BALANCE OF PAYMENTS ADJUSTMENT
... expresses the relationship between a country‘s balance of payments and its money supply (Chacholiades, 1990:463). MABP shows that the overall balance of payments (measured by international reserves) is influenced by imbalances prevailing in the money market. Under a system of fixed exchange rates ex ...
... expresses the relationship between a country‘s balance of payments and its money supply (Chacholiades, 1990:463). MABP shows that the overall balance of payments (measured by international reserves) is influenced by imbalances prevailing in the money market. Under a system of fixed exchange rates ex ...
Seminar Paper No. 644 NOMINAL INCOME TARGETING IN AN OPEN-ECONOMY OPTIMIZING MODEL by
... and dynamic instability are more likely to occur with a price level or inflation target. In other words, the problem of ‘instrument instability,’which would render the targeting attempt entirely unsuccessful, is intensified.” Also, the same passage suggests that it may be “more difficult to devise a ...
... and dynamic instability are more likely to occur with a price level or inflation target. In other words, the problem of ‘instrument instability,’which would render the targeting attempt entirely unsuccessful, is intensified.” Also, the same passage suggests that it may be “more difficult to devise a ...
BNR ECONOMIC REVIEW Vol. 9
... These developments contributed to increased competition in the banking sector as indicated by the Herfindahl- Hirschman Index (HHI). Developments in the HHI indicate that the competition in the Rwandan banking sector has been improving over time, from high concentration (between 2002 and 2009) to mo ...
... These developments contributed to increased competition in the banking sector as indicated by the Herfindahl- Hirschman Index (HHI). Developments in the HHI indicate that the competition in the Rwandan banking sector has been improving over time, from high concentration (between 2002 and 2009) to mo ...
EN EN Table of Contents 1. Introduction 2. Overview of capital loan
... (1) There is no ceiling as it concerns countries which were not Member States at the time the EIB mandates were adopted. (2) The overall ceiling is EUR 4 000 million for loans to Member States and to certain non-member States. (3) Loans subrogated to the EU following Syria defaults are included in t ...
... (1) There is no ceiling as it concerns countries which were not Member States at the time the EIB mandates were adopted. (2) The overall ceiling is EUR 4 000 million for loans to Member States and to certain non-member States. (3) Loans subrogated to the EU following Syria defaults are included in t ...
Chapter 4: Inflation in the Twentieth Century
... today’s elderly people were hurt badly by the inflation of the 1970s. Their Social Security was not the reason because Social Security has a COLA. But the money they had saved for their retirement lost much of its value as prices rose so greatly. Homeowners are big “winners” from inflation. First, t ...
... today’s elderly people were hurt badly by the inflation of the 1970s. Their Social Security was not the reason because Social Security has a COLA. But the money they had saved for their retirement lost much of its value as prices rose so greatly. Homeowners are big “winners” from inflation. First, t ...
Extreme Inflation: Dynamics and Stabilization
... and deficitfinancethus becomes highlyinflationary. Highlyuniqueconditionslead to extreme inflation.In additionto the shocks, a countrymust alreadybe in a weakened state, and the process must be allowed to run its course uncheckedfor quite a while if it is to lead ultimately to extreme inflation. In ...
... and deficitfinancethus becomes highlyinflationary. Highlyuniqueconditionslead to extreme inflation.In additionto the shocks, a countrymust alreadybe in a weakened state, and the process must be allowed to run its course uncheckedfor quite a while if it is to lead ultimately to extreme inflation. In ...
An Empirical Analysis of Foreign Exchange Reserves in Emerging
... Over the past few years, the ability of the United States to finance its current account deficit has been facilitated by massive purchases of U.S. Treasury bonds and agency securities by Asian central banks. In this process, Asian central banks have accumulated large stockpiles of U.S.-dollar foreig ...
... Over the past few years, the ability of the United States to finance its current account deficit has been facilitated by massive purchases of U.S. Treasury bonds and agency securities by Asian central banks. In this process, Asian central banks have accumulated large stockpiles of U.S.-dollar foreig ...
