This PDF is a selection from a published volume from... National Bureau of Economic Research
... fixed exchange rate regime was sustainable. We conclude that the government must at some point move to a floating exchange rate system. The particular characteristics of a crisis depend on the financing mix chosen by the government. For example, the government could pay for most of the bank bailout ...
... fixed exchange rate regime was sustainable. We conclude that the government must at some point move to a floating exchange rate system. The particular characteristics of a crisis depend on the financing mix chosen by the government. For example, the government could pay for most of the bank bailout ...
Getting rid of the trade deficit: A cheaper dollar is not enough
... deficit will result in: -- lower real income for Americans; -- a larger foreign debt burden; -- an increasing threat of recession; -- a missed opportunity to curb other nations' restrictive trade practices. ...
... deficit will result in: -- lower real income for Americans; -- a larger foreign debt burden; -- an increasing threat of recession; -- a missed opportunity to curb other nations' restrictive trade practices. ...
Review of Exchange Arrangements, Restrictions, and Controls
... direct controls in managing their economies. However, some countries that have accepted the obligations of Article VIII appear to have imposed new exchange restrictions, multiple currency practices (MCPs) (jointly referred to in some parts of this paper as “exchange measures”) without the approval o ...
... direct controls in managing their economies. However, some countries that have accepted the obligations of Article VIII appear to have imposed new exchange restrictions, multiple currency practices (MCPs) (jointly referred to in some parts of this paper as “exchange measures”) without the approval o ...
Robbins-inflation
... How is Inflation measured? The government tracks the prices of the same goods and services each year. • This “market basket” is made up of about 300 commonly purchased goods • The Inflation Rate-% change in prices in 1 year • They also compare changes in prices to a given base year (usually 1982) • ...
... How is Inflation measured? The government tracks the prices of the same goods and services each year. • This “market basket” is made up of about 300 commonly purchased goods • The Inflation Rate-% change in prices in 1 year • They also compare changes in prices to a given base year (usually 1982) • ...
10. Trade Policies and Practices by Measures
... ▶ Even before the exchange rate reform, exporters could convert their foreign currency earnings into domestic currencies at market rates through the “Foreign Exchange Deposit System”. Devaluation of the won therefore did not suddenly increase exporters profit. ▶ The exchange rate reform closed out t ...
... ▶ Even before the exchange rate reform, exporters could convert their foreign currency earnings into domestic currencies at market rates through the “Foreign Exchange Deposit System”. Devaluation of the won therefore did not suddenly increase exporters profit. ▶ The exchange rate reform closed out t ...
CPI and Inflation PPT
... How is Inflation measured? The government tracks the prices of the same goods and services each year. • This “market basket” is made up of about 300 commonly purchased goods • The Inflation Rate-% change in prices in 1 year • They also compare changes in prices to a given base year (usually 1982) • ...
... How is Inflation measured? The government tracks the prices of the same goods and services each year. • This “market basket” is made up of about 300 commonly purchased goods • The Inflation Rate-% change in prices in 1 year • They also compare changes in prices to a given base year (usually 1982) • ...
Chapter 18
... © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ...
... © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ...
Prices and Exchange Rates: A Theory of Disconnect
... consumer import prices (Engel, 2002).1 This empirical regularity is usually interpreted as implying that the effect of nominal exchange rates on quantities traded between countries, the so-called expenditure-switching effect of exchange rates, is negligible: if exchange rate movements do not affect ...
... consumer import prices (Engel, 2002).1 This empirical regularity is usually interpreted as implying that the effect of nominal exchange rates on quantities traded between countries, the so-called expenditure-switching effect of exchange rates, is negligible: if exchange rate movements do not affect ...
ECN 111 Chapter 7 Lecture Notes
... 2. Increases in Government Outlays Close to a third of federal government outlays are linked to the CPI. If the 1.1 percentage point bias is accurate, the government will spend almost a trillion dollars more than it otherwise would have spent over the next decade. D. The GDP Deflator: A Better Measu ...
... 2. Increases in Government Outlays Close to a third of federal government outlays are linked to the CPI. If the 1.1 percentage point bias is accurate, the government will spend almost a trillion dollars more than it otherwise would have spent over the next decade. D. The GDP Deflator: A Better Measu ...
foreign exchange risk
... Foreign currency fluctuations are one of the key sources of risk in multinational operations. Consider the case of Dell Inc., which operates assembly plants for its computers within the United States as well as in Ireland, Malaysia, China, and Brazil; runs offices and call centers in several other c ...
... Foreign currency fluctuations are one of the key sources of risk in multinational operations. Consider the case of Dell Inc., which operates assembly plants for its computers within the United States as well as in Ireland, Malaysia, China, and Brazil; runs offices and call centers in several other c ...
