Welfare Costs of Inflation and the Circulation of US Currency Abroad
... rather than domestic residents, which implies transfers of real resources from abroad. Thus, the bene…ts in terms of minor “shoe-leather costs” for domestic agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real a ...
... rather than domestic residents, which implies transfers of real resources from abroad. Thus, the bene…ts in terms of minor “shoe-leather costs” for domestic agents from reducing in‡ation must be weighed against the welfare losses associated with the lower transfer of foreign resources and the real a ...
Quantifying Informational Linkages in a Global Model of Currency
... Thus, the GVAR model enjoys a number of methodological advantages relative to the approaches that have adopted in the existing literature. In particular, it allows the modeller to ...
... Thus, the GVAR model enjoys a number of methodological advantages relative to the approaches that have adopted in the existing literature. In particular, it allows the modeller to ...
3AECO – 6 Exchange rates - Economics Teachers` Association of
... soft $A added to inflationary and interest rate pressures, “it is very much a positive for our exporting sector.” This view was echoed elsewhere. “The low $A is not bad - in fact, a sustained period of undervaluation might be just what is required to turn around the chronic deficit on the ...
... soft $A added to inflationary and interest rate pressures, “it is very much a positive for our exporting sector.” This view was echoed elsewhere. “The low $A is not bad - in fact, a sustained period of undervaluation might be just what is required to turn around the chronic deficit on the ...
A Long-Term Strategy and a Short
... The alternative of waiting for a time of balance-of-payments deficit often turns out to mean exiting the peg under strong downward speculative pressure, with the result that confidence is undermined and the national balance sheet is weak.16 These points are drawn largely from the experience of emerg ...
... The alternative of waiting for a time of balance-of-payments deficit often turns out to mean exiting the peg under strong downward speculative pressure, with the result that confidence is undermined and the national balance sheet is weak.16 These points are drawn largely from the experience of emerg ...
Special drawing rights, the dollar, and the institutionalist approach to
... ($10,057,401,900,000) (Board of Governors of the Federal Reserve System, 2011).2 Admittedly, this money was lent over three years and not simultaneously, and it was all paid back with interest. But the total size of the swap lines, amounting to $10 trillion worth of transactions, indicates the major ...
... ($10,057,401,900,000) (Board of Governors of the Federal Reserve System, 2011).2 Admittedly, this money was lent over three years and not simultaneously, and it was all paid back with interest. But the total size of the swap lines, amounting to $10 trillion worth of transactions, indicates the major ...
MS Word - of Planning Commission
... normal exchange rates requires that the major trading countries accept the fixed nominal exchange rates as parametric, and adjust their domestic economic policies to ensure external account viability at these rates. This requires a substantial sacrifice of domestic policy objectives to the requireme ...
... normal exchange rates requires that the major trading countries accept the fixed nominal exchange rates as parametric, and adjust their domestic economic policies to ensure external account viability at these rates. This requires a substantial sacrifice of domestic policy objectives to the requireme ...
Corporate Leverage and Currency Crises - S-WoPEc
... opportunities are feasible and the investments will always take place, and hence there is no need for currency depreciation. However, in this model we show that exporting …rms have an incentive to …nance their risky projects with debt instead of equity, even if equity …nancing is readily available t ...
... opportunities are feasible and the investments will always take place, and hence there is no need for currency depreciation. However, in this model we show that exporting …rms have an incentive to …nance their risky projects with debt instead of equity, even if equity …nancing is readily available t ...
CHAPTER 17 MACROECONOMIC POLICY IN AN OPEN ECONOMY
... balance for the nation is that monetary or fiscal policies aimed at the domestic sector also have impacts on: a. Trade flows only b. Capital flows only c. both trade flows and capital flows d. Neither trade flows nor capital flows 20. Concerning the relative impacts of fiscal policy and monetary pol ...
... balance for the nation is that monetary or fiscal policies aimed at the domestic sector also have impacts on: a. Trade flows only b. Capital flows only c. both trade flows and capital flows d. Neither trade flows nor capital flows 20. Concerning the relative impacts of fiscal policy and monetary pol ...
Understanding Bilateral Exchange Rate Volatility
... sheet effects matter for macroeconomic outcomes and especially for the exchange rate. One conclusion of this literature is that, combined with these balance sheet effects, the presence of external debt (denominated in foreign currency) may have an important effect on the way in which movements in th ...
