Financial Integration and Economic Welfare
... (2000) and Clark and Feenstra (2003) in a world of completely mobile capital, the amount of physical capital installed in a country, relative to the world average, is fully explained by total factor productivity. Building on this Kalemli-Ozcan, Reshef, Sørensen, and Yosha (2005) and Ekinci, Kalemli- ...
... (2000) and Clark and Feenstra (2003) in a world of completely mobile capital, the amount of physical capital installed in a country, relative to the world average, is fully explained by total factor productivity. Building on this Kalemli-Ozcan, Reshef, Sørensen, and Yosha (2005) and Ekinci, Kalemli- ...
Reassessing the Link between the Japanese Yen and Emerging
... rate should be a key objective of the foreign exchange rate policy in emerging Asian currencies. Following the approach of Frankel and Wei (1994), Bowman (2005) shows that the Australian dollar, in addition to JPY, has increased its influence in exchange rates of East Asian countries during the 1990 ...
... rate should be a key objective of the foreign exchange rate policy in emerging Asian currencies. Following the approach of Frankel and Wei (1994), Bowman (2005) shows that the Australian dollar, in addition to JPY, has increased its influence in exchange rates of East Asian countries during the 1990 ...
cwpe1301 - Faculty of Economics
... State banks — in particular those controlled by opposition parties whose support was needed in order to get the necessary majority for the reform). From this point of view, I shall argue that there is a very specific ‘Minskyian’ feature to the Brazilian crisis, which made it different from other fin ...
... State banks — in particular those controlled by opposition parties whose support was needed in order to get the necessary majority for the reform). From this point of view, I shall argue that there is a very specific ‘Minskyian’ feature to the Brazilian crisis, which made it different from other fin ...
Monetary Policy
... • The money supply would be tied to the stock of gold. • The government sets the price of gold at some dollar amount. • The government promises to buy and sell gold at the official price. • Critics charge that a gold standard is no guarantee against inflation. • Critics also charge that a reduction ...
... • The money supply would be tied to the stock of gold. • The government sets the price of gold at some dollar amount. • The government promises to buy and sell gold at the official price. • Critics charge that a gold standard is no guarantee against inflation. • Critics also charge that a reduction ...
Global Financial Crisis and Growth Prospects in Asia
... (US) and European Union (EU). This paper empirically examines the channels through which the global financial crisis propelled the regional economies into the worst post1997 recession at both macroeconomic and sectoral levels using the cross-country panel from 1960 to 2008. The evidence points to th ...
... (US) and European Union (EU). This paper empirically examines the channels through which the global financial crisis propelled the regional economies into the worst post1997 recession at both macroeconomic and sectoral levels using the cross-country panel from 1960 to 2008. The evidence points to th ...
The role of monetary policy in Denmark
... A sudden event may upset this state of affairs - and not necessarily an event in Denmark. When the international financial crisis arose in September 1998 many investors preferred to move their assets to bigger currencies such as the dollar and the currencies which were then about to become part of t ...
... A sudden event may upset this state of affairs - and not necessarily an event in Denmark. When the international financial crisis arose in September 1998 many investors preferred to move their assets to bigger currencies such as the dollar and the currencies which were then about to become part of t ...
Global Imbalances and Equilibrium Adjustment Mechanisms
... (savings glut hypothesis); and that this was consistent with the relatively low levels of the world interest rates. Keynesian economists consider global imbalances as the main cause of the current meltdown and the increase in unemployment (Skidelsky, 2009). Global imbalances are not a new phenomenon ...
... (savings glut hypothesis); and that this was consistent with the relatively low levels of the world interest rates. Keynesian economists consider global imbalances as the main cause of the current meltdown and the increase in unemployment (Skidelsky, 2009). Global imbalances are not a new phenomenon ...
Ambulance Economics: The Pros and Cons of Fiscal Stimuli (2009)
... value to the extra debt. As savers they have more financial assets and as taxpayers they have more liabilities. If they were the same persons these two effects would cancel out. Only the net gain from Period 1 investment would be left.. The main point is that, in the absence of the stimulus policy, ...
... value to the extra debt. As savers they have more financial assets and as taxpayers they have more liabilities. If they were the same persons these two effects would cancel out. Only the net gain from Period 1 investment would be left.. The main point is that, in the absence of the stimulus policy, ...
