DP2005/04 Reaction functions in a small open economy: What role for non-traded inflation?
... Australia and Canada, Bharucha and Kent (1998) and Ortega and Rebei (2005). ...
... Australia and Canada, Bharucha and Kent (1998) and Ortega and Rebei (2005). ...
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 ...
Balance Sheet Effects, Bailout Guarantees and Financial Crises (2004, Review of Economic Studies)
... The emergence of both real exchange rate risk and systemic credit risk in our model is selffulfilling. On the one hand, if N-sector managers expect the real exchange rate to fluctuate, they find it optimal to create a “currency mismatch” and thereby risk going bankrupt. Indeed, suppose managers beli ...
... The emergence of both real exchange rate risk and systemic credit risk in our model is selffulfilling. On the one hand, if N-sector managers expect the real exchange rate to fluctuate, they find it optimal to create a “currency mismatch” and thereby risk going bankrupt. Indeed, suppose managers beli ...
Do Exchange Rates Affect the Capital-Labour Ratio?
... and Dekle (1998) concentrate on the impact on employment, 3 and Campa and Goldberg (1995, 1999) and Harchaoui, Tarkhani, and Yuen (2003) focus on investment decisions.4 Second, the majority of these studies concentrate on the partial adjustment path without imputing the long-run elasticities of inp ...
... and Dekle (1998) concentrate on the impact on employment, 3 and Campa and Goldberg (1995, 1999) and Harchaoui, Tarkhani, and Yuen (2003) focus on investment decisions.4 Second, the majority of these studies concentrate on the partial adjustment path without imputing the long-run elasticities of inp ...
the relationship between selected macroeconomic factors and gold
... gold price have been studied by researchers in Malaysia. Nurulhuda, Izzat, Rahayu (2014) analysed the factors of crude oil prices, inflation rate and exchange rate affect the price of gold in Malaysia. Ernie (2013) has analysed the relationship among interest rates, consumer price index, money suppl ...
... gold price have been studied by researchers in Malaysia. Nurulhuda, Izzat, Rahayu (2014) analysed the factors of crude oil prices, inflation rate and exchange rate affect the price of gold in Malaysia. Ernie (2013) has analysed the relationship among interest rates, consumer price index, money suppl ...
A Antonio Martino
... its importance, price stability has reacquired the position it held in pre-Keynesian times, when it was believed that a stable purchasing power of money was a necessary precondition for a free and prosperous economy. In a Keynesian world, price stability is not necessarily desirable. Most Key- nesia ...
... its importance, price stability has reacquired the position it held in pre-Keynesian times, when it was believed that a stable purchasing power of money was a necessary precondition for a free and prosperous economy. In a Keynesian world, price stability is not necessarily desirable. Most Key- nesia ...
Country Size and the Transfer Effect Vahagn Galstyan
... the sensitivity of relative prices to external imbalances. For instance, a 1 percentage point reduction in the trade deficit to GDP ratio requires a 3.6 percentage point depreciation of the real exchange rate for a small country with 1 percent population size relative to the world. In contrast, a 1 ...
... the sensitivity of relative prices to external imbalances. For instance, a 1 percentage point reduction in the trade deficit to GDP ratio requires a 3.6 percentage point depreciation of the real exchange rate for a small country with 1 percent population size relative to the world. In contrast, a 1 ...
The IS-LM/AD-AS Model: A General Framework for Macroeconomic
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... products were all associated with higher GDP price levels. In addition, positive deviations of the value of a country’s currency from its long-term trend also usually produced higher price levels, although the first period was an exception. 15.2.2 Price Levels for Broad Product Groups The ICP groups ...
... products were all associated with higher GDP price levels. In addition, positive deviations of the value of a country’s currency from its long-term trend also usually produced higher price levels, although the first period was an exception. 15.2.2 Price Levels for Broad Product Groups The ICP groups ...
