Will the Bretton Woods 2 Regime Unravel Soon?
... inflation, in addition to fueling a lending boom and asset bubble that will add to China’s already significant domestic financial weakness. o Central bank balance sheets are increasingly exposed to large losses from their holdings of dollars. These losses are likely to be very large – a 33% renminbi ...
... inflation, in addition to fueling a lending boom and asset bubble that will add to China’s already significant domestic financial weakness. o Central bank balance sheets are increasingly exposed to large losses from their holdings of dollars. These losses are likely to be very large – a 33% renminbi ...
Are the Foreign-Currency Official Reserves of Emerging Asia Excessive?
... The Asian crisis hit large parts of Asia very hard. Before the crisis, the term “Asian miracle” was coined for this region of the world, where agriculture-based countries succeeded in turning into rapidly growing industrialised nations with “growth rates several times higher than advanced nations” ( ...
... The Asian crisis hit large parts of Asia very hard. Before the crisis, the term “Asian miracle” was coined for this region of the world, where agriculture-based countries succeeded in turning into rapidly growing industrialised nations with “growth rates several times higher than advanced nations” ( ...
Zuzana Kucerova
... „If we move across the spectrum from closed to open economies, flexible exchange rates become both less effective as a control device for external balance and more damaging to internal price level stability. In fact, if one were worried about unwanted speculative movements in a floating exchange rat ...
... „If we move across the spectrum from closed to open economies, flexible exchange rates become both less effective as a control device for external balance and more damaging to internal price level stability. In fact, if one were worried about unwanted speculative movements in a floating exchange rat ...
Prepare accounting entries relating to foreign currency transactions
... In this learning guide on the preparation of foreign currency transactions, our coverage included the accounting standard that governs foreign currency transactions (AASB121) and the guidelines under this standard relating to the import and export of goods, loans and repayments as well as the proces ...
... In this learning guide on the preparation of foreign currency transactions, our coverage included the accounting standard that governs foreign currency transactions (AASB121) and the guidelines under this standard relating to the import and export of goods, loans and repayments as well as the proces ...
NBER WORKING PAPER SERIES THE GREAT EXCHANGE RATE DEBATE AFTER ARGENTINA Sebastian Edwards
... makers and economists in the emerging countries. All of this changed in the late-1990s when as a result of successive currency crises a number of authors began to argue that in a world of high capital mobility, middle-of-the-road exchange rate regimes were highly unstable. As a result of this, durin ...
... makers and economists in the emerging countries. All of this changed in the late-1990s when as a result of successive currency crises a number of authors began to argue that in a world of high capital mobility, middle-of-the-road exchange rate regimes were highly unstable. As a result of this, durin ...
NBER WORKING PAPER SERIES EXTERNAL ADJUSTMENT Maurice Obstfeld Working Paper
... risks. The resulting capital flight and the associated gold hemorrhage often led to a much more rapid and possibly bigger depreciation than would have occurred absent speculation. Sometimes, instead or in addition, capital controls were part of the policy response. The interwar experience heavily co ...
... risks. The resulting capital flight and the associated gold hemorrhage often led to a much more rapid and possibly bigger depreciation than would have occurred absent speculation. Sometimes, instead or in addition, capital controls were part of the policy response. The interwar experience heavily co ...
real exchange rate
... • According to the theory of purchasing-power parity, a unit of currency should buy the same quantity of goods in all countries. • The nominal exchange rate between the currencies of two countries should reflect the countries’ price levels in those countries. ...
... • According to the theory of purchasing-power parity, a unit of currency should buy the same quantity of goods in all countries. • The nominal exchange rate between the currencies of two countries should reflect the countries’ price levels in those countries. ...
Chapter 18
... • If a domestic country has a current account surplus in excess of the non-reserve financial account, gold earned from exports flows into the country—raising prices in that country and lowering prices in foreign countries. ! Goods from the domestic country become relatively expensive and goods from ...
... • If a domestic country has a current account surplus in excess of the non-reserve financial account, gold earned from exports flows into the country—raising prices in that country and lowering prices in foreign countries. ! Goods from the domestic country become relatively expensive and goods from ...