Currency Mismatch, Systemic Risk in Emerging Europe (December 2009)
... Borrowers find currency mismatch optimal because (i) the expected interest payments on Euro debt are lower than those on domestic currency debt, even after correcting for expected depreciation; and (ii) they can borrow more. Risk premia on Euro debt do not fully reflect the extent of insolvency risk ...
... Borrowers find currency mismatch optimal because (i) the expected interest payments on Euro debt are lower than those on domestic currency debt, even after correcting for expected depreciation; and (ii) they can borrow more. Risk premia on Euro debt do not fully reflect the extent of insolvency risk ...
Inflation Cycles
... To decide when to work, people compare the return from working in the current period with the expected return from working in a later period. The when-to-work decision depends on the real interest rate. The lower the real interest rate, the smaller is the supply of labor today. Many economists belie ...
... To decide when to work, people compare the return from working in the current period with the expected return from working in a later period. The when-to-work decision depends on the real interest rate. The lower the real interest rate, the smaller is the supply of labor today. Many economists belie ...
Interdependence among Agricultural Commodity
... Trujillo-Barrera et al. (2012) showed that historical maize volatility of daily percentage price changes were below 25% before 2006 and since then have increased to over 40% up to 2011. As a result, the literature has resumed its interest in the causal links between agricultural commodity and energ ...
... Trujillo-Barrera et al. (2012) showed that historical maize volatility of daily percentage price changes were below 25% before 2006 and since then have increased to over 40% up to 2011. As a result, the literature has resumed its interest in the causal links between agricultural commodity and energ ...
File
... population lead to a lower percentage of teenagers in the labor force, we would expect the natural rate of unemployment to decrease. In the 1990s, there were fewer teenagers than adults in the labor force. This change in demographics appears to have been what caused the natural rate of unemployment ...
... population lead to a lower percentage of teenagers in the labor force, we would expect the natural rate of unemployment to decrease. In the 1990s, there were fewer teenagers than adults in the labor force. This change in demographics appears to have been what caused the natural rate of unemployment ...
AP 宏觀經濟學講義
... money demand, the course should proceed to investigate how equilibrium in the money market determines the equilibrium interest rate, how the investment demand curve provides the link between changes in the interest rate and changes in aggregate demand, and how changes in aggregate demand affect real ...
... money demand, the course should proceed to investigate how equilibrium in the money market determines the equilibrium interest rate, how the investment demand curve provides the link between changes in the interest rate and changes in aggregate demand, and how changes in aggregate demand affect real ...
Yield Curve Analysis: Choosing the optimal maturity date of
... further includes assumptions such as the lack of taxes and transaction fees, as well as the assumption, that every market participant can raise and invest funds at the same interest rate. The capital market is information efficient, when all information is used to obtain a profit and hence market price ...
... further includes assumptions such as the lack of taxes and transaction fees, as well as the assumption, that every market participant can raise and invest funds at the same interest rate. The capital market is information efficient, when all information is used to obtain a profit and hence market price ...
The Devaluation of the Birr - Solidarity Movement for a New Ethiopia
... commodities, too. Commodity prices are notoriously known to fluctuate depending on world economic situations and demand. Given that Ethiopia must export whatever it got, it is not clear whether the devaluation will help. As indicated above, devaluation also adversely affects intermediate and capital ...
... commodities, too. Commodity prices are notoriously known to fluctuate depending on world economic situations and demand. Given that Ethiopia must export whatever it got, it is not clear whether the devaluation will help. As indicated above, devaluation also adversely affects intermediate and capital ...
NBER WORKING PAPER SERIES ROLE REVERSAL IN GLOBAL FINANCE Eswar S. Prasad
... economies and could lower their productivity growth relative to emerging markets. This suggests that emerging market currencies are eventually going to appreciate against those of the advanced economies, which in turn implies a significant wealth transfer (in nominal domestic currency terms) in the ...
... economies and could lower their productivity growth relative to emerging markets. This suggests that emerging market currencies are eventually going to appreciate against those of the advanced economies, which in turn implies a significant wealth transfer (in nominal domestic currency terms) in the ...
NBER WORKING PAPER SERIES A MODEL OF SECULAR STAGNATION Gauti B. Eggertsson
... permanently negative. The key here is that households shift from borrowing to saving over their lifecycle. If a borrower takes on less debt today (due to the deleveraging shock) then when tomorrow comes, he has greater savings capacity since he has less debt to repay. This implies that deleveraging ...
