Article title – tytuł artykułu
... numbers of countries that claimed their right to use their own currency. Without having gold reserves (a lot of these countries were former colonies or territories from the great empires existing before the war) a compromise was required. So, it was accepted the idea that the value of a currency cou ...
... numbers of countries that claimed their right to use their own currency. Without having gold reserves (a lot of these countries were former colonies or territories from the great empires existing before the war) a compromise was required. So, it was accepted the idea that the value of a currency cou ...
Exchange Rates and External Adjustment: Does Financial Globalization Matter? Philip R. Lane
... financing, a country’s residents can purchase foreign assets—for example, in the form of direct investment—while foreign residents purchase domestic financial instruments. 1 ...
... financing, a country’s residents can purchase foreign assets—for example, in the form of direct investment—while foreign residents purchase domestic financial instruments. 1 ...
A Small Open Economy in the Great Depression: the Case of
... matter of fact, regulations protecting individual economic sectors and fixing prices dramatically increased during the crisis. Instead of enabling the downward adjustment, the government sought to cushion the negative effects of an overvalued currency by containing competition. Almost any pressure g ...
... matter of fact, regulations protecting individual economic sectors and fixing prices dramatically increased during the crisis. Instead of enabling the downward adjustment, the government sought to cushion the negative effects of an overvalued currency by containing competition. Almost any pressure g ...
Rolling Back the Strong Yen under a Dollar Reserve Currency Regime
... It was the Bretton Woods system established after World War II that enabled the US to become the reserve currency nation that it is today. Under the Bretton Woods system, the dollar became the only currency convertible at a fixed rate of $35 for an ounce of gold, and a gold exchange standard was est ...
... It was the Bretton Woods system established after World War II that enabled the US to become the reserve currency nation that it is today. Under the Bretton Woods system, the dollar became the only currency convertible at a fixed rate of $35 for an ounce of gold, and a gold exchange standard was est ...
Argentina`s Debt Crisis
... rate of the growth of an economy, solvency is consistent even with a foreign debtto-GDP ratio that grows continuously over time. A similar criterion applies in determining whether the public debt of a government is sustainable or not. Specifically, as long as the discounted value of primary balances ...
... rate of the growth of an economy, solvency is consistent even with a foreign debtto-GDP ratio that grows continuously over time. A similar criterion applies in determining whether the public debt of a government is sustainable or not. Specifically, as long as the discounted value of primary balances ...
Exchange Rates and Foreign Direct Investment
... Written for the Princeton Encyclopedia of the World Economy (Princeton University Press) By Linda S. Goldberg1 Vice President, Federal Reserve Bank of New York ...
... Written for the Princeton Encyclopedia of the World Economy (Princeton University Press) By Linda S. Goldberg1 Vice President, Federal Reserve Bank of New York ...
Chapter Concepts
... nations it does this through: – Promoting exchange stability – Maintaining orderly exchange arrangements – Helping members avoid serious exchange depreciations – Placing reserves at the disposal of member nations who are in financial crisis, subject to safeguards and repayment Chapter 8: Internation ...
... nations it does this through: – Promoting exchange stability – Maintaining orderly exchange arrangements – Helping members avoid serious exchange depreciations – Placing reserves at the disposal of member nations who are in financial crisis, subject to safeguards and repayment Chapter 8: Internation ...
Monetary Policy in Post-Stabilization LICs
... Competing objectives. Suppose the Minister of Finance (and donors) care mostly about increasing spending and the central bank mainly dislikes appreciation. ...
... Competing objectives. Suppose the Minister of Finance (and donors) care mostly about increasing spending and the central bank mainly dislikes appreciation. ...
W. William Woolsey COMMUNICATIONS THE SEARCH FOR MACROECONOMIC STABILITY: COMMENT ON SUMNER
... loans, and raise their deposit interest rates. The consequent contraction in spending would return the price ofthe bundle to its defined price while simultaneously allowing the banks to again charge the market price of gold at their redemption windows. Since the difference between gold’s market pric ...