Demand_and_supply_Money
... Checks are 52% of total M1, used for 90% of transactions (offered by commercial banks, thrift institutions, and credit unions); called demand deposits, Automatic Transfer Service and Share Draft Accounts. NOTE: Currency and checkable deposits owned by the US Treasury, the FED, commercial banks and o ...
... Checks are 52% of total M1, used for 90% of transactions (offered by commercial banks, thrift institutions, and credit unions); called demand deposits, Automatic Transfer Service and Share Draft Accounts. NOTE: Currency and checkable deposits owned by the US Treasury, the FED, commercial banks and o ...
Criteria To Be Considered In Assessing A Country`s
... in the devalue & dollarize option, the short run (and most likely long run) real depreciation of the exchange rate may be larger than under the alternative regime option. Thus, balance sheet effects, and the ensuing distress of firms, banks and government, would be much larger under a float in the s ...
... in the devalue & dollarize option, the short run (and most likely long run) real depreciation of the exchange rate may be larger than under the alternative regime option. Thus, balance sheet effects, and the ensuing distress of firms, banks and government, would be much larger under a float in the s ...
Document
... relative to another Since prices usually do not move in unison, tying a particular product’s price to the overall inflation rate may result in a price that is too high or too low based on market conditions ...
... relative to another Since prices usually do not move in unison, tying a particular product’s price to the overall inflation rate may result in a price that is too high or too low based on market conditions ...
Will Asian Mercantilism Meet its
... Japan in the early 1990s, the Asian financial crises of 1997–98 and the global stock market crash after 2000. But the recent rise in the price of oil has also played a part, by shifting income from spender to savers across the globe. The discussion then turns to the global balance of payments and, i ...
... Japan in the early 1990s, the Asian financial crises of 1997–98 and the global stock market crash after 2000. But the recent rise in the price of oil has also played a part, by shifting income from spender to savers across the globe. The discussion then turns to the global balance of payments and, i ...
Early Indicators of Currency Crises
... it is aimed at presenting and highlighting the main findings of theoretical literature in this area. An effective warning system should consider a broad variety of indicators, as currency crises seem to be usually associated with multiple economic and sometimes political problems. Indicators that ha ...
... it is aimed at presenting and highlighting the main findings of theoretical literature in this area. An effective warning system should consider a broad variety of indicators, as currency crises seem to be usually associated with multiple economic and sometimes political problems. Indicators that ha ...
PDF
... Protection of the nonagricultural sector has generally represented a strong bias against agricultural exports. When currency values are allowed to vary (Case 4), the Mexican peso depreciates 11 percent and net expenditures on agricultural imports are much smaller than in the fixed exchange rate case ...
... Protection of the nonagricultural sector has generally represented a strong bias against agricultural exports. When currency values are allowed to vary (Case 4), the Mexican peso depreciates 11 percent and net expenditures on agricultural imports are much smaller than in the fixed exchange rate case ...
Lecture 3a
... real (purchasing power) values. • Nominal values are price-weighted measures of goods and services. Nominal values increase and decrease as prices rise and fall, respectively. In the base year (period) of a price index, the nominal value equals the real value. • Real values are nominal values adjust ...
... real (purchasing power) values. • Nominal values are price-weighted measures of goods and services. Nominal values increase and decrease as prices rise and fall, respectively. In the base year (period) of a price index, the nominal value equals the real value. • Real values are nominal values adjust ...
Chapter 15
... • LOP does not hold for non-traded items such as services, only freely-traded goods • LOP does not hold for differentiated products • LOP and PPP may not hold in the short run ...
... • LOP does not hold for non-traded items such as services, only freely-traded goods • LOP does not hold for differentiated products • LOP and PPP may not hold in the short run ...
How the Fed Conducts Monetary Policy PPT
... The monetary policy transmission process is long and drawn out, given the series of chain events. ...
... The monetary policy transmission process is long and drawn out, given the series of chain events. ...
NBER WORKING PAPER SERIES ON THE BENEFITS OF DOLLARIZATION WHEN
... prospective borrowers which vary with interest rates and downpayments. ...
... prospective borrowers which vary with interest rates and downpayments. ...
The surge in capital flows: analysis of `pull` and `push` factors
... losses on total wealth resulting from inflation, while the term ob* represents capital gains on the stock of foreign bonds resulting from exchange rate depreciation. The rate of return on foreign assets consists of a ‘base’ (or risk-free) interest rate i* and a premium, u. The premium is assumed to ...
... losses on total wealth resulting from inflation, while the term ob* represents capital gains on the stock of foreign bonds resulting from exchange rate depreciation. The rate of return on foreign assets consists of a ‘base’ (or risk-free) interest rate i* and a premium, u. The premium is assumed 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.