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 ...
Inflation and Hyperinflation
... this is true only when we consider the steady state inflation rate (when ∆M/M = ∆P/P), which is the one, used to describe the relationship between seigniorage revenue and inflation. Increasing the inflation rate beyond its steady state level, can allow an increase of seigniorage revenue even when th ...
... this is true only when we consider the steady state inflation rate (when ∆M/M = ∆P/P), which is the one, used to describe the relationship between seigniorage revenue and inflation. Increasing the inflation rate beyond its steady state level, can allow an increase of seigniorage revenue even when th ...
Gross Domestic Product (GDP)
... Flour for making bread Cloth for making dresses The first list provides examples of goods and services that have reached their final buyer during the year. Answer the following questions. ...
... Flour for making bread Cloth for making dresses The first list provides examples of goods and services that have reached their final buyer during the year. Answer the following questions. ...
chapter summary
... 1. This chapter discusses two important macroeconomic problems, inflation and unemployment. Although these subjects are often discussed in the news, they are widely misunderstood by the general public. 2. Most students will believe that the only people hurt when the unemployment rate rises are those ...
... 1. This chapter discusses two important macroeconomic problems, inflation and unemployment. Although these subjects are often discussed in the news, they are widely misunderstood by the general public. 2. Most students will believe that the only people hurt when the unemployment rate rises are those ...
PDF Full Text
... 30 June 2011 at BHP website (www.bhpbilliton.com.au). BHP provides both Australian and UK BHP and BLT open, high, low, close price; there is no ask, bid, or trading volume available. The theoretical price ratio is equal to 1:1 in Australia and UK. We also choose the FTSE100 as the UK share market in ...
... 30 June 2011 at BHP website (www.bhpbilliton.com.au). BHP provides both Australian and UK BHP and BLT open, high, low, close price; there is no ask, bid, or trading volume available. The theoretical price ratio is equal to 1:1 in Australia and UK. We also choose the FTSE100 as the UK share market in ...
NATIONAL BANK OF POLAND WORKING PAPER No. 152
... the world trade, decreasing production costs in emerging economies and higher volatility of commodity prices made this issue more important for small open economies, where the inflation to a larger extent was shaped by external factors. In the period of Great Moderation, inflation in many countries ...
... the world trade, decreasing production costs in emerging economies and higher volatility of commodity prices made this issue more important for small open economies, where the inflation to a larger extent was shaped by external factors. In the period of Great Moderation, inflation in many countries ...
Climate Policies Deserve a Negative Discount Rate
... The thesis defended in this Article is that using a negative discount rate to evaluate climate policies may be justified. This conclusion follows from two important steps, each of which is an interesting separate thesis. First, different policies should be evaluated with different discount rates, de ...
... The thesis defended in this Article is that using a negative discount rate to evaluate climate policies may be justified. This conclusion follows from two important steps, each of which is an interesting separate thesis. First, different policies should be evaluated with different discount rates, de ...
Non-price competitiveness of exports from - ECB
... in emerging countries outperformed that of advanced countries every year since 1996, with just two exceptions in 1997 and 2010. In the general discussion, growing world market shares are mainly associated with improving price competitiveness. Hence, policy makers often focus on price measures and ai ...
... in emerging countries outperformed that of advanced countries every year since 1996, with just two exceptions in 1997 and 2010. In the general discussion, growing world market shares are mainly associated with improving price competitiveness. Hence, policy makers often focus on price measures and ai ...
Forecasting commodity currencies: the role of
... the beginning of the month. Subsequently, we simulate 160 monthly data points corresponding to 3520 daily observations and fit a MIDAS regression and a typical Linear regression. Note that the latter regression imposes equal weights on the daily observations. The panel illustrates how well we can f ...
... the beginning of the month. Subsequently, we simulate 160 monthly data points corresponding to 3520 daily observations and fit a MIDAS regression and a typical Linear regression. Note that the latter regression imposes equal weights on the daily observations. The panel illustrates how well we can f ...
Losing Our Marbles in the New Century? Perspective
... of GDP. The U.S. current account deficit might then be about −4 percent to −5 percent of GDP. • In “pessimistic” scenarios, all else equal, where its privilege disappears and these differentials vanish, the United States may end up with an external debt position in excess of −100 percent of GDP, and ...
... of GDP. The U.S. current account deficit might then be about −4 percent to −5 percent of GDP. • In “pessimistic” scenarios, all else equal, where its privilege disappears and these differentials vanish, the United States may end up with an external debt position in excess of −100 percent of GDP, and ...
chapter 11
... 5) Anne works as a babysitter. She uses her wage as a babysitter to buy a pair of roller skates. In this case, money served the function of ________. A) a medium of exchange B) a store of value C) a unit of account D) a means of deferred payment Answer: A Difficulty: Easy AACSB: Application of Knowl ...
... 5) Anne works as a babysitter. She uses her wage as a babysitter to buy a pair of roller skates. In this case, money served the function of ________. A) a medium of exchange B) a store of value C) a unit of account D) a means of deferred payment Answer: A Difficulty: Easy AACSB: Application of Knowl ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... contractionary in the context of the “fear of floating” debate (Calvo and Reinhart 2002). These authors, among others, have argued that because in emerging countries many firms issue dollar-denominated debt, a large depreciation generates significant “balance sheet effects.” These may be so large tha ...
