NBER WORKING PAPER SERIES VARIETIES OF CURRENCY CRISES Graciela L. Kaminsky
... but the deterioration of the current account is at the core of crises before financial liberalization. Naturally, if these non- linearities are known, they can be controlled using interactive terms. Yet, such knowledge is the exception rather than the rule. Another source of non- linearities impossi ...
... but the deterioration of the current account is at the core of crises before financial liberalization. Naturally, if these non- linearities are known, they can be controlled using interactive terms. Yet, such knowledge is the exception rather than the rule. Another source of non- linearities impossi ...
spd04 Missale2 225568 en
... We show that the debt-to-GDP ratio can be stabilized by issuing debt instruments that provide a hedge against variations in the debt ratio due to lower-than-expected inflation and output growth. For instance, if interest rates and output were negatively correlated, a long maturity debt would insulate ...
... We show that the debt-to-GDP ratio can be stabilized by issuing debt instruments that provide a hedge against variations in the debt ratio due to lower-than-expected inflation and output growth. For instance, if interest rates and output were negatively correlated, a long maturity debt would insulate ...
Unemployment benefits extensions at the zero lower bound on
... by productivity shocks. This is at odds with the data since negative supply shocks cause an inflationary pressure and can not affect the interest rate in a way that mimics the financial market turmoils. As mentioned by Hall (2013), the high level of the real interest rate discourages employers to pu ...
... by productivity shocks. This is at odds with the data since negative supply shocks cause an inflationary pressure and can not affect the interest rate in a way that mimics the financial market turmoils. As mentioned by Hall (2013), the high level of the real interest rate discourages employers to pu ...
Foundations of Economics, 3e (Bade/Parkin)
... 29) Explain how changes in foreign income can impact real GDP in a country. Answer: Changes in the income of any nation impact the level of exports and imports of all other nations trading with it. For example, in the United States aggregate demand increases if the income of our trading partners, s ...
... 29) Explain how changes in foreign income can impact real GDP in a country. Answer: Changes in the income of any nation impact the level of exports and imports of all other nations trading with it. For example, in the United States aggregate demand increases if the income of our trading partners, s ...
The relevance of Keynes - Dr. Robert E. Looney Homepage
... it enlarges the scope for speculation and thus makes economic life more volatile. This has been exactly the effect of ‘securitisation’ in the last few years. However, the story is only half told. Investment depends on what Keynes calls the marginal efficiency of capital (MEC)—roughly, the expected r ...
... it enlarges the scope for speculation and thus makes economic life more volatile. This has been exactly the effect of ‘securitisation’ in the last few years. However, the story is only half told. Investment depends on what Keynes calls the marginal efficiency of capital (MEC)—roughly, the expected r ...
Gold Standard: The Future for a Stable Global - Hizb ut
... On the 31st of December 2010, Gold ended the year at $1,420 an ounce: up over 30% on the year, and the 10th year in succession in which it grew in dollar terms. Since 1971, when Richard Nixon unilaterally took the world off the Bretton Woods gold standard, gold has appreciated from its then price of ...
... On the 31st of December 2010, Gold ended the year at $1,420 an ounce: up over 30% on the year, and the 10th year in succession in which it grew in dollar terms. Since 1971, when Richard Nixon unilaterally took the world off the Bretton Woods gold standard, gold has appreciated from its then price of ...
Fiscal policy convergence and business cycle
... exchange rate is presented as a “device whereby depreciation can take the place of unemployment when the external balance is in deficit, and appreciation can replace inflation when it is in surplus” (Mundell, 1961, p. 657). A single currency area implies a single central bank, which will challenge p ...
... exchange rate is presented as a “device whereby depreciation can take the place of unemployment when the external balance is in deficit, and appreciation can replace inflation when it is in surplus” (Mundell, 1961, p. 657). A single currency area implies a single central bank, which will challenge p ...
A Dynamic Model of Aggregate Demand and Aggregate Supply
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
Commodity Markets and Futures prices - Farmdoc
... raised here. Of interest is the relative amount of information that becomes available over periods (which vary in length) when the market remains closed. For example, on the average, does the same amount of information tend to become known from 1 P.M. to 9 A.M. on weekdays as becomes known from 1 P. ...
... raised here. Of interest is the relative amount of information that becomes available over periods (which vary in length) when the market remains closed. For example, on the average, does the same amount of information tend to become known from 1 P.M. to 9 A.M. on weekdays as becomes known from 1 P. ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... We begin with a purely theoretical analysis of possible linkages between the foreign trade regime and domestic saving. It should be noted at the outset that the linkages that we will discuss in terms of alternative "model" types relate to the exchange control mechanism essentially in two ways. (1) W ...
... We begin with a purely theoretical analysis of possible linkages between the foreign trade regime and domestic saving. It should be noted at the outset that the linkages that we will discuss in terms of alternative "model" types relate to the exchange control mechanism essentially in two ways. (1) W ...
empirical findings on triplet deficits hypothesis
... levels on the expense side is called budget deficit. On the other hand, that having a deficit of current balance consisting of goods, services, income-expense balance and currents is also called current deficit. In addition to all these, with the addition of country’s total investment and savings in ...
