Purchasing Power Parity and Country Characteristics
... The purpose of this paper is to move beyond the developed/developing country dichotomy to investigate the role of individual country characteristics on PPP. This requires a sample that includes both developed and developing countries because the former contain too little variation to address the qu ...
... The purpose of this paper is to move beyond the developed/developing country dichotomy to investigate the role of individual country characteristics on PPP. This requires a sample that includes both developed and developing countries because the former contain too little variation to address the qu ...
Real Exchange Rates and International Competitiveness
... It follows that New Zealand’s international price competitiveness increases when its price level decreases or its nominal exchange rate (expressed as foreign currency units per NZ dollar) depreciates relative to the foreign economy, or foreign price level increases. Nominal exchange rate depreciatio ...
... It follows that New Zealand’s international price competitiveness increases when its price level decreases or its nominal exchange rate (expressed as foreign currency units per NZ dollar) depreciates relative to the foreign economy, or foreign price level increases. Nominal exchange rate depreciatio ...
Productivity Spillovers, Terms of Trade and the `Home Market Effect`
... that output and consumption in these countries are high relative to the rest of the world, but their real exchange rate (appropriately measured as to account for product varieties) tends to be weaker. Analogously, when government spending is biased towards domestic goods, countries with a larger …sc ...
... that output and consumption in these countries are high relative to the rest of the world, but their real exchange rate (appropriately measured as to account for product varieties) tends to be weaker. Analogously, when government spending is biased towards domestic goods, countries with a larger …sc ...
Chapter 19 - Columbia College
... Learning Objectives After studying this chapter, you will be able to ...
... Learning Objectives After studying this chapter, you will be able to ...
Risk - Minds on the Markets
... Interest Rate Risk Bonds can be defined in terms of how they are priced. Par bond: A bond with a coupon in line with rates offered in the market. Discount bond: A bond with a coupon below rates offered in the market. Premium bond: A bond with a coupon above rates offered in the market. ...
... Interest Rate Risk Bonds can be defined in terms of how they are priced. Par bond: A bond with a coupon in line with rates offered in the market. Discount bond: A bond with a coupon below rates offered in the market. Premium bond: A bond with a coupon above rates offered in the market. ...
Twin Deficit Hypothesis: The Case of Ukraine
... inflation, the inflation tax will obviously be zero, but seigniorage is still being collected unless there is no growth in real cash balances. As a way of budget deficit financing seigniorage revenue has a certain limit. As inflation becomes very high, households may use foreign currency for transac ...
... inflation, the inflation tax will obviously be zero, but seigniorage is still being collected unless there is no growth in real cash balances. As a way of budget deficit financing seigniorage revenue has a certain limit. As inflation becomes very high, households may use foreign currency for transac ...
Structural Adjustment and Reform in Developing Countries
... ineffective, but may actually prove counterproductive, if other elements are not in place. Trade policy reform aimed at reallocating productive resources in line with comparative advantage will not be effective if controls over production and investment prevent such reallocation from taking place. T ...
... ineffective, but may actually prove counterproductive, if other elements are not in place. Trade policy reform aimed at reallocating productive resources in line with comparative advantage will not be effective if controls over production and investment prevent such reallocation from taking place. T ...
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... agreed upon for a new regulation of the financial markets. It is also good that there has been close co-operation with our French partners. I would like to see the German-French partnership show even greater leadership. Because as necessary as it is to have a new global financial order, in political ...
... agreed upon for a new regulation of the financial markets. It is also good that there has been close co-operation with our French partners. I would like to see the German-French partnership show even greater leadership. Because as necessary as it is to have a new global financial order, in political ...
Seminar Paper No. 644 NOMINAL INCOME TARGETING IN AN OPEN-ECONOMY OPTIMIZING MODEL by
... treats government purchases more appropriately. But in any event, if policyinstrument adjustments are based on expected future target discrepancies, rather than past misses, then this issue is not directly relevant. Quite recently a novel and rather extreme argument against NIT has been put forth by ...
... treats government purchases more appropriately. But in any event, if policyinstrument adjustments are based on expected future target discrepancies, rather than past misses, then this issue is not directly relevant. Quite recently a novel and rather extreme argument against NIT has been put forth by ...
Aggregate demand and the slowdown of Brazilian economic growth
... The purpose of this paper is to argue that this sharp slowdown in the growth rate of the Brazilian economy since 2011 can be explained predominantly as due to changes in the orientation of domestic macroeconomic policy, rather than to changes in the external conditions of trade and finance. Moreover ...
... The purpose of this paper is to argue that this sharp slowdown in the growth rate of the Brazilian economy since 2011 can be explained predominantly as due to changes in the orientation of domestic macroeconomic policy, rather than to changes in the external conditions of trade and finance. Moreover ...
Sebastian NEER WORKING PAPER SERIES OF CAPITAL CONTROLS AND ROLE
... JJ In general, there are as many possible measures of the real exchange rates as tradable goods. In the set up presented here, there is the exportables real exchange rate, l/q (l/Q), and the importables real exchange rate, p/q (P/Q). In what follows, we deal only with the former definition although ...
... JJ In general, there are as many possible measures of the real exchange rates as tradable goods. In the set up presented here, there is the exportables real exchange rate, l/q (l/Q), and the importables real exchange rate, p/q (P/Q). In what follows, we deal only with the former definition although ...
mmi14-Wills 19106663 en
... open economies. We extend the small open economy model of Gali and Monacelli (2005, 2008) to allow for anticipated changes in wealth. As the model assumes perfect access to international borrowing it is best suited to oil discoveries in developed countries, like Australia, Canada, Norway, the UK and ...
