Slides
... – Required devaluation brings unit labor cost (Wt /At ) relative to Germany to its 1995 ratio – Maximal fiscal devaluation is constrained by zero lower bound on payroll contributions and 45% maximal VAT rate (which is never binding). A reduction of x in payroll tax and similar increase in VAT is equ ...
... – Required devaluation brings unit labor cost (Wt /At ) relative to Germany to its 1995 ratio – Maximal fiscal devaluation is constrained by zero lower bound on payroll contributions and 45% maximal VAT rate (which is never binding). A reduction of x in payroll tax and similar increase in VAT is equ ...
70013029I_en.pdf
... which will ensure the optimal nature of the expectations generated. In particular, in some cases it is especially difficult to project output and income trends: the changes which take place in the corresponding perceptions as individuals go through their learning processes5 can lead to cycles in est ...
... which will ensure the optimal nature of the expectations generated. In particular, in some cases it is especially difficult to project output and income trends: the changes which take place in the corresponding perceptions as individuals go through their learning processes5 can lead to cycles in est ...
Lecture 3 and 4 I.F
... and the price level. Monetary Policy is the management of money – supply and availability - and interest rates. Is one of the tools that the monetary authority of a country uses to influence its economy. Usually this goal is ‘macroeconomic stability’: low unemployment, law rate of inflation-price st ...
... and the price level. Monetary Policy is the management of money – supply and availability - and interest rates. Is one of the tools that the monetary authority of a country uses to influence its economy. Usually this goal is ‘macroeconomic stability’: low unemployment, law rate of inflation-price st ...
international money transfer service is provided by bpn in
... agents, partners or representatives (collectively “Partners”) worldwide. Some locations are open 24 hours. 2. Regular money transfers are usually available within minutes for pick up by the receiver, subject to the opening hours of the receiving Partner location. The maximum completion time for regu ...
... agents, partners or representatives (collectively “Partners”) worldwide. Some locations are open 24 hours. 2. Regular money transfers are usually available within minutes for pick up by the receiver, subject to the opening hours of the receiving Partner location. The maximum completion time for regu ...
Monetary and Fiscal Operations in the People`s Republic of China
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
... however, is that the PRC’s central government spending is very small in comparison with both developed and upper-middle income developing nations. Indeed, if aggregate demand is currently at the correct level, it is possible to relax central government budgets while at the same time tightening local ...
NBER WORKING PAPER SERIES DEBT DELEVERAGING AND THE EXCHANGE RATE Pierpaolo Benigno
... public debt in one form or another. It is still being debated whether the divergences of the past actually caused the crisis or merely reflected other underlining problems.1 In any case, the general tendency is for the crisis-ridden countries to reduce debt. Deleveraging raises interesting questions ...
... public debt in one form or another. It is still being debated whether the divergences of the past actually caused the crisis or merely reflected other underlining problems.1 In any case, the general tendency is for the crisis-ridden countries to reduce debt. Deleveraging raises interesting questions ...
Reforming the Transmission Mechanism of Monetary Policy in China
... PBC has promulgated some policies to support the non-SOEs' development. By the end of 1998, the outstanding loans to non-SOEs account for 41.82 percent of total ...
... PBC has promulgated some policies to support the non-SOEs' development. By the end of 1998, the outstanding loans to non-SOEs account for 41.82 percent of total ...
Deflationary Shocks and Monetary Rules: An Open
... In recent years, quite a few research agendas have sought to pin down the causes of de‡ation, mostly focusing on whether falling prices are the result of structural factors or insu¢ cient aggregate demand. In a nutshell, structural factors such as productivity improvements in the manufacturing secto ...
... In recent years, quite a few research agendas have sought to pin down the causes of de‡ation, mostly focusing on whether falling prices are the result of structural factors or insu¢ cient aggregate demand. In a nutshell, structural factors such as productivity improvements in the manufacturing secto ...
Money and Banking in a `New Keynesian` Model
... ‘The Money Market’ Romer gives an explanation of how the central bank imposes its chosen rate ‘…by injecting or draining high-powered money…’ (p.162). In so far as the focus is on high-powered (rather than broader measures of) money, this is correct. But when it comes to explaining how operations o ...
... ‘The Money Market’ Romer gives an explanation of how the central bank imposes its chosen rate ‘…by injecting or draining high-powered money…’ (p.162). In so far as the focus is on high-powered (rather than broader measures of) money, this is correct. But when it comes to explaining how operations o ...
A Neokeynesian Balance of Payment Model. Study Case on
... We suppose also that in real sector output depend non linear on consumption, investments, government expenditure and net commercial balance: Y C a G b I c Nx d , or equivalent in logarithmic form: ln Y a ln C b ln G c ln I d ln Nx . Also, we have hypothesis: H1. The output from curre ...
... We suppose also that in real sector output depend non linear on consumption, investments, government expenditure and net commercial balance: Y C a G b I c Nx d , or equivalent in logarithmic form: ln Y a ln C b ln G c ln I d ln Nx . Also, we have hypothesis: H1. The output from curre ...
Answers to Questions: Chapter 9
... but it is not consistent with firms’ profit-maximization. Firms would be willing to increase output to 106 only if the inflation rate were 3 percent, but that is not possible given nominal GDP growth of just 6 percent. The 6 percent nominal GDP growth must be divided between real GDP growth and infl ...