... levels on the expense side is called budget deficit. On the other hand, that having a deficit of current balance consisting of goods, services, income-expense balance and currents is also called current deficit. In addition to all these, with the addition of country’s total investment and savings in ...
Document
... the banking system, consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
... the banking system, consumers. In this model, we assume the Fed precisely controls MS and sets it at some fixed amount. ...
Macroeconomics - University of London International Programmes
... This is one of a series of subject guides published by the University. We regret that due to pressure of work the authors are unable to enter into any correspondence relating to, or arising from, the guide. If you have any comments on this subject guide, favourable or unfavourable, please use the fo ...
... This is one of a series of subject guides published by the University. We regret that due to pressure of work the authors are unable to enter into any correspondence relating to, or arising from, the guide. If you have any comments on this subject guide, favourable or unfavourable, please use the fo ...
The Anatomy of Large Valuation Episodes Agustín Bénétrix Trinity College Dublin
... group then into a different category. Those with the same sign are separated from those with mixed signs. Also, due to data quality issues and availability, we focus on the period between 1994 and 2004. First, we exclude countries where the average inflation between 1994 and 2004 is greater than 40 ...
... group then into a different category. Those with the same sign are separated from those with mixed signs. Also, due to data quality issues and availability, we focus on the period between 1994 and 2004. First, we exclude countries where the average inflation between 1994 and 2004 is greater than 40 ...
Research and Monetary Policy Department Working Paper No:06/05
... goods. Since the non-traded goods are more limited in supply, the rise in demand will result in an increase in the relative prices of non-tradable goods. This will bring about an excessive growth of the services sector, because non-tradable goods are essentially provided by the services sector. ...
... goods. Since the non-traded goods are more limited in supply, the rise in demand will result in an increase in the relative prices of non-tradable goods. This will bring about an excessive growth of the services sector, because non-tradable goods are essentially provided by the services sector. ...
What Drives CNH Market Equilibrium?
... 2. In attempting to expand their RMB position, speculators increase their demand for the existing stock of CNH, now a principal spot outlet to express their expectations. Given the momentarily fixed current stock of CNH, this widens the spread of CNH over CNY versus USD. The spread increase is enoug ...
... 2. In attempting to expand their RMB position, speculators increase their demand for the existing stock of CNH, now a principal spot outlet to express their expectations. Given the momentarily fixed current stock of CNH, this widens the spread of CNH over CNY versus USD. The spread increase is enoug ...
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin
... 30) What is a stock? How do stocks affect the economy? Answer: A stock represents a share of ownership of a corporation, or a claim on a firm's earnings/assets. Stocks are part of wealth, and changes in their value affect people's willingness to spend. Changes in stock prices affect a firm's ability ...
... 30) What is a stock? How do stocks affect the economy? Answer: A stock represents a share of ownership of a corporation, or a claim on a firm's earnings/assets. Stocks are part of wealth, and changes in their value affect people's willingness to spend. Changes in stock prices affect a firm's ability ...
Preferences, Purchasing Power Parity, and
... resource costs and administrative complexities in conducting PPP exercises, and that such time intervals between ICP exercises have been increasing. Yet, PPPs are required much more frequently, typically annually or even quarterly, as the international community and global agencies need to make cros ...
... resource costs and administrative complexities in conducting PPP exercises, and that such time intervals between ICP exercises have been increasing. Yet, PPPs are required much more frequently, typically annually or even quarterly, as the international community and global agencies need to make cros ...
Lecture Note on the Gold Standard
... It is important, for this model (let alone for the gold standard as a monetary regime) to be useful, that we can extend the analysis to a world with banks and paper money. It turns out that this is not all that difficult. Assume that paper currency exists but that central banks stand ready to convert ...
... It is important, for this model (let alone for the gold standard as a monetary regime) to be useful, that we can extend the analysis to a world with banks and paper money. It turns out that this is not all that difficult. Assume that paper currency exists but that central banks stand ready to convert ...
NBER WORKING PAPER SERIES INTERNATIONAL TRADE IN DURABLE GOODS:
... that a large fraction of international trade is in durable goods, we propose a two-country two-sector model, in which durable goods are traded across countries. Simulation results show that our model can match the trade sector data much better than the standard models. Our model also sheds light on ...
... that a large fraction of international trade is in durable goods, we propose a two-country two-sector model, in which durable goods are traded across countries. Simulation results show that our model can match the trade sector data much better than the standard models. Our model also sheds light on ...
early warning indicators for developed countries - ECB
... vector autoregression framework employed to account for the complex dynamics of these interactions, currency and debt crises in developed countries were typically preceded by banking crises, but not vice versa. Banking crises appear to be the most persistent. The probability of observing a banking c ...
... vector autoregression framework employed to account for the complex dynamics of these interactions, currency and debt crises in developed countries were typically preceded by banking crises, but not vice versa. Banking crises appear to be the most persistent. The probability of observing a banking c ...
Exchange rate
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.