... permanently negative. The key here is that households shift from borrowing to saving over their lifecycle. If a borrower takes on less debt today (due to the deleveraging shock) then when tomorrow comes, he has greater savings capacity since he has less debt to repay. This implies that deleveraging ...
29.3 aggregate demand
... When the price level rises, the real interest rate rises. An increase in the price level increases the amount of money that people want to hold—increases the demand for money. When the demand for money increases, the nominal interest rate rises. In the short run, the inflation rate doesn’t change, s ...
... When the price level rises, the real interest rate rises. An increase in the price level increases the amount of money that people want to hold—increases the demand for money. When the demand for money increases, the nominal interest rate rises. In the short run, the inflation rate doesn’t change, s ...
MB-Ch.19
... interest payments, or some type of positive rate of return, may be obtained. Most assets that considered money, such as currency and most checking account deposits do not pay any interest, and some such as NOW account earn low interest. Thus, holding money is ...
... interest payments, or some type of positive rate of return, may be obtained. Most assets that considered money, such as currency and most checking account deposits do not pay any interest, and some such as NOW account earn low interest. Thus, holding money is ...
An Abridged Roadmap from The Keynesian Cross to the AD Curve
... Remember the old M V = P Y equation? It’s back. The LM curve is drawn for a given fixed level of real balances (M /P ). As output increases, people need more money to buy that output, and there is an increase in demand for real money balances. But we just said the level of real money balances was fi ...
... Remember the old M V = P Y equation? It’s back. The LM curve is drawn for a given fixed level of real balances (M /P ). As output increases, people need more money to buy that output, and there is an increase in demand for real money balances. But we just said the level of real money balances was fi ...
Slide - MyWeb
... The AD curve is a useful summary of this analysis in that every point on the curve corresponds to equilibrium in both the goods and money markets for the given value of the price level. We have not yet, however, determined the price level. This is the task of the next chapter. ...
... The AD curve is a useful summary of this analysis in that every point on the curve corresponds to equilibrium in both the goods and money markets for the given value of the price level. We have not yet, however, determined the price level. This is the task of the next chapter. ...
Graduate School of Management
... So far, we have said little about how government decisions influence our economy. We are now going to remedy that deficiency by considering a couple of hypothetical economies, facing hypothetical problems. Since these countries are similar to the United States, it is not surprising that they face si ...
... So far, we have said little about how government decisions influence our economy. We are now going to remedy that deficiency by considering a couple of hypothetical economies, facing hypothetical problems. Since these countries are similar to the United States, it is not surprising that they face si ...
Searching for the Natural Rate of Unemployment in a Large Relative
... robustness” here does not come from applying several methodologies and comparing their results – a common procedure – but rather from analysing and understanding what seems to have driven unemployment in Brazil, and confronting those findings with the empirical results. A “side-effect” or “by-produc ...
... robustness” here does not come from applying several methodologies and comparing their results – a common procedure – but rather from analysing and understanding what seems to have driven unemployment in Brazil, and confronting those findings with the empirical results. A “side-effect” or “by-produc ...
Export Dynamics in Large Devaluations January 2014
... port pro…ts, are backloaded. Thus, to expand the stock of exporters requires the economy initially to devote substantial resources to invest in export capacity, which lowers current consumption relative to the future. The desire to smooth consumption thus puts a brake on the speed of export expansi ...
... port pro…ts, are backloaded. Thus, to expand the stock of exporters requires the economy initially to devote substantial resources to invest in export capacity, which lowers current consumption relative to the future. The desire to smooth consumption thus puts a brake on the speed of export expansi ...
Measuring the Impacts of Trade Policies: Effective Rates of
... Trade policies work through their effects on domestic prices of goods and services – by altering the relationship between domestic and world market prices. Import duties raise domestic prices, while export taxes lower them. Policies that regulate the quantities of imports or exports have an indirect ...
... Trade policies work through their effects on domestic prices of goods and services – by altering the relationship between domestic and world market prices. Import duties raise domestic prices, while export taxes lower them. Policies that regulate the quantities of imports or exports have an indirect ...
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.