problems and solutions revized
... cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indices? Problem 2.8: Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a ...
... cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indices? Problem 2.8: Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a ...
11
Financial
Contagion:
The
Impact
of
Global
Disasters
Jory
Fong
... Definition 5: (Shift-) contagion occurs when the transmission channel intensifies or, more generally, changes after a shock in one market. The international transmission mechanism may strengthen in response to a crisis in one country. For instance, some channels of transmission might be active only ...
... Definition 5: (Shift-) contagion occurs when the transmission channel intensifies or, more generally, changes after a shock in one market. The international transmission mechanism may strengthen in response to a crisis in one country. For instance, some channels of transmission might be active only ...
Gold in a multicurrency reserve system
... second-largest economy and its largest exporter, China has also become an increasingly important player in global financial markets. Although China’s financial development still lags its economic development (Chart 3; the RMB is not freely convertible into other currencies and the Chinese financial ...
... second-largest economy and its largest exporter, China has also become an increasingly important player in global financial markets. Although China’s financial development still lags its economic development (Chart 3; the RMB is not freely convertible into other currencies and the Chinese financial ...
External Monetary Shocks to Central and Eastern European
... rate, allows to understand endogenous phenomena. An expansionary monetary policy induces an economic boom elsewhere; the increase of exports and imports is possible through the world capital market channel. Calvo et al. (1993) analysed the impact of a US monetary shock to Latin America countries. Th ...
... rate, allows to understand endogenous phenomena. An expansionary monetary policy induces an economic boom elsewhere; the increase of exports and imports is possible through the world capital market channel. Calvo et al. (1993) analysed the impact of a US monetary shock to Latin America countries. Th ...
East African Community: Pre-conditions for an Effective Monetary
... they are probably culturally much more similar than the EMU countries. Table 1. Indicators of economic structure ...
... they are probably culturally much more similar than the EMU countries. Table 1. Indicators of economic structure ...
References - ACS - United Nations Economic Commission for Africa
... all the institutions were optimistic except UNDESA, while forecasts were pessimistic when it comes to country’s exchange rate. Conclusion This note is aimed at assessing the accuracy of the macroeconomic forecasts provided by selected international and national institutions using Morocco as a case s ...
... all the institutions were optimistic except UNDESA, while forecasts were pessimistic when it comes to country’s exchange rate. Conclusion This note is aimed at assessing the accuracy of the macroeconomic forecasts provided by selected international and national institutions using Morocco as a case s ...
Uncollateralized Overnight Loans Settled in LVTS
... their own clients (i.e. term deposit receipts) since these loans are not settled through LVTS. Overnight financing instruments that require an exchange of securities (i.e. repos) are not captured in our data because these transactions are cleared through a separate system operated by the Canadian De ...
... their own clients (i.e. term deposit receipts) since these loans are not settled through LVTS. Overnight financing instruments that require an exchange of securities (i.e. repos) are not captured in our data because these transactions are cleared through a separate system operated by the Canadian De ...
NBER WORKING PAPER SERIES Richard Clarida Daniel Waldman
... Before we proceed further, it will be useful to review some of the results from a model of optimal monetary policy and exchange rate determination in the open economy developed in Clarida-Gali-Gertler (2002). ...
... Before we proceed further, it will be useful to review some of the results from a model of optimal monetary policy and exchange rate determination in the open economy developed in Clarida-Gali-Gertler (2002). ...
Exercise 6 (+additional question) in Mankiw:
... cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indices? Problem 2.8: Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a ...
... cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indices? Problem 2.8: Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a ...
Estimating Trade Elasticities for World Capital Goods Exports
... import price index from the U.S. Bureau of Labor Statistics (BLS). As a robustness check they are also deflated using the capital goods export price index obtained from the BLS. Data on the real exchange rate between the exporting and importing countries and real income are obtained from the CEPII- ...
... import price index from the U.S. Bureau of Labor Statistics (BLS). As a robustness check they are also deflated using the capital goods export price index obtained from the BLS. Data on the real exchange rate between the exporting and importing countries and real income are obtained from the CEPII- ...
The U.S. Economy in the 1990s: A Neoliberal Success Story?
... A process of neoliberal restructuring has been going on in many parts of the world in recent decades. The belief that domestic and international liberalization, privatization, and cutbacks in public spending are the route to economic success is firmly lodged, despite the absence of supporting eviden ...
... A process of neoliberal restructuring has been going on in many parts of the world in recent decades. The belief that domestic and international liberalization, privatization, and cutbacks in public spending are the route to economic success is firmly lodged, despite the absence of supporting eviden ...
Chapter 7 The Asset Market, Money, and Prices
... Why is per-capita U.S. currency demand so large? Who is holding large amounts of U.S. currency and why are they doing so? Should U.S. policymakers be concerned about this? Why? Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political ...
... Why is per-capita U.S. currency demand so large? Who is holding large amounts of U.S. currency and why are they doing so? Should U.S. policymakers be concerned about this? Why? Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political ...
View/Open
... Poland in 1990, and two years later in Bulgaria and Romania. In most cases, privatization was introduced in l)hases with the sale or outright grants of smaller enterprises and/or housing. In the latter stages, medium- and large-scale enterprises and large-scale farms and agribusinesses were to be pr ...
