To Coordinate or Not to Coordinate? Richard N. Cooper*
... Each of these actions has something to be said for it. North Germany is relatively depressed at present, while South Germany is buoyant, yet wages are more or less determined at a national level, so that North German wages are too high relative to South German wages. A depreciation of the North Germ ...
... Each of these actions has something to be said for it. North Germany is relatively depressed at present, while South Germany is buoyant, yet wages are more or less determined at a national level, so that North German wages are too high relative to South German wages. A depreciation of the North Germ ...
1 Counterfactual Histories of the Great Depression Barry
... Bruening had understood that devaluation allowed more expansionary policies and responded accordingly, then the German devaluation could have also eased conditions elsewhere in the world. The German cabinet discussed the possibility of following Britain off gold in September 1931, and the tone of t ...
... Bruening had understood that devaluation allowed more expansionary policies and responded accordingly, then the German devaluation could have also eased conditions elsewhere in the world. The German cabinet discussed the possibility of following Britain off gold in September 1931, and the tone of t ...
Sample
... A) relative purchasing power parity rates. B) real effective exchange rates. C) absolute purchasing power parity rates. D) nominal bilateral exchange rates. Answer: B 26) If you were a government official trying to recommend a strategy for monitoring you country's exchange rate, would you choose to ...
... A) relative purchasing power parity rates. B) real effective exchange rates. C) absolute purchasing power parity rates. D) nominal bilateral exchange rates. Answer: B 26) If you were a government official trying to recommend a strategy for monitoring you country's exchange rate, would you choose to ...
Slide 1
... • This report represented the first commonly agreed upon plan of action to create an economic and monetary union in October 1970 – In 1979, the European Monetary System (EMS) and the introduction of the European Currency Unit (ECU) as common currency • set up a zone of monetary stability and to incr ...
... • This report represented the first commonly agreed upon plan of action to create an economic and monetary union in October 1970 – In 1979, the European Monetary System (EMS) and the introduction of the European Currency Unit (ECU) as common currency • set up a zone of monetary stability and to incr ...
viii. models of exchange rate determination
... MPA/ID program. It particularly emphasizes the international dimension. The general perspective is that of developing countries and other small open economies, defined as those for whom the terms of trade are determined on world markets and for whom foreign income, inflation and interest rates can a ...
... MPA/ID program. It particularly emphasizes the international dimension. The general perspective is that of developing countries and other small open economies, defined as those for whom the terms of trade are determined on world markets and for whom foreign income, inflation and interest rates can a ...
Why the ECB Should Buy US Treasuries
... My last topic concerns the big common currency, the euro. I hope I manage here to bring together the various strands of my remarks. It is widely recognized that the ECB should further ease monetary policy. Inflation at 0.7% across the euro zone is below the target of “close to 2%.” Unemployment in m ...
... My last topic concerns the big common currency, the euro. I hope I manage here to bring together the various strands of my remarks. It is widely recognized that the ECB should further ease monetary policy. Inflation at 0.7% across the euro zone is below the target of “close to 2%.” Unemployment in m ...
Trading Blocs
... central bank. This means that individual countries are no longer free to set their own interest rates and so the tool of monetary policy (see Chapter 14) is no longer an option to influence the inflation rate, the unemployment rate, and the rate of economic growth. This is especially damaging if one ...
... central bank. This means that individual countries are no longer free to set their own interest rates and so the tool of monetary policy (see Chapter 14) is no longer an option to influence the inflation rate, the unemployment rate, and the rate of economic growth. This is especially damaging if one ...
Comment - Lars E.O. Svensson
... Central banks in these countries should pay more attention to their collective policy stance and its global implications.”1 I do not agree with this conclusion. The Federal Reserve’s mandate concerns US inflation and employment, and the Federal Reserve is not responsible for inflation, real developm ...
... Central banks in these countries should pay more attention to their collective policy stance and its global implications.”1 I do not agree with this conclusion. The Federal Reserve’s mandate concerns US inflation and employment, and the Federal Reserve is not responsible for inflation, real developm ...
International Political Economy
... European and Asian protection, particularly on the part of West Germany and Japan. The result was recovery. MULTILATERAL MANAGEMENT UNDER US LEADERSHIP The system relied upon a mechanism that would, ultimately, undermine confidence in the system, US dollar outflows and deficits. By 1958 the US no lo ...
