2014-11 - University of Glasgow
... payments deficits and surpluses. Second, because it is a fixed rate system it could not address competiveness issues arising from the petro-‐currency effect. Third, to insure the sterling retail bank deposit ...
... payments deficits and surpluses. Second, because it is a fixed rate system it could not address competiveness issues arising from the petro-‐currency effect. Third, to insure the sterling retail bank deposit ...
trento 25/3 1998 - Department of Economics
... subordinated to the monetary regime. The monetary regime places binding constraints on fiscal policies. The major exception to this pattern occurred during major wars and their immediate aftermath when fiscal demands determined monetary policy. Since the mid 1960s and especially after the breakdown ...
... subordinated to the monetary regime. The monetary regime places binding constraints on fiscal policies. The major exception to this pattern occurred during major wars and their immediate aftermath when fiscal demands determined monetary policy. Since the mid 1960s and especially after the breakdown ...
A Program for Monetary Reform - The University of Chicago Booth
... When there was an excess of commodity exports from a given country, or a flight to it of gold from foreign countries, its central bank was similarly supposed to lower interest rates, thus stimulating lending, with a consequent withdrawal of gold from the bank. But after the war this automatic regul ...
... When there was an excess of commodity exports from a given country, or a flight to it of gold from foreign countries, its central bank was similarly supposed to lower interest rates, thus stimulating lending, with a consequent withdrawal of gold from the bank. But after the war this automatic regul ...
Lessons from Monetary and Real Exchange Rate Economics Arnold C. Harberger
... exchange rate, adjusting the nominal exchange rate to offset ongoing movements in the price level. But that meant that the real exchange rate could not perform its fundamental role of equilibrating the country’s trade and payments. The central bank ended up first having to buy large quantities of fo ...
... exchange rate, adjusting the nominal exchange rate to offset ongoing movements in the price level. But that meant that the real exchange rate could not perform its fundamental role of equilibrating the country’s trade and payments. The central bank ended up first having to buy large quantities of fo ...
Choices to Address Foreign Currency Exposure
... First, various established currency trading strategies have tended to produce returns, which can be proxied by style or risk factors and have the nature of beta returns. Many academic and professional studies support the notion that various types of currency trading strategies have been quite profit ...
... First, various established currency trading strategies have tended to produce returns, which can be proxied by style or risk factors and have the nature of beta returns. Many academic and professional studies support the notion that various types of currency trading strategies have been quite profit ...
What G20 Leaders Must Do to Stabilise Our Economy and
... Save Doha to save the G20 Summit Ernesto Zedillo ...
... Save Doha to save the G20 Summit Ernesto Zedillo ...
International Accounting Standard 29 Financial Reporting in Hyperinflationary Economies Scope
... Most non-monetary items are carried at cost or cost less depreciation; hence they are expressed at amounts current at their date of acquisition. The restated cost, or cost less depreciation, of each item is determined by applying to its historical cost and accumulated depreciation the change in a ge ...
... Most non-monetary items are carried at cost or cost less depreciation; hence they are expressed at amounts current at their date of acquisition. The restated cost, or cost less depreciation, of each item is determined by applying to its historical cost and accumulated depreciation the change in a ge ...
Factor income shares and the current account of the New... balance of payments
... market and that they form expectations of the nominal exchange rate on the basis of some forward-looking view about long-run current-account fundamentals (cf Dornbusch and Fischer 1980). Then, unless New Zealand’s domestic inflation rate was expected to outrun the world rate (an unlikely proposition ...
... market and that they form expectations of the nominal exchange rate on the basis of some forward-looking view about long-run current-account fundamentals (cf Dornbusch and Fischer 1980). Then, unless New Zealand’s domestic inflation rate was expected to outrun the world rate (an unlikely proposition ...
Crisis Averted—What`s Next?
... And, confront a likely scenario of capital inflows in search for yield: • FX flexibility to avoid one-sided bets; • If inflows scale is large and problematic, step-up financial regulation/supervision; • Revisit the fiscal stance. ...
