economic papers 165 .EMU and the euro – the first 10 years
... not an optimal currency area. This point, which dates back from the analysis of optimal currency areas initiated by Robert Mundell and others in the 1960s, has been debated continuously since the announcement of the plans for a monetary union in Europe. A sizeable body of empirical work reaches the ...
... not an optimal currency area. This point, which dates back from the analysis of optimal currency areas initiated by Robert Mundell and others in the 1960s, has been debated continuously since the announcement of the plans for a monetary union in Europe. A sizeable body of empirical work reaches the ...
Inflation and Other Risks of Unsound Money
... The State’s Role in Money State intervention is not required for the proper functioning of money. In a free market, money is acquired by producing and selling goods. Money flows to producers from consumers. To consume one must have previously gained money from production. As any amount of the chosen ...
... The State’s Role in Money State intervention is not required for the proper functioning of money. In a free market, money is acquired by producing and selling goods. Money flows to producers from consumers. To consume one must have previously gained money from production. As any amount of the chosen ...
International Trade Compliance Terms 01
... Corrected for price changes to yield an equivalent in terms of goods and services. The adjustment divides nominal amounts for different years by price indices for those years -- e.g. the CPI or the implicit price deflator -- and multiplies by 100. This converts to real values, i.e. valued at the pri ...
... Corrected for price changes to yield an equivalent in terms of goods and services. The adjustment divides nominal amounts for different years by price indices for those years -- e.g. the CPI or the implicit price deflator -- and multiplies by 100. This converts to real values, i.e. valued at the pri ...
Multiple-choice questions to accompany
... But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation a) the CPI rises by less than the cost of living b) the CPI rises by more than the cost of living c) the CPI and the cost of living rise by the same amount d) there is no consi ...
... But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation a) the CPI rises by less than the cost of living b) the CPI rises by more than the cost of living c) the CPI and the cost of living rise by the same amount d) there is no consi ...
I Is Inflation Dead?
... rate for men aged 35 to 54 as a function of the group’s population share and participation rate. This new series portrays how the unemployment rate varies through time relative to the early 1960s, based on changes in basic demographics. These demographic shifts do not have a huge impact. The highest ...
... rate for men aged 35 to 54 as a function of the group’s population share and participation rate. This new series portrays how the unemployment rate varies through time relative to the early 1960s, based on changes in basic demographics. These demographic shifts do not have a huge impact. The highest ...
Smoking or trading ? On cigarette money in post WW2
... consumption goods while cigarette circulates as money in the whole population, implying that smokers partially renounced to its consumption. Second and consequently, the size of the stock of a good used as partial intermediary of exchange has to be lower than the one of a good used as commodity mone ...
... consumption goods while cigarette circulates as money in the whole population, implying that smokers partially renounced to its consumption. Second and consequently, the size of the stock of a good used as partial intermediary of exchange has to be lower than the one of a good used as commodity mone ...
Distribution Costs and Real Exchange Rate Dynamics
... There is a large literature that studies the macroeconomic impact of exchange-rate-based stabilizations. This literature has made substantial progress in explaining the behavior of consumption, investment, and the current account during stabilizations (see Calvo and Végh (1999) for a recent survey). ...
... There is a large literature that studies the macroeconomic impact of exchange-rate-based stabilizations. This literature has made substantial progress in explaining the behavior of consumption, investment, and the current account during stabilizations (see Calvo and Végh (1999) for a recent survey). ...
Adopting Inflation Targeting in Pakistan
... the disciplining of monetary policy (Mishkin, 1998). Policymakers may choose the interest rate, money supply, or exchange rate as an anchor. In most countries adopting IT, the nominal interest rate is considered an operational instrument. The short-run nominal interest rate is recommended as a targe ...
... the disciplining of monetary policy (Mishkin, 1998). Policymakers may choose the interest rate, money supply, or exchange rate as an anchor. In most countries adopting IT, the nominal interest rate is considered an operational instrument. The short-run nominal interest rate is recommended as a targe ...
