Capital Mobility and the Thai Crisis*
... as central to achievement of that outcome. Prior to 1990, financial capital movements into and out of Thailand had been subject to extensive controls, a policy which had allowed Thailand a significant degree of monetary independence in spite of its fixed exchange rate (Warr and Nidhiprabha 1996). B ...
... as central to achievement of that outcome. Prior to 1990, financial capital movements into and out of Thailand had been subject to extensive controls, a policy which had allowed Thailand a significant degree of monetary independence in spite of its fixed exchange rate (Warr and Nidhiprabha 1996). B ...
NBER WORKING PAPER SERIES STRICT DOLLARIZATION AND ECONOMIC PERFORMANCE: AN EMPIRICAL INVESTIGATION
... reason for focusing on strictly dollarized countries is rather simple: to a large extent the policy debate in the emerging world is whether these countries ought to adopt an “advanced” country's currency, as a way of achieving credibility. For Argentina, for instance, it is very different to delegat ...
... reason for focusing on strictly dollarized countries is rather simple: to a large extent the policy debate in the emerging world is whether these countries ought to adopt an “advanced” country's currency, as a way of achieving credibility. For Argentina, for instance, it is very different to delegat ...
THE THEORY OF THE GLOBAL “SAVINGS GLUT”
... The notion of savings being exclusively a function of the interest rate (leaving aside the exchange rate) belongs to pre-Keynesian economics. Indeed on the basis of the assumption that both savings and investment were functions exclusively of the interest rate, pre-Keynesian economics concluded that ...
... The notion of savings being exclusively a function of the interest rate (leaving aside the exchange rate) belongs to pre-Keynesian economics. Indeed on the basis of the assumption that both savings and investment were functions exclusively of the interest rate, pre-Keynesian economics concluded that ...
Export Supply and Import Demand Models for
... real income. After estimating the export and import demand functions, economic inferences are being made. For instance, a well-known statement in the trade literature, called MarshallLerner-(Robinson) Condition says that ‘a depreciation or devaluation of a country’s currency will improve its curren ...
... real income. After estimating the export and import demand functions, economic inferences are being made. For instance, a well-known statement in the trade literature, called MarshallLerner-(Robinson) Condition says that ‘a depreciation or devaluation of a country’s currency will improve its curren ...
The Exchange Rate and the Interest Rate Differential in Kenya: A
... The paper analyses the relationship between the real exchange rate and the real interest rate differential on one hand and the implications they have on portfolio capital flows on the other. It shows that the nominal exchange rate deviates from the perceived long-run equilibrium level determined by ...
... The paper analyses the relationship between the real exchange rate and the real interest rate differential on one hand and the implications they have on portfolio capital flows on the other. It shows that the nominal exchange rate deviates from the perceived long-run equilibrium level determined by ...
No.253 / June 2008 Exposure in External Balance Sheets
... determinant of aggregate foreign currency exposure. In addition, the decomposition shows that the structure of foreign liabilities (across portfolio equity, direct investment, localcurrency debt and foreign-currency debt) is a key determinant of foreign currency exposure, with the equity share in l ...
... determinant of aggregate foreign currency exposure. In addition, the decomposition shows that the structure of foreign liabilities (across portfolio equity, direct investment, localcurrency debt and foreign-currency debt) is a key determinant of foreign currency exposure, with the equity share in l ...
Midterm #2
... Suppose the country joins the EU. As a result, the barriers to imported goods from the EU are reduced, and more imported goods are available to consumers at lower prices than before. At the same time, the country's producers can sell their goods more easily in EU markets, making exports easier. Woul ...
... Suppose the country joins the EU. As a result, the barriers to imported goods from the EU are reduced, and more imported goods are available to consumers at lower prices than before. At the same time, the country's producers can sell their goods more easily in EU markets, making exports easier. Woul ...
EC 102.07-08-09 Exercises for Chapter 33 SPRING 2006 1. Ceteris
... 25. Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the YTL falls. In the short-run we would expect a. real GDP will rise and the price level might rise, fall, or sta ...
... 25. Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the YTL falls. In the short-run we would expect a. real GDP will rise and the price level might rise, fall, or sta ...
Two Economic Crisis and Dollarization for Cambodia, Laos, and
... reach general agreement that the effect of global economic crisis on Southeast Asian economy has not been severe as much as Asian economic crisis(Won 2010; Lim 2009; Ra 2008). The studies, in general, look into the responses and changes in Southeast Asian economy after the global economic crisis, in ...
... reach general agreement that the effect of global economic crisis on Southeast Asian economy has not been severe as much as Asian economic crisis(Won 2010; Lim 2009; Ra 2008). The studies, in general, look into the responses and changes in Southeast Asian economy after the global economic crisis, in ...
THE FEDERAL RESERVE AND MONETARY POLICY
... 11. quantity theory of money 12. monetary neutrality 13. monetizing the deficit 14. (Appendix) bond 15. (Appendix) real interest rate 16. False. It is open market operations. 17. False. With “tight” policy, the interest rate rises. 18. True. 19. True. 20. False. 21. The Fed’s board of governors has ...
... 11. quantity theory of money 12. monetary neutrality 13. monetizing the deficit 14. (Appendix) bond 15. (Appendix) real interest rate 16. False. It is open market operations. 17. False. With “tight” policy, the interest rate rises. 18. True. 19. True. 20. False. 21. The Fed’s board of governors has ...
