Economic Explorer 2 - Monetary Authority of Singapore
... powerful influence on domestic prices, either directly or indirectly. Changes in the exchange rate to offset changes in foreign price levels would thus have a significant effect on inflation. Besides its direct impact on import prices, there is another, more indirect channel by which the exchange ra ...
... powerful influence on domestic prices, either directly or indirectly. Changes in the exchange rate to offset changes in foreign price levels would thus have a significant effect on inflation. Besides its direct impact on import prices, there is another, more indirect channel by which the exchange ra ...
Gold: First Eagle`s Potential Hedge Against Extreme Outcomes Sep
... mined 4,000 years ago in Egypt looks the same as an ounce of gold mined last year in Quebec. Gold is virtually indestructible. It is one of the densest real assets and its costs of storage are favorable versus alternative commodities. Also, gold cannot be counterfeited — alchemy remains a myth today ...
... mined 4,000 years ago in Egypt looks the same as an ounce of gold mined last year in Quebec. Gold is virtually indestructible. It is one of the densest real assets and its costs of storage are favorable versus alternative commodities. Also, gold cannot be counterfeited — alchemy remains a myth today ...
“From a risk perspective, the socially optimal system may be a
... once recognised, they reveal a fairly robust agenda for improving economic welfare. Take the equity risk premium. Siegel (1994) found for US data between 1802 and 1992 that 20-year real returns on the equity market have been less volatile than the corresponding real returns on either long bonds or t ...
... once recognised, they reveal a fairly robust agenda for improving economic welfare. Take the equity risk premium. Siegel (1994) found for US data between 1802 and 1992 that 20-year real returns on the equity market have been less volatile than the corresponding real returns on either long bonds or t ...
U.S. and Global Imbalances: Can Dark Matter Prevent a Big Bang
... includes the selling of unaccounted insurance, which generates a premium. In short, the US is a net provider of knowledge, liquidity and insurance. As the world became more global financially, the increasing asset value of these services underlies the spectacular increase in dark matter over the las ...
... includes the selling of unaccounted insurance, which generates a premium. In short, the US is a net provider of knowledge, liquidity and insurance. As the world became more global financially, the increasing asset value of these services underlies the spectacular increase in dark matter over the las ...
General government gross debt in Brazil
... different impact on the central banks balance sheets. In countries that follow an inflation targeting regime, as is the case of Brazil, open market operations may play an essential role in the task of controlling interest rates and liquidity. The Brazilian institutional arrangement set adequate seg ...
... different impact on the central banks balance sheets. In countries that follow an inflation targeting regime, as is the case of Brazil, open market operations may play an essential role in the task of controlling interest rates and liquidity. The Brazilian institutional arrangement set adequate seg ...
Mankiw 6e PowerPoints
... Dec. 22: central bank’s reserves nearly gone. It abandons the fixed rate and lets e float. ...
... Dec. 22: central bank’s reserves nearly gone. It abandons the fixed rate and lets e float. ...
Mankiw 6e PowerPoints
... Dec. 22: central bank’s reserves nearly gone. It abandons the fixed rate and lets e float. ...
... Dec. 22: central bank’s reserves nearly gone. It abandons the fixed rate and lets e float. ...
Purchasing power parity
... traded goods in contrast to non-traded ones. Also, currencies are traded for purposes ...
... traded goods in contrast to non-traded ones. Also, currencies are traded for purposes ...
No.376 / September 2011 External Imbalances and Macroeconomic Policy in New Zealand
... world economy takes hold (Blanchard and Milesi-Ferretti 2010, Gagnon 2011). In terms of the accumulated net liability position, Figure 2 shows that New Zealand has a large net external liability position. While the net position is less negative than in the mid-1990s, it has deteriorated from its loc ...
