Interest Rate and the Exchange Rate: A Non
... spending. This tends to increase the market interest rate, thus raising the opportunity cost of holding money and depreciating the currency. In a similar vein, for a given level of deposits, the fall in bank credit associated with the output e¤ect implies that banks will lend more to the government. ...
... spending. This tends to increase the market interest rate, thus raising the opportunity cost of holding money and depreciating the currency. In a similar vein, for a given level of deposits, the fall in bank credit associated with the output e¤ect implies that banks will lend more to the government. ...
The Concepts, Consequences, and Determinants of Currency
... macroeconomic policy autonomy and decreasing competitiveness of the export and importcompeting sectors. Meanwhile, there is also a significant political benefit—of an increase in the issuing state’s international power.10 The economic perspective One of the most familiar benefits of issuing an inter ...
... macroeconomic policy autonomy and decreasing competitiveness of the export and importcompeting sectors. Meanwhile, there is also a significant political benefit—of an increase in the issuing state’s international power.10 The economic perspective One of the most familiar benefits of issuing an inter ...
Beyond the liquidity trap: ineffectiveness of monetary policy as an
... The model does not describe situations which emerge in case of interest rates below or above the equilibrium interest rates. It is only assumed here that interest rate above the level specified by eq. 12 implies that aggregate demand is insufficient to uphold current production and it results in re ...
... The model does not describe situations which emerge in case of interest rates below or above the equilibrium interest rates. It is only assumed here that interest rate above the level specified by eq. 12 implies that aggregate demand is insufficient to uphold current production and it results in re ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... 2. Yeager (1976, 385) places the total of Marshall Plan aid through the end of 1951 at nearly $1 1.5 billion. “At its peak,” he writes, “the aid program was providing most recipient countries with additional goods and services worth only 3 or 4 percent of their own total production.” These are very ...
... 2. Yeager (1976, 385) places the total of Marshall Plan aid through the end of 1951 at nearly $1 1.5 billion. “At its peak,” he writes, “the aid program was providing most recipient countries with additional goods and services worth only 3 or 4 percent of their own total production.” These are very ...
What Explains Movements in the Peso/Dollar
... CDS-Chile represents 5-year sovereign credit default swap spread (CDS) for Chile. It measures the perceived risks of investing in Chilean securities. ESP-DEU is the interest spread between 10-year Spanish and German government bonds. It serves as a proxy for financial distress in Europe. VIX is the ...
... CDS-Chile represents 5-year sovereign credit default swap spread (CDS) for Chile. It measures the perceived risks of investing in Chilean securities. ESP-DEU is the interest spread between 10-year Spanish and German government bonds. It serves as a proxy for financial distress in Europe. VIX is the ...
Globalization of the Chinese Yuan
... affected by the global financial crisis than US and European countries. Therefore, liberalization of China's capital account will take a considerable amount of time. - Since China has fewer investment products than other major industrial countries, the country provides few channels for investors to ...
... affected by the global financial crisis than US and European countries. Therefore, liberalization of China's capital account will take a considerable amount of time. - Since China has fewer investment products than other major industrial countries, the country provides few channels for investors to ...
Exchange Control in Italy and Bulgaria in the Interwar Period
... to improve the balance of payments, other interference included active export encouragement and import restrictions. Given the complexity of this topic, we will start drawing up a parallel chronology of events in Italy and Bulgaria supported by statistical data. The purpose of this paper is to analy ...
... to improve the balance of payments, other interference included active export encouragement and import restrictions. Given the complexity of this topic, we will start drawing up a parallel chronology of events in Italy and Bulgaria supported by statistical data. The purpose of this paper is to analy ...
Presentation by Liqing Zhang, Zhigang Huang
... liberalization made some progresses in the past few years, providing a legal channel for short-term capital inflows. Meanwhile, a large amount of short-term capital flowed into China through kinds of illegal channel. We focus our eyes on short-term capital inflows in this paper, which is also called ...
... liberalization made some progresses in the past few years, providing a legal channel for short-term capital inflows. Meanwhile, a large amount of short-term capital flowed into China through kinds of illegal channel. We focus our eyes on short-term capital inflows in this paper, which is also called ...
Purchasing Power Parity and Country Characteristics
... The purpose of this paper is to move beyond the developed/developing country dichotomy to investigate the role of individual country characteristics on PPP. This requires a sample that includes both developed and developing countries because the former contain too little variation to address the qu ...
... The purpose of this paper is to move beyond the developed/developing country dichotomy to investigate the role of individual country characteristics on PPP. This requires a sample that includes both developed and developing countries because the former contain too little variation to address the qu ...
NBER WORKING PAPERS SERIES STABILIZATION AND POLICIES IN CENTRAL AND EASTERN EUROPE:
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
... there are indeed some similarities between Eastern European and Latin American economic problems. The discussion concentrates on four specific areas: (1) monetary overhang and repressed inflation; (2) fiscal imbalances and inflationary pressures; (3) deindexation and inflationary inertia; and (4) th ...
