Regional Currency Arrangements in North America
... both Canada and Mexico have experimented with fixed and flexible exchange rates. Mexico has suffered full-blown exchange-rate crises, while Canada has not. Both have had to deal with a neighbor, who dominates economic relations and economic conditions in the region. Steps have been taken in North Am ...
... both Canada and Mexico have experimented with fixed and flexible exchange rates. Mexico has suffered full-blown exchange-rate crises, while Canada has not. Both have had to deal with a neighbor, who dominates economic relations and economic conditions in the region. Steps have been taken in North Am ...
Spot Market
... Provides us with a benchmark for interpreting crossborder capital movements. Simple but quite useful - will be revisited later in ...
... Provides us with a benchmark for interpreting crossborder capital movements. Simple but quite useful - will be revisited later in ...
Chapter 19
... The 2006 Economic Report of the President directly addressed whether the United States can continue to run large current account deficits and, of course, financial account surpluses. In the report, the government recognized that the current account deficits would eventually be reduced. However, it a ...
... The 2006 Economic Report of the President directly addressed whether the United States can continue to run large current account deficits and, of course, financial account surpluses. In the report, the government recognized that the current account deficits would eventually be reduced. However, it a ...
Chap 15 ppt
... Fractional Reserve Banking (cont.) • The banking system is based on fractional reserve banking. • Many banks have reserve requirements. • A larger portion of the money supply consists of funds that the Feds and customers deposit in banks. • Banks may only keep 10% of the deposits in reserve, so the ...
... Fractional Reserve Banking (cont.) • The banking system is based on fractional reserve banking. • Many banks have reserve requirements. • A larger portion of the money supply consists of funds that the Feds and customers deposit in banks. • Banks may only keep 10% of the deposits in reserve, so the ...
NBER WORKING PAPER SERIES EXPERIENCE OF AND LESSONS FROM EXCHANGE RATE
... Emerging market countries in Latin America, East Asia, and Eastern Europe entered the 1990s with widely varying fundamentals. To over-generalize, Latin American countries before the 1990s traditionally had low national savings rates, profligate fiscal and monetary policies, and overvalued currencies ...
... Emerging market countries in Latin America, East Asia, and Eastern Europe entered the 1990s with widely varying fundamentals. To over-generalize, Latin American countries before the 1990s traditionally had low national savings rates, profligate fiscal and monetary policies, and overvalued currencies ...
A Model of Currency Exchange Rates
... simulations is presented that is shown to be stable, simple, and fair. Based on foreign holdings of money, the model pegs exchange rates to allow for currency speculation. The effect of international trade, deposits, loans, and investments are discussed. Proof is given that the model is self limitin ...
... simulations is presented that is shown to be stable, simple, and fair. Based on foreign holdings of money, the model pegs exchange rates to allow for currency speculation. The effect of international trade, deposits, loans, and investments are discussed. Proof is given that the model is self limitin ...
MONEY, THE BANKING SYSTEM & THE FEDERAL RESERVE
... -- unless you want to trade something another person wants, and you want what the other person has to trade, this economic exchange could not occur ...
... -- unless you want to trade something another person wants, and you want what the other person has to trade, this economic exchange could not occur ...
Chapter 2 PowerPoint
... Changes in Discount Rate theoretically affect incentives to borrow Banks in early 20th century relied on Window; now they have other choices for managing liquidity, are wary of “Discount Window scrutiny” Today, Discount Rate is more signal than direct control— Increase means Fed wants smaller money ...
... Changes in Discount Rate theoretically affect incentives to borrow Banks in early 20th century relied on Window; now they have other choices for managing liquidity, are wary of “Discount Window scrutiny” Today, Discount Rate is more signal than direct control— Increase means Fed wants smaller money ...
Chapter 5: Open Economy (A Long Run Model for Small Open
... Because it is a long run model, we can apply classical dichotomy. That is, we first determine real variables (such as net export and real exchange rate), then we determine nominal variables (such as nominal exchange rate) Because the economy is open and small, the domestic real interest rate must be ...
... Because it is a long run model, we can apply classical dichotomy. That is, we first determine real variables (such as net export and real exchange rate), then we determine nominal variables (such as nominal exchange rate) Because the economy is open and small, the domestic real interest rate must be ...
