sovereign wealth funds: a developing country perspective
... The first has been emphasized by the literature on the “second Bretton Woods” (see Dooley, Folkerts-Landau and Garber, 2003). This school of thought contends that efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run ...
... The first has been emphasized by the literature on the “second Bretton Woods” (see Dooley, Folkerts-Landau and Garber, 2003). This school of thought contends that efforts by Asian countries to maintain or enhance export competitiveness in the context of an export-led growth model has led them to run ...
PPT
... Total cost = 56.00 As shown, the market basket which cost 50.00 in time period 0 costs 56.00 in time period 1. It is important to note that the index looks at the price of a market basket of goods, not just one good's price. In general form, to calculate the CPI in any given year, other than the bas ...
... Total cost = 56.00 As shown, the market basket which cost 50.00 in time period 0 costs 56.00 in time period 1. It is important to note that the index looks at the price of a market basket of goods, not just one good's price. In general form, to calculate the CPI in any given year, other than the bas ...
KW2_Ch08_FINAL
... 10. Inflation can produce winners and losers within the economy, because long-term contracts are generally written in dollar terms. Loans typically specify a nominal interest rate, which differs from the real interest rate due to inflation. A higher-than-expected inflation rate is good for borrowers ...
... 10. Inflation can produce winners and losers within the economy, because long-term contracts are generally written in dollar terms. Loans typically specify a nominal interest rate, which differs from the real interest rate due to inflation. A higher-than-expected inflation rate is good for borrowers ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS: AN INTEREST-RATE-BASED EXIT STRATEGY Stephanie Schmitt-Grohé
... stuck in a deflationary equilibrium like the one observed in Japan over the past two decades. The issue of whether deflation is harmful or beneficial to the economy is controversial. Some argue that deflation is desirable because it minimizes the opportunity cost of holding money. In turn, this argu ...
... stuck in a deflationary equilibrium like the one observed in Japan over the past two decades. The issue of whether deflation is harmful or beneficial to the economy is controversial. Some argue that deflation is desirable because it minimizes the opportunity cost of holding money. In turn, this argu ...
Can the Fed Stop Deflation?
... to banks. In shepherding reserve requirements down to zero, it has expended all the power of the first source. In 2001, the Fed lowered its discount rate from 6 percent to 1.25 percent, an unprecedented amount in such a short time. By doing so, it has expended much of the power residing in the secon ...
... to banks. In shepherding reserve requirements down to zero, it has expended all the power of the first source. In 2001, the Fed lowered its discount rate from 6 percent to 1.25 percent, an unprecedented amount in such a short time. By doing so, it has expended much of the power residing in the secon ...
War, Money, and Inflation in the United States from the Revolution to
... The means of creating new money will affect how easily the inflation is tied by the public to war finance. In the Revolution and the nineteenth century wars, as I will show below, the public saw new forms of currency in its pocket: Continental dollars during the Revolution, Treasury notes during th ...
... The means of creating new money will affect how easily the inflation is tied by the public to war finance. In the Revolution and the nineteenth century wars, as I will show below, the public saw new forms of currency in its pocket: Continental dollars during the Revolution, Treasury notes during th ...
the endowment effect: evidence of losses valued more than gains
... values. For the most part, little change in the asymmetric valuation of gains and losses has resulted from the repetitions. While a few tests have shown convergence of the gain and loss values over the repeated trials (for example, Shogren et al., 1994), these have occurred in experiments using some ...
... values. For the most part, little change in the asymmetric valuation of gains and losses has resulted from the repetitions. While a few tests have shown convergence of the gain and loss values over the repeated trials (for example, Shogren et al., 1994), these have occurred in experiments using some ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... Figure 2.2 shows the dynamics of the net foreign asset position.5 The deterioration in the U.S. net foreign asset position until 2002, in line with widening current account deficits, is remarkable, but so is the fact that during 2003 and 2004 U.S. net liabilities have actually declined when scaled b ...
... Figure 2.2 shows the dynamics of the net foreign asset position.5 The deterioration in the U.S. net foreign asset position until 2002, in line with widening current account deficits, is remarkable, but so is the fact that during 2003 and 2004 U.S. net liabilities have actually declined when scaled b ...
Chapter 26
... a. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. b. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. c. Incorrect. The belief that the ...
... a. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. b. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. c. Incorrect. The belief that the ...
Financial shocks and macroeconomic policies during the Argentine
... abandoned its exchange rate peg while Argentina and Uruguay opted for maintaining their stabilisation plans. A long lasting recession started in Argentina and Uruguay, that nally led to an important economic crisis and to problems with the management of public debt. In a companion paper, Mourelle ( ...
