Currency crises and monetary policy in an economy with credit
... require large changes in the relative price of tradeables and non-tradeables, as well as speci)c assumptions about the role of tradeable and non-tradeable goods in the economy. This credit-based approach to currency crises is consistent with numerous features observed in recent crises and left unexp ...
... require large changes in the relative price of tradeables and non-tradeables, as well as speci)c assumptions about the role of tradeable and non-tradeable goods in the economy. This credit-based approach to currency crises is consistent with numerous features observed in recent crises and left unexp ...
Monetary Policy and Quantitative Easing in an Open Economy
... How monetary policy transmits inflation expectations to other countries is a question of theoretical interest and practical importance. The failure to control inflation domestically can be the cause of suboptimal domestic fluctuations, if indeterminacy is real, and can de-stabilise trading partners ...
... How monetary policy transmits inflation expectations to other countries is a question of theoretical interest and practical importance. The failure to control inflation domestically can be the cause of suboptimal domestic fluctuations, if indeterminacy is real, and can de-stabilise trading partners ...
Growth and Poverty Reduction Under Globalization: The
... systematic deviations of nominal exchange rates from their purchasing power parity levels and considering the possibility that such deviations could cause systematic distortions in resource allocation leading to growth debacles. 1 Moreover, these same deviations could provoke severe instabilities ...
... systematic deviations of nominal exchange rates from their purchasing power parity levels and considering the possibility that such deviations could cause systematic distortions in resource allocation leading to growth debacles. 1 Moreover, these same deviations could provoke severe instabilities ...
The real exchange rate
... A downturn in a major economy (like the US) gets quickly transmitted to the rest of the world through the trade channel 2007-09 Recession ...
... A downturn in a major economy (like the US) gets quickly transmitted to the rest of the world through the trade channel 2007-09 Recession ...
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... Heterogeneity between euro area members is further augmented by the single currency in that different countries have different sensitivities to fluctuations in the euro exchange rate, as determined by their trade linkages. For example, Ireland trades much more extensively with the US and the UK (as ...
... Heterogeneity between euro area members is further augmented by the single currency in that different countries have different sensitivities to fluctuations in the euro exchange rate, as determined by their trade linkages. For example, Ireland trades much more extensively with the US and the UK (as ...
View/Open
... and Hakura (2001) find that the inflation regime is a significant determinant of the degree pass-through for a cross section of countries and a small number of countries that experienced a dramatic shift in the inflation environment also support the relation between inflation and the pass-through. A ...
... and Hakura (2001) find that the inflation regime is a significant determinant of the degree pass-through for a cross section of countries and a small number of countries that experienced a dramatic shift in the inflation environment also support the relation between inflation and the pass-through. A ...
Monetary Policy and Japan s Liquidity Trap
... Japan, finds it particularly difficult to convince the private sector that it suddenly wants the price level to increase substantially. 2.1. Expanding the money supply One potential way to affect expectations of the future price level is by increasing the money supply. As Krugman noted, this is effectiv ...
... Japan, finds it particularly difficult to convince the private sector that it suddenly wants the price level to increase substantially. 2.1. Expanding the money supply One potential way to affect expectations of the future price level is by increasing the money supply. As Krugman noted, this is effectiv ...
Capital Account Liberalization as a Development Strategy for
... On the one hand, financial liberalization was conceived as a desirable economic policy because of its positive impact on member countries’ economic prospects. Specifically, IMF staff maintained that liberalization was beneficial as a mechanism of economic growth (welfare-enhancing argument) and as ...
... On the one hand, financial liberalization was conceived as a desirable economic policy because of its positive impact on member countries’ economic prospects. Specifically, IMF staff maintained that liberalization was beneficial as a mechanism of economic growth (welfare-enhancing argument) and as ...
Dollarization: The Case of Zimbabwe
... 2. The land expropriation program of 2000 when governmentsponsored veterans of the war for Zimbabwe’s independence invaded nearly all 4,500 white-owned commercial farms and forcibly appropriated them for war veterans and the kakistocracy of politicians and the security establishment (Richardson 2005 ...
