Issues on the choice of Exchange Rate Regimes1 Ashwin Moheeput
... discretionary policy instrument to meet domestic objectives. For economies whose domestic interest rates are not tightly linked to world interest rates because of capital account restrictions, monetary policy is partially potent to influence output. Nonetheless, currency boards forego this advantage ...
... discretionary policy instrument to meet domestic objectives. For economies whose domestic interest rates are not tightly linked to world interest rates because of capital account restrictions, monetary policy is partially potent to influence output. Nonetheless, currency boards forego this advantage ...
The new currency boards and discretion: empirical
... banks are required to hold a portion of their reserves in high-liquid US securities (Banco Central de la Republica Argentina, 2000). This mechanism leaves room for Central Bank to manipulate of reserve money and money supply through changes in the level of minimum required reserves and through the r ...
... banks are required to hold a portion of their reserves in high-liquid US securities (Banco Central de la Republica Argentina, 2000). This mechanism leaves room for Central Bank to manipulate of reserve money and money supply through changes in the level of minimum required reserves and through the r ...
The New Monetary Economics Revisited David Cronin
... or a bundle of commodities, not used to settle payments. A state of monetary separation would then exist with the medium of account (the medium in units of which prices are expressed) and the medium of exchange differing from one another. More than one medium of exchange could operate within the eco ...
... or a bundle of commodities, not used to settle payments. A state of monetary separation would then exist with the medium of account (the medium in units of which prices are expressed) and the medium of exchange differing from one another. More than one medium of exchange could operate within the eco ...
The Capital Account and Pakistani Rupee Convertibility
... Further refinements to the capital account and foreign exchange regime continued in the succeeding years, culminating in early 1998, when banks were allowed to quote their own currency conversion rates within the buying and selling bands fixed by the State Bank of Pakistan (SBP). However, the proces ...
... Further refinements to the capital account and foreign exchange regime continued in the succeeding years, culminating in early 1998, when banks were allowed to quote their own currency conversion rates within the buying and selling bands fixed by the State Bank of Pakistan (SBP). However, the proces ...
Special drawing rights, the dollar, and the institutionalist approach to
... increases, attracting more investors in a virtuous circle. The institutionalist account of how institutions can create liquid markets, expanding a currency’s international status, is illustrated by the Federal Reserve’s efforts to promote the dollar trade acceptance market, as described by Eichengre ...
... increases, attracting more investors in a virtuous circle. The institutionalist account of how institutions can create liquid markets, expanding a currency’s international status, is illustrated by the Federal Reserve’s efforts to promote the dollar trade acceptance market, as described by Eichengre ...
european monetary union, euro and impacts of euro on trnc
... On the other hand if a member nation of EMU is hit by a shock that does not affect the rest members in the same way, then the nation will fight the shock with itself alone, and the member nation will not have a chance to set its interest rates. For example, if there is a fall in the demand of some p ...
... On the other hand if a member nation of EMU is hit by a shock that does not affect the rest members in the same way, then the nation will fight the shock with itself alone, and the member nation will not have a chance to set its interest rates. For example, if there is a fall in the demand of some p ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... The choice of an optimal exchange rate regime is one of the major unresolved questions of international macroeconomics. In the most major currency crises, intermediate regimes have been most popular. Looking at the financial market integration , hard pegs and free float are the only compatible regim ...
... The choice of an optimal exchange rate regime is one of the major unresolved questions of international macroeconomics. In the most major currency crises, intermediate regimes have been most popular. Looking at the financial market integration , hard pegs and free float are the only compatible regim ...
introduction - FreePlace.Org
... depreciation or an improvement in the exchange or whether is income is nominal or real the layman do not know. But this complementary problems so to say of naira exchange rate depreciation and inflation has been a thought of obesity in the hearts of Nigerians past and present governments and many p ...
... depreciation or an improvement in the exchange or whether is income is nominal or real the layman do not know. But this complementary problems so to say of naira exchange rate depreciation and inflation has been a thought of obesity in the hearts of Nigerians past and present governments and many p ...
The euro as an international currency
... Another strand of the literature focuses on network externalities. Matsuyama et al. (1992) consider a random matching model with two countries. Within each period, a resident of the home country has a probability n to meet another resident of the home country and (1-n) to meet a resident of the for ...
... Another strand of the literature focuses on network externalities. Matsuyama et al. (1992) consider a random matching model with two countries. Within each period, a resident of the home country has a probability n to meet another resident of the home country and (1-n) to meet a resident of the for ...
An Analysis of the Impact of the Online –Virtual Currency
... capital management. Monetary aggregates in the whole society is made up of current cash and deposits. The formula is M= C+D (2). Because commercial banks have to hand in required deposit reserves to central bank, Deposits in the commercial banks are constrained by Central Bank and there exists a qua ...
... capital management. Monetary aggregates in the whole society is made up of current cash and deposits. The formula is M= C+D (2). Because commercial banks have to hand in required deposit reserves to central bank, Deposits in the commercial banks are constrained by Central Bank and there exists a qua ...
chapt 13 Exchange rate
... We have been analyzing the open economy under a flexible exchange rate regime, where the exchange rate is determined by demand and supply forces. Under a fixed exchange rate regime, a country (or both countries) officially set a rate of exchange between currencies. How can this be done? ...
... We have been analyzing the open economy under a flexible exchange rate regime, where the exchange rate is determined by demand and supply forces. Under a fixed exchange rate regime, a country (or both countries) officially set a rate of exchange between currencies. How can this be done? ...
Modelling Monetary Transmission and Policy in China
... PBC as the central bank, as generally perceived internationally, was not legally reinforced until 1995, when the Central Bank Law was enacted. The law empowers the PBC to formulate and implement monetary policies; issue and manage the domestic currency; approve the establishment of and oversee the ...
... PBC as the central bank, as generally perceived internationally, was not legally reinforced until 1995, when the Central Bank Law was enacted. The law empowers the PBC to formulate and implement monetary policies; issue and manage the domestic currency; approve the establishment of and oversee the ...
RMB Internationalization: An Empirical and Policy Analysis
... for a currency to be stored. The same is as the variable real interest rate. A puzzling variable is current account balance, which is negative, suggesting the currency issuing country with a worse trading balance has more share of reserve holding. Though we can not explain it now, this accorded with ...
... for a currency to be stored. The same is as the variable real interest rate. A puzzling variable is current account balance, which is negative, suggesting the currency issuing country with a worse trading balance has more share of reserve holding. Though we can not explain it now, this accorded with ...
The Analysis of Gold Prices and the Sustainable Development
... level since 1979. During this period the world mineral gold output grows steady but the demand for gold shrinks from 4225 tons in 1997 to 3902 tons in 2001. In addition, with the acceleration of the process of economic globalization, the increasing popularity of the electronization of huge capital f ...
... level since 1979. During this period the world mineral gold output grows steady but the demand for gold shrinks from 4225 tons in 1997 to 3902 tons in 2001. In addition, with the acceleration of the process of economic globalization, the increasing popularity of the electronization of huge capital f ...
NBER WORKING PAPER SERIES THE MACROECONOMICS OF THE GREAT Ben S. Bernanke
... other, with monetarists stressing the monetary sources of the latter stages of the Great Contraction (from late 1930 or early 1931 until 1933), and anti-monetarists emphasizing the likely importance of non—monetary factors ...
... other, with monetarists stressing the monetary sources of the latter stages of the Great Contraction (from late 1930 or early 1931 until 1933), and anti-monetarists emphasizing the likely importance of non—monetary factors ...
Alternative Interpretations of a Stateless Currency
... think-tank based in Rome (Italy). a/simmetrie undertakes applied research and policy analysis on economic asymmetries, both in their economic nature, and in their political and juridical implications; provides a forum for the advocacy of policies leading to a more equitable and sustainable growth; a ...
... think-tank based in Rome (Italy). a/simmetrie undertakes applied research and policy analysis on economic asymmetries, both in their economic nature, and in their political and juridical implications; provides a forum for the advocacy of policies leading to a more equitable and sustainable growth; a ...
hohenheimer diskussionsbeiträge
... severity of the crises could not be explained by first generation models. In the second generation models of currency crises attention therefore shifted to how changes in expectations cause crises. The key point is that these models question the view of a single correct equilibrium. Instead, differe ...
... severity of the crises could not be explained by first generation models. In the second generation models of currency crises attention therefore shifted to how changes in expectations cause crises. The key point is that these models question the view of a single correct equilibrium. Instead, differe ...
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 ...
The Academy of Economic Studies Doctoral School of Finance
... The inclusion of net export has been found to help resolve the ‘price puzzle’ in VARs, that is, the finding that the price level tends to increase in response to a contractionary monetary policy shock. ...
... The inclusion of net export has been found to help resolve the ‘price puzzle’ in VARs, that is, the finding that the price level tends to increase in response to a contractionary monetary policy shock. ...
A Model of Currency Exchange Rates
... If the loan encumbers only £0.8 million, the £0.2 million difference has the character of a gift, and should therefore be treated as such. The posttransaction foreign holdings will be $8 million and £4.2 million, giving rise to the exchange rate of about $1.9 to £1. The dollar rises in value against ...
... If the loan encumbers only £0.8 million, the £0.2 million difference has the character of a gift, and should therefore be treated as such. The posttransaction foreign holdings will be $8 million and £4.2 million, giving rise to the exchange rate of about $1.9 to £1. The dollar rises in value against ...
Expanding Beyond Borders: The Yen and the Yuan
... exchange rate ushered in inappropriate exchange rate and monetary policies, and a long period of stagnation. The sharp appreciation of the yen after Plaza is seen as a compromise that was forced on Japan. It damaged the country’s export-oriented economy 1 and dragged it into a deep recession and res ...
... exchange rate ushered in inappropriate exchange rate and monetary policies, and a long period of stagnation. The sharp appreciation of the yen after Plaza is seen as a compromise that was forced on Japan. It damaged the country’s export-oriented economy 1 and dragged it into a deep recession and res ...
People`s Bank of China Boosts the Yuan
... Donald Trump as the U.S. president may put additional devaluation pressure on the CNY through its effects on expectations of U.S. trade policies. To defend the CNY, the Chinese authorities have resorted to the traditional tactics—imposing capital controls and tightening monetary conditions—used by c ...
... Donald Trump as the U.S. president may put additional devaluation pressure on the CNY through its effects on expectations of U.S. trade policies. To defend the CNY, the Chinese authorities have resorted to the traditional tactics—imposing capital controls and tightening monetary conditions—used by c ...
Week 11
... We need to convert imports paid in foreign currency into national currency Exports towards other countries are also affected by the value of the currency ...
... We need to convert imports paid in foreign currency into national currency Exports towards other countries are also affected by the value of the currency ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... to slow inflation in order to avoid the resulting distortions & deterioration of assets values. In short, monetary policy, to a great extent, is the management of expectations. It rests on the relationship between the rate of interest in an economy i.e. the price at which money can be borrowed or & ...
... to slow inflation in order to avoid the resulting distortions & deterioration of assets values. In short, monetary policy, to a great extent, is the management of expectations. It rests on the relationship between the rate of interest in an economy i.e. the price at which money can be borrowed or & ...
Presentation, Powerpoint 665Kb - The Cambridge Trust for New
... – that foreign partners will be able to generate the (higher) supply of these goods – that there is a foreign supply of these goods Option b may lead to higher prices of goods exported by the surplus country. If foreign partners do not increase the production of these goods (substituting imports by ...
... – that foreign partners will be able to generate the (higher) supply of these goods – that there is a foreign supply of these goods Option b may lead to higher prices of goods exported by the surplus country. If foreign partners do not increase the production of these goods (substituting imports by ...