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... One area that has not been sufficiently addressed in previous work is the role of severe currency and/or balance of payments crises on output growth and how these events interact with subsequent participation in IMF programs. We argue that Heckman’s (1979) Inverse Mills Ratio (IMR) approach does no ...
... One area that has not been sufficiently addressed in previous work is the role of severe currency and/or balance of payments crises on output growth and how these events interact with subsequent participation in IMF programs. We argue that Heckman’s (1979) Inverse Mills Ratio (IMR) approach does no ...
MONETARY POLICY REPORT CENTRAL BANK OF THE REPUBLIC OF TURKEY JULY 2002
... economic administration, Turkish Lira depreciated sharply in June. Expectations Survey of CBRT indicates an increase in interest rate and exchange rate forecasts in June. For example, June exchange rate forecasts for the end year 2002 has moved to 1.800.000 Turkish Liras, up from 1.750.000 in May. T ...
... economic administration, Turkish Lira depreciated sharply in June. Expectations Survey of CBRT indicates an increase in interest rate and exchange rate forecasts in June. For example, June exchange rate forecasts for the end year 2002 has moved to 1.800.000 Turkish Liras, up from 1.750.000 in May. T ...
money affects real gdp - Choose your book for Principles of
... explained the change in M1 velocity from the 1950s to the 1980s? • Increased use of credit cards during this period allowed people to buy more goods and services with less cash and lower demand deposit balances relative to nominal GDP. ...
... explained the change in M1 velocity from the 1950s to the 1980s? • Increased use of credit cards during this period allowed people to buy more goods and services with less cash and lower demand deposit balances relative to nominal GDP. ...
Chapter 24 Aggregate Demand and Aggregate Supply
... If the price level rose then people would need to hold more money to purchase the same amount of real goods (they buy the same things but these things cost more). This we represent by shifting the money demand curve to the right. Notice that the effect is to raise interest rates. The effect of a pri ...
... If the price level rose then people would need to hold more money to purchase the same amount of real goods (they buy the same things but these things cost more). This we represent by shifting the money demand curve to the right. Notice that the effect is to raise interest rates. The effect of a pri ...
World Real Interest Rates and Business Cycles in Open Economies:
... surprising, then, that much of the existing empirical literature finds that world real interest rate movements are not important in explaining the dynamics of small open economies. This literature (see for example, Mendoza (1991), Correia, Neves, and Rebelo (1992, 1995), and Schmitt-Grohe (1998)) fi ...
... surprising, then, that much of the existing empirical literature finds that world real interest rate movements are not important in explaining the dynamics of small open economies. This literature (see for example, Mendoza (1991), Correia, Neves, and Rebelo (1992, 1995), and Schmitt-Grohe (1998)) fi ...
BEING KEYNESIAN IN THE SHORT TERM AND CLASSICAL IN
... stock, as well as prices. Short-term variables include demand (consumption and investment), output (or, what is equivalent, since productive capacity is given in the short term, the capacity utilization rates) and, possibly, inventories. For given values of capital stocks, the money stock, and price ...
... stock, as well as prices. Short-term variables include demand (consumption and investment), output (or, what is equivalent, since productive capacity is given in the short term, the capacity utilization rates) and, possibly, inventories. For given values of capital stocks, the money stock, and price ...
12 INFLATION
... of the additional home runs, not an explanation that focuses on the performance of specific players. Effects of Inflation Numerical exercises can illustrate the income distribution effects very clearly. The wage example is very easy to do, simply in terms of an expected inflation rate, an agreed mon ...
... of the additional home runs, not an explanation that focuses on the performance of specific players. Effects of Inflation Numerical exercises can illustrate the income distribution effects very clearly. The wage example is very easy to do, simply in terms of an expected inflation rate, an agreed mon ...