... sheet effects matter for macroeconomic outcomes and especially for the exchange rate. One conclusion of this literature is that, combined with these balance sheet effects, the presence of external debt (denominated in foreign currency) may have an important effect on the way in which movements in th ...
Peltonen-del05 1039031 en
... floating exchange rate regime was faster after currency crises than before them. However, under fixed or intermediate exchange rate regimes, crises caused substantial declines in per capita GDP growth rates. 2 See also Edison (2003). 3 See e.g. a survey by Wong and Selvi (1998). 4 One should note th ...
... floating exchange rate regime was faster after currency crises than before them. However, under fixed or intermediate exchange rate regimes, crises caused substantial declines in per capita GDP growth rates. 2 See also Edison (2003). 3 See e.g. a survey by Wong and Selvi (1998). 4 One should note th ...
Simulation of Exchange Rates of Nigerian Naira
... which closed at 82.33 to a dollar in 1995 appreciated to 81.48 per dollar in 1996. The rate depreciated continuously to 81.98, 84.84 and 91.83 in 1997, 1998 and 1999 respectively. From 1960 until 2011 the USD-NGN exchange averaged 47.25 reaching an historical high of 157.85 in September of 2011 and ...
... which closed at 82.33 to a dollar in 1995 appreciated to 81.48 per dollar in 1996. The rate depreciated continuously to 81.98, 84.84 and 91.83 in 1997, 1998 and 1999 respectively. From 1960 until 2011 the USD-NGN exchange averaged 47.25 reaching an historical high of 157.85 in September of 2011 and ...
Fluctuations in the Yen/Dollar Exchange Rate, East Asian Business
... rate constitute the primary threat to East Asia’s macroeconomic stability. First, although this view rests on the assumption that the East Asian currencies have been pegged to the dollar sufficiently tightly that fluctuations in the yen/dollar rate are largely synonymous to those in the relative man ...
... rate constitute the primary threat to East Asia’s macroeconomic stability. First, although this view rests on the assumption that the East Asian currencies have been pegged to the dollar sufficiently tightly that fluctuations in the yen/dollar rate are largely synonymous to those in the relative man ...
G20 - Bundesfinanzministerium
... If the financial crises of recent years have shown one thing, it is that turbulence on the international financial markets affects national economies, too. At their 1999 summit in Berlin, the G7 decided to create a larger forum to enable the economic and financial coordination between individual cou ...
... If the financial crises of recent years have shown one thing, it is that turbulence on the international financial markets affects national economies, too. At their 1999 summit in Berlin, the G7 decided to create a larger forum to enable the economic and financial coordination between individual cou ...
Negative Nominal Interest Rates
... overheating and inflation threatens to rise to undesirable levels, the central bank can raise the official policy rate (a short, risk-free nominal interest rate) to any level it deems necessary. During economic downturns, when excess capacity rises and deflation threatens, the official policy rate c ...
... overheating and inflation threatens to rise to undesirable levels, the central bank can raise the official policy rate (a short, risk-free nominal interest rate) to any level it deems necessary. During economic downturns, when excess capacity rises and deflation threatens, the official policy rate c ...
Macroeconomics Chamberlin and Yueh
... reduction in exchange controls throughout the world, leading to a large rise in international capital mobility. • The consequence is that financial markets in different countries have become increasingly interlinked, given rise to what can be described as an international financial market. In additi ...
... reduction in exchange controls throughout the world, leading to a large rise in international capital mobility. • The consequence is that financial markets in different countries have become increasingly interlinked, given rise to what can be described as an international financial market. In additi ...
Chapter 6.pmd
... the currency will maintain a stable purchasing power. Without this confidence, a currency will not be used as an international medium ...
... the currency will maintain a stable purchasing power. Without this confidence, a currency will not be used as an international medium ...
MONETARY POLICY AND TRANSITION IN SOUTHEAST EUROPE
... Three key preconditions, important for practical implementation of the monetary targeting strategy are: existence of stable and predictable money demand; existence of strong and predictable relationship between money supply and price level; and strict control over the money supply from monetary auth ...
... Three key preconditions, important for practical implementation of the monetary targeting strategy are: existence of stable and predictable money demand; existence of strong and predictable relationship between money supply and price level; and strict control over the money supply from monetary auth ...
Modern Money Theory 101: A Reply to Critics
... always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to financial stability, price stability and full employment. It argues these are important g ...
... always solvent, and can afford to buy anything for sale in their domestic unit of account even though they may face inflationary and political constraints.3 MMT has also provided policy insights with respect to financial stability, price stability and full employment. It argues these are important g ...