Periodism of Chinese Current Account Surplus
... Known as the tradition of high savings in China, coupled with the system transition of the social security system has not yet fully completed. Precautionary savings of residents used as pension, health care and education is high. This increased the residents' savings. At the same time, relatively la ...
... Known as the tradition of high savings in China, coupled with the system transition of the social security system has not yet fully completed. Precautionary savings of residents used as pension, health care and education is high. This increased the residents' savings. At the same time, relatively la ...
Triffin: dilemma or myth? - International Atlantic Economic Society
... and meeting other countries´ demand for reserve currencies. On the one hand, the monetary authorities cannot simply focus on domestic goals without carrying out their international responsibilities. On the other hand, they cannot pursue different domestic and international objectives at the same tim ...
... and meeting other countries´ demand for reserve currencies. On the one hand, the monetary authorities cannot simply focus on domestic goals without carrying out their international responsibilities. On the other hand, they cannot pursue different domestic and international objectives at the same tim ...
Test 2 - Department of Economics
... exchange rate is expected to depreciate by 1%, in the new equilibrium the domestic rate of interest will A) increase by approximately 2 percentage points. B) increase by approximately 1 percentage point. C) decrease by approximately 1 percentage point. D) increase by approximately 3 percentage point ...
... exchange rate is expected to depreciate by 1%, in the new equilibrium the domestic rate of interest will A) increase by approximately 2 percentage points. B) increase by approximately 1 percentage point. C) decrease by approximately 1 percentage point. D) increase by approximately 3 percentage point ...
This PDF is a selection from a published volume from... Bureau of Economic Research
... stimulating technological innovation over the past 30 years, and despite its excesses it is a key part of the Silicon Valley miracle (see, e.g., Lerner and Schoar 2010). But VC is not a recent innovation, and as far as financial products go, it is one of the simplest. VC funds are simply pools of mo ...
... stimulating technological innovation over the past 30 years, and despite its excesses it is a key part of the Silicon Valley miracle (see, e.g., Lerner and Schoar 2010). But VC is not a recent innovation, and as far as financial products go, it is one of the simplest. VC funds are simply pools of mo ...
State Intervention in times of the Global Economic Crisis
... 3.1 Overview of the main theoretical approaches Liberalism emphasizes the importance of the national decision-making process for the formation of economic policy preferences of national governments (see Frieden 1995, Moravcsik 1997, Katzenstein 2005). According to Frieden, for instance, mainly the e ...
... 3.1 Overview of the main theoretical approaches Liberalism emphasizes the importance of the national decision-making process for the formation of economic policy preferences of national governments (see Frieden 1995, Moravcsik 1997, Katzenstein 2005). According to Frieden, for instance, mainly the e ...
Brief answers to problems and questions for review
... interventions are sufficiently small that the exchange rate policy will not badly distort the focus of monetary policy on the price level and real GDP. 15. If a country has a high rate of inflation then the amount of intervention necessary to fix the exchange rate may be large. If the constant sell ...
... interventions are sufficiently small that the exchange rate policy will not badly distort the focus of monetary policy on the price level and real GDP. 15. If a country has a high rate of inflation then the amount of intervention necessary to fix the exchange rate may be large. If the constant sell ...
Sovereign Risk: A Study on the Brazilian and Mexican Economies
... 3. Ratings made by Specialized Agencies The purpose of risk classification is to express a technical opinion, which is both specialized and independent, by the application of a specific methodology that has qualitative and quantitative aspects, on a credit profile to be evaluated. They do not, howe ...
... 3. Ratings made by Specialized Agencies The purpose of risk classification is to express a technical opinion, which is both specialized and independent, by the application of a specific methodology that has qualitative and quantitative aspects, on a credit profile to be evaluated. They do not, howe ...
The changing role of central banks, November 2010
... since output and money would rise hand in hand. Similarly, since they were based on trade/output, they would become quasi-automatically self-financing when the goods were eventually sold. In contrast, speculative, or finance, bills were drawn to support asset purchases, notably in stock markets, an ...
... since output and money would rise hand in hand. Similarly, since they were based on trade/output, they would become quasi-automatically self-financing when the goods were eventually sold. In contrast, speculative, or finance, bills were drawn to support asset purchases, notably in stock markets, an ...
Gains from Financial Globalization
... • Since the 1980s, the United States has been a net debtor, W = A − L < 0. Negative external wealth would lead to a deficit on net factor income from abroad: r*W= r* (A − L) < 0. But we learned that U.S. net factor income from abroad has been positive for decades. How can this be? • The only way a n ...
... • Since the 1980s, the United States has been a net debtor, W = A − L < 0. Negative external wealth would lead to a deficit on net factor income from abroad: r*W= r* (A − L) < 0. But we learned that U.S. net factor income from abroad has been positive for decades. How can this be? • The only way a n ...
Balance of payments adjustments
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
Long-term investment in Europe The origin of the
... European Commission President Barroso. It addressed, inter alia, the subject of accounting standards, claiming that the business models of intermediaries should be taken into account, especially if made up of long-term assets and liabilities; that the standards should promote procyclical behaviour; ...
... European Commission President Barroso. It addressed, inter alia, the subject of accounting standards, claiming that the business models of intermediaries should be taken into account, especially if made up of long-term assets and liabilities; that the standards should promote procyclical behaviour; ...
