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 ...
UNDERLYING FACTORS OF PERSISTENT INFLATION IN ROMANIA
... driven beyond potential GDP, this will cause an inflationary gap. Potential GDP is defined as the maximum possible output that an economy can produce with its given resources and technology while the difference between potential GDP and actual GDP is defined as the output gap. A positive output gap ...
... driven beyond potential GDP, this will cause an inflationary gap. Potential GDP is defined as the maximum possible output that an economy can produce with its given resources and technology while the difference between potential GDP and actual GDP is defined as the output gap. A positive output gap ...
20 pages - World bank documents
... Argentina, Chile, and Uruguay suffered from severe macroeconomic imbalances in the mid-1970s. In Chile in 1973 the annual inflation rate reached 813 percent, with a fiscal deficit of almost 25 percent of GDP; Argentina in 1976 had an inflation rate of nmorethan 400 percent; and in Uruguay in 1974 th ...
... Argentina, Chile, and Uruguay suffered from severe macroeconomic imbalances in the mid-1970s. In Chile in 1973 the annual inflation rate reached 813 percent, with a fiscal deficit of almost 25 percent of GDP; Argentina in 1976 had an inflation rate of nmorethan 400 percent; and in Uruguay in 1974 th ...
Economics: Explore and Apply 1/e by Ayers and Collinge Chapter
... A market interest rate that is above the equilibrium interest rate will fall until the equilibrium interest rate is reached. A market interest rate that is below the equilibrium interest rate will rise until the equilibrium interest rate is reached. The key to understanding interest rate changes ...
... A market interest rate that is above the equilibrium interest rate will fall until the equilibrium interest rate is reached. A market interest rate that is below the equilibrium interest rate will rise until the equilibrium interest rate is reached. The key to understanding interest rate changes ...
Chapter 10
... The lower the real interest rate, the lower is the amount of interest earnings forgone when income is spent on consumption instead of saved. Therefore the opportunity cost of consumption is low, and individuals will choose to spend more on consumption and supply less saving. ...
... The lower the real interest rate, the lower is the amount of interest earnings forgone when income is spent on consumption instead of saved. Therefore the opportunity cost of consumption is low, and individuals will choose to spend more on consumption and supply less saving. ...
NEER WORKING PAPER SERIES INTERNATI)NAL COORDINATION OF ECONOMIC POLICIES: METHODS, AND EFFECTS
... of themselves, i.e., they are public goods (in contrast, the market signals that resolve supply/demand inconsistencies in the competitive that is accepted, there is model, are not regarded as public goods). If and an open ...
... of themselves, i.e., they are public goods (in contrast, the market signals that resolve supply/demand inconsistencies in the competitive that is accepted, there is model, are not regarded as public goods). If and an open ...
Ecs1028 (1) - gimmenotes
... In a monetary economy the prices of all goods and services are expressed in monetary terms. Money is not, however, the only possible unit of account. Any other commodity or product can serve as a unit of account. Money is only the most convenient unit of account. Money as a store of value In any soc ...
... In a monetary economy the prices of all goods and services are expressed in monetary terms. Money is not, however, the only possible unit of account. Any other commodity or product can serve as a unit of account. Money is only the most convenient unit of account. Money as a store of value In any soc ...
1990:1-1999:4 - Amherst College
... responses to inflation are all below 1, but Mishkin (2002) has argued that this could be due to the measurement error of using past inflation instead of inflationary expectations which is what in fact the central bank is responding to.4 Thus, as with the US, the data suggest that the conduct of mone ...
... responses to inflation are all below 1, but Mishkin (2002) has argued that this could be due to the measurement error of using past inflation instead of inflationary expectations which is what in fact the central bank is responding to.4 Thus, as with the US, the data suggest that the conduct of mone ...
MONETARY POLICY AND THE ECONOMY First
... On examining the structure of the Fed, you might naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practic ...
... On examining the structure of the Fed, you might naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practic ...
CHF Strength and Swiss Export Performance – Evidence and
... higher the total volume of Swiss exports would have been if all bilateral exchange rates had remained at their October 2005 level. For example, on that date, the CHF/euro exchange rate was 1.544. We predict our earlier models using this scenario and we also take into account that our sample in the p ...
... higher the total volume of Swiss exports would have been if all bilateral exchange rates had remained at their October 2005 level. For example, on that date, the CHF/euro exchange rate was 1.544. We predict our earlier models using this scenario and we also take into account that our sample in the p ...
MONETARY POLICY AND THE ECONOMY First
... On examining the structure of the Fed, you might naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practic ...
