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 ...
the macroeconomics of the trym model of the
... This volume is intended to make the Treasury macroeconomic (TRYM) model more accessible by providing an overview of how the model works and how to interpret model results. It contains: (1) a description of the overall structure of the model and a summary of its main relationships; (2) a brief descri ...
... This volume is intended to make the Treasury macroeconomic (TRYM) model more accessible by providing an overview of how the model works and how to interpret model results. It contains: (1) a description of the overall structure of the model and a summary of its main relationships; (2) a brief descri ...
TRYM - Treasury archive
... This volume is intended to make the Treasury macroeconomic (TRYM) model more accessible by providing an overview of how the model works and how to interpret model results. It contains: (1) a description of the overall structure of the model and a summary of its main relationships; (2) a brief descri ...
... This volume is intended to make the Treasury macroeconomic (TRYM) model more accessible by providing an overview of how the model works and how to interpret model results. It contains: (1) a description of the overall structure of the model and a summary of its main relationships; (2) a brief descri ...
NBER WORKING PAPER SERIES WORLD FOOD PRICES AND MONETARY POLICY Luis Catão
... and others), the evidence suggests that food price shocks have been no less important as drivers of global inflation. To illustrate, Figure 1 displays relative food prices against the world price level (proxied by the US WPI) since 1960.1 The correlation coefficient is sizeable (0.54). Also, fluctuati ...
... and others), the evidence suggests that food price shocks have been no less important as drivers of global inflation. To illustrate, Figure 1 displays relative food prices against the world price level (proxied by the US WPI) since 1960.1 The correlation coefficient is sizeable (0.54). Also, fluctuati ...
The Impact of Hedging on Firm Value
... of derivatives published by the Bank of International Settlements shows that the notional amount outstanding of over-the-counter derivatives increased from US$257.9 billion in December 2004 to US$415.8 billion in the same month in 2006 (BIS, 2007). Part of this increase is attributed to a greater us ...
... of derivatives published by the Bank of International Settlements shows that the notional amount outstanding of over-the-counter derivatives increased from US$257.9 billion in December 2004 to US$415.8 billion in the same month in 2006 (BIS, 2007). Part of this increase is attributed to a greater us ...
World Food Prices and Monetary Policy
... and others), the evidence suggests that food price shocks have been no less important as drivers of global inflation. To illustrate, Figure 1 displays relative food prices against the world price level (proxied by the US WPI) since 1960.1 The correlation coefficient is sizeable (0.54). Also, fluctuati ...
... and others), the evidence suggests that food price shocks have been no less important as drivers of global inflation. To illustrate, Figure 1 displays relative food prices against the world price level (proxied by the US WPI) since 1960.1 The correlation coefficient is sizeable (0.54). Also, fluctuati ...
Forecasting real GDP: what role for narrow money?
... from the 1960s until the 1990s, shows that monetary aggregates do not play a significant role within a wide range of variables. For France, Sauer and Scheide (1995), reveal a causal relationship between real M1 and real domestic spending within a cointegration framework whereas, in Estrella and Mis ...
... from the 1960s until the 1990s, shows that monetary aggregates do not play a significant role within a wide range of variables. For France, Sauer and Scheide (1995), reveal a causal relationship between real M1 and real domestic spending within a cointegration framework whereas, in Estrella and Mis ...
IOSR Journal of Business and Management (IOSRJBM)
... period 1862-1957. The result of the tests confirmed the existence of an inflation-unemployment trade-off. The discovery is strengthened by the fact that movement in the money wages could be explained by the level and changes of unemployment, an argument in favour of the Philips curve is the extensio ...
... period 1862-1957. The result of the tests confirmed the existence of an inflation-unemployment trade-off. The discovery is strengthened by the fact that movement in the money wages could be explained by the level and changes of unemployment, an argument in favour of the Philips curve is the extensio ...
On the Nominal Interest Rate Yield Response to Net Government
... identify determinants of the nominal interest rate yield on ten-year U.S. Treasury notes, including the impact of the federal budget deficit on same. To do so, a loanable funds model is adopted in which the nominal intermediate-term (in this study, ten-year) interest rate yield is, assuming all othe ...
... identify determinants of the nominal interest rate yield on ten-year U.S. Treasury notes, including the impact of the federal budget deficit on same. To do so, a loanable funds model is adopted in which the nominal intermediate-term (in this study, ten-year) interest rate yield is, assuming all othe ...
A small model of the UK economy - Office for Budget Responsibility
... suitability of which depends upon its intended use. The sorts of models produced by academic macroeconomists typically adhere strictly to the prescriptions of their microeconomic foundations. That is to say that, whether it’s a model with three equations or twenty, the laws of motion of the economy ...
... suitability of which depends upon its intended use. The sorts of models produced by academic macroeconomists typically adhere strictly to the prescriptions of their microeconomic foundations. That is to say that, whether it’s a model with three equations or twenty, the laws of motion of the economy ...
1 - Whitman People
... Describe the sequence of events that occurs in response to a contractionary fiscal policy. Explain in terms of the impact on aggregate output, money demand, interest rates and planned investment. Aggregate output decreases which in turn causes money demand to decrease. This places pressure on the in ...
... Describe the sequence of events that occurs in response to a contractionary fiscal policy. Explain in terms of the impact on aggregate output, money demand, interest rates and planned investment. Aggregate output decreases which in turn causes money demand to decrease. This places pressure on the in ...
