The eurozone - Global economy, world economy
... the crisis its debt increased even more and could not be paid. Government debt as percent of GDP ...
... the crisis its debt increased even more and could not be paid. Government debt as percent of GDP ...
PDF
... noted in my paper at Banff, referred to above, changes in monetary policies are now reflected in changes in the trade sector of national economies. As a country tries to tighten its monetary policy, the upward pressure it puts on interest rates induces an inflow of capital and this causes the value ...
... noted in my paper at Banff, referred to above, changes in monetary policies are now reflected in changes in the trade sector of national economies. As a country tries to tighten its monetary policy, the upward pressure it puts on interest rates induces an inflow of capital and this causes the value ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... depends on the differential rates applied to final goods and inputs and on the differential between final goods and the economywide average. Table 4.1, as an example, indicates a preferential export rate (144) for prepared meats (sausages) and a lower rates (100) for the intermediate good, which in ...
... depends on the differential rates applied to final goods and inputs and on the differential between final goods and the economywide average. Table 4.1, as an example, indicates a preferential export rate (144) for prepared meats (sausages) and a lower rates (100) for the intermediate good, which in ...
“Treasury Secretary Effect” in Yen/Yuan
... Japan in the 1980s and contemporary China are generally regarded as a rising economic power threatening the role of the hegemon, which basically follow similar patterns of behaviors. According to the neorealist hegemony theory, as a result, the United States should employ all its resources to contai ...
... Japan in the 1980s and contemporary China are generally regarded as a rising economic power threatening the role of the hegemon, which basically follow similar patterns of behaviors. According to the neorealist hegemony theory, as a result, the United States should employ all its resources to contai ...
Blank5.1 - Bellarmine University
... this is possible depends on the elasticities of demand and supply. Generally, the more elastic (inelastic) demand is, the more difficult (easier) it is for the firm to pass the tax burden to the consumer. In contrast, the more inelastic (elastic) supply is, the more difficult (easier) it is to pass ...
... this is possible depends on the elasticities of demand and supply. Generally, the more elastic (inelastic) demand is, the more difficult (easier) it is for the firm to pass the tax burden to the consumer. In contrast, the more inelastic (elastic) supply is, the more difficult (easier) it is to pass ...
european monetary union, euro and impacts of euro on trnc
... On the other hand if a member nation of EMU is hit by a shock that does not affect the rest members in the same way, then the nation will fight the shock with itself alone, and the member nation will not have a chance to set its interest rates. For example, if there is a fall in the demand of some p ...
... On the other hand if a member nation of EMU is hit by a shock that does not affect the rest members in the same way, then the nation will fight the shock with itself alone, and the member nation will not have a chance to set its interest rates. For example, if there is a fall in the demand of some p ...
NBER WORKING PAPER SERIES INFLATION, EXCHANGE RATES AND STABILIZATION Working Paper No. 1739
... the gain in competitiveness required to service the foreign debt, but they may not always fully benefit in the stage I where shifting into foreign assets or durables is the name of the game. ...
... the gain in competitiveness required to service the foreign debt, but they may not always fully benefit in the stage I where shifting into foreign assets or durables is the name of the game. ...
NBER WORKING PAPER SERIES CAUSES OF APPRECIATION AND VOLATILITY OF THE DOLLAR
... In 1981 real interest rates in the United States increased spectacularly, and the dollar appreciated in real terms by about 20 percent. Since the end of 1981, long-term real interest rates have remained in the range of 5-10 percent, with nominal long rates above short rates. The dollar appreciated f ...
... In 1981 real interest rates in the United States increased spectacularly, and the dollar appreciated in real terms by about 20 percent. Since the end of 1981, long-term real interest rates have remained in the range of 5-10 percent, with nominal long rates above short rates. The dollar appreciated f ...
Discussion of “International Coordination” by
... • An important example of what might matter from the global perspective is currency misalignment. • Suppose both countries were producing at full employment and had zero inflation? Why would we care about currency misalignment? • With local-currency consumer price stickiness, consumers in different ...
... • An important example of what might matter from the global perspective is currency misalignment. • Suppose both countries were producing at full employment and had zero inflation? Why would we care about currency misalignment? • With local-currency consumer price stickiness, consumers in different ...
NBER WORKING PAPER SERIES FEAR OF SUDDEN STOPS: Ricardo Caballero
... Despite these similarities, external shocks have had much milder macroeconomic consequences in Australia. Why Chile? Because on one hand Chile is arguably the most advanced economy in Latin America in terms of institutional development and macroeconomic stability, and in this sense the closest to Au ...
... Despite these similarities, external shocks have had much milder macroeconomic consequences in Australia. Why Chile? Because on one hand Chile is arguably the most advanced economy in Latin America in terms of institutional development and macroeconomic stability, and in this sense the closest to Au ...
Economics Exit Exam Preparation
... this is possible depends on the elasticities of demand and supply. Generally, the more elastic (inelastic) demand is, the more difficult (easier) it is for the firm to pass the tax burden to the consumer. In contrast, the more inelastic (elastic) supply is, the more difficult (easier) it is to pass ...
... this is possible depends on the elasticities of demand and supply. Generally, the more elastic (inelastic) demand is, the more difficult (easier) it is for the firm to pass the tax burden to the consumer. In contrast, the more inelastic (elastic) supply is, the more difficult (easier) it is to pass ...
