Optimal Currency Areas: Theory and Evidence for an African Single
... Monetary integration, to varying degrees has become an increasingly important phenomenon within the modern global economic era. Africa has been planning economic, political and monetary union since 1963, partly as a means towards social integration. This study focuses on the economic elements of mon ...
... Monetary integration, to varying degrees has become an increasingly important phenomenon within the modern global economic era. Africa has been planning economic, political and monetary union since 1963, partly as a means towards social integration. This study focuses on the economic elements of mon ...
The Coming Fiscal Crisis: Fiscal Policy in the United States
... increase in interest rates may directly reduce interest-sensitive consumption, such as on credit-financed durable goods. Third, the increase in interest rates may indirectly reduce consumption, by reducing asset values and therefore household net wealth. ...
... increase in interest rates may directly reduce interest-sensitive consumption, such as on credit-financed durable goods. Third, the increase in interest rates may indirectly reduce consumption, by reducing asset values and therefore household net wealth. ...
Is the Twin Deficits Hypothesis Relevant to Fiji?
... The second view, founded on the monetary approach to the balance of payments, is often formulated for a small country in relation to the rest of the world with which it maintains a fixed exchange rate system (Johnson, 1976). Based on the Keynesian absorption theory, the monetary approach takes the v ...
... The second view, founded on the monetary approach to the balance of payments, is often formulated for a small country in relation to the rest of the world with which it maintains a fixed exchange rate system (Johnson, 1976). Based on the Keynesian absorption theory, the monetary approach takes the v ...
Saving, Investment, and the Financial System
... (預算賸餘) because it receives more money than it spends on consumption and investment. • If G > T + I G , the government runs a budget deficit (預算赤字) because it spends more money than it receives in tax revenue. ...
... (預算賸餘) because it receives more money than it spends on consumption and investment. • If G > T + I G , the government runs a budget deficit (預算赤字) because it spends more money than it receives in tax revenue. ...
Financial System, Financial Liberalization and Crises : A tale of two
... collective action of shareholders. And it exerts a disciplinary effect on management, to the extent that a default would give the creditor the option to force the firm into liquidation (Takagi, 2000). Moreover, when the banks and business can make a long-term and intimate relationship like in Japan ...
... collective action of shareholders. And it exerts a disciplinary effect on management, to the extent that a default would give the creditor the option to force the firm into liquidation (Takagi, 2000). Moreover, when the banks and business can make a long-term and intimate relationship like in Japan ...
Economics 102 Summer 2016 Answers to Homework #5 Due 7/13
... $300 million. The leader of this country asks you to come up with three fiscal policy proposals ...
... $300 million. The leader of this country asks you to come up with three fiscal policy proposals ...
Public Debt Management in Emerging Market
... basis points from its low point in June 2007, and the international capital markets were effectively closed to issuers for several months. Yet, despite the severity of the global crisis, it did not result in an emerging market sovereign debt crisis of the type that we have seen in the 1990s and earl ...
... basis points from its low point in June 2007, and the international capital markets were effectively closed to issuers for several months. Yet, despite the severity of the global crisis, it did not result in an emerging market sovereign debt crisis of the type that we have seen in the 1990s and earl ...
COM COM(2008)0248 EN
... adopt the single currency. Therefore, this convergence assessment covers the following ten Member States with a derogation: Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovakia and Sweden. Having joined the EU on 1 January 2007, Bulgaria and Romania are examin ...
... adopt the single currency. Therefore, this convergence assessment covers the following ten Member States with a derogation: Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovakia and Sweden. Having joined the EU on 1 January 2007, Bulgaria and Romania are examin ...
M F L
... 5.21 Outstanding guarantees recorded a trend growth of 7.56 per cent during 1991-2002. These contingent liabilities as on 31 March 2002 were nearly 7 per cent of the aggregate fiscal liabilities of the Union Government. Total outstanding guarantees were nearly 4 per cent of GDP and 35 per cent of th ...
... 5.21 Outstanding guarantees recorded a trend growth of 7.56 per cent during 1991-2002. These contingent liabilities as on 31 March 2002 were nearly 7 per cent of the aggregate fiscal liabilities of the Union Government. Total outstanding guarantees were nearly 4 per cent of GDP and 35 per cent of th ...
The effects of post-default fiscal policies
... constraints on banks and forces them to deleverage, which leads to lower investment and lower output. But on the other hand, it loosens the government’s budget constraint – since, presumably, servicing debt would require higher taxes or less government spending. Therefore, one of the main factors di ...
... constraints on banks and forces them to deleverage, which leads to lower investment and lower output. But on the other hand, it loosens the government’s budget constraint – since, presumably, servicing debt would require higher taxes or less government spending. Therefore, one of the main factors di ...
NBER WORKING PAPER SERIES MACROECONOMIC MODELING FOR MONETARY POLICY EVALUATION Jordi Galí
... real interest rate provide important reference points for monetary policy–and may ‡uctuate considerably. While nominal rigidities are introduced in these new models in a more rigorous manner than was done previously, it remains true that one can de…ne natural values for output and the real interest ...
... real interest rate provide important reference points for monetary policy–and may ‡uctuate considerably. While nominal rigidities are introduced in these new models in a more rigorous manner than was done previously, it remains true that one can de…ne natural values for output and the real interest ...
