Contagion, Herding and Exchange-rate Instability
... early work on currency crises, initiated by Krugman,3 is characterised by inconsistencies in fundamental macroeconomic variables with the maintenance of a currency peg. In these first generation models, the government runs a lax fiscal policy and finances the deficit by printing money. As a consequence, ...
... early work on currency crises, initiated by Krugman,3 is characterised by inconsistencies in fundamental macroeconomic variables with the maintenance of a currency peg. In these first generation models, the government runs a lax fiscal policy and finances the deficit by printing money. As a consequence, ...
2. I E D
... The effects of the global economic recovery on commodity prices, albeit marginal, have been observed since the second quarter. The upsurge in industrial metal prices during this period was largely driven by the recovery of the Chinese economy, while, in the upcoming period, the course of commodity p ...
... The effects of the global economic recovery on commodity prices, albeit marginal, have been observed since the second quarter. The upsurge in industrial metal prices during this period was largely driven by the recovery of the Chinese economy, while, in the upcoming period, the course of commodity p ...
Working Paper 74 – The Great Exchange Rate Debate after
... crawling bands, and pegged-but-adjustable systems -- were very popular among policy makers and economists in the emerging countries. All of this changed in the late-1990s when as a result of successive currency crises a number of authors began to argue that in a world of high capital mobility, middl ...
... crawling bands, and pegged-but-adjustable systems -- were very popular among policy makers and economists in the emerging countries. All of this changed in the late-1990s when as a result of successive currency crises a number of authors began to argue that in a world of high capital mobility, middl ...
Consumption Baskets and Currency Choice in International Borrowing
... reasonable degree of price stickiness, these shares respectively become 20% and 80%. This suggests that our “consumption basket effect” can potentially have a significant impact on an emerging economy’s currency denomination of external debt. 2. Related literature A large volume of empirical literat ...
... reasonable degree of price stickiness, these shares respectively become 20% and 80%. This suggests that our “consumption basket effect” can potentially have a significant impact on an emerging economy’s currency denomination of external debt. 2. Related literature A large volume of empirical literat ...
Chapter 10 - University of Alberta
... world economies: – international trade in goods and services; – worldwide integration of financial markets. ...
... world economies: – international trade in goods and services; – worldwide integration of financial markets. ...
Key Development at a Glance - Claremont Graduate University
... 2.More market force for exchange rate determination mechanism A.Continue to make the actual supply of the market meet the actual demand. ---To eliminate the restrictions to the purchase/sales of for eign currency ---To promote the liberalization of capital account to realize the actual demand of res ...
... 2.More market force for exchange rate determination mechanism A.Continue to make the actual supply of the market meet the actual demand. ---To eliminate the restrictions to the purchase/sales of for eign currency ---To promote the liberalization of capital account to realize the actual demand of res ...
Financial Crises in Emerging Market Economies
... economies are often sown when countries liberalize their domestic financial systems by eliminating restrictions on financial institutions and markets, a process known as financial liberalization, and opening up their economies to flows of capital and financial firms from other nations, a process cal ...
... economies are often sown when countries liberalize their domestic financial systems by eliminating restrictions on financial institutions and markets, a process known as financial liberalization, and opening up their economies to flows of capital and financial firms from other nations, a process cal ...
Currency crises and monetary policy in an economy with credit
... and thus a currency depreciation. But arbitrage in the foreign exchange market then implies that the currency must depreciate in the current period as well. In other words, if people believe that the currency will depreciate, it may indeed depreciate. Multiple short-run equilibria in the market for ...
... and thus a currency depreciation. But arbitrage in the foreign exchange market then implies that the currency must depreciate in the current period as well. In other words, if people believe that the currency will depreciate, it may indeed depreciate. Multiple short-run equilibria in the market for ...
Working Paper 12-15: Choice and Coercion in East Asian Exchange
... The exchange rate policies of East Asian states have far-reaching ramifications for international relations within the region, for their relations outside the region, and for the structure of the world economy. Many Asian states have somewhat famously kept their currencies competitively valued throu ...
... The exchange rate policies of East Asian states have far-reaching ramifications for international relations within the region, for their relations outside the region, and for the structure of the world economy. Many Asian states have somewhat famously kept their currencies competitively valued throu ...
