Chapter 8
... Exchange-rate risk is the risk that a firm will suffer losses because of fluctuations in exchange rates. • The forward rate reflects what traders in the forward market expect the spot exchange rate to be in the future, so it may not equal the current spot rate. • To hedge against a fall (rise) in th ...
... Exchange-rate risk is the risk that a firm will suffer losses because of fluctuations in exchange rates. • The forward rate reflects what traders in the forward market expect the spot exchange rate to be in the future, so it may not equal the current spot rate. • To hedge against a fall (rise) in th ...
Balance of Payments and Exchange Rates
... Tradables are goods that compete with foreign goods on either domestic or foreign markets e.g. This last ratio (high for the US) reflects the fact that if a country is competitive it does not need to import much. Ch1/BP&ER ...
... Tradables are goods that compete with foreign goods on either domestic or foreign markets e.g. This last ratio (high for the US) reflects the fact that if a country is competitive it does not need to import much. Ch1/BP&ER ...
English
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...
... elasticity for that country’s exporters.3 Jiawen Yang (1997) finds a positive relationship between US import pass-through elasticities for three and four-digit SIC industries and different proxies of product differentiation. Sectoral invoicing data could provide the most convincing evidence, but such ...
01.07 - Study Center Gerzensee
... In order to simplify matters, we first keep nominal wages fixed by allowing for nominal rigidities in the labor market. The results then turn out to be essentially the same as in the partial equilibrium model. When allowing for nominal wage flexibility, we first consider a constant real wage. In tha ...
... In order to simplify matters, we first keep nominal wages fixed by allowing for nominal rigidities in the labor market. The results then turn out to be essentially the same as in the partial equilibrium model. When allowing for nominal wage flexibility, we first consider a constant real wage. In tha ...
11.1 WHAT IS MONEY?
... The fraction of a bank’s total deposits held as reserves is the reserve ratio. The desired reserve ratio is the ratio of reserves to deposits that a bank wants to hold. This ratio exceeds the required reserve ratio by the amount that the bank determines to be prudent for its daily business. ...
... The fraction of a bank’s total deposits held as reserves is the reserve ratio. The desired reserve ratio is the ratio of reserves to deposits that a bank wants to hold. This ratio exceeds the required reserve ratio by the amount that the bank determines to be prudent for its daily business. ...
FRBSF L CONOMIC
... Identifying how unconventional monetary policy actions have affected the dollar since 2008 is challenging. Because the Fed’s recent actions are unprecedented, we have limited data to work with. To see how unconventional policy actions have affected the dollar’s value, we focus on the dates of moneta ...
... Identifying how unconventional monetary policy actions have affected the dollar since 2008 is challenging. Because the Fed’s recent actions are unprecedented, we have limited data to work with. To see how unconventional policy actions have affected the dollar’s value, we focus on the dates of moneta ...
Chapter 13 PPT
... = Deposit multiplier Excess reserves Central bankers are usually more interested in a related concept known as the money multiplier, which defines the relationship between the size of the money supply and the size of the total reserve base available to ...
... = Deposit multiplier Excess reserves Central bankers are usually more interested in a related concept known as the money multiplier, which defines the relationship between the size of the money supply and the size of the total reserve base available to ...
The advantages and disadvantages of various exchange rate regimes
... Among the many travails of developing countries in recent years have been fluctuations in world prices of the commodities that they produce, especially mineral and agricultural commodities, as well as fluctuations in the foreign exchange values of major currencies, especially the dollar, yen, and eu ...
... Among the many travails of developing countries in recent years have been fluctuations in world prices of the commodities that they produce, especially mineral and agricultural commodities, as well as fluctuations in the foreign exchange values of major currencies, especially the dollar, yen, and eu ...
Ch. 13 – Open
... for good reasons or bad ones. A trade deficit is not necessarily a problem, but might be a symptom of a problem. OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS ...
... for good reasons or bad ones. A trade deficit is not necessarily a problem, but might be a symptom of a problem. OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS ...
Maurice Obstfeld Working
... international capital market, however. Under the classical gold standard, high capital mobility had supported the credibility of fixed exchange rates. Under Bretton Woods fixed gold parities did not have primacy among other economic objectives; and increasing capital mobility undermined the regime a ...
... international capital market, however. Under the classical gold standard, high capital mobility had supported the credibility of fixed exchange rates. Under Bretton Woods fixed gold parities did not have primacy among other economic objectives; and increasing capital mobility undermined the regime a ...
Document
... In the EMEs case, given the absence of a LOLR in foreign currency, exchange risk and country risk are key determinants of the critical processes, as we explain below. Before that, let us briefly discuss the consequences of the inexistence of an international currency LOLR in the EMEs cases. Country ...
... In the EMEs case, given the absence of a LOLR in foreign currency, exchange risk and country risk are key determinants of the critical processes, as we explain below. Before that, let us briefly discuss the consequences of the inexistence of an international currency LOLR in the EMEs cases. Country ...
the choice of exchange rate regime
... domestic monetary aggregates will prevent the exchange rate depreciating, not be affected by external flows, may be tempted into inflationary and a monetary policy can be budgetary and monetary policies. pursued which is independent of, and does not need to have regard to, monetary policy in other c ...
... domestic monetary aggregates will prevent the exchange rate depreciating, not be affected by external flows, may be tempted into inflationary and a monetary policy can be budgetary and monetary policies. pursued which is independent of, and does not need to have regard to, monetary policy in other c ...
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.