... 2. The land expropriation program of 2000 when governmentsponsored veterans of the war for Zimbabwe’s independence invaded nearly all 4,500 white-owned commercial farms and forcibly appropriated them for war veterans and the kakistocracy of politicians and the security establishment (Richardson 2005 ...
The Uneasy Relation Between The Budget And
... less than domestic investment. This identity has a number of important implications: • Achange in conditions or policies that increases exports or reduces imports will not increase the trade balance unless it also increases the balance of domestic saving and investment. Specifically, trade policy, b ...
... less than domestic investment. This identity has a number of important implications: • Achange in conditions or policies that increases exports or reduces imports will not increase the trade balance unless it also increases the balance of domestic saving and investment. Specifically, trade policy, b ...
The IMF and the Brazilian Crisis
... be stuck trying to pay back for a very long time. 2. You will have to sell everything you own, fire all your employees and you will have to live in severe distress to pay your debt. In the global world of foreign investment the person with the several companies is the country and the big investors a ...
... be stuck trying to pay back for a very long time. 2. You will have to sell everything you own, fire all your employees and you will have to live in severe distress to pay your debt. In the global world of foreign investment the person with the several companies is the country and the big investors a ...
99095115I_en.pdf
... the fact that these goals are not made explicit, even though the Central Bank is the institution responsible for managing both systems, a factor that minimizes the likelihood of the kind of policy coordination problems seen in certain countries where exchange-rate policy is conducted by the governme ...
... the fact that these goals are not made explicit, even though the Central Bank is the institution responsible for managing both systems, a factor that minimizes the likelihood of the kind of policy coordination problems seen in certain countries where exchange-rate policy is conducted by the governme ...
Competitive Currency Depreciation: The Need for a More Effective
... the United States; when these ceased at the close of the decade, Great Britain suspended gold payments, France did not. The United States abandoned the gold standard as one of the first acts of the Roosevelt presidency, and rejected a proposed dollar-franc-pound stabilization proposal at the London ...
... the United States; when these ceased at the close of the decade, Great Britain suspended gold payments, France did not. The United States abandoned the gold standard as one of the first acts of the Roosevelt presidency, and rejected a proposed dollar-franc-pound stabilization proposal at the London ...
an analysis of pegged exchange rate between bhutan and india
... is for an optimum currency area. He defines openness as a ratio of tradable goods to non-tradable goods. An economy with a higher ratio of tradable to non-tradable goods is considered more open. Economies that are highly open prefer fixed exchange rates. For them, a change in exchange rates will not ...
... is for an optimum currency area. He defines openness as a ratio of tradable goods to non-tradable goods. An economy with a higher ratio of tradable to non-tradable goods is considered more open. Economies that are highly open prefer fixed exchange rates. For them, a change in exchange rates will not ...
Euro - Georgia State University
... it would eliminate a possible collapse of the currency board resulting in a large devaluation of the lev and another episode of financial instability. A low level of confidence in the Bulgarian currency board would therefore be associated with support for adopting the euro. The currency board contri ...
... it would eliminate a possible collapse of the currency board resulting in a large devaluation of the lev and another episode of financial instability. A low level of confidence in the Bulgarian currency board would therefore be associated with support for adopting the euro. The currency board contri ...
Obstacles to Implementing Lessons from the 1997-1998 East Asian Crises & Social Af
... Of course, some of the weaknesses identified in the literature did imply that the region was economically vulnerable. The dominance of foreign transnationals in manufacturing activities, especially in the most technologically sophisticated and dynamic ones, subordinated domestic industrial capital i ...
... Of course, some of the weaknesses identified in the literature did imply that the region was economically vulnerable. The dominance of foreign transnationals in manufacturing activities, especially in the most technologically sophisticated and dynamic ones, subordinated domestic industrial capital i ...
