Money, Interest Rates, and Exchange Rates
... long run, inflationary expectations will have an effect in the foreign exchange market. • They will affect exchange-rate expectations. • Suppose that expectations about inflation change as people receive news about the economy, but that the actual adjustment of prices occurs afterward, gradually. Co ...
... long run, inflationary expectations will have an effect in the foreign exchange market. • They will affect exchange-rate expectations. • Suppose that expectations about inflation change as people receive news about the economy, but that the actual adjustment of prices occurs afterward, gradually. Co ...
Financial intermediation and the international business cycle
... In this paper, we analyse the effects of introducing a banking sector into an otherwise canonical international real business cycle model (IRBC). In line with much of the literature, we find that the presence of a banking sector does not significantly amplify or attenuate the transmission of real se ...
... In this paper, we analyse the effects of introducing a banking sector into an otherwise canonical international real business cycle model (IRBC). In line with much of the literature, we find that the presence of a banking sector does not significantly amplify or attenuate the transmission of real se ...
Eight Strategies for Development in Comparison
... the economic performance of developing countries, mainly since the year 2000. Four traditional mainstream development strategies are discussed (Washington Consensus, neo-liberalism, “good governance” and MDGs) and three long-debated key strategic issues are reconsidered (inward or outward developmen ...
... the economic performance of developing countries, mainly since the year 2000. Four traditional mainstream development strategies are discussed (Washington Consensus, neo-liberalism, “good governance” and MDGs) and three long-debated key strategic issues are reconsidered (inward or outward developmen ...
Bank of England Quarterly Bulletin May 1999
... Early in the quarter, major government bond markets were supported by ‘safe-haven’ flows from emerging markets, especially Brazil. The upward shift in the yield curve was concentrated in late January and February, when some safe-haven flows were reversed, and when a number of data releases were key ...
... Early in the quarter, major government bond markets were supported by ‘safe-haven’ flows from emerging markets, especially Brazil. The upward shift in the yield curve was concentrated in late January and February, when some safe-haven flows were reversed, and when a number of data releases were key ...
Oil Prices and the Real Exchange Rate in Nigeria
... increase in oil price leads to a rise in the cost of production of non-tradable goods. The price of non-tradable goods will thus increase leading to an appreciation of the RER. The RER is also indirectly affected through its relation with disposable income. A rise in oil price reduces the consumers ...
... increase in oil price leads to a rise in the cost of production of non-tradable goods. The price of non-tradable goods will thus increase leading to an appreciation of the RER. The RER is also indirectly affected through its relation with disposable income. A rise in oil price reduces the consumers ...
Introducing Financial Frictions and Unemployment into a Small
... the interest rate that households receive is nominally non state-contingent. This gives rise to wealth e¤ects of the sort emphasized by Irving Fisher (1933). For example, when a shock occurs which drives the price level down, households receive a wealth transfer. This transfer is taken from entrepr ...
... the interest rate that households receive is nominally non state-contingent. This gives rise to wealth e¤ects of the sort emphasized by Irving Fisher (1933). For example, when a shock occurs which drives the price level down, households receive a wealth transfer. This transfer is taken from entrepr ...
NBER WORKING PAPER SERIES Richard Clarida Daniel Waldman
... because our model is one of inflation – not price level – targeting so that in the model a shock to inflation has a permanent effect on the price level. Since PPP holds in the long run of the model, the nominal exchange rate depreciates in the long run to an inflation shock, even though on impact it ...
... because our model is one of inflation – not price level – targeting so that in the model a shock to inflation has a permanent effect on the price level. Since PPP holds in the long run of the model, the nominal exchange rate depreciates in the long run to an inflation shock, even though on impact it ...
Monetary Regime Change and Business Cycles
... Monetary Regime Change and Business Cycles are constant in the two sub-periods, except for the monetary policy related ones.2 This allows us to estimate two separate policy rules, one for each regime, i.e., the target zone (TZ) period and the inflation targeting (IT) period. We then compare the pro ...
... Monetary Regime Change and Business Cycles are constant in the two sub-periods, except for the monetary policy related ones.2 This allows us to estimate two separate policy rules, one for each regime, i.e., the target zone (TZ) period and the inflation targeting (IT) period. We then compare the pro ...
Swaps
... A swap can be regarded as a convenient way of packaging forward contracts Although the swap contract is usually worth zero at the outset, each of the underlying forward contracts are not worth zero ...
... A swap can be regarded as a convenient way of packaging forward contracts Although the swap contract is usually worth zero at the outset, each of the underlying forward contracts are not worth zero ...
Current account reversals in industrial countries: does the exchange
... evidence suggests that the current account balance itself, a country’s openness to trade, its terms of trade and reserve coverage as well as growth in industrial economies and US interest rates are drivers of current account reversals in developing economies. Moreover, conducting a before-after anal ...
