Document
... o A monetary policy is a response to events chosen without a predetermined framework ...
... o A monetary policy is a response to events chosen without a predetermined framework ...
Exchange Rates and International Monetary System
... Assuming that USA has much higher level of productivity in production of tradable goods and services. Other things equal, this will imply that wages in those sectors are much higher in the USA than in China. Let us also assume that wages in non-tradable sectors in both China and USA are equal to wag ...
... Assuming that USA has much higher level of productivity in production of tradable goods and services. Other things equal, this will imply that wages in those sectors are much higher in the USA than in China. Let us also assume that wages in non-tradable sectors in both China and USA are equal to wag ...
Lecture note 9
... The parameters have following properties: α ∈ (0, 1), β < 0 , γ ∈ (0, 1), δ > 0, ω ∈ (0, 1), κ > 0, λ > 0 and κ > 1. Finally, ²jt represents exogenous shocks. The equation (5) corresponds to the aggregate demand equation; it relates aggregate spending to lagged values of output (habbit in consumptio ...
... The parameters have following properties: α ∈ (0, 1), β < 0 , γ ∈ (0, 1), δ > 0, ω ∈ (0, 1), κ > 0, λ > 0 and κ > 1. Finally, ²jt represents exogenous shocks. The equation (5) corresponds to the aggregate demand equation; it relates aggregate spending to lagged values of output (habbit in consumptio ...
Mock_Exam_2013_MS
... Adjusted indicators are useful because they are (more) comprehensive measures than, for example, GDP (4 marks). This helps governments to determine the best policies to pursue to achieve sustainability / allows economic, social & environmental outcomes of growth to be explicitly measured (5 marks). ...
... Adjusted indicators are useful because they are (more) comprehensive measures than, for example, GDP (4 marks). This helps governments to determine the best policies to pursue to achieve sustainability / allows economic, social & environmental outcomes of growth to be explicitly measured (5 marks). ...
Retail Trade - ACT Treasury
... The Reserve Bank cited modest inflation outcomes, the moderate pace of domestic economic growth and a mixed global economic outlook as the basis for its decision. The Reserve Bank reiterated that macroprudential measures1 have appeared to ease price pressures in key housing markets, and it was judge ...
... The Reserve Bank cited modest inflation outcomes, the moderate pace of domestic economic growth and a mixed global economic outlook as the basis for its decision. The Reserve Bank reiterated that macroprudential measures1 have appeared to ease price pressures in key housing markets, and it was judge ...
Demand in the Open Economy Preliminaries and Assumptions
... money supply, shifting LM curve right, reducing interest rates. Model: net effect of decrease in export demand and monetary expansion is as follows: Little or no change in output. Decrease in nominal interest rate—investment increases. Increase in exchange rate—ambiguous effect on the trade ba ...
... money supply, shifting LM curve right, reducing interest rates. Model: net effect of decrease in export demand and monetary expansion is as follows: Little or no change in output. Decrease in nominal interest rate—investment increases. Increase in exchange rate—ambiguous effect on the trade ba ...
PPT
... ratio of debt to the equity capital of the shareholders. Such a corporate system became dysfunctional when the government a process of financial liberalisation. It permitted companies and banks to raise money abroad without the traditional supervision and control. • The East Asian crisis has sparked ...
... ratio of debt to the equity capital of the shareholders. Such a corporate system became dysfunctional when the government a process of financial liberalisation. It permitted companies and banks to raise money abroad without the traditional supervision and control. • The East Asian crisis has sparked ...
Fixed Exchange Rates and Currency Unions
... change in nominal rate based on differences Although exchange rate is changing, participants know by how much Real exchange rate is held steady Still a need for intervention to smooth out changes from announced rate Monetary policy can now focus on domestic economic conditions and exchange rate in r ...
... change in nominal rate based on differences Although exchange rate is changing, participants know by how much Real exchange rate is held steady Still a need for intervention to smooth out changes from announced rate Monetary policy can now focus on domestic economic conditions and exchange rate in r ...
Slide 1
... • the capital inflow to developing countries has two effects. On the one hand, it expands the potential supply of output by expanding the industrial capacity in the recipient countries. This can be thought of as causing an upward shift in the growth rate schedule for low tech goods. On the other ha ...
... • the capital inflow to developing countries has two effects. On the one hand, it expands the potential supply of output by expanding the industrial capacity in the recipient countries. This can be thought of as causing an upward shift in the growth rate schedule for low tech goods. On the other ha ...
Cuba_en.pdf
... (c) The external sector The global economic crisis caused the balance-ofpayments current account to go from a surplus equivalent to 0.8% of GDP in 2007 to a deficit equivalent to several points of GDP in 2008. The value of goods exports fell 0.6% in 2008, despite an increase in the volume exported ...
... (c) The external sector The global economic crisis caused the balance-ofpayments current account to go from a surplus equivalent to 0.8% of GDP in 2007 to a deficit equivalent to several points of GDP in 2008. The value of goods exports fell 0.6% in 2008, despite an increase in the volume exported ...
Costa_Rica_en.pdf
... (b) Monetary and exchange-rate policy The exchange market was extremely volatile throughout the year, with a tendency towards an appreciation of the colón, which kept it close to the floor of the band (500 colones) during the last five months of the year. At the end of December, the exchange rate r ...