... open economies. We extend the small open economy model of Gali and Monacelli (2005, 2008) to allow for anticipated changes in wealth. As the model assumes perfect access to international borrowing it is best suited to oil discoveries in developed countries, like Australia, Canada, Norway, the UK and ...
Seminar Paper No. 740 AN ESTIMATED DSGE MODEL FOR SWEDEN
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
... Moreover, we assume the existence of frictions in …nancial markets that create a wedge between the returns on domestic and foreign assets. As in Lindé, Nessén, and Söderström (2004), this risk premium is assumed to be a decreasing function of the country’s net foreign asset position. Price stability ...
Course 5B Investment Management and
... Apply the appropriate principal methods (i.e. the standard Black-Scholes model and its variations), other models of a stochastic nature and numerical procedures in the valuation of equity, currency and commodity related derivatives. ...
... Apply the appropriate principal methods (i.e. the standard Black-Scholes model and its variations), other models of a stochastic nature and numerical procedures in the valuation of equity, currency and commodity related derivatives. ...
Effects of monetary policy on the $ / £ exchange rate. Is there a
... example, Mumtaz and Surico (2009) applied a factor augmented VAR with the UK as the domestic country and 17 other industrialized countries as the foreign block. For the period 1974Q1 to 2005Q1, they find no delayed overshooting. ...
... example, Mumtaz and Surico (2009) applied a factor augmented VAR with the UK as the domestic country and 17 other industrialized countries as the foreign block. For the period 1974Q1 to 2005Q1, they find no delayed overshooting. ...
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... million to 20 million, but agricultural labor fell as a proportion from over half to just onethird. With such rapid population growth, the population is demographically quite young, posing a challenge for the economy to absorb the burgeoning cohort of new entrants into the labor force. Overall, GDP ...
... million to 20 million, but agricultural labor fell as a proportion from over half to just onethird. With such rapid population growth, the population is demographically quite young, posing a challenge for the economy to absorb the burgeoning cohort of new entrants into the labor force. Overall, GDP ...
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... also play a key role in model properties, through the determination of the price-output split of nominal GDP growth over time. Specific national institutions can be expected t o play an important role in this respect. As regards the structure and development of financial markets and institutions, th ...
... also play a key role in model properties, through the determination of the price-output split of nominal GDP growth over time. Specific national institutions can be expected t o play an important role in this respect. As regards the structure and development of financial markets and institutions, th ...
on the measurement of market-oriented reforms
... More precisely, although coordination between fiscal and ...
... More precisely, although coordination between fiscal and ...
Effects of U.S. Inflation on Hong Kong and Singapore Abstract
... two Far East economies are considered to be small open economies with similar economic characteristics but different exchange rate arrangements. The U.S. is chosen as the “large” economy in the empirical analysis given its dominant role in the global economic stage. It is noted that both Hong Kong a ...
... two Far East economies are considered to be small open economies with similar economic characteristics but different exchange rate arrangements. The U.S. is chosen as the “large” economy in the empirical analysis given its dominant role in the global economic stage. It is noted that both Hong Kong a ...
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... real exchange rate tends to move toward purchasing power parity (PPP) in the very long run with a slow speed of convergence (the half-life of convergence is 3 or 4 years). Thus, the important feature of the U.S. dollar movements under the floating exchange rate system is that they are characterized ...
... real exchange rate tends to move toward purchasing power parity (PPP) in the very long run with a slow speed of convergence (the half-life of convergence is 3 or 4 years). Thus, the important feature of the U.S. dollar movements under the floating exchange rate system is that they are characterized ...
Building a Kenyan Monetary Regime for the 21 Century
... on monetary-targeting and inflation-targeting. We pay particular attention on the latter, however, explicitly recognizing the strengthening consensus view that formal inflation targeting (IT) offers a coherent framework for the conduct of monetary policy, not only for industrialized and established ...
... on monetary-targeting and inflation-targeting. We pay particular attention on the latter, however, explicitly recognizing the strengthening consensus view that formal inflation targeting (IT) offers a coherent framework for the conduct of monetary policy, not only for industrialized and established ...
Competitiveness and its leverage in a currency union
... sluggish than it would be if the country were not in a currency union but it is still operative. It may even be more sluggish in the case of a country that accounts for a large share of the external trade and weighs heavily in the determination of the exchange rate. In such a case, any given reducti ...
... sluggish than it would be if the country were not in a currency union but it is still operative. It may even be more sluggish in the case of a country that accounts for a large share of the external trade and weighs heavily in the determination of the exchange rate. In such a case, any given reducti ...
Chapter 15: Options on stock indices and currencies
... months. The current portfolio value is $25M. The manager decides on a 90% hedge by purchasing 6-month puts on the S&P500 index. The portfolio’s beta with the S&P500 index is 2.4. The S&P500 index stands at a level of 1,250 points and its dollar multiplier is $100. The annual riskfree rate is 10%, wh ...
... months. The current portfolio value is $25M. The manager decides on a 90% hedge by purchasing 6-month puts on the S&P500 index. The portfolio’s beta with the S&P500 index is 2.4. The S&P500 index stands at a level of 1,250 points and its dollar multiplier is $100. The annual riskfree rate is 10%, wh ...