NBER WORKING PAPER SERIES THE CAPITAL INFLOWS PROBLEM SOUTHERN CONE DISINFLATION
... renunciations of surprise maxi—devaluations. Each of these mechanisms enjoys some degree of empirical plausibility, but no simple model can capture the complexity of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, a ...
... renunciations of surprise maxi—devaluations. Each of these mechanisms enjoys some degree of empirical plausibility, but no simple model can capture the complexity of a structural economic revolution involving tax and tariff reforms and banking decontrol as well as major shifts in monetary, fiscal, a ...
MACROECONOMICS AND THE GLOBAL BUSINESS ENVIRONMENT
... Assumes banks don’t hold excess reserves Assumes loans make it back to bank as ...
... Assumes banks don’t hold excess reserves Assumes loans make it back to bank as ...
Dollar Adjustment - Peterson Institute for International Economics
... promptly. One was the presence of considerable slack in the US economy, which meant that the dollar could decline without much (if any) adverse impact on US inflation and interest rates. The other was the superiority of US economic performance relative to other industrial countries, which reduced th ...
... promptly. One was the presence of considerable slack in the US economy, which meant that the dollar could decline without much (if any) adverse impact on US inflation and interest rates. The other was the superiority of US economic performance relative to other industrial countries, which reduced th ...
Georgia Milestones Economics Sample Questions 2014
... Increase. When the government increases public spending by buying services from the market, such as the building of new schools or roads, it also creates jobs. However, with more money in circulation due to more people having jobs, prices may increase. Thus, it is important for the government to fin ...
... Increase. When the government increases public spending by buying services from the market, such as the building of new schools or roads, it also creates jobs. However, with more money in circulation due to more people having jobs, prices may increase. Thus, it is important for the government to fin ...
Money Demand (Handa, Chapter 2)
... Under this theory, the firms price according to the cost of production plus a normal rate of profit. In aggregate, this forms the price level. ...
... Under this theory, the firms price according to the cost of production plus a normal rate of profit. In aggregate, this forms the price level. ...
Economics Principles and Applications - YSU
... • What happens when government changes its fiscal policy – Say, by increasing government purchases ...
... • What happens when government changes its fiscal policy – Say, by increasing government purchases ...
Alternatives to inflation targeting in Mexico Luis Miguel Galindo Jaime Ros
... et. al., 2003 and Calvo and Mishkin, 2003). There is also a major concern that important shifts in exchange rates will affect the general competitiveness of the economy, the current account deficit and generate external shocks on the inflation rate. In this case, ...
... et. al., 2003 and Calvo and Mishkin, 2003). There is also a major concern that important shifts in exchange rates will affect the general competitiveness of the economy, the current account deficit and generate external shocks on the inflation rate. In this case, ...
Economic Growth and Real Exchange Rate
... put pressure on the (nominal) exchange rate to appreciate. For example, demand for the currency of an emerging market will rise when foreign investors plan to purchase bonds and stocks, because the local currency has to be obtained first. Put simply, successful economic development results in a curr ...
... put pressure on the (nominal) exchange rate to appreciate. For example, demand for the currency of an emerging market will rise when foreign investors plan to purchase bonds and stocks, because the local currency has to be obtained first. Put simply, successful economic development results in a curr ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... The South Korean economy has not suffered from any constant deficiency in effective demand. Except for 1958—61 and 1964 when effective demand was restrained by either deflationary monetary and fiscal policy or by political turmoil, investment demand since the Korean War has tended to be excessive re ...
... The South Korean economy has not suffered from any constant deficiency in effective demand. Except for 1958—61 and 1964 when effective demand was restrained by either deflationary monetary and fiscal policy or by political turmoil, investment demand since the Korean War has tended to be excessive re ...
chapter24 - YSU
... • What happens when government changes its fiscal policy – Say, by increasing government purchases ...
... • What happens when government changes its fiscal policy – Say, by increasing government purchases ...
r F
... be extended into an open economy circular flow diagram and all of its linkages with the rest of the world. • Explain the balance of payments accounts, which reflect the logic of the open economy circular flow diagram. • Introduce foreign exchange markets and explain how foreign exchange rates are de ...
... be extended into an open economy circular flow diagram and all of its linkages with the rest of the world. • Explain the balance of payments accounts, which reflect the logic of the open economy circular flow diagram. • Introduce foreign exchange markets and explain how foreign exchange rates are de ...
NBER WORKING PAPER SERIES PRODUCTIVITY AND THE EURO-DOLLAR EXCHANGE RATE PUZZLE
... productivity should be bounded in absolute value between zero and one (see the discussion in Chinn, 1997), which makes it difficult to appeal to measurement error in explaining this finding. Even assuming that both the relative price variable and the broad productivity indices mismeasure the releva ...
... productivity should be bounded in absolute value between zero and one (see the discussion in Chinn, 1997), which makes it difficult to appeal to measurement error in explaining this finding. Even assuming that both the relative price variable and the broad productivity indices mismeasure the releva ...
Internal Balance
... U.S. External Balance Problems Under Bretton Woods • The collapse of the Bretton Woods system was caused primarily by imbalances of the U.S. during the 1960s and 1970s. – The U.S. current account surplus became a deficit in 1971. – Rapidly increasing government purchases increased aggregate demand ...
... U.S. External Balance Problems Under Bretton Woods • The collapse of the Bretton Woods system was caused primarily by imbalances of the U.S. during the 1960s and 1970s. – The U.S. current account surplus became a deficit in 1971. – Rapidly increasing government purchases increased aggregate demand ...
Download Dissertation
... from long term averages of real exchange rates are found to be predictors of crash risk. I also show that there is significant information in real exchange rate signals that does not seem to be priced. In addition to demonstrating this in outright currency markets I provide evidence suggesting that ...
... from long term averages of real exchange rates are found to be predictors of crash risk. I also show that there is significant information in real exchange rate signals that does not seem to be priced. In addition to demonstrating this in outright currency markets I provide evidence suggesting that ...
A 200
... Teenage employment will stay the same because the market-clearing wage is lower than W1 and W2. ...
... Teenage employment will stay the same because the market-clearing wage is lower than W1 and W2. ...
What the Fed`s Next Move Could Mean
... in itself, it is going to be a “so what?” If the high quality corporates were paying another ¼ percent or so on their bonds, I can’t imagine that having a very big effect. The question is: what do market actors expect after that? Suppose the Fed increased short-term rates by ¼ percent six times in a ...
... in itself, it is going to be a “so what?” If the high quality corporates were paying another ¼ percent or so on their bonds, I can’t imagine that having a very big effect. The question is: what do market actors expect after that? Suppose the Fed increased short-term rates by ¼ percent six times in a ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Exchange Rates and International Macroeconomics
... Prefixed Rates and Perfect Capital Mobility ...
... Prefixed Rates and Perfect Capital Mobility ...
Chapter 24 The Open Economy with Fixed Exchange Rates
... Going back to Figure 24.3, we observe a remarkable polarization of the choice of exchange rate regimes over the last decade. In 1991 almost two thirds of all countries had some form of intermediate exchange rate arrangement. A decade later a lot of countries had moved either towards a hard peg or to ...
... Going back to Figure 24.3, we observe a remarkable polarization of the choice of exchange rate regimes over the last decade. In 1991 almost two thirds of all countries had some form of intermediate exchange rate arrangement. A decade later a lot of countries had moved either towards a hard peg or to ...
On the Government Spending Multiplier
... There has been much recent attention given to the concept of the government spending multiplier. In this document I discuss what the multiplier is, how it is derived, and when it might be large. In the model with which we have worked so far, output is exogenously given. That is, y s = y fixed. The t ...
... There has been much recent attention given to the concept of the government spending multiplier. In this document I discuss what the multiplier is, how it is derived, and when it might be large. In the model with which we have worked so far, output is exogenously given. That is, y s = y fixed. The t ...
This PDF is a selection from an out-of-print volume from the... of Economic Research
... Figure 11.3 plots three series of interest rates: the official bank loan rate, the yield rate of three-year corporate bonds, and the curb market rate, all of which are converted into real terms by subtracting the actual inflation rate. It is well known that the official interest rates on bank loans ...
... Figure 11.3 plots three series of interest rates: the official bank loan rate, the yield rate of three-year corporate bonds, and the curb market rate, all of which are converted into real terms by subtracting the actual inflation rate. It is well known that the official interest rates on bank loans ...
Azerbaijan Country Presentation Azerbaijan Export and Investment Promotion Foundation
... on average an economy is from the best performance achieved by any economy on each Doing Business indicator since 2005. Some sub-indicators: Registering property – 13th Starting a business– 10th Enforcing contracts – 28th Getting credit – 55th ...
... on average an economy is from the best performance achieved by any economy on each Doing Business indicator since 2005. Some sub-indicators: Registering property – 13th Starting a business– 10th Enforcing contracts – 28th Getting credit – 55th ...
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.