Dubravko Radosevic PEAC Final version Brussels
... because fixed exchange rate was the nominal anchor in disinflation process) and interest rates at international capital markets on external loans, enabled „carry trade“ to foreign banks, and led to rising external debt. 1.3. European monetary union and debt crisis In a nutshell, both countries (Cro ...
... because fixed exchange rate was the nominal anchor in disinflation process) and interest rates at international capital markets on external loans, enabled „carry trade“ to foreign banks, and led to rising external debt. 1.3. European monetary union and debt crisis In a nutshell, both countries (Cro ...
NBER WORKING PAPER SERIES COMMODITY EXPORT BOOM AND THE REAL EXCHANGE RATE:
... exchange rate effects. These are captured by term B. As can be seen from this expression, there are three different channels, in addition to the spending effect, through which changes in the commodity export price will ...
... exchange rate effects. These are captured by term B. As can be seen from this expression, there are three different channels, in addition to the spending effect, through which changes in the commodity export price will ...
Global Watch June 2003 special issue
... (including housing and corporate capital expenditure) (Chart 2). Demand from overseas also stayed strong and the Thai economy is in excellent condition with domestic and overseas demand well balanced. Overall growth rate for 2002 was 5.2% yoy, the highest level since the currency crisis in 1997. Cha ...
... (including housing and corporate capital expenditure) (Chart 2). Demand from overseas also stayed strong and the Thai economy is in excellent condition with domestic and overseas demand well balanced. Overall growth rate for 2002 was 5.2% yoy, the highest level since the currency crisis in 1997. Cha ...
Chapter 2: Introduction to Exchange Rates and Foreign
... Arbitrage and Spot Exchange Rate No Arbitrage Conditions ...
... Arbitrage and Spot Exchange Rate No Arbitrage Conditions ...
Remarks by Chairman Ben S. Bernanke Before the Economic Club
... As I have noted, each of the forward interest rates implicit in the term structure can be usefully decomposed into two parts: (1) the spot interest rate that market participants currently expect to prevail at the corresponding date in the future and (2) the additional compensation that investors req ...
... As I have noted, each of the forward interest rates implicit in the term structure can be usefully decomposed into two parts: (1) the spot interest rate that market participants currently expect to prevail at the corresponding date in the future and (2) the additional compensation that investors req ...
J. Richardson
... The great advantage of a floating exchange rate system was to have been that the adjustment would take place automatically through currency appreciations and depreciations, removing the need for otherwise undesirable trade and capital controls, and allowing governments to concentrate their policies ...
... The great advantage of a floating exchange rate system was to have been that the adjustment would take place automatically through currency appreciations and depreciations, removing the need for otherwise undesirable trade and capital controls, and allowing governments to concentrate their policies ...
R C Morris Goldstein ENMINBI
... equilibrium in the home country’s balance of payments, where equilibrium means an “underlying” current account position that is approximately equal (and opposite in sign) to “normal” net capital flows. Suppose we take the average of China’s capital account balance over the 1999–2002 period—a surplus ...
... equilibrium in the home country’s balance of payments, where equilibrium means an “underlying” current account position that is approximately equal (and opposite in sign) to “normal” net capital flows. Suppose we take the average of China’s capital account balance over the 1999–2002 period—a surplus ...
International Coordination, J. Frankel, Harvard and the NBER Overview
... matters. The claims on the Trilemma’s death and the futility of a flexible exchange rate may be exaggerated. An economy that pursues greater exchange rate stability and financial openness faces a stronger link with the center economies. Aizenman, Chinn & Ito, 2015. 4. Quality of institutions matters ...
... matters. The claims on the Trilemma’s death and the futility of a flexible exchange rate may be exaggerated. An economy that pursues greater exchange rate stability and financial openness faces a stronger link with the center economies. Aizenman, Chinn & Ito, 2015. 4. Quality of institutions matters ...
2017 Investment and risk outlook
... towards thrusts from fiscal stimulus and structural reform and away from reliance on diminishing returns from loose monetary policies. Expectations for central bank policy rates are now turning positive, rising from zero, if not negative real rates, and ostensibly onceunfettered mechanics of free-ma ...
... towards thrusts from fiscal stimulus and structural reform and away from reliance on diminishing returns from loose monetary policies. Expectations for central bank policy rates are now turning positive, rising from zero, if not negative real rates, and ostensibly onceunfettered mechanics of free-ma ...
