NBER WORKING PAPER SERIES INTERNATIONAL BALANCE OF PAYMENTS FINANCING AND Willem H. Buiter
... currency of the borrower. The two cases generate quite different equilibria. Our model does not predict which type of equilibrium will emerge, or if it will be an intermediate one. This paper suggests, however, that a theory of default combined with an assumption of convertibility niay be incorporat ...
... currency of the borrower. The two cases generate quite different equilibria. Our model does not predict which type of equilibrium will emerge, or if it will be an intermediate one. This paper suggests, however, that a theory of default combined with an assumption of convertibility niay be incorporat ...
The Effects of the Saving and Banking Glut on the U.S. Economy
... role in easing financial conditions in the United States during the boom, comparable in magnitude to that of the purchases of Government debt by the SG countries. In Shin’s (2012) model of global banking, spreads are negatively related to the total amount of funds intermediated by the financial syst ...
... role in easing financial conditions in the United States during the boom, comparable in magnitude to that of the purchases of Government debt by the SG countries. In Shin’s (2012) model of global banking, spreads are negatively related to the total amount of funds intermediated by the financial syst ...
ПЛАН
... Price indices for Russian exports (price level at the year 2000 is taken as 100%) PXt. These figures are taken as exogenous for the current model, but they are also based on forecasting models. In particular, the real exchange rate was estimated with account of forecasted prices of the major goods e ...
... Price indices for Russian exports (price level at the year 2000 is taken as 100%) PXt. These figures are taken as exogenous for the current model, but they are also based on forecasting models. In particular, the real exchange rate was estimated with account of forecasted prices of the major goods e ...
Can, Or Should, A Central Bank InFlation Target?
... types of inflation—commodity or capital inflation (or deflation) and an incomes inflation (or deflation). The former inflation type is identified with rising spot market contractual prices over time, where, at any point in time, only preexisting stocks of goods could be traded. Because production ta ...
... types of inflation—commodity or capital inflation (or deflation) and an incomes inflation (or deflation). The former inflation type is identified with rising spot market contractual prices over time, where, at any point in time, only preexisting stocks of goods could be traded. Because production ta ...
Answer Key
... c) Since employment dropped from 12 million to 10.8 million, 1.2 million have lost their jobs. The rest of the unemployed, 1.5 million, are the result of more people looking for jobs (quantity supplied increased from 12 to 13.5 million). 4. Keynes suggested that interest rates have little or no effe ...
... c) Since employment dropped from 12 million to 10.8 million, 1.2 million have lost their jobs. The rest of the unemployed, 1.5 million, are the result of more people looking for jobs (quantity supplied increased from 12 to 13.5 million). 4. Keynes suggested that interest rates have little or no effe ...
model answers and marking scheme
... settlement at a future date, on transactions already entered into and denominated in a foreign currency. The inherent cash flows of the transaction are exposed to currency rate fluctuation. Translation exposure – arises when, for reporting purposes and consolidation purposes, the results of foreign ...
... settlement at a future date, on transactions already entered into and denominated in a foreign currency. The inherent cash flows of the transaction are exposed to currency rate fluctuation. Translation exposure – arises when, for reporting purposes and consolidation purposes, the results of foreign ...
lecture notes
... 1. It is acceptable as a medium of exchange. 2. Currency is legal tender or fiat money. It must be accepted by law. (Note that checks are not legal tender but, in fact, are generally acceptable in exchange for goods, services, and resources.) 3. The relative scarcity of money compared to goods and s ...
... 1. It is acceptable as a medium of exchange. 2. Currency is legal tender or fiat money. It must be accepted by law. (Note that checks are not legal tender but, in fact, are generally acceptable in exchange for goods, services, and resources.) 3. The relative scarcity of money compared to goods and s ...
Taylor Rules, McCallum Rules and the Term Structure of Interest Rates
... that a factor model of the term structure that also imposes no-arbitrage conditions, can provide a better empirical model of the term structure than a model based on unobserved factors or latent variables alone. Estrella and Mishkin (1997), Evans and Marshall (1998) and (2001), also provide evidence ...
