PART V - Georgia College & State University
... The underlying assets: stocks, bonds, interest rates, foreign exchanges, index, commodities, some derivatives, etc. ...
... The underlying assets: stocks, bonds, interest rates, foreign exchanges, index, commodities, some derivatives, etc. ...
FX Options and Structured Products
... client perspective. It contains actually traded deals with corresponding motivations explaining why the structures have been traded. This way the reader gets a feeling how to build new structures to suit clients’ needs. The exercises are meant to practice the material. Several of them are actually d ...
... client perspective. It contains actually traded deals with corresponding motivations explaining why the structures have been traded. This way the reader gets a feeling how to build new structures to suit clients’ needs. The exercises are meant to practice the material. Several of them are actually d ...
Key Review Questions for ECO 2030 final exam
... As a result of this course, students should gain proficiency in each of the following areas: Be able to use the demand and supply graph to predict equilibrium price and quantity, and their changes over time. Discuss the basic institutions of a free-market system. Explain the concept of GDP, how it ...
... As a result of this course, students should gain proficiency in each of the following areas: Be able to use the demand and supply graph to predict equilibrium price and quantity, and their changes over time. Discuss the basic institutions of a free-market system. Explain the concept of GDP, how it ...
NBER WORKING PAPER SERIES INTERNATIONAL TRADE AND MACROECONOMIC DYNAMICS WITH HETEROGENEOUS FIRMS
... generate persistent deviations in sector-level prices. Although we do not explicitly model multiple sectors, our framework nevertheless highlights the micro-level characteristics of sectors (the level of product differentiation, firm entry and exit rates, levels of sunk costs and trade costs) that wo ...
... generate persistent deviations in sector-level prices. Although we do not explicitly model multiple sectors, our framework nevertheless highlights the micro-level characteristics of sectors (the level of product differentiation, firm entry and exit rates, levels of sunk costs and trade costs) that wo ...
NBER WORKING PAPER SERIES SUDDEN STOPS, FINANCIAL CRISES AND ORIGINAL
... The pattern of sudden stops in capital flows to emerging market countries in the 1990s and early 2000s has great resonance to events in the first era of globalization between 1880-1914, especially the events in the late 1880s and early 1890s. In those years many emerging countries were beset by a dr ...
... The pattern of sudden stops in capital flows to emerging market countries in the 1990s and early 2000s has great resonance to events in the first era of globalization between 1880-1914, especially the events in the late 1880s and early 1890s. In those years many emerging countries were beset by a dr ...
The Analytics of the New Keynesian 3
... selling price with discontinuities (i.e. nominal rigidities – they cannot modify their selling price at any point in time). Thus they set the selling price of their product depending on three main criteria. (i) The first criterion is anticipated inflation: as firms cannot re-optimize their price, th ...
... selling price with discontinuities (i.e. nominal rigidities – they cannot modify their selling price at any point in time). Thus they set the selling price of their product depending on three main criteria. (i) The first criterion is anticipated inflation: as firms cannot re-optimize their price, th ...
central bank interventions, communication and interest rate policy in
... The empirical literature on the effectiveness of – mostly sterilized – foreign exchange (FX) interventions in developed market economies remains fairly mixed despite the recent emergence of some more supportive evidence.1 In this context, Canales-Kirjenko (2003) argues that foreign exchange interven ...
... The empirical literature on the effectiveness of – mostly sterilized – foreign exchange (FX) interventions in developed market economies remains fairly mixed despite the recent emergence of some more supportive evidence.1 In this context, Canales-Kirjenko (2003) argues that foreign exchange interven ...
the aggregate demand – aggregate supply model
... the behavior of two macroeconomic aggregates, real output or income and the inflation rate, explicitly, and one, the unemployment rate, implicitly. Note that in macroeconomics, the amount of domestically produced final goods and services or real output is equal to real income. This is measured by re ...
