Macroeconomic stability and economic growth in developing countries
... The possible theoretical linkages between macroeconomic stability and economic growth are many. I will not try to give a complete review of them here, but I will highlight some of the possible linkages that I find most relevant. Before looking into the theories, I find it useful to explain what I me ...
... The possible theoretical linkages between macroeconomic stability and economic growth are many. I will not try to give a complete review of them here, but I will highlight some of the possible linkages that I find most relevant. Before looking into the theories, I find it useful to explain what I me ...
Support for Resistance: Technical Analysis and Intraday
... floating rate period, and this finding has been confirmed repeatedly (Sweeney 1986; Levich and Thomas 1993). Movingaverage crossover rules have also been tested frequently on exchange rates, with similar results (Levich and Thomas 1993; Menkhoff and Schlumberger 1995). More recently, Chang and Osler ...
... floating rate period, and this finding has been confirmed repeatedly (Sweeney 1986; Levich and Thomas 1993). Movingaverage crossover rules have also been tested frequently on exchange rates, with similar results (Levich and Thomas 1993; Menkhoff and Schlumberger 1995). More recently, Chang and Osler ...
Slow disinflation process willl delay policy rate cuts
... After a slight dip shown in national accounts figures for Q1/2007, private consumption seems to have rallied in Q2. Rapid employment growth also indicates brisker first-quarter activity than preliminary data imply. The real estate market has been buoyant as well, fuelled by substantial growth in bot ...
... After a slight dip shown in national accounts figures for Q1/2007, private consumption seems to have rallied in Q2. Rapid employment growth also indicates brisker first-quarter activity than preliminary data imply. The real estate market has been buoyant as well, fuelled by substantial growth in bot ...
The Monetary and Fiscal History of Latin America: Brazil M´ arcio Garcia
... In what relates to the other prices in the economy, most were kept constant apart from electricity that had an increase of 20%. Interest Rate conversion Monetary correction was extinguished as well as any indexation clause shorter than one year. An interest rate conversion schedule was set for fixe ...
... In what relates to the other prices in the economy, most were kept constant apart from electricity that had an increase of 20%. Interest Rate conversion Monetary correction was extinguished as well as any indexation clause shorter than one year. An interest rate conversion schedule was set for fixe ...
Real Exchange Rate Undervaluation: Static Losses, Dynamic Gains
... ment in the economy is to subsidize the accumulation of capital. Such a policy may not be implementable in most contexts, due to budgetary and targeting issues, or distributional concerns. Furthermore, our model of capital includes intangible forms of capital, which may make it even less feasible t ...
... ment in the economy is to subsidize the accumulation of capital. Such a policy may not be implementable in most contexts, due to budgetary and targeting issues, or distributional concerns. Furthermore, our model of capital includes intangible forms of capital, which may make it even less feasible t ...
NBER WORKING PAPER SERIES ASSESSING THE EMERGING GLOBAL FINANCIAL ARCHITECTURE:
... openness, the ability to access foreign currency through debt markets, and exchange rate policy are all significant predictors of international reserve stocks. We begin by constructing an easy and intuitive way to summarize these trends in the form of a “Diamond chart.” Applying the methodology out ...
... openness, the ability to access foreign currency through debt markets, and exchange rate policy are all significant predictors of international reserve stocks. We begin by constructing an easy and intuitive way to summarize these trends in the form of a “Diamond chart.” Applying the methodology out ...
The Taylor Curve and the Unemployment-Inflation Tradeoff
... theory links these deviations to events that cause the actual inflation rate, at any given date, to diverge from the inflation rate expected for that date in earlier periods. The reasoning underlying this link goes as follows.7 In modern industrial economies, it’s common for workers to enter into em ...
... theory links these deviations to events that cause the actual inflation rate, at any given date, to diverge from the inflation rate expected for that date in earlier periods. The reasoning underlying this link goes as follows.7 In modern industrial economies, it’s common for workers to enter into em ...
Foreign Asset Accumulation, Macroeconomic Policies and
... holding money. Thus, consumers will economize real money balances and buy foreign assets in the short run. Meanwhile, equation (12) tells that the exchange rate equals the in‡ation rate at each instant, also in the steady state (i.e., e = ...
... holding money. Thus, consumers will economize real money balances and buy foreign assets in the short run. Meanwhile, equation (12) tells that the exchange rate equals the in‡ation rate at each instant, also in the steady state (i.e., e = ...
Introduntion - Hakan Berument`sHomepage
... policy provides this chance when the interest rates are lower. Thus, we expect higher government spending with expansionary monetary policy. ...
... policy provides this chance when the interest rates are lower. Thus, we expect higher government spending with expansionary monetary policy. ...
