Global Pricing
... To minimize risks, firms use hedging, swaps or other financial instruments There may be additional constrains such as inability to freely convert local currency to other currencies, limitations on foreign exchange transfers etc ...
... To minimize risks, firms use hedging, swaps or other financial instruments There may be additional constrains such as inability to freely convert local currency to other currencies, limitations on foreign exchange transfers etc ...
algierslessprocyclical
... the 2001-2007 expansion to run budget surpluses. Instead they ran up a lot of debt. Thus by 2010, they felt constrained by that debt to launch fiscal tightening at a time when unemployment was still very high. That describes a decade of fiscal policy that was procyclical, that is, destabilizing. Bia ...
... the 2001-2007 expansion to run budget surpluses. Instead they ran up a lot of debt. Thus by 2010, they felt constrained by that debt to launch fiscal tightening at a time when unemployment was still very high. That describes a decade of fiscal policy that was procyclical, that is, destabilizing. Bia ...
AP review wk 3
... – A high inflation rate forces firms to change prices more often than they would if the price level was more or less stable. – The changing of a listed price has a “real” cost. ...
... – A high inflation rate forces firms to change prices more often than they would if the price level was more or less stable. – The changing of a listed price has a “real” cost. ...
Mankiw 5e Chapter 4
... A. people start spending too much money. B. firms demand higher and higher prices for their goods. C. governments are forced to print money to finance their spending. D. fiscal deficits are small. ...
... A. people start spending too much money. B. firms demand higher and higher prices for their goods. C. governments are forced to print money to finance their spending. D. fiscal deficits are small. ...
The Yen and the Japanese Economy, 2004
... fall into place in 2004. First, stock price increases may generate a virtuous cycle: Wealth effects due to stock price increases generate more spending among individuals and corporations, leading to higher profits, higher stock prices, and further wealth effects. Higher stock prices would also help ...
... fall into place in 2004. First, stock price increases may generate a virtuous cycle: Wealth effects due to stock price increases generate more spending among individuals and corporations, leading to higher profits, higher stock prices, and further wealth effects. Higher stock prices would also help ...
Currency Crises in Argentina - Asociación Argentina de Economía
... facilitates investment and international trade. Crucially, the cost of defending a fixed exchange rate increases when people expect that the regime will be abandoned. Models of self-fulfilling attacks imply that good fundamentals are not enough neither to prevent attacks, nor to avoid a currency cri ...
... facilitates investment and international trade. Crucially, the cost of defending a fixed exchange rate increases when people expect that the regime will be abandoned. Models of self-fulfilling attacks imply that good fundamentals are not enough neither to prevent attacks, nor to avoid a currency cri ...
Unemployment, Inflation, and Interest Rates
... call it deflation, something that sounds good but is very bad. Third, there is no reason to expect the inflation rate to be zero. The inflation rate has averaged around 2% or 3% since the 1990's, and that is the rate goal of most economies. The lower and more stable inflation is in a country, the gr ...
... call it deflation, something that sounds good but is very bad. Third, there is no reason to expect the inflation rate to be zero. The inflation rate has averaged around 2% or 3% since the 1990's, and that is the rate goal of most economies. The lower and more stable inflation is in a country, the gr ...
Escaping from a Liquidity Trap and Deflation: The Foolproof Way
... back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liquidity trap promises high inflation in the future, the private sector may doubt eit ...
... back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liquidity trap promises high inflation in the future, the private sector may doubt eit ...
ethiopian commodity exchange - Making The Connection: Value
... Trading volume in 2010-11 totaled 504,000 tons for coffee, sesame seed, pea bean and maize, with a trading value of US$ 1.2 billion. On the ground, ECX has a network of over 50 warehouses spread across 17 sites, with a total storage capacity of 300,000 tons. Crops delivered to the warehouses are gra ...
... Trading volume in 2010-11 totaled 504,000 tons for coffee, sesame seed, pea bean and maize, with a trading value of US$ 1.2 billion. On the ground, ECX has a network of over 50 warehouses spread across 17 sites, with a total storage capacity of 300,000 tons. Crops delivered to the warehouses are gra ...
Failing Institutions Are at the Core of the Euro
... negatively reinforcing relationship. However, not all implications of a common currency are negative. A stable exchange rate means less uncertainty about how much the currency will be worth, making it a more ...
... negatively reinforcing relationship. However, not all implications of a common currency are negative. A stable exchange rate means less uncertainty about how much the currency will be worth, making it a more ...
Identification of US Monetary Policy Shocks
... regarding the behavior of exchange rates, UIP, both conditional and unconditional, fails during the Volcker era but tends to hold during the post-Volcker era. The conditional excess returns on foreign currency following US monetary shocks are positive in the Volcker era and close to zero in the pos ...
... regarding the behavior of exchange rates, UIP, both conditional and unconditional, fails during the Volcker era but tends to hold during the post-Volcker era. The conditional excess returns on foreign currency following US monetary shocks are positive in the Volcker era and close to zero in the pos ...
SB-FRS 29 Financial Reporting in Hyperinflationary Economies
... depreciation the change in a general price index from the date of acquisition to the end of the reporting period. For example, property, plant and equipment, inventories of raw materials and merchandise, goodwill, patents, trademarks and similar assets are restated from the dates of their purchase. ...
... depreciation the change in a general price index from the date of acquisition to the end of the reporting period. For example, property, plant and equipment, inventories of raw materials and merchandise, goodwill, patents, trademarks and similar assets are restated from the dates of their purchase. ...