Yen Bloc or Yuan Bloc
... Asia.2 Among the various proposals, one of the most ambitious is to form a currency union in East Asia, and many countries in the region, including Japan, have expressed interest in the idea.3 The exchange rate regime of East Asian countries has important economic implications for Japan. The de fact ...
... Asia.2 Among the various proposals, one of the most ambitious is to form a currency union in East Asia, and many countries in the region, including Japan, have expressed interest in the idea.3 The exchange rate regime of East Asian countries has important economic implications for Japan. The de fact ...
8 - of Planning Commission
... The need for multilateral consultations to deal with global imbalances was recognized in the middle of the last decade when the United States current account deficit rose year after year, reaching 6 per cent of GDP in 2005. There was widespread concern that if these large imbalances, affecting the m ...
... The need for multilateral consultations to deal with global imbalances was recognized in the middle of the last decade when the United States current account deficit rose year after year, reaching 6 per cent of GDP in 2005. There was widespread concern that if these large imbalances, affecting the m ...
Exchange Rate Regime Choice in Historical Perspective
... countries hit by crises had pegged exchange rates. According to the trilemma view, the crises were a signal that open capital markets, monetary independence and pegs were incompatible as had been the case with the advanced countries in Bretton Woods and the ERM in 1992. Consequently many observers ...
... countries hit by crises had pegged exchange rates. According to the trilemma view, the crises were a signal that open capital markets, monetary independence and pegs were incompatible as had been the case with the advanced countries in Bretton Woods and the ERM in 1992. Consequently many observers ...
Peso: depreciation vs. inflation
... On August 11, 2015, the Chinese government announced a 2% devaluation of the Yuan (also known as renminbi), as the beginning of a move towards flotation of the currency, so that it be included in the basket of reserve currencies recognized by the Internat ...
... On August 11, 2015, the Chinese government announced a 2% devaluation of the Yuan (also known as renminbi), as the beginning of a move towards flotation of the currency, so that it be included in the basket of reserve currencies recognized by the Internat ...
NBER WORKING PAPER SERIES G7 CURRENT ACCOUNT IMBALANCES: SUSTAINABILITY AND ADJUSTMENT
... noted that there was range of opinion concerning how large a role such revaluation effects would play in the adjustment process. The eleven papers written for the project fall into three broad categories and are thus arranged in the volume in three sections. Section One: Origins of G7 Current Accou ...
... noted that there was range of opinion concerning how large a role such revaluation effects would play in the adjustment process. The eleven papers written for the project fall into three broad categories and are thus arranged in the volume in three sections. Section One: Origins of G7 Current Accou ...
Topic H
... level of risk may depend upon various factors, including the scale of operations of the business and the degree to which its proprietors or shareholders are risk-averse. • (b) Secondly, a business may wish to avoid particular kinds of risks. For example, a business may be averse to taking risks with ...
... level of risk may depend upon various factors, including the scale of operations of the business and the degree to which its proprietors or shareholders are risk-averse. • (b) Secondly, a business may wish to avoid particular kinds of risks. For example, a business may be averse to taking risks with ...
Previous International Exchange
... then be offered in the exchange market to augment the supply of pounds. • IMF borrowing The needed pounds might be borrowed from the IMF. Nations participating in the Bretton Woods system were required to make contributions to the IMF based on the size of their national income, population, and volum ...
... then be offered in the exchange market to augment the supply of pounds. • IMF borrowing The needed pounds might be borrowed from the IMF. Nations participating in the Bretton Woods system were required to make contributions to the IMF based on the size of their national income, population, and volum ...
1 Grexit: why it will not happen
... Severe cash constraints faced by the Greek government due to a pretty demanding schedule of interest and amortization payments in the remainder of 2015 have lately engineered a new increase in sovereign bond spreads and rekindled fears of a “Graccident” down th ...
... Severe cash constraints faced by the Greek government due to a pretty demanding schedule of interest and amortization payments in the remainder of 2015 have lately engineered a new increase in sovereign bond spreads and rekindled fears of a “Graccident” down th ...
Spot Market
... Provides us with a benchmark for interpreting crossborder capital movements. Simple but quite useful - will be revisited later in ...
... Provides us with a benchmark for interpreting crossborder capital movements. Simple but quite useful - will be revisited later in ...