International Financial Integration* Philip R. Lane Institute for International Integration Studies
... -7One possible reason for this rise in international financial cross-holdings is the increase in international trade, which has also been substantial in recent decades. However, Figures 2.4 and 2.5 show clearly that the increase in financial openness dwarfs the increase in goods’ trade. Figure 4 sh ...
... -7One possible reason for this rise in international financial cross-holdings is the increase in international trade, which has also been substantial in recent decades. However, Figures 2.4 and 2.5 show clearly that the increase in financial openness dwarfs the increase in goods’ trade. Figure 4 sh ...
A Graceful Return of the Drachma
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... • The demand for money is the amount of liquid assets the society wishes to hold. • The amount of cash and checking account balances comprise the money demand. • Liquidity preference is the term used by Keynes for the demand for money. • The amount of money people want to hold will respond to real i ...
... • The demand for money is the amount of liquid assets the society wishes to hold. • The amount of cash and checking account balances comprise the money demand. • Liquidity preference is the term used by Keynes for the demand for money. • The amount of money people want to hold will respond to real i ...
Aggregate Demand
... investment spending, I, and consumer spending, C, through its effect on the purchasing power of money holdings • Interest rate effect of a change in the aggregate price level is the change in investment and consumer spending caused by altered interest rates that result from changes in the demand for ...
... investment spending, I, and consumer spending, C, through its effect on the purchasing power of money holdings • Interest rate effect of a change in the aggregate price level is the change in investment and consumer spending caused by altered interest rates that result from changes in the demand for ...
Can Open Economy Business Cycle Models Explain Business Cycle Facts?
... The asset market structure in the model is relatively standard and is described in detail in Benigno (2001) and Benigno and Thoenissen (2004). We assume that Home individuals are able to trade two nominal risk-less bonds denominated in the domestic and foreign currency. These bonds are issued by res ...
... The asset market structure in the model is relatively standard and is described in detail in Benigno (2001) and Benigno and Thoenissen (2004). We assume that Home individuals are able to trade two nominal risk-less bonds denominated in the domestic and foreign currency. These bonds are issued by res ...
III. Analysis of International Investment Positions
... -7One possible reason for this rise in international financial cross-holdings is the increase in international trade, which has also been substantial in recent decades. However, Figures 2.4 and 2.5 show clearly that the increase in financial openness dwarfs the increase in goods’ trade. Figure 4 sh ...
... -7One possible reason for this rise in international financial cross-holdings is the increase in international trade, which has also been substantial in recent decades. However, Figures 2.4 and 2.5 show clearly that the increase in financial openness dwarfs the increase in goods’ trade. Figure 4 sh ...
Winners and Losers from the euro
... countries not in the EMU (synthetic control ). The exact weights assigned to countries in the synthetic control are determined by an algorithm that minimizes the difference in the relevant economic characteristics between the chosen EMU’s member and its synthetic counterpart. The comparison of the e ...
... countries not in the EMU (synthetic control ). The exact weights assigned to countries in the synthetic control are determined by an algorithm that minimizes the difference in the relevant economic characteristics between the chosen EMU’s member and its synthetic counterpart. The comparison of the e ...
Market Distortions and Political Rent: The Case of Fertilizer Price
... into the capital intensive business of agro-dealership and distribution borrow at much higher commercial rates. In Senegal, for instance, the Senegalese National Bank for Agricultural Credit provides finance for importers at a subsidized rate of 12 percent visà-vis a commercial market rate of 16 per ...
... into the capital intensive business of agro-dealership and distribution borrow at much higher commercial rates. In Senegal, for instance, the Senegalese National Bank for Agricultural Credit provides finance for importers at a subsidized rate of 12 percent visà-vis a commercial market rate of 16 per ...
2 Digression on balance of payments accounting identities
... the monetary authorities are expected to shortly deplete an economy’s reserves since a possible depreciation might ceteris paribus reduce the rate of return expected by investors (IMF, 2008). This situation can result in a currency crisis in which a speculative attack precipitates a devaluation or a ...
... the monetary authorities are expected to shortly deplete an economy’s reserves since a possible depreciation might ceteris paribus reduce the rate of return expected by investors (IMF, 2008). This situation can result in a currency crisis in which a speculative attack precipitates a devaluation or a ...
CFO11e_ch29
... behave in the three market arenas—the goods market, the money market, and the labor market. We have seen how aggregate output (income), the interest rate, and the price level are determined in the economy, and we have examined the relationship between two of the most important macroeconomic variable ...
... behave in the three market arenas—the goods market, the money market, and the labor market. We have seen how aggregate output (income), the interest rate, and the price level are determined in the economy, and we have examined the relationship between two of the most important macroeconomic variable ...
NBER WORKING PAPER SERIES MONETARY POLICIES FOR DEVELOPING COUNTRIES: Haizhou Huang
... board, dollarization, and a Rogoff-type conservative central banker, and rank these monetary frameworks in terms of their social welfare. We also examine the authorities’ incentive in fighting corruption and improving fiscal capacity from a political economy perspective. Several interesting results e ...