... that a factor model of the term structure that also imposes no-arbitrage conditions, can provide a better empirical model of the term structure than a model based on unobserved factors or latent variables alone. Estrella and Mishkin (1997), Evans and Marshall (1998) and (2001), also provide evidence ...
The Money Supply and the Federal Reserve System
... currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely A) decrease the quantity of money demanded from $200 million to $100 million. B) increase the quantity of money demanded from $100 million to $200 million. C) increase the quantity of money demanded from ...
... currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely A) decrease the quantity of money demanded from $200 million to $100 million. B) increase the quantity of money demanded from $100 million to $200 million. C) increase the quantity of money demanded from ...
Inflation targeting in Brazil: 1999–2006 - Bresser
... domestic real interest rate, but the Brazilian rate remained well above the international standards because the country needed to appreciate the exchange rate in order to meet its inflation targets. Third, the high real interest rate put an expansionary pressure on the net public debt and this had t ...
... domestic real interest rate, but the Brazilian rate remained well above the international standards because the country needed to appreciate the exchange rate in order to meet its inflation targets. Third, the high real interest rate put an expansionary pressure on the net public debt and this had t ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... in prices and some factors which includes technology and people’s preferences for saving, working and risk taking over the long run is dependent on sustainable output growth and the rate of CBLA generates (Epstein and Heintz, 2006). Monetary policy influence the performance of the economy’s crucial ...
... in prices and some factors which includes technology and people’s preferences for saving, working and risk taking over the long run is dependent on sustainable output growth and the rate of CBLA generates (Epstein and Heintz, 2006). Monetary policy influence the performance of the economy’s crucial ...
Policy Uncertainties Limit Growth of Domestic Private Demand
... In the absence of any boost from increases in senior consumption, it is difficult to foresee any genuine growth in personal consumption. ...
... In the absence of any boost from increases in senior consumption, it is difficult to foresee any genuine growth in personal consumption. ...
Monetary Policy
... Some Issues Regarding the Conduct of Monetary Policy 1. Should the Fed Target the Money Supply? Rather than use an interest rate as its monetary policy target, the Fed should target the money supply. Economists who make this argument belong to the Monetarist School. ...
... Some Issues Regarding the Conduct of Monetary Policy 1. Should the Fed Target the Money Supply? Rather than use an interest rate as its monetary policy target, the Fed should target the money supply. Economists who make this argument belong to the Monetarist School. ...
Saving and Investment in the Open Economy
... • The world desired saving will be equal to the world desired investment. • We can determine rw within the model, with desired lending equal to desired borrowing. • Equilibrium can also be defined in terms of goods markets, one deficit equal to another’s surplus. • The model could be used to look at ...
... • The world desired saving will be equal to the world desired investment. • We can determine rw within the model, with desired lending equal to desired borrowing. • Equilibrium can also be defined in terms of goods markets, one deficit equal to another’s surplus. • The model could be used to look at ...
Chapter 17 An Introduction to the Process of Real Estate Finance
... Securitization is the process of converting an individual mortgage into a security, often is pooled form where many similar mortgages are combined, that is then sold to investors in secondary markets “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner ...
... Securitization is the process of converting an individual mortgage into a security, often is pooled form where many similar mortgages are combined, that is then sold to investors in secondary markets “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner ...
2) Interest Rate Policy and Loan Pricing
... productive opportunities. A trade-off exists between expected return and risk. As Horne (1984, p. 294) explains, ‘When the government explicitly directs funds to certain investments which would either not be able to attract funds on their own or would attract them only at a higher rate of interest, ...
... productive opportunities. A trade-off exists between expected return and risk. As Horne (1984, p. 294) explains, ‘When the government explicitly directs funds to certain investments which would either not be able to attract funds on their own or would attract them only at a higher rate of interest, ...
1 An Alternative Stability and Growth Pact for the European Union
... member of their decision making bodies shall seek or take instructions from Community institutions or bodies, from any government of a Member State or from any other body. The Community institutions and bodies and the governments of the Member States undertake to respect this principle and not to se ...
... member of their decision making bodies shall seek or take instructions from Community institutions or bodies, from any government of a Member State or from any other body. The Community institutions and bodies and the governments of the Member States undertake to respect this principle and not to se ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.