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2. The practice of the gold standard
2. The practice of the gold standard

... Thus the exchange rate would strengthen by itself, without central bank action. Central banks could follow their own policies—could avoid following the rules of the game—as long as they did not cast doubt on their long-term commitment to do whatever was necessary in the last instance in order to mai ...
Sell government securities: Market
Sell government securities: Market

... in his/her own foreign-based bank When equal values of money are moving back and forth between nations, no real funds need to be transferred between nations because the payments are in balance Banks also trade currencies Copyright © 2006 Pearson Education Canada Inc. ...
An estimated two-country EA-US model with limited exchange rate
An estimated two-country EA-US model with limited exchange rate

... tion sector in a similar way to Burstein et al. (2003, 2005, 2007) and Corsetti and Dedola (2005). These three layers are likely to affect the ERPT towards import and consumption prices both in the short and in the long run. Staggered price setting and varying demand elasticity reduce the pass-thro ...
Economic environment - World Trade Organization
Economic environment - World Trade Organization

... The NBR fixes the levels of monetary aggregates and the inflation rate to be achieved, and uses, as its main monetary policy instruments, treasury bills, refinancing rates, and reserve requirement rates. The NBR, which does not have an independent committee for the formulation of monetary policy, is ...
The “Maple Bond” Market
The “Maple Bond” Market

... in the Canada-U.S. basis swap market were generally driven by large Canadian borrowers, predominantly the provincial governments and chartered banks, issuing U.S.-dollar debt in the U.S. market and swapping the proceeds back to Canadian dollars. The lack of transactions occurring in the opposite dir ...
editing method for the bulletin of the transilvania university
editing method for the bulletin of the transilvania university

... In antebellum USA, while the dollar was the standard unit of account, state dollars floated at different rates and the American states had independent fiscal policies with few interstate fiscal mechanisms to encourage political solidarity. It was even possible for the different states to borrow dire ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... South Korea, which pursued free-market economic policies, while unsuccessful governments smothered economic growth with government regulations. With sufficient economic reforms, including trade liberalization and an encouragement of foreign direct investment, the debtor countries will be able to gro ...
Crowding Out Redefined: The Role of Reserve Accumulation
Crowding Out Redefined: The Role of Reserve Accumulation

... is not asymmetric, and leaning against the wind of an appreciation has been an important driver of reserve accumulation since the 2007–09 financial crisis.10 A related literature has attempted to model reserve accumulation via a precautionary motive on the part of households or investors (Caballero ...
The Global Politics of Central Banking: A View
The Global Politics of Central Banking: A View

... States Federal Reserve announced the creation of reciprocal currency arrangements with the European Central Bank and Swiss National Bank (so-called “swap lines”) in order to maintain these foreign central banks’ capacity to provide dollar funding to financial institutions within their national juris ...
WNE UW - Derivatives Markets
WNE UW - Derivatives Markets

... the act of paying someone to assume a risk for you. The financial markets have created their own way of offering insurance against financial loss in the form of contracts called derivatives. A derivative is a financial instrument that offers a return based on the return of some other underlying asse ...
The Federal Reserve Engages the World
The Federal Reserve Engages the World

IOSR Journal of Economics and Finance (IOSR-JEF)
IOSR Journal of Economics and Finance (IOSR-JEF)

... concurrent decline of other sectors in the economy and has fueled massive migration to cities and led to increasingly wide spread poverty especially in rural areas. As a result, Nigeria’s job market has witnessed very high degree of unemployment, small wage and pitiable working environments (Adedipe ...
Capital Inflows and Balance of Payments Pressures
Capital Inflows and Balance of Payments Pressures

... of decades; namely, the period in the early 1990s, which peaked prior to the 1997 East Asian crisis, and the period that has been building up since early 2002. For instance, annual net capital inflows to EMEs averaged slightly over 4 percent of GDP during 2004–06. These increases are a notch below t ...
The impossibility of setting a single, context independent, non
The impossibility of setting a single, context independent, non

... measured subjective wellbeing indicates that the elasticity of marginal utility changes in a non-linear fashion or even that in the long run the level of individual consumption has no effect upon wellbeing due to our ability to adapt to it6. Secondly the opportunity costs of capital with respect to ...
the Great Depression in Germany
the Great Depression in Germany

“Development of an explicit rule of monetary policy for the economy
“Development of an explicit rule of monetary policy for the economy

... rule’s formalization; consideration of the development level of the long-term securities market. It should be noted that in selecting the monetary rule’s basic form it is important to take into account some national peculiarities of the functioning of the money market, the financial system and the r ...
The impact of commodity price shocks in a major producing
The impact of commodity price shocks in a major producing

... The economics of exhaustible resources has interested researchers for a long time.1 One direction of research focuses on modeling and forecasting commodity prices (e.g. Labys, 2006), while another, more related to the present paper, analyzes how fluctuations in commodity prices affect economic vari ...
Lectures on International Money
Lectures on International Money

... – Store of value: In the case of gold we had uncertainty about the future value of gold. Here we must add the uncertainty about the bank. And we still (normally) get no interest rate. So this bill is probably dominated as a store of value. The currencies above are all based on commodities. That mean ...
Real Exchange Rate Dynamics in Sticky-Price Models with Capital
Real Exchange Rate Dynamics in Sticky-Price Models with Capital

... interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. ...
1 FINANCIAL POLICIES AND THE BANKING SYSTEM IN ZAMBIA
1 FINANCIAL POLICIES AND THE BANKING SYSTEM IN ZAMBIA

Economic Papers. 173. Latin America`s integration processes in the
Economic Papers. 173. Latin America`s integration processes in the

... by looking at the EU’s experience with EMU and by applying the theory of optimum currency areas (OCA) and other criteria proposed by the more recent literature. The analysis based on the OCA criteria suggests that, with the possible exception of NAFTA, none of the subregions examined should engage i ...
DEPARTAMENTO DE ECONOMIA PUC
DEPARTAMENTO DE ECONOMIA PUC

... Recovery was steady after some difficulties in the early 1950’s. In the late 1920’s a significant trade surplus was still the rule as in spite of the inflow of capital the services account was negative due to interest payments, profit remittances, freight payments, and immigrants’ remittances and th ...
Are Banks And Stock Markets Positively Related?
Are Banks And Stock Markets Positively Related?

... However, the bank-based financial system has its own challenges. It is argued that a bank-based system is vulnerable to problems, such as inefficient capital allocation, along with the intimate relationship between banks and firms, and most of all, a higher debt-ratio. The moral hazard problem in th ...
An Impact of Macroeconomic Variables on the functioning of Indian
An Impact of Macroeconomic Variables on the functioning of Indian

... the countries. The entire import and export process of any country depends upon the exchange rate of his currency. If, the country currency will depreciate immediately increase its import value and decrease its exports value or vice versa. If the domestic currency is stronger, it adversely affects t ...
Monetary Policy with Head Winds: Issues and Trade-offs
Monetary Policy with Head Winds: Issues and Trade-offs

... Note: Previous recession periods are: Argentina (1998.Q4 – 2002.Q2); Brazil (1997.Q4 – 1998.Q2); Chile (1998.Q3 – 1999.Q4); Colombia (1998.Q3 – 1999.Q4); Mexico (1995.Q1 – 1996.Q1), and Peru (1997.Q2 – 1999.Q1). Current recession periods are: Argentina (2008.Q3 – 2009.Q2); Brazil (2008.Q4 – 2009.Q2) ...
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Currency intervention

Currency intervention, also known as foreign exchange market intervention, or currency manipulation, occurs when a government buys or sells foreign currency to push the exchange rate of its own currency away from equilibrium value or to prevent the exchange rate from moving toward its equilibrium value.Generally, central banks intervene in foreign exchange markets in order to achieve a variety of overall economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy and how they are reflected in currency manipulation depend on a number of factors, including the stage of a country’s development, the degree of financial market development and integration, and the country’s overall vulnerability to shocks.
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