... the behavior of two macroeconomic aggregates, real output or income and the inflation rate, explicitly, and one, the unemployment rate, implicitly. Note that in macroeconomics, the amount of domestically produced final goods and services or real output is equal to real income. This is measured by re ...
2001:3 The International Monetary Fund´s quotas
... cy – a form of committed credit line to the IMF. This constitutes the remaining obligation fulfilled by the member country in contributing its currency. As the need for reserves increased, opportunities were introduced for member countries to buy currency in excessive of 25 per cent of their quota ...
... cy – a form of committed credit line to the IMF. This constitutes the remaining obligation fulfilled by the member country in contributing its currency. As the need for reserves increased, opportunities were introduced for member countries to buy currency in excessive of 25 per cent of their quota ...
Gold standard, deflation and depression: The
... The Great Depression of the 1930s was the most serious economic crisis of the 20th century. The USA and Germany were the two epicentres, but no country integrated into the global economy was spared. In Switzerland, industrial production fell by 20 % between 1929 and 1932 and, other than in 1937 and ...
... The Great Depression of the 1930s was the most serious economic crisis of the 20th century. The USA and Germany were the two epicentres, but no country integrated into the global economy was spared. In Switzerland, industrial production fell by 20 % between 1929 and 1932 and, other than in 1937 and ...
Tilburg University Stability of Monetary Unions
... prices and mitigate adverse effects of the shocks. However, if these two countries use the same currency, country-specific monetary policy measures are no longer possible, and thus adjustment is more costly than in the previous case. This implies that if two regions are exposed to asymmetric shocks, ...
... prices and mitigate adverse effects of the shocks. However, if these two countries use the same currency, country-specific monetary policy measures are no longer possible, and thus adjustment is more costly than in the previous case. This implies that if two regions are exposed to asymmetric shocks, ...
Exchange rate anomalies in the industrial countries: A solution with
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
... monetary policy on exchange rates. Previous work, using an &unrestricted VAR' approach, provided evidence of an exchange rate puzzle (Grilli and Roubini, 1995) and a &delayed overshooting' (Eichenbaum and Evans, 1995; Grilli and Roubini, 1995). While the unrestricted VAR approach with measures of ex ...
Can Foreign Exchange Intervention Stem Exchange Rate Pressures
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
NBER WORKING PAPER SERIES A THEORY AND EVIDENCE FROM EAST ASIA
... aversion to liquidity risk. However, the latter change is consistent with the case where the government also started to respond and accumulated substantial foreign exchange reserves. Since macroeconomic impacts of the increased liquidity risk aversion depend on which strategy the East Asian economie ...
... aversion to liquidity risk. However, the latter change is consistent with the case where the government also started to respond and accumulated substantial foreign exchange reserves. Since macroeconomic impacts of the increased liquidity risk aversion depend on which strategy the East Asian economie ...
Market Makers
... 614D. A Market Maker wishing to conduct Options Hedging Short Selling shall notify the Exchange of its intention. A Market Maker may also apply to the Exchange to register one or more Exchange Participants as its Options Hedging Participants which will conduct on its behalf Options Hedging Transact ...
... 614D. A Market Maker wishing to conduct Options Hedging Short Selling shall notify the Exchange of its intention. A Market Maker may also apply to the Exchange to register one or more Exchange Participants as its Options Hedging Participants which will conduct on its behalf Options Hedging Transact ...
Chronic Deflation in Japan - Faculty of Business and Economics
... decline in prices was desirable because it was due to supply-side factors such as technological innovation and cheap imports---see the argument of “norm” below. The central bank's communication strategy may also have mattered. Appendix 1 summarizes how the BoJ has communicated its thinking on price ...
... decline in prices was desirable because it was due to supply-side factors such as technological innovation and cheap imports---see the argument of “norm” below. The central bank's communication strategy may also have mattered. Appendix 1 summarizes how the BoJ has communicated its thinking on price ...
