Library of Parliament
... Research at the Bank of Canada shows that, of all the factors known to affect the value of the Canadian dollar, most long-term movements in the exchange rate can be attributed to fluctuations in four variables: the difference in Canadian–US inflation rates; interest rate differentials between the tw ...
... Research at the Bank of Canada shows that, of all the factors known to affect the value of the Canadian dollar, most long-term movements in the exchange rate can be attributed to fluctuations in four variables: the difference in Canadian–US inflation rates; interest rate differentials between the tw ...
Carbaugh, International Economics 9e, Chapter 13
... When are these factors important? Short run (days) Dominated by financial transfers responding to: Differences in real interest rates Shifting expectations of future exchange rates ...
... When are these factors important? Short run (days) Dominated by financial transfers responding to: Differences in real interest rates Shifting expectations of future exchange rates ...
THE IMPACT OF EXCHANGE RATE MOVEMENTS ON TRADE
... of US1480 Nigeria was considered a middle-income country and had easy access to international capital markets. The fall in oil production in 1981 (owing to OPEC quota changes) and the subsequent oil price decrease made it clear how dependent the economy and government budget had become on oil revenu ...
... of US1480 Nigeria was considered a middle-income country and had easy access to international capital markets. The fall in oil production in 1981 (owing to OPEC quota changes) and the subsequent oil price decrease made it clear how dependent the economy and government budget had become on oil revenu ...
The Current Account and the Exchange Rate
... The Bank of England and the Banque de France, had gold windows where they bought and sold gold at a fixed currency price in the 19th century. In doing so, their currency rates were fixed. For example, if the Bank of England sets ten pounds per ounce of gold as the buy/sell rate and the Banque of Fra ...
... The Bank of England and the Banque de France, had gold windows where they bought and sold gold at a fixed currency price in the 19th century. In doing so, their currency rates were fixed. For example, if the Bank of England sets ten pounds per ounce of gold as the buy/sell rate and the Banque of Fra ...
Money and the Rule of Law in Ecuador
... confiscated in an arbitrary, ad hoc manner via devaluations. Accordingly, governments that fail to protect the value of their money are guilty of not abiding by the rule of law. Argentina’s recent experience illustrates this point. Under the convertibility system, which was established on April 1, 1 ...
... confiscated in an arbitrary, ad hoc manner via devaluations. Accordingly, governments that fail to protect the value of their money are guilty of not abiding by the rule of law. Argentina’s recent experience illustrates this point. Under the convertibility system, which was established on April 1, 1 ...
The Euro`s Challenge to the Dollar
... efficiently to international market participants, who may want to borrow or invest in the domestic currency, or hedge their foreign currency positions. Third, a well-developed financial system is more likely to attract business from abroad, where financial markets may be less developed or barriers t ...
... efficiently to international market participants, who may want to borrow or invest in the domestic currency, or hedge their foreign currency positions. Third, a well-developed financial system is more likely to attract business from abroad, where financial markets may be less developed or barriers t ...
NBER WORKING PAPER SERIES THE MIRAGE OF EXCHANGE RATE Guillermo A. Calvo
... U.S. dollars, then a depreciation of the currency vs. the dollar can greatly injure the financial system. Under these circumstances, the monetary authority is likely to display “fear of floating” (Calvo and Reinhart, 2002), defined as a reluctance to allow totally free fluctuations in the nominal or ...
... U.S. dollars, then a depreciation of the currency vs. the dollar can greatly injure the financial system. Under these circumstances, the monetary authority is likely to display “fear of floating” (Calvo and Reinhart, 2002), defined as a reluctance to allow totally free fluctuations in the nominal or ...
Currency Privatization as a Substitute for Currency
... the outstanding peso monetary base, including both paper pesos and commercial bank reserves. Bank assets and liabilities are redenominated in dollars, according to the established exchange rate, and banks are responsible for redeeming their deposits in dollars. In order to be able to do so, they wil ...
... the outstanding peso monetary base, including both paper pesos and commercial bank reserves. Bank assets and liabilities are redenominated in dollars, according to the established exchange rate, and banks are responsible for redeeming their deposits in dollars. In order to be able to do so, they wil ...
File
... * In our example, the Fed injects $100 in reserves into the banking system, by purchasing a $100 T-bill from the First National Bank. To see how that increases the money supply, we need to keep track of the increase in checking deposits. After the Fed's purchase, First National has $100 in excess re ...
