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Monetary policy in Vietnam: the case of a transition country
Monetary policy in Vietnam: the case of a transition country

... state-owned commercial banks (SOCBs), the liberalisation of interest rates and the development of financial markets. 6 Reforms, which started in the first half of the 1990s, have since then been implemented gradually. As a result of the reforms, the Vietnamese financial system has deepened as indica ...
NBER WORKING PAPER SERIES CAPITAL CONTROLS, THE DUAL EXCHANGE RATE, AND Maurice Obstfeld
NBER WORKING PAPER SERIES CAPITAL CONTROLS, THE DUAL EXCHANGE RATE, AND Maurice Obstfeld

... equilibria, some saddle—path stable and some entirely unstable. Section IV analyzes the effect of a permanent, unanticipated devaluation on an economy initially at a stable long—run equilibrium. Devaluation always leads to a balance—of—payments surplus; but because the counterpart of this surplus is ...
The Internationalization of the Renminbi
The Internationalization of the Renminbi

... The ECIPE Working Paper series presents ongoing research and work in progress. These Working Papers might therefore present preliminary results that have not been subject to the usual review process for ECIPE publications. We welcome feedback and recommend you to send comments directly to the author ...
ECONOMIC POLICY AND THE REAL EXCHANGE RATE: RUSSIA
ECONOMIC POLICY AND THE REAL EXCHANGE RATE: RUSSIA

... its supply. Productivity increases also play a role -- which, however, is far from adequately appreciated in most contemporary discussions. Many such discussions seem to be based on the idea that productivity increases in general cause the real exchange rate to appreciate (i.e., the dollar to become ...
PDF
PDF

... This paper uses a dynamic global timber market model developed by Sohngen et al. (1999) to explore the effects of several alternative exchange rate scenarios on the domestic industry. The model maximizes the net present value of consumers' plus producer's surplus in global timber markets by optimall ...
NBER WORKING PAPER SERIES CAUSES OF APPRECIATION AND VOLATILITY OF THE DOLLAR
NBER WORKING PAPER SERIES CAUSES OF APPRECIATION AND VOLATILITY OF THE DOLLAR

... In 1981 real interest rates in the United States increased spectacularly, and the dollar appreciated in real terms by about 20 percent. Since the end of 1981, long-term real interest rates have remained in the range of 5-10 percent, with nominal long rates above short rates. The dollar appreciated f ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... Webb, and Neyapti 1993). But Japan and Korea are both exceptions to these findings, since they have managed to achieve relatively low inflation without requiring their central banks to be formally independent. The implications of these conclusions for Korea point in the direction of flexibility, it ...
NBER WORKING PAPER SERIES FEAR OF SUDDEN STOPS: Ricardo Caballero
NBER WORKING PAPER SERIES FEAR OF SUDDEN STOPS: Ricardo Caballero

... the importance of drawing a distinction between two dimensions of investor confidence: country-trust and currency-trust. Currency-trust describes the degree of confidence foreign investors have in holding assets denominated in the currency of the particular country. It indicates that investors belie ...
Download (PDF)
Download (PDF)

... We confirm that the appropriate level of IR is not necessarily constant and determining factors continue to evolve with developments in the global economy. In 1999–2006, the pre-GFC period, gross saving is associated with higher international reserves in the developing and emerging markets; the out ...
External Monetary Shocks to Central and Eastern European
External Monetary Shocks to Central and Eastern European

... policy induces an economic boom elsewhere; the increase of exports and imports is possible through the world capital market channel. Calvo et al. (1993) analysed the impact of a US monetary shock to Latin America countries. They found the macroeconomic volatility, to be impacted by the US shocks (e. ...
Money, Banking, and the Financial System
Money, Banking, and the Financial System

... Many banks had suffered heavy losses and had a strong desire to remain liquid. Nominal interest rates had also fallen to very low levels, which reduced the opportunity cost of holding reserves at the Fed. ...
The Balance of Payments and Exchange Rates
The Balance of Payments and Exchange Rates

... • The level of a country’s interest rate relative to interest rates in other countries is another determinant of the exchange rate. If U.S. interest rates rise relative to British interest ...
Economics and Political Economy
Economics and Political Economy

... Rogoff based models show that fixed exchange rate arrangements are least susceptible to speculative attacks, LYS based models point to the intermediate exchange rate regimes as the least crisis prone. However, Esaka (2014), using data on currency crises and exchange rate regimes from 84 countries fo ...
Substitution between domestic and foreign currency loans in Central
Substitution between domestic and foreign currency loans in Central

