Chile_en.pdf
... As a result of the sharp contraction in domestic demand, the current account deficit narrowed considerably over the first three quarters of 2014. On the one hand, the value of goods and services exports dropped by 0.7% during the period in consequence of low external demand, which resulted in price ...
... As a result of the sharp contraction in domestic demand, the current account deficit narrowed considerably over the first three quarters of 2014. On the one hand, the value of goods and services exports dropped by 0.7% during the period in consequence of low external demand, which resulted in price ...
Chronology of Events
... peso had devalued then the peso size of the debt would have increased. This could have lead to bankruptcies. 3.) They expected the dollar to devalue to more competitive rates. Hoped ...
... peso had devalued then the peso size of the debt would have increased. This could have lead to bankruptcies. 3.) They expected the dollar to devalue to more competitive rates. Hoped ...
BOP remaining
... • An upwards shift in the value of a nation's currency relative to others will make a nation's exports less competitive and make imports cheaper and so will tend to correct a current account surplus. It also tends to make investment flows into the capital account less attractive so will help with a ...
... • An upwards shift in the value of a nation's currency relative to others will make a nation's exports less competitive and make imports cheaper and so will tend to correct a current account surplus. It also tends to make investment flows into the capital account less attractive so will help with a ...
The consumption effect of the renminbi appreciation in rural China
... Given the limited welfare gains through the consumption channel, the government should pay attention to labour market effects that are also likely to substantially affect the ...
... Given the limited welfare gains through the consumption channel, the government should pay attention to labour market effects that are also likely to substantially affect the ...
Slide 1
... Didn’t work. Investors too scared of an upcoming devaluation. In response to these investor concerns, the Mexican government issued large amounts of short-term, dollar-denominated bonds (tesobonos). Now any devaluation would be the government’s problem. Super vulnerable to a financial market crisis; ...
... Didn’t work. Investors too scared of an upcoming devaluation. In response to these investor concerns, the Mexican government issued large amounts of short-term, dollar-denominated bonds (tesobonos). Now any devaluation would be the government’s problem. Super vulnerable to a financial market crisis; ...
Spring 2007
... 16) Monetary policy has been used more frequently than fiscal policy to fight inflation. Which of the following seems the most likely explanation of this fact? a) The Federal Reserve Bank is less subject to political pressure than Congress. b) Most economists do not believe that contractionary fisca ...
... 16) Monetary policy has been used more frequently than fiscal policy to fight inflation. Which of the following seems the most likely explanation of this fact? a) The Federal Reserve Bank is less subject to political pressure than Congress. b) Most economists do not believe that contractionary fisca ...
Solutions
... The foreign country is experiencing rapid growth in real GDP of 8% and targets a 2% inflation rate. The domestic country is experiencing no growth in real GDP or the price level. What does the central bank in the foreign country need to do to hit the inflation target and what will be the resulting n ...
... The foreign country is experiencing rapid growth in real GDP of 8% and targets a 2% inflation rate. The domestic country is experiencing no growth in real GDP or the price level. What does the central bank in the foreign country need to do to hit the inflation target and what will be the resulting n ...
academic honesty
... Class attendance is not mandatory, but the course is designed such that students who choose not to attend the lectures will be at a disadvantage. There will be two mid-term exams, one final exam, and an unspecified number (ranging from 4 to 6) of quizzes. There will be no homework assignments. You a ...
... Class attendance is not mandatory, but the course is designed such that students who choose not to attend the lectures will be at a disadvantage. There will be two mid-term exams, one final exam, and an unspecified number (ranging from 4 to 6) of quizzes. There will be no homework assignments. You a ...
Colombia_en.pdf
... investment, which was in addition to strikes in a number of sectors. Although exports remained flat in volume terms, they rose sharply in value during the year, thanks to high average prices for petroleum and other commodities. This is expected to bring about a small reduction in the balance-of-paym ...
... investment, which was in addition to strikes in a number of sectors. Although exports remained flat in volume terms, they rose sharply in value during the year, thanks to high average prices for petroleum and other commodities. This is expected to bring about a small reduction in the balance-of-paym ...
solution
... macroeconomic imbalance may be equally problematic in the long run regardless of whether it is a deficit or surplus, large external deficits involve the risk that the market will fix the problem quickly by ceasing to fund the external deficit. In this case, there may have to be rapid adjustment that ...
... macroeconomic imbalance may be equally problematic in the long run regardless of whether it is a deficit or surplus, large external deficits involve the risk that the market will fix the problem quickly by ceasing to fund the external deficit. In this case, there may have to be rapid adjustment that ...
money supply
... Deflation is a continuing decline in prices and is more damaging to a nation's economic health than inflation. Why is deflation a problem? Inflation targeting occurs when a central bank announces an explicit inflation range it pledges to maintain and enforces policies consistent with that goal ...
... Deflation is a continuing decline in prices and is more damaging to a nation's economic health than inflation. Why is deflation a problem? Inflation targeting occurs when a central bank announces an explicit inflation range it pledges to maintain and enforces policies consistent with that goal ...
Chapter 19 Exchange Rate Policy and the Central Bank
... Linking Exchange-Rate Policy with Domestic Monetary Policy • Exchange-rate policy is integral to any ...
