NBER WORKING PAPER SERIES EXTERNAL ADJUSTMENT Maurice Obstfeld Working Paper
... consistent with these trends. In 1982, U.S. owned foreign assets were about 30% of U.S. GDP, U.S. liabilities a bit over 22%. For 2003, the corresponding foreign assets ratio is 72% and the liabilities ratio, 96% making the U.S. net foreign debt 24% of GDP. The United States' very large foreign debt ...
... consistent with these trends. In 1982, U.S. owned foreign assets were about 30% of U.S. GDP, U.S. liabilities a bit over 22%. For 2003, the corresponding foreign assets ratio is 72% and the liabilities ratio, 96% making the U.S. net foreign debt 24% of GDP. The United States' very large foreign debt ...
Optimal Devaluations - Federal Reserve Bank of Minneapolis
... The question we address is a central one for policy design in small open economies. For example, both New Zealand and Chile have explicitly adopted an inflation targeting policy. This means that the central bank defines an inflation rate on the consumer price index as its main policy objective. Ther ...
... The question we address is a central one for policy design in small open economies. For example, both New Zealand and Chile have explicitly adopted an inflation targeting policy. This means that the central bank defines an inflation rate on the consumer price index as its main policy objective. Ther ...
Aggregate Demand
... private, public and foreign sector collectively desire to purchase at each possible price level • The relationship between the price level and the level of Real GDP is inverse – See graph ...
... private, public and foreign sector collectively desire to purchase at each possible price level • The relationship between the price level and the level of Real GDP is inverse – See graph ...
Plain-Vanilla Interest Rate Swap
... the seller has to deliver 100.000 € nominal per contract, will gain from rising rates. A declining Bund Future price allows for a „cheap“ delivery. Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics ...
... the seller has to deliver 100.000 € nominal per contract, will gain from rising rates. A declining Bund Future price allows for a „cheap“ delivery. Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics ...
Zimbabwe’s Black Market for Foreign Exchange Albert Makochekanwa
... exchange constraint through its effects on capital flight and the recorded current account balance. ... Controlling inflation could become more difficult under high premium regimes (p.508)” The negative effects of the parallel exchange rate were also echoed by Kiguel and O’Connel (1995) when they sa ...
... exchange constraint through its effects on capital flight and the recorded current account balance. ... Controlling inflation could become more difficult under high premium regimes (p.508)” The negative effects of the parallel exchange rate were also echoed by Kiguel and O’Connel (1995) when they sa ...
OHP MASTERS
... Defining price elasticity of demand (Pd) • The responsiveness of demand to change in price Measuring price elasticity of demand • %QD / %P • use of proportionate or percentage changes • the sign (positive or negative) • the value (greater or less than one) Determinants of price elasticity of dema ...
... Defining price elasticity of demand (Pd) • The responsiveness of demand to change in price Measuring price elasticity of demand • %QD / %P • use of proportionate or percentage changes • the sign (positive or negative) • the value (greater or less than one) Determinants of price elasticity of dema ...
Why Trade Forex
... Foreign Exchange Market The market in which foreign currencies are traded (bought and sold), the exchange rates are also determined here. Spot Market The spot market is also called the "cash market" because prices are settled in cash on the spot at current market prices. The spot foreign exchange ma ...
... Foreign Exchange Market The market in which foreign currencies are traded (bought and sold), the exchange rates are also determined here. Spot Market The spot market is also called the "cash market" because prices are settled in cash on the spot at current market prices. The spot foreign exchange ma ...
Contagion, Herding and Exchange-rate Instability
... deficit by printing money. As a consequence, the money supply grows in a way which is incompatible with the proclaimed level of the fixed exchange rate. Individuals realise this inconsistency and seek to convert large amounts of their holdings in domestic currency into foreign-denominated securities. ...
... deficit by printing money. As a consequence, the money supply grows in a way which is incompatible with the proclaimed level of the fixed exchange rate. Individuals realise this inconsistency and seek to convert large amounts of their holdings in domestic currency into foreign-denominated securities. ...
Macro_online_chapter_10_13e
... – Firms will tend to restrict production but consumers will tend to increase consumption ...
... – Firms will tend to restrict production but consumers will tend to increase consumption ...
Chapter 22
... FIs can be solvent from a BV perspective, but massively insolvent from an economic perspective The degree to which the BV of equity deviates from the MV of equity depends on: Interest rate volatility Examination and enforcement ...
... FIs can be solvent from a BV perspective, but massively insolvent from an economic perspective The degree to which the BV of equity deviates from the MV of equity depends on: Interest rate volatility Examination and enforcement ...
Aggregate Demand - Business-TES
... There are several explanations for an inverse relationship between aggregate demand and the price level in an economy. These are summarised below: Falling real incomes: As the price level rises, so the real value of people’s incomes fall and consumers are then less able to afford UK produced goods ...
... There are several explanations for an inverse relationship between aggregate demand and the price level in an economy. These are summarised below: Falling real incomes: As the price level rises, so the real value of people’s incomes fall and consumers are then less able to afford UK produced goods ...
LarrySummers Central Bank of Chile
... normal? Does it stay below trend? The general answer is it most commonly stays below trend. Cases where it returns to trend do take place, but they are slightly less numerous than cases where, not just the level of GDP, but the trend and growth of GDP declines after recessions. There are, to be sure ...
... normal? Does it stay below trend? The general answer is it most commonly stays below trend. Cases where it returns to trend do take place, but they are slightly less numerous than cases where, not just the level of GDP, but the trend and growth of GDP declines after recessions. There are, to be sure ...
