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The Collapse of the Argentine Economy
The Collapse of the Argentine Economy

... viewed the Argentine peg as unsustainable (Anderson, 1999). Historically, larger economies have failed to maintain fixed exchange rates for more than a decade. Economists cite the loss of monetary independence, which reduces the ability of a country to respond to external shocks, as the primary draw ...
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... 1. Real versus nominal exchange rates 2. Exchange rate policy and welfare 3. The scourge of overvaluation 4. From exchange rate policy to economic growth 5. Exchange rate regimes  To float or not to float ...
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... The Mexican Experience The mechanisms adopted allowed for a fast buildup of international reserves and promoted orderly conditions in the foreign exchange market in face of different shocks. This contributed to the development of a deep foreign exchange market. International Reserves and Foreign Ex ...
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... 3.1.1Free liquidity of production elements in East Asian area is gradually enhanced The more easily Capital and labor flow, the more likely these countries compose optimum currency area. The elimination of tariff barriers and free movement of commodities, services, labour and capital within the comm ...
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... Nominal exchange rate is the value of the U.S. dollar expressed in units of foreign currency per U.S. dollar. The real exchange rate is the relative price of foreignproduced goods and services. It is a measure of the quantity of real GDP of other countries that we get for a unit of U.S. real GDP. ...
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... securities out of their portfolio or by issuing domestic currency securities in their own name (for example, central bank bills). The result is to drain the cash injected into the economy by the reserve purchase, leaving the monetary base unchanged. Table 2 provides a simple example of how sterilize ...
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... In competitive markets free of transportation costs and trade barriers, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency. Example: US/French exchange rate: $1 = FFr 5. A jacket selling for $50 in New York should r ...
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Exchange Rate Regimes and Policies
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... increases trade and vice-versa. Kilic, Bayar and Arica in their 2014 study of the effects of European Economic and Monetary Union on inflows of foreign direct investments to the Eurozone concluded that the Union contributes to the inflow of foreign direct investment into the Eurozone by reducing the ...
Dollarization Versus a National Currency
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... Palestinian State would issue its own currency with presumably the Palestinian Monetary Authority (PMA) as the implementer of an independent monetary policy or whether an externally issued currency would serve as the official legal tender for economic transactions. The latter option would be a de fa ...
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... not without their fears and fictions, and to this day full monetary union seems distant. By integrating, it is hoped the countries will have political, economic, and social progress without restrictions on the movement of goods, services, capital, and people. The countries are expected to be strengt ...
Changing views on how best to conduct monetary
Changing views on how best to conduct monetary

... There are many aspects to this, but perhaps the most crucial is the empirical framework. All monetary policy decisions must be based on some idea of how decisions will affect the real world. In short, policymakers must conduct their policy within the framework of a model. This is not a statement tha ...
Zuzana Kucerova
Zuzana Kucerova

... might work effectively enough. But if regions cut across national boundaries or if countries are multiregional, then the argument for feasible exchange rates is only valid if currencies are reorganized on a regional basis.“ ...
open economy
open economy

... transaction is an exchange. When a seller country transfers a good or service to a buyer country, the buyer country gives up some asset to pay for this good or service. The value of that asset equals the value of the good or service sold. When we add everything up, the net value of goods and service ...
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Bretton Woods system

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australasia and Japan in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to gold and the ability of the IMF to bridge temporary imbalances of payments. Also, there was a need to address the lack of cooperation among other countries and to prevent competitive devaluation of the currencies as well.Preparing to rebuild the international economic system while World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. The delegates deliberated during 1–22 July 1944, and signed the Bretton Woods agreement on its final day. Setting up a system of rules, institutions, and procedures to regulate the international monetary system, these accords established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. The United States, which controlled two thirds of the world's gold, insisted that the Bretton Woods system rest on both gold and the US dollar. Soviet representatives attended the conference but later declined to ratify the final agreements, charging that the institutions they had created were ""branches of Wall Street."" These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.On 15 August 1971, the United States unilaterally terminated convertibility of the US dollar to gold, effectively bringing the Bretton Woods system to an end and rendering the dollar a fiat currency. This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as the pound sterling, for example), also became free-floating.
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