... Poland in 1990, and two years later in Bulgaria and Romania. In most cases, privatization was introduced in l)hases with the sale or outright grants of smaller enterprises and/or housing. In the latter stages, medium- and large-scale enterprises and large-scale farms and agribusinesses were to be pr ...
eui working papers - Cadmus - European University Institute
... assumed to be unconcerned about whether the currency they demand is fundamentally undervalued or overvalued. On the other hand, ’informed traders’ can act either as buyers or sellers, depending on their opinion about the intrinsic value of the security and–given the uncoordinated and decentralized t ...
... assumed to be unconcerned about whether the currency they demand is fundamentally undervalued or overvalued. On the other hand, ’informed traders’ can act either as buyers or sellers, depending on their opinion about the intrinsic value of the security and–given the uncoordinated and decentralized t ...
Initiative for Policy Dialogue Working Paper Series Resilience
... their presence at a particular asset category at any point in time.3 Third, we use an instrumental variables-2SLS approach to control for the endogeneity bias, i.e. countries may increase the use of CARs in response to an increase in capital inflows or outflows, which has been a key factor that bias ...
... their presence at a particular asset category at any point in time.3 Third, we use an instrumental variables-2SLS approach to control for the endogeneity bias, i.e. countries may increase the use of CARs in response to an increase in capital inflows or outflows, which has been a key factor that bias ...
Labor Market Equilibrium and the FE curve
... • Given a fixed supply of real balances (M/P) each interest rate will have a corresponding level of output so that money demand equals money supply ( M/P = k*Y) • Suppose interest rates fall. How is the equilibrium affected? – Real Money Supply is assumed to be fixed – Money demand will, however, ri ...
... • Given a fixed supply of real balances (M/P) each interest rate will have a corresponding level of output so that money demand equals money supply ( M/P = k*Y) • Suppose interest rates fall. How is the equilibrium affected? – Real Money Supply is assumed to be fixed – Money demand will, however, ri ...
A socioeconomics approach
... mostly used for transactions purposes, it can be linked to nominal GDP through the equation of exchange. If “real” GDP grows at a “natural rate” (determined by supply-side factors, such as technological advance and growth of inputs), and given stable velocity, then there will be a close relation be ...
... mostly used for transactions purposes, it can be linked to nominal GDP through the equation of exchange. If “real” GDP grows at a “natural rate” (determined by supply-side factors, such as technological advance and growth of inputs), and given stable velocity, then there will be a close relation be ...
Comments on Paul Davidson`s “Full Employment, Open Economy
... Davidson is a noted Post-Keynesian, which appears to mean that any contributions to Keynesian thought after Keynes are ignored or derided. Davidson rejects contributions to Keynesian thought by Hicks and Samuelson. We imagine he also has only scorn for Meade and Modigliani. The problem with this app ...
... Davidson is a noted Post-Keynesian, which appears to mean that any contributions to Keynesian thought after Keynes are ignored or derided. Davidson rejects contributions to Keynesian thought by Hicks and Samuelson. We imagine he also has only scorn for Meade and Modigliani. The problem with this app ...
Jeffrey Naoko Ishii McKibbin
... of high (but not infinite) asset substituability between Japanese and U.S. assets reflecting the recent move towards liberalization of Japanese financial markets. The importance of this assumption will be discussed further below. The mechanism of adjustment underlying our results is the familiar Mur ...
... of high (but not infinite) asset substituability between Japanese and U.S. assets reflecting the recent move towards liberalization of Japanese financial markets. The importance of this assumption will be discussed further below. The mechanism of adjustment underlying our results is the familiar Mur ...
Economic growth, trade balance and balance-of - FGV-EESP
... Similar empirical results obtained for the United States over the postwar period can also be observed for the United Kingdom case, when the growth rates of both countries were close to their balance-of-payments equilibrium growth rates. “The evidence suggests that Japan, on the other hand, grew more ...
... Similar empirical results obtained for the United States over the postwar period can also be observed for the United Kingdom case, when the growth rates of both countries were close to their balance-of-payments equilibrium growth rates. “The evidence suggests that Japan, on the other hand, grew more ...
balance of payments
... be paid which will be a short term drain on the economy and will further increase the CAD. However, if interest rates are lower in other countries it could be a smart move to borrow from overseas. BUT.. There is always the danger that the governments or people lending the money may, at some time, wi ...
... be paid which will be a short term drain on the economy and will further increase the CAD. However, if interest rates are lower in other countries it could be a smart move to borrow from overseas. BUT.. There is always the danger that the governments or people lending the money may, at some time, wi ...
Overview - OECD.org
... These PPPs have been calculated specifically to enable international price and volume comparisons to be made for GDP. They refer to the entire range of goods and services which make up GDP – both domestically produced and imported - and include many items that are not traded internationally. In addi ...
... These PPPs have been calculated specifically to enable international price and volume comparisons to be made for GDP. They refer to the entire range of goods and services which make up GDP – both domestically produced and imported - and include many items that are not traded internationally. In addi ...
Concepts of equilibrium exchange rates
... different people. For some, the concept is clearly a long-run one. For others, even short-run movements in exchange rates may represent equilibrium behaviour. So pinning down exactly what people mean when they use the term equilibrium exchange rate may therefore be important for understanding how to ...
... different people. For some, the concept is clearly a long-run one. For others, even short-run movements in exchange rates may represent equilibrium behaviour. So pinning down exactly what people mean when they use the term equilibrium exchange rate may therefore be important for understanding how to ...
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.