NBER WORKING PAPER SERIES REAL EXCHANGE RATE VOLATILITY IN SUDDEN-STOP-PRONE ECONOMIES
... tradables relative prices tend to be generally positive or negligible and (b) variance ratios corrected to take into account these covariances generally do not change results derived using approximate variance ratios that ignore them. Contrary to these findings, in periods in which Mexico had a mana ...
... tradables relative prices tend to be generally positive or negligible and (b) variance ratios corrected to take into account these covariances generally do not change results derived using approximate variance ratios that ignore them. Contrary to these findings, in periods in which Mexico had a mana ...
Energy prices and the real exchange rate of commodity
... the economy produces three goods, energy products and manufactured or agricultural products, all aimed at exports, plus a non-tradable good.8 The production process requires labor for all three outputs and a specific factor to each industry (mobility is restricted to the country). For simplication p ...
... the economy produces three goods, energy products and manufactured or agricultural products, all aimed at exports, plus a non-tradable good.8 The production process requires labor for all three outputs and a specific factor to each industry (mobility is restricted to the country). For simplication p ...
File - Business at Sias
... 1. Activities in financial markets have direct effects on individuals’ wealth, the behavior of businesses, and the efficiency of an economy. Three financial markets deserve attention: the bond market (where interest rates are determined), the stock market, and the foreign exchange market. 2. Banks a ...
... 1. Activities in financial markets have direct effects on individuals’ wealth, the behavior of businesses, and the efficiency of an economy. Three financial markets deserve attention: the bond market (where interest rates are determined), the stock market, and the foreign exchange market. 2. Banks a ...
PDF
... the economy produces three goods, energy products and manufactured or agricultural products, all aimed at exports, plus a non-tradable good.8 The production process requires labor for all three outputs and a specific factor to each industry (mobility is restricted to the country). For simplication p ...
... the economy produces three goods, energy products and manufactured or agricultural products, all aimed at exports, plus a non-tradable good.8 The production process requires labor for all three outputs and a specific factor to each industry (mobility is restricted to the country). For simplication p ...
Do China and oil exporters influence major currency configurations?
... It is of course difficult to gauge to what extent the magnitude of these estimates is economically relevant. Calculating the cumulated effect of EME statements by year shows that statements by EME officials led to an appreciation of the euro against the US dollar by as much as 7 percentage points i ...
... It is of course difficult to gauge to what extent the magnitude of these estimates is economically relevant. Calculating the cumulated effect of EME statements by year shows that statements by EME officials led to an appreciation of the euro against the US dollar by as much as 7 percentage points i ...
Economics of exchange rates and policy options
... equilibrium, the central banks may contract (or expand) the money supply, when output growth declined due to high or low inflation. The macro policy is incentive-compatible with micro investment strategies, which otherwise may fail to revert to the positive equilibrium or the fair value. In the conc ...
... equilibrium, the central banks may contract (or expand) the money supply, when output growth declined due to high or low inflation. The macro policy is incentive-compatible with micro investment strategies, which otherwise may fail to revert to the positive equilibrium or the fair value. In the conc ...
PHILGEM: A General Equilibrium Model of the Philippines
... results show that higher exports supply is mainly driven by two factors: the real exchange rate depreciation, so increasing the competitiveness of exports abroad; and higher foreign demand for Philippine exports. The terms of trade improve due to higher exports price effects. Given downward-sloping ...
... results show that higher exports supply is mainly driven by two factors: the real exchange rate depreciation, so increasing the competitiveness of exports abroad; and higher foreign demand for Philippine exports. The terms of trade improve due to higher exports price effects. Given downward-sloping ...
NEWS RELEASE News Release No. 2007/58/DEC Contacts
... corresponds to travelers’ experience of making purchases after converting their currency at market exchange rates. The Price Level Index is the ratio of a country’s PPP divided by its exchange rate to the US dollar. An index over 100 means prices are higher on average than in the US, and one less th ...
... corresponds to travelers’ experience of making purchases after converting their currency at market exchange rates. The Price Level Index is the ratio of a country’s PPP divided by its exchange rate to the US dollar. An index over 100 means prices are higher on average than in the US, and one less th ...
Interdependence between Foreign Exchange
... stock trading as a relevant argument in the demand for money (an expansion of the money supply could be misjudged as expansionary while it might be neutral or even restrictive, namely if rising turnover figures in asset markets fully absorb the additional liquidity) led indirectly to the Great Depre ...
... stock trading as a relevant argument in the demand for money (an expansion of the money supply could be misjudged as expansionary while it might be neutral or even restrictive, namely if rising turnover figures in asset markets fully absorb the additional liquidity) led indirectly to the Great Depre ...
Long memory and nonlinear mean reversion in Japanese yen
... The apparent revival of the empirical relevance of PPP has been typically attributed to the improved statistical power attained through using efficient testing procedures and/or longer sample series available for the current float (Lothian and Taylor, 1997). This generic explanation in terms of pure ...
... The apparent revival of the empirical relevance of PPP has been typically attributed to the improved statistical power attained through using efficient testing procedures and/or longer sample series available for the current float (Lothian and Taylor, 1997). This generic explanation in terms of pure ...
