Capital Flows and Financial Crises - E-Prints Complutense
... All those crises were preceded by a considerable growth of capital inflows (Palma, 2000) in a context of a nominal exchange rate which was softly pegged (Mexico, East Asia and Turkey) or hardly pegged (Argentina). The main reasons for the emerging economies to adopt this kind of anchored exchangerat ...
... All those crises were preceded by a considerable growth of capital inflows (Palma, 2000) in a context of a nominal exchange rate which was softly pegged (Mexico, East Asia and Turkey) or hardly pegged (Argentina). The main reasons for the emerging economies to adopt this kind of anchored exchangerat ...
How does monetary policy affect real sector of Papua New Guinea?
... the ongoing global recession since 2008. PNG is the only PIC with a floating exchange rate regime unlike the other five PICs which have currencies of their own. The amended Central Bank Act of 2000, which set price stability as primary macroeconomic goal of the Bank of PNG, the country’s central ban ...
... the ongoing global recession since 2008. PNG is the only PIC with a floating exchange rate regime unlike the other five PICs which have currencies of their own. The amended Central Bank Act of 2000, which set price stability as primary macroeconomic goal of the Bank of PNG, the country’s central ban ...
The Yen Exchange Rate and Net Foreign Assets
... exports will lead to a 1% real appreciation in the long run. Assuming a growth adjusted real return of 2.5% on net foreign assets, the estimated coefficient implies that the sum of the price elasticities of real exports and imports should be 1.25, broadly consistent with the estimates for Japan foun ...
... exports will lead to a 1% real appreciation in the long run. Assuming a growth adjusted real return of 2.5% on net foreign assets, the estimated coefficient implies that the sum of the price elasticities of real exports and imports should be 1.25, broadly consistent with the estimates for Japan foun ...
Hyperinflation and the Reconstruction of a National Money
... “theoretical event”: one which offers a brief though deep insight into the conditions under which a monetary order functions, or can be destroyed, or be rebuilt either around a single national money (a peso) or – wholly or partially – around a foreign unit (say the dollar). In this case, however, mo ...
... “theoretical event”: one which offers a brief though deep insight into the conditions under which a monetary order functions, or can be destroyed, or be rebuilt either around a single national money (a peso) or – wholly or partially – around a foreign unit (say the dollar). In this case, however, mo ...
PDF
... Another assumption is that the current account deficits of LIC's resulted from their expansionary financial policies, such as expanding government spending. The IMF program is also usually based on the assumption that exchar~ge rate and trade controls do not exist, but such controls are actually per ...
... Another assumption is that the current account deficits of LIC's resulted from their expansionary financial policies, such as expanding government spending. The IMF program is also usually based on the assumption that exchar~ge rate and trade controls do not exist, but such controls are actually per ...
The Exchange Rate
... Describe a country’s balance of payments accounts Explain what determines the amount of international borrowing and lending Explain why the United States changed from being a lender to being a borrower in the mid-1980s ...
... Describe a country’s balance of payments accounts Explain what determines the amount of international borrowing and lending Explain why the United States changed from being a lender to being a borrower in the mid-1980s ...
25 development of the czechoslovak koruna exchange rate
... disagio vis-à-vis the Soviet Union, Bulgaria, Hungary and Poland was introduced. For the rouble the agio (disagio) introduced was in the amount of 10%, i.e. an oscillation in the range from CSK 8.10 to CSK 9.90. In relation to Hungary an agio (disagio) of 10% was used, and for Poland and Bulgaria an ...
... disagio vis-à-vis the Soviet Union, Bulgaria, Hungary and Poland was introduced. For the rouble the agio (disagio) introduced was in the amount of 10%, i.e. an oscillation in the range from CSK 8.10 to CSK 9.90. In relation to Hungary an agio (disagio) of 10% was used, and for Poland and Bulgaria an ...
Thoughts from a Renaissance man When will the EM FX sell
... the impeachment talk in Brazil, or lead to demonstrations elsewhere. And this is leaving aside the impact on the West. JCB’s and Caterpillar's decisions last week to make thousands redundant will not be the last time we see western companies react to EM weakness. Lastly, we still have concerns about ...
... the impeachment talk in Brazil, or lead to demonstrations elsewhere. And this is leaving aside the impact on the West. JCB’s and Caterpillar's decisions last week to make thousands redundant will not be the last time we see western companies react to EM weakness. Lastly, we still have concerns about ...
