Central Banks and Monetary Policy Strategy
... “The main objective of Bank of Mongolia is to sustain stability of national currency tugrug” and this statement can be interpreted in two manners. For instance, stability of tugrug in the external market refers to the stability of exchange rate of tugrug in foreign currencies, whereas stability of t ...
... “The main objective of Bank of Mongolia is to sustain stability of national currency tugrug” and this statement can be interpreted in two manners. For instance, stability of tugrug in the external market refers to the stability of exchange rate of tugrug in foreign currencies, whereas stability of t ...
Economic environment - World Trade Organization
... The Parliament adopted the Act relating to the State Petroleum Fund in 1990. The Ministry of Finance is responsible for defining the strategy of the Fund, but has delegated the task of its operational management to the Central Bank. According to the Management Agreement between the Ministry and the ...
... The Parliament adopted the Act relating to the State Petroleum Fund in 1990. The Ministry of Finance is responsible for defining the strategy of the Fund, but has delegated the task of its operational management to the Central Bank. According to the Management Agreement between the Ministry and the ...
NBER WORKING PAPER SERIES FLEXIBLE EXCHANGE RATES AS SHOCK ABSORBERS Sebastian Edwards
... adjustment will be difficult in countries with a fixed exchange rate and inflexible money wages. According to Meade (1951), in the presence of these rigidities the economy is likely to benefit from what he called a “variable exchange rate” regime, or from what we know today as a floating exchange ra ...
... adjustment will be difficult in countries with a fixed exchange rate and inflexible money wages. According to Meade (1951), in the presence of these rigidities the economy is likely to benefit from what he called a “variable exchange rate” regime, or from what we know today as a floating exchange ra ...
Ch10.pps
... If government spending were to increase by $1, then you might expect equilibrium output (Y) to also rise by $1. But it doesn’t! The multiplier shows that the change in demand for output (Y) will be larger than the initial change in spending. Here’s why: When there is an increase in government spend ...
... If government spending were to increase by $1, then you might expect equilibrium output (Y) to also rise by $1. But it doesn’t! The multiplier shows that the change in demand for output (Y) will be larger than the initial change in spending. Here’s why: When there is an increase in government spend ...
PDF
... some short-term output price rigidity. Swift(1998; 2001; 2004) examined the role of sticky prices and how domestic prices in exports respond to changes in their respective world price. The distinction between a short-sighted and longer-sighted perspectives is further examined by Goldstein and Khan ...
... some short-term output price rigidity. Swift(1998; 2001; 2004) examined the role of sticky prices and how domestic prices in exports respond to changes in their respective world price. The distinction between a short-sighted and longer-sighted perspectives is further examined by Goldstein and Khan ...
AGGRETATE DEMAND AND AGGREGATE SUPPLY
... A decrease in the price level makes consumers wealthier, which in turn encourages them to spend more. The increase in consumer spending means a larger quantity of goods and services demanded Remember: The nominal value of money is fixed, but is real value is not. (ii)The Price Level and Investment: ...
... A decrease in the price level makes consumers wealthier, which in turn encourages them to spend more. The increase in consumer spending means a larger quantity of goods and services demanded Remember: The nominal value of money is fixed, but is real value is not. (ii)The Price Level and Investment: ...
BUSINESS COMBINATIONS
... securities depend on management intent, which refers to management’s objectives regarding disposition of securities. This intent rule can result in identical debt securities being separately classified into one or any combination of all three classes of trading, held-to-maturity, and available-for ...
... securities depend on management intent, which refers to management’s objectives regarding disposition of securities. This intent rule can result in identical debt securities being separately classified into one or any combination of all three classes of trading, held-to-maturity, and available-for ...
monetary-policy
... 1. The closed-economy government spending multiplier is smaller than (1/(1-mpc)) if the Fed maintains a money supply target. Because when G goes up, PAE goes up, Y goes up due to the multiplier effect. But when Y goes up, Md goes up because the economy demands more money to spend their additional in ...
... 1. The closed-economy government spending multiplier is smaller than (1/(1-mpc)) if the Fed maintains a money supply target. Because when G goes up, PAE goes up, Y goes up due to the multiplier effect. But when Y goes up, Md goes up because the economy demands more money to spend their additional in ...
Ch.4: Measuring GDP and economic growth
... • dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be. ...
... • dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be. ...
AD - Andre R. Neveu
... are able to sell the total amount of goods & services that they produce, and, there are no unexpected changes in inventories, so, producers have no reason to either expand or contract their output during the next period. ...
... are able to sell the total amount of goods & services that they produce, and, there are no unexpected changes in inventories, so, producers have no reason to either expand or contract their output during the next period. ...
Lecture Notes: Chapter 10: Investment, Net Exports, and Interest Rates
... Second, the interest rate that is relevant for investment spending decisions is not the nominal but the real interest rate. The nominal prices a business charges rise with inflation. If a business is willing to invest when the interest rate is 5% and inflation is 2% per year (and so the real interes ...
