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... time. A huge fraction of trade is denominated in a foreign currency, typically one of the main currencies of the industrialized world in particular US dollar (Auboin, 2012). While this currency might have been adopted originally for its stability and reliability, it might still be subject to severe ...
... time. A huge fraction of trade is denominated in a foreign currency, typically one of the main currencies of the industrialized world in particular US dollar (Auboin, 2012). While this currency might have been adopted originally for its stability and reliability, it might still be subject to severe ...
Management & Engineering Internationalization Based on SVAR Model
... Currency has three functions, i.e. measure of value, medium of exchange and storage of value, on all of which a currency’s internationalization is depending as well. From the aspect of measure of value, a currency’s internationalization needs its value to be stable and denomination to be sizable; fr ...
... Currency has three functions, i.e. measure of value, medium of exchange and storage of value, on all of which a currency’s internationalization is depending as well. From the aspect of measure of value, a currency’s internationalization needs its value to be stable and denomination to be sizable; fr ...
30 years ago, the topic of Macroeconomics or Monetary Economics
... Although most developing countries in the 1990s brought under control the chronic pattern of runaway budget deficits, money creation, and inflation, that they had experienced in the preceding two decades, most are still subject to monetary and fiscal policy that is procyclical rather than countercyc ...
... Although most developing countries in the 1990s brought under control the chronic pattern of runaway budget deficits, money creation, and inflation, that they had experienced in the preceding two decades, most are still subject to monetary and fiscal policy that is procyclical rather than countercyc ...
A Three-State Markov-Modulated Switching Model for Exchange Rates
... this as state 1 is expected to last for just one month while states 2 and 3 have duration of approximately fifteen and eleven months, respectively. A possible explanation for this is that the Nigerian monetary authorities would usually peg naira against dollar in the face of consistent depreciation ...
... this as state 1 is expected to last for just one month while states 2 and 3 have duration of approximately fifteen and eleven months, respectively. A possible explanation for this is that the Nigerian monetary authorities would usually peg naira against dollar in the face of consistent depreciation ...
The Devaluation of the Birr - Solidarity Movement for a New Ethiopia
... increase the volatility in the exchange rate as well. Fluctuating prices of domestic goods (caused by devaluing the birr and which will be accompanied by increased price of demand) will increase uncertainty, with their potential to decrease production. The measure will adversely affect the business ...
... increase the volatility in the exchange rate as well. Fluctuating prices of domestic goods (caused by devaluing the birr and which will be accompanied by increased price of demand) will increase uncertainty, with their potential to decrease production. The measure will adversely affect the business ...
Digital currencies - Bank for International Settlements
... transactions (eg for e-commerce, cross-border transactions and person-to-person payments), and possibly make them faster and less expensive for end users such as consumers and merchants. However, the implications for payment system efficiency are still to be determined, and potential risks may arise ...
... transactions (eg for e-commerce, cross-border transactions and person-to-person payments), and possibly make them faster and less expensive for end users such as consumers and merchants. However, the implications for payment system efficiency are still to be determined, and potential risks may arise ...
The Global Economic Environment
... other than their home currency, the total home-country receipts will change depending on the exchange rate at the time payment is made. Because exchange rates can give a price advantage to producers, governments seek to manage exchange rates. This is done by using reserves to buy or sell foreign cur ...
... other than their home currency, the total home-country receipts will change depending on the exchange rate at the time payment is made. Because exchange rates can give a price advantage to producers, governments seek to manage exchange rates. This is done by using reserves to buy or sell foreign cur ...
Exchange Rate
... President William Dudley said the case for tightening monetary policy “has become a lot more compelling.” In addition, Federal Reserve Board Governor Lael Brainard, a known dove at the US central bank, said in an address at Harvard University that “after being an important constraint in the past few ...
... President William Dudley said the case for tightening monetary policy “has become a lot more compelling.” In addition, Federal Reserve Board Governor Lael Brainard, a known dove at the US central bank, said in an address at Harvard University that “after being an important constraint in the past few ...
Current Research Journal of Economic Theory 4(4): 120-131, 2012 ISSN: 2042-485X
... Multivariate Structural VAR Christopher N. Ekong and Kenneth U. Onye Department of Economics, Faculty of Social Sciences, University of Uyo, Nigeria Abstract: This study investigates the feasibility of proceeding with the proposed common currency in West Africa. By relying on the multivariate Struct ...
... Multivariate Structural VAR Christopher N. Ekong and Kenneth U. Onye Department of Economics, Faculty of Social Sciences, University of Uyo, Nigeria Abstract: This study investigates the feasibility of proceeding with the proposed common currency in West Africa. By relying on the multivariate Struct ...
1 Financial Instability, Reserves, and Central Bank Swap Lines in
... Figure 2a addresses the first of these questions with a simple scatter of percentage depreciation of the currency against the U.S. dollar in the year 2008 [up to 12/15 at time of writing] versus the country’s reserves/M2 ratio at the end of 2007. The sample is restricted to just the emerging countr ...