... developments. Third, credit creation can be useful in assessing the overall created liquidity, even if, in the short and medium run, it does not affect consumer prices. As a result, inflation targeting central banks pay attention to money and credit developments, treating them as one of the inputs to ...
IV. Monetary policy and the exchange rate in a very small, open and
IV. Monetary policy and the exchange rate in a very small, open and

... Since adopting its inflation target in March 2001, Iceland has experienced a recession and a boom while inflation has on average been considerably above the target of 2.5% and highly variable. The average 12-month rate of increase in the CPI has been 4.7%. Although the record is somewhat better if c ...
supplement/ancillary title - Amazon Simple Storage Service (S3)
supplement/ancillary title - Amazon Simple Storage Service (S3)

... implications for companies like Toyota. Why is it important for managers to understand the foreign exchange market? ANSWER 1: During the 2000s, investors in the foreign exchange market capitalized on interest rate differentials between Japan and the United States by engaging in carry trade. However, ...
A Currency Boards: Once and Future Monetary Regimes?
A Currency Boards: Once and Future Monetary Regimes?

... the value of its currency to that of another country and guaranteeing that its currency is backed by sufficient foreign exchange reserves. Currency boards not only provide a foundation that encourages traders and investors to accept new currencies, they also do not require sophisticated money market ...
STABILIZING THE DOLLAR IN A GLOBAL ECONOMY Marc A. Miles
STABILIZING THE DOLLAR IN A GLOBAL ECONOMY Marc A. Miles

... Federal Reserve are important participants, and the dollar is an important currency. But the U.S. dollar is only one of the primary monies traded, and the American people constitute only a fraction of those worldwide who use dollars. The Federal Reserve is only one of the institutions that supplies ...
Comparative Study: Factors that Affect Foreign Currency Reserves
Comparative Study: Factors that Affect Foreign Currency Reserves

... translates into net capital inflows into the country. Net capital inflows would strengthen the domestic currency. Under a fixed exchange rate system such capital flows must be counterbalanced to maintain the peg, under a flexible exchange rate system the currency would appreciate. If a country wishe ...
Improving Macroeconomic Management
Improving Macroeconomic Management

... With increased fiscal expansion or fiscal deficits, current account deficits widen and the ratio of public debt to GDP increases correspondingly. Capital flight worsens the debt problem as domestic savers could respond to unsustainable fiscal deficits by sheltering their assets abroad, the scenario ...
East African Community: Pre-conditions for an Effective Monetary
East African Community: Pre-conditions for an Effective Monetary

... they are probably culturally much more similar than the EMU countries. Table 1. Indicators of economic structure ...
PDF Download
PDF Download

... international assets from the IR account into the purchase of more tangible foreign assets; the Joneses’ effect lends support to the implicit rivalry-hoarding motives; and commodity-price volatility induces IR hoarding against uncertainty while fuel exporters store their proceeds partly in the form ...
Exchange Control Liberalization, Measures and Their Economic
Exchange Control Liberalization, Measures and Their Economic

... defined to include assets denominated in foreign currencies. Foreign assets that can be used to serve the functions of a foreign money, i.e., a medium of international payments/exchange, medium of deferred payments for international transactions and a liquid store of internationally usable wealth ar ...
nipfp.org - Semantic Scholar
nipfp.org - Semantic Scholar

... where policy makers desire to influence the bilateral exchange rate against the USD (Shah et al., 2005; Frankel, 2009; Patnaik, 2007). In India, according to the RBI (the Indian central bank), the rupee is a market determined exchange rate, in the sense that there is a currency market and the exchang ...
Weak Dollar, Strong Dollar: Causes and Consequences
Weak Dollar, Strong Dollar: Causes and Consequences

... dollar depreciation could be expected to slow and then reverse the steady rise of the U.S. trade deficit. Also, a depreciating dollar tends to improve the U.S. net debt position by raising the value U.S. foreign assets. But a falling dollar also tends to raise the dollar price of commodities such as ...
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Bretton Woods system

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australasia and Japan in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to gold and the ability of the IMF to bridge temporary imbalances of payments. Also, there was a need to address the lack of cooperation among other countries and to prevent competitive devaluation of the currencies as well.Preparing to rebuild the international economic system while World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. The delegates deliberated during 1–22 July 1944, and signed the Bretton Woods agreement on its final day. Setting up a system of rules, institutions, and procedures to regulate the international monetary system, these accords established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. The United States, which controlled two thirds of the world's gold, insisted that the Bretton Woods system rest on both gold and the US dollar. Soviet representatives attended the conference but later declined to ratify the final agreements, charging that the institutions they had created were ""branches of Wall Street."" These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.On 15 August 1971, the United States unilaterally terminated convertibility of the US dollar to gold, effectively bringing the Bretton Woods system to an end and rendering the dollar a fiat currency. This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as the pound sterling, for example), also became free-floating.
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