... Second, the interest rate that is relevant for investment spending decisions is not the nominal but the real interest rate. The nominal prices a business charges rise with inflation. If a business is willing to invest when the interest rate is 5% and inflation is 2% per year (and so the real interes ...
NBER WORKING PAPER SERIES SWISS EXCHANGE RATE POLICY IN THE 1930S.
... strong capital inflows, which allowed for a substantial expansion of the money supply (see below) and supported production in domestically-oriented sectors. However, with their overvalued exchange rates, the gold bloc countries benefitted much less from the global recovery that started in 1993 and, ...
... strong capital inflows, which allowed for a substantial expansion of the money supply (see below) and supported production in domestically-oriented sectors. However, with their overvalued exchange rates, the gold bloc countries benefitted much less from the global recovery that started in 1993 and, ...
Mankiw 5/e Chapter 5: The Open Economy
... How NX depends on ε ε U.S. goods become more expensive relative to foreign goods ...
... How NX depends on ε ε U.S. goods become more expensive relative to foreign goods ...
Thesis: “A TIME SERIES ANALYSIS OF THE ZAR/USD EXCHANGE
... problem. The high levels of unemployment and inequality are considered by the government and most South Africans to be the most salient economic problems facing the country. These issues and others linked to them, such as crime and social unrest, have in turn hurt investment and growth, consequently ...
... problem. The high levels of unemployment and inequality are considered by the government and most South Africans to be the most salient economic problems facing the country. These issues and others linked to them, such as crime and social unrest, have in turn hurt investment and growth, consequently ...
Contemporary Logistics the Forming of Real-life Exchange Rate Misalignment
... Since July 2005, China began to carry out the managed floating exchange rate system. The RMB exchange rate generally has been raised and foreign exchange reserves continue to increase. After the international financial crisis, expectations for RMB appreciation continue to rise. Western countries on ...
... Since July 2005, China began to carry out the managed floating exchange rate system. The RMB exchange rate generally has been raised and foreign exchange reserves continue to increase. After the international financial crisis, expectations for RMB appreciation continue to rise. Western countries on ...
View/Open
... where the notation xz means ∂x / ∂z. Under the assumption that the system is stable (see Appendix), then 1 – kR e(Li + LYYi) would be positive and consequently expansive monetary policies would lower reserves, increase domestic rates of interest and lower the level of economic activity. Therefore, w ...
... where the notation xz means ∂x / ∂z. Under the assumption that the system is stable (see Appendix), then 1 – kR e(Li + LYYi) would be positive and consequently expansive monetary policies would lower reserves, increase domestic rates of interest and lower the level of economic activity. Therefore, w ...
long-run effects of commodity prices on the real exchange rate
... private and public expenditure) may produce an appreciation of the real exchange rate. An increase in private or government expenditure raises the relative price of non-tradable goods because of a higher demand for nontradable goods over their supply. Using quarterly data, Rogoff (1992) found that g ...
... private and public expenditure) may produce an appreciation of the real exchange rate. An increase in private or government expenditure raises the relative price of non-tradable goods because of a higher demand for nontradable goods over their supply. Using quarterly data, Rogoff (1992) found that g ...
The return of deflation: what can central banks do?
... cuts.7 Anticipated inflation causes welfare losses due to shoe-leather costs of cash management, if the opportunity cost of holding cash (the risk-free short nominal interest rate) increases with the expected rate of inflation. Deflation reduces the opportunity cost of holding non-interest bearing c ...
... cuts.7 Anticipated inflation causes welfare losses due to shoe-leather costs of cash management, if the opportunity cost of holding cash (the risk-free short nominal interest rate) increases with the expected rate of inflation. Deflation reduces the opportunity cost of holding non-interest bearing c ...
Exploring the Relationship between Population Age Structure and Real Exchange Rate in OECD Countries
... Expenditure Survey data in the USA, Danziger et al (1982-83) conclude that elderly people spend less than the nonelderly at the same level of income and the oldest people have the lowest average propensity to consume. Several explanations are forwarded for this observed puzzling saving behavior of ...
... Expenditure Survey data in the USA, Danziger et al (1982-83) conclude that elderly people spend less than the nonelderly at the same level of income and the oldest people have the lowest average propensity to consume. Several explanations are forwarded for this observed puzzling saving behavior of ...
Embargoed for release at 2:00 ... Economic Projections of Federal Reserve ...
... monetary policy, by definition, is the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her interpretation of the Federal Reserve’s dual objectives of maximum employment and stable prices. In the upper pa ...
... monetary policy, by definition, is the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her interpretation of the Federal Reserve’s dual objectives of maximum employment and stable prices. In the upper pa ...
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.