Introduction
... History of the International Monetary Fund. International Monetary Fund - a specialized UN agency, with headquarters in Washington. At Bretton Woods, the UN Conference on Monetary Affairs July 22, 1944 has been developed framework agreements - Charter IMF. The final version of the agreement the fir ...
... History of the International Monetary Fund. International Monetary Fund - a specialized UN agency, with headquarters in Washington. At Bretton Woods, the UN Conference on Monetary Affairs July 22, 1944 has been developed framework agreements - Charter IMF. The final version of the agreement the fir ...
View/Open
... Slovakia joined the euro area after a period of unprecedented real appreciation. The response to the financial crisis combined internal devaluation with productivity increasing measures, including capital deepening in the banking sector. Although this strategy was successfully restoring an external ...
... Slovakia joined the euro area after a period of unprecedented real appreciation. The response to the financial crisis combined internal devaluation with productivity increasing measures, including capital deepening in the banking sector. Although this strategy was successfully restoring an external ...
Overcoming the Great Recession: Lessons From China
... 4. Extent of globalization. In the context of the United Nations, the IMF and the World Bank, interdependence among countries has increased significantly.5 Nowadays, with the fiat money system entrenched worldwide, a managed floating exchange rate regime has replaced the old gold standard. Increasin ...
... 4. Extent of globalization. In the context of the United Nations, the IMF and the World Bank, interdependence among countries has increased significantly.5 Nowadays, with the fiat money system entrenched worldwide, a managed floating exchange rate regime has replaced the old gold standard. Increasin ...
Monetary - Harvard Kennedy School
... – independence was also granted the Bank of England, Bank of Japan, & many others (Korea, Mexico, …) – The ECB was given complete independence. ...
... – independence was also granted the Bank of England, Bank of Japan, & many others (Korea, Mexico, …) – The ECB was given complete independence. ...
NBER WORKING PAPER SERIES CURRENCY DIVERSIFICATION AND (PORT "EGYPTIAN DISEASE"
... the 1979—80 British experience can be seen as an example of Southern Cone—type excessive capital inflows exacerbating the effects of the oil surplus on the real price of sterling.3 Instead, in the recent Egyptian experience, oil—induced real appreciation has been associated with capital outflows and ...
... the 1979—80 British experience can be seen as an example of Southern Cone—type excessive capital inflows exacerbating the effects of the oil surplus on the real price of sterling.3 Instead, in the recent Egyptian experience, oil—induced real appreciation has been associated with capital outflows and ...
Read complete text - Levy Economics Institute of Bard College
... rights and creating America’s first fully modern program for social insurance” (232). By instituting these measures, the administrators of the New Deal “forcefully rejected what the new president, at his inaugural, had called ‘an outworn tradition’ of political economy that thought markets to be sel ...
... rights and creating America’s first fully modern program for social insurance” (232). By instituting these measures, the administrators of the New Deal “forcefully rejected what the new president, at his inaugural, had called ‘an outworn tradition’ of political economy that thought markets to be sel ...
France - Société Générale
... in non-financial corporations' increased financing needs (more than EUR40bn). It also comes from a decrease in households’ net lending position (more than EUR10bn): their savings remained stable whereas their investment increased. However, it was limited by the improving public finances, which reduc ...
... in non-financial corporations' increased financing needs (more than EUR40bn). It also comes from a decrease in households’ net lending position (more than EUR10bn): their savings remained stable whereas their investment increased. However, it was limited by the improving public finances, which reduc ...
Doha Development Round - Schmidt
... PPP exchange rate (the "real exchange rate") fluctuations are mostly due to market exchange rate movements. Aside from this volatility, consistent deviations of the market and PPP exchange rates are observed, for example (market exchange rate) prices of non-traded goods and services are usually lowe ...
... PPP exchange rate (the "real exchange rate") fluctuations are mostly due to market exchange rate movements. Aside from this volatility, consistent deviations of the market and PPP exchange rates are observed, for example (market exchange rate) prices of non-traded goods and services are usually lowe ...
Rebalancing Act: Global Imbalances in a Changing World
... the United Kingdom (10 percent). Considering developing countries alone, Russia, Brazil and India ranked second, sixth, and seventh, ...
... the United Kingdom (10 percent). Considering developing countries alone, Russia, Brazil and India ranked second, sixth, and seventh, ...
... currency’s conversion rate into euro is to equal its end-of-Stage Two market exchange rate against the European Currency Unit (ECU) basket of twelve EU currencies. This requirement has the relatively minor implication that the euro’s scale probably cannot be known until December 31, 1998 (Denmark, G ...
Eco 460: International Finance Administrivia Readings
... • Linkages between international economics and politics – Trade and financial policies often driven by domestic interests – Politics may lead to deviations from optimal ...
... • Linkages between international economics and politics – Trade and financial policies often driven by domestic interests – Politics may lead to deviations from optimal ...
Argentina: A Decade of the Convertibility Regime
... fully and are yet to be understood. At present, the Argentine economy is struggling to emerge from the many uncertainties that arose with the downfall of the former set of economic rules and from the difficulties in establishing an alternative setting. It faces the challenge of recovering the basic ...
... fully and are yet to be understood. At present, the Argentine economy is struggling to emerge from the many uncertainties that arose with the downfall of the former set of economic rules and from the difficulties in establishing an alternative setting. It faces the challenge of recovering the basic ...
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.