Cross-Currency Exposures to the Swiss Franc*
... in the sample (see also Lane 2013). It shows the F XAGG index defined by equation (9). In addition, it reports a decomposition of F XAGG between the net currency exposures embedded in the foreign asset position and foreign liability positions (each scaled by total foreign assets plus liabilities), p ...
... in the sample (see also Lane 2013). It shows the F XAGG index defined by equation (9). In addition, it reports a decomposition of F XAGG between the net currency exposures embedded in the foreign asset position and foreign liability positions (each scaled by total foreign assets plus liabilities), p ...
Economic environment - World Trade Organization
... The Government's medium-term target is to re-balance spending towards capital investment by increasing its share from around 20% to 30%. Due to low investment levels the Government announced in its 2009 Budget the "fast tracking" of capital projects through its Public Sector Investment Programme (PS ...
... The Government's medium-term target is to re-balance spending towards capital investment by increasing its share from around 20% to 30%. Due to low investment levels the Government announced in its 2009 Budget the "fast tracking" of capital projects through its Public Sector Investment Programme (PS ...
Main points for the Final Exam—ECO 3202 Chapter 10 Main Points
... Mundell-Fleming—Study the Mundell-Fleming model, now with net exports NX(e). How do changes in government policy affect the economy. Also look at the effects of trade policy on the economy . Risk premium—Why do small open economies face interest rates that differ from the world rate r*. What makes a ...
... Mundell-Fleming—Study the Mundell-Fleming model, now with net exports NX(e). How do changes in government policy affect the economy. Also look at the effects of trade policy on the economy . Risk premium—Why do small open economies face interest rates that differ from the world rate r*. What makes a ...
Unit F582 - The national and international economy
... qualifications to meet the needs of candidates of all ages and abilities. OCR qualifications include AS/A Levels, Diplomas, GCSEs, Cambridge Nationals, Cambridge Technicals, Functional Skills, Key Skills, Entry Level qualifications, NVQs and vocational qualifications in areas such as IT, business, l ...
... qualifications to meet the needs of candidates of all ages and abilities. OCR qualifications include AS/A Levels, Diplomas, GCSEs, Cambridge Nationals, Cambridge Technicals, Functional Skills, Key Skills, Entry Level qualifications, NVQs and vocational qualifications in areas such as IT, business, l ...
Lecture XIII
... economy, then mainly as a consequence of fluctuations in the money supply, induced by the monetary authorities ...
... economy, then mainly as a consequence of fluctuations in the money supply, induced by the monetary authorities ...
NBER WORKING PAPER SERIES Richard Clarida
... country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this work (particularly the work that is purely analytical), nominal price sett ...
... country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this work (particularly the work that is purely analytical), nominal price sett ...
Chapter 12 Appendix A
... P0 = the current price of the stock, where the zero subscript refers to time period zero, that is, the present Dt = the dividend at time paid at time t rs = the required return for the stock Future dividends should be positively related to overall economic activity and thus to aggregate output, whil ...
... P0 = the current price of the stock, where the zero subscript refers to time period zero, that is, the present Dt = the dividend at time paid at time t rs = the required return for the stock Future dividends should be positively related to overall economic activity and thus to aggregate output, whil ...
Macroeconomic Issues and Vulnerabilities in the Global Economy: A
... Stern School of Business New York University September 2016 ...
... Stern School of Business New York University September 2016 ...
Switzerland at the heart of Europe
... into the Swiss franc. From August 2007 until August 2011, the Swiss currency appreciated by about 40% in real effective terms. Yields on Swiss Confederation short-term debt turned negative and have remained negative ever since. Confronted with such dramatic developments, the Swiss National Bank (SNB ...
... into the Swiss franc. From August 2007 until August 2011, the Swiss currency appreciated by about 40% in real effective terms. Yields on Swiss Confederation short-term debt turned negative and have remained negative ever since. Confronted with such dramatic developments, the Swiss National Bank (SNB ...
The Simplest Model of Financial Crisis
... economy, perturbed by noise. This is the simplest way to integrate chaos theory to model financial crises, causing business cycles to emerge. Unlike standard models, the proposed theory proves that monetary policy can destabilize financial markets by raising interest rates too high, when preventing ...