... but it is not consistent with firms’ profit-maximization. Firms would be willing to increase output to 106 only if the inflation rate were 3 percent, but that is not possible given nominal GDP growth of just 6 percent. The 6 percent nominal GDP growth must be divided between real GDP growth and infl ...
NBER WORKING PAPER SERIES MACROECONOMIC RESPONSES BY DEVELOPING COUNTRIES TO CHANGES
... credit and devaluing the exchange rate to reduce domestic absorption and improve the external current account balance would seem to be examples ...
... credit and devaluing the exchange rate to reduce domestic absorption and improve the external current account balance would seem to be examples ...
the eurozone and political economic institutions
... governments to tight rule-based fiscal policy as well as minimizing public sector deficits. Thus, export-oriented CMEs, with powerful companies, unions, and highly skilled workforces in the high value-added sectors of the economy as well as powerful unions in the public sector, depend on the rule-ba ...
... governments to tight rule-based fiscal policy as well as minimizing public sector deficits. Thus, export-oriented CMEs, with powerful companies, unions, and highly skilled workforces in the high value-added sectors of the economy as well as powerful unions in the public sector, depend on the rule-ba ...
The Importance of Composition of Fiscal Policy: Evidence from
... firms sell their output on world markets. The home economy is small: for simplicity we make the extreme – and standard – assumption that domestic consumers have zero impact on the levels of demand for domestic or foreign traded products. Firms have monopolistic power in the market for the good they ...
... firms sell their output on world markets. The home economy is small: for simplicity we make the extreme – and standard – assumption that domestic consumers have zero impact on the levels of demand for domestic or foreign traded products. Firms have monopolistic power in the market for the good they ...
Currency Wars, Coordination, and Capital Controls
... for coordination. Suppose we capture what has happened during the crisis by assuming that, starting from steady state in both countries—so all variables are equal to zero—the domestic economy is hit by an adverse demand shock, so X < 0. Then, the Nash equilibrium is trivially characterized: The dom ...
... for coordination. Suppose we capture what has happened during the crisis by assuming that, starting from steady state in both countries—so all variables are equal to zero—the domestic economy is hit by an adverse demand shock, so X < 0. Then, the Nash equilibrium is trivially characterized: The dom ...
NBER WORKING PAPER SERIES INFLATION INERTIA AND CREDIBLE DISINFLATION - Guillermo Calvo
... it jointly and optimally chooses an initial price level and a rate at which it will update its price in the future, a ‘firm-specific inflation rate’.4 This approach differs from the two dominant approaches in the literature. In one (e.g. Woodford , 2001) firms choose only a price level without updat ...
... it jointly and optimally chooses an initial price level and a rate at which it will update its price in the future, a ‘firm-specific inflation rate’.4 This approach differs from the two dominant approaches in the literature. In one (e.g. Woodford , 2001) firms choose only a price level without updat ...
The Liquidity Trap: Evidence from Japan
... less intensity than in the past. Although several explanations have been offered for this, none is more intriguing from the viewpoint of a central bank than the possibility that monetary policy had been largely ineffective because the Japanese economy had entered a “liquidity trap.”3 This paper prov ...
... less intensity than in the past. Although several explanations have been offered for this, none is more intriguing from the viewpoint of a central bank than the possibility that monetary policy had been largely ineffective because the Japanese economy had entered a “liquidity trap.”3 This paper prov ...
del02-stein 221139 en
... explanatory power has proven to be unsatisfactory. (b) The state of macroeconomics, that aims to explain shorter- term movements in the rate of capacity utilization or inflation, is extremely controversial. Therefore, our focus is upon the equilibrium/sustainable real exchange rate. The NATREX model ...
... explanatory power has proven to be unsatisfactory. (b) The state of macroeconomics, that aims to explain shorter- term movements in the rate of capacity utilization or inflation, is extremely controversial. Therefore, our focus is upon the equilibrium/sustainable real exchange rate. The NATREX model ...
Chapter 18 PPT
... prices as gold (“specie”) flows into or out of a country, causing an adjustment in the flow of goods. An inflow of gold tends to inflate prices. An outflow of gold tends to deflate prices. If a domestic country has a current account surplus in excess of the non-reserve financial account, gold ...
... prices as gold (“specie”) flows into or out of a country, causing an adjustment in the flow of goods. An inflow of gold tends to inflate prices. An outflow of gold tends to deflate prices. If a domestic country has a current account surplus in excess of the non-reserve financial account, gold ...
... stock of reproducible capital. Households supply labor inelastically to the labor market, and competitive firms hire labor to the point where the marginal product of labor equals the wage. Short-run rigidities in nominal or real wages may induce labor market disequilibrium and temporary, involuntary ...
The Japan-U.S. Exchange Rate, Productivity, and the
... short- to the long-runs, and depicts how business cycles and monetary policies can change real interest rates, and cause the short-run real exchange rate to deviate from its long-run value. Obstfeld shows that the Balassa-Samuelson effect would appear to hold in the long- to the very long-runs, alth ...
... short- to the long-runs, and depicts how business cycles and monetary policies can change real interest rates, and cause the short-run real exchange rate to deviate from its long-run value. Obstfeld shows that the Balassa-Samuelson effect would appear to hold in the long- to the very long-runs, alth ...
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.