... Linking Exchange-Rate Policy with Domestic Monetary Policy • Exchange-rate policy is integral to any ...
module 31 review
... 4. Which of the following is a goal of monetary policy? a. zero inflation b. deflation c. price stability d. increased potential output e. decreased actual real GDP 5. When implementing monetary policy, the Federal Reserve attempts to achieve a. an explicit target inflation rate. b. zero inflation. ...
... 4. Which of the following is a goal of monetary policy? a. zero inflation b. deflation c. price stability d. increased potential output e. decreased actual real GDP 5. When implementing monetary policy, the Federal Reserve attempts to achieve a. an explicit target inflation rate. b. zero inflation. ...
Currency Regimes in Poland During European Integration Process
... organized by exchange offices. On this market was in force free exchange rate. But in comparison to the official rate the difference was surprisingly small. The exchange rate was intended to fulfill two conditions. The first one was to facilitate inflation reduction. The other one was to make Polish ...
... organized by exchange offices. On this market was in force free exchange rate. But in comparison to the official rate the difference was surprisingly small. The exchange rate was intended to fulfill two conditions. The first one was to facilitate inflation reduction. The other one was to make Polish ...
Exchange Rate Arrangements
... adjustment, for it helps bring up consumption. It can also be viewed as a catch-up effect. This process will continue as long as firms remain profitable, and I am of the opinion that they will. The second adjustment also regards labor costs, but not in terms of salary. By this, I am referring to the ...
... adjustment, for it helps bring up consumption. It can also be viewed as a catch-up effect. This process will continue as long as firms remain profitable, and I am of the opinion that they will. The second adjustment also regards labor costs, but not in terms of salary. By this, I am referring to the ...
Topics Session 2
... – Current account—record of all recurring trade in merchandise and services, and humanitarian aid • Trade deficit—negative current account • Trade surplus—positive current account – Capital account—record of all long-term direct investment, portfolio investment, and capital flows ...
... – Current account—record of all recurring trade in merchandise and services, and humanitarian aid • Trade deficit—negative current account • Trade surplus—positive current account – Capital account—record of all long-term direct investment, portfolio investment, and capital flows ...
14.02 Principles of Macroeconomics Problem Set 5 Fall 2005
... instead of to the left. 2) Tradable goods prices are a better measure of the degree of openness of an economy than trade volume. True. The volume of trade takes into account the size of exports and imports. However, it does not fully take into account the change in behavior of the domestic market (p ...
... instead of to the left. 2) Tradable goods prices are a better measure of the degree of openness of an economy than trade volume. True. The volume of trade takes into account the size of exports and imports. However, it does not fully take into account the change in behavior of the domestic market (p ...
Venzuela_en.pdf
... a growth rate of about 7.5% thanks to increases in both external and domestic demand. This higher demand, together with supply limitations in some sectors and upward trends in world commodity markets, led to inflationary pressure in the country’s economy (8.6% in the 12 months to November 2007). For ...
... a growth rate of about 7.5% thanks to increases in both external and domestic demand. This higher demand, together with supply limitations in some sectors and upward trends in world commodity markets, led to inflationary pressure in the country’s economy (8.6% in the 12 months to November 2007). For ...
Chapter 12
... have to be drawn to show the different combinations of interest rates and national income to achieve the equilibrium exchange rate. As the level of domestic economic activity increases, the demand for imports would also increase but it is unlikely that this would be accompanied by any increase in th ...
... have to be drawn to show the different combinations of interest rates and national income to achieve the equilibrium exchange rate. As the level of domestic economic activity increases, the demand for imports would also increase but it is unlikely that this would be accompanied by any increase in th ...
Microfinanças: quais os resultados dos programas?
... •GDP increasing for the second consecutive trimester; •Maintainance of pre-crisis levels of credit in the economy; •This level is manteined by both foreign and private banks. and is increased in estate owned commercial banks •Supervised MFIs virtually non-affected. •Coooperative system expanded cred ...
... •GDP increasing for the second consecutive trimester; •Maintainance of pre-crisis levels of credit in the economy; •This level is manteined by both foreign and private banks. and is increased in estate owned commercial banks •Supervised MFIs virtually non-affected. •Coooperative system expanded cred ...
第七部分
... • If market participants are unsure about the future direction of macroeconomic policies, sterilized intervention may give an ...
... • If market participants are unsure about the future direction of macroeconomic policies, sterilized intervention may give an ...
Answer Key
... purchase government debt it creates more money than is demanded at the equilibrium interest rate. As people sell the excess money for foreign money, the central bank must buy this money with its reserves to avoid a depreciation. Eventually it will run out of foreign reserves and be forced to allow t ...
... purchase government debt it creates more money than is demanded at the equilibrium interest rate. As people sell the excess money for foreign money, the central bank must buy this money with its reserves to avoid a depreciation. Eventually it will run out of foreign reserves and be forced to allow t ...
FT 0623 2008 How Imbalances Led to Crunch and Inflation
... Interventionist policies aimed at sustaining export competitiveness expand economies. The results normally include rapid rises in net exports, low interest rates, aimed at curbing the capital inflow, and expansion in the monetary base, despite attempts at sterilisation. The Chinese economy is overhe ...
... Interventionist policies aimed at sustaining export competitiveness expand economies. The results normally include rapid rises in net exports, low interest rates, aimed at curbing the capital inflow, and expansion in the monetary base, despite attempts at sterilisation. The Chinese economy is overhe ...