International Monetary System, 1870-1973
... foreigners think that an economy can not repay its debts and therefore make them stop lending, causing a financial crisis. A large current account surplus can cause protectionist or other political pressure by foreign governments (e.g., pressure on Japan in the 1980s and China in the 2000s). ...
... foreigners think that an economy can not repay its debts and therefore make them stop lending, causing a financial crisis. A large current account surplus can cause protectionist or other political pressure by foreign governments (e.g., pressure on Japan in the 1980s and China in the 2000s). ...
Low Interest Rate Policy and the Use of Reserve Requirements in
... The bursting of the dot-com bubble at the turn of the millennium and the current Great Recession have been followed by substantial interest rate cuts in major advanced economies to stabilize financial markets and step-up growth. Not surprisingly, in our integrated global financial system monetary po ...
... The bursting of the dot-com bubble at the turn of the millennium and the current Great Recession have been followed by substantial interest rate cuts in major advanced economies to stabilize financial markets and step-up growth. Not surprisingly, in our integrated global financial system monetary po ...
DP2001/03 Would adopting the Australian dollar provide superior monetary policy in New Zealand?
... Rather than tackle all of this relatively large and complex problem we have focused our attention on the monetary policy channel, given that seems to be the area that has generated most of the debate. This allows us to simplify the problem considerably. The standard FPS model is used to represent th ...
... Rather than tackle all of this relatively large and complex problem we have focused our attention on the monetary policy channel, given that seems to be the area that has generated most of the debate. This allows us to simplify the problem considerably. The standard FPS model is used to represent th ...
Monetary Policy Council Medium-Term Strategy of Monetary Policy
... health care systems. These positive processes have been also accompanied by some negative developments, such as the rapid growth of domestic demand in relation to GDP since 1995/1996. This disproportion was induced by rapidly growing real wages, extensive lending and a relatively high fiscal deficit ...
... health care systems. These positive processes have been also accompanied by some negative developments, such as the rapid growth of domestic demand in relation to GDP since 1995/1996. This disproportion was induced by rapidly growing real wages, extensive lending and a relatively high fiscal deficit ...
PDF Download
... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
Chapter 6
... The purchasing power of the money people hold goes down after devaluation so that people more likely to save and less likely to spend their incomes. ...
... The purchasing power of the money people hold goes down after devaluation so that people more likely to save and less likely to spend their incomes. ...
NBER WORKING PAPER SERIES THE U.S. CURRENT ACCOUNT AND THE DOLLAR
... U.S. gross liabilities are denoted in dollars, and so their value in dollars are unaffected by a dollar depreciation. Valuation effects would obviously be very different when, as is typically the case for emerging countries, gross positions were smaller, and liabilities were denominated in foreign c ...
... U.S. gross liabilities are denoted in dollars, and so their value in dollars are unaffected by a dollar depreciation. Valuation effects would obviously be very different when, as is typically the case for emerging countries, gross positions were smaller, and liabilities were denominated in foreign c ...
TESTING FOR PURCHASING POWER PARITY FOR
... exchange rate turning back to a constant average is consistent with PPP, whereas PPP does not hold in case of a non-stationary real exchange rate. If real exchange rate is constant, then it does not move off the average value, making PPP hypothesis valid (Sarno and Taylor, 2003). It is evident that ...
... exchange rate turning back to a constant average is consistent with PPP, whereas PPP does not hold in case of a non-stationary real exchange rate. If real exchange rate is constant, then it does not move off the average value, making PPP hypothesis valid (Sarno and Taylor, 2003). It is evident that ...
The Data of Macroeconomics
... • Gross Domestic Product (GDP) measures both total income and total expenditure on the economy’s output of goods & services. • Nominal GDP values output at current prices; real GDP values output at constant prices. Changes in output affect both measures, but changes in prices only affect nominal GDP ...
... • Gross Domestic Product (GDP) measures both total income and total expenditure on the economy’s output of goods & services. • Nominal GDP values output at current prices; real GDP values output at constant prices. Changes in output affect both measures, but changes in prices only affect nominal GDP ...
exchange rate volatility and trade
... the supply of traded goods. One must take into account the ability of the firm to reduce its exposure to exchange rate risk and the way movements in exchange rates are related to those in other economic variables. Exchange risk is highly diversifiable and may be relatively minor compared to the bene ...
... the supply of traded goods. One must take into account the ability of the firm to reduce its exposure to exchange rate risk and the way movements in exchange rates are related to those in other economic variables. Exchange risk is highly diversifiable and may be relatively minor compared to the bene ...
References - Economic Growth and Distribution:On the Nature and
... However simplistic5, this view paves the way to a different theory on how the target rate of return actually implemented into firms’ pricing strategy, rs, is determined. Indeed, as clearly pointed out by Blecker (1999), Kalecki’s theory of mark-up pricing can be extended to an economy exposed to ...
... However simplistic5, this view paves the way to a different theory on how the target rate of return actually implemented into firms’ pricing strategy, rs, is determined. Indeed, as clearly pointed out by Blecker (1999), Kalecki’s theory of mark-up pricing can be extended to an economy exposed to ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119.Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin (or profit) in trading, or else the margin may be recovered in the form of a commission or in some other way. Different rates may also be quoted for cash (usually notes only), a documentary form (such as traveler's cheques) or electronically (such as a credit card purchase). The higher rate on documentary transactions has been justified to compensate for the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.