Expected questions for Board Examination 2015
... Explain with the help of diagram the situation of underemployment equilibrium. UNIT- 9 GOVERNMENT BUDGET AND THE ECONOMY (8 MARKS) Q67. Define government budget. State its objectives. Q68. Distinguish between revenue receipts and capital receipts in a government budget. Give 3 examples of each. Q69. ...
... Explain with the help of diagram the situation of underemployment equilibrium. UNIT- 9 GOVERNMENT BUDGET AND THE ECONOMY (8 MARKS) Q67. Define government budget. State its objectives. Q68. Distinguish between revenue receipts and capital receipts in a government budget. Give 3 examples of each. Q69. ...
Design and Implementation of a Common Currency Area in the East
... synchronization has increased since 2000, when the EAC treaty came into force. Debrun, Masson, and Pattillo (2010) go beyond to the traditional approaches to develop a full-fledged cost-benefit analysis of monetary integration, calibrated to African data. They apply it to some actual and proposed cu ...
... synchronization has increased since 2000, when the EAC treaty came into force. Debrun, Masson, and Pattillo (2010) go beyond to the traditional approaches to develop a full-fledged cost-benefit analysis of monetary integration, calibrated to African data. They apply it to some actual and proposed cu ...
This PDF is a selection from a published volume from... Economic Research Volume Title: Europe and the Euro
... understate the benefits for a country of monetary policy autonomy. For it is certainly not the case that the benefits of monetary autonomy are absent if the exchange rate is driven by nonfundamental factors. Irrespective of what factors drive the exchange rate, a floating rate confers on the central ...
... understate the benefits for a country of monetary policy autonomy. For it is certainly not the case that the benefits of monetary autonomy are absent if the exchange rate is driven by nonfundamental factors. Irrespective of what factors drive the exchange rate, a floating rate confers on the central ...
Global Macro Risks in Currency Excess Returns
... the United States. Countries that adopt the Euro are dropped when they join the common currency. The data set consists of exchange rates, interest rates, consumption, gross domestic product (GDP), unemployment rates, and the consumer price index (CPI). Details are elaborated below. The data are not ...
... the United States. Countries that adopt the Euro are dropped when they join the common currency. The data set consists of exchange rates, interest rates, consumption, gross domestic product (GDP), unemployment rates, and the consumer price index (CPI). Details are elaborated below. The data are not ...
AP Macroeconomics Chapter One p. 3-10
... • Choice is reflected in the need for society to select among the various attainable combinations lying on the curve. • The concave shape of the curve implies the notion of opportunity costs, defined as some amount of one good must be sacrificed to obtain more of the other. The amount of robots whic ...
... • Choice is reflected in the need for society to select among the various attainable combinations lying on the curve. • The concave shape of the curve implies the notion of opportunity costs, defined as some amount of one good must be sacrificed to obtain more of the other. The amount of robots whic ...
32.1 the short-run phillips curve
... 32.2 SHORT-RUN AND LONG-RUN ... But if aggregate demand increases to AD2 and aggregate supply changes to AS2, the price level rises by 7 percent to 107. In both cases, real GDP remains at $10 trillion, and because the economy is at full employment, unemployment remains at the natural unemployment r ...
... 32.2 SHORT-RUN AND LONG-RUN ... But if aggregate demand increases to AD2 and aggregate supply changes to AS2, the price level rises by 7 percent to 107. In both cases, real GDP remains at $10 trillion, and because the economy is at full employment, unemployment remains at the natural unemployment r ...
The Impact of Foreign Interest Rates on the Economy
... Specifically, base-country interest rates that are 1 percentage point higher lead to a 0.20 percentage point decline in annual GDP growth in pegged countries as opposed to no change in countries with floats. Turning to the channels underlying this result, we find that base rates have an impact on d ...
... Specifically, base-country interest rates that are 1 percentage point higher lead to a 0.20 percentage point decline in annual GDP growth in pegged countries as opposed to no change in countries with floats. Turning to the channels underlying this result, we find that base rates have an impact on d ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) 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.