del01-Stein 221109 en
... R(T) of traded goods in the two countries [equation (2a)] and R(NT) an "internal" price ratio [equation (2b)]. The "law of one price" for traded goods is that R(T) = C a constant. The BalassaSamuelson (B-S) effect, represented by variable R(NT) the ratio of non-traded/traded goods in the two areas, ...
... R(T) of traded goods in the two countries [equation (2a)] and R(NT) an "internal" price ratio [equation (2b)]. The "law of one price" for traded goods is that R(T) = C a constant. The BalassaSamuelson (B-S) effect, represented by variable R(NT) the ratio of non-traded/traded goods in the two areas, ...
NBER WORKING PAPER SERIES DYNAMIC STRATEGIC MONETARY POLICIES AND COORDINATION IN INTERDEPENDENT ECONOMIES
... the so-called feedback information pattern (for both countries) as dictated by (1 3b)? Using the recursive technique given in Basar and Olsder (1982, Chapter 6), the solution of the dynamic game can be shown to be unique, and linear in the current value of the state, yielding the expressions given b ...
... the so-called feedback information pattern (for both countries) as dictated by (1 3b)? Using the recursive technique given in Basar and Olsder (1982, Chapter 6), the solution of the dynamic game can be shown to be unique, and linear in the current value of the state, yielding the expressions given b ...
Towards a Strategy for Economic Growth in Uruguay
... end of 1990. From then on it entered a strong real appreciation trend until its crisis in 2002. By contrast, while Argentina and Brazil also exhibit these broad trends, they show much more volatility. In addition, their depreciations in the late 1990s and earlier in this decade happened at different ...
... end of 1990. From then on it entered a strong real appreciation trend until its crisis in 2002. By contrast, while Argentina and Brazil also exhibit these broad trends, they show much more volatility. In addition, their depreciations in the late 1990s and earlier in this decade happened at different ...
Schmidt-del05 1101825 de
... in Betts and Devereux (2001), he constructs a weighted average of non-U.S. G-7 countries to proxy for the rest of the world. Besides an - albeit smaller - positive transmission e ect on foreign output, Kim also finds an increase in foreign aggregate demand in response to an expansionary U.S. moneta ...
... in Betts and Devereux (2001), he constructs a weighted average of non-U.S. G-7 countries to proxy for the rest of the world. Besides an - albeit smaller - positive transmission e ect on foreign output, Kim also finds an increase in foreign aggregate demand in response to an expansionary U.S. moneta ...
Earlier versions of
... its natural level occur only because of deviations of the domestic price level from the value that was anticipated in the previous period. natural level is itself stochastic. ...
... its natural level occur only because of deviations of the domestic price level from the value that was anticipated in the previous period. natural level is itself stochastic. ...
A: An investment
... The risk for one security can be calculated using the standard deviation measure. Why? Std deviation is the measure of dispersion of a data set. So, in terms of returns, std deviation actually represents RISK of that investment. The standard deviation is a reliable measure of ...
... The risk for one security can be calculated using the standard deviation measure. Why? Std deviation is the measure of dispersion of a data set. So, in terms of returns, std deviation actually represents RISK of that investment. The standard deviation is a reliable measure of ...
Exchange Rates and Fundamentals: Closing a Two
... condition of consumption goods, which is equivalent to the de-trended resource constraint, depends on the TFP differential. In this case, the non-stationary TFP differential makes the de-trended resource constraint violate the balanced growth restriction. Finally, the third concern is that NR omit the ...
... condition of consumption goods, which is equivalent to the de-trended resource constraint, depends on the TFP differential. In this case, the non-stationary TFP differential makes the de-trended resource constraint violate the balanced growth restriction. Finally, the third concern is that NR omit the ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... economic agents, different mixes of these strategies have different implications both for the severity of a currency crisis and for postcrisis inflation rates. We analyze these implications using a version of the model in Burnside, Eichenbaum, and Rebelo (2001) in which a currency crisis is triggered ...
... economic agents, different mixes of these strategies have different implications both for the severity of a currency crisis and for postcrisis inflation rates. We analyze these implications using a version of the model in Burnside, Eichenbaum, and Rebelo (2001) in which a currency crisis is triggered ...
Currency Trader
... removing credit as an obstacle to the search for new liquidity and brings a regulated product to a market with an appetite for regulation. The CME operates a capital-efficient market because it functions as a central counterparty (CCP) that assumes responsibility for trade clearing. While some banks ...
... removing credit as an obstacle to the search for new liquidity and brings a regulated product to a market with an appetite for regulation. The CME operates a capital-efficient market because it functions as a central counterparty (CCP) that assumes responsibility for trade clearing. While some banks ...
belloc mmi08 6675559 en
... which shows that, given DBT U S , BT U S and , the quantity DBT EU is completely determined. Thus (11) can e e be omitted from estimation. 3 For the long run characteristics of the system composed of (16) and (15) see the mathematical appendix A. ...
... which shows that, given DBT U S , BT U S and , the quantity DBT EU is completely determined. Thus (11) can e e be omitted from estimation. 3 For the long run characteristics of the system composed of (16) and (15) see the mathematical appendix A. ...