... economy, perturbed by noise. This is the simplest way to integrate chaos theory to model financial crises, causing business cycles to emerge. Unlike standard models, the proposed theory proves that monetary policy can destabilize financial markets by raising interest rates too high, when preventing ...
The Short Run
... 3. Another way of viewing is that it is the percentage difference between actual and potential output. It’s positive when the economy is booming, and negative when the economy is slumping. A recession is a period when actual output falls below potential, so that short-run output becomes negative. 4 ...
... 3. Another way of viewing is that it is the percentage difference between actual and potential output. It’s positive when the economy is booming, and negative when the economy is slumping. A recession is a period when actual output falls below potential, so that short-run output becomes negative. 4 ...
The Paradox of Capital - Eswar Prasad
... nowhere near the levels predicted by theory. Financial globalExamining the paradox ization has, of course, surged in the past decade and a half. What then has become of the empirical paradox that Lucas Perhaps the Lucas paradox isn’t such a paradox if one digs identified? Has increasing financial in ...
... nowhere near the levels predicted by theory. Financial globalExamining the paradox ization has, of course, surged in the past decade and a half. What then has become of the empirical paradox that Lucas Perhaps the Lucas paradox isn’t such a paradox if one digs identified? Has increasing financial in ...
Advances in Environmental Biology Crises, Governments
... most countries were fundamental imbalance . The scarcity of dollars in the early years after the war has caused difficulties for many countries. Inevitably the foreign exchange restrictions and controls on currency and receipts and payments powers. Hyperinflation lot as well prices and the main obst ...
... most countries were fundamental imbalance . The scarcity of dollars in the early years after the war has caused difficulties for many countries. Inevitably the foreign exchange restrictions and controls on currency and receipts and payments powers. Hyperinflation lot as well prices and the main obst ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS: AN INTEREST-RATE-BASED EXIT STRATEGY Stephanie Schmitt-Grohé
... rates are not doing much to push expected inflation or aggregate demand higher. The central premise of this paper is that the reversal of sign in the relationship between interest rates and expected inflation also operates in the upward direction. That is, that in a liquidity trap, an increase in no ...
... rates are not doing much to push expected inflation or aggregate demand higher. The central premise of this paper is that the reversal of sign in the relationship between interest rates and expected inflation also operates in the upward direction. That is, that in a liquidity trap, an increase in no ...
° Money and Inflation Introduction Quantity Equation elQuantity
... depnds on expected future inflation. • So he nominal interest rate moves one for-one with the expected inflation rate. ...
... depnds on expected future inflation. • So he nominal interest rate moves one for-one with the expected inflation rate. ...
Economic Fluctuations, Unemployment, and Inflation
... Here we present the annual rate of inflation for the last 45 years. Between 1953 and 1965, prices increased at an annual rate of only 1.3%. In contrast, the inflation rate averaged 9.2% during the 19731981 era, reaching double-digit rates during several years. Since 1982, the rate of inflation has b ...
... Here we present the annual rate of inflation for the last 45 years. Between 1953 and 1965, prices increased at an annual rate of only 1.3%. In contrast, the inflation rate averaged 9.2% during the 19731981 era, reaching double-digit rates during several years. Since 1982, the rate of inflation has b ...
exchange rate
... The Open Economy with Flexible Exchange Rates The Market For Foreign Exchange TABLE 20.2 Some Private Buyers and Sellers in International Exchange Markets: United States and Great Britain The Demand for Pounds (Supply of Dollars) ...
... The Open Economy with Flexible Exchange Rates The Market For Foreign Exchange TABLE 20.2 Some Private Buyers and Sellers in International Exchange Markets: United States and Great Britain The Demand for Pounds (Supply of Dollars) ...
Financial Exuberance: Saving Deposits, Fiscal Deficits and Interest Rates In India
... h e 1990s saw major institutional reforms in the Indian financial financing high fiscal deficits forces the RBI sector. The stock markets. commer- to impose high reserve ratios on bank depocial banks, non-banking financial institu- sits, which in turn makes it necessary for tions, insurance companie ...