... European and Asian protection, particularly on the part of West Germany and Japan. The result was recovery. MULTILATERAL MANAGEMENT UNDER US LEADERSHIP The system relied upon a mechanism that would, ultimately, undermine confidence in the system, US dollar outflows and deficits. By 1958 the US no lo ...
The IMF-World Bank Past, Present, and Future
... quotas members pay in are the main source of funding of IMF. Note that just like when you put money in a bank the money still belongs to you, the money countries put in the Fund is still theirs; they merely transfer some of their monetary assets to the Fund, but it is still part of their reserves. ...
... quotas members pay in are the main source of funding of IMF. Note that just like when you put money in a bank the money still belongs to you, the money countries put in the Fund is still theirs; they merely transfer some of their monetary assets to the Fund, but it is still part of their reserves. ...
Introduction
... Japan, United Kingdom, United States Between 1985 and 1995, the average value of the U.S. dollar and the British pound declined, while the average value of the Japanese yen increased. This trend reversed in 1995, but began anew in ...
... Japan, United Kingdom, United States Between 1985 and 1995, the average value of the U.S. dollar and the British pound declined, while the average value of the Japanese yen increased. This trend reversed in 1995, but began anew in ...
Introduction
... Japan, United Kingdom, United States Between 1985 and 1995, the average value of the U.S. dollar and the British pound declined, while the average value of the Japanese yen increased. This trend reversed in 1995, but began anew in ...
... Japan, United Kingdom, United States Between 1985 and 1995, the average value of the U.S. dollar and the British pound declined, while the average value of the Japanese yen increased. This trend reversed in 1995, but began anew in ...
1) An updated version of estimation of what is the actual Chinese
... crises of the late 1990s that it was wise to take the precaution of accumulating large levels of international reserves. They spent the next decade doing precisely that, via balance of payments surpluses. The levels of reserves has tended to strike western economists as inefficiently high, particula ...
... crises of the late 1990s that it was wise to take the precaution of accumulating large levels of international reserves. They spent the next decade doing precisely that, via balance of payments surpluses. The levels of reserves has tended to strike western economists as inefficiently high, particula ...
File
... A currency board is a system for maintaining the value of the local currency with respect to some other specified currency. For example, Hong Kong has tied the value of the Hong Kong dollar to the U.S. dollar (HK$7.8 = $1) since 1983, while Argentina has tied the value of its peso to the U.S. dollar ...
... A currency board is a system for maintaining the value of the local currency with respect to some other specified currency. For example, Hong Kong has tied the value of the Hong Kong dollar to the U.S. dollar (HK$7.8 = $1) since 1983, while Argentina has tied the value of its peso to the U.S. dollar ...
c19
... currencies are fixed; January to July, 2002, the period in which the euro coexist with the disappearing currencies. 2) What is seigniorage? What are the factors that determine whether a currency should emerge as the dominant reserve currency? Answer: The difference between the exchange value and the ...
... currencies are fixed; January to July, 2002, the period in which the euro coexist with the disappearing currencies. 2) What is seigniorage? What are the factors that determine whether a currency should emerge as the dominant reserve currency? Answer: The difference between the exchange value and the ...
Key Points WHY THE FOREIGN CURRENCY CRISIS IN PNG IS
... ply the much needed foreign exchange and to prop up the Kina. Despite this, the stock of available foreign exchange currency is still insufficient to satisfy demand. To bridge the gap, the Government is scheming to substitute inflows from sovereign (LNG) wealth (which are in fact not flowing) with s ...
... ply the much needed foreign exchange and to prop up the Kina. Despite this, the stock of available foreign exchange currency is still insufficient to satisfy demand. To bridge the gap, the Government is scheming to substitute inflows from sovereign (LNG) wealth (which are in fact not flowing) with s ...
doc
... 2. [Can draw a figure showing the demand and supply curves for foreign exchange, with the vertical axis measuring the price of foreign exchange in domestic currency. A horizontal line at the intersection of the curves can mark off the Yintercept, labeled P*.] The exchange rate is overvalued when the ...
... 2. [Can draw a figure showing the demand and supply curves for foreign exchange, with the vertical axis measuring the price of foreign exchange in domestic currency. A horizontal line at the intersection of the curves can mark off the Yintercept, labeled P*.] The exchange rate is overvalued when the ...