... world economy takes hold (Blanchard and Milesi-Ferretti 2010, Gagnon 2011). In terms of the accumulated net liability position, Figure 2 shows that New Zealand has a large net external liability position. While the net position is less negative than in the mid-1990s, it has deteriorated from its loc ...
understanding the great depression in the united
... and its roots therefore lay in the “ideology of the Gold Standard”. For Eichengreen (1995) the ideology of the Gold Standard, coupled with a breakdown of international cooperation among key central banks, produced a slump more severe than any previously recorded. That the shock, whatever its origins ...
... and its roots therefore lay in the “ideology of the Gold Standard”. For Eichengreen (1995) the ideology of the Gold Standard, coupled with a breakdown of international cooperation among key central banks, produced a slump more severe than any previously recorded. That the shock, whatever its origins ...
Asian Holdings of US Treasury Securities: Trade Integration as a
... specific asset in the market. In Asia, however, portfolio weights of United States (US) Treasury bonds surpass their market weight. Transaction motive and the exchange rate regime play significant roles behind this strong preference. Heavier weights on US dollardenominated assets are due to the his ...
... specific asset in the market. In Asia, however, portfolio weights of United States (US) Treasury bonds surpass their market weight. Transaction motive and the exchange rate regime play significant roles behind this strong preference. Heavier weights on US dollardenominated assets are due to the his ...
Playing from Strength: Canada`s Trade Deal Priorities for Financial
... services, and ranks the markets which Canadian trade policymakers should prioritize in order to exploit these advantages. To evaluate high priority countries for Canada’s trade negotiators, we created a ranking methodology. Specifically, we sought to answer two questions that evaluate attractiveness ...
... services, and ranks the markets which Canadian trade policymakers should prioritize in order to exploit these advantages. To evaluate high priority countries for Canada’s trade negotiators, we created a ranking methodology. Specifically, we sought to answer two questions that evaluate attractiveness ...
The Measurement of Money Supply
... The second aggregate M1, comprises currency held outside the banking system and the current account deposit liabilities of commercial banks held for transactive purposes.3 It may also include some foreign currency deposits that are used for domestic transactions. This definition implies that only a ...
... The second aggregate M1, comprises currency held outside the banking system and the current account deposit liabilities of commercial banks held for transactive purposes.3 It may also include some foreign currency deposits that are used for domestic transactions. This definition implies that only a ...
Literature Summary Chapter 1 – International Economics is different
... H-O theory: Countries export the products that use their abundant factors intensively and import the products using their scarce factors intensively. ! the key to comparative costs lies in factor proportions labor-abundant: a country is relatively labor-abundant if it has a higher ratio of labor to ...
... H-O theory: Countries export the products that use their abundant factors intensively and import the products using their scarce factors intensively. ! the key to comparative costs lies in factor proportions labor-abundant: a country is relatively labor-abundant if it has a higher ratio of labor to ...
the optimal path of monetary expansion
... purchases abroad, sell the rest to other residents, and the banking system for domestic currency. The change in net foreign assets held by the banking system will have a direct effect on monetary expansion. This could distort the optimal supply of money rule. Options faced by central bank: Neu ...
... purchases abroad, sell the rest to other residents, and the banking system for domestic currency. The change in net foreign assets held by the banking system will have a direct effect on monetary expansion. This could distort the optimal supply of money rule. Options faced by central bank: Neu ...
dollar deposed stress test scenario
... catastrophes. A large economic or financial catastrophe seldom affects just one part of the system. The historical record shows that multiple market catastrophes tend to occur at the same time and impacts cascade from one crisis to the next. The recent Great Financial Crisis (GFC) is one example of ...
... catastrophes. A large economic or financial catastrophe seldom affects just one part of the system. The historical record shows that multiple market catastrophes tend to occur at the same time and impacts cascade from one crisis to the next. The recent Great Financial Crisis (GFC) is one example of ...
The Use of Financial Derivatives by Canadian Firms
... most significant participants in derivatives markets, non-financial Canadian corporations are also important; for example, they are counterparties to around 15 per cent of the turnover in foreign exchange (FX) derivatives in Canada.1 This article provides stylized facts about the use of financial de ...