... And, confront a likely scenario of capital inflows in search for yield: • FX flexibility to avoid one-sided bets; • If inflows scale is large and problematic, step-up financial regulation/supervision; • Revisit the fiscal stance. ...
Freeing the World from the Free Market Economy
... the international economy (fluctuations which it could spread across its vast empire). It served as the lender of last resort, but the standard was a requirement for any nation that wished to be viewed as a stable and competitive investment. The standard ended with World War I, as the amount of gold ...
... the international economy (fluctuations which it could spread across its vast empire). It served as the lender of last resort, but the standard was a requirement for any nation that wished to be viewed as a stable and competitive investment. The standard ended with World War I, as the amount of gold ...
International Accounting Standard 29
... In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This ga ...
... In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This ga ...
Will the Bretton Woods 2 Regime Unravel Soon?
... exhausts the world’s central banks willingness to keep adding to their dollar reserves – and if the rest of the world does not take steps to reduce its dependence on an unsustainable expansion in US domestic demand to support its own growth -- the risk of a hard landing for the US and global economy ...
... exhausts the world’s central banks willingness to keep adding to their dollar reserves – and if the rest of the world does not take steps to reduce its dependence on an unsustainable expansion in US domestic demand to support its own growth -- the risk of a hard landing for the US and global economy ...
Fixed Exchange Rate and the Autonomy of Monetary
... the zone. For instance, Algeria, Guinea, Madagascar, Morocco, and Tunisia left the zone soon after independence, and Mauritania abandoned both the franc zone and WAEMU in 1972. Finally, the central bank of the Comoros issues the Comorian franc. Thus, the name “CFA franc zone” is misleading—besides t ...
... the zone. For instance, Algeria, Guinea, Madagascar, Morocco, and Tunisia left the zone soon after independence, and Mauritania abandoned both the franc zone and WAEMU in 1972. Finally, the central bank of the Comoros issues the Comorian franc. Thus, the name “CFA franc zone” is misleading—besides t ...
Diasporas and Dollars
... adjust to the new world order. In 1989, Cuba had the second highest ratio of hard currency debt to hard currency exports in the region.14 Short of foreign exchange, the government suspended servicing its Western debt in 1986 losing access to new credit lines as a result. Yet, owing to the accumulati ...
... adjust to the new world order. In 1989, Cuba had the second highest ratio of hard currency debt to hard currency exports in the region.14 Short of foreign exchange, the government suspended servicing its Western debt in 1986 losing access to new credit lines as a result. Yet, owing to the accumulati ...
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... with one another, with more advanced countries often having more highly developed and reliable budgetary systems. The connection is less than tight: some middle-income countries, in Scandinavia for example, had solvent governments and maintained specie convertibility, while Austria-Hungary, Russia a ...
... with one another, with more advanced countries often having more highly developed and reliable budgetary systems. The connection is less than tight: some middle-income countries, in Scandinavia for example, had solvent governments and maintained specie convertibility, while Austria-Hungary, Russia a ...
Low Interest Rate Policy and the Use of Reserve Requirements in
... emerging market central banks. In particular, we aim to analyze the link between the interest rate policies in the US and Euro Area and the use of reserve requirements in emerging markets. We argue that (i) in fear of financial inflows and currency appreciation emerging market central banks are incl ...
... emerging market central banks. In particular, we aim to analyze the link between the interest rate policies in the US and Euro Area and the use of reserve requirements in emerging markets. We argue that (i) in fear of financial inflows and currency appreciation emerging market central banks are incl ...
View/Open
... This inverse relationship, namely that when interest rates fall bond prices increase, has an impact on the real sector, the goods market. When the interest rate falls, investment demand increases, and consequently output increases. Thus, output increases in tine with increased demand. This is the so ...