... evidence suggests that the current account balance itself, a country’s openness to trade, its terms of trade and reserve coverage as well as growth in industrial economies and US interest rates are drivers of current account reversals in developing economies. Moreover, conducting a before-after anal ...
Inflation in Latin American Countries
... periods of growth and development, government expenditures often exceed government revenues. Inefficient tax systems coupled with the inability to cut expenditures results in a fiscal deficit which is oftentimes financed by inflationary means such as monetization thereby exacerbating the whole situa ...
... periods of growth and development, government expenditures often exceed government revenues. Inefficient tax systems coupled with the inability to cut expenditures results in a fiscal deficit which is oftentimes financed by inflationary means such as monetization thereby exacerbating the whole situa ...
Understanding the Flow of Electronic Parts and Components in East
... exports because, as one country’s currency depreciates relative to its neighbors, its ep&c exports become more competitive relative to similar goods produced by other East Asian countries. Exchange rates affect the level of ep&c exports for this reason and also because exchange rate depreciations de ...
... exports because, as one country’s currency depreciates relative to its neighbors, its ep&c exports become more competitive relative to similar goods produced by other East Asian countries. Exchange rates affect the level of ep&c exports for this reason and also because exchange rate depreciations de ...
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... policy unable to speed the end of a recession. Beside that, he notes that inflation lubricates the labour market and makes it work more efficiently. Despite its opponents (See: Guender, Yooh On, 2005; Epstein, 2005), the number of inflation targeters is growing up. The level of targeted inflation is ...
... policy unable to speed the end of a recession. Beside that, he notes that inflation lubricates the labour market and makes it work more efficiently. Despite its opponents (See: Guender, Yooh On, 2005; Epstein, 2005), the number of inflation targeters is growing up. The level of targeted inflation is ...
United States: 2016 Article IV Consultation
... outcome of the referendum in the United Kingdom. Meanwhile, longstanding issues on the supply side continue to weigh on economic prospects, including low productivity growth, falling labor force participation, and rising poverty and wealth inequality. Directors agreed that the pace of interest rate ...
... outcome of the referendum in the United Kingdom. Meanwhile, longstanding issues on the supply side continue to weigh on economic prospects, including low productivity growth, falling labor force participation, and rising poverty and wealth inequality. Directors agreed that the pace of interest rate ...
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... also provides an example of how incentives for pesticide use are influenced by the total set of policies and regulations rather than by a single tariff or price policy. In particular, exchange rate policies can influence pesticide use because formulated pesticides or their technical (unformulated ac ...
... also provides an example of how incentives for pesticide use are influenced by the total set of policies and regulations rather than by a single tariff or price policy. In particular, exchange rate policies can influence pesticide use because formulated pesticides or their technical (unformulated ac ...
Monetary Policy Frameworks in the SAARC
... has progressed into a key policy tool to meet economy‘s desired goals, particularly maintaining price stability. The recent global financial crisis, however, has challenged this very fundamental role of monetary policy by revealing the fact that price stability on its own does not ensure financial s ...
... has progressed into a key policy tool to meet economy‘s desired goals, particularly maintaining price stability. The recent global financial crisis, however, has challenged this very fundamental role of monetary policy by revealing the fact that price stability on its own does not ensure financial s ...
Transmission mechanisms and inflation targeting
... during these years. The instruments used and intermediate targets pursued by monetary policy were also diverse. Targets for money supply, the exchange rate and the interbank interest rate were all used, often simultaneously. Even within the crawling band exchange rate regime, there was a system of ' ...
... during these years. The instruments used and intermediate targets pursued by monetary policy were also diverse. Targets for money supply, the exchange rate and the interbank interest rate were all used, often simultaneously. Even within the crawling band exchange rate regime, there was a system of ' ...
The role of bank loans and deposits in the monetary transmission
... is transmitted to the real economy has been one of the most challenging and crucial tasks in the conduct of monetary policy. A clear understanding of the monetary transmission channel can help in ensuring an effective and successful implementation of monetary policy. Besides, the post-Keynesian econ ...
... is transmitted to the real economy has been one of the most challenging and crucial tasks in the conduct of monetary policy. A clear understanding of the monetary transmission channel can help in ensuring an effective and successful implementation of monetary policy. Besides, the post-Keynesian econ ...
The Illusive Quest: Do International Capital Controls Contribute to Currency Stability?
... circumvent them. We postulate that international financial innovation also partly evolves as a means to circumvent legal and administrative controls on international capital movements. We address the first issue by measuring the effectiveness of capital controls over various sample periods, testing ...
... circumvent them. We postulate that international financial innovation also partly evolves as a means to circumvent legal and administrative controls on international capital movements. We address the first issue by measuring the effectiveness of capital controls over various sample periods, testing ...