NBER WORKING PAPER SERIES THE NIXON SHOCK AFTER FORTY YEARS:
... with regard to their exchange rate. In October 1969, they revalued the mark against the dollar. In May 1971, to accommodate the growing demand for the mark on foreign exchange markets, Germany allowed the mark to float against the dollar (James 1996, 214-216). As it began to appreciate, other curren ...
... with regard to their exchange rate. In October 1969, they revalued the mark against the dollar. In May 1971, to accommodate the growing demand for the mark on foreign exchange markets, Germany allowed the mark to float against the dollar (James 1996, 214-216). As it began to appreciate, other curren ...
Macro1 Manual
... Purpose of the Module Two of the major problems faced by national economies are inflation and unemployment. Both of these have significant social costs, and it is generally considered the job of the national government to keep those costs down. As a result, governments are constantly trying to avoid ...
... Purpose of the Module Two of the major problems faced by national economies are inflation and unemployment. Both of these have significant social costs, and it is generally considered the job of the national government to keep those costs down. As a result, governments are constantly trying to avoid ...
MacroPractice
... d. leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. e. leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict. 10. The difference between the ...
... d. leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. e. leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict. 10. The difference between the ...
Official PDF , 24 pages
... proportions of real GDP produced by the first stage. The regional groupings included two sets of countries in Europe (the European Communities, or EC, and one led by Austria), Africa, Asia, and Latin America. In addition, the EC insisted that the relative per capita GDPS of its member countries obta ...
... proportions of real GDP produced by the first stage. The regional groupings included two sets of countries in Europe (the European Communities, or EC, and one led by Austria), Africa, Asia, and Latin America. In addition, the EC insisted that the relative per capita GDPS of its member countries obta ...
MacroPractice
... a. exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. b. exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. c. the larger the economic growth rate i ...
... a. exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. b. exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. c. the larger the economic growth rate i ...
Lecture Outline
... opposite direction. Definition of crowding-out effect: the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending. ...
... opposite direction. Definition of crowding-out effect: the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending. ...
NBFR WORKING PAPER SERIES COMPARING THE GLOBAL PERFORMANCE OF ALTENATIVE EXCHANGE ARRANGEMENTS
... Edlefsen and Sam Jones at Applied Technical Systems for their excellent technical support of this program. We also thank Max Corden for many interesting discussions and Ralph Bryant, Michael Emerson and Nouriel Roubini for comments, Warwick McKibbin thanks the Reserve Sank of Australia for financial ...
... Edlefsen and Sam Jones at Applied Technical Systems for their excellent technical support of this program. We also thank Max Corden for many interesting discussions and Ralph Bryant, Michael Emerson and Nouriel Roubini for comments, Warwick McKibbin thanks the Reserve Sank of Australia for financial ...
NBER WORKING PAPER SERIES OFFSET AND STERILIZATION UNDER FIXED EXCHANGE
... consistent instrumental variable estimator of the offset coefficient in the capital flow equation (b) are also unable to identify the true value of the offset parameter. Given the nature of the problems with the traditional approach to the estimation of the offset and sterilization function, the nex ...
... consistent instrumental variable estimator of the offset coefficient in the capital flow equation (b) are also unable to identify the true value of the offset parameter. Given the nature of the problems with the traditional approach to the estimation of the offset and sterilization function, the nex ...
Interpreting Money-Supply and Interest
... monetary policy, could be interpreted as a monetary-policy shock. Fung and Gupta (1994) identify a Canadian monetary-policy shock focussing on the instruments of monetary policy. Of the two instruments of monetary policy — settlement-balance management and open-market operations — settlement-balance ...
... monetary policy, could be interpreted as a monetary-policy shock. Fung and Gupta (1994) identify a Canadian monetary-policy shock focussing on the instruments of monetary policy. Of the two instruments of monetary policy — settlement-balance management and open-market operations — settlement-balance ...
an empirical study of the yen/dollar exchange rate
... associated with an increase in conditional yen/dollar volatility. Similarly, Baillie and Humpage (1992) find a positive relationship between Federal Reserve, Bank of Japan and Bundesbank intervention and the conditional volatility of the mark/dollar and yen/dollar exchange rates for the period Febr ...
... associated with an increase in conditional yen/dollar volatility. Similarly, Baillie and Humpage (1992) find a positive relationship between Federal Reserve, Bank of Japan and Bundesbank intervention and the conditional volatility of the mark/dollar and yen/dollar exchange rates for the period Febr ...
Asset Return Predictability
... (5) Internationally non-traded (NT) goods –i.e. haircuts, home and car repairs, hotels, restaurants, medical services, real estate. The NT good sector is big: 50%-60% of GDP (big weight in CPI basket). Then, in countries where NT goods are relatively high, the CPI basket will also be relatively expe ...
... (5) Internationally non-traded (NT) goods –i.e. haircuts, home and car repairs, hotels, restaurants, medical services, real estate. The NT good sector is big: 50%-60% of GDP (big weight in CPI basket). Then, in countries where NT goods are relatively high, the CPI basket will also be relatively expe ...
S h o u l d u n c... l e s s ? Chris Salmon and Ben Martin,
... rates deviate from neutral, the more uncertain the policymaker is about the resulting effect on inflation. Hence both the bias and variance terms will depend on the authority’s actions. But there is still only one instrument available to achieve this. There must therefore be some trade-off between b ...
... rates deviate from neutral, the more uncertain the policymaker is about the resulting effect on inflation. Hence both the bias and variance terms will depend on the authority’s actions. But there is still only one instrument available to achieve this. There must therefore be some trade-off between b ...
ABSTRACT Title of Document:
... monetary and capital flows policies. The central bank can precommit to follow a particular exchange rate regime only for a finite period of time; after that, regimes are abandoned and the central bank must adjust inflation to ensure that the government’s budget constraint is satisfied, similar to Sa ...
... monetary and capital flows policies. The central bank can precommit to follow a particular exchange rate regime only for a finite period of time; after that, regimes are abandoned and the central bank must adjust inflation to ensure that the government’s budget constraint is satisfied, similar to Sa ...
A Tale of Two Cycles: Co-Fluctuations Between UK
... north–south axis than in the east–west direction, then it might be more efficient to break up the existing monetary arrangement and to replace it by an ‘East dollar’ and a ‘West dollar’. Based on this reasoning, the main focus of our paper is to use geographically disaggregated macro data for the UK ...
... north–south axis than in the east–west direction, then it might be more efficient to break up the existing monetary arrangement and to replace it by an ‘East dollar’ and a ‘West dollar’. Based on this reasoning, the main focus of our paper is to use geographically disaggregated macro data for the UK ...
International Macroeconomics1
... Though conceptually important, capital-account transactions are believed to be generally small in the U.S. accounts. However, they are important to other countries. For instance, in July 2007 the U.S. Treasury Department announced that the United States, Germany, and Russia will provide debt relief ...
... Though conceptually important, capital-account transactions are believed to be generally small in the U.S. accounts. However, they are important to other countries. For instance, in July 2007 the U.S. Treasury Department announced that the United States, Germany, and Russia will provide debt relief ...
Farms, Fertiliser, and Financial Frictions: Yields from a DSGE Model
... negative correlation between inflation and the output gap in the case of supply shocks. Our results suggest that: (1) in the face of a supply-side shock, the most desirable interest rate rule involves simply targeting current inflation and smoothing the policy interest rate; and (2) ignoring financi ...
... negative correlation between inflation and the output gap in the case of supply shocks. Our results suggest that: (1) in the face of a supply-side shock, the most desirable interest rate rule involves simply targeting current inflation and smoothing the policy interest rate; and (2) ignoring financi ...
world public debt and real interest rates
... residuals are correlated across countries by using Zellner’s seemingly unrelated regressions (SUR) technique. Unfortunately, with annual data there are too few observations to estimate the system for all nine countries, so we divide them into two groups. Again, the effects of world debt are economic ...
