NBER WORKING PAPER SERIES NEGATIVE NOMINAL INTEREST RATES: Willem H. Buiter
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
S0211936_en.pdf
... monetary policies in order to shield their currencies from exchange-rate pressures. Fiscal policy was also contractionary in most instances, as it was directed at maintaining the accumulation of public debt at a sustainable pace. In most cases, real exchange rates were the sole factor stimulating co ...
... monetary policies in order to shield their currencies from exchange-rate pressures. Fiscal policy was also contractionary in most instances, as it was directed at maintaining the accumulation of public debt at a sustainable pace. In most cases, real exchange rates were the sole factor stimulating co ...
Negative Nominal Interest Rates
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
three essays on monetary policy in small open
... as the Central Provident Fund (CPF), plays in sterilising capital in‡ows. Using data from 1988 through to 1997, just prior to the Asian crisis, it is shown that the Monetary Authority of Singapore (MAS) mitigated capital in‡ows associated with an appreciating domestic currency by moving CPF funds be ...
... as the Central Provident Fund (CPF), plays in sterilising capital in‡ows. Using data from 1988 through to 1997, just prior to the Asian crisis, it is shown that the Monetary Authority of Singapore (MAS) mitigated capital in‡ows associated with an appreciating domestic currency by moving CPF funds be ...
Negative Nominal Interest Rates:Three ways to overcome the zero lower bound
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
... physically stamping bank notes are now available as means of identifying currency notes as current on interest due. The third method decouples the numéraire function of currency from its means of payment/medium of exchange function and introduces a variable exchange rate between a unit of the one-pe ...
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... balances at correspondent banks, and after the founding of the Fed, at Federal Reserve Banks); its liabilities consist of deposits, with the difference between assets and liabilities comprising the bank’s equity capital, or net worth. Assume that banks target a low level of default risk on their dep ...
... balances at correspondent banks, and after the founding of the Fed, at Federal Reserve Banks); its liabilities consist of deposits, with the difference between assets and liabilities comprising the bank’s equity capital, or net worth. Assume that banks target a low level of default risk on their dep ...
International Monetary Review
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
the credit-anstalt myth
... authors argue that the financial system’s demand for liquidity emerged in 1931 because their foreign creditors became wary of the stability of the Hungarian currency and not because depositors or creditors started questioning banks’ financial health. The financial system’s increased liquidity needs ...
... authors argue that the financial system’s demand for liquidity emerged in 1931 because their foreign creditors became wary of the stability of the Hungarian currency and not because depositors or creditors started questioning banks’ financial health. The financial system’s increased liquidity needs ...
Zimbabwe: Challenges and Policy Options after Hyperinflation African Department 10/3
... Wider circulation of the rand is prevented by South Africa’s capital account controls (Appendix II–2, Box II–2.1). Currencies other than the U.S. dollar and the rand have limited circulation in Zimbabwe. The multicurrency system has provided significant benefits. In particular, it fostered the re-mo ...
... Wider circulation of the rand is prevented by South Africa’s capital account controls (Appendix II–2, Box II–2.1). Currencies other than the U.S. dollar and the rand have limited circulation in Zimbabwe. The multicurrency system has provided significant benefits. In particular, it fostered the re-mo ...
Monetary Policy Independence under Flexible
... its monetary policy. That’s the United States.”7 Of course, not every comovement of policy rates should be labeled as “spillover.” It is possible that two countries (the United States and a particular EM, say, Colombia) are reacting to a common shock—a large change in the international price of oil, ...
... its monetary policy. That’s the United States.”7 Of course, not every comovement of policy rates should be labeled as “spillover.” It is possible that two countries (the United States and a particular EM, say, Colombia) are reacting to a common shock—a large change in the international price of oil, ...
BALTIC ECONOMIC REFORMS: A Crisis Review of Baltic
... it differently: what has been sound and what has been rotten in the Baltic model for economic development? There are some low-hanging fruits to pick – and there are some myths that easily can be dispelled. Firstly, the Baltic economies overheated; rising property prices were allowed to coalesce into ...
... it differently: what has been sound and what has been rotten in the Baltic model for economic development? There are some low-hanging fruits to pick – and there are some myths that easily can be dispelled. Firstly, the Baltic economies overheated; rising property prices were allowed to coalesce into ...
inflation and exchange rate depreciation: a
... The theory by Mundell and Flemming (1960) , considers three markets: money, assets and goods market under perfect price flexibility in the long run. One implication is that devaluation may lead to further devaluation if fiscal discipline, inflation and B.O.P disequilibria are not well managed. Anoth ...
... The theory by Mundell and Flemming (1960) , considers three markets: money, assets and goods market under perfect price flexibility in the long run. One implication is that devaluation may lead to further devaluation if fiscal discipline, inflation and B.O.P disequilibria are not well managed. Anoth ...
What sets the Gold Price
... The international gold price is purely set by paper gold markets, in other words it is set by nonphysical gold markets. Based on their respective gold market structures, the London OTC gold market and COMEX are both paper gold markets. Supply of and demand for physical gold plays no role in setting ...
... The international gold price is purely set by paper gold markets, in other words it is set by nonphysical gold markets. Based on their respective gold market structures, the London OTC gold market and COMEX are both paper gold markets. Supply of and demand for physical gold plays no role in setting ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... bind. If UIP holds, then the expected returns to holding home assets and foreign assets should be equal. When expected home interest returns rise, the home currency should immediately appreciate (Dornbusch 1976) so that it can subsequently depreciate over the period of high home returns so there is ...
... bind. If UIP holds, then the expected returns to holding home assets and foreign assets should be equal. When expected home interest returns rise, the home currency should immediately appreciate (Dornbusch 1976) so that it can subsequently depreciate over the period of high home returns so there is ...