Free Full text
... expansionary impact of the SONA initiatives. However, given that the 2017 budget includes several one-off measures, additional and permanent measures to boost revenue and contain expenditure will be needed to ensure a steady debt reduction over the medium term. “Implementation of the SONA initiative ...
... expansionary impact of the SONA initiatives. However, given that the 2017 budget includes several one-off measures, additional and permanent measures to boost revenue and contain expenditure will be needed to ensure a steady debt reduction over the medium term. “Implementation of the SONA initiative ...
Has the Inclusion of Forward-Looking Statements in Monetary Policy
... expectations, we also find that, over a shorter sample (22 July 2004 to 31 May 2007 – the period over which forward-looking statements are included consistently in FAD press releases), official communications of all forms no longer impact interest rates in a statistically significant manner. When we ...
... expectations, we also find that, over a shorter sample (22 July 2004 to 31 May 2007 – the period over which forward-looking statements are included consistently in FAD press releases), official communications of all forms no longer impact interest rates in a statistically significant manner. When we ...
Public sector debt: end March 1998
... government debt is largely composed of the liabilities of the National Loans Fund (the ‘national debt’), so the next section looks at the market holdings of these liabilities by instrument. It starts by looking at British Government Securities (gilts), the structure of the outstanding gilt portfolio ...
... government debt is largely composed of the liabilities of the National Loans Fund (the ‘national debt’), so the next section looks at the market holdings of these liabilities by instrument. It starts by looking at British Government Securities (gilts), the structure of the outstanding gilt portfolio ...
NBER WORKING PAPER SERIES Craig Burnside Martin Eichenbaum
... analysis shows that, once these sources of revenue are incorporated into the model, we can account for government Þnancing in a way that is consistent with post-crisis rates of inßation and depreciation. We consider a standard small open economy model populated by a representative, inÞnitely lived a ...
... analysis shows that, once these sources of revenue are incorporated into the model, we can account for government Þnancing in a way that is consistent with post-crisis rates of inßation and depreciation. We consider a standard small open economy model populated by a representative, inÞnitely lived a ...
Progressive approaches to budget deficits Malcolm Sawyer
... deficits in numerical terms where the number is ‘plucked out of the air’) is firstly to completely misunderstand the purposes of fissal policy and unbalanced budgets. It secondly argues that seeking a zero budget deficit would for many countries be difficult if not impossible to achieve, simply beca ...
... deficits in numerical terms where the number is ‘plucked out of the air’) is firstly to completely misunderstand the purposes of fissal policy and unbalanced budgets. It secondly argues that seeking a zero budget deficit would for many countries be difficult if not impossible to achieve, simply beca ...
The role of the government in financial sector
... inefficient legal system or a corrupt bureaucracy. Similarly, interest margins and overhead costs could be high due to inefficient political institutions. The size and quality of the government are therefore inextricably linked to the size and efficiency of a financial system. Consequently, the siz ...
... inefficient legal system or a corrupt bureaucracy. Similarly, interest margins and overhead costs could be high due to inefficient political institutions. The size and quality of the government are therefore inextricably linked to the size and efficiency of a financial system. Consequently, the siz ...
State-controlled Banks and the Effectiveness of Monetary Policy
... capital and capital budgeting hurdle rates. A second method of conducting monetary policy has the central banks altering liquidity and capital structure regulations that limit bank lending. Changes that allow increased bank lending also increase the money supply. In a third approach to monetary poli ...
... capital and capital budgeting hurdle rates. A second method of conducting monetary policy has the central banks altering liquidity and capital structure regulations that limit bank lending. Changes that allow increased bank lending also increase the money supply. In a third approach to monetary poli ...
McCallum rule and Chinese monetary policy
... and loans), the interest rate channel has been ineffective for various reasons. The liberalisation of the interest rates has advanced rather slowly, the banking sector has not traditionally been profit-oriented and in the companies' investment decisions, interest costs have played a minor role. Over ...
... and loans), the interest rate channel has been ineffective for various reasons. The liberalisation of the interest rates has advanced rather slowly, the banking sector has not traditionally been profit-oriented and in the companies' investment decisions, interest costs have played a minor role. Over ...
Determinants of Inflation and Feasibility of Inflation Targeting in a
... record of economic policy and performance during the period 1973-2005 is reviewed in relation to changes in economic policy and political regimes. The time series data on money supply (as an indicator of monetary policy), and budget deficits (as an indicator of fiscal policy) reflect significant cha ...
... record of economic policy and performance during the period 1973-2005 is reviewed in relation to changes in economic policy and political regimes. The time series data on money supply (as an indicator of monetary policy), and budget deficits (as an indicator of fiscal policy) reflect significant cha ...
Modelling, simulation and control of macro economic systems.
... The research problem to be solved in this report is therefore to assess four conceptual different macroeconomic systems, including today’s Basel-type banking system, to find advantages and disadvantages in these systems compared to each other. Advantages and disadvantages are found in terms of how d ...
... The research problem to be solved in this report is therefore to assess four conceptual different macroeconomic systems, including today’s Basel-type banking system, to find advantages and disadvantages in these systems compared to each other. Advantages and disadvantages are found in terms of how d ...