... * In our example, the Fed injects $100 in reserves into the banking system, by purchasing a $100 T-bill from the First National Bank. To see how that increases the money supply, we need to keep track of the increase in checking deposits. After the Fed's purchase, First National has $100 in excess re ...
Internationalization of Renminbi: What does the Evidence Suggest?
... one economy as early as within this decade has accelerated the ascendance of the RMB much earlier than one could have anticipated even a couple of years back. This is not to say that today‘s monetary lingua franca the USD will be replaced by the RMB or any other currency anytime time soon but its do ...
... one economy as early as within this decade has accelerated the ascendance of the RMB much earlier than one could have anticipated even a couple of years back. This is not to say that today‘s monetary lingua franca the USD will be replaced by the RMB or any other currency anytime time soon but its do ...
Money Economics offers various definitions for money, though it is
... changes changed the nature of the demand for money during the 1980s. Monetary policy aims to manage the money supply, inflation and interest to affect output and employment. Inflation is the decrease in the value of a specific currency over time and can be caused by dramatic increases in the money s ...
... changes changed the nature of the demand for money during the 1980s. Monetary policy aims to manage the money supply, inflation and interest to affect output and employment. Inflation is the decrease in the value of a specific currency over time and can be caused by dramatic increases in the money s ...
Open Economy Macroeconomics
... • Note that most currency prices are related to the dollar. For example, the British pound sells for $1.93/GBP • We can use any two dollar exchange rates to find the “cross rates” (non-dollar exchange rates) • For example, if the exchange rate for Japanese yen is Y109.62/$, then the price of a GBN i ...
... • Note that most currency prices are related to the dollar. For example, the British pound sells for $1.93/GBP • We can use any two dollar exchange rates to find the “cross rates” (non-dollar exchange rates) • For example, if the exchange rate for Japanese yen is Y109.62/$, then the price of a GBN i ...
The Mexican Peso Crisis: the Foreseeable and the Surprise
... very difficult, the authorities should have increased domestic savings via fiscal policy. It is quite conceivable that a more conservative approach in the exchange rate17 and/or the fiscal front starting in 1993 would have reduced the chances of a crisis like the one which occurred in 1995. Why did ...
... very difficult, the authorities should have increased domestic savings via fiscal policy. It is quite conceivable that a more conservative approach in the exchange rate17 and/or the fiscal front starting in 1993 would have reduced the chances of a crisis like the one which occurred in 1995. Why did ...
The Argentine Monetary and Financial Policies and the Crisis
... The emergence of the subprime crisis in the United States as from mid 2007, which eventually became the worst economic and financial crisis of the last 70 years, was the first episode of turmoil suffered by the Argentine economy since it came out of the 2001-2002 domestic crisis. Added to this, ther ...
... The emergence of the subprime crisis in the United States as from mid 2007, which eventually became the worst economic and financial crisis of the last 70 years, was the first episode of turmoil suffered by the Argentine economy since it came out of the 2001-2002 domestic crisis. Added to this, ther ...
Reassessing the Link between the Japanese Yen and Emerging
... rate should be a key objective of the foreign exchange rate policy in emerging Asian currencies. Following the approach of Frankel and Wei (1994), Bowman (2005) shows that the Australian dollar, in addition to JPY, has increased its influence in exchange rates of East Asian countries during the 1990 ...
... rate should be a key objective of the foreign exchange rate policy in emerging Asian currencies. Following the approach of Frankel and Wei (1994), Bowman (2005) shows that the Australian dollar, in addition to JPY, has increased its influence in exchange rates of East Asian countries during the 1990 ...
restrictions on foreign currency borrowing
... substantially restrict and discourage foreign currency denominated lending. The regulation however did not achieve the objective for which it was passed; it merely increased the difficulty in the repayment of the foreign currency loans. As a further mitigating measure, the Hungarian Government in 20 ...
... substantially restrict and discourage foreign currency denominated lending. The regulation however did not achieve the objective for which it was passed; it merely increased the difficulty in the repayment of the foreign currency loans. As a further mitigating measure, the Hungarian Government in 20 ...
challenges faced by gold economy in india
... a more organized set of sellers which resulted in greater transparency and adaption of higher quality and design standards. The recent steps taken by Government to restrict import of gold are definitely having a negative impact on Gems & Jewellery sector. KEYWORDS: Gold, Government, Challenges, Jewe ...