... h e 1990s saw major institutional reforms in the Indian financial financing high fiscal deficits forces the RBI sector. The stock markets. commer- to impose high reserve ratios on bank depocial banks, non-banking financial institu- sits, which in turn makes it necessary for tions, insurance companie ...
PP Slides
... assumes rather than explains comparative advantage. Classical model does not explain why labor productivities differ between nations. It is these differences which are the source of comparative advantage. Ignores how relative resource endowments change as countries grow (constant costs assumptio ...
... assumes rather than explains comparative advantage. Classical model does not explain why labor productivities differ between nations. It is these differences which are the source of comparative advantage. Ignores how relative resource endowments change as countries grow (constant costs assumptio ...
Finding the Equilibrium Real Interest Rate in a Fog of Policy
... This paper is based in part on results presented at the NABE Panel ‘‘The Equilibrium Real Interest Rate—Theory, Measurement, and Use in Monetary Policy’’ organized by George Kahn at the ASSA meeting in San Francisco on January 3, 2016. *John B. Taylor is the George P. Shultz Senior Fellow in Economi ...
... This paper is based in part on results presented at the NABE Panel ‘‘The Equilibrium Real Interest Rate—Theory, Measurement, and Use in Monetary Policy’’ organized by George Kahn at the ASSA meeting in San Francisco on January 3, 2016. *John B. Taylor is the George P. Shultz Senior Fellow in Economi ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... perceived default risks. In turn, in relation to the wider economy, the sovereign risk premium influences the cost of funding for the domestic banking system, even if some larger corporates might be able to obtain international funding at a lower cost. The analysis in this chapter also indicates tha ...
... perceived default risks. In turn, in relation to the wider economy, the sovereign risk premium influences the cost of funding for the domestic banking system, even if some larger corporates might be able to obtain international funding at a lower cost. The analysis in this chapter also indicates tha ...
Macroeconomics, Spring 2009, Exam 3, several versions
... begins in a macroeconomic equilibrium, except that the money supply is growing for many years at the rate of 5% per year more than is needed, so prices have been rising at the rate of 5% per year. The economy is at full employment. The “real” interest rate, r, is about 4%. Now the experiment begins. ...
... begins in a macroeconomic equilibrium, except that the money supply is growing for many years at the rate of 5% per year more than is needed, so prices have been rising at the rate of 5% per year. The economy is at full employment. The “real” interest rate, r, is about 4%. Now the experiment begins. ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... In the course of my argument I will make a distinction between “systemic” and “unconditional” bailout guarantees. The former are granted only if a critical mass of agents defaults. The latter are granted on an idiosyncratic basis whenever there is an individual default. I will argue that if authorit ...
... In the course of my argument I will make a distinction between “systemic” and “unconditional” bailout guarantees. The former are granted only if a critical mass of agents defaults. The latter are granted on an idiosyncratic basis whenever there is an individual default. I will argue that if authorit ...
Unit 3 Notes - Phoenix Union High School District
... an injection of new money into the economy. • Round 2: The $10 is income for resource suppliers and with an MPC = 0.80, households spend $8 and save $2. • Round 3: The $8 of new spending is income for other households and they spend 80 percent, or $6.40 and save $1.60. • Round 4: The new $6.40 is in ...
... an injection of new money into the economy. • Round 2: The $10 is income for resource suppliers and with an MPC = 0.80, households spend $8 and save $2. • Round 3: The $8 of new spending is income for other households and they spend 80 percent, or $6.40 and save $1.60. • Round 4: The new $6.40 is in ...
NBER WORKING PAPER SERIES STABILIZATION POLICIES IN OPEN ECONOMIES Richard C. Marston
... the trade balance, so no foreign disturbance can affect the economy. This strong conclusion about insulation has often been used as an argument for flexible rates, even though it is very sensitive to assumptions about capital mobility. ...
... the trade balance, so no foreign disturbance can affect the economy. This strong conclusion about insulation has often been used as an argument for flexible rates, even though it is very sensitive to assumptions about capital mobility. ...