The Effects of Exchange Rate Regimes on Real Exchange
... In this way, good and bad volatility of the nominal and real exchange rate (Helpman y Razin, 1982; Neumeyer, 1998) could be distinguished. Taking extreme positions, good volatility is the one associated with adjustments to the NER, which contribute to draw the country near to the equilibrium RER aft ...
... In this way, good and bad volatility of the nominal and real exchange rate (Helpman y Razin, 1982; Neumeyer, 1998) could be distinguished. Taking extreme positions, good volatility is the one associated with adjustments to the NER, which contribute to draw the country near to the equilibrium RER aft ...
355 K - National Bureau of Economic Research
... Swedish and euro area business cycles, and thus the possible consequences for Sweden of joining the monetary union, and to compare with other European countries that have chosen different strategies in their relationship with the EU and the EMU. I thus compare Swedish data with those of the euro area ...
... Swedish and euro area business cycles, and thus the possible consequences for Sweden of joining the monetary union, and to compare with other European countries that have chosen different strategies in their relationship with the EU and the EMU. I thus compare Swedish data with those of the euro area ...
Measuring inflation under rationing: A virtual price approach - Hal-SHS
... with highly autarkic model of the Soviet economy. The period of seventies is known for its global economy specificity essentially because of the petrol shocks and their consequences. Both market and planned economies were concerned by inflationist tensions created by petrol price dramatic increase a ...
... with highly autarkic model of the Soviet economy. The period of seventies is known for its global economy specificity essentially because of the petrol shocks and their consequences. Both market and planned economies were concerned by inflationist tensions created by petrol price dramatic increase a ...
Chap_22
... balance of payment crisis may result along with a debt crisis. – Official international reserves may quickly be depleted because governments and private institutions need to pay for their debts with foreign funds, forcing the central bank to abandon the fixed exchange rate. ...
... balance of payment crisis may result along with a debt crisis. – Official international reserves may quickly be depleted because governments and private institutions need to pay for their debts with foreign funds, forcing the central bank to abandon the fixed exchange rate. ...
Document
... interest rate leads to a decrease in output. This is represented by the IS curve. Equilibrium in financial markets implies that an increase in output leads to an increase in the interest rate. This is represented by the LM curve. Only at point A, which is on both curves, are both goods and financial ...
... interest rate leads to a decrease in output. This is represented by the IS curve. Equilibrium in financial markets implies that an increase in output leads to an increase in the interest rate. This is represented by the LM curve. Only at point A, which is on both curves, are both goods and financial ...
13.1 money and the interest rate
... 2. If the interest rate is 4 percent a year, the quantity of money held is less than the quantity demanded. People sell bonds, the price of a bond falls, and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 perce ...
... 2. If the interest rate is 4 percent a year, the quantity of money held is less than the quantity demanded. People sell bonds, the price of a bond falls, and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 perce ...
Ageing and fiscal sustainability in a small euro area economy
... Population ageing will emerge as a key trend in Western economies over the next decades. Its impacts in economic and social developments will be of utmost importance in the near future. Population ageing will contribute to a reshaping of the labour force. However, it will also lead to an increase in ...
... Population ageing will emerge as a key trend in Western economies over the next decades. Its impacts in economic and social developments will be of utmost importance in the near future. Population ageing will contribute to a reshaping of the labour force. However, it will also lead to an increase in ...
03B - Department Of Economics
... (c) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread. (d) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread. 5. The opportunity cost of 1 unit of cheese for Spain is ANSWER: a (challenging) ( ...
... (c) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread. (d) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread. 5. The opportunity cost of 1 unit of cheese for Spain is ANSWER: a (challenging) ( ...
External Adjustment in Oil Exporters
... For the past decade, oil exporters enjoyed large current account surpluses, raising questions at the time about whether these are too big from a normative point of view and from the perspective of global imbalances (Beidas Strom and Cashin, 2011; Arezki and Hasanov, 2013). However, after almost four ...
... For the past decade, oil exporters enjoyed large current account surpluses, raising questions at the time about whether these are too big from a normative point of view and from the perspective of global imbalances (Beidas Strom and Cashin, 2011; Arezki and Hasanov, 2013). However, after almost four ...
dealing with foreign exchange
... Such actions (sterilisation) counterbalance its impact on domestic interest rates and inflation. Central banks generally invest FX reserves in short-term securities, predominantly in US Treasury securities and its agency bonds that offer very low returns. ...
... Such actions (sterilisation) counterbalance its impact on domestic interest rates and inflation. Central banks generally invest FX reserves in short-term securities, predominantly in US Treasury securities and its agency bonds that offer very low returns. ...
Bond Market Development in Developing Asia
... say irrelevant. Many doubted that local bond markets in EMEs would ever develop. One aspect of this thinking was the “original sin” hypothesis, which, in its strongest form, suggests that EMEs would forever have small, inconsequential bond markets.1 The proposition is that small economies have an in ...
... say irrelevant. Many doubted that local bond markets in EMEs would ever develop. One aspect of this thinking was the “original sin” hypothesis, which, in its strongest form, suggests that EMEs would forever have small, inconsequential bond markets.1 The proposition is that small economies have an in ...
Business Fluctuations: Aggregate Demand and Supply Business
... An Increase in Aggregate Demand Workers initially mistake the nominal wage increase for a real increase. Prices also don’t move instantly because it is costly to change prices (“menu costs”). Firms may also hold off on price changes because they are not sure whether the change in market conditions ...
... An Increase in Aggregate Demand Workers initially mistake the nominal wage increase for a real increase. Prices also don’t move instantly because it is costly to change prices (“menu costs”). Firms may also hold off on price changes because they are not sure whether the change in market conditions ...