... a more organized set of sellers which resulted in greater transparency and adaption of higher quality and design standards. The recent steps taken by Government to restrict import of gold are definitely having a negative impact on Gems & Jewellery sector. KEYWORDS: Gold, Government, Challenges, Jewe ...
The Coexistence of Commodity Money and Fiat Money
... as a medium of exchange in Switzerland. Moreover, we believe that the exchange rate of the Gold Franc relative to the Swiss Franc would not be set by the Government but would float freely according to supply and demand of Gold in the market (as in Utah, and Kelantan). These political initiatives int ...
... as a medium of exchange in Switzerland. Moreover, we believe that the exchange rate of the Gold Franc relative to the Swiss Franc would not be set by the Government but would float freely according to supply and demand of Gold in the market (as in Utah, and Kelantan). These political initiatives int ...
OCA criteria - Erasmus University Thesis Repository
... whether or not it could become one. This will be done by reviewing recent empirical studies on the Euro zone and the OCA. The research question will be: “Is the Euro zone an Optimal Currency Area? And if not, can it become one? “ Most researches agree that the EMU is not an OCA initially. De Grauwe ...
... whether or not it could become one. This will be done by reviewing recent empirical studies on the Euro zone and the OCA. The research question will be: “Is the Euro zone an Optimal Currency Area? And if not, can it become one? “ Most researches agree that the EMU is not an OCA initially. De Grauwe ...
NBER WORKING PAPER SERIES SUBSTITUTION: INTRODUCING AN INDEXED CURRENCY Federico Sturzenegger
... equilibrium rate of inflation. This result derives from a setup in which the government finances a certain amount of real resources through money printing and where CS reduces the base of the inflation tax. This paper shows this intuition wrong for those situations where the hyperinflation is expect ...
... equilibrium rate of inflation. This result derives from a setup in which the government finances a certain amount of real resources through money printing and where CS reduces the base of the inflation tax. This paper shows this intuition wrong for those situations where the hyperinflation is expect ...
Economics of Monetary Union 10e
... Less transactions cost • Elimination of foreign exchange markets within union eliminates cost of exchanging one currency into another • Cost reductions amount to 0.25 to 0.5% of GDP (according to European Commission) • Full cost reduction only achieved when payments systems are fully integrated – T ...
... Less transactions cost • Elimination of foreign exchange markets within union eliminates cost of exchanging one currency into another • Cost reductions amount to 0.25 to 0.5% of GDP (according to European Commission) • Full cost reduction only achieved when payments systems are fully integrated – T ...
Trilemmas and Tradeoffs: Living with Financial Globalization
... With the development of emerging financial markets and the general expansion of global finance, however, recent decades have revealed some new patterns. First, many emerging countries that Nurkse (1954) ruled out as portfolio investment destinations based on their colonial history now receive such f ...
... With the development of emerging financial markets and the general expansion of global finance, however, recent decades have revealed some new patterns. First, many emerging countries that Nurkse (1954) ruled out as portfolio investment destinations based on their colonial history now receive such f ...
Working Paper 113 - Lessons from Italian Monetary Unification
... associations among the pre-unification states with a view to identifying an optimum currency area. In the face of severe negative shocks, such as stemmed from French punitive tariffs after unification, nominal and/or real exchange rate depreciation could be appropriate, especially for markets partic ...
... associations among the pre-unification states with a view to identifying an optimum currency area. In the face of severe negative shocks, such as stemmed from French punitive tariffs after unification, nominal and/or real exchange rate depreciation could be appropriate, especially for markets partic ...
Globalizing Capital: A History of the International Monetary System
... Reconstructing the Gold Standard The New Gold Standard Problems of the New Gold Standard The Pattern of International Payments Responses to the Great Depression Banking Crises and Their Management Disintegration of the Gold Standard ...
... Reconstructing the Gold Standard The New Gold Standard Problems of the New Gold Standard The Pattern of International Payments Responses to the Great Depression Banking Crises and Their Management Disintegration of the Gold Standard ...
An Institutional Framework for Comparing Emerging Market
... escape clause may dissipate any credibility gains.6 Thus, the establishment of a CBA must be carefully considered. Indeed, even without longer-term commitment, moving to a peg or a fixed exchange rate may confer sufficient short-term confidence to bring real interest rates down and reduce the cost o ...
... escape clause may dissipate any credibility gains.6 Thus, the establishment of a CBA must be carefully considered. Indeed, even without longer-term commitment, moving to a peg or a fixed exchange rate may confer sufficient short-term confidence to bring real interest rates down and reduce the cost o ...