Some perspectives on past recessions ARTICLES
... which was seeking to accumulate large gold holdings), many ...
... which was seeking to accumulate large gold holdings), many ...
Jyske Forskelle
... 1. Costs in Denmark and abroad are paid by the orderer (OUR). In connection with payments covered by the Danish Payment Services Act, OUR can only be used in some cases. Costs abroad may be calculated as a percentage of the amount. This amount may be large. Therefore we recommend that you include t ...
... 1. Costs in Denmark and abroad are paid by the orderer (OUR). In connection with payments covered by the Danish Payment Services Act, OUR can only be used in some cases. Costs abroad may be calculated as a percentage of the amount. This amount may be large. Therefore we recommend that you include t ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... Corden (1972) in his study of monetary integration. Wage behavior abroad determines the specific form which foreign disturbances take in the domestic economy, while wage behavior at home determines the difference which the choice of regime makes to the behavior of domestic output. 2 . The trade patt ...
... Corden (1972) in his study of monetary integration. Wage behavior abroad determines the specific form which foreign disturbances take in the domestic economy, while wage behavior at home determines the difference which the choice of regime makes to the behavior of domestic output. 2 . The trade patt ...
Chapter 26 Business Cycles, Unemployment, and Inflation
... Quite apart from any idea of consideration for others, unemployment is economic waste: A unit of labor resource that could be engaged in production is sitting idle. The “GDP gap” is the difference between what the economy could produce at its potential GDP and what it is producing, its actual GDP. T ...
... Quite apart from any idea of consideration for others, unemployment is economic waste: A unit of labor resource that could be engaged in production is sitting idle. The “GDP gap” is the difference between what the economy could produce at its potential GDP and what it is producing, its actual GDP. T ...
Document
... Also imposing policy conditionality in the process Developing countries with balance of payments crises caused by fixed exchange rates or changes in global economic conditions face structural adjustment under the supervision of IMF and World Bank Effectiveness of these structural adjustment prog ...
... Also imposing policy conditionality in the process Developing countries with balance of payments crises caused by fixed exchange rates or changes in global economic conditions face structural adjustment under the supervision of IMF and World Bank Effectiveness of these structural adjustment prog ...
PDF
... descriptive character. This perspective was used for example by Kulawik [6] and Danilowska [7]. The aim of the paper is to examine the influence of macroeconomic determinants on the scope of taking of bank credits by farmers. The analysis in the paper should answer the question which of main macroec ...
... descriptive character. This perspective was used for example by Kulawik [6] and Danilowska [7]. The aim of the paper is to examine the influence of macroeconomic determinants on the scope of taking of bank credits by farmers. The analysis in the paper should answer the question which of main macroec ...
FAULTY METHODOLOGY GENERATES FAULTY
... of other factors that can affect URS in addition to union density. Examples are demographic structure (the youth and women shares of the labour force), the real or relative minimum wage, unemployment insurance policy parameters, etc. By omitting these factors (which can vary widely from year to year ...
... of other factors that can affect URS in addition to union density. Examples are demographic structure (the youth and women shares of the labour force), the real or relative minimum wage, unemployment insurance policy parameters, etc. By omitting these factors (which can vary widely from year to year ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... While the original version of the paper merges public finance and open economy aspects, in some regards it omits some aspects of international finance that might be important. For instance, is trade openness corre- ...
... While the original version of the paper merges public finance and open economy aspects, in some regards it omits some aspects of international finance that might be important. For instance, is trade openness corre- ...
The New Zealand experience of short- and drivers and policy implications
... These choices of parameters exclude very short cycles but not very long ones. For all countries in our sample there is sufficient medium-run variability in the real exchange rate for a handful of exchange rate cycles to be picked up. 6 Our cyclical exchange rate volatility measures are calculated us ...
... These choices of parameters exclude very short cycles but not very long ones. For all countries in our sample there is sufficient medium-run variability in the real exchange rate for a handful of exchange rate cycles to be picked up. 6 Our cyclical exchange rate volatility measures are calculated us ...
Real interest rate
... Try to increase interest rates with the rate of inflation. This is not an exact science. Creditors/lenders must make sure that the nominal rate of interest is greater than anticipated inflation. It is the unanticipated inflation ...
... Try to increase interest rates with the rate of inflation. This is not an exact science. Creditors/lenders must make sure that the nominal rate of interest is greater than anticipated inflation. It is the unanticipated inflation ...
International trade
... The balance of trade depends not only on the physical quantities of exports and imports, X and Y (exports and imports measured in constant prices), but also on the price of exports divided by the price of imports. This ratio is known as the terms of trade. If the terms of trade fall, for example, ex ...
... The balance of trade depends not only on the physical quantities of exports and imports, X and Y (exports and imports measured in constant prices), but also on the price of exports divided by the price of imports. This ratio is known as the terms of trade. If the terms of trade fall, for example, ex ...
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.