Uruguay: Two Years of Monetary Policy in Adverse Conditions
... pointed by Dominioni that it requires a well developed financial market to be effective, but without the transparency that the committment to an interest rate rule would bring about. Defined as a general framework for monetary policy (not a rule) as it is done in Bernanke et al (1999), Svensson (200 ...
... pointed by Dominioni that it requires a well developed financial market to be effective, but without the transparency that the committment to an interest rate rule would bring about. Defined as a general framework for monetary policy (not a rule) as it is done in Bernanke et al (1999), Svensson (200 ...
The Panorama of the East Asian Crisis and the IMF`s
... of supply and demand, such as embargoes, inflationary monetary actions, wars, technological changes, or asset market bubbles.”3 In East Asia, the economic crisis was associated with factors such as an unexpected depreciation of the exchange rate, an intense capital outflow, a dangerous decrease in f ...
... of supply and demand, such as embargoes, inflationary monetary actions, wars, technological changes, or asset market bubbles.”3 In East Asia, the economic crisis was associated with factors such as an unexpected depreciation of the exchange rate, an intense capital outflow, a dangerous decrease in f ...
NBER WORKING PAPER SERIES THE TRANSMISSION MECHANISM AND THE Frederic S. Mishkin
... important effects on inflation and aggregate demand depending on the nature of the shocks, particularly in small, open economies. Therefore, central banks will closely monitor exchange rate developments and factor them into its decisions on setting monetary policy instruments. A depreciation of the ...
... important effects on inflation and aggregate demand depending on the nature of the shocks, particularly in small, open economies. Therefore, central banks will closely monitor exchange rate developments and factor them into its decisions on setting monetary policy instruments. A depreciation of the ...
PIIE Briefing 16-5: China`s New Economic Frontier: Overcoming
... aging population, shrinking labor force, and a slow transition from manufacturing to services risk threatening the country’s social and economic stability. China’s continued economic growth is an essential part of the Chinese Dream, President Xi Jinping’s vision for the reemergence of China’s promin ...
... aging population, shrinking labor force, and a slow transition from manufacturing to services risk threatening the country’s social and economic stability. China’s continued economic growth is an essential part of the Chinese Dream, President Xi Jinping’s vision for the reemergence of China’s promin ...
Chapter 11 The Monetary Approach To The Alan Barrett
... While mathematically obvious. the intUition behind this is that, with increased income. people's demand for money will rise, As such. they will attempt to accomodate money balances by reducing spending, thus leading to a balance of payments surplus, Similarly, increases in the rates of interest or i ...
... While mathematically obvious. the intUition behind this is that, with increased income. people's demand for money will rise, As such. they will attempt to accomodate money balances by reducing spending, thus leading to a balance of payments surplus, Similarly, increases in the rates of interest or i ...
CATO HANDBOOK CONGRESS FOR
... nor can it permanently lower real interest rates. But it can throw the economy off track by policy errors—that is, by creating either too much or too little money to maintain stable expectations about the long-run value of the currency. The most grievous error of discretionary monetary policy, as Mi ...
... nor can it permanently lower real interest rates. But it can throw the economy off track by policy errors—that is, by creating either too much or too little money to maintain stable expectations about the long-run value of the currency. The most grievous error of discretionary monetary policy, as Mi ...
Assignment3Answ
... of payments surplus, equal to the demand for shekels minus the supply of shekels. The demand for shekels at an exchange rate of 0.20 dollars/shekel is 30,000 – 8,000(0.20) = 28,400, and the supply of shekels is 25,000 + 12,000(0.20) = 27,400, so the balance of payments surplus is 28,400 – 27,400 = 1 ...
... of payments surplus, equal to the demand for shekels minus the supply of shekels. The demand for shekels at an exchange rate of 0.20 dollars/shekel is 30,000 – 8,000(0.20) = 28,400, and the supply of shekels is 25,000 + 12,000(0.20) = 27,400, so the balance of payments surplus is 28,400 – 27,400 = 1 ...
KC3002 International Finance /International Macroeconomics
... (a) The two countries are using a common currency. (b) The two countries are linked by a direct exchange rate peg. (A’s currency is pegged to B’s.) (c) The two countries are linked by an indirect exchange rate peg. (A’s currency and B’s currency are pegged to C’s.) (d) The two countries are not link ...