Davidson on Keynes: the open economy dimension
... that Keynes’s theory was intended only for a “closed economy,” Keynes was acutely aware of the challenges posed by international trade and financial flows for the formulation of economic policy in the national interest, and accordingly he frequently addressed “open economy” issues in both his theore ...
... that Keynes’s theory was intended only for a “closed economy,” Keynes was acutely aware of the challenges posed by international trade and financial flows for the formulation of economic policy in the national interest, and accordingly he frequently addressed “open economy” issues in both his theore ...
Expanding Beyond Borders: The Yen and the Yuan
... franc, fit the definition of an international currency, but they have different roles in the international monetary system, and these roles define each currency’s scope. The dollar is the key global currency, as its use in denominating international transactions, settling international payments, and ...
... franc, fit the definition of an international currency, but they have different roles in the international monetary system, and these roles define each currency’s scope. The dollar is the key global currency, as its use in denominating international transactions, settling international payments, and ...
The Argentine Monetary and Financial Policies and the Crisis
... changed in 2006 to quarterly targets on M2 in pesos (bills and coins held by the public plus public and private sectors’ current and savings accounts) with the purpose of improving transparency and advancing on a more representative aggregate to guide the monetary conditions of the economy. This qua ...
... changed in 2006 to quarterly targets on M2 in pesos (bills and coins held by the public plus public and private sectors’ current and savings accounts) with the purpose of improving transparency and advancing on a more representative aggregate to guide the monetary conditions of the economy. This qua ...
Principles of Economics
... enters graduate school. She has received 2 job offers with the following salary structures: JOB A : pays $ 25,000 in 2012 and $25,350 in 2013 JOB B : pays $ 25,000 in 2012; 2013’s salary will be equal to $25,000 plus a cost of living adjustment ( i.e., a raise equal to the inflation rate in 2013) Su ...
... enters graduate school. She has received 2 job offers with the following salary structures: JOB A : pays $ 25,000 in 2012 and $25,350 in 2013 JOB B : pays $ 25,000 in 2012; 2013’s salary will be equal to $25,000 plus a cost of living adjustment ( i.e., a raise equal to the inflation rate in 2013) Su ...
Document
... • This change has no effect on aggregate demand under a flexible regime and perfect capital mobility. – Interest rate rises to make individuals content to hold only the available stock of real balances. – Capital flows in, domestic currency appreciates, and relative price of domestic goods rise. – N ...
... • This change has no effect on aggregate demand under a flexible regime and perfect capital mobility. – Interest rate rises to make individuals content to hold only the available stock of real balances. – Capital flows in, domestic currency appreciates, and relative price of domestic goods rise. – N ...
Inflation 11.2
... before. 4) But wait…the companies’ costs went up again so they raise the price of their products again. 5) And this continues on and on in an effect known as ...
... before. 4) But wait…the companies’ costs went up again so they raise the price of their products again. 5) And this continues on and on in an effect known as ...
Monetary policy
... be whether V is stable or not The historical pattern justifies the Monetarist assumption of a stable V over long periods of time There is a pattern of short-run variations in velocity ...
... be whether V is stable or not The historical pattern justifies the Monetarist assumption of a stable V over long periods of time There is a pattern of short-run variations in velocity ...
F.5
... At the end of the course, students should be able to 1. recall the basic terminology of Economics, essential facts relating to Economics and economic institutions. 2. understand and interpret economic information presented in numerical, verbal and diagrammatic forms by using the basic economic conce ...
... At the end of the course, students should be able to 1. recall the basic terminology of Economics, essential facts relating to Economics and economic institutions. 2. understand and interpret economic information presented in numerical, verbal and diagrammatic forms by using the basic economic conce ...
Foreign Aid and the Dutch Disease: Evidence
... its exports less competitive on world markets. As a result, exports fall and imports increase, thus worsening the trade balance. The result is a fall in aggregate demand and, consequently, equilibrium income (Van Wijnbergen, 1984, 1985).1 Additionally, as imports become relatively less expensive fol ...
... its exports less competitive on world markets. As a result, exports fall and imports increase, thus worsening the trade balance. The result is a fall in aggregate demand and, consequently, equilibrium income (Van Wijnbergen, 1984, 1985).1 Additionally, as imports become relatively less expensive fol ...
Mishkin Chapter 1
... Interest rates are important on a number of levels. On a personal level, high interest rates could deter you from buying a house or a car because the cost of financing it would be high. Conversely, high interest rates could encourage you to save because you can earn more interest income by putting a ...
... Interest rates are important on a number of levels. On a personal level, high interest rates could deter you from buying a house or a car because the cost of financing it would be high. Conversely, high interest rates could encourage you to save because you can earn more interest income by putting a ...
empirical investigation of the relationship between exchange rate
... fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United States; they came to conclusion that there is no long-term association of movements between exchange rates and stock volatility. Chi ...
... fluctuations in exchange rate. Chiang, Yang, and Wang (1992) conducted a study to examine the link of returns of stock with fluctuations in exchange rate in the United States; they came to conclusion that there is no long-term association of movements between exchange rates and stock volatility. Chi ...
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.