Recap Section F
... household spending might be rising. That is because notes and coin are still an important means of payment, despite the growth in the use of debit and credit cards. If people withdraw notes from cash machines, they are likely to use them for spending in the near future. An increase in notes and coin ...
... household spending might be rising. That is because notes and coin are still an important means of payment, despite the growth in the use of debit and credit cards. If people withdraw notes from cash machines, they are likely to use them for spending in the near future. An increase in notes and coin ...
Policy Rate, Mortgage Rate and Housing Prices
... New Zealand have been less severe as reductions in nominal house prices after 2008 were relatively small (10-15% nominal price reductions on average across various cities), with these losses since recovered. There is thus a reasonable argument that asset prices, and housing prices in particular, mat ...
... New Zealand have been less severe as reductions in nominal house prices after 2008 were relatively small (10-15% nominal price reductions on average across various cities), with these losses since recovered. There is thus a reasonable argument that asset prices, and housing prices in particular, mat ...
Stroombergen_Reisinger
... In Scenario 2, the CO2 price is higher than in Scenario 1 due to the lower prices on nonCO2 gases. The contention that a lower weight on methane emissions would lower the cost to New Zealand of meeting any given proportionate emissions obligation, is not supported by these results – at least not for ...
... In Scenario 2, the CO2 price is higher than in Scenario 1 due to the lower prices on nonCO2 gases. The contention that a lower weight on methane emissions would lower the cost to New Zealand of meeting any given proportionate emissions obligation, is not supported by these results – at least not for ...
NBER WORKING PAPER SERIES ON THE FUNDAMENTALS OF SELF-FULFILLING Craig Burnside Martin Eichenbaum
... profits during the fixed exchange regime and lose money when the currency is devalued. It is the latter feature that allows them to minimize their residual value in bankruptcy states, so that VR(SD) = wL. As a consequence, there are no assets, after bankruptcy costs, for the government to seize in o ...
... profits during the fixed exchange regime and lose money when the currency is devalued. It is the latter feature that allows them to minimize their residual value in bankruptcy states, so that VR(SD) = wL. As a consequence, there are no assets, after bankruptcy costs, for the government to seize in o ...
Issues on the choice of Exchange Rate Regimes1 Ashwin Moheeput
... boards forego this advantage by restricting money supply by foreign reserves level. Fiscal rectitude is enforced as a safeguard mechanism that ensures that reckless or profligate fiscal policy does not impinge on the government’s attempt to lower inflation rate. ...
... boards forego this advantage by restricting money supply by foreign reserves level. Fiscal rectitude is enforced as a safeguard mechanism that ensures that reckless or profligate fiscal policy does not impinge on the government’s attempt to lower inflation rate. ...
NBER WORKING PAPER SERIES MONETARY STABILIZATION, INTERVENTION AND REAL APPRECIATION Rudiger Dornbusch
... Point A' thus indicates the new long—run equilibrium. Starting from the initial equilibrium we have,as yet, ...
... Point A' thus indicates the new long—run equilibrium. Starting from the initial equilibrium we have,as yet, ...
5
... We shall discuss these two approaches and rest of this paper with fol!owing notation. Let (pl,ql), (p2,q2)...(pM,qM) represent M pairs of price and quantity vectors of dimension N, the number of commodities. Then Pij and qij stand for price and quantity, respectively, of ith commodity in jth pair of ...
... We shall discuss these two approaches and rest of this paper with fol!owing notation. Let (pl,ql), (p2,q2)...(pM,qM) represent M pairs of price and quantity vectors of dimension N, the number of commodities. Then Pij and qij stand for price and quantity, respectively, of ith commodity in jth pair of ...
International Economics: Feenstra/Taylor 2/e
... Chapter 7: Output, Exchange Rates, and Macroeconomic Policies in the Short Run ...
... Chapter 7: Output, Exchange Rates, and Macroeconomic Policies in the Short Run ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... utility function and use optimization techniques to determine the maximum value of the utility function. Rather, we looked at two separate "performance indicators" for each simulation run: (1) the discounted value of total GNP from 1960 to 1970, and (2) the discounted value of consumption. Neither i ...
... utility function and use optimization techniques to determine the maximum value of the utility function. Rather, we looked at two separate "performance indicators" for each simulation run: (1) the discounted value of total GNP from 1960 to 1970, and (2) the discounted value of consumption. Neither i ...
Purchasing power parity
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Purchasing power parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies.Theories that invoke purchasing power parity assume that in some circumstances (for example, as a long-run tendency) it would cost exactly the same number of, say, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods.The concept of purchasing power parity allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries' currencies. Using that PPP rate for hypothetical currency conversions, a given amount of one currency thus has the same purchasing power whether used directly to purchase a market basket of goods or used to convert at the PPP rate to the other currency and then purchase the market basket using that currency. Observed deviations of the exchange rate from purchasing power parity are measured by deviations of the real exchange rate from its PPP value of 1.PPP exchange rates help to minimize misleading international comparisons that can arise with the use of market exchange rates. For example, suppose that two countries produce the same physical amounts of goods as each other in each of two different years. Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country's currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country's GDP is converted into the other country's currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur.