably lower consumption of workers. Thus, the economy may take quite some time to come back to medium term potential output. The increase in firms’ investment needed to maintain competitiveness is, in a first period, associated with diminishing production and only at a later stage do employment an ...
... durably lower consumption of workers. Thus, the economy may take quite some time to come back to medium term potential output. The increase in firms’ investment needed to maintain competitiveness is, in a first period, associated with diminishing production and only at a later stage do employment an ...
H D A N
... to forced conversion of dollar deposits into pesos and a seizure of deposits such as happened in 1989 (the BONEX plan) and 1982 (the first Cavallo plan). During both episodes, rapid depreciation of the currency greatly reduced the real value of deposits before they were unfrozen. Another factor that ...
... to forced conversion of dollar deposits into pesos and a seizure of deposits such as happened in 1989 (the BONEX plan) and 1982 (the first Cavallo plan). During both episodes, rapid depreciation of the currency greatly reduced the real value of deposits before they were unfrozen. Another factor that ...
H D A N
... to forced conversion of dollar deposits into pesos and a seizure of deposits such as happened in 1989 (the BONEX plan) and 1982 (the first Cavallo plan). During both episodes, rapid depreciation of the currency greatly reduced the real value of deposits before they were unfrozen. Another factor that ...
... to forced conversion of dollar deposits into pesos and a seizure of deposits such as happened in 1989 (the BONEX plan) and 1982 (the first Cavallo plan). During both episodes, rapid depreciation of the currency greatly reduced the real value of deposits before they were unfrozen. Another factor that ...
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... below fair value. Thus we would expect that import country GDP will be negatively related to filings. It is less clear how export country GDP is related to filings. One possibility is that a weak foreign economy increases the likelihood that foreign firms will cut prices to maintain overall levels of o ...
... below fair value. Thus we would expect that import country GDP will be negatively related to filings. It is less clear how export country GDP is related to filings. One possibility is that a weak foreign economy increases the likelihood that foreign firms will cut prices to maintain overall levels of o ...
Nominal GDP Targeting for Middle-Income Countries
... change. The version of NGDP targeting that has been revived in recent years is often a proposal to target the level of NGDP rather than the rate of change. (Recall that the immediate context, in the case of industrialized countries, is an attempt to achieve monetary expansion even when the nominal i ...
... change. The version of NGDP targeting that has been revived in recent years is often a proposal to target the level of NGDP rather than the rate of change. (Recall that the immediate context, in the case of industrialized countries, is an attempt to achieve monetary expansion even when the nominal i ...
on the meaning and future of the european monetary system
... may have been condemned for many decades to come. I shall deal more fully with the driving forces of the European movement in section 8. Here we need to note only that one of its purposes had been to achieve a more independent role for Western Europe in the collaboration with the United States. But ...
... may have been condemned for many decades to come. I shall deal more fully with the driving forces of the European movement in section 8. Here we need to note only that one of its purposes had been to achieve a more independent role for Western Europe in the collaboration with the United States. But ...
Are Proposed African Monetary Unions Optimal Currency Areas
... European Monetary Union(EMU) crisis that has sent a strong signal to other common currency regions on the goal of real and monetary policy convergence. A paramount lesson of the EMU crisis is that serious disequilibria results from regional arrangements not designed to be robust to a variety of shoc ...
... European Monetary Union(EMU) crisis that has sent a strong signal to other common currency regions on the goal of real and monetary policy convergence. A paramount lesson of the EMU crisis is that serious disequilibria results from regional arrangements not designed to be robust to a variety of shoc ...
Chapter 14 Money in the Open Economy
... 6) A principal reason that purchasing power parity does not hold exactly in practice is A) that foreign and domestic assets are not perfect substitutes. B) the existence of non-traded goods. C) that consumers in different countries have different preferences. D) that costs of production are not the ...
... 6) A principal reason that purchasing power parity does not hold exactly in practice is A) that foreign and domestic assets are not perfect substitutes. B) the existence of non-traded goods. C) that consumers in different countries have different preferences. D) that costs of production are not the ...
Monetary Conditions in the Kingdom of Serbia (1884-1914)
... It would be right to say that the National Bank was successful in establishing relatively stable monetary conditions given the circumstances in which it operated. Such an assessment is based on the fact that the National Bank’s relatively low and stable interest rates throughout the period under rev ...
... It would be right to say that the National Bank was successful in establishing relatively stable monetary conditions given the circumstances in which it operated. Such an assessment is based on the fact that the National Bank’s relatively low and stable interest rates throughout the period under rev ...
INTERPRETING THE MACROECONOMIC TIME SERIES FACTS
... There I showed that a particular RBC-style model could mimic some of the reduced form impulse response behavior observed in the data. The model differs from other RBCstyle models in the literature in that it has the monetary authority using the interest rate as its instrument, raising it in response ...
... There I showed that a particular RBC-style model could mimic some of the reduced form impulse response behavior observed in the data. The model differs from other RBCstyle models in the literature in that it has the monetary authority using the interest rate as its instrument, raising it in response ...
1This paper was written for the Festschrift volume Money, Factor
... account for both the monetary dynamics of balance-of-payments crises and the business cycle facts associated with currency pegs. The quantitative emphasis of our analysis is justified partly by necessity, since models with the features we described tend to be analytically untractable, forcing resear ...
... account for both the monetary dynamics of balance-of-payments crises and the business cycle facts associated with currency pegs. The quantitative emphasis of our analysis is justified partly by necessity, since models with the features we described tend to be analytically untractable, forcing resear ...
GOLD STANDARDS: TRUE AND FALSE Joseph T. Salerno I. Introduction
... with a legal monopoly over an area of the economy will not hesitate to employ that monopoly in the service of its own interests. In the case of a government-monopolized paper fiat money, the creation of additional quantities of money is, for all intents and purposes, costless. At the same time, and ...
... with a legal monopoly over an area of the economy will not hesitate to employ that monopoly in the service of its own interests. In the case of a government-monopolized paper fiat money, the creation of additional quantities of money is, for all intents and purposes, costless. At the same time, and ...
How the Foreign Exchange Market Works.p65
... is being traded for the Jamaica dollar at a particular rate of exchange. The foreign exchange market in Jamaica is fully liberalised with exchange rates being determined by the forces of supply and demand. The market is quite extensive and is highly accessible to individuals and companies. There are ...
... is being traded for the Jamaica dollar at a particular rate of exchange. The foreign exchange market in Jamaica is fully liberalised with exchange rates being determined by the forces of supply and demand. The market is quite extensive and is highly accessible to individuals and companies. There are ...
A Common Currency for Belarus and Russia?
... The authorities of Russia favor a centralized approach, where the functions of the single emission centre would be performed exclusively by the Central Bank of Russia (CBR). Under this scenario, the National Bank of Belarus (NBB) would be able to operate with currencies and securities only with the ...
... The authorities of Russia favor a centralized approach, where the functions of the single emission centre would be performed exclusively by the Central Bank of Russia (CBR). Under this scenario, the National Bank of Belarus (NBB) would be able to operate with currencies and securities only with the ...
Much Appreciated: The Rise of the Canadian Dollar, 2002-2008
... when they move do so very slowly. By contrast, nominal and real exchange rates are highly volatile, and move quickly. There is nothing very surprising in this. If PPP was true, then no-one would discuss the exchange rate, since it would really only be a way of converting between currencies, but it ...
... when they move do so very slowly. By contrast, nominal and real exchange rates are highly volatile, and move quickly. There is nothing very surprising in this. If PPP was true, then no-one would discuss the exchange rate, since it would really only be a way of converting between currencies, but it ...
Nominal GDP Targeting for Middle-Income Countries
... While focusing on industrialized countries, the recent revival of NGDP targeting has at the same time focused on the case of countries that seek to achieve a credible monetary expansion, including usually an increase in expected inflation. The motive has been to address economic weakness in the Unit ...
... While focusing on industrialized countries, the recent revival of NGDP targeting has at the same time focused on the case of countries that seek to achieve a credible monetary expansion, including usually an increase in expected inflation. The motive has been to address economic weakness in the Unit ...
Financial Stability, the Trilemma, and International Reserves
... We argue that reserve accumulation is a key tool for managing domestic financial instability as well as exchange rates in a world of increasing financial globalization. We therefore build on the view—certainly not a new one—that a primary reason for a central bank to hold reserves is to protect the ...
... We argue that reserve accumulation is a key tool for managing domestic financial instability as well as exchange rates in a world of increasing financial globalization. We therefore build on the view—certainly not a new one—that a primary reason for a central bank to hold reserves is to protect the ...
Seychelles
... continues to target a primary surplus of 3.8 percent, which strikes an appropriate balance between debt reduction and allowing for investment in critical human and physical capital. Monetary policy aims to stabilize inflation at low levels, while the exchange rate will remain flexible. Planned micro ...
... continues to target a primary surplus of 3.8 percent, which strikes an appropriate balance between debt reduction and allowing for investment in critical human and physical capital. Monetary policy aims to stabilize inflation at low levels, while the exchange rate will remain flexible. Planned micro ...
Chapter 21. Exchange Rate Regimes
... through price adjustment and changes in the real exchange rate over the medium run. In emergency situations, adjustment happens through devaluation, often forced on policymakers through currency crisis. Thus, the adjustment mechanism of fixed exchange rates does not appear terribly attractive. On th ...
... through price adjustment and changes in the real exchange rate over the medium run. In emergency situations, adjustment happens through devaluation, often forced on policymakers through currency crisis. Thus, the adjustment mechanism of fixed exchange rates does not appear terribly attractive. On th ...
Statutory Issue Paper No. 81 Foreign Currency Transactions and
... operations in their statutory statements as if they were U.S. dollar denominated operations. This practice was established at a time when the Canadian and U.S. dollars were at or close to equivalent. The cost of translating each line item for immaterial Canadian operations is perceived to exceed the ...
... operations in their statutory statements as if they were U.S. dollar denominated operations. This practice was established at a time when the Canadian and U.S. dollars were at or close to equivalent. The cost of translating each line item for immaterial Canadian operations is perceived to exceed the ...
What is the Most Effective Monetary Policy for Aid
... Characteristics of aid-receiving countries Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international mark ...
... Characteristics of aid-receiving countries Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international mark ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... interesting point here is that it may be difficult for economic agents to discover the error in the model they are using because the autocorrelation in forecast errors may be too small to detect. In both cases, the exchange rate may deviate from its value based on “fundamentals,” with all that that ...
... interesting point here is that it may be difficult for economic agents to discover the error in the model they are using because the autocorrelation in forecast errors may be too small to detect. In both cases, the exchange rate may deviate from its value based on “fundamentals,” with all that that ...