... loans, and raise their deposit interest rates. The consequent contraction in spending would return the price ofthe bundle to its defined price while simultaneously allowing the banks to again charge the market price of gold at their redemption windows. Since the difference between gold’s market pric ...
FRBSF E L CONOMIC ETTER
... not the capital controls. In 1998, as capital flowed out of East Asia, uncertainty about the stability of the Malaysian currency (the ringgit) and the economic outlook generated speculation against the ringgit. As noted earlier, the openness of the capital account limited Malaysia’s (and other East ...
... not the capital controls. In 1998, as capital flowed out of East Asia, uncertainty about the stability of the Malaysian currency (the ringgit) and the economic outlook generated speculation against the ringgit. As noted earlier, the openness of the capital account limited Malaysia’s (and other East ...
Chapter 2:
... equated to the international law of one price, and is defined as a condition whereby in the absence of transportation costs, tax differentials or trade restrictions, the price of any two internationally traded and identical goods or services must be the same once they are adjusted by the value of th ...
... equated to the international law of one price, and is defined as a condition whereby in the absence of transportation costs, tax differentials or trade restrictions, the price of any two internationally traded and identical goods or services must be the same once they are adjusted by the value of th ...
Free: 103.75 KB
... stronger the case for fixed exchange rates becomes. Another approach to the choice of exchange rate regime focuses on the effects of random disturbances on the domestic economy. The optimal regime in this framework is the one that stabilizes macroeconomic performance, that is, minimizes the fluctuat ...
... stronger the case for fixed exchange rates becomes. Another approach to the choice of exchange rate regime focuses on the effects of random disturbances on the domestic economy. The optimal regime in this framework is the one that stabilizes macroeconomic performance, that is, minimizes the fluctuat ...
The Gold Standard, the Euro, and the Debt Crisis
... limits approximating their respective gold points without the support of exchange restrictions, import quotas, or related controls.8 The authorities of the participating countries maintained these fixed prices by being willing to buy or sell gold on demand at that fixed price. The classical gold sta ...
... limits approximating their respective gold points without the support of exchange restrictions, import quotas, or related controls.8 The authorities of the participating countries maintained these fixed prices by being willing to buy or sell gold on demand at that fixed price. The classical gold sta ...
Leif H. Olsen Is MONETARISM DEAD?
... Actually, the Fed’s 1979 announcement said nothing about monetarism. The Federal Open Market Committee felt driven to place primary emphasis on controlling bank reserves because, as the FOMC minutes state: “In the present environment of rapid inflation, estimates of the relationship among interest r ...
... Actually, the Fed’s 1979 announcement said nothing about monetarism. The Federal Open Market Committee felt driven to place primary emphasis on controlling bank reserves because, as the FOMC minutes state: “In the present environment of rapid inflation, estimates of the relationship among interest r ...
Inflation Targeting—The UK Experience
... view, it is better to allow the exchange rate to float and to address monetary policy directly to domestic objectives. Many adherents of that view also believe that low inflation can be expected to lead to exchange rate stability, or at least to minimal exchange rate instability. The United Kingdom ...
... view, it is better to allow the exchange rate to float and to address monetary policy directly to domestic objectives. Many adherents of that view also believe that low inflation can be expected to lead to exchange rate stability, or at least to minimal exchange rate instability. The United Kingdom ...
March - sibstc
... War I. Under this system, the parities of currencies were fixed in terms of gold. Purchasing power parity After abandonment of Gold standard, the exchange rates were determined on the basis of purchasing power parity (PPP) theory which was propounded by a Swedish economist Professor Gustav Cassel. T ...
... War I. Under this system, the parities of currencies were fixed in terms of gold. Purchasing power parity After abandonment of Gold standard, the exchange rates were determined on the basis of purchasing power parity (PPP) theory which was propounded by a Swedish economist Professor Gustav Cassel. T ...