Money
... If interest rate is smaller than rate of inflation => real value of savings is reduced Redistribution between lenders and debtors: Contracts are based on expected inflation If real inflation is higherthan expected => debtor is better off than lender If real inflation is lowerthan expected => lender ...
... If interest rate is smaller than rate of inflation => real value of savings is reduced Redistribution between lenders and debtors: Contracts are based on expected inflation If real inflation is higherthan expected => debtor is better off than lender If real inflation is lowerthan expected => lender ...
the press release
... normalization”, the interest payments will ‘only’ increase by roughly EUR 280bn 14 years later - in 2022: their absolute value will still fall short of the level reached at the 2008 peak of the credit boom. In the more likely event of ‘‘soft normalization”, interest payments are only expected to inc ...
... normalization”, the interest payments will ‘only’ increase by roughly EUR 280bn 14 years later - in 2022: their absolute value will still fall short of the level reached at the 2008 peak of the credit boom. In the more likely event of ‘‘soft normalization”, interest payments are only expected to inc ...
The Impact of Monetary Policy Announcements
... the relevant macroeconomic variables, while the second strand models news as the di¤erence between the actual and expected values of macroeconomic announcements (Galati & Ho 2003). Using the second strand, expectations are based on survey data from Bloomberg and Reuters news databases. The empirica ...
... the relevant macroeconomic variables, while the second strand models news as the di¤erence between the actual and expected values of macroeconomic announcements (Galati & Ho 2003). Using the second strand, expectations are based on survey data from Bloomberg and Reuters news databases. The empirica ...
II. Measurement of Economic Performance (12
... Problems with disinflation. Often a high rate of inflation is caused by “too much” money being circulated and spent in the economy. The obvious way to reduce the inflation is to act in ways to reduce the amount of money being circulated and spent. This can be painful because this will often reduce d ...
... Problems with disinflation. Often a high rate of inflation is caused by “too much” money being circulated and spent in the economy. The obvious way to reduce the inflation is to act in ways to reduce the amount of money being circulated and spent. This can be painful because this will often reduce d ...
Public Sector Discount Rates for Cost Benefit Analysis
... government’s opportunity cost of capital is much lower than indicated by the CAPM. This approach appears to be followed by Germany and the U.S., who set their discount rates equal to their pre-tax government borrowing rates. Some of these views may not be as irreconcilable as they seem. For example ...
... government’s opportunity cost of capital is much lower than indicated by the CAPM. This approach appears to be followed by Germany and the U.S., who set their discount rates equal to their pre-tax government borrowing rates. Some of these views may not be as irreconcilable as they seem. For example ...
What Have We Learned since October 1979?
... policy impulses into the real economy. Nowadays, many central bankers and economists see long rates as leading short rates. This anticipatory process can work, however, only if the central bank communicates its intentions to the markets effectively. Thus, and this is my final lesson from post-1979 e ...
... policy impulses into the real economy. Nowadays, many central bankers and economists see long rates as leading short rates. This anticipatory process can work, however, only if the central bank communicates its intentions to the markets effectively. Thus, and this is my final lesson from post-1979 e ...
DP2014/01 Exchange rates, expected returns and risk Anella Munro April 2014
... on average, compared to less than 5% when currency risk is assumed to be uncorrelated with returns. Innovations in the risk-free component are correlated with changes in nominal short-term interest rates, a measure of monetary policy. The currency risk premium component of expected returns accounts ...
... on average, compared to less than 5% when currency risk is assumed to be uncorrelated with returns. Innovations in the risk-free component are correlated with changes in nominal short-term interest rates, a measure of monetary policy. The currency risk premium component of expected returns accounts ...
Is a Benign Dollar Policy Wise? William Poole
... evidence that monetary policy is too expansionary. My view is that Fed policy is not too expansionary at present, given the depressed state of the U.S. economy. I do have concerns that the Fed will fail ...
... evidence that monetary policy is too expansionary. My view is that Fed policy is not too expansionary at present, given the depressed state of the U.S. economy. I do have concerns that the Fed will fail ...
5 S-R closed economy
... If the central bank holds the interest rate constant at the floor level (zero in Chart 7), which would be sensible in a depression, the increase in Y would be as given by the simple Keynesian multiplier. If, however, the economy is close to full employment, the central bank would raise the interest ...
... If the central bank holds the interest rate constant at the floor level (zero in Chart 7), which would be sensible in a depression, the increase in Y would be as given by the simple Keynesian multiplier. If, however, the economy is close to full employment, the central bank would raise the interest ...
Chinese Exporters, Exchange Rate Exposure, and the
... to Cline and Williamson (2007).1 U.S. government o¢ cials have consistently argued for a more rapid appreciation of the renminbi against the U.S. dollar in part to avoid more protectionist measures advocated by critics of the rising bilateral trade imbalance between the countries. While China formal ...
... to Cline and Williamson (2007).1 U.S. government o¢ cials have consistently argued for a more rapid appreciation of the renminbi against the U.S. dollar in part to avoid more protectionist measures advocated by critics of the rising bilateral trade imbalance between the countries. While China formal ...
Employment, Growth, Inflation
... o Provides wide ranging evidence on the natural rate hypothesis and the expectations augmented Phillips curve, integrating the latter with a demand approach to inflation. o Puts together evidence challenging the conventional view that the mid-1970s stagflation was due to the October 1973 quadrupling ...
... o Provides wide ranging evidence on the natural rate hypothesis and the expectations augmented Phillips curve, integrating the latter with a demand approach to inflation. o Puts together evidence challenging the conventional view that the mid-1970s stagflation was due to the October 1973 quadrupling ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 21
... Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Other European countries tried to continue the fixed exchange rate in order not to lose t ...
... Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Other European countries tried to continue the fixed exchange rate in order not to lose t ...
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.