... (a) The two countries are using a common currency. (b) The two countries are linked by a direct exchange rate peg. (A’s currency is pegged to B’s.) (c) The two countries are linked by an indirect exchange rate peg. (A’s currency and B’s currency are pegged to C’s.) (d) The two countries are not link ...
Rwanda - COMESA Monetary Institute
... fall, thus helping to reduce inflation directly, insofar as these products are directly used in consumption; (2) If these imports are used as inputs into the production process, lower prices for inputs might, over time, feed through into lower prices for final goods; (3) Exchange rate developments m ...
... fall, thus helping to reduce inflation directly, insofar as these products are directly used in consumption; (2) If these imports are used as inputs into the production process, lower prices for inputs might, over time, feed through into lower prices for final goods; (3) Exchange rate developments m ...
the effectiveness of monetary policy in rwanda
... fall, thus helping to reduce inflation directly, insofar as these products are directly used in consumption; (2) If these imports are used as inputs into the production process, lower prices for inputs might, over time, feed through into lower prices for final goods; (3) Exchange rate developments m ...
... fall, thus helping to reduce inflation directly, insofar as these products are directly used in consumption; (2) If these imports are used as inputs into the production process, lower prices for inputs might, over time, feed through into lower prices for final goods; (3) Exchange rate developments m ...
six possible meanings of "overvaluation": the 1981
... rate is in turn attributed to two causes, corresponding to the two halves ofthe period: first, the sharp tightening of U.S. monetary policy that was first signaled in October 1979 and that ended in mid-1982, and, second, the emergence ofrecord federal budget deficits that were a source of growing co ...
... rate is in turn attributed to two causes, corresponding to the two halves ofthe period: first, the sharp tightening of U.S. monetary policy that was first signaled in October 1979 and that ended in mid-1982, and, second, the emergence ofrecord federal budget deficits that were a source of growing co ...
Coping with crises: is there a “silver bullet”?
... One does not have to subscribe to the Polanyi-like perspective that the domain of political control must march in step with market size to concede that capital inflows can have undesirable welfare consequences in the presence of domestic distortions. Generous capital flows to emerging markets can gr ...
... One does not have to subscribe to the Polanyi-like perspective that the domain of political control must march in step with market size to concede that capital inflows can have undesirable welfare consequences in the presence of domestic distortions. Generous capital flows to emerging markets can gr ...
Monetary Policy in Tonga - USP Electronic Research Repository
... commercial banks. By so doing, there is one to one correspondence effect between, say credit ceiling and commercial loans. On the other hand, when central bank uses indirect instruments, the objective is to change its own balance sheet. For example, if central bank conducts open market sale of its o ...
... commercial banks. By so doing, there is one to one correspondence effect between, say credit ceiling and commercial loans. On the other hand, when central bank uses indirect instruments, the objective is to change its own balance sheet. For example, if central bank conducts open market sale of its o ...
What Is the Equilibrium Exchange Rate?
... decrease in net exports (larger trade deficit). After people can adjust to the new prices, the trade balance may will get better if the MarshallLerner conditions were met. Net Exports ...
... decrease in net exports (larger trade deficit). After people can adjust to the new prices, the trade balance may will get better if the MarshallLerner conditions were met. Net Exports ...
Portfolio Balance and Balance of Payments Sterilization
... "...the central bank in the country with a payments surplus would take measures to sterilize the impact of the payments imbalance on the monetary base, perhaps by offsetting open-market operations. Similarly, the country with the payments deficit would not permit the imbalance to affect its money su ...
... "...the central bank in the country with a payments surplus would take measures to sterilize the impact of the payments imbalance on the monetary base, perhaps by offsetting open-market operations. Similarly, the country with the payments deficit would not permit the imbalance to affect its money su ...
The theory of global imbalances: mainstream economics vs
... globalization. According to structural Keynesian theory there is both a supply- and demand-side dimension to the global imbalance problem. The supply-side reflects the new production paradigm that underlies neoliberal globalization. The demand-side reflects the Keynesian theory of hegemonic currenc ...
... globalization. According to structural Keynesian theory there is both a supply- and demand-side dimension to the global imbalance problem. The supply-side reflects the new production paradigm that underlies neoliberal globalization. The demand-side reflects the Keynesian theory of hegemonic currenc ...