... Figure 2a addresses the first of these questions with a simple scatter of percentage depreciation of the currency against the U.S. dollar in the year 2008 [up to 12/15 at time of writing] versus the country’s reserves/M2 ratio at the end of 2007. The sample is restricted to just the emerging countr ...
When Capital Inflows Come to a Sudden Stop: Consequences and
... nature,” i.e., objective variables, like terms of trade, profit, demand, etc. A bank loan, for example, is typically serviced by a series of fixed installments unless the borrower goes bankrupt. To illustrate the Fisherian channel, we will assume that all loans are made at a fixed predetermined inte ...
... nature,” i.e., objective variables, like terms of trade, profit, demand, etc. A bank loan, for example, is typically serviced by a series of fixed installments unless the borrower goes bankrupt. To illustrate the Fisherian channel, we will assume that all loans are made at a fixed predetermined inte ...
Monetary Policy in Emerging Markets
... “financial repression” under which the only financial intermediaries were uncompetitive banks and the government itself, which kept nominal interest rates artificially low (often well below the inflation rate) and allocated capital administratively rather than by market forces.3 Capital inflows and ...
... “financial repression” under which the only financial intermediaries were uncompetitive banks and the government itself, which kept nominal interest rates artificially low (often well below the inflation rate) and allocated capital administratively rather than by market forces.3 Capital inflows and ...
International Monetary Fund The History of the IMF The Present IMF
... The International Monetary Fund was founded in 1945 as the agency charged with overseeing the so-called Bretton Woods system (named after the town in New Hampshire where the summit establishing it was held), as well as promoting postwar global economic growth more generally. Common economic wisdom h ...
... The International Monetary Fund was founded in 1945 as the agency charged with overseeing the so-called Bretton Woods system (named after the town in New Hampshire where the summit establishing it was held), as well as promoting postwar global economic growth more generally. Common economic wisdom h ...
Tilburg University Stability of Monetary Unions
... world in which both countries are exposed to asymmetric demand shocks. In both countries, nominal wages are sticky and labor mobility is low. In the presence of asymmetric shocks, the countries can adjust the exchange rate to alter the relative prices and mitigate adverse effects of the shocks. Howe ...
... world in which both countries are exposed to asymmetric demand shocks. In both countries, nominal wages are sticky and labor mobility is low. In the presence of asymmetric shocks, the countries can adjust the exchange rate to alter the relative prices and mitigate adverse effects of the shocks. Howe ...
NBER WORKING PAPER SERIES SELF-VALIDATING OPTIMUM CURRENCY AREAS Giancarlo Corsetti Paolo Pesenti
... exporters could in principle choose any intermediate level of pass-through, in equilibrium pass-through is either 100 percent or zero as producers optimally choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in whi ...
... exporters could in principle choose any intermediate level of pass-through, in equilibrium pass-through is either 100 percent or zero as producers optimally choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in whi ...
THE IMF Lecture 6 LIUC 2010 1
... of currencies produced a collapse of world trade, which only worsened the problems in the world economy. Two economists, White (USA) and Keynes (GB) put forward proposals in the early 1940s for an international institution that would foster international monetary cooperation after the war. Negotia ...
... of currencies produced a collapse of world trade, which only worsened the problems in the world economy. Two economists, White (USA) and Keynes (GB) put forward proposals in the early 1940s for an international institution that would foster international monetary cooperation after the war. Negotia ...
Chapter 16: Foreign Exchange Derivative Markets
... By 1971 the U.S. dollar was clearly overvalued. That is, its value was maintained only by central bank intervention. In 1971, an agreement among all major countries (known as the Smithsonian Agreement) allowed for devaluation of the dollar. In addition, the Smithsonian Agreement called for a widenin ...
... By 1971 the U.S. dollar was clearly overvalued. That is, its value was maintained only by central bank intervention. In 1971, an agreement among all major countries (known as the Smithsonian Agreement) allowed for devaluation of the dollar. In addition, the Smithsonian Agreement called for a widenin ...
euro area and member states
... benefits of the single currency more widely in the European Union. All European Union Member States are part of Economic and Monetary Union (EMU) and coordinate their economic policy-making to support the economic aims of the EU. However, a number of Member States have taken a step further by replac ...
... benefits of the single currency more widely in the European Union. All European Union Member States are part of Economic and Monetary Union (EMU) and coordinate their economic policy-making to support the economic aims of the EU. However, a number of Member States have taken a step further by replac ...
Financial Reform in Australia and China
... flows (Yu 2013). The deterioration in the quality of banking sector assets since China’s policy stimulus during the global financial crisis, rising corporate and local government debt and the expansion of off-balance sheet activities by banks are ...
... flows (Yu 2013). The deterioration in the quality of banking sector assets since China’s policy stimulus during the global financial crisis, rising corporate and local government debt and the expansion of off-balance sheet activities by banks are ...
Chapter 15 Exchange-Rate Systems and currency crises
... caused by • A redefinition of a par value • Changes in an exchange rate • Changes in the supply of or demand for foreign exchange © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a ...
... caused by • A redefinition of a par value • Changes in an exchange rate • Changes in the supply of or demand for foreign exchange © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a ...