Chapter 2 PowerPoint
... Changes in Discount Rate theoretically affect incentives to borrow Banks in early 20th century relied on Window; now they have other choices for managing liquidity, are wary of “Discount Window scrutiny” Today, Discount Rate is more signal than direct control— Increase means Fed wants smaller money ...
... Changes in Discount Rate theoretically affect incentives to borrow Banks in early 20th century relied on Window; now they have other choices for managing liquidity, are wary of “Discount Window scrutiny” Today, Discount Rate is more signal than direct control— Increase means Fed wants smaller money ...
Document
... Motivation • Since the early 1980s, long-term government bond yields in the euro zone have declined, in line with those in other industrialized countries • By the time the euro was introduced in January 1999, bond yields across the euro zone countries had largely converged to that of Germany (the e ...
... Motivation • Since the early 1980s, long-term government bond yields in the euro zone have declined, in line with those in other industrialized countries • By the time the euro was introduced in January 1999, bond yields across the euro zone countries had largely converged to that of Germany (the e ...
Foreign exchange intervention in Venezuela
... volatility increased the pass-through. For the Venezuelan economy, Mendoza Lugo (2004) finds that in moments of high depreciation, a negative shock in the exchange rate has a significant pass-through. Specifically, negative shocks on the nominal depreciation rate of 1.8 and 5.3 percentage points pro ...
... volatility increased the pass-through. For the Venezuelan economy, Mendoza Lugo (2004) finds that in moments of high depreciation, a negative shock in the exchange rate has a significant pass-through. Specifically, negative shocks on the nominal depreciation rate of 1.8 and 5.3 percentage points pro ...
Cours 4
... changes in the price of tradeables goods relative to non tradeables. • Example : persistent overvaluation, causing industries to become uncompetitive, but capital and labour are not easily convertible into other, non tradeable sectors • -> overvaluation usually leads to unemployment and underutilisa ...
... changes in the price of tradeables goods relative to non tradeables. • Example : persistent overvaluation, causing industries to become uncompetitive, but capital and labour are not easily convertible into other, non tradeable sectors • -> overvaluation usually leads to unemployment and underutilisa ...
Replacing Potemkin Capitalism Russia’s Need for a Free-Market Financial System Executive Summary
... new ruble worth 1,000 old rubles was introduced at the start of 1998, the ruble today is worth, in dollars, about one-thousandth of what it was at the end of 1990.) The depreciation left many of the largest Russian banks in effect bankrupt because they had large dollar liabilities backed by ruble as ...
... new ruble worth 1,000 old rubles was introduced at the start of 1998, the ruble today is worth, in dollars, about one-thousandth of what it was at the end of 1990.) The depreciation left many of the largest Russian banks in effect bankrupt because they had large dollar liabilities backed by ruble as ...
Toward An International Commodity Standard
... the context of a national currency. The price level associated with this basket is regarded as the most relevant price level for purposes of stabilization. Writing during the gold standard period, Fisher (1920) proposed that the definition of the dollar in terms of gold should be indexed to the cost ...
... the context of a national currency. The price level associated with this basket is regarded as the most relevant price level for purposes of stabilization. Writing during the gold standard period, Fisher (1920) proposed that the definition of the dollar in terms of gold should be indexed to the cost ...
Lecture 5
... If currency options are to be used effectively, either for the purposes of speculation or risk management, the individual trader needs to ...
... If currency options are to be used effectively, either for the purposes of speculation or risk management, the individual trader needs to ...
Miracle of Money - Central Washington University
... uncertain times, bankers may choose to hold excess reserves. ...
... uncertain times, bankers may choose to hold excess reserves. ...
NBER WORKING PAPER SERIES DOLLAR SHORTAGES AND CRISES Raghuram G. Rajan Working Paper
... distress in predictable ways. For example, those who suffer the most adversity can fall back on an explicit social safety net – a minimum level of unemployment insurance. Debtors and creditors can appeal to bankruptcy proceedings to determine their relative shares. Given that there is an explicit an ...
... distress in predictable ways. For example, those who suffer the most adversity can fall back on an explicit social safety net – a minimum level of unemployment insurance. Debtors and creditors can appeal to bankruptcy proceedings to determine their relative shares. Given that there is an explicit an ...
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.