Nominal GDP Targeting for Developing Countries
... frustrated, however by an unstable money demand function. NGDP targeting was designed specifically to counter such velocity shocks. Nevertheless it was not adopted anywhere. The concept was on the backburner for several decades. Instead, the dominant approach for many smaller and developing countrie ...
... frustrated, however by an unstable money demand function. NGDP targeting was designed specifically to counter such velocity shocks. Nevertheless it was not adopted anywhere. The concept was on the backburner for several decades. Instead, the dominant approach for many smaller and developing countrie ...
Temi di discussione
... spillovers of monetary policy shocks on the other hand. Mounting evidence suggest that the cross-country transmission of shocks plays an important role in international business ‡uctuations, but so far only a limited number of studies have examined the role of shocks to monetary aggregates in drivin ...
... spillovers of monetary policy shocks on the other hand. Mounting evidence suggest that the cross-country transmission of shocks plays an important role in international business ‡uctuations, but so far only a limited number of studies have examined the role of shocks to monetary aggregates in drivin ...
Macroeconomic Implications Of Capital Inflows In India :
... rate and exports follows an I(1) process, current account balance is the only variable that follows I(0) process. Cointegration test shows the presence of long run relationship between a few pair of variables. The Granger causality test shows the unidirectional from private foreign capital to nomin ...
... rate and exports follows an I(1) process, current account balance is the only variable that follows I(0) process. Cointegration test shows the presence of long run relationship between a few pair of variables. The Granger causality test shows the unidirectional from private foreign capital to nomin ...
Introducing Financial Frictions and Unemployment into a Small
... own …nancial resources, their skill in operating capital is such that it is optimal for them to operate more capital than their own resources can support, by borrowing additional funds. There is a …nancial friction because the management of capital is risky. Individual entrepreneurs are subject to i ...
... own …nancial resources, their skill in operating capital is such that it is optimal for them to operate more capital than their own resources can support, by borrowing additional funds. There is a …nancial friction because the management of capital is risky. Individual entrepreneurs are subject to i ...
Monetary Integration, Partisanship, and
... context this situation characterized the period from the Second World War until about the late 1970s or early 1980s. The second ideal type is an after capital mobility (ACM) world with irrevocably fixed exchange rates. In fact, there are two sub-species of this regime type: one where monetary policy ...
... context this situation characterized the period from the Second World War until about the late 1970s or early 1980s. The second ideal type is an after capital mobility (ACM) world with irrevocably fixed exchange rates. In fact, there are two sub-species of this regime type: one where monetary policy ...
DP2003/8 The stabilisation problem: The case of New Zealand
... returning the macroeconomic variables to equilibrium quickly, and do not distinguish between negative and positive values. Compared with the closed economy case, the existence of an open economy channel helps the central bank achieve its goal in the face of a cost push shock. This is because an incr ...
... returning the macroeconomic variables to equilibrium quickly, and do not distinguish between negative and positive values. Compared with the closed economy case, the existence of an open economy channel helps the central bank achieve its goal in the face of a cost push shock. This is because an incr ...
Problems for Macroeconomics, 2/e
... for the differences, the text leaves the implication that Japanese banking system is less efficient than the U.S. banking system, which perhaps allows for easier recovery in the United States. There is also an allusion to the liquidity trap in Japan, since interest rates are zero. However, the mecha ...
... for the differences, the text leaves the implication that Japanese banking system is less efficient than the U.S. banking system, which perhaps allows for easier recovery in the United States. There is also an allusion to the liquidity trap in Japan, since interest rates are zero. However, the mecha ...
The Productivity Gap: Monetary Policy, the Subprime Boom
... Our Taylor Gap and Productivity Gap measures both suggest that monetary policy was excessively easy in the aftermath of the dot.com collapse, and that it was so to an extent unmatched since the 1970s. The Productivity Gap measure points, furthermore, to the more specific conclusion that the Fed erre ...
... Our Taylor Gap and Productivity Gap measures both suggest that monetary policy was excessively easy in the aftermath of the dot.com collapse, and that it was so to an extent unmatched since the 1970s. The Productivity Gap measure points, furthermore, to the more specific conclusion that the Fed erre ...
Pass-through of exchange rates and import prices to domestic
... expressed concern that as emerging market economies have recovered from the 199798 crisis, the resulting higher import prices have led to greater in‡ationary pressures in the industrialized economies. In fact, the European Central Bank has cited the possible in‡ationary e¤ects of the weak euro as o ...
... expressed concern that as emerging market economies have recovered from the 199798 crisis, the resulting higher import prices have led to greater in‡ationary pressures in the industrialized economies. In fact, the European Central Bank has cited the possible in‡ationary e¤ects of the weak euro as o ...
Government Spending Effects in a Small Open Economy
... will be studied.(Leeper (1991) and Kim (2003)) Related Literature There exists broad theoretical literature on the Taylor rules in an open economy. Many researchers argue that CPI based Taylor rules can have an indeterminacy problem. Leith and Wren-Lewis (2009) and Leith and Wren-Lewis (2008) invest ...
... will be studied.(Leeper (1991) and Kim (2003)) Related Literature There exists broad theoretical literature on the Taylor rules in an open economy. Many researchers argue that CPI based Taylor rules can have an indeterminacy problem. Leith and Wren-Lewis (2009) and Leith and Wren-Lewis (2008) invest ...
From Great Depression to Great Recession
... imbalances under the fixed exchange rates of the gold standard; there was an asymmetric burden of adjustment between deficit and surplus countries; and all countries, including those with surpluses, were reluctant to engage in fiscal expansion. The analogy may be inexact, but many of the same concer ...