Is Mercosur an Optimal Currency Area? A shock correlation
... of arbitrage is reached. If there were neither price flexibility nor factor mobility, the adjustment would be made by the nominal exchange rate. In a floating regime, the reduction of exports and increase of imports would pressure up the nominal exchange rate in country B. Then, a country only needs ...
... of arbitrage is reached. If there were neither price flexibility nor factor mobility, the adjustment would be made by the nominal exchange rate. In a floating regime, the reduction of exports and increase of imports would pressure up the nominal exchange rate in country B. Then, a country only needs ...
The Benefits and Costs of Renminbi Internationalization
... Yao (2010) compared the benefits and challenges of RMB internationalization, arguing that the cross-border circulation of RMB would have a very small impact on the effectiveness of the PRC’s monetary policy, based on the VAR model. Zhang (2013) pointed out the arbitrage risks during the process of R ...
... Yao (2010) compared the benefits and challenges of RMB internationalization, arguing that the cross-border circulation of RMB would have a very small impact on the effectiveness of the PRC’s monetary policy, based on the VAR model. Zhang (2013) pointed out the arbitrage risks during the process of R ...
ECON 202 - Macroeconomic Principles
... The Fed can increase or decrease the total amount of reserves in the banking system through either of the following operations: ...
... The Fed can increase or decrease the total amount of reserves in the banking system through either of the following operations: ...
Monetary Policy and Inflation in Israel
... output relative to potential output, xt is an exogenous variable that represents an impulse to aggregate demand (e.g., fiscal policy), /, is the monetary policy instrument (say, the interest rate on central bank funds) andf,,77,, 0, are i.i.d. random variables with a zero ...
... output relative to potential output, xt is an exogenous variable that represents an impulse to aggregate demand (e.g., fiscal policy), /, is the monetary policy instrument (say, the interest rate on central bank funds) andf,,77,, 0, are i.i.d. random variables with a zero ...
Large Devaluations and the Real Exchange Rate
... Although the rates of inflation implied by our price-accounting exercise are similar to actual rates of inflation, they are not identical. There are two factors that might eliminate the remaining discrepancies. The first factor is a specification error associated with our simplifying assumption tha ...
... Although the rates of inflation implied by our price-accounting exercise are similar to actual rates of inflation, they are not identical. There are two factors that might eliminate the remaining discrepancies. The first factor is a specification error associated with our simplifying assumption tha ...
Globalizing Capital: A History of the International Monetary System
... bear against an exchange rate peg, controls limited the steps that governments had to take in its defense. For several decades after World War II, limits on capital mobility substituted for limits on democracy as a source of insulation from market pressures. Over time, however, capital controls beca ...
... bear against an exchange rate peg, controls limited the steps that governments had to take in its defense. For several decades after World War II, limits on capital mobility substituted for limits on democracy as a source of insulation from market pressures. Over time, however, capital controls beca ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... in exchange rates, raises issues at the core of the design of national monetary policies in a globalizing world economy.1 On the one hand, a low elasticity of import prices with respect to the exchange rate can result from the presence of costs incurred locally before the imported goods reach the co ...
... in exchange rates, raises issues at the core of the design of national monetary policies in a globalizing world economy.1 On the one hand, a low elasticity of import prices with respect to the exchange rate can result from the presence of costs incurred locally before the imported goods reach the co ...
MONETARY AND FISCAL POLICY IN THE VERY SHORT RUN
... Figure 12-1 illustrates one of the most recent responses of the economy to monetary policy intervention. In 1997 and 1998, real GDP was growing at an average annual rate of approximately 4 percent. The governor of the Bank of Canada considered this growth to be to be excessively strong and, therefor ...
... Figure 12-1 illustrates one of the most recent responses of the economy to monetary policy intervention. In 1997 and 1998, real GDP was growing at an average annual rate of approximately 4 percent. The governor of the Bank of Canada considered this growth to be to be excessively strong and, therefor ...
What Is Price Level Stability?
... independently of the state of the economy. An everyday example of a fixed rule is a stop sign--“Stop regardless of the state of the road ahead.” A fixed-rule policy proposed by Milton Friedman is to keep the quantity of money growing at a constant rate regardless of the state of the economy. ...
... independently of the state of the economy. An everyday example of a fixed rule is a stop sign--“Stop regardless of the state of the road ahead.” A fixed-rule policy proposed by Milton Friedman is to keep the quantity of money growing at a constant rate regardless of the state of the economy. ...
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... Governing Council might have reached its decisions, we test which decision rule aggregates the counterfactual national interest rate paths we derived best to the EONIA path. First, we consider a political economy scenario as in Hayo and Méon (2011) and Riboni and Ruge-Murcia (2010) where the governo ...
... Governing Council might have reached its decisions, we test which decision rule aggregates the counterfactual national interest rate paths we derived best to the EONIA path. First, we consider a political economy scenario as in Hayo and Méon (2011) and Riboni and Ruge-Murcia (2010) where the governo ...
Unemployment
... According to the natural rate theory, the only level of unemployment consistent with a stable inflation rate is the natural rate of unemployment. The long-run Phillips curve must, in this theory, be drawn as a vertical line, rising straight up at the natural unemployment rate, as shown by the vertic ...
... According to the natural rate theory, the only level of unemployment consistent with a stable inflation rate is the natural rate of unemployment. The long-run Phillips curve must, in this theory, be drawn as a vertical line, rising straight up at the natural unemployment rate, as shown by the vertic ...
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.