NBER WORKING PAPER SERIES SHARING THE BURDEN: David Cook
... Our results in fact show that the response of policy interest rates in a global liquidity trap are piecewise functions of the degree of trade-openness, as measure by the parameter of ‘home bias’ in preferences. When preferences are identical, trade is fully open, and a global liquidity trap is assoc ...
... Our results in fact show that the response of policy interest rates in a global liquidity trap are piecewise functions of the degree of trade-openness, as measure by the parameter of ‘home bias’ in preferences. When preferences are identical, trade is fully open, and a global liquidity trap is assoc ...
Monetary Policy - Macmillan Learning
... money can be used to make purchases directly, but other assets can’t. But there is a price to be paid for that convenience: money normally yields a lower rate of return than nonmonetary assets. As an example of how convenience makes it worth incurring some opportunity costs, consider the fact that e ...
... money can be used to make purchases directly, but other assets can’t. But there is a price to be paid for that convenience: money normally yields a lower rate of return than nonmonetary assets. As an example of how convenience makes it worth incurring some opportunity costs, consider the fact that e ...
research paper series A Tale of Two Cycles: Co-fluctuations
... argued that if regional macro shocks in North America were more strongly correlated among regions aligned along a North-South axis than in East-West direction, then it might be more efficient to break up the current monetary arrangement and replace it by an “East dollar” and a “West dollar”. Based o ...
... argued that if regional macro shocks in North America were more strongly correlated among regions aligned along a North-South axis than in East-West direction, then it might be more efficient to break up the current monetary arrangement and replace it by an “East dollar” and a “West dollar”. Based o ...
Expectations of future income and real exchange rate
... external equilibrium, for given long-run equilibrium values of other relevant variables (fundamentals). An internal equilibrium occurs when the non-tradable goods market clears in the current period and is expected to be in equilibrium in the future. An external equilibrium occurs when the current a ...
... external equilibrium, for given long-run equilibrium values of other relevant variables (fundamentals). An internal equilibrium occurs when the non-tradable goods market clears in the current period and is expected to be in equilibrium in the future. An external equilibrium occurs when the current a ...
54
... modelling the economy as in the import and export equations of the Treasury’s NIF88 model of the Australian macro-economyo However there has been some debate on the appropriate way to measure competitiveness. This study comments on the standard index (based on trade-weighted relative consumer price ...
... modelling the economy as in the import and export equations of the Treasury’s NIF88 model of the Australian macro-economyo However there has been some debate on the appropriate way to measure competitiveness. This study comments on the standard index (based on trade-weighted relative consumer price ...
Trend Shocks, Risk Sharing and Cross- Country Portfolio Holdings Yavuz ARSLAN Gürsu KELEŞ
... rates (or terms of trade). In Table 4, we see that this correlation for the real exchange rate (terms of trade) is 0.71 (0.52). In other words, countries consume relatively more than the rest of the world when their …nal (tradable) goods are more expensive. This shows the lack of risk sharing in the ...
... rates (or terms of trade). In Table 4, we see that this correlation for the real exchange rate (terms of trade) is 0.71 (0.52). In other words, countries consume relatively more than the rest of the world when their …nal (tradable) goods are more expensive. This shows the lack of risk sharing in the ...
Mechanics of Futures Markets
... Q: When a new trade is completed, what are the possible effects on the open interest? A: (+1,0,-1) Q: Can the volume of trading in a day be greater than the open interest? A: Yes ...
... Q: When a new trade is completed, what are the possible effects on the open interest? A: (+1,0,-1) Q: Can the volume of trading in a day be greater than the open interest? A: Yes ...
3. Composite indicator and the probability of a crisis - Hal-SHS
... This is the case here : we find differences between Kazakhstan and Russia on one hand and the other countries on the other hand. Country-specific forewarning systems have been applied successfully in the empirical literature to Asian and Latin American emerging economies (see Edison (2003)). Here, t ...
... This is the case here : we find differences between Kazakhstan and Russia on one hand and the other countries on the other hand. Country-specific forewarning systems have been applied successfully in the empirical literature to Asian and Latin American emerging economies (see Edison (2003)). Here, t ...
Lecture notes on the Cambridge equation and the neo
... adjustment of aggregate capacity to a normal utilisation rate. Therefore, also for Sraffian economists a market economy has the ability to accommodate, through the variability of the degree of capacity utilisation, variations in the accumulation rate decided by the entrepreneurs. The idea of Sraffia ...
... adjustment of aggregate capacity to a normal utilisation rate. Therefore, also for Sraffian economists a market economy has the ability to accommodate, through the variability of the degree of capacity utilisation, variations in the accumulation rate decided by the entrepreneurs. The idea of Sraffia ...
chapter - Macmillan Learning
... We can actually be more specific than this: other things equal, the demand for money is proportional to the price level. That is, if the aggregate price level rises by 20%, the quantity of money demanded at any given interest rate, such as r1 in Figure 17-2, also rises by 20%—the movement from M1 to ...