Orion Monetary System 24. Pitfalls and Fallacies of the
... A key point in the hidden agenda of the dark forces to enslave mankind is to use the current financial system to deepen the psychological conviction of incarnated human entities that they are separated from the Whole and thus an easy prey to unpredictable chaotic events. Money is considered to be th ...
... A key point in the hidden agenda of the dark forces to enslave mankind is to use the current financial system to deepen the psychological conviction of incarnated human entities that they are separated from the Whole and thus an easy prey to unpredictable chaotic events. Money is considered to be th ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... a one-off event. Steadily rising integration could potentially lead to steadily falling unit labor costs and, ceteris paribus, to protracted periods of lower inflation. Second, a higher degree of openness (and thus increased competition) could lead to permanently higher productivity growth and, again ...
... a one-off event. Steadily rising integration could potentially lead to steadily falling unit labor costs and, ceteris paribus, to protracted periods of lower inflation. Second, a higher degree of openness (and thus increased competition) could lead to permanently higher productivity growth and, again ...
Government Intervention during the Asian Crisis
... Japan was also affected by the Asian crisis because it exports products to these countries, and many of its corporations have subsidiaries in these countries so their business performance is affected by the local economic conditions. Japan had also been experiencing its own problems. Its financial in ...
... Japan was also affected by the Asian crisis because it exports products to these countries, and many of its corporations have subsidiaries in these countries so their business performance is affected by the local economic conditions. Japan had also been experiencing its own problems. Its financial in ...
Chapter 7
... • In fact, the monetary policy of the U.S. influenced the economies of other countries. • Suppose that the U.S. increased its money supply. – This would lower U.S. interest rates, putting downward pressure on the value of the U.S. dollar. – If other central banks maintained their fixed exchange rate ...
... • In fact, the monetary policy of the U.S. influenced the economies of other countries. • Suppose that the U.S. increased its money supply. – This would lower U.S. interest rates, putting downward pressure on the value of the U.S. dollar. – If other central banks maintained their fixed exchange rate ...
Chapter 2 The Origins of the Phillips Curve
... modern governments which issue fiat currency (see Mitchell, 1998; Wray, 1998; Mitchell and Mosler, 2002, 2006). We propose this monetary framework as a challenge to the orthodox macroeconomic consensus that we developed in Chapters 5 and 6 which has provided the so-called intellectual authority to p ...
... modern governments which issue fiat currency (see Mitchell, 1998; Wray, 1998; Mitchell and Mosler, 2002, 2006). We propose this monetary framework as a challenge to the orthodox macroeconomic consensus that we developed in Chapters 5 and 6 which has provided the so-called intellectual authority to p ...
Finance-dominated capitalism in crisis – the
... The world economy is still struggling with its most severe crisis since the Great Depression, which started in 1929 and lasted until the mid 1930s. On the one hand, the present crisis is a financial crisis which started with the collapse of the subprime mortgage market in the US in summer 2007, whic ...
... The world economy is still struggling with its most severe crisis since the Great Depression, which started in 1929 and lasted until the mid 1930s. On the one hand, the present crisis is a financial crisis which started with the collapse of the subprime mortgage market in the US in summer 2007, whic ...
RVI114Hermann_en.pdf
... in the financial system: its tendency to operate in a way that is not functional to this process. The post-Keynesian approach is even more radical in its criticism of the efficient market hypothesis, its argument being that the main obstacle to market efficiency is the uncertainty surrounding all ec ...
... in the financial system: its tendency to operate in a way that is not functional to this process. The post-Keynesian approach is even more radical in its criticism of the efficient market hypothesis, its argument being that the main obstacle to market efficiency is the uncertainty surrounding all ec ...
kilang papan seribu daya berhad (special
... Basis of Preparation These interim financial statements are prepared in accordance with the Malaysian Accounting Standards Board ("MASB") Standard No. 26 "Interim Financial Reporting" and paragraph 9.22 of the Bursa Malaysia Listing Requirements and should be read in conjunction with the Group's ann ...
... Basis of Preparation These interim financial statements are prepared in accordance with the Malaysian Accounting Standards Board ("MASB") Standard No. 26 "Interim Financial Reporting" and paragraph 9.22 of the Bursa Malaysia Listing Requirements and should be read in conjunction with the Group's ann ...
