Answers to Chapter 4 Questions
... Gold and Foreign Exchange and Treasury Currency. The Federal Reserve holds Treasury gold certificates that are redeemable at the U.S. Treasury for gold. The Fed also holds small amounts of Treasury issued coinage and foreign-denominated assets to assist in foreign currency transactions or currency s ...
... Gold and Foreign Exchange and Treasury Currency. The Federal Reserve holds Treasury gold certificates that are redeemable at the U.S. Treasury for gold. The Fed also holds small amounts of Treasury issued coinage and foreign-denominated assets to assist in foreign currency transactions or currency s ...
Currency Crises
... appreciated relative to the Japanese yen and Chinese renminbi. With the Thai baht, Indonesia rupiah, and other Asian currencies rising relative to the yen and the renminbi, the products of Thailand, Indonesia, and other Asian countries grew more expensive relative to those of Japan and China. The de ...
... appreciated relative to the Japanese yen and Chinese renminbi. With the Thai baht, Indonesia rupiah, and other Asian currencies rising relative to the yen and the renminbi, the products of Thailand, Indonesia, and other Asian countries grew more expensive relative to those of Japan and China. The de ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... sold for dollars in free markets at a discount from the official rate, thus diverting sterling area imports from Britain to the United States. The devaluation was designed to eliminate the discount on sterling, and in this it was successful. The devaluation of most continental European currencies, h ...
... sold for dollars in free markets at a discount from the official rate, thus diverting sterling area imports from Britain to the United States. The devaluation was designed to eliminate the discount on sterling, and in this it was successful. The devaluation of most continental European currencies, h ...
Monetary Mercantilism in Asia
... currency to the US dollar and the anchor for monetary policies in the European Monetary System. Other countries in Latin America and Asia kept relatively fixed unilateral pegs to the USD. Today, the US dollar bloc is the most important currency bloc in the world, while many European and Mediterranea ...
... currency to the US dollar and the anchor for monetary policies in the European Monetary System. Other countries in Latin America and Asia kept relatively fixed unilateral pegs to the USD. Today, the US dollar bloc is the most important currency bloc in the world, while many European and Mediterranea ...
The carry trade and recent yen movements
... more open financial markets ought to induce them to look to other parts of the world offering better combinations of risks and returns3. To evaluate this bias and its change over time, we compare the proportion of domestic securities in a portfolio of financial assets held by domestic investors and ...
... more open financial markets ought to induce them to look to other parts of the world offering better combinations of risks and returns3. To evaluate this bias and its change over time, we compare the proportion of domestic securities in a portfolio of financial assets held by domestic investors and ...
Absorption Approach
... improves or worsens depends on the relative changes in these two variables. ...
... improves or worsens depends on the relative changes in these two variables. ...
Prospects for the Financial System and Markets
... panel and consumer loans on the bottom panel. ...
... panel and consumer loans on the bottom panel. ...
CURRENCY BOARDS Steve H. Hanke and Kurt Schuler
... The currency board system is a well-tried system with an excellent record (Schuler 1992). It has existed in over 60 countries, and in all cases maintained convertibility at a fixed exchange rate. Even though currency boards performed well, most currency boards fell victim to intellectual fashions of ...
... The currency board system is a well-tried system with an excellent record (Schuler 1992). It has existed in over 60 countries, and in all cases maintained convertibility at a fixed exchange rate. Even though currency boards performed well, most currency boards fell victim to intellectual fashions of ...
MonetaryTools
... another bank in the Federal funds market and pay the Federal Funds rate. It can stop making new loans and keep as reserves the proceeds of loans that are paid off. ...
... another bank in the Federal funds market and pay the Federal Funds rate. It can stop making new loans and keep as reserves the proceeds of loans that are paid off. ...
1 Monetary Tools
... market and pay the Federal Funds rate. It can stop making new loans and keep as reserves the proceeds of loans that are paid off. ...
... market and pay the Federal Funds rate. It can stop making new loans and keep as reserves the proceeds of loans that are paid off. ...
Foreign Reserve Hoarding and Risk of Greater Foreign Trade
... regarded as the war chest against different risks arising from short-term external debts, trade deficits, large fiscal debts, and so on. The benefit side of reserve accumulation has been investigated quite fully with much less serious research on the cost side. Frenkel and Jovanovic (1981) asserted ...
... regarded as the war chest against different risks arising from short-term external debts, trade deficits, large fiscal debts, and so on. The benefit side of reserve accumulation has been investigated quite fully with much less serious research on the cost side. Frenkel and Jovanovic (1981) asserted ...
HOW TO SAVE THE EURO AND THE EUROPEAN UNION?
... The 489 billion euros in three-year loans allotted in 2011 by the European Central Bank (hereinafter referred to as – ECB) to the Eurozone banks as well as the financial and fiscal austerity measures adopted for restraining the growth of national debts in the member states have slightly diminished t ...
... The 489 billion euros in three-year loans allotted in 2011 by the European Central Bank (hereinafter referred to as – ECB) to the Eurozone banks as well as the financial and fiscal austerity measures adopted for restraining the growth of national debts in the member states have slightly diminished t ...
Slide 1
... differences in the growth rate of money supply and growth in money demand due to income growth. Liberal economies have free capital mobility: there is no control in inflow and outflow of capital; exchange rate is determined endogenously weaker economies cannot commit to free capital mobility and ...
... differences in the growth rate of money supply and growth in money demand due to income growth. Liberal economies have free capital mobility: there is no control in inflow and outflow of capital; exchange rate is determined endogenously weaker economies cannot commit to free capital mobility and ...
Economic and Financial Stability via Exchange Rate Volatility
... potential for a corporate sector credit boom. • Currency appreciation was also shifting part of existing domestic demand from nontradeables to tradeables along the long-term trend towards higher consumption of non-tradeables, contributing to a more balanced macroeconomic and structural dynamics. • H ...
... potential for a corporate sector credit boom. • Currency appreciation was also shifting part of existing domestic demand from nontradeables to tradeables along the long-term trend towards higher consumption of non-tradeables, contributing to a more balanced macroeconomic and structural dynamics. • H ...
ch_17_p
... • In the early 1990s, Mexico was an attractive place for foreign investment, especially from NAFTA partners. • During 1994, political developments caused an increase in Mexico’s risk premium () due to increases in default risk and exchange rate risk: ...
... • In the early 1990s, Mexico was an attractive place for foreign investment, especially from NAFTA partners. • During 1994, political developments caused an increase in Mexico’s risk premium () due to increases in default risk and exchange rate risk: ...
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.