Securing Price Stability as Singapore Restructures
... recent years, these questions have been more frequently raised. Let me assure everyone that, every few years, MAS itself conducts a review of whether the exchange rate continues to be the most appropriate tool for Singapore’s monetary policy. Let me share briefly the outcome of these studies as they ...
... recent years, these questions have been more frequently raised. Let me assure everyone that, every few years, MAS itself conducts a review of whether the exchange rate continues to be the most appropriate tool for Singapore’s monetary policy. Let me share briefly the outcome of these studies as they ...
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... The central puzzle in international business cycles is that real exchange rates are volatile and persistent. Ever since the work of Dornbusch (1976), the most popular story for exchange rate fluctuations is that they result from the interaction of monetary shocks and sticky prices. To date, however ...
... The central puzzle in international business cycles is that real exchange rates are volatile and persistent. Ever since the work of Dornbusch (1976), the most popular story for exchange rate fluctuations is that they result from the interaction of monetary shocks and sticky prices. To date, however ...
NBER WORKING PAPER SERIES MONETARY UNIONS, EXTERNAL SHOCKS AND ECONOMIC
... Central and Eastern Europe. It has also been discussed in the Latin American context as one of the advantages of (unilateral) dollarization. This point was made by Dornbusch (2001), who argued that by achieving credibility, Latin American countries that dollarized would experience a decline in (real ...
... Central and Eastern Europe. It has also been discussed in the Latin American context as one of the advantages of (unilateral) dollarization. This point was made by Dornbusch (2001), who argued that by achieving credibility, Latin American countries that dollarized would experience a decline in (real ...
Chapter 4
... • A fall in the price of a good has two effects: • Consumers will tend to buy more of the good that has become cheaper and less of those goods that are now relatively more expensive. This response to a change in the relative prices of goods is called the substitution effect. • Because one of the goo ...
... • A fall in the price of a good has two effects: • Consumers will tend to buy more of the good that has become cheaper and less of those goods that are now relatively more expensive. This response to a change in the relative prices of goods is called the substitution effect. • Because one of the goo ...
99095115I_en.pdf
... rate (one of the key prices in capitalist economies), but proved extremely vulnerable to real currency appreciation and speculative attacks, culminating in a series of currency crises in the second half of the decade. After these crises, the policies mentioned gave way to floating exchange-rate syst ...
... rate (one of the key prices in capitalist economies), but proved extremely vulnerable to real currency appreciation and speculative attacks, culminating in a series of currency crises in the second half of the decade. After these crises, the policies mentioned gave way to floating exchange-rate syst ...
mmi05 razin 225761 en
... Argentina and Turkey in 2000--has in some way involved a fixed or pegged exchange rate regime. At the same time, countries that did not have pegged rates--among them South Africa, Israel in 1998, Mexico in 1998, and Turkey in 1998--avoided crises of the type that afflicted emerging market countries ...
... Argentina and Turkey in 2000--has in some way involved a fixed or pegged exchange rate regime. At the same time, countries that did not have pegged rates--among them South Africa, Israel in 1998, Mexico in 1998, and Turkey in 1998--avoided crises of the type that afflicted emerging market countries ...
ZBORNIK RADOVA Održivi ekonomski razvoj
... 4. Dejan Jeremić 5. Uroš Mirčević 6. Ivana Vasić 7. Nevena Vrcelj 8. Stefan Zelenbaba ...
... 4. Dejan Jeremić 5. Uroš Mirčević 6. Ivana Vasić 7. Nevena Vrcelj 8. Stefan Zelenbaba ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... The Functions of a Sound Currency A sound currency serves as a satisfactory store of value, medium of exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value h ...
... The Functions of a Sound Currency A sound currency serves as a satisfactory store of value, medium of exchange, and unit of account. An unsound currency such as the ruble does not fulfill any of those functions. An unsound currency is not a reliable store of value because inflation makes its value h ...
inflation targeting and new eu entrants: is there
... an explicit policy of inflation targeting for their respective central banks, is there policy uniformity within this group? • Slovenia, Latvia, Lithuania, and Slovakia • This paper seeks to determine if there is a difference in interest rate targets between the high income (Slovenia) entrants and lo ...
... an explicit policy of inflation targeting for their respective central banks, is there policy uniformity within this group? • Slovenia, Latvia, Lithuania, and Slovakia • This paper seeks to determine if there is a difference in interest rate targets between the high income (Slovenia) entrants and lo ...
International Accounting Standard 29 Financial Reporting in Hyperinflationary Economies Scope
... applying to its historical cost and accumulated depreciation the change in a general price index from the date of acquisition to the end of the reporting period. For example, property, plant and equipment, inventories of raw materials and merchandise, goodwill, patents, trademarks and similar assets ...
... applying to its historical cost and accumulated depreciation the change in a general price index from the date of acquisition to the end of the reporting period. For example, property, plant and equipment, inventories of raw materials and merchandise, goodwill, patents, trademarks and similar assets ...
the short-run policy trade-off
... Monetarism took off in the 1970s •The monetarists, led by Professor Milton Friedman, experienced rising influence as inflation became public enemy number 1 in the 1970s. •Economists such as Edmund Phelps, Robert Lucas, and Thomas Seargent, subsequently added important modifications to the monetaris ...
... Monetarism took off in the 1970s •The monetarists, led by Professor Milton Friedman, experienced rising influence as inflation became public enemy number 1 in the 1970s. •Economists such as Edmund Phelps, Robert Lucas, and Thomas Seargent, subsequently added important modifications to the monetaris ...
TRANSFER PRICE
... so that the correct duties & related fees can be paid Transfer prices should reflect the prices the subsidiary might encounter in the open market, also known as “arm’s length prices” Transfer prices are also used to shift resources within a firm to offset inflation in country subsidiaries, to suppor ...
... so that the correct duties & related fees can be paid Transfer prices should reflect the prices the subsidiary might encounter in the open market, also known as “arm’s length prices” Transfer prices are also used to shift resources within a firm to offset inflation in country subsidiaries, to suppor ...
Output and Exchange Rate in the Short Run
... Real exchange rate: prices of foreign products relative to the prices of domestic products, both measured in domestic currency: EP*/P As the prices of foreign products rise relative to those of domestic products, expenditure on domestic products rises and expenditure on foreign products falls. ...
... Real exchange rate: prices of foreign products relative to the prices of domestic products, both measured in domestic currency: EP*/P As the prices of foreign products rise relative to those of domestic products, expenditure on domestic products rises and expenditure on foreign products falls. ...
Balance of Trade in India
... approaches towards favourable direction, on the other hand, balance of trade deficit lessens because it may have positive impact on export. Variable of FDI shows positive impact on balance of trade as FDI flows increase which may motivate the multinational corporation to produce import substitution ...
... approaches towards favourable direction, on the other hand, balance of trade deficit lessens because it may have positive impact on export. Variable of FDI shows positive impact on balance of trade as FDI flows increase which may motivate the multinational corporation to produce import substitution ...
Macro 3 Exercise #2 Answers
... to regulate the macroeconomy by changing the money supply. Suppose that the government wanted to combat the recession strictly through monetary policy. In that case, would this administration be changing government spending or taxes? No (Yes, No). Click “Continue.” Decrease the money supply to $55 a ...
... to regulate the macroeconomy by changing the money supply. Suppose that the government wanted to combat the recession strictly through monetary policy. In that case, would this administration be changing government spending or taxes? No (Yes, No). Click “Continue.” Decrease the money supply to $55 a ...
- ANU Repository
... risk-adjusted productivity of capital is low, despite capital scarcity. As a result, returns to investment are low and investment is minimal. But economic reforms and opening up to international trade changes this situation. The process involves putting in place sound macroeconomic policies, to pro ...
... risk-adjusted productivity of capital is low, despite capital scarcity. As a result, returns to investment are low and investment is minimal. But economic reforms and opening up to international trade changes this situation. The process involves putting in place sound macroeconomic policies, to pro ...
Answers to Quiz #3
... owned businesses. In this economy there are also 10,000 full-time students, 10,000 people currently not working but actively seeking employment after graduating from school, 5,000 people currently not working because of a binding minimum wage but who are actively seeking work, and the remaining part ...
... owned businesses. In this economy there are also 10,000 full-time students, 10,000 people currently not working but actively seeking employment after graduating from school, 5,000 people currently not working because of a binding minimum wage but who are actively seeking work, and the remaining part ...
Monetary Policy Autonomy in European Non-Euro Countries
... instrument, the government must use monetary policy to stabilize the exchange rate in the event of asymmetric business cycles and country-specific economic shocks. However, in a fixed exchange rate system, governments can exploit monetary policy to stabilize demand and consumption only if the moneta ...
... instrument, the government must use monetary policy to stabilize the exchange rate in the event of asymmetric business cycles and country-specific economic shocks. However, in a fixed exchange rate system, governments can exploit monetary policy to stabilize demand and consumption only if the moneta ...
TCX`s role in the Kyrgyz Republic during the 2014 Russian ruble
... KGS have a direct effect on the country’s financial system and on the real economy. Exchange rate risk associated with international debt is allocated through the terms agreed between the borrowers and lenders. In the absence of international hedging markets, this typically means that the risk is pl ...
... KGS have a direct effect on the country’s financial system and on the real economy. Exchange rate risk associated with international debt is allocated through the terms agreed between the borrowers and lenders. In the absence of international hedging markets, this typically means that the risk is pl ...
Money in the Economy
... Monetary Policy, Exchange Rates and GDP • Let the Fed decrease short-term interest rates – As interest rates decrease, exchange rates decrease, causing net exports (X - M) and GDP to rise. • As the value of the dollar decreases, we export more goods and import fewer. ...
... Monetary Policy, Exchange Rates and GDP • Let the Fed decrease short-term interest rates – As interest rates decrease, exchange rates decrease, causing net exports (X - M) and GDP to rise. • As the value of the dollar decreases, we export more goods and import fewer. ...
S03141_en.pdf
... Even though the major reason for implementing a fixed exchange rate regime has been to control the inflation rate, in many cases this type of regime has also been used as a device to induce or promote changes in the behaviour of economic agents and institutional reforms. In particular, when implemen ...
... Even though the major reason for implementing a fixed exchange rate regime has been to control the inflation rate, in many cases this type of regime has also been used as a device to induce or promote changes in the behaviour of economic agents and institutional reforms. In particular, when implemen ...
The balance of payments constraint as an explanation of
... The neo-classical approach to the question of why growth rates differ between countries, typified by the meticulous studies of Denison (1967; 1976) and Maddison (1970; 1972), concentrates on the supply side of the economy using the concept of the production function. Having specified the functional ...
... The neo-classical approach to the question of why growth rates differ between countries, typified by the meticulous studies of Denison (1967; 1976) and Maddison (1970; 1972), concentrates on the supply side of the economy using the concept of the production function. Having specified the functional ...
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.