No.314 / January 2010 External Imbalances and Fiscal Policy Philip R. Lane
... be associated with an increase in external debt. For instance, Ganelli (2005) and Kumhof and Laxton (2009) provide models in which households have …nite horizons, such that a debt-…nanced tax cut increases the wealth of currently-alive cohorts, boosting consumption and generating a current account d ...
... be associated with an increase in external debt. For instance, Ganelli (2005) and Kumhof and Laxton (2009) provide models in which households have …nite horizons, such that a debt-…nanced tax cut increases the wealth of currently-alive cohorts, boosting consumption and generating a current account d ...
NBER WORKING PAPER SERIES USING MONETARY CONTROL 10 DAMPEN THE
... 1970s as compared to the 1950s and early l960s. Thus a careful distinction must be made between the small role of money growth in contributing to the short—run timing of individual cycles, and its large role in contributing to the acceleration of nominal GNP growth and inflation that occurred in the ...
... 1970s as compared to the 1950s and early l960s. Thus a careful distinction must be made between the small role of money growth in contributing to the short—run timing of individual cycles, and its large role in contributing to the acceleration of nominal GNP growth and inflation that occurred in the ...
key issues in the choice of an appropriate monetary policy
... High domestic demand fuelled by expansionary fiscal policies and accommodating monetary policies and the high proclivity of the economy to supply shocks—particularly with respect to food, which commands a large weight in the consumption basket—have been identified as the principal causes of the high ...
... High domestic demand fuelled by expansionary fiscal policies and accommodating monetary policies and the high proclivity of the economy to supply shocks—particularly with respect to food, which commands a large weight in the consumption basket—have been identified as the principal causes of the high ...
Fiscal Policy and the Current Account
... that ―news that induces the government to provide fiscal impetus may also lead to a sell-off in currency markets.‖ ...
... that ―news that induces the government to provide fiscal impetus may also lead to a sell-off in currency markets.‖ ...
Working Paper No 42
... Prior to the move to monetary union it was widely recognised that the ESCB will need to have at its disposal analysis capacities, including a broad range of econometric tools (EMI, [1997]). It was envisaged that, as it is the case in most central banks, the econometric toolbox would include tradit ...
... Prior to the move to monetary union it was widely recognised that the ESCB will need to have at its disposal analysis capacities, including a broad range of econometric tools (EMI, [1997]). It was envisaged that, as it is the case in most central banks, the econometric toolbox would include tradit ...
NBER WORKING PAPER SERIES PRODUCTIVITY, EXTERNAL BALANCE AND
... (MFD) model. Speci…cally, in the MFD model with ‡exible exchange rate, a real (’IS’) demand boom raising output and employment, also increases imports and appreciates the currency in real terms (hence net exports are ‘crowded out’). Overall, consumption and output booms are associated with a stronge ...
... (MFD) model. Speci…cally, in the MFD model with ‡exible exchange rate, a real (’IS’) demand boom raising output and employment, also increases imports and appreciates the currency in real terms (hence net exports are ‘crowded out’). Overall, consumption and output booms are associated with a stronge ...
NBER WORKING PAPERS SERIES OPENNESS AND INFLATION: THEORY AND EVIDENCE David Romer
... imports are imperfect substitutes, real depreciation is necessary even if the country faces a perfectly elastic demand curve for its export goods. Thus the central results of the model would also hold in a model of an economy that produced services and protected manufactures for domestic consumption ...
... imports are imperfect substitutes, real depreciation is necessary even if the country faces a perfectly elastic demand curve for its export goods. Thus the central results of the model would also hold in a model of an economy that produced services and protected manufactures for domestic consumption ...
the prerequisites for progress towards a single currency in the
... Although relatively little progress has been made in other regional organisations in Africa, there is nothing in the criteria set out for the MHP that could be interpreted as being damaging to the interests of non-member countries or as currently conflicting with the objectives of other regional gr ...
... Although relatively little progress has been made in other regional organisations in Africa, there is nothing in the criteria set out for the MHP that could be interpreted as being damaging to the interests of non-member countries or as currently conflicting with the objectives of other regional gr ...
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.