... abandoned its exchange rate peg while Argentina and Uruguay opted for maintaining their stabilisation plans. A long lasting recession started in Argentina and Uruguay, that nally led to an important economic crisis and to problems with the management of public debt. In a companion paper, Mourelle ( ...
here
... The relation of prices to the exchange rate was studied with interest during ’60’70-s. Initially models were established that based on the theory “Law of one price” presumed the existence of a unitarian connection between them. Later on there were developed models of the Parity of Buying Power (abso ...
... The relation of prices to the exchange rate was studied with interest during ’60’70-s. Initially models were established that based on the theory “Law of one price” presumed the existence of a unitarian connection between them. Later on there were developed models of the Parity of Buying Power (abso ...
1. EMU
... and emerging experience was the way in which national economies would respond to country-specific shocks – including as the existence of monetary union brought about further changes in the real and financial sectors, and in policy performance. Events have borne out the assessment that this would pro ...
... and emerging experience was the way in which national economies would respond to country-specific shocks – including as the existence of monetary union brought about further changes in the real and financial sectors, and in policy performance. Events have borne out the assessment that this would pro ...
IS-LM and AD-AS model
... Today we will develop IS-LM model, the theory that explains the aggregate demand curve First, we focus on the short run and assume hat price level is fixed Then, we allow price to be flexible, and derive AD curve Finally, we analyze the effect of fiscal and monetary policy on the most important ...
... Today we will develop IS-LM model, the theory that explains the aggregate demand curve First, we focus on the short run and assume hat price level is fixed Then, we allow price to be flexible, and derive AD curve Finally, we analyze the effect of fiscal and monetary policy on the most important ...
Real Exchange Rates, Saving and Growth: Is there a Link?
... saving rates. China is the most prominent current example, but over previous decades the association between depreciated real exchange rates and high saving rates has also been observed in high-performing Asian economies such as Korea, Malaysia, and Thailand, as well as in Chile. The opposite conste ...
... saving rates. China is the most prominent current example, but over previous decades the association between depreciated real exchange rates and high saving rates has also been observed in high-performing Asian economies such as Korea, Malaysia, and Thailand, as well as in Chile. The opposite conste ...
Demand for Money in the Transition Economy
... the extent to which portfolio effects can play a role depends on the difference in the “moneyness” (i.e. the opportunity cost of holding each monetary asset) between the assets bought and sold by the central bank. In the third series of channels, the bank-lending channel2, we include the credit mar ...
... the extent to which portfolio effects can play a role depends on the difference in the “moneyness” (i.e. the opportunity cost of holding each monetary asset) between the assets bought and sold by the central bank. In the third series of channels, the bank-lending channel2, we include the credit mar ...
Estimating A Monetary Policy Reaction Function for the CBN–
... liabilities; but they were not very effective since they were lower than those the banks on their own maintained with the CBN. ...
... liabilities; but they were not very effective since they were lower than those the banks on their own maintained with the CBN. ...
Inflation, deflation and purchasing power
... Demand-pull Theory: “too much money purchasing too few goods”. Cost-push Theory: if costs rise too fast, companies will need to put prices up to get the same value for their products. Structural Inflation Theory: inflation caused by structural factors Rational Expectations Theory: there is a clear l ...
... Demand-pull Theory: “too much money purchasing too few goods”. Cost-push Theory: if costs rise too fast, companies will need to put prices up to get the same value for their products. Structural Inflation Theory: inflation caused by structural factors Rational Expectations Theory: there is a clear l ...
public debt, external competitiveness, and fiscal discipline in
... with inflation because progressive income taxes produce only a small share of total tax revenue and many other taxes are levied at specific rates, with long lags in collection (Tanzi, 1977). The lags between accruals and payments reflect the fact that penalties for lateness are low or not enforced. ...
... with inflation because progressive income taxes produce only a small share of total tax revenue and many other taxes are levied at specific rates, with long lags in collection (Tanzi, 1977). The lags between accruals and payments reflect the fact that penalties for lateness are low or not enforced. ...
WNE UW - Derivatives Markets
... But we do not live in a simple world of only stocks and bonds, and in fact investors can adjust the level of risk in a variety of ways. For example, one way to reduce risk is to use insurance, which can be described as the act of paying someone to assume a risk for you. The financial markets have cr ...
... But we do not live in a simple world of only stocks and bonds, and in fact investors can adjust the level of risk in a variety of ways. For example, one way to reduce risk is to use insurance, which can be described as the act of paying someone to assume a risk for you. The financial markets have cr ...
This PDF is a selection from an out-of-print volume from the... of Economic Research Volume Title: Exchange Rate Theory and Practice
... markets are not closely correlated with monthly changes in the general price level, as measured by the consumer price index, implying that most nominal price changes are also real price changes. These common characteristics in the behavior of prices of assets traded in organized markets suggest that ...
... markets are not closely correlated with monthly changes in the general price level, as measured by the consumer price index, implying that most nominal price changes are also real price changes. These common characteristics in the behavior of prices of assets traded in organized markets suggest that ...
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.