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 ...
determinants of the choice of exchange rate regime in resource
... This research studies the speci c determinants of the choice of exchange rate regime in resource-rich countries. We run multinomial logit regressions for an unbalanced panel data set of 145 countries over the 1975-2004 period. We nd that resource-rich countries are more likely to adopt a xed excha ...
... This research studies the speci c determinants of the choice of exchange rate regime in resource-rich countries. We run multinomial logit regressions for an unbalanced panel data set of 145 countries over the 1975-2004 period. We nd that resource-rich countries are more likely to adopt a xed excha ...
devaluation and its impact on ethiopian economy
... Every nation has three economic goals to attain both in the short and in the long run, these are achieving economic growth, creating more employment and having no or minimum inflation simultaneously. In order to achieve these goals and make their countries better off, countries use monetary and fisc ...
... Every nation has three economic goals to attain both in the short and in the long run, these are achieving economic growth, creating more employment and having no or minimum inflation simultaneously. In order to achieve these goals and make their countries better off, countries use monetary and fisc ...
International Conference on Draft of remarks prepared by Jan Kregel,
... Keynes' General Theory. That basic question is whether it is possible for a capitalist economy to have sustainable full employment with price stability – whether active economic policy can improve on the results produced by the operation of the free market – or as Keynes put it, “is the economic sys ...
... Keynes' General Theory. That basic question is whether it is possible for a capitalist economy to have sustainable full employment with price stability – whether active economic policy can improve on the results produced by the operation of the free market – or as Keynes put it, “is the economic sys ...
Cycles: economic, ideas (paradigms), policies
... recession, or a major crisis, is implicit. The natural interest rate (R) reflects the trade-off between ...
... recession, or a major crisis, is implicit. The natural interest rate (R) reflects the trade-off between ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... and timing of transactions is crucial for such a theory of price adjustment. This approach thus undermines “the new classical macroeconomic models based on a one-good economy postulated by identical price-taking yeoman farmers” (Gordon 1981), or Calvo’s world of a one-family, one-good economy, in wh ...
... and timing of transactions is crucial for such a theory of price adjustment. This approach thus undermines “the new classical macroeconomic models based on a one-good economy postulated by identical price-taking yeoman farmers” (Gordon 1981), or Calvo’s world of a one-family, one-good economy, in wh ...
productivity, commodity prices and the real exchange rate
... indexes are defined as the commodity prices in U.S. dollars divided by U.S. GDP deflator. The figures suggest the expected negative relation between the real exchange rate and real commodity prices (the correlation coefficients for these series with respect to the real exchange rate series are -0.6 ...
... indexes are defined as the commodity prices in U.S. dollars divided by U.S. GDP deflator. The figures suggest the expected negative relation between the real exchange rate and real commodity prices (the correlation coefficients for these series with respect to the real exchange rate series are -0.6 ...
Free Slides from Ed Dolan’s Econ Blog http://dolanecon
... of real GDP growth is that for any given level of inflation and unemployment, people would feel better if the economy is growing rather than stagnant As this chart shows, the trend in GDP growth has been down over time, offsetting some of the feel-good effect of lower inflation and unemployment co ...
... of real GDP growth is that for any given level of inflation and unemployment, people would feel better if the economy is growing rather than stagnant As this chart shows, the trend in GDP growth has been down over time, offsetting some of the feel-good effect of lower inflation and unemployment co ...
exchange rate
... The Open Economy with Flexible Exchange Rates The Market For Foreign Exchange TABLE 20.2 Some Private Buyers and Sellers in International Exchange Markets: United States and Great Britain The Demand for Pounds (Supply of Dollars) ...
... The Open Economy with Flexible Exchange Rates The Market For Foreign Exchange TABLE 20.2 Some Private Buyers and Sellers in International Exchange Markets: United States and Great Britain The Demand for Pounds (Supply of Dollars) ...
NBER WORKING PAPER SERIES MACROECONOMIC POLICY DESIGN IN AN INTERDEPENDENT WORLD ECONOMY-
... solved using numerical methods in a Sequel to this ...
... solved using numerical methods in a Sequel to this ...
The link between interest rates and exchange rates
... In recent years, there has been a special interest in the link between exchange rates and interest rates in both advanced and developing countries. This is understandable, given the important role these variables play in determining developments in the nominal and real sides of the economy, includin ...
... In recent years, there has been a special interest in the link between exchange rates and interest rates in both advanced and developing countries. This is understandable, given the important role these variables play in determining developments in the nominal and real sides of the economy, includin ...
Should We Worry about Deflation? Prevention and
... 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 ...
Currency Misalignments and Optimal Monetary Policy: A
... currency misalignment distortion that concerns policymakers arises in the goods market—from price setting—and not in the foreign exchange market. The model of this paper determines the foreign exchange rate in an efficient currency market as a function of fundamental economic variables. Richard Clar ...
... currency misalignment distortion that concerns policymakers arises in the goods market—from price setting—and not in the foreign exchange market. The model of this paper determines the foreign exchange rate in an efficient currency market as a function of fundamental economic variables. Richard Clar ...