1 - uc-davis economics
... One term paper. In the past, a polished version of the term paper has constituted the first chapter of the dissertation for some students. This will not be true for all of you but if you are thinking of writing a dissertation in monetary economics, this may be a good opportunity to get your thesis j ...
... One term paper. In the past, a polished version of the term paper has constituted the first chapter of the dissertation for some students. This will not be true for all of you but if you are thinking of writing a dissertation in monetary economics, this may be a good opportunity to get your thesis j ...
understanding monetary policy series no 24 how central
... Price instability manifests as price volatility, where volatility refers to the pace at which prices move higher or lower, and how wildly they swing. It is the frequency and severity with which the general price level rises and falls. In general, price instability is caused by factors including mone ...
... Price instability manifests as price volatility, where volatility refers to the pace at which prices move higher or lower, and how wildly they swing. It is the frequency and severity with which the general price level rises and falls. In general, price instability is caused by factors including mone ...
The Real Exchange Rate: Issues Of Concept And Measurement, by
... Ep * / p d answers the question, how many baskets of our imports can we buy with one of our production (GDP) baskets or with one of our consumption (CPI) baskets? This would be my nominee for a RER measure that was tailored to each country’s trade pattern. Why cannot this definition be made into the ...
... Ep * / p d answers the question, how many baskets of our imports can we buy with one of our production (GDP) baskets or with one of our consumption (CPI) baskets? This would be my nominee for a RER measure that was tailored to each country’s trade pattern. Why cannot this definition be made into the ...
dollar deposed stress test scenario
... all potential causes of future shocks into a “Universal Threat Taxonomy.” We have reviewed more than a thousand years of history in order to identify the different causes of disruptive events, collating other disaster catalogues and categorization structures, and researching scientific conjecture an ...
... all potential causes of future shocks into a “Universal Threat Taxonomy.” We have reviewed more than a thousand years of history in order to identify the different causes of disruptive events, collating other disaster catalogues and categorization structures, and researching scientific conjecture an ...
External Constraints on Monetary Policy and The Financial Accelerator
... peg were more likely to have su®ered severe ¯nancial distress. The likely reason is straightforward: defending an exchange rate peg generally requires a central bank to adjust interest rates in a direction that reinforces the crisis. Moreover, this connection between external constraints on monetary ...
... peg were more likely to have su®ered severe ¯nancial distress. The likely reason is straightforward: defending an exchange rate peg generally requires a central bank to adjust interest rates in a direction that reinforces the crisis. Moreover, this connection between external constraints on monetary ...
Which Anchor Will Hold?
... The impossible trinity, sometimes referred to as the macroeconomic trilemma, holds that a country with an open capital account that opts to fix its exchange rate must subjugate its monetary policy to that of the anchor currency country. If it wishes to maintain capital mobility and an independent mo ...
... The impossible trinity, sometimes referred to as the macroeconomic trilemma, holds that a country with an open capital account that opts to fix its exchange rate must subjugate its monetary policy to that of the anchor currency country. If it wishes to maintain capital mobility and an independent mo ...
Monetary Policy Transmission (Page a)
... reflects both analytical and methodological considerations. From an analytical point of view, it is widely acknowledged that significant gaps remain with regard to the precise nature of the channels monetary impulses are transmitted through economies (Levy, et.al 1997). Economists have been trying t ...
... reflects both analytical and methodological considerations. From an analytical point of view, it is widely acknowledged that significant gaps remain with regard to the precise nature of the channels monetary impulses are transmitted through economies (Levy, et.al 1997). Economists have been trying t ...
Hayek - currency competition and European monetary union
... himself mentioned the great German inflation of 1923. After the second World War, prices had moved worldwide only in one direction. In the course of the 1960s “booming” US Federal Government expenditure, which was partly associated with the Vietnam War, led to a sustained period of strong growth in ...
... himself mentioned the great German inflation of 1923. After the second World War, prices had moved worldwide only in one direction. In the course of the 1960s “booming” US Federal Government expenditure, which was partly associated with the Vietnam War, led to a sustained period of strong growth in ...