... We can actually be more specific than this: other things equal, the demand for money is proportional to the price level. That is, if the aggregate price level rises by 20%, the quantity of money demanded at any given interest rate, such as r1 in Figure 17-2, also rises by 20%—the movement from M1 to ...
English title
... • In open economies, the exchange rate is an important part of the transmission mechanisms, as well as a source of shocks; • The performance seems to be good (or at least non-negative) ...
... • In open economies, the exchange rate is an important part of the transmission mechanisms, as well as a source of shocks; • The performance seems to be good (or at least non-negative) ...
Chapter 1 - IDEAS/RePEc
... goods and services purchased by consumers and compares a bundle of goods and services one year with the cost of that same bundle in another year. Thus the CPI is a fixed-weight price index and is given by total current expenditures over total expenditures at base year prices and multiplies the resul ...
... goods and services purchased by consumers and compares a bundle of goods and services one year with the cost of that same bundle in another year. Thus the CPI is a fixed-weight price index and is given by total current expenditures over total expenditures at base year prices and multiplies the resul ...
Overlapping Generations Model
... in the first period. In the second period they consume what they saved in the first period. Steady-state existence and properties are analyzed. The result of the planned economy is compared to the equilibrium of the decentralized economy. Further results are obtained by a generalization of the behav ...
... in the first period. In the second period they consume what they saved in the first period. Steady-state existence and properties are analyzed. The result of the planned economy is compared to the equilibrium of the decentralized economy. Further results are obtained by a generalization of the behav ...
NBER WORKING PAPER SERIES RISK SHARING THROUGH CAPITAL GAINS Faruk Balli Sebnem Kalemli-Ozcan
... capital gains make income including capital gains less correlated with output after controlling for world output. Our setting takes into account the size of the gains—numerically small capital gains will not matter much even if they are strongly countercyclical. Our sample is composed of countries i ...
... capital gains make income including capital gains less correlated with output after controlling for world output. Our setting takes into account the size of the gains—numerically small capital gains will not matter much even if they are strongly countercyclical. Our sample is composed of countries i ...
2000 - ECB
... Over the reference period from April 1999 to March 2000 Greece achieved a 12-month average rate of HICP inflation of 2.0%, which is below the reference value stipulated by the Treaty. In 1999 as a whole the inflation rate was at the reference value and, since January 2000, Greece has achieved a rate ...
... Over the reference period from April 1999 to March 2000 Greece achieved a 12-month average rate of HICP inflation of 2.0%, which is below the reference value stipulated by the Treaty. In 1999 as a whole the inflation rate was at the reference value and, since January 2000, Greece has achieved a rate ...
8the economy at full employment: the classical model
... ♦ The demand for labor increases and the demand for labor curve shifts rightward when the marginal product of labor increases. The quantity of labor supplied is the number of labor hours that all the households plan to work. The supply of labor is the relationship between the quantity of labor suppl ...
... ♦ The demand for labor increases and the demand for labor curve shifts rightward when the marginal product of labor increases. The quantity of labor supplied is the number of labor hours that all the households plan to work. The supply of labor is the relationship between the quantity of labor suppl ...
Low Interest Rates and Housing Booms
... rates and a rapid increase in housing market activity across OECD countries. The link between the two is intuitive: low interest rates make credit cheaper and increase the demand for housing. Some scholars argue that expansionary monetary policy was responsible for the low level of interest rates an ...
... rates and a rapid increase in housing market activity across OECD countries. The link between the two is intuitive: low interest rates make credit cheaper and increase the demand for housing. Some scholars argue that expansionary monetary policy was responsible for the low level of interest rates an ...
Does the inflation rate affect the performance of the stock market
... high cost of equity exceeded only by Peru, Pakistan and Columbia. They note that Egypt is a fairly new emerging market, despite its very early beginnings, so there may be a high perceived risk, but that even the Treasury bill rate was high, approximately 9% in 1998. In turn, the treasury bill rate i ...
... high cost of equity exceeded only by Peru, Pakistan and Columbia. They note that Egypt is a fairly new emerging market, despite its very early beginnings, so there may be a high perceived risk, but that even the Treasury bill rate was high, approximately 9% in 1998. In turn, the treasury bill rate i ...
lecture6_2006_hv
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
FINDING NEW LINKS – FISHER’S EQUATION OF SOCIETARY CIRCULATION M
... where D is the quantity of goods demanded and N is a fixed constant; hence D is directly proportional to V/P and does not depend on equiproportionate changes in both V and P (Newcomb, 1885). Thus, an increase in V initially leads to a rise in real demand, D, which forces a rise in P and eventually t ...
... where D is the quantity of goods demanded and N is a fixed constant; hence D is directly proportional to V/P and does not depend on equiproportionate changes in both V and P (Newcomb, 1885). Thus, an increase in V initially leads to a rise in real demand, D, which forces a rise in P and eventually 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.