Consequence of Innovation: About Twenty
... discourage future competitors from entering the marketplace. But wouldn’t lower prices increase spending? When customers spend, they engage in profit maximization activity. During inflation, for example, customers spend more, because the future will cost more tomorrow. Because during deflation custo ...
... discourage future competitors from entering the marketplace. But wouldn’t lower prices increase spending? When customers spend, they engage in profit maximization activity. During inflation, for example, customers spend more, because the future will cost more tomorrow. Because during deflation custo ...
National Income: Where It Comes From and Where It Goes
... • If prices are low a year from today, the purchasing power of the $10 you pay in interest will be high. So, you will regret the loss • If prices are high a year from today, the purchasing power of the $10 you pay in interest will be low. You will not regret the loss as much ...
... • If prices are low a year from today, the purchasing power of the $10 you pay in interest will be high. So, you will regret the loss • If prices are high a year from today, the purchasing power of the $10 you pay in interest will be low. You will not regret the loss as much ...
Vehicle Currency Use in International Trade
... between competitors' goods, with macro-economic factors, such as business cycle and exchange rate volatility. We show that industry characteristics are more relevant for industries where goods are closer substitutes. Consider the situation of a firm selling to a foreign market. With prices in the ma ...
... between competitors' goods, with macro-economic factors, such as business cycle and exchange rate volatility. We show that industry characteristics are more relevant for industries where goods are closer substitutes. Consider the situation of a firm selling to a foreign market. With prices in the ma ...
February 2003
... than in January this year and in December last year). The koruna is expected to start appreciating sometime in the second half of the year, when the economic recovery is expected to begin and when some analysts also expect the FDI inflow to pick up, owing to the Czech Republic’s accession to the EU ...
... than in January this year and in December last year). The koruna is expected to start appreciating sometime in the second half of the year, when the economic recovery is expected to begin and when some analysts also expect the FDI inflow to pick up, owing to the Czech Republic’s accession to the EU ...
Macroeconomics - Mr. Fenn
... good whose inherent value serves as the value of money – gold or silver being one good example. Fiat money is a good whose value is less than the value of money it represents – paper money, for instance. Bank money consists of accounting credits that can be drawn on by the depositor – checking accou ...
... good whose inherent value serves as the value of money – gold or silver being one good example. Fiat money is a good whose value is less than the value of money it represents – paper money, for instance. Bank money consists of accounting credits that can be drawn on by the depositor – checking accou ...
International trends in productivity and unit labor costs in manufacturing
... 4.4 percent in manufacturing in the United States in 1985 . This exceeded the rates of gain recorded by Canada and 7 of 9 European countries studied-France, Italy, the United Kingdom, Denmark, the Netherlands, Norway, and Sweden . However, two major trade competitors, Japan and West Germany, along w ...
... 4.4 percent in manufacturing in the United States in 1985 . This exceeded the rates of gain recorded by Canada and 7 of 9 European countries studied-France, Italy, the United Kingdom, Denmark, the Netherlands, Norway, and Sweden . However, two major trade competitors, Japan and West Germany, along w ...
An Economic Perspective on the Natural Resource Curse and Its
... • 8) Keeping out foreign companies altogether. – But often they have the needed technical expertise. – Examples: declining oil production in Mexico & Venezuela. ...
... • 8) Keeping out foreign companies altogether. – But often they have the needed technical expertise. – Examples: declining oil production in Mexico & Venezuela. ...
Boo Sjöö
... The demand and supply can be decomposed into the private sector net demand and public sector net demand. At the short end of market, the central bank is often an important actor and can therefore influence short term (money market) interest rates. Typically the banking sector as a whole has excess l ...
... The demand and supply can be decomposed into the private sector net demand and public sector net demand. At the short end of market, the central bank is often an important actor and can therefore influence short term (money market) interest rates. Typically the banking sector as a whole has excess l ...
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... whereas the other macro regions had positive net asset positions (they are net creditors in the world economy). ...
... whereas the other macro regions had positive net asset positions (they are net creditors in the world economy). ...
IS-LM Model
... M2 - purely transaction-based (M1) plus easily transferable savings accounts (e.g., overnight repurchase agreements, US dollar accounts in Europe, money-market mutual funds, savings deposits, small time deposits) M3 - everything in M2 plus large time deposits & other accounts used less frequently f ...
... M2 - purely transaction-based (M1) plus easily transferable savings accounts (e.g., overnight repurchase agreements, US dollar accounts in Europe, money-market mutual funds, savings deposits, small time deposits) M3 - everything in M2 plus large time deposits & other accounts used less frequently f ...
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.