A Primer on the Euro Breakup
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
... > The mechanics of a currency breakup are surprisingly straightforward; the real problem for Europe is overvalued real effective exchange rates and extremely high debt – Historically, moving from one currency to another has not led to severe economic or legal problems. In almost all cases, the trans ...
1 | Page WESTERN UNION® MONEY TRANSFERSM SERVICE IS
... sole responsibility.If you do not wish to receive marketing communications, please contact Western Union in the manner indicated below. Western Union will hold and retain Informationthat the sender gives us about another person to include details about the receiver of the money transfer or payment ...
... sole responsibility.If you do not wish to receive marketing communications, please contact Western Union in the manner indicated below. Western Union will hold and retain Informationthat the sender gives us about another person to include details about the receiver of the money transfer or payment ...
ECON 101 - COURSE EXAM
... Which one of the following best describes the net 3export effect associated with an expansionary American fiscal policy? a. domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports increase. b. domestic interest rate falls, foreign demand for dollars rises, ...
... Which one of the following best describes the net 3export effect associated with an expansionary American fiscal policy? a. domestic interest rate falls, foreign demand for dollars rises, dollar appreciates, and net exports increase. b. domestic interest rate falls, foreign demand for dollars rises, ...
Document
... An increase in the price of oil reduces the productivity of much of the existing capital stock and, as a result, reduces g. This would shift the short run new-Keynesian aggregate supply curve to the left, increasing price inflation and reducing output growth for a given level of aggregate demand. ...
... An increase in the price of oil reduces the productivity of much of the existing capital stock and, as a result, reduces g. This would shift the short run new-Keynesian aggregate supply curve to the left, increasing price inflation and reducing output growth for a given level of aggregate demand. ...
Chapter 22
... Some papers have defined contagion as the influence of “news” about the creditworthiness, etc. of a borrower on the spreads charged to the other borrowers or equity prices, after controlling for country specific macroeconomic fundamentals (Doukas, 1989,Kaminsky and Schmukler, 1998) 2. Other studies, ...
... Some papers have defined contagion as the influence of “news” about the creditworthiness, etc. of a borrower on the spreads charged to the other borrowers or equity prices, after controlling for country specific macroeconomic fundamentals (Doukas, 1989,Kaminsky and Schmukler, 1998) 2. Other studies, ...
Exchange Rates and Monetary Policy in Emerging Market Economies Michael B. Devereux
... the choice of monetary policy. We compare three different types of monetary rules, a fixed exchange rate rule, and two types of inflation targeting rules. While a fixed exchange rate is a well-defined rule for a small economy, there is an infinite variety of different types of ‘floating’ exchange ra ...
... the choice of monetary policy. We compare three different types of monetary rules, a fixed exchange rate rule, and two types of inflation targeting rules. While a fixed exchange rate is a well-defined rule for a small economy, there is an infinite variety of different types of ‘floating’ exchange ra ...
sample papers economics with solution
... the consumer having lower income, may become an inferior good for the consumer having higher income. When a consumer moves to higher income, he/she may consider some goods below their income status, and treats them as inferior. ...
... the consumer having lower income, may become an inferior good for the consumer having higher income. When a consumer moves to higher income, he/she may consider some goods below their income status, and treats them as inferior. ...
Portfolio Choices with Near Rational Agents: A Solution of Some
... of asymmetries in the cross-country degrees of near rationality. In the latter case, the model implies cross-country asymmetries in the exposure to global risk so that investors would like to hold more of home assets when they are a good hedge. The multiplicative component, that near-rationality add ...
... of asymmetries in the cross-country degrees of near rationality. In the latter case, the model implies cross-country asymmetries in the exposure to global risk so that investors would like to hold more of home assets when they are a good hedge. The multiplicative component, that near-rationality add ...
del01-Stein 221109 en
... The nominal exchange rate is N(t) = dollars/ Euro. The real exchange rate R(t) of the Euro, where a rise is an appreciation of the real Euro relative to the $US, can be defined in several ways. Generally, the researchers use equation (1), where the ratio p(t)/p*(t) is the Euro/foreign GDP price defl ...
... The nominal exchange rate is N(t) = dollars/ Euro. The real exchange rate R(t) of the Euro, where a rise is an appreciation of the real Euro relative to the $US, can be defined in several ways. Generally, the researchers use equation (1), where the ratio p(t)/p*(t) is the Euro/foreign GDP price defl ...
English
... large real depreciation vis a vis the US dollar. But with a highly dollarized financial system and public debt, the depreciation would entail serious solvency problems. However, it reestablished the conditions of profitability for its global goods sector. This story clearly indicates that with respe ...
... large real depreciation vis a vis the US dollar. But with a highly dollarized financial system and public debt, the depreciation would entail serious solvency problems. However, it reestablished the conditions of profitability for its global goods sector. This story clearly indicates that with respe ...
monetary policy in emerging market countries with implications for
... currency union or adopt the currency of another central bank that follows good policy principles. An intermediate case is to adopt a pegged exchange rate, which does not create a permanent tie to another currency. But the lack of permanence has led to credibility problems and the frequent collapse o ...
... currency union or adopt the currency of another central bank that follows good policy principles. An intermediate case is to adopt a pegged exchange rate, which does not create a permanent tie to another currency. But the lack of permanence has led to credibility problems and the frequent collapse o ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) 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.