EMU Break-up
... Once again our purpose is not to assess the probability of EMU break-up, but its impact. Calibrating the impact remains challenging, but it is now essential to make informed investment decisions. We evaluate two boundary cases: a Greek exit and a complete break-up. Although there are many permutatio ...
... Once again our purpose is not to assess the probability of EMU break-up, but its impact. Calibrating the impact remains challenging, but it is now essential to make informed investment decisions. We evaluate two boundary cases: a Greek exit and a complete break-up. Although there are many permutatio ...
Can We Predict the Next Capital Account Crisis?
... vulnerabilities. We thank Jonathan Ostry and Antonio Spilimbergo for comments on an earlier draft of this paper. Marcos Souto and Murad Omoev provided excellent research assistance. The views expressed in this paper are those of the authors and should not be attributed to the International Monetary ...
... vulnerabilities. We thank Jonathan Ostry and Antonio Spilimbergo for comments on an earlier draft of this paper. Marcos Souto and Murad Omoev provided excellent research assistance. The views expressed in this paper are those of the authors and should not be attributed to the International Monetary ...
Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve
... In the last two decades or so, there have been major problems with financial modeling, not least because faulty financial models were a big contributor to the recent financial crisis. A continuing threat comes from the regulatory risk modeling agenda—at the center of which is the use of the Federal ...
... In the last two decades or so, there have been major problems with financial modeling, not least because faulty financial models were a big contributor to the recent financial crisis. A continuing threat comes from the regulatory risk modeling agenda—at the center of which is the use of the Federal ...
The Political Economy of Commitment to the Gold Standard First
... even when on gold, had their international loans denominated in a foreign currency (e.g., sterling) and/or had gold clauses requiring repayment in gold inserted in contracts (Bordo and Flandreau 2001). Only the UK, the US, France, Germany, The Netherlands, Belgium, Denmark, and Switzerland could iss ...
... even when on gold, had their international loans denominated in a foreign currency (e.g., sterling) and/or had gold clauses requiring repayment in gold inserted in contracts (Bordo and Flandreau 2001). Only the UK, the US, France, Germany, The Netherlands, Belgium, Denmark, and Switzerland could iss ...
Putting Macroprudential Policy to Work
... In Europe, we are entering a new financial era with a centralised banking union and a largely decentralised macroprudential policy. This reflects the need to promote strong supervision, while also addressing diverging financial cycles between countries. This era is by any measure a challenging one. ...
... In Europe, we are entering a new financial era with a centralised banking union and a largely decentralised macroprudential policy. This reflects the need to promote strong supervision, while also addressing diverging financial cycles between countries. This era is by any measure a challenging one. ...
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... with a small appreciation of the renminbi against the US dollar, this will probably imply that Chinese growth will be slightly lower than before, but remain on a high level of approximately 81/2 percent. During the first half of 2005, Japan continued its recovery. So far, it has mainly been based on ...
... with a small appreciation of the renminbi against the US dollar, this will probably imply that Chinese growth will be slightly lower than before, but remain on a high level of approximately 81/2 percent. During the first half of 2005, Japan continued its recovery. So far, it has mainly been based on ...
The Caucasus and Central Asia: Transitioning to Emerging
... Central banks in the region often lack independence, monetary policy has been pro-cyclical, and high rates of dollarization reflect continued weak confidence in many CCA countries. Progress has been uneven in restoring post-crisis fiscal positions and rebuilding fiscal buffers. Non-oil revenue remai ...
... Central banks in the region often lack independence, monetary policy has been pro-cyclical, and high rates of dollarization reflect continued weak confidence in many CCA countries. Progress has been uneven in restoring post-crisis fiscal positions and rebuilding fiscal buffers. Non-oil revenue remai ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... in an open economy where capital is mobile. In considering taxation in an open economy it is crucial to distinguish between taxes on savings and those on investment. As I use the terms here, taxes on savings refer to taxes on capital income received by home-country residents regardless of where the ...
... in an open economy where capital is mobile. In considering taxation in an open economy it is crucial to distinguish between taxes on savings and those on investment. As I use the terms here, taxes on savings refer to taxes on capital income received by home-country residents regardless of where the ...
Causes and Consequences of Persistently Low Interest Rates
... Takatoshi Ito and Randall Kroszner for their great efforts in producing this report, and to the participants at the Geneva Conference that took place on 5 May 2015 for their insightful assessments. We are also thankful to Martina Hengge for recording the discussions at the conference, and to Shreya ...
... Takatoshi Ito and Randall Kroszner for their great efforts in producing this report, and to the participants at the Geneva Conference that took place on 5 May 2015 for their insightful assessments. We are also thankful to Martina Hengge for recording the discussions at the conference, and to Shreya ...
NBER WORKING PAPER SERIES INTERNATIONAL BORROWING TO FINANCE INVESTMENT Working Paper No. 1865
... In section 2 the values for the control variables and the shadow prices were determined as functions of the state variables. Their long run values are therefore determined as the values of the functions evaluated at the steady state levels of b and k. ...
... In section 2 the values for the control variables and the shadow prices were determined as functions of the state variables. Their long run values are therefore determined as the values of the functions evaluated at the steady state levels of b and k. ...
Deutsche Bundesbank - Annual Report
... The current monetary policy regulations are included in the following special publication, which is, on written request, available to interested parties free of charge: Deutsche Bundesbank, Monetary policy regulations, ...