... (b) Monetary and exchange-rate policy The exchange market was extremely volatile throughout the year, with a tendency towards an appreciation of the colón, which kept it close to the floor of the band (500 colones) during the last five months of the year. At the end of December, the exchange rate r ...
National income accounting:
... 2A. In the Keynesian model for a closed economy, what is the effect of expansionary fiscal policy (a higher G or a lower T) on the real interest rate, private investment, output, and private consumption in the short run (when the price level is assumed to be fixed)? Assume a simple Keynesian consump ...
... 2A. In the Keynesian model for a closed economy, what is the effect of expansionary fiscal policy (a higher G or a lower T) on the real interest rate, private investment, output, and private consumption in the short run (when the price level is assumed to be fixed)? Assume a simple Keynesian consump ...
Chapter 12:
... As discussed in this chapter, fixing exchange rates does not eliminate the potential for risks resulting from devaluations or revaluations. The fact that so many realignments have occurred indicates that individuals and firms would continue to face this type of risk in a Western European regime of f ...
... As discussed in this chapter, fixing exchange rates does not eliminate the potential for risks resulting from devaluations or revaluations. The fact that so many realignments have occurred indicates that individuals and firms would continue to face this type of risk in a Western European regime of f ...
Form 7 Economics Syllabus
... Redistribution effects of inflation Real costs of inflation Inflationary expectation & interest rates Money supply & interest rate Ways to deal with inflation Theory of unemployment Introduction The Natural Rate Hypothesis Types of unemployment Determinants of the natural rate ...
... Redistribution effects of inflation Real costs of inflation Inflationary expectation & interest rates Money supply & interest rate Ways to deal with inflation Theory of unemployment Introduction The Natural Rate Hypothesis Types of unemployment Determinants of the natural rate ...
Balance of Payment Crisis
... with the depreciation. Once the real was devalued, the central bank lost its credibility and had little choice but to form some sort of floating rate. ...
... with the depreciation. Once the real was devalued, the central bank lost its credibility and had little choice but to form some sort of floating rate. ...
Specialization
... 1) The grain process would be lower if tariffs were in place 2) Local grain would always be of a higher quality than grain from other countries 3) Local grain would be more plentiful because it was grown closer to the markets 4) Local farmers would be able to sell their grain since it would be cheap ...
... 1) The grain process would be lower if tariffs were in place 2) Local grain would always be of a higher quality than grain from other countries 3) Local grain would be more plentiful because it was grown closer to the markets 4) Local farmers would be able to sell their grain since it would be cheap ...
Nominal and Real Interest Rates
... Interest can be thought of as “rent on money“ The fee (interest) is compensation to the lender for foregoing other useful investments that could have been made with the loaned money ...
... Interest can be thought of as “rent on money“ The fee (interest) is compensation to the lender for foregoing other useful investments that could have been made with the loaned money ...
Lecture - Module 2
... • trade deficit • trade surplus – Capital account – record of all long-term direct investment, portfolio investment, and capital flows ...
... • trade deficit • trade surplus – Capital account – record of all long-term direct investment, portfolio investment, and capital flows ...
Macro_online_chapter_09_14e
... Recognize how the resource market is connected to the goods and services market. Recognize how the loanable funds market is connected to the goods and services market. Recognize how the foreign exchange market is connected to the goods and services market. ...
... Recognize how the resource market is connected to the goods and services market. Recognize how the loanable funds market is connected to the goods and services market. Recognize how the foreign exchange market is connected to the goods and services market. ...
Week 23
... one country to another; goods that are mainly consumed in one country and so are not traded, like frog’s legs that are consumed in France but generally not elsewhere; and services like haircuts, which cannot be arbitraged even if the price is very different in different countries. ...
... one country to another; goods that are mainly consumed in one country and so are not traded, like frog’s legs that are consumed in France but generally not elsewhere; and services like haircuts, which cannot be arbitraged even if the price is very different in different countries. ...
Chile_en.pdf
... floating exchange-rate policy and generally refrained from intervening significantly in the foreign-exchange market. Since early 2009, as access to international financial markets gradually returned to normal and the perception of risk eased, the currency regained a trend towards nominal appreciatio ...
... floating exchange-rate policy and generally refrained from intervening significantly in the foreign-exchange market. Since early 2009, as access to international financial markets gradually returned to normal and the perception of risk eased, the currency regained a trend towards nominal appreciatio ...
Currency, Economics and Financial Markets
... – Currency traders buy a lot of other currencies requiring other countries to buy more US to maintain their currency value costing them a lot of money and adversely effecting their economies – Other countries say “forget this” since it is too expensive and just let the value of their currencies fluc ...
... – Currency traders buy a lot of other currencies requiring other countries to buy more US to maintain their currency value costing them a lot of money and adversely effecting their economies – Other countries say “forget this” since it is too expensive and just let the value of their currencies fluc ...
The Gold Standard
... demanded, more of the foreign currency is demand at each possible exchange rate • The price of the foreign currency in local currency increases. • Home Currency Depreciation happens when the foreign currency’s “price” rises. In other words, the foreign currency’s value has appreciated against the ho ...
... demanded, more of the foreign currency is demand at each possible exchange rate • The price of the foreign currency in local currency increases. • Home Currency Depreciation happens when the foreign currency’s “price” rises. In other words, the foreign currency’s value has appreciated against the ho ...