Sticky Prices and Sectoral Real Exchange Rates
... rate, defined as the relative price of two country’s consumption baskets. It has been welldocumented that across a wide variety of countries that real exchange rates are volatile, persistent, and closely track the nominal exchange rate. (See, for example, Mussa 1986.) Accounting for these properties ...
... rate, defined as the relative price of two country’s consumption baskets. It has been welldocumented that across a wide variety of countries that real exchange rates are volatile, persistent, and closely track the nominal exchange rate. (See, for example, Mussa 1986.) Accounting for these properties ...
NBER WORKING PAPER SERIES DOLLAR SHORTAGES AND CRISES Raghuram G. Rajan Working Paper
... speedy, and predictable sharing of adverse economic circumstances, and the tendency of the government is to spread the burden along the path of least resistance, economic agents will take steps to protect themselves. But without a reliable and effective legal system, what can they do? Clearly the an ...
... speedy, and predictable sharing of adverse economic circumstances, and the tendency of the government is to spread the burden along the path of least resistance, economic agents will take steps to protect themselves. But without a reliable and effective legal system, what can they do? Clearly the an ...
Econ 1101 Practice Questions Final Exam
... 8) What is meant by the term ʺmarginal analysisʺ? Suppose an individual has to choose between renting four apartments at different distances from his place of work. The individual has to commute to work on five days of the week and as such will require different quantities of gasoline depending on t ...
... 8) What is meant by the term ʺmarginal analysisʺ? Suppose an individual has to choose between renting four apartments at different distances from his place of work. The individual has to commute to work on five days of the week and as such will require different quantities of gasoline depending on t ...
Exchange rate and price dynamics in a small open economy
... banks in industrialised countries found themselves confronted with the zero lower bound on nominal interest rates (ZLB). As a consequence, these central banks were unable to respond to further contractionary shocks using their traditional monetary policy instrument of short-term interest rates (Jord ...
... banks in industrialised countries found themselves confronted with the zero lower bound on nominal interest rates (ZLB). As a consequence, these central banks were unable to respond to further contractionary shocks using their traditional monetary policy instrument of short-term interest rates (Jord ...
DP2010/03 Multi-period fixed-rate loans, housing and monetary policy in small open economies
... Moreover, the declining repayments do not contradict our effort to model fixed-rate loans: It is the fact that the repayment scheme is set and fixed at time t and cannot be changed at any later time that matters. From a modelling perspective, introducing an infinitely long loan with geometric repaym ...
... Moreover, the declining repayments do not contradict our effort to model fixed-rate loans: It is the fact that the repayment scheme is set and fixed at time t and cannot be changed at any later time that matters. From a modelling perspective, introducing an infinitely long loan with geometric repaym ...
Case Study: Keynesians in the White House
... For any given price level, a higher money supply leads to a lower interest rate, which in turn increases the quantity of goods and services demanded. ...
... For any given price level, a higher money supply leads to a lower interest rate, which in turn increases the quantity of goods and services demanded. ...
Exchange rate and monetary policy for Kazakhstan in light of
... monetary policy is set with full discretion. A central bank that wants to fight inflation can commit more credibly by fixing the exchange rate, or even giving up its currency altogether. Workers, firm managers, and others who set wages and prices then perceive that inflation will be low in the futu ...
... monetary policy is set with full discretion. A central bank that wants to fight inflation can commit more credibly by fixing the exchange rate, or even giving up its currency altogether. Workers, firm managers, and others who set wages and prices then perceive that inflation will be low in the futu ...
PROBLEM SET 2 14.02 Macroeconomics March 6, 2006
... 1. The IS relation is a behavioral relation, telling us how the suppliers of output respond to changes in the interest rate. Ans: False. Every point on the IS curve represents a possible goods market equilibrium, so the IS relation refers to the equilibrium condition of a goods market under an exoge ...
... 1. The IS relation is a behavioral relation, telling us how the suppliers of output respond to changes in the interest rate. Ans: False. Every point on the IS curve represents a possible goods market equilibrium, so the IS relation refers to the equilibrium condition of a goods market under an exoge ...
Stanley INDEXATION: REAL VARIABLES IN DISINFLATION
... sacrifice ratio is broadly consistent with the predictions of a model with price stickiness induced by the existence of long—term labor contracts.1 It is somewhat below earlier predictions of the output costs of disinflation by Arthur Okun (1978) but in line with predictions, such as that of Robert ...
... sacrifice ratio is broadly consistent with the predictions of a model with price stickiness induced by the existence of long—term labor contracts.1 It is somewhat below earlier predictions of the output costs of disinflation by Arthur Okun (1978) but in line with predictions, such as that of Robert ...
DISCUSSION PAPERS 02-23 High Inflation, Hyperinflation and
... The inflation rate was quite low during the 1970s but started to build up at the beginning of the 1980s. This resulted in large currency depreciation which largely annihilated the debt of the socially owned firms. In fact credits were essentially given at negative real interest rates. The foreign cu ...
... The inflation rate was quite low during the 1970s but started to build up at the beginning of the 1980s. This resulted in large currency depreciation which largely annihilated the debt of the socially owned firms. In fact credits were essentially given at negative real interest rates. The foreign cu ...
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.