... The current monetary policy regulations are included in the following special publication, which is, on written request, available to interested parties free of charge: Deutsche Bundesbank, Monetary policy regulations, ...
NBER WORKING PAPER SERIES TARIFFS, EMPLOYMENT AND THE CURRENT ACCOUNT:
... and firstperiod output go down after an increase in the tariff rate (equations (3 & 4)). Tariff increases would lower the real wage "ex ante"; real wage indexation will, to prevent that, lead to an increase in the real domestic product wage and therefore to unemployment (qualifications to that resul ...
... and firstperiod output go down after an increase in the tariff rate (equations (3 & 4)). Tariff increases would lower the real wage "ex ante"; real wage indexation will, to prevent that, lead to an increase in the real domestic product wage and therefore to unemployment (qualifications to that resul ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
... encouraged to cut expenditures and raise taxes, and these procyclical discretionary fiscal policies exacerbated the downturns still further in country after country.” 4 “When the Fund entered East Asia, it forced countries to raise interest rates to what, in conventional terms, would be considered ...
... encouraged to cut expenditures and raise taxes, and these procyclical discretionary fiscal policies exacerbated the downturns still further in country after country.” 4 “When the Fund entered East Asia, it forced countries to raise interest rates to what, in conventional terms, would be considered ...
essays Why stricter rules threaten the eurozone
... on debtor countries contrasts with the self-righteous complacency shown in the creditor countries. Not only have the latter insisted that debtor countries implement the kind of structural reforms for which they have shown no enthusiasm themselves (like opening services to greater competition). But t ...
... on debtor countries contrasts with the self-righteous complacency shown in the creditor countries. Not only have the latter insisted that debtor countries implement the kind of structural reforms for which they have shown no enthusiasm themselves (like opening services to greater competition). But t ...
Republic Of Azerbaijan: 2016 Article IV Consultation—Press
... A number of negative shocks have impaired economic performance in Azerbaijan. Lower oil prices, weak regional growth, currency devaluations in its main trading partners, and a contraction in hydrocarbon production rapidly erased the large current account surplus that the country enjoyed during the o ...
... A number of negative shocks have impaired economic performance in Azerbaijan. Lower oil prices, weak regional growth, currency devaluations in its main trading partners, and a contraction in hydrocarbon production rapidly erased the large current account surplus that the country enjoyed during the o ...
GEOG3650 - Department of Geography, HKU
... The Nature and Role of MNC The MNC is a company that is headquartered in one country but controls productive facilities and sales outlets in other countries. Its operations involve flows of capital, goods, services, and managerial and technical personnel among its subsidiaries. Ultimately, it lead ...
... The Nature and Role of MNC The MNC is a company that is headquartered in one country but controls productive facilities and sales outlets in other countries. Its operations involve flows of capital, goods, services, and managerial and technical personnel among its subsidiaries. Ultimately, it lead ...
banco safra sa - Safra Net Banking
... the perspective of a broader time horizon. The government began implementing a reform agenda that is designed to enhance the competitiveness of the Brazilian economy and will have a significant impact in the medium to long term. First of all, a start was made on tax reform in the shape of payroll ta ...
... the perspective of a broader time horizon. The government began implementing a reform agenda that is designed to enhance the competitiveness of the Brazilian economy and will have a significant impact in the medium to long term. First of all, a start was made on tax reform in the shape of payroll ta ...
Euro area quarterly financial accounts
... Quarterly financial accounts as part of the euro area accounts Integrated accounts contribute to the ESCB’s assessment of risks to price stability and have enhanced not only monetary analysis, but also economic and financial stability analysis. This includes monitoring the relationships between fina ...
... Quarterly financial accounts as part of the euro area accounts Integrated accounts contribute to the ESCB’s assessment of risks to price stability and have enhanced not only monetary analysis, but also economic and financial stability analysis. This includes monitoring the relationships between fina ...
LEYR rev2 - Law and Economics Yearly Review
... counter analysis was that sooner or later, central banks would have to ‘serve up’ these contracts in the event of market crisis, also because some of the contracts were quasi-money. However, it was thought that the rationality of the market would never be pushed into generating serious crises, such ...
... counter analysis was that sooner or later, central banks would have to ‘serve up’ these contracts in the event of market crisis, also because some of the contracts were quasi-money. However, it was thought that the rationality of the market would never be pushed into generating serious crises, such ...
Fiscal and Financial Crises
... • Banks hold sovereign debt as collateral. A debt crisis leads to a credit crunch and a fall in real income. • Acharya, Drechsler and Schnabl( 2013) model a two way connec6on between fiscal crises and banking crises. • Bank bailouts lead to an increase in sovereign risk. This weakens the ban ...
... • Banks hold sovereign debt as collateral. A debt crisis leads to a credit crunch and a fall in real income. • Acharya, Drechsler and Schnabl( 2013) model a two way connec6on between fiscal crises and banking crises. • Bank bailouts lead to an increase in sovereign risk. This weakens the ban ...
Global Savings, Investments, and World Real
... the market, pushing real interest rates up along the savings-supply locus SASA. Between 1979 and 1983, however, interest rates seem to have been pushed higher, primarily owing to a reduction in global savings plans, as illustrated by the shift of the savings-supply curve from SASA to SBSB. In the pe ...
... the market, pushing real interest rates up along the savings-supply locus SASA. Between 1979 and 1983, however, interest rates seem to have been pushed higher, primarily owing to a reduction in global savings plans, as illustrated by the shift of the savings-supply curve from SASA to SBSB. In the pe ...
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.