... This inverse relationship, namely that when interest rates fall bond prices increase, has an impact on the real sector, the goods market. When the interest rate falls, investment demand increases, and consequently output increases. Thus, output increases in tine with increased demand. This is the so ...
the concept of fts anylysis in forecasting trends of exchange rate
... accuracy of forecasts indicate that these forecasts are more often wrong than correct. This confirms the thesis about the unpredictability of future foreign currency exchange rates and the need to seek new methods of forecasting, or to improve the existing ones. In the light of the theory of exchang ...
... accuracy of forecasts indicate that these forecasts are more often wrong than correct. This confirms the thesis about the unpredictability of future foreign currency exchange rates and the need to seek new methods of forecasting, or to improve the existing ones. In the light of the theory of exchang ...
How to leave a single currency
... Because of the political disunity that followed the breakup of the Soviet bloc, Czechoslovakia was first divided into two independent countries: the Czech and Slovakian Republics, but they retained a common currency, a custom union and a common labor market (Fidrmuc et al. 1999). However, only littl ...
... Because of the political disunity that followed the breakup of the Soviet bloc, Czechoslovakia was first divided into two independent countries: the Czech and Slovakian Republics, but they retained a common currency, a custom union and a common labor market (Fidrmuc et al. 1999). However, only littl ...
14 pages - Bank for International Settlements
... by 1977 for New Zealand (Schenk and Singleton (forthcoming)). Today, New Zealand, Iceland and Australia hold 15%, 15% and 0% of their reserves in sterling and 25%, 40% and 55% in dollars, as described below. ...
... by 1977 for New Zealand (Schenk and Singleton (forthcoming)). Today, New Zealand, Iceland and Australia hold 15%, 15% and 0% of their reserves in sterling and 25%, 40% and 55% in dollars, as described below. ...
The Creation of the Euro and the Role of the Dollar
... IMF, International Financial Statistics. Debt securities: Bank for International Settlements, Quarterly Review of International Banking and Financial Market Developments. Stock market: Eurostat. ...
... IMF, International Financial Statistics. Debt securities: Bank for International Settlements, Quarterly Review of International Banking and Financial Market Developments. Stock market: Eurostat. ...
Dubravko Radosevic PEAC Final version Brussels
... price bubbles, appreciating real exchange rates and widening current account deficits. Both countries pursued pro-cyclical fiscal policies in the context of fixed exchange rate arrangements. These developments resulted in financial crisis. A key distinguishing feature of these developments in Croati ...
... price bubbles, appreciating real exchange rates and widening current account deficits. Both countries pursued pro-cyclical fiscal policies in the context of fixed exchange rate arrangements. These developments resulted in financial crisis. A key distinguishing feature of these developments in Croati ...
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... the allocation of resources among different sectors. In addition, exchange rate fluctuations may generate uncertainties that could impede trade. ...
... the allocation of resources among different sectors. In addition, exchange rate fluctuations may generate uncertainties that could impede trade. ...
Currency Substitution, Unofficial Dollarization and Estimates of
... effective money supply is much larger than the domestic money supply and is, moreover, less easily controlled by the monetary authority because of the public’s propensity to substitute foreign for domestic currency. For example, de facto use of FCC will thwart government efforts to employ inflationa ...
... effective money supply is much larger than the domestic money supply and is, moreover, less easily controlled by the monetary authority because of the public’s propensity to substitute foreign for domestic currency. For example, de facto use of FCC will thwart government efforts to employ inflationa ...
Financial Performance
... – Figure 16.4 illustrates the use of exchange rate policy – in particular, a devaluation – to effect an internal and external balance. • The devaluation lowers the relative price of domestic goods. Exports rise, shifting the IS and BOP curves to the right. – Initial effect is to create a BOP surplus ...
... – Figure 16.4 illustrates the use of exchange rate policy – in particular, a devaluation – to effect an internal and external balance. • The devaluation lowers the relative price of domestic goods. Exports rise, shifting the IS and BOP curves to the right. – Initial effect is to create a BOP surplus ...