... most significant participants in derivatives markets, non-financial Canadian corporations are also important; for example, they are counterparties to around 15 per cent of the turnover in foreign exchange (FX) derivatives in Canada.1 This article provides stylized facts about the use of financial de ...
2.2. Sustainability of external positions
... balance of payments statistics, which mainly represents loans and deposits transferred from parent institutions into their banking branches and subsidiaries in Malta. As Section 3 discusses, these very large capital flows do not stay in the country but are invested abroad either as loans or deposits ...
... balance of payments statistics, which mainly represents loans and deposits transferred from parent institutions into their banking branches and subsidiaries in Malta. As Section 3 discusses, these very large capital flows do not stay in the country but are invested abroad either as loans or deposits ...
Macro Handout 19: Inflation Targeting and
... January 2015 – December 2015: More Political Turmoil and a Deal Syriza, the anti-austerity coalition party, wins the election in January. It ran on a platform that the austerity program endorsed was too severe and it would negotiate a better deal. For several months, negotiations took place, but ...
... January 2015 – December 2015: More Political Turmoil and a Deal Syriza, the anti-austerity coalition party, wins the election in January. It ran on a platform that the austerity program endorsed was too severe and it would negotiate a better deal. For several months, negotiations took place, but ...
File - Mrs. Roberts SAB
... an opinion about the Chapter Issue: Which economic ideas have most influenced the development of contemporary economic globalization? ...
... an opinion about the Chapter Issue: Which economic ideas have most influenced the development of contemporary economic globalization? ...
NBER WORKING PAPER SERIES THE OPEN ECONOMY: IMPLICATIONS FOR FISCAL Stanley Fischer
... period 1954 to 1983. The underlying data are year to year changes in the ratio of each category of spending to GNP, expressed in percent.6 The data in Table 3 are the variances of those changes. Exports and imports each vary less than the other components of GNP in absolute terms, but despite the lo ...
... period 1954 to 1983. The underlying data are year to year changes in the ratio of each category of spending to GNP, expressed in percent.6 The data in Table 3 are the variances of those changes. Exports and imports each vary less than the other components of GNP in absolute terms, but despite the lo ...
What`s changed in the international financial system and its
... and many middle-income countries clearly underscores the IMF’s ongoing obsession with “tightening monetary and fiscal policy.”13 In other words, the conditions may have changed in name and form, but they are still alive and well. As Chapter 3 by Bhumika Muchhala and Nuria Molina notes, these new con ...
... and many middle-income countries clearly underscores the IMF’s ongoing obsession with “tightening monetary and fiscal policy.”13 In other words, the conditions may have changed in name and form, but they are still alive and well. As Chapter 3 by Bhumika Muchhala and Nuria Molina notes, these new con ...
Lecture 1 Introduction – Geography, Demography and Economics
... Blanqui in the History of Political Economy in Europe “One of the most interesting works published at this period by Mr. Henry Thornton, had for its aim the justification of the suspension of specie payments; and although it abound in errors, no other work has ever given a clearer comprehension of ...
... Blanqui in the History of Political Economy in Europe “One of the most interesting works published at this period by Mr. Henry Thornton, had for its aim the justification of the suspension of specie payments; and although it abound in errors, no other work has ever given a clearer comprehension of ...
World Asset Markets and the Global Financial Cycle
... To decompose fluctuations in risky asset prices into global, regional and asset-specific components we use a Dynamic Factor Model (Forni et al., 2000; Stock and Watson, 2002a,b) with loading restrictions as in Bańbura et al. (2011). The dynamic interaction between US monetary policy and the main ex ...
... To decompose fluctuations in risky asset prices into global, regional and asset-specific components we use a Dynamic Factor Model (Forni et al., 2000; Stock and Watson, 2002a,b) with loading restrictions as in Bańbura et al. (2011). The dynamic interaction between US monetary policy and the main ex ...
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.