... On examining the structure of the Fed, you might naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practic ...
Capital Controls in Brazil: Effective? by Marcos Chamon (IMF) and
... could fall in the non-taxed subset it would not incur the IOF tax. Therefore, foreign investors wanting to do carry trade could buy Non-Deliverable Forward Brazilian reals in offshore markets (where they are beyond the reach of the inflow tax), and the banks could take an offsetting position in Braz ...
... could fall in the non-taxed subset it would not incur the IOF tax. Therefore, foreign investors wanting to do carry trade could buy Non-Deliverable Forward Brazilian reals in offshore markets (where they are beyond the reach of the inflow tax), and the banks could take an offsetting position in Braz ...
Sawyer/Sprinkle Chapter 18
... domestic currency to depreciate as the government increases taxes and/or reduces spending—the direct effect The contractionary fiscal policy increases aggregate demand as the currency depreciates and the current account balance to improve—the indirect effect A contractionary fiscal policy in an open ...
... domestic currency to depreciate as the government increases taxes and/or reduces spending—the direct effect The contractionary fiscal policy increases aggregate demand as the currency depreciates and the current account balance to improve—the indirect effect A contractionary fiscal policy in an open ...
Determinants of demand for international tourist flows to Turkey
... The effect of relative prices has also been suggested as an important variable in explaining international tourism flows.’ This suggests that tourists are likely to react when there is a change in the ratio between prices in the exporting country relative to prices in the receiving country or prices ...
... The effect of relative prices has also been suggested as an important variable in explaining international tourism flows.’ This suggests that tourists are likely to react when there is a change in the ratio between prices in the exporting country relative to prices in the receiving country or prices ...
This PDF is a selection from a published volume from... Economic Research
... In the first part of this paper, we investigate what impacts an increased aversion to liquidity risk can have on current account and the other macroeconomic variables in a simple open economy model. In the model, each representative agent maximizes the utility function over time. Since Obstfeld and ...
... In the first part of this paper, we investigate what impacts an increased aversion to liquidity risk can have on current account and the other macroeconomic variables in a simple open economy model. In the model, each representative agent maximizes the utility function over time. Since Obstfeld and ...
FINALTERM EXAMINATION Fall 2009 ECO401
... ► The value of federal securities it is required to have as reserves against loans. ► Deposits that bank has accepted from customers but have not loaned out. Question No: 43 ( Marks: 1 ) - Please choose one The special importance of banks among the financial institutions arises from: ► Their large a ...
... ► The value of federal securities it is required to have as reserves against loans. ► Deposits that bank has accepted from customers but have not loaned out. Question No: 43 ( Marks: 1 ) - Please choose one The special importance of banks among the financial institutions arises from: ► Their large a ...
The Nixon Shock after 40 Years
... Another potential solution was an exchange rate adjustment. This was not an option that the United States could exercise on its own. Because the dollar was the world’s reserve currency and the anchor of the international monetary system, other countries could revalue or devalue their currencies agai ...
... Another potential solution was an exchange rate adjustment. This was not an option that the United States could exercise on its own. Because the dollar was the world’s reserve currency and the anchor of the international monetary system, other countries could revalue or devalue their currencies agai ...
LCmexL426_en.pdf
... loosening balance-of-paym ents constraints and prom oting high em ploym ent levels. W ithin this strategy, the prom otion o f national and foreign investm ent became a national priority.3 The initial results w ere impressive. The economy registered on average a 12% rate of growth between 1970 and 19 ...
... loosening balance-of-paym ents constraints and prom oting high em ploym ent levels. W ithin this strategy, the prom otion o f national and foreign investm ent became a national priority.3 The initial results w ere impressive. The economy registered on average a 12% rate of growth between 1970 and 19 ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... 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. ...
A Melton William and
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
... Three aspects of interest rate behavior are considered here. These are the volatility of interest rates, the response of interest rates to weekly MI announcements, and the response of interest rates to new information about inflation, economic activity, and exchange rates. Differences in the volatil ...
5 Chartalism and the tax-driven approach to money
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
The transmission of US shocks to Latin America
... are accompanied by capital inflows, price increases, depreciation of the real exchange rate and improvements in the trade balance. Increases in aggregate demand following capital flows then produce a delayed and significant positive output effect. Third, US disturbances account for an important port ...
... are accompanied by capital inflows, price increases, depreciation of the real exchange rate and improvements in the trade balance. Increases in aggregate demand following capital flows then produce a delayed and significant positive output effect. Third, US disturbances account for an important port ...
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.