... board, dollarization, and a Rogoff-type conservative central banker, and rank these monetary frameworks in terms of their social welfare. We also examine the authorities’ incentive in fighting corruption and improving fiscal capacity from a political economy perspective. Several interesting results e ...
ch05
... • If money supply < money demand – businesses and households want to hold larger money balances and try to borrow to increase their cash holdings – banks respond by raising interest rates – as the nominal interest rate rises, the quantity of money demanded falls – this process continues until the qu ...
... • If money supply < money demand – businesses and households want to hold larger money balances and try to borrow to increase their cash holdings – banks respond by raising interest rates – as the nominal interest rate rises, the quantity of money demanded falls – this process continues until the qu ...
... degree of success. This has given way to a more pragmatic strategy of enabling other actors to get involved in this sector. Ayogu (1995) records that Kenya‟s housing sector has evolved from being controlled by the government and its agencies as suppliers of housing to the current situation where co ...
Answer Key - Department Of Economics
... a. decreases in both the price level and real GDP. b. an increase in real GDP and an increase in the price level. c. a decrease in the price level but does not change real GDP. d. an increase in the price level but does not change real GDP. ANSWER: c 23. The sticky-wage theory of the short-run aggre ...
... a. decreases in both the price level and real GDP. b. an increase in real GDP and an increase in the price level. c. a decrease in the price level but does not change real GDP. d. an increase in the price level but does not change real GDP. ANSWER: c 23. The sticky-wage theory of the short-run aggre ...
NBER WORKING PAPER SERIES MONETARY POLICIES IN INTERDEPENDENT ECONOMIES WITH STOCHASTIC DISTURBANCES:
... perfectly flexible and perfectly fixed exchange rates. These represent the traditional regimes in both international macroeconomic theory and policy discus- ...
... perfectly flexible and perfectly fixed exchange rates. These represent the traditional regimes in both international macroeconomic theory and policy discus- ...
Chapter: Practice Exam for Macro Indicators Instruction:
... A) War in the Middle East, which can increase oil prices B) Drought in the Midwest, which can cause crop failures C) Suppliers who increase their profit margins by raising prices faster than their costs increase D) Increased government spending in the absence of increased taxes E) Labor unions, whic ...
... A) War in the Middle East, which can increase oil prices B) Drought in the Midwest, which can cause crop failures C) Suppliers who increase their profit margins by raising prices faster than their costs increase D) Increased government spending in the absence of increased taxes E) Labor unions, whic ...
ECONOMICS - University of Maryland, College Park
... Beginning at point A, an increase in the budget deficit caused by a tax cut shifts the demand for funds curve from Ip + (G − T1) to Ip + (G − T2). If the tax cut is entirely spent, consumption initially rises by the distance AH. At the original interest rate of 5 percent, the quantity of funds deman ...
... Beginning at point A, an increase in the budget deficit caused by a tax cut shifts the demand for funds curve from Ip + (G − T1) to Ip + (G − T2). If the tax cut is entirely spent, consumption initially rises by the distance AH. At the original interest rate of 5 percent, the quantity of funds deman ...
On The Persistence of Unemployment in The Caribbean: The Cases
... in the number of union members despite the strength of unions in some key sectors of the economy (ports, public services, utilities) (see Downes 2009,13). The number of people employed has been on the rise up to recently and so has the employment rate, at least in Jamaica and Trinidad and Tobago. No ...
... in the number of union members despite the strength of unions in some key sectors of the economy (ports, public services, utilities) (see Downes 2009,13). The number of people employed has been on the rise up to recently and so has the employment rate, at least in Jamaica and Trinidad and Tobago. No ...
The Money Supply and the Federal Reserve System
... currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely A) decrease the quantity of money demanded from $200 million to $100 million. B) increase the quantity of money demanded from $100 million to $200 million. C) increase the quantity of money demanded from ...
... currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely A) decrease the quantity of money demanded from $200 million to $100 million. B) increase the quantity of money demanded from $100 million to $200 million. C) increase the quantity of money demanded from ...
The IMF and the Brazilian Crisis
... be stuck trying to pay back for a very long time. 2. You will have to sell everything you own, fire all your employees and you will have to live in severe distress to pay your debt. In the global world of foreign investment the person with the several companies is the country and the big investors a ...
... be stuck trying to pay back for a very long time. 2. You will have to sell everything you own, fire all your employees and you will have to live in severe distress to pay your debt. In the global world of foreign investment the person with the several companies is the country and the big investors a ...
Zamac-pen05 450872 en
... Changes in the demographic structure has been the driving force for recent reforms of PAYG pension systems, particulary changes to the old age dependency ratio. Bohn (2001) investigates how the FR and the FC schemes differ in response to demographic changes. The effect on factor prices is accounted ...
... Changes in the demographic structure has been the driving force for recent reforms of PAYG pension systems, particulary changes to the old age dependency ratio. Bohn (2001) investigates how the FR and the FC schemes differ in response to demographic changes. The effect on factor prices is accounted ...
Document
... Measuring the rate of inflation Index The cost of today’s market basket of goods expressed as a percentage of the cost of the same market basket during a base year Market Basket Representative bundle of goods and services Base Year The point of reference for comparison of prices in other years ...
... Measuring the rate of inflation Index The cost of today’s market basket of goods expressed as a percentage of the cost of the same market basket during a base year Market Basket Representative bundle of goods and services Base Year The point of reference for comparison of prices in other years ...
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.