Chapter X: template (1 - The Good, the Bad and the Economist
... Vulnerable groups such as pensioners, households dependent on social security benefits, stand to lose a great deal when inflation rates are high since they are often on fixed incomes. Even if these incomes are indexed to inflation rates, there will be time lags which will have adverse effects on pur ...
... Vulnerable groups such as pensioners, households dependent on social security benefits, stand to lose a great deal when inflation rates are high since they are often on fixed incomes. Even if these incomes are indexed to inflation rates, there will be time lags which will have adverse effects on pur ...
Chapter 14
... An Increase in Aggregate Demand Workers initially mistake the nominal wage increase for a real increase. Prices also don’t move instantly because it is costly to change prices (“menu costs”). Firms may also hold off on price changes because they are not sure whether the change in market condi ...
... An Increase in Aggregate Demand Workers initially mistake the nominal wage increase for a real increase. Prices also don’t move instantly because it is costly to change prices (“menu costs”). Firms may also hold off on price changes because they are not sure whether the change in market condi ...
2) The misery index in 1980 exceeded 25.
... 1. Locate this change in conditions as point B on the production function you drew in part 1b above. 2. (10 points for correct and completely labeled diagram with points A, B, C, and D) Now construct a supply curve as we did in lecture with point A representing the original price – output combinati ...
... 1. Locate this change in conditions as point B on the production function you drew in part 1b above. 2. (10 points for correct and completely labeled diagram with points A, B, C, and D) Now construct a supply curve as we did in lecture with point A representing the original price – output combinati ...
Chapter 21 The IS
... Let M denote the money stock (in the implied broad sense), held by the nonbank public at a given date. That is, in addition to currency in circulation, the bank-created money in the form of liquid deposits in commercial banks is included in M: We may thereby think of M as representing what is in the ...
... Let M denote the money stock (in the implied broad sense), held by the nonbank public at a given date. That is, in addition to currency in circulation, the bank-created money in the form of liquid deposits in commercial banks is included in M: We may thereby think of M as representing what is in the ...
NBER WORKING PAPER SERIES DOLLARIZATION, INFLATION AND GROWTH Sebastian Edwards I. Igal Magendzo
... positive effects of dollarization on growth and overall macroeconomic performance. According to Eichengreen (2001) the evidence on the relationship between monetary regimes and growth is inconclusive, and does not support the claim that dollarization – or any exchange rate regime, for that matter – ...
... positive effects of dollarization on growth and overall macroeconomic performance. According to Eichengreen (2001) the evidence on the relationship between monetary regimes and growth is inconclusive, and does not support the claim that dollarization – or any exchange rate regime, for that matter – ...
Miller
... of the Exchange Rate on Net Exports In 2003, nominal interest rates in Switzerland were close to zero, as an expansionary monetary policy had been employed to combat a recession. The expansionary policy served also to depreciate the Swiss franc, which stimulated net exports. It was this open e ...
... of the Exchange Rate on Net Exports In 2003, nominal interest rates in Switzerland were close to zero, as an expansionary monetary policy had been employed to combat a recession. The expansionary policy served also to depreciate the Swiss franc, which stimulated net exports. It was this open e ...
NBER RKING PAPER SERIES
... financial assets on labor contracts. Because the focus of this paper is on the interaction of the money market and labor contracts, it applies to the Phillips curve the contracting specification (as used by Fischer and Gray), ...
... financial assets on labor contracts. Because the focus of this paper is on the interaction of the money market and labor contracts, it applies to the Phillips curve the contracting specification (as used by Fischer and Gray), ...
Trade Integration, Competition, and the Decline in
... goods to a consumption price index that excludes services.5 Using this series, it is apparent that real import prices and the real exchange rate in the 1980-2004 period have tended to move closely together, although movements in import prices tend to be dampened relative to the exchange rate. This ...
... goods to a consumption price index that excludes services.5 Using this series, it is apparent that real import prices and the real exchange rate in the 1980-2004 period have tended to move closely together, although movements in import prices tend to be dampened relative to the exchange rate. This ...
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... • continued rapid growth of domestic demand in key oil exporting countries; and • a series of substantial exchange rate changes, especially by countries that have not yet participated in the adjustment package. The Chinese renminbi needs to rise by about 30 percent against the dollar, over a period ...
... • continued rapid growth of domestic demand in key oil exporting countries; and • a series of substantial exchange rate changes, especially by countries that have not yet participated in the adjustment package. The Chinese renminbi needs to rise by about 30 percent against the dollar, over a period ...
Inflation Report 3/2000
... rose by a little less than 2% in the same period. Internationally, prices for industrial commodities, measured in USD, have risen by a little more than 3% since the June Inflation Report (see Chart 2.4). Prices are now at about the same level as at the beginning of the year. Food prices edged up the ...
... rose by a little less than 2% in the same period. Internationally, prices for industrial commodities, measured in USD, have risen by a little more than 3% since the June Inflation Report (see Chart 2.4). Prices are now at about the same level as at the beginning of the year. Food prices edged up the ...
Seminar Paper No. 740 AN ESTIMATED DSGE MODEL FOR SWEDEN
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
4 - Weber State University
... B) IS curve is negatively sloped. C) position of the IS curve depends on the level of real money balances. D) position of the LM curve depends on the level of real money balances. 3) If the interest rate were to rise, we expect that A) autonomous expenditures will rise. B) the supply of money will f ...
... B) IS curve is negatively sloped. C) position of the IS curve depends on the level of real money balances. D) position of the LM curve depends on the level of real money balances. 3) If the interest rate were to rise, we expect that A) autonomous expenditures will rise. B) the supply of money will f ...
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.