
Inflation Cycles
... Real Business Cycle Theory Real business cycle theory regards random fluctuations in productivity as the main source of economic fluctuations. These productivity fluctuations are assumed to result mainly from fluctuations in the pace of technological ...
... Real Business Cycle Theory Real business cycle theory regards random fluctuations in productivity as the main source of economic fluctuations. These productivity fluctuations are assumed to result mainly from fluctuations in the pace of technological ...
A Model of the Twin Ds: Optimal Default and Devaluation ∗ S. Na
... theoretical environment is a small open economy with downward nominal wage rigidity and limited enforcement of international debt contracts. Under optimal policy, default occurs during contractions and is accompanied by large devaluations. The latter allow for real depreciation and a fall in real wa ...
... theoretical environment is a small open economy with downward nominal wage rigidity and limited enforcement of international debt contracts. Under optimal policy, default occurs during contractions and is accompanied by large devaluations. The latter allow for real depreciation and a fall in real wa ...
Inflation Cycles
... Real Business Cycle Theory Real business cycle theory regards random fluctuations in productivity as the main source of economic fluctuations. These productivity fluctuations are assumed to result mainly from fluctuations in the pace of technological ...
... Real Business Cycle Theory Real business cycle theory regards random fluctuations in productivity as the main source of economic fluctuations. These productivity fluctuations are assumed to result mainly from fluctuations in the pace of technological ...
General Equilibrium and IS-LM 1. Some points about IS
... • Anything that shifts the saving curve or the investment curve in the saving-investment market, other than changes in Y , shifts the IS curve. • Anything that shifts the investment curve out in the saving-investment market shifts the IS curve out. or up. (Reason: Shifting the investment curve out c ...
... • Anything that shifts the saving curve or the investment curve in the saving-investment market, other than changes in Y , shifts the IS curve. • Anything that shifts the investment curve out in the saving-investment market shifts the IS curve out. or up. (Reason: Shifting the investment curve out c ...
The Role of Government: Impact on Macroeconomy
... because it conveys positive externalities. An educated person, for instance, might generate new ideas about how best to produce goods and services. If these ideas enter society’s pool of knowledge, so everyone can use them, then the ideas are an external benefit of education. This argument would jus ...
... because it conveys positive externalities. An educated person, for instance, might generate new ideas about how best to produce goods and services. If these ideas enter society’s pool of knowledge, so everyone can use them, then the ideas are an external benefit of education. This argument would jus ...
The NAIRU and the Natural Rate of Unemployment
... be attained with an unlimited rise in the rate of unemployment. This trivial finding is important in particular with respect to the later discussion pertaining to the relationship between the natural rate of unemployment and the NAIRU. As far as the level of the non-inflationary rate of unemployment ...
... be attained with an unlimited rise in the rate of unemployment. This trivial finding is important in particular with respect to the later discussion pertaining to the relationship between the natural rate of unemployment and the NAIRU. As far as the level of the non-inflationary rate of unemployment ...
Federal Reserve Transparency and Financial Market Forecasts of Short-Term Interest Rates
... assistance. The views expressed in this paper, and all errors and omissions, should be regarded as those solely of the author, and do not necessarily represent those of the individuals or groups listed above, the Federal Reserve System, or its Board of Governors. ...
... assistance. The views expressed in this paper, and all errors and omissions, should be regarded as those solely of the author, and do not necessarily represent those of the individuals or groups listed above, the Federal Reserve System, or its Board of Governors. ...
free sample here
... will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their home currency, the total home-country receipts will change depending on the exchange rate at the t ...
... will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their home currency, the total home-country receipts will change depending on the exchange rate at the t ...
NBER WORKING PAPER SERIES BUSINESS CYCLES IN EMERGING ECONOMIES: Pablo A. Neumeyer
... economy (productivity shocks in our model). In this case, these shocks drive, at the same time, business cycles and fluctuations in country risk. Our first finding is that the quantitative results from the model with productivity shocks and country risk induced by productivity shocks can account for ...
... economy (productivity shocks in our model). In this case, these shocks drive, at the same time, business cycles and fluctuations in country risk. Our first finding is that the quantitative results from the model with productivity shocks and country risk induced by productivity shocks can account for ...
chapter iii balance of payments – theoretical
... removed their restrictions on international capital movements. Normally, the capital account consists of all types of capital inflows and outflows. In general, it is observed that the developing countries have surplus in their capital account, while the developed countries have deficit in their capi ...
... removed their restrictions on international capital movements. Normally, the capital account consists of all types of capital inflows and outflows. In general, it is observed that the developing countries have surplus in their capital account, while the developed countries have deficit in their capi ...
Question Bank
... Study of Economics is divided into two branches Micro Economics and Macro Economics. Micro economics is that branch of economics in which economic problems are studied at individual level and in Macro economics we study economy as a whole or as its aggregates. ...
... Study of Economics is divided into two branches Micro Economics and Macro Economics. Micro economics is that branch of economics in which economic problems are studied at individual level and in Macro economics we study economy as a whole or as its aggregates. ...
NBER WORKING PAPER SERIES A JOBLESS RECOVERY
... because this ratio has remained at roughly the level it reached at the trough of the recession. The present paper presents a theoretical model that captures the joint occurrence of an economic contraction, a protracted liquidity trap, and a jobless recovery. The main elements of the model are downw ...
... because this ratio has remained at roughly the level it reached at the trough of the recession. The present paper presents a theoretical model that captures the joint occurrence of an economic contraction, a protracted liquidity trap, and a jobless recovery. The main elements of the model are downw ...
Money demand in the euro area
... times of extraordinary uncertainty or because of structural changes in the economy due to financial innovation and changes in the management of liquidity by households and firms (resulting in redefinitions of monetary aggregates). A second branch of the literature stresses wealth effects and extends ...
... times of extraordinary uncertainty or because of structural changes in the economy due to financial innovation and changes in the management of liquidity by households and firms (resulting in redefinitions of monetary aggregates). A second branch of the literature stresses wealth effects and extends ...
Document
... Other EU countries run a trade DEU imports savings (NCO < 0) from ROW surplus due to higher interest rates. interest rates rise drawing capital from other countries (1990-1993) Note (1) interest rate rise in Europe, capital flows to Germany. (2) Exchange rates in EU countries want to depreciate, but ...
... Other EU countries run a trade DEU imports savings (NCO < 0) from ROW surplus due to higher interest rates. interest rates rise drawing capital from other countries (1990-1993) Note (1) interest rate rise in Europe, capital flows to Germany. (2) Exchange rates in EU countries want to depreciate, but ...
File
... Anticipated inflation costs include menu costs, shoe-leather costs, and distortions to the financial and tax system. Menu costs are costs associated with changing prices and printing new price lists when there is inflation. Firms take on additional costs to change menus or advertising their goods an ...
... Anticipated inflation costs include menu costs, shoe-leather costs, and distortions to the financial and tax system. Menu costs are costs associated with changing prices and printing new price lists when there is inflation. Firms take on additional costs to change menus or advertising their goods an ...
Accounting for Real Exchange Rates using Micro
... to achieve a partition of goods into traded and non-traded items. For example, food includes both food away from home and groceries, housing includes both rent and utilities –if forced to make a choice, the food away from home and rent would be placed on the non-traded side of the ledger while groce ...
... to achieve a partition of goods into traded and non-traded items. For example, food includes both food away from home and groceries, housing includes both rent and utilities –if forced to make a choice, the food away from home and rent would be placed on the non-traded side of the ledger while groce ...
impact of macroeconomic factors on financial
... The study focused on the impact of macroeconomic variables on financial performance of deposit taking microfinance institutions in Kenya. The specific objectives were to assess the impact of inflation on the financial performance of deposit taking microfinance institutions in Kenya, to ascertain the ...
... The study focused on the impact of macroeconomic variables on financial performance of deposit taking microfinance institutions in Kenya. The specific objectives were to assess the impact of inflation on the financial performance of deposit taking microfinance institutions in Kenya, to ascertain the ...
83081100I_en.pdf
... exports and gradually encouraging the production of goods and services with greater value-added and for which international demand is stronger. Particularly important for Peru are exports of goods and services that are natural resource-intensive but have one or more processes that increase their val ...
... exports and gradually encouraging the production of goods and services with greater value-added and for which international demand is stronger. Particularly important for Peru are exports of goods and services that are natural resource-intensive but have one or more processes that increase their val ...
Juha Tervala Learning by Devaluating
... assume that the productivity-increasing skill level of the firm accumulates over time, according to hours worked in the past. Therefore, competitive devaluation has supply-side consequences for both countries. This paper shows that the introduction of an LBD mechanism into an open economy model has ...
... assume that the productivity-increasing skill level of the firm accumulates over time, according to hours worked in the past. Therefore, competitive devaluation has supply-side consequences for both countries. This paper shows that the introduction of an LBD mechanism into an open economy model has ...
The Central Bank of Turkey (CBT) adopted a formal inflation-targeting... the beginning of 2006. Accordingly, the end-year inflation target for... Ankara, January 22, 2007
... unprocessed food price inflation, and the sustained increases in the gold prices. Although the relatively strong course of the domestic demand might have been one of the factors affecting inflation, a careful analysis of the price data and capacity indicators suggested that the role of the supply fa ...
... unprocessed food price inflation, and the sustained increases in the gold prices. Although the relatively strong course of the domestic demand might have been one of the factors affecting inflation, a careful analysis of the price data and capacity indicators suggested that the role of the supply fa ...
5
... 2.1 Basic Concepts: The concept of ’exchange rate’ seems to be relevant wheneve~ two situations with differentia! price levels are considered. Even if the same currency unit is used in the two situations, very common in inter-temporal comparisons and inter-regional comparisons within a country, the ...
... 2.1 Basic Concepts: The concept of ’exchange rate’ seems to be relevant wheneve~ two situations with differentia! price levels are considered. Even if the same currency unit is used in the two situations, very common in inter-temporal comparisons and inter-regional comparisons within a country, the ...
Building a Kenyan Monetary Regime for the 21 Century
... ‗impossible trinity‘ or ‗trilemma‘ which states that beyond the short-run no country can simultaneously maintain an open capital account, target the exchange rate and pursue an independent monetary policy. One of the three must be abandoned even though each is ...
... ‗impossible trinity‘ or ‗trilemma‘ which states that beyond the short-run no country can simultaneously maintain an open capital account, target the exchange rate and pursue an independent monetary policy. One of the three must be abandoned even though each is ...
INSTITUTE FOR MONETARY AND ECONOMIC STUDIES BANK OF
... in light of the first criterion which says that “BOJ will take measures necessary to achieve the sound development of the national economy through the pursuit of price stability in the long run,” it boils down to the following difficult question: Do we have a good reason to believe that the sound de ...
... in light of the first criterion which says that “BOJ will take measures necessary to achieve the sound development of the national economy through the pursuit of price stability in the long run,” it boils down to the following difficult question: Do we have a good reason to believe that the sound de ...
Chapter 18
... Constructing the IS Curve The focus of Fed policy is changing the federal funds rate which will cause changes in other market interest rates. So, we need to incorporate the effect of changes in interest rates into our model of the goods market. The real interest rate equals the nominal interest rat ...
... Constructing the IS Curve The focus of Fed policy is changing the federal funds rate which will cause changes in other market interest rates. So, we need to incorporate the effect of changes in interest rates into our model of the goods market. The real interest rate equals the nominal interest rat ...
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.