... residuals are correlated across countries by using Zellner’s seemingly unrelated regressions (SUR) technique. Unfortunately, with annual data there are too few observations to estimate the system for all nine countries, so we divide them into two groups. Again, the effects of world debt are economic ...
Shocked by the world! Introducing the three block open economy FAVAR ∗
... regional and world factors our model is able to produce results that are in accordance with economic theory and not affected by the typical anomalies found in open and closed economy studies.7 Our work is closely related to Kose et al. [2003] approach of separating out the the effects of the world, ...
... regional and world factors our model is able to produce results that are in accordance with economic theory and not affected by the typical anomalies found in open and closed economy studies.7 Our work is closely related to Kose et al. [2003] approach of separating out the the effects of the world, ...
Monetary Policy Fall 2016 (material for last course outline)
... If the Fed wants to stimulate the economy it will inject reserves with open market purchases until the federal funds rate falls to a lower target. If the Fed wants to slow down the economy, it will sell bonds on the open market and drain reserves until the federal funds rate rises to a higher target ...
... If the Fed wants to stimulate the economy it will inject reserves with open market purchases until the federal funds rate falls to a lower target. If the Fed wants to slow down the economy, it will sell bonds on the open market and drain reserves until the federal funds rate rises to a higher target ...
economics notes
... willingness to take risks and invest, institutions for capital mobilisation, breakdown of feudalism. take off - death of vested interests, incentive to profit from saving, innovation starts. drive to technological maturity - extension, self reinforcing. maturity of high mass consumption - a way of l ...
... willingness to take risks and invest, institutions for capital mobilisation, breakdown of feudalism. take off - death of vested interests, incentive to profit from saving, innovation starts. drive to technological maturity - extension, self reinforcing. maturity of high mass consumption - a way of l ...
Can Inflation Targeting Work in Emerging Market Countries
... (2001) liability dollarization is what leads to an entirely different impact of currency crises on the economy in emerging market versus advanced countries. In emerging market countries, a sharp real currency depreciation raises the value of liabilities in local currency, thus causing the net worth ...
... (2001) liability dollarization is what leads to an entirely different impact of currency crises on the economy in emerging market versus advanced countries. In emerging market countries, a sharp real currency depreciation raises the value of liabilities in local currency, thus causing the net worth ...
Slide 1
... The last 19 years have been full of turmoil from the economic and financial point of view. Considering the number of financial crises that have taken place and the unfolding of the current financial crisis that began in 2007, I considered the phenomenon of Sudden Stop an important issue, especially ...
... The last 19 years have been full of turmoil from the economic and financial point of view. Considering the number of financial crises that have taken place and the unfolding of the current financial crisis that began in 2007, I considered the phenomenon of Sudden Stop an important issue, especially ...
Why Do British Nationals Emigrate to the United States of America?
... East hit by a falling dollar, as most currencies there are pegged to the U.S. Dollar. If these currencies deteriorate then they decrease the purchasing power parity of the workers in their home country. (Mishra et al, 2009) In the case of British emigrants to the U.S. I would assume that they are fo ...
... East hit by a falling dollar, as most currencies there are pegged to the U.S. Dollar. If these currencies deteriorate then they decrease the purchasing power parity of the workers in their home country. (Mishra et al, 2009) In the case of British emigrants to the U.S. I would assume that they are fo ...
How Important Are Foreign Shocks in Small Open
... Mać kowiak (2006a) asks to what extent the macroeconomic variation is caused by external shocks in Central Europe. He examines Czech Republic, Poland and Hungary (note that he does not consider the remaining Central European country that is in center of attention in this paper – Slovakia). Using Ger ...
... Mać kowiak (2006a) asks to what extent the macroeconomic variation is caused by external shocks in Central Europe. He examines Czech Republic, Poland and Hungary (note that he does not consider the remaining Central European country that is in center of attention in this paper – Slovakia). Using Ger ...
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.