China has achieved extraordinary economic growth over the past
... expansion of the market for imports. The United States also views the issue through the distorted lens of its own bilateral trade deficit with China, while ignoring the fact that it has a bilateral trade deficit with nearly everyone. The U.S-China trade balance plays a disproportion role in the disc ...
... expansion of the market for imports. The United States also views the issue through the distorted lens of its own bilateral trade deficit with China, while ignoring the fact that it has a bilateral trade deficit with nearly everyone. The U.S-China trade balance plays a disproportion role in the disc ...
The euro-dollar exchange rate IN-DEPTH
... the respective current account balance positions (CAP). The country with a weaker current account position tends to have a weaker currency (Edwards, 1989). The country with a current account deficit and with limited foreign currency reserves at its disposal may be forced by financial markets to depr ...
... the respective current account balance positions (CAP). The country with a weaker current account position tends to have a weaker currency (Edwards, 1989). The country with a current account deficit and with limited foreign currency reserves at its disposal may be forced by financial markets to depr ...
PDF
... and the recession of 1982, combined to reduce the inflation rate during the early 1980s. High interest rates, however, had some other effects, such as attracting foreign capital which was necessary to finance budget deficits, and raising the value of the dollar. The higher valued dollar reduced the ...
... and the recession of 1982, combined to reduce the inflation rate during the early 1980s. High interest rates, however, had some other effects, such as attracting foreign capital which was necessary to finance budget deficits, and raising the value of the dollar. The higher valued dollar reduced the ...
Business Review Jan-June 2010
... country. A legal framework in form of Fiscal Responsibility Law has been enacted with clear timeline for reducing the level of fiscal deficit and the extent of indebtedness (60 percent of GDP). Parliament is expected under this Law to monitor the progress and thus the target setting, monitoring and ...
... country. A legal framework in form of Fiscal Responsibility Law has been enacted with clear timeline for reducing the level of fiscal deficit and the extent of indebtedness (60 percent of GDP). Parliament is expected under this Law to monitor the progress and thus the target setting, monitoring and ...
How to make debt safer
... Eichengreen and Hausmann would reach two objectives • Create a market • Lend in local currency ...
... Eichengreen and Hausmann would reach two objectives • Create a market • Lend in local currency ...
Global financial system
The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization, its evolution is marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. In the late 1800s, world migration and communication technology facilitated unprecedented growth in international trade and investment. At the onset of World War I, trade contracted as foreign exchange markets became paralyzed by money market illiquidity. Countries sought to defend against external shocks with protectionist policies and trade virtually halted by 1933, worsening the effects of the global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs worldwide. Efforts to revamp the international monetary system after World War II improved exchange rate stability, fostering record growth in global finance.A series of currency devaluations and oil crises in the 1970s led most countries to float their currencies. The world economy became increasingly financially integrated in the 1980s and 1990s due to capital account liberalization and financial deregulation. A series of financial crises in Europe, Asia, and Latin America followed with contagious effects due to greater exposure to volatile capital flows. The global financial crisis, which originated in the United States in 2007, quickly propagated among other nations and is recognized as the catalyst for the worldwide Great Recession. A market adjustment to Greece's noncompliance with its monetary union in 2009 ignited a sovereign debt crisis among European nations known as the Eurozone crisis.A country's decision to operate an open economy and globalize its financial capital carries monetary implications captured by the balance of payments. It also renders exposure to risks in international finance, such as political deterioration, regulatory changes, foreign exchange controls, and legal uncertainties for property rights and investments. Both individuals and groups may participate in the global financial system. Consumers and international businesses undertake consumption, production, and investment. Governments and intergovernmental bodies act as purveyors of international trade, economic development, and crisis management. Regulatory bodies establish financial regulations and legal procedures, while independent bodies facilitate industry supervision. Research institutes and other associations analyze data, publish reports and policy briefs, and host public discourse on global financial affairs.While the global financial system is edging toward greater stability, governments must deal with differing regional or national needs. Some nations are trying to orderly discontinue unconventional monetary policies installed to cultivate recovery, while others are expanding their scope and scale. Emerging market policymakers face a challenge of precision as they must carefully institute sustainable macroeconomic policies during extraordinary market sensitivity without provoking investors to retreat their capital to stronger markets. Nations' inability to align interests and achieve international consensus on matters such as banking regulation has perpetuated the risk of future global financial catastrophes.