Asia and Financial Globalization in the Context of the Trilemma
... economies may have adopted international economic policies that allow them to experience better macroeconomic performance. While we still have to wait a few more years to conduct meaningful analysis on the “decoupling” issue, we can investigate whether Asian economies are better-suited to cope with ...
... economies may have adopted international economic policies that allow them to experience better macroeconomic performance. While we still have to wait a few more years to conduct meaningful analysis on the “decoupling” issue, we can investigate whether Asian economies are better-suited to cope with ...
International Monetary Fund Annual Report 1973
... relationships came into existence. These developments were characterized by greater flexibility of exchange rate relationships. This became evident, for example, in the adoption of temporary wider margins for official intervention, in the resort to floating in special circumstances, and in the demon ...
... relationships came into existence. These developments were characterized by greater flexibility of exchange rate relationships. This became evident, for example, in the adoption of temporary wider margins for official intervention, in the resort to floating in special circumstances, and in the demon ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... of risk aversion of the firms that are exporting them. When firms are sufficiently risk averse (loving), relatively more differentiated products will be exported to countries that have low (high) exchange rate volatilities with the exporting country. ...
... of risk aversion of the firms that are exporting them. When firms are sufficiently risk averse (loving), relatively more differentiated products will be exported to countries that have low (high) exchange rate volatilities with the exporting country. ...
effects of expansionary monetary policy
... the innovations in the federal funds rate, money supply, non-borrowed reserves and long-term bond rate. At present (Feb 2010), the U.S. economy is facing a liquidity trap, with the federal funds rate at 0.12 percent. In such a situation, monetary policy cannot be carried out by further lowering the ...
... the innovations in the federal funds rate, money supply, non-borrowed reserves and long-term bond rate. At present (Feb 2010), the U.S. economy is facing a liquidity trap, with the federal funds rate at 0.12 percent. In such a situation, monetary policy cannot be carried out by further lowering the ...
AbootalebiShahrooz1979
... currency financial statements and rejected the current noncurrent method on the grounds that the latter method was based solely on balance sheet classification and so served no theoretically sound and relevant purpose. 4 Official acceptance of the monetary - nonmonetary method was followed by the is ...
... currency financial statements and rejected the current noncurrent method on the grounds that the latter method was based solely on balance sheet classification and so served no theoretically sound and relevant purpose. 4 Official acceptance of the monetary - nonmonetary method was followed by the is ...
Exchange Rate Policies in Arab Countries
... economy. Changes can cause substantial reallocation of resources and production between the tradeable and non-tradeable sectors of the economy. But rarely is the exchange rate seen for what it is: a relative price that, like any other, responds to the laws of supply and demand. Being a price, the ex ...
... economy. Changes can cause substantial reallocation of resources and production between the tradeable and non-tradeable sectors of the economy. But rarely is the exchange rate seen for what it is: a relative price that, like any other, responds to the laws of supply and demand. Being a price, the ex ...
The Effect of Exchange Rates on Statistical Decisions Author(s
... the issues raised by example 1 and its extensions have wide-ranging consequences in philosophy whenever uncertainty is connected with decision making. For instance, the issues affect how the criterion of coherence ðavoiding sure loss when bettingÞ regulates rational degrees of belief ðShimony 1955Þ. ...
... the issues raised by example 1 and its extensions have wide-ranging consequences in philosophy whenever uncertainty is connected with decision making. For instance, the issues affect how the criterion of coherence ðavoiding sure loss when bettingÞ regulates rational degrees of belief ðShimony 1955Þ. ...
External Adjustment in Oil Exporters
... we emphasise government spending, not just the fiscal balance, in order to isolate this policy tool from mechanical revenue/export links driven by oil receipts. Moreover, we distinguish between a relatively broad group of oil exporters and a narrower subset of more oildependent economies and the Gul ...
... we emphasise government spending, not just the fiscal balance, in order to isolate this policy tool from mechanical revenue/export links driven by oil receipts. Moreover, we distinguish between a relatively broad group of oil exporters and a narrower subset of more oildependent economies and the Gul ...
Liberalization of Foreign Exchange Controls: Japan`s Experiences
... export surplus and exchange rate is contradictory. On the one hand, China is anxious about negative effects of export surplus and devalued currency, such as, unwanted capital inflow, commodities inflation and asset bubbles, increasing fiscal cost, financial repression, and exchange rate risk origina ...
... export surplus and exchange rate is contradictory. On the one hand, China is anxious about negative effects of export surplus and devalued currency, such as, unwanted capital inflow, commodities inflation and asset bubbles, increasing fiscal cost, financial repression, and exchange rate risk origina ...
NBER WORKING PAPER SERIES A LONG RUN VIEW Michael D. Bordo
... Eichengreen and Hausmann (1999) to conclude that external borrowing in foreign currency was a major reason for the severity of these financial crises. In several South East Asian countries and Mexico in 1994 and Argentina in 2001/2002 pegged exchange rates provided an implicit guarantee of exchange ...
... Eichengreen and Hausmann (1999) to conclude that external borrowing in foreign currency was a major reason for the severity of these financial crises. In several South East Asian countries and Mexico in 1994 and Argentina in 2001/2002 pegged exchange rates provided an implicit guarantee of exchange ...
Identifying the Relationship Between Trade and Exchange Rate
... greater than the median trade relationship implies that the volatility of the bilateral real exchange rate associated with the intense trading partner is 12 percent smaller than with the median partner. The empirical findings also support the view that real exchange rate volatility only moderately d ...
... greater than the median trade relationship implies that the volatility of the bilateral real exchange rate associated with the intense trading partner is 12 percent smaller than with the median partner. The empirical findings also support the view that real exchange rate volatility only moderately d ...