Orders and Positions
... system, or the exchange. This might happen for several reasons including: • A bad symbol. For example, a symbol that might be valid within CQG but is not valid for the indicated exchange or for the indicated account. • An order type not supported by the indicated exchange. • A limit price that is no ...
... system, or the exchange. This might happen for several reasons including: • A bad symbol. For example, a symbol that might be valid within CQG but is not valid for the indicated exchange or for the indicated account. • An order type not supported by the indicated exchange. • A limit price that is no ...
NBER WORKING PAPER SERIES INTERNATIONAL RESERVES MANAGEMENT
... focused on using international reserves as part of the management of an adjustable peg or managed floating exchange rate regime [Frenkel (1983), Edwards (1983); see Flood and Marion (2001) for a literature review]. The recent financial crises afflicting countries with limited access to international ...
... focused on using international reserves as part of the management of an adjustable peg or managed floating exchange rate regime [Frenkel (1983), Edwards (1983); see Flood and Marion (2001) for a literature review]. The recent financial crises afflicting countries with limited access to international ...
irving fisher`s debt deflation analysis
... the desire of agents to hold more money will vanish. A decrease in the expected inflation rate, all things being equal, raises the real rate of interest and discourages investment. Contracts made when prices were higher and expected to remain higher remained in force. When prices start falling, the ...
... the desire of agents to hold more money will vanish. A decrease in the expected inflation rate, all things being equal, raises the real rate of interest and discourages investment. Contracts made when prices were higher and expected to remain higher remained in force. When prices start falling, the ...
Welcome to the Study Guide
... the scientific method? Why has this method been instrumental in accelerating the process of technological change? Also, why do people behave “unscientifically”? 4. Explain the three spheres of human existence, as shown in Figure 1.1 in the textbook. What problems would you face if you analyzed econo ...
... the scientific method? Why has this method been instrumental in accelerating the process of technological change? Also, why do people behave “unscientifically”? 4. Explain the three spheres of human existence, as shown in Figure 1.1 in the textbook. What problems would you face if you analyzed econo ...
Non-Wasteful Government Spending in an Estimated Open
... Fiscal policy has been gaining renewed attention as a stabilization tool after the Lehman shock, since the zero bound on nominal interest rate has become a binding constraint for monetary policy in major industrial countries. With regard to the consequences of …scal policy, however, there are two ma ...
... Fiscal policy has been gaining renewed attention as a stabilization tool after the Lehman shock, since the zero bound on nominal interest rate has become a binding constraint for monetary policy in major industrial countries. With regard to the consequences of …scal policy, however, there are two ma ...
Taxa Real de Câmbio, Mobilidade de Capitais e Mudança Estrutural
... (considering a fixed exchange-rate regime) induced by the growth rate of real output2. In this setting, it is possible the construction of dynamic models where initial conditions largely determine the long-run growth rate3. Kaldorian cumulative causation models have, in general, four equations: a f ...
... (considering a fixed exchange-rate regime) induced by the growth rate of real output2. In this setting, it is possible the construction of dynamic models where initial conditions largely determine the long-run growth rate3. Kaldorian cumulative causation models have, in general, four equations: a f ...
del08 wollmershaeuser 7196267 de
... area countries of having a common monetary policy.1 A single monetary policy almost by definition implies that policy will not be appropriate for all member countries at the same time. The larger the difference between the actual monetary policy and the monetary policy preferred by individual member ...
... area countries of having a common monetary policy.1 A single monetary policy almost by definition implies that policy will not be appropriate for all member countries at the same time. The larger the difference between the actual monetary policy and the monetary policy preferred by individual member ...
NBER WORKING PAPER SERIES CAN INFLATION TARGETING WORK IN EMERGING MARKET COUNTRIES?
... escaped relatively unscathed (although Chile has seen its growth rate fall by more than 50 percent). In Asia, Korea has had a strong recovery, while Indonesia is still reeling from the shock. Tentative analysis suggests that these different outcomes have much to do with initial conditions. Chile ha ...