Two Economic Crisis and Dollarization for Cambodia, Laos, and
... instability brings about economic agents to increase the holdings of foreign or key currency, i.e., the U.S. dollar, to shield the real values of their wealth. When economic imbalances are aggravated, the price of goods and services begins to be quoted in foreign currency and increasing numbers of t ...
... instability brings about economic agents to increase the holdings of foreign or key currency, i.e., the U.S. dollar, to shield the real values of their wealth. When economic imbalances are aggravated, the price of goods and services begins to be quoted in foreign currency and increasing numbers of t ...
Exchange Rates and Trade Balances under the Dollar Standard
... parity internationally. As a result, exchange rate determination can no longer be isolated from monetary policies. According Frankel and Mussa (1980), in an open economy, the exchange rate is a forward-looking variable. They adopted an asset-market approach which implies that investors will base the ...
... parity internationally. As a result, exchange rate determination can no longer be isolated from monetary policies. According Frankel and Mussa (1980), in an open economy, the exchange rate is a forward-looking variable. They adopted an asset-market approach which implies that investors will base the ...
Foreign Currency Borrowing: The Case of Hungary
... more recent contributions focus on three topics: portfolio allocation, market failures and institutions (Levy Yeyati, 2006 provides an overview). In the portfolio allocation model of Ize and Levy Yeyati (2003) agents minimize the variance of their portfolio returns. Both the returns of local and FX ...
... more recent contributions focus on three topics: portfolio allocation, market failures and institutions (Levy Yeyati, 2006 provides an overview). In the portfolio allocation model of Ize and Levy Yeyati (2003) agents minimize the variance of their portfolio returns. Both the returns of local and FX ...
the concept of fts anylysis in forecasting trends of exchange rate
... prognostic studies among professionals, and the need for information on the trends of changes in exchange rates is still increasing. The increased demand for currency forecasts is observed not only from the leading foreign trade companies, but also from private investors or commercial banks (Borowie ...
... prognostic studies among professionals, and the need for information on the trends of changes in exchange rates is still increasing. The increased demand for currency forecasts is observed not only from the leading foreign trade companies, but also from private investors or commercial banks (Borowie ...
A Currency Union Or An Exchange Rate Union
... This paper examines whether the Northeast Asian economies, namely, China, Japan, Korea, and Taiwan, can form a currency union where a single currency and a uniform monetary policy are adopted, or an exchange rate union where all the currencies are pegged to a single currency or a common currency bas ...
... This paper examines whether the Northeast Asian economies, namely, China, Japan, Korea, and Taiwan, can form a currency union where a single currency and a uniform monetary policy are adopted, or an exchange rate union where all the currencies are pegged to a single currency or a common currency bas ...
International Monetary System - GW Links
... This adjustment mechanism is the well-known David Hume’s gold-flow adjustment mechanism, which is also referred to as the price-specie-flow mechanism. This process was demonstrated by the Scottish philosopher David Hume in 1752. The idea of this mechanism helped refute the mercantilist views on trad ...
... This adjustment mechanism is the well-known David Hume’s gold-flow adjustment mechanism, which is also referred to as the price-specie-flow mechanism. This process was demonstrated by the Scottish philosopher David Hume in 1752. The idea of this mechanism helped refute the mercantilist views on trad ...
Which Anchor Will Hold?
... multi-polar system where the euro dominates in Europe, the US dollar is the anchor in the Americas while Chinese Renmenbi becomes the main currency in Asia. In fact, to the extent there has been debate, it has been more about whether fading dollar dominance can be considered a good thing. Frankel (2 ...
... multi-polar system where the euro dominates in Europe, the US dollar is the anchor in the Americas while Chinese Renmenbi becomes the main currency in Asia. In fact, to the extent there has been debate, it has been more about whether fading dollar dominance can be considered a good thing. Frankel (2 ...
Money and the Rule of Law in Ecuador
... Ecuador represents a prime example of a country that was incapable of imposing the rule of law and safeguarding the value of its currency, the sucre. The Banco Central del Ecuador was established in 1927, with a sucre-US dollar exchange rate of 5. Until the 1980s, the central bank periodically deval ...
... Ecuador represents a prime example of a country that was incapable of imposing the rule of law and safeguarding the value of its currency, the sucre. The Banco Central del Ecuador was established in 1927, with a sucre-US dollar exchange rate of 5. Until the 1980s, the central bank periodically deval ...
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.