This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Inflation: Causes and Effects
... The first set of relevant facts concerns the turbulence of the foreign exchange market. A simple measure of such turbulence is the average absolute monthly percentage changes in the various exchange rates over some interval of time. Table 9.1 reports such measures for three major exchange rates: the ...
... The first set of relevant facts concerns the turbulence of the foreign exchange market. A simple measure of such turbulence is the average absolute monthly percentage changes in the various exchange rates over some interval of time. Table 9.1 reports such measures for three major exchange rates: the ...
FMA Minimum Standards for the Risk Management
... The credit institution shall prepare written guidelines on the granting and managing of foreign currency loans. Taking into consideration the risk-bearing capacity of the respective credit institution, such guidelines shall in particular provide for adequate requirements with regard to the granting ...
... The credit institution shall prepare written guidelines on the granting and managing of foreign currency loans. Taking into consideration the risk-bearing capacity of the respective credit institution, such guidelines shall in particular provide for adequate requirements with regard to the granting ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... imaginary world free of market frictions. A brief discussion of adjustment mechanisms under the classical gold standard occupies section 4.3. Section 4.4 then describes how the central economic and financial features of the postwar world mandated rapid adjustment for deficit countries and at the sam ...
... imaginary world free of market frictions. A brief discussion of adjustment mechanisms under the classical gold standard occupies section 4.3. Section 4.4 then describes how the central economic and financial features of the postwar world mandated rapid adjustment for deficit countries and at the sam ...
LEADING INDICATORS OF CURRENCY AND BANKING CRISES
... time, there is inadequate evidence of the opposite link, from currency crises to banking crises. The pioneering work that brought the concept of twin crisis into the literature was that of Kaminsky and Reinhart (1996). Examining countries that experienced currency and banking crises in the years 197 ...
... time, there is inadequate evidence of the opposite link, from currency crises to banking crises. The pioneering work that brought the concept of twin crisis into the literature was that of Kaminsky and Reinhart (1996). Examining countries that experienced currency and banking crises in the years 197 ...
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... have a direct impact on the exchange rate of the currency held by the public, as well as other economic impacts due to the continuation of this policy which includes exports and imports, inflation, until economic growth. We need Redenomination. with Indonesia's economy projected to grow rapidly, the ...
... have a direct impact on the exchange rate of the currency held by the public, as well as other economic impacts due to the continuation of this policy which includes exports and imports, inflation, until economic growth. We need Redenomination. with Indonesia's economy projected to grow rapidly, the ...
the dollar and the policy-performance-confidence mix
... rigidities" in Europe, and the debt crisis in the developing countries. To quote from the Congressional testimony of a prominent critic, Beryl Sprinkel, then Under Secretary for Monetary Affairs of the U.S. Treasury: General confidence in U.S. economic performance and the Administration's firm commi ...
... rigidities" in Europe, and the debt crisis in the developing countries. To quote from the Congressional testimony of a prominent critic, Beryl Sprinkel, then Under Secretary for Monetary Affairs of the U.S. Treasury: General confidence in U.S. economic performance and the Administration's firm commi ...
NBER WORKING PAPER SERIES ON THE RENMINBI: THE CHOICE BETWEEN ADJUSTMENT
... The choice between adjustment under a fixed exchange rate and adjustment under a flexible rate An exchange rate that is de facto fixed has served China well over the last eight years. Nevertheless, four major reasons have been given to suggest that it may now be time to allow the yuan to appreciate. ...
... The choice between adjustment under a fixed exchange rate and adjustment under a flexible rate An exchange rate that is de facto fixed has served China well over the last eight years. Nevertheless, four major reasons have been given to suggest that it may now be time to allow the yuan to appreciate. ...
Competitive Currency Depreciation: The Need for a More Effective
... policies, including the undervaluation of their currencies, to gain a competitive trade advantage in desperate economic times. 7 When these same nations "emerged from World War II, they shared a general revulsion against the extreme nationalist, beggar-thy-neighbor policies of the recent past. This ...
... policies, including the undervaluation of their currencies, to gain a competitive trade advantage in desperate economic times. 7 When these same nations "emerged from World War II, they shared a general revulsion against the extreme nationalist, beggar-thy-neighbor policies of the recent past. This ...
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... Two possible systems for fixing the exchange rates: • Reserve currency standard – Central banks peg the prices of their currencies in terms of a reserve currency. – The currency central banks hold in their international reserves. ...
... Two possible systems for fixing the exchange rates: • Reserve currency standard – Central banks peg the prices of their currencies in terms of a reserve currency. – The currency central banks hold in their international reserves. ...