... contractionary in the context of the “fear of floating” debate (Calvo and Reinhart 2002). These authors, among others, have argued that because in emerging countries many firms issue dollar-denominated debt, a large depreciation generates significant “balance sheet effects.” These may be so large tha ...
Document
... for years at a time. In the modern U.S. economy, the typical unemployed person stays unemployed for a relatively brief period of time. In April 2007—which was during a period of economic expansion—82 percent of the people who were unemployed had been unemployed for less than six months. In September ...
... for years at a time. In the modern U.S. economy, the typical unemployed person stays unemployed for a relatively brief period of time. In April 2007—which was during a period of economic expansion—82 percent of the people who were unemployed had been unemployed for less than six months. In September ...
Public support for the single European currency, the euro,
... and popular trust in the ECB may be that the two measures cover different concepts. Thus, they should be compared with caution. Recent empirical findings on falling public trust in the euro in Germany (Köcher, 2010) suggest that this argument might be plausible. The question is what do the two measu ...
... and popular trust in the ECB may be that the two measures cover different concepts. Thus, they should be compared with caution. Recent empirical findings on falling public trust in the euro in Germany (Köcher, 2010) suggest that this argument might be plausible. The question is what do the two measu ...
A Panel Approach for Developing Countries
... than those of the central government, and the time, savings and foreign currency deposits of resident sectors other than the central government. The theory predicts a positive sign for the coefficient of this variable. The GDP in this study is the gross domestic product calculated in terms of the Sp ...
... than those of the central government, and the time, savings and foreign currency deposits of resident sectors other than the central government. The theory predicts a positive sign for the coefficient of this variable. The GDP in this study is the gross domestic product calculated in terms of the Sp ...
Aggregate Demand II: Applying the IS–LM Model
... self-fulfilling waves of optimism and pessimism. For example, suppose that firms become pessimistic about the future of the economy and that this pessimism causes them to build fewer new factories. This reduction in the demand for investment goods causes a contractionary shift in the investment fun ...
... self-fulfilling waves of optimism and pessimism. For example, suppose that firms become pessimistic about the future of the economy and that this pessimism causes them to build fewer new factories. This reduction in the demand for investment goods causes a contractionary shift in the investment fun ...
Trade liberalization and the balance of payments constraint with
... Indeed, trade liberalization may have contradictory effects on BP-equilibrium growth: by facilitating imports of intermediate goods as well as access to foreign markets, it may boost the growth of manufactured exports; at the same time, however, the intensive use of intermediate imports in producing ...
... Indeed, trade liberalization may have contradictory effects on BP-equilibrium growth: by facilitating imports of intermediate goods as well as access to foreign markets, it may boost the growth of manufactured exports; at the same time, however, the intensive use of intermediate imports in producing ...
Parkin-Bade Chapter 28
... business cycles and is consistent with the facts about economic growth. RBC theory is a single theory that explains both growth and cycles. 2. RBC theory is consistent with a wide range of microeconomic evidence about labor supply decisions, labor demand and investment demand decisions, and informat ...
... business cycles and is consistent with the facts about economic growth. RBC theory is a single theory that explains both growth and cycles. 2. RBC theory is consistent with a wide range of microeconomic evidence about labor supply decisions, labor demand and investment demand decisions, and informat ...
subject economics - Kendriya Vidyalaya CRPF Durgapur, West Bengal
... commodity as followsThe demand for normal goods tends to increase with increase in consumer income and vice-versa. On the other hand, the demand for inferior goods tends to decrease with increase in consumer income and vice-versa iii) Taste and preferences- When taste and preferences are in favour o ...
... commodity as followsThe demand for normal goods tends to increase with increase in consumer income and vice-versa. On the other hand, the demand for inferior goods tends to decrease with increase in consumer income and vice-versa iii) Taste and preferences- When taste and preferences are in favour o ...
Sources of macroeconomic fluctuations in Venezuela
... In this paper we conduct an empirical study for Venezuela based on the Blanchard and Quah method. We believe that for our set of variables long-run restrictions are theoretically more appealing than short-run restrictions. Variance decompositions trace the relative contribution of each type of struc ...
... In this paper we conduct an empirical study for Venezuela based on the Blanchard and Quah method. We believe that for our set of variables long-run restrictions are theoretically more appealing than short-run restrictions. Variance decompositions trace the relative contribution of each type of struc ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... While some countries relaxed bank lending only, other countries allowed only long-term capital movements, and yet others—such as Chile—used market-based mechanisms to slow down the rate at which capital was flowing into the country. Many countries, however—including some that later faced severe cris ...
... While some countries relaxed bank lending only, other countries allowed only long-term capital movements, and yet others—such as Chile—used market-based mechanisms to slow down the rate at which capital was flowing into the country. Many countries, however—including some that later faced severe cris ...
The Equilibrium Real Funds Rate: Past, Present and Future
... In this paper we evaluate some reduced-form evidence on this question. We focus on long run or steady state values, examining the behavior of the real interest rate over long periods of time and its empirical relation to factors such as the economic growth rate. We consider evidence from a large num ...
... In this paper we evaluate some reduced-form evidence on this question. We focus on long run or steady state values, examining the behavior of the real interest rate over long periods of time and its empirical relation to factors such as the economic growth rate. We consider evidence from a large num ...
Chapter 14: Dynamic AD-AS
... became Fed chairman. Inflation was high during this time, especially during the 1970s. ...
... became Fed chairman. Inflation was high during this time, especially during the 1970s. ...
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.