The global financial crisis and policy response in Mexico
... Mexico’s exports and a deterioration in its terms of trade. Second, the climate of extreme risk aversion among international investors and the global deleveraging process significantly constrained access to international financial markets. There was a distinct possibility that at least part of those ...
... Mexico’s exports and a deterioration in its terms of trade. Second, the climate of extreme risk aversion among international investors and the global deleveraging process significantly constrained access to international financial markets. There was a distinct possibility that at least part of those ...
RATE I Maurice Obsfeld AN
... wage is restored to its long-run eauilibrium level. When the ranking of supply elasticities is reversed, monetary expansion has the opposite effects on the real interest rate and exchange rate. In ...
... wage is restored to its long-run eauilibrium level. When the ranking of supply elasticities is reversed, monetary expansion has the opposite effects on the real interest rate and exchange rate. In ...
macroeconomics class review
... Why does anyone bother to estimate the GNP or GDP? For the same reasons statistical data is also gathered on unemployment rates, consumer price levels, the international trade balance and so on – that is, to facilitate economic policy making by government, to assist in planning by decision-makers in ...
... Why does anyone bother to estimate the GNP or GDP? For the same reasons statistical data is also gathered on unemployment rates, consumer price levels, the international trade balance and so on – that is, to facilitate economic policy making by government, to assist in planning by decision-makers in ...
We estimate a small macro model, where the short
... foreign level, GCC central bank’s foreign exchange intervention must adjust the money supply so that it* equates aggregate real domestic money demand and the real money supply. Alternatively, they reset the lending rate. In figure 1 (a), the schedule DD shows a combination of the exchange rate and o ...
... foreign level, GCC central bank’s foreign exchange intervention must adjust the money supply so that it* equates aggregate real domestic money demand and the real money supply. Alternatively, they reset the lending rate. In figure 1 (a), the schedule DD shows a combination of the exchange rate and o ...
ISLM: Part II: The Monetary Sector
... According to Keynes, the interest rate has little or no influence on people’s willingness to save. But it has a great influence, he claims, on the preferred KEYNES’S LIQUIDITY-PREFERENCE THEORY OF INTEREST form of saving. Do people put their savings at interest (e.g. by buying bonds) or do they kee ...
... According to Keynes, the interest rate has little or no influence on people’s willingness to save. But it has a great influence, he claims, on the preferred KEYNES’S LIQUIDITY-PREFERENCE THEORY OF INTEREST form of saving. Do people put their savings at interest (e.g. by buying bonds) or do they kee ...
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... • Recall: inflationary gap: when aggregate expenditures is equal to real GDP above potential GDP. ...
... • Recall: inflationary gap: when aggregate expenditures is equal to real GDP above potential GDP. ...
Dollarization Versus a National Currency
... economy because they do not address the root problems that drive economic agents to hold alternative currencies. Clearly the most effective route to de-dollarization is through the use of effective macroeconomic policies that encourage citizens to save, invest, and conduct transactions using their o ...
... economy because they do not address the root problems that drive economic agents to hold alternative currencies. Clearly the most effective route to de-dollarization is through the use of effective macroeconomic policies that encourage citizens to save, invest, and conduct transactions using their o ...
NBER WORKING REAL A SELECTIVE SURVEY Rudiger Dornbusch
... classical approach or the macroeconomic model in the tradition of MundellFleming. To shed light on that question two empirical problems are considered: What is known about the behavior of real exchange rates and how well do alternative models explain the relation among interest rates, expected depre ...
... classical approach or the macroeconomic model in the tradition of MundellFleming. To shed light on that question two empirical problems are considered: What is known about the behavior of real exchange rates and how well do alternative models explain the relation among interest rates, expected depre ...
The Canadian Dollar and Commodity Prices
... significantly between different periods; i.e., they seem to be more stable than in the baseline specification. When we split the sample into the same four subperiods as in section 2.3, we see that the parameters are still not very stable for the first two subperiods, but the parameter estimates for ...
... significantly between different periods; i.e., they seem to be more stable than in the baseline specification. When we split the sample into the same four subperiods as in section 2.3, we see that the parameters are still not very stable for the first two subperiods, but the parameter estimates for ...
Foreign reserves for crisis management ARTICLES Michael Gordon, Financial Stability Department
... exchange market, it may find it difficult to exit. If intervention ...
... exchange market, it may find it difficult to exit. If intervention ...
As stipulated in the Article 42 of the Central Bank... significant breach of the inflation target, the Central Bank of...
... strategy and increased the weight of financial stability in its objective function. The fact that, in this period, inflation remained below the target and continued its downward trend made it possible for the Central Bank to focus on financial stability. Accordingly, as of late 2010, the Central Ban ...
... strategy and increased the weight of financial stability in its objective function. The fact that, in this period, inflation remained below the target and continued its downward trend made it possible for the Central Bank to focus on financial stability. Accordingly, as of late 2010, the Central Ban ...
S01070561_en.pdf
... band to slide, but at a rate below current inflation), and fixed exchange rates. In some cases, where a fixed exchange rate regime has been adopted, additional credibility has been sought through the passage of laws setting the parity of the currency (whereas it is more common for an exchange rate t ...
... band to slide, but at a rate below current inflation), and fixed exchange rates. In some cases, where a fixed exchange rate regime has been adopted, additional credibility has been sought through the passage of laws setting the parity of the currency (whereas it is more common for an exchange rate 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.