NBER WORKING PAPER SERIES THE UNSUSTAINABLE US CURRENT ACCOUNT POSITION REVISITED
... held by the US Social Security Trust administration and by the Federal Reserve System, the remaining Treasuries held privately are of roughly the same order of magnitude as foreign central bank reserves. These reserves are held mostly by Asia (though Russia, Mexico, and Brazil are also significant), ...
... held by the US Social Security Trust administration and by the Federal Reserve System, the remaining Treasuries held privately are of roughly the same order of magnitude as foreign central bank reserves. These reserves are held mostly by Asia (though Russia, Mexico, and Brazil are also significant), ...
The Unsustainable US Current Account Position Revisited * Maurice Obstfeld and Kenneth Rogoff
... Finally, figure 7 illustrates another important change, the rising level of Asian central bank reserves (most of which are held in dollars). At the end of 2004, foreigners owned 40% of all US Treasuries held outside the Federal Reserve System and the Social Security Administration Trust Fund. In add ...
... Finally, figure 7 illustrates another important change, the rising level of Asian central bank reserves (most of which are held in dollars). At the end of 2004, foreigners owned 40% of all US Treasuries held outside the Federal Reserve System and the Social Security Administration Trust Fund. In add ...
Net Capital Outflow
... Implications of Purchasing Power Parity • If the purchasing power of the euro is always the same at home and abroad, then the exchange rate cannot change. • The nominal exchange rate between the currencies of two countries must reflect the different price levels in those countries. • When the centr ...
... Implications of Purchasing Power Parity • If the purchasing power of the euro is always the same at home and abroad, then the exchange rate cannot change. • The nominal exchange rate between the currencies of two countries must reflect the different price levels in those countries. • When the centr ...
Peltonen-del05 1039031 en
... floating exchange rate regime was faster after currency crises than before them. However, under fixed or intermediate exchange rate regimes, crises caused substantial declines in per capita GDP growth rates. 2 See also Edison (2003). 3 See e.g. a survey by Wong and Selvi (1998). 4 One should note th ...
... floating exchange rate regime was faster after currency crises than before them. However, under fixed or intermediate exchange rate regimes, crises caused substantial declines in per capita GDP growth rates. 2 See also Edison (2003). 3 See e.g. a survey by Wong and Selvi (1998). 4 One should note th ...
Emerging Local Currency Bond Markets
... sheds light on sources of potential instability. In the past, one source of instability has been currency mismatches, but recently we see improvements in many countries. For example, in Latin America about half of all bonds were denominated in foreign currency in 2001, leaving the region highly susc ...
... sheds light on sources of potential instability. In the past, one source of instability has been currency mismatches, but recently we see improvements in many countries. For example, in Latin America about half of all bonds were denominated in foreign currency in 2001, leaving the region highly susc ...
The 2016 Convergence Report: Assessment of
... What is the Convergence Report? The Convergence Report forms the basis for the Council of the EU decision on whether a Member State fulfils the conditions for joining the euro area. The report assesses the degree of sustainable economic convergence Member States that have not yet fulfilled the neces ...
... What is the Convergence Report? The Convergence Report forms the basis for the Council of the EU decision on whether a Member State fulfils the conditions for joining the euro area. The report assesses the degree of sustainable economic convergence Member States that have not yet fulfilled the neces ...
Chapter 20
... 1. Relative prices will tend to fall, which will lead other members to increase aggregate demand greatly if economic integration is extensive, so that the economic loss is not as great. 2. Financial assets or labor will migrate to areas with higher returns or wages if economic integration is extensi ...
... 1. Relative prices will tend to fall, which will lead other members to increase aggregate demand greatly if economic integration is extensive, so that the economic loss is not as great. 2. Financial assets or labor will migrate to areas with higher returns or wages if economic integration is extensi ...
foreign exchange risk
... profits are not eroded by currency fluctuations. Also, at the end of the year, when Dell consolidates its financial statements for the year in U.S. dollars, it wants to ensure that exchange rate changes do not adversely impact its financial performance. The pressure to monitor and manage foreign cur ...
... profits are not eroded by currency fluctuations. Also, at the end of the year, when Dell consolidates its financial statements for the year in U.S. dollars, it wants to ensure that exchange rate changes do not adversely impact its financial performance. The pressure to monitor and manage foreign cur ...
H D A N
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
... Argentina’s economic deterioration over the last several years. At the end of 1994, the gross debt of Argentina’s federal government was about 70 billion dollars and gross domestic product was 257 billion dollars. Today the debt is almost 90 percent bigger, at 132 billion dollars (according to the l ...
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.