NBER WORKING PAPER SERIES INTERNATIONAL BORROWING, CAPITAL CONTROLS AND THE EXCHANGE RATE:
... Prior to the debt crisis, most of Chile’s external debt was private (about 60%). Following the crisis, and in order to successfully renegotiate external debt, private debt received public guarantees. In addition, most of new foreign borrowing was done by the public sector. This caused a large drop i ...
... Prior to the debt crisis, most of Chile’s external debt was private (about 60%). Following the crisis, and in order to successfully renegotiate external debt, private debt received public guarantees. In addition, most of new foreign borrowing was done by the public sector. This caused a large drop i ...
Exchange rate strategies for small open developed Economics Department, RBNZ
... 2. Exchange rate issues for developed economies Developed countries differ from emerging market economies in several ways. They have a higher per capita income, long-established institutional structures associated with rules-based democracies, and significant social welfare programmes. Effective gov ...
... 2. Exchange rate issues for developed economies Developed countries differ from emerging market economies in several ways. They have a higher per capita income, long-established institutional structures associated with rules-based democracies, and significant social welfare programmes. Effective gov ...
EUROPEAN ECONOMIC INTEGRATION AND THE FRANC ZONE
... between France and her former colonies in Western and Central Africa. This co-operation was institutionalized after the colonies achieved independence in the 1960s. Originally, the FZ was a wider area which included parts of IndoChina and Northern Africa, but the area covered later shrank. The two p ...
... between France and her former colonies in Western and Central Africa. This co-operation was institutionalized after the colonies achieved independence in the 1960s. Originally, the FZ was a wider area which included parts of IndoChina and Northern Africa, but the area covered later shrank. The two p ...
NBER WORKING PAPER SERIES A THEORY AND EVIDENCE FROM EAST ASIA
... strategies for the self-protection, replacing liquid short-term debt by illiquid long-term debt was initially one popular advice that many economists suggested. However, what most Asian economies have taken more seriously was raising foreign reserves (see, for example, Aizenman and Lee [2005] and Ro ...
... strategies for the self-protection, replacing liquid short-term debt by illiquid long-term debt was initially one popular advice that many economists suggested. However, what most Asian economies have taken more seriously was raising foreign reserves (see, for example, Aizenman and Lee [2005] and Ro ...
Gold and currencies: hedging foreign-exchange risk
... new markets has been growing. In fact, investors who eschew international investment face not only the prospect of high correlation risk among domestic assets, but also the effect that inflation and/or capital outflows can have in their own currency. The potential for enhanced returns on investments ...
... new markets has been growing. In fact, investors who eschew international investment face not only the prospect of high correlation risk among domestic assets, but also the effect that inflation and/or capital outflows can have in their own currency. The potential for enhanced returns on investments ...
Joining the European Monetary Union
... (though the requirements require 2 years of stability), long‐term interest rate at 3.8% (maximum 5.9%). In 2008 Slovenia was followed by Malta and Cyprus that also joined the EU in 2004. In 2009 Slovakia became the sixteenth eurozone member. Remaining EU “newcomers” are me ...
... (though the requirements require 2 years of stability), long‐term interest rate at 3.8% (maximum 5.9%). In 2008 Slovenia was followed by Malta and Cyprus that also joined the EU in 2004. In 2009 Slovakia became the sixteenth eurozone member. Remaining EU “newcomers” are me ...
How to Manage China’s Foreign Exchange Reserves? Aarhus School of Business
... reserves due to its prominent economic development. In late February 2006, China surpassed Japan to become the world’s largest holder of foreign exchange reserves, and at the end of March 2007, this number reaches 1.2 trillion U.S. dollars. The reserve to GDP ratio is approximately 40 percent at the ...
... reserves due to its prominent economic development. In late February 2006, China surpassed Japan to become the world’s largest holder of foreign exchange reserves, and at the end of March 2007, this number reaches 1.2 trillion U.S. dollars. The reserve to GDP ratio is approximately 40 percent at the ...
NBER WORKING PAPER SERIES EXPLAINING DEVIATIONS FROM UNCOVERED INTEREST PARITY Robert E. Cumby
... forward speculation. We consider the U.S. dollar relative to five currencies, the U.K. pound sterling, Deutsche mark, Canadian dollar, Swiss franc, and French franc, over the period January 1974 to December 1986. ...
... forward speculation. We consider the U.S. dollar relative to five currencies, the U.K. pound sterling, Deutsche mark, Canadian dollar, Swiss franc, and French franc, over the period January 1974 to December 1986. ...
Does it pay to defend – The dynamics of financial crises
... of rational investors with the central bank mechanically depleting its reserves in an unsuccessful attempt to defend the currency. These models thus analyze scenario (B) - no attack, stable exchange rate - vs. (A2a) - attack, unsuccessful defense, and subsequent devaluation. Second generation models ...
... of rational investors with the central bank mechanically depleting its reserves in an unsuccessful attempt to defend the currency. These models thus analyze scenario (B) - no attack, stable exchange rate - vs. (A2a) - attack, unsuccessful defense, and subsequent devaluation. Second generation models ...
Chapter 10 - Dr. George Fahmy
... security purchases by the Fed increase bank reserves and eventually the amount of cheek-writing deposits issued by banks. Federal Reserve sales of government bonds reduce bank reserves and check-writing deposits. and thereby the Ml money supply. When the banking system holds no excess reserves, ∆D m ...
... security purchases by the Fed increase bank reserves and eventually the amount of cheek-writing deposits issued by banks. Federal Reserve sales of government bonds reduce bank reserves and check-writing deposits. and thereby the Ml money supply. When the banking system holds no excess reserves, ∆D m ...
International Monetary Reform and the Stabilization Problem J. Marcus Fleming
... to ensure the provision of an adequate but not excessive supply of international liquidity. From the beginning members of the Fund were entitled to draw on Fund resources within certain limits to meet balance of payments deficits provided that they adopted appropriate corrective policies enabling th ...
... to ensure the provision of an adequate but not excessive supply of international liquidity. From the beginning members of the Fund were entitled to draw on Fund resources within certain limits to meet balance of payments deficits provided that they adopted appropriate corrective policies enabling th ...
Download Dissertation
... term averages of the real exchange rate between currencies turn out to predict crash risks. Utilising the predictability that is demonstrated I construct “real convergence strategies” that use the real exchange rate information to form portfolios. Since the real exchange rates predicts crashes these ...
... term averages of the real exchange rate between currencies turn out to predict crash risks. Utilising the predictability that is demonstrated I construct “real convergence strategies” that use the real exchange rate information to form portfolios. Since the real exchange rates predicts crashes these ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 21
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
Reserve currency
A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.By the end of the 20th century, the United States dollar was considered the world's most dominant reserve currency, and the world's need for dollars has allowed the United States government as well as Americans to borrow at lower costs, granting them an advantage in excess of $100 billion per year. However, the U.S. dollar's status as a reserve currency, by increasing in value, hurts U.S. exporters.