... imbalances under the fixed exchange rates of the gold standard; there was an asymmetric burden of adjustment between deficit and surplus countries; and all countries, including those with surpluses, were reluctant to engage in fiscal expansion. The analogy may be inexact, but many of the same concer ...
The Study of Economics
... unemployment. In addition, a variety of factors (such as minimum wages, unions, efficiency wages, and government policies designed to help laid-off workers) result in a situation in which there is a surplus of labor at the market wage rate, creating structural unemployment. As a result, the natural ...
... unemployment. In addition, a variety of factors (such as minimum wages, unions, efficiency wages, and government policies designed to help laid-off workers) result in a situation in which there is a surplus of labor at the market wage rate, creating structural unemployment. As a result, the natural ...
Chapter 9: Monetary Policy
... see in Figure 9.1 reflect three factors. Changes in how we use money has weakened the relationship between the demand for money and the interest rate. It now it takes a larger change in M1 to produce a given change in the interest rate. Beginning in the 1980s banks were allowed to pay interest on de ...
... see in Figure 9.1 reflect three factors. Changes in how we use money has weakened the relationship between the demand for money and the interest rate. It now it takes a larger change in M1 to produce a given change in the interest rate. Beginning in the 1980s banks were allowed to pay interest on de ...
Emerging Economies` Supply Shocks and Japan`s Price Deflation
... US and Japan does not involve significant vertical specialization. Second, the parts and components produced by Japan are not highly substitutable with those from other countries, while final products are highly substitutable regardless of where they are produced. We demonstrate that these asymmetri ...
... US and Japan does not involve significant vertical specialization. Second, the parts and components produced by Japan are not highly substitutable with those from other countries, while final products are highly substitutable regardless of where they are produced. We demonstrate that these asymmetri ...
"#$%! DISCUSSION PAPER SERIES !!!"#$%&"'&()
... financial openness (a measure of cross-border capital mobility), financial development (proxied by M2/GDP), and exchange rate policy (using peg indicators). The three factors are all important and they multiplicatively compound each other as a determinant of reserve/GDP ratios in our specification. ...
... financial openness (a measure of cross-border capital mobility), financial development (proxied by M2/GDP), and exchange rate policy (using peg indicators). The three factors are all important and they multiplicatively compound each other as a determinant of reserve/GDP ratios in our specification. ...
An Empirical Test of the Dutch Disease using a Gravity Model of Trade
... systematically one of its main unambiguous testable hypothes es, the one that has attracted most concerns from economists, i.e. the hypothesis that resource boom lead to reductions in manufacturing exports, controlling for all other determinants of trade. There is a large literature on the empirics ...
... systematically one of its main unambiguous testable hypothes es, the one that has attracted most concerns from economists, i.e. the hypothesis that resource boom lead to reductions in manufacturing exports, controlling for all other determinants of trade. There is a large literature on the empirics ...
Chapter 1
... In more recent accounts, however, the interest link is often made through an opportunity cost argument. Here the demand for money is negatively related to the rate of return that can be earned on other assets. This poses greater problems when it comes to the choice of interest rate since (if money i ...
... In more recent accounts, however, the interest link is often made through an opportunity cost argument. Here the demand for money is negatively related to the rate of return that can be earned on other assets. This poses greater problems when it comes to the choice of interest rate since (if money i ...
PDF
... the details of goods markets and the purchasing power parity in exchange rate determination. A general feature of the theoretical model is that agricultural prices and the exchange rate will overshoot. A monetary expansion reduces interest rates and leads to the anticipation of a depreciated currenc ...
... the details of goods markets and the purchasing power parity in exchange rate determination. A general feature of the theoretical model is that agricultural prices and the exchange rate will overshoot. A monetary expansion reduces interest rates and leads to the anticipation of a depreciated currenc ...
Print this article
... studies find that the federal government budget deficit acts to raise longer term rates of interest while not significantly affecting shorter term rates of interest. Since capital formation is presumably much more affected by long term than by short term rates, the inference has occasionally been ma ...
... studies find that the federal government budget deficit acts to raise longer term rates of interest while not significantly affecting shorter term rates of interest. Since capital formation is presumably much more affected by long term than by short term rates, the inference has occasionally been ma ...
ACT 240H1F Sum08 Final Privacy code A 02
... 14. You are buying a $500,000 house in the United States, using a down payment of $20, 000 and, for the balance, an option adjustable rate mortgage (Option ARM, use the description in this question). Under this mortgage, for the first 120 months the interest rate on the debt is 6% per year, compound ...
... 14. You are buying a $500,000 house in the United States, using a down payment of $20, 000 and, for the balance, an option adjustable rate mortgage (Option ARM, use the description in this question). Under this mortgage, for the first 120 months the interest rate on the debt is 6% per year, compound ...
Tax-Driven Money: Additional Evidence from the History of Thought
... due, and which it chooses to say that these papers discharge, but will also be willing to enter into fresh bargains with it, to supply services or to surrender things for the paper, exactly as if it were gold; as long as it is easy to find persons who, being themselves under obligation to the Govern ...
... due, and which it chooses to say that these papers discharge, but will also be willing to enter into fresh bargains with it, to supply services or to surrender things for the paper, exactly as if it were gold; as long as it is easy to find persons who, being themselves under obligation to the Govern ...
GlobalViews - Scotia Capital
... which it expects to return to its 2% inflation target. That, in turn, would support a prolonged Bank of Canada rate pause into late 2015 or perhaps 2016. What has happened since Macklem’s speech on October 1st has not been terribly encouraging. The US partial government shutdown occurred after he sp ...
... which it expects to return to its 2% inflation target. That, in turn, would support a prolonged Bank of Canada rate pause into late 2015 or perhaps 2016. What has happened since Macklem’s speech on October 1st has not been terribly encouraging. The US partial government shutdown occurred after he sp ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) 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.