... escaped relatively unscathed (although Chile has seen its growth rate fall by more than 50 percent). In Asia, Korea has had a strong recovery, while Indonesia is still reeling from the shock. Tentative analysis suggests that these different outcomes have much to do with initial conditions. Chile ha ...
the role of the euro in sub-saharan Africa and in the CFA franc zone
... (see detailed table by SSA countries in Annex). In southern Africa the SouthAfrican Rand has the main role as a reference currency whereas in eastern Africa currency arrangements tend to be heterogeneous while giving little importance to the euro. However, the euro is an important reference currenc ...
... (see detailed table by SSA countries in Annex). In southern Africa the SouthAfrican Rand has the main role as a reference currency whereas in eastern Africa currency arrangements tend to be heterogeneous while giving little importance to the euro. However, the euro is an important reference currenc ...
The long-term level “misalignment” of the exchange rate:
... cent lower than the levels around which it has actually fluctuated over the last couple of decades. A decline in the real exchange rate raises the relative price of consumption, and helps adjust to the decline in our incomes relative to those in other countries. But it also enables New Zealand firms ...
... cent lower than the levels around which it has actually fluctuated over the last couple of decades. A decline in the real exchange rate raises the relative price of consumption, and helps adjust to the decline in our incomes relative to those in other countries. But it also enables New Zealand firms ...
MEASURING PRODUCTION AND INCOME, Chapter 2
... 8. THE CLASSICAL MODEL = The Keynesian model in the long run. Assumption: The levels of capital (K) and labor (L) are fixed. Prices are flexible which leads to full employment of K and labor input (L): Actual output = potential output. A. The closed economy: The interest rate is flexible. Main lesso ...
... 8. THE CLASSICAL MODEL = The Keynesian model in the long run. Assumption: The levels of capital (K) and labor (L) are fixed. Prices are flexible which leads to full employment of K and labor input (L): Actual output = potential output. A. The closed economy: The interest rate is flexible. Main lesso ...
The financial crisis and sizable international reserves
... economy, reflecting anticipation of lower future growth. In the category of financial market factors, the first variable we include is financial openness. We use the Chinn-Ito capital market openness index (Kopen). The second variable is historic exchange rate volatility (exstdev), which is measured ...
... economy, reflecting anticipation of lower future growth. In the category of financial market factors, the first variable we include is financial openness. We use the Chinn-Ito capital market openness index (Kopen). The second variable is historic exchange rate volatility (exstdev), which is measured ...
Economics Power Guide
... The main determinant of quantity demanded is the good’s price If the price is low, then consumers will demand more If the price is high, then buyers will demand less of the good The law of demand refers to the inverse relationship between price and QD It results from the cost-benefit analy ...
... The main determinant of quantity demanded is the good’s price If the price is low, then consumers will demand more If the price is high, then buyers will demand less of the good The law of demand refers to the inverse relationship between price and QD It results from the cost-benefit analy ...
Structural reforms and macroeconomic performance in the euro area
... The recent financial crisis is likely to have produced persistent and large negative effects not only on the short-run economic activity but also on the long-run potential output of the industrialized countries. This has contributed to renew the interest in understanding the macroeconomic impact of ...
... The recent financial crisis is likely to have produced persistent and large negative effects not only on the short-run economic activity but also on the long-run potential output of the industrialized countries. This has contributed to renew the interest in understanding the macroeconomic impact of ...
Ch 15 Large-scale Retail Store Law
... Note: The $ 12,410 gain in the futures market less the $ 11,540 loss in the spotmarket transactions left the company with a slight gain of $ 870. After commissions are paid, there will be a slight loss on this transaction. Irwin/McGraw-Hill ...
... Note: The $ 12,410 gain in the futures market less the $ 11,540 loss in the spotmarket transactions left the company with a slight gain of $ 870. After commissions are paid, there will be a slight loss on this transaction. Irwin/McGraw-Hill ...
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.