Chapter 8: The Natural Rate of Unemployment and the Phillips Curve
... In the equation above, the terms m and z vary over time, leading to changes in the natural rate of unemployment. The U.S. natural rate of unemployment has decreased from 6% to between 4% and 5% today. – Maybe globalization reduces m, by exposing domestic firms to ...
... In the equation above, the terms m and z vary over time, leading to changes in the natural rate of unemployment. The U.S. natural rate of unemployment has decreased from 6% to between 4% and 5% today. – Maybe globalization reduces m, by exposing domestic firms to ...
PDF
... may the constraints of monetary union bind. These are not, of course, the only factors influencing the choice of international monetary arrangements. Mundell (1961) himself emphasized also the importance of factor mobility for facilitating adjustment. McKinnon (1963) argued that the gains from unifi ...
... may the constraints of monetary union bind. These are not, of course, the only factors influencing the choice of international monetary arrangements. Mundell (1961) himself emphasized also the importance of factor mobility for facilitating adjustment. McKinnon (1963) argued that the gains from unifi ...
Chapter 19. The Goods Market in an Open Economy
... the demand relation in the closed economy, DD. That means the ...
... the demand relation in the closed economy, DD. That means the ...
Article: Interest and inflation rates through the lens of the theory of
... is 1 percent and we need to add an amount of anticipated inflation that will result in a fed funds rate of 0.25 percent. The only way to get that is to add a negative number, in this case, −0.75 percent. To sum up, over the long run, a low fed funds rate must lead to consistent, but low, levels of d ...
... is 1 percent and we need to add an amount of anticipated inflation that will result in a fed funds rate of 0.25 percent. The only way to get that is to add a negative number, in this case, −0.75 percent. To sum up, over the long run, a low fed funds rate must lead to consistent, but low, levels of d ...
Econometric Evidence on the Determinants of the Mark Up
... determine for sure the price that maximizes their profits. So, the mark up becomes the strategic variable firms manipulate in search of their maximization targets. In oligopolistic markets operating under full capacity when demand varies it is expected that production varies, and not prices. However ...
... determine for sure the price that maximizes their profits. So, the mark up becomes the strategic variable firms manipulate in search of their maximization targets. In oligopolistic markets operating under full capacity when demand varies it is expected that production varies, and not prices. However ...
International Monetary Review
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
... economies and China in macro-control level. This very stage of the global economy entering further correction phase and China approaching a new normal makes it necessary to make a summary on the theoretical and practical progress achieved in macro-control during the past years. Firstly, the accurat ...
Document
... the banking system, and consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
... the banking system, and consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
Carl Menger`s contributions to the Austrian currency reform debate
... fl is equivalent to almost 10 € in present value! Moreover, the half-guilder (crown) was much closer to the German Mark (= 1,17 K) or the French Franc (0,95 K). Menger was sharply opposed to proposals to choose a unit exactly equivalent to 1 Mark or 1 Franc which would cause enormous inconvenience d ...
... fl is equivalent to almost 10 € in present value! Moreover, the half-guilder (crown) was much closer to the German Mark (= 1,17 K) or the French Franc (0,95 K). Menger was sharply opposed to proposals to choose a unit exactly equivalent to 1 Mark or 1 Franc which would cause enormous inconvenience d ...
Paper - Gerald R. Ford School of Public Policy
... recovered and the stock prices rose to a comfortable level. The Bank of Japan view was pointing out a “gradual recovery” from October 2003 to May 2004. The stock prices were also rising in this period. The mood was definitely brighter for many of the industries at end-2003, compared to a year ago. I ...
... recovered and the stock prices rose to a comfortable level. The Bank of Japan view was pointing out a “gradual recovery” from October 2003 to May 2004. The stock prices were also rising in this period. The mood was definitely brighter for many of the industries at end-2003, compared to a year ago. I ...
g - Weebly
... the banking system, consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
... the banking system, consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
GettinG the Balance riGht: transitioninG out of sustained
... macroeconomic and financial imbalances, whereas surplus reversals can take place from a position of strength following a policy decision.9 (See Table 4.8 for a full list of surplus reversals.) Anatomy of Policy-Driven Surplus Reversals This section decomposes the current account adjustment and exami ...
... macroeconomic and financial imbalances, whereas surplus reversals can take place from a position of strength following a policy decision.9 (See Table 4.8 for a full list of surplus reversals.) Anatomy of Policy-Driven Surplus Reversals This section decomposes the current account adjustment and exami ...
NBER WORKING PAPER SERIES SOURCES OF MACROECONOMIC IMBALANCES A SIMULATION APPROACH
... Germany also reduced its structural deficit, by 3.3 percent of GNP, while the smaller economies generally had a small increase in their deficits. ...
... Germany also reduced its structural deficit, by 3.3 percent of GNP, while the smaller economies generally had a small increase in their deficits. ...
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.