Contents of the course - Solvay Brussels School
... General idea : FX rates are adjusted so that the BOP is in equilibrium Balance of Payments (BOP) - Definition : Balance of paiements : sum of all the transactions between the residents of a country and the rest of the world BOP = current account balance + capital account + financial account + ...
... General idea : FX rates are adjusted so that the BOP is in equilibrium Balance of Payments (BOP) - Definition : Balance of paiements : sum of all the transactions between the residents of a country and the rest of the world BOP = current account balance + capital account + financial account + ...
currency board agreement and its role in the developing countries
... commitment to a responsible fiscal policy. Although a currency board guarantees the backing of its base money, faith in its currency rests on traders' and investors' confidence in the economy's financial institutions, capital markets, and fiscal management. The author concludes that currency boards ...
... commitment to a responsible fiscal policy. Although a currency board guarantees the backing of its base money, faith in its currency rests on traders' and investors' confidence in the economy's financial institutions, capital markets, and fiscal management. The author concludes that currency boards ...
INTERNATIONAL
... has a trade deficit. • No reason to expect them to be even, but deficits for many years should concern countries because they can’t keep consuming high levels of imports forever. • Lower exchange rates should cause imports to fall and exports to rise in the future. ...
... has a trade deficit. • No reason to expect them to be even, but deficits for many years should concern countries because they can’t keep consuming high levels of imports forever. • Lower exchange rates should cause imports to fall and exports to rise in the future. ...
United States
... exchange rate within ±1% of the adopted par value by buying or selling foreign reserves as necessary. • The U.S. was only country responsible for maintaining the gold parity, which they did at $35 per ounce. • Under Bretton Woods, the IMF was created and World Bank are created. • The Bretton Woods s ...
... exchange rate within ±1% of the adopted par value by buying or selling foreign reserves as necessary. • The U.S. was only country responsible for maintaining the gold parity, which they did at $35 per ounce. • Under Bretton Woods, the IMF was created and World Bank are created. • The Bretton Woods s ...
foreign currency fixed deposit (fcfd) deposit / maturity
... 1. I/We understand that my/our entire principal & interest amount may at the Bank’s discretion be renewed for any tenor at the prevailing rate of interest, if maturity instructions are not provided or cannot be implemented. 2. I/We acknowledge that the withdrawal of GBP or US$ FDs may be made on mat ...
... 1. I/We understand that my/our entire principal & interest amount may at the Bank’s discretion be renewed for any tenor at the prevailing rate of interest, if maturity instructions are not provided or cannot be implemented. 2. I/We acknowledge that the withdrawal of GBP or US$ FDs may be made on mat ...
Trade Balances, Exchange Rates and the
... gives up its monetary autonomy (gives up control over its money supply) – assuming it still prefers to have open capital markets. Economists refer to this as the “tying of the hands” ...
... gives up its monetary autonomy (gives up control over its money supply) – assuming it still prefers to have open capital markets. Economists refer to this as the “tying of the hands” ...
The Relationship Between Rising Rates And Rising Ringgit
... If a country raises its interest rates, the currency of that country will strengthen in relation to other countries, as investors shift assets to that country to gain a higher return. Raising interest rates isn’t a bad thing. It is an indicator of a stronger economy which can now (2006) take on high ...
... If a country raises its interest rates, the currency of that country will strengthen in relation to other countries, as investors shift assets to that country to gain a higher return. Raising interest rates isn’t a bad thing. It is an indicator of a stronger economy which can now (2006) take on high ...
Is The Euro A Harbinger Of A World Currency?
... Three economic measures, which are calculated by countries using the euro, can be analyzed to help project if the unification was successful and what that might mean for a future global currency. The metrics focused on are cost of living, deficit spending, and unemployment. A study of these measures ...
... Three economic measures, which are calculated by countries using the euro, can be analyzed to help project if the unification was successful and what that might mean for a future global currency. The metrics focused on are cost of living, deficit spending, and unemployment. A study of these measures ...
Currency war
Currency war, also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a country's currency falls so too does the price of exports. Imports to the country become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets. However, the price increase for imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.Competitive devaluation has been rare through most of history as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when currency war broke out in the 1930s. As countries abandoned the Gold Standard during the Great Depression, they used currency devaluations to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.According to Guido Mantega, the Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase ""currency war"" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.