Balance of Payments Analysis
... paid to foreign holders, all of which gets booked in the sub account called investment income. A persistently positive capital account will automatically drive the current account into a deficit beyond the trade of goods. While the current account deficit may grow slowly at the beginning of a prolon ...
... paid to foreign holders, all of which gets booked in the sub account called investment income. A persistently positive capital account will automatically drive the current account into a deficit beyond the trade of goods. While the current account deficit may grow slowly at the beginning of a prolon ...
the suitability of gold as a high quality liquid asset
... even relatively small allocations to gold, ranging from 2.6% to 9.5% can have a positive impact on the long-term performance of a portfolio. Figure 4 illustrates that the correlation between UK equities and gold since January 1987 during periods when UK equities dropped by more than two standard dev ...
... even relatively small allocations to gold, ranging from 2.6% to 9.5% can have a positive impact on the long-term performance of a portfolio. Figure 4 illustrates that the correlation between UK equities and gold since January 1987 during periods when UK equities dropped by more than two standard dev ...
Chapter 10 - University of Alberta
... country’s real and financial assets are more attractive for investment. • The demand for domestic currency increases and the exchange rate appreciates (enom rises). ...
... country’s real and financial assets are more attractive for investment. • The demand for domestic currency increases and the exchange rate appreciates (enom rises). ...
Monetary Policy in Vietnam: Alternatives to Inflation Targeting
... and the composition of output takes place through its influence, both direct and indirect, on key macroeconomic prices such as the domestic interest rate, the relative price of traded to non-traded goods, the relative cost of capital and labor, and the import-export price ratio. 9 The real exchange ...
... and the composition of output takes place through its influence, both direct and indirect, on key macroeconomic prices such as the domestic interest rate, the relative price of traded to non-traded goods, the relative cost of capital and labor, and the import-export price ratio. 9 The real exchange ...
Mankiw 6e PowerPoints
... will default on their loan repayments because of political or economic turmoil. Lenders require a higher interest rate to compensate them for this risk. expected exchange rate changes: If a country’s exchange rate is expected to fall, then its borrowers must pay a higher interest rate to compensat ...
... will default on their loan repayments because of political or economic turmoil. Lenders require a higher interest rate to compensate them for this risk. expected exchange rate changes: If a country’s exchange rate is expected to fall, then its borrowers must pay a higher interest rate to compensat ...
I F M What Is the
... 30,000 yen each. The Japanese dealer will not accept payment in Danish kroner, for which he has no immediate use: he cannot pay his suppliers or employees in kroner or even buy his lunch at the local noodle shop using Danish money. He wants yen. The Danish importer must therefore have enough kroner ...
... 30,000 yen each. The Japanese dealer will not accept payment in Danish kroner, for which he has no immediate use: he cannot pay his suppliers or employees in kroner or even buy his lunch at the local noodle shop using Danish money. He wants yen. The Danish importer must therefore have enough kroner ...
overshooting exchange rates
... stocks of domestic and foreign money are willingly held, then the country with a trade surplus will be accumulating foreign currency. As holdings of foreign money increase relative to domestic money, then the foreign currency will depreciate. Copyright © 2010 Pearson Addison-Wesley. All rights reser ...
... stocks of domestic and foreign money are willingly held, then the country with a trade surplus will be accumulating foreign currency. As holdings of foreign money increase relative to domestic money, then the foreign currency will depreciate. Copyright © 2010 Pearson Addison-Wesley. All rights reser ...
The Renminbi`s Dollar Peg at the Crossroads
... the Asian crisis period starting in 1997. For some time now the situation has been reversed, with strong revaluation pressures, speculative capital inflows, and gathering inflationary momentum in the economy. The ability to resist speculative pressures comes from the maintenance of restrictions on p ...
... the Asian crisis period starting in 1997. For some time now the situation has been reversed, with strong revaluation pressures, speculative capital inflows, and gathering inflationary momentum in the economy. The ability to resist speculative pressures comes from the maintenance of restrictions on p ...