Draft: October 14, 2008 DOLLAR DOMINANCE, EURO ASPIRATIONS
... laureate Robert Mundell, who early on expressed no doubt that the euro “will challenge the status of the dollar and alter the power configuration of the system” (Mundell 2000: 57). Achievements, however, have fallen short of aspiration. Admittedly, the euro has done well in exchange-rate terms. Its ...
... laureate Robert Mundell, who early on expressed no doubt that the euro “will challenge the status of the dollar and alter the power configuration of the system” (Mundell 2000: 57). Achievements, however, have fallen short of aspiration. Admittedly, the euro has done well in exchange-rate terms. Its ...
Technical Line: New Venezuelan currency regime — same
... corporate and individual currency needs, the lowest level of disbursements to the private sector since 2003. The amount was 31% lower than in 2013 and 38% lower than in 2012. According to Ecoanalítica, a financial advisory and economic research organization, approximately 31% of Venezuela’s domestic ...
... corporate and individual currency needs, the lowest level of disbursements to the private sector since 2003. The amount was 31% lower than in 2013 and 38% lower than in 2012. According to Ecoanalítica, a financial advisory and economic research organization, approximately 31% of Venezuela’s domestic ...
Ch 6 MCQs File
... C) reductions in foreign holdings of U.S. assets D) U.S hoarding of foreign currencies 4) Which of the following would give rise to a debit in the balance of payments? A) foreign purchases of U.S. assets B) dividends earned from foreign companies C) dividends paid to foreigners D) direct investment ...
... C) reductions in foreign holdings of U.S. assets D) U.S hoarding of foreign currencies 4) Which of the following would give rise to a debit in the balance of payments? A) foreign purchases of U.S. assets B) dividends earned from foreign companies C) dividends paid to foreigners D) direct investment ...
Economics Ms. Harris Chapters 10 and 19
... bank is ultimately responsible for the value of the money. • Until 1971, the U.S. dollar was fixed to the price of gold. Many economists feel that reverting to the gold standard would quell inflation because of the fixed value feature. ...
... bank is ultimately responsible for the value of the money. • Until 1971, the U.S. dollar was fixed to the price of gold. Many economists feel that reverting to the gold standard would quell inflation because of the fixed value feature. ...
Economic Effects of Currency Unions ∗ Silvana Tenreyro Robert J. Barro
... crease the propensity to share a common currency as well as encourage trade between two countries. Similarly, countries willing to share a common currency may also take additional (unmeasured) policies to foster integration and facilitate trade. These omitted characteristics could lead to a positiv ...
... crease the propensity to share a common currency as well as encourage trade between two countries. Similarly, countries willing to share a common currency may also take additional (unmeasured) policies to foster integration and facilitate trade. These omitted characteristics could lead to a positiv ...
NBER WORKING PAPER SERIES ECONOMIC EFFECTS OF CURRENCY UNIONS Silvana Tenreyro
... countries do or do not share a common currency. The main results of this study are the following. First, regarding the motivation to adopt a foreign anchor’s currency, the probability of adoption increases when i) the client speaks the same language as the anchor, ii) the client is geographically c ...
... countries do or do not share a common currency. The main results of this study are the following. First, regarding the motivation to adopt a foreign anchor’s currency, the probability of adoption increases when i) the client speaks the same language as the anchor, ii) the client is geographically c ...
Course # and Course Name
... Forecasters study fundamentals of economy to predict economic trends Plot how past econ events impacted XRs Use linear regression to forecast ...
... Forecasters study fundamentals of economy to predict economic trends Plot how past econ events impacted XRs Use linear regression to forecast ...
Term paper for the course `Comparative macroeconomic policy`
... from this property it is obvious that one should worry about crises, as it is necessary to minimize economic damage caused by them. This is where there can be scope for government activities in overcoming consequences of crises. Moreover, it certainly makes sense to try to prevent crises, as long as ...
... from this property it is obvious that one should worry about crises, as it is necessary to minimize economic damage caused by them. This is where there can be scope for government activities in overcoming consequences of crises. Moreover, it certainly makes sense to try to prevent crises, as long as ...
Your foreign exchange specialist
... Placements they can potentially take advantage of exchange rate fluctuations to gain a better return. Our Dual Currency Placements are innovative short-term foreign exchange products that are suitable for sophisticated investors. They can potentially offer greater returns than Time Deposits, althoug ...
... Placements they can potentially take advantage of exchange rate fluctuations to gain a better return. Our Dual Currency Placements are innovative short-term foreign exchange products that are suitable for sophisticated investors. They can potentially offer greater returns than Time Deposits, althoug ...
I Twelfth District Policymaking: The Early Years Federal Reserve Bank of San Francisco
... The discount rate was intended to be the principal policy tool of each Federal Reserve Bank. Although the Federal Reserve Act gave no explicit instructions on how it should be set, it was assumed that the Reserve Banks would follow the rules of the game of the gold standard and, in the face of a gol ...
... The discount rate was intended to be the principal policy tool of each Federal Reserve Bank. Although the Federal Reserve Act gave no explicit instructions on how it should be set, it was assumed that the Reserve Banks would follow the rules of the game of the gold standard and, in the face of a gol ...
PowerPoint # 8: The Federal Reserve
... The discount rate is the interest rate the Fed charges depository institutions (banks, savings and loans…) for loans If the Fed raises the discount rate, it is increasing the cost of borrowing Banks will be less likely to borrow Their reserves will not increase They’ll have less $ available for ...
... The discount rate is the interest rate the Fed charges depository institutions (banks, savings and loans…) for loans If the Fed raises the discount rate, it is increasing the cost of borrowing Banks will be less likely to borrow Their reserves will not increase They’ll have less $ available for ...
Answers to Textbook Problems
... 11. If the market expects the devaluation to “stick,” the home nominal interest rate falls to the world level afterward, money demand rises, and the central bank buys foreign assets with domestic money to prevent excess money demand from appreciating the currency. The central bank thus gains officia ...
... 11. If the market expects the devaluation to “stick,” the home nominal interest rate falls to the world level afterward, money demand rises, and the central bank buys foreign assets with domestic money to prevent excess money demand from appreciating the currency. The central bank thus gains officia ...
Problem Sheet 1
... widely used tool of monetary policy in developed economies). a. If the Fed buys bonds, it pays for them with money. So there is more money. b. If the Fed raises the discount rate banks will borrow less from the Fed, and so have fewer reserves, which decreases the money supply. c. If the Fed raises t ...
... widely used tool of monetary policy in developed economies). a. If the Fed buys bonds, it pays for them with money. So there is more money. b. If the Fed raises the discount rate banks will borrow less from the Fed, and so have fewer reserves, which decreases the money supply. c. If the Fed raises t ...
NBER WORKING PAPER SERIES WHY IS THE DOLLAR SO HIGH? Martin Feldstein
... percent and promising to raise it only slowly, the long term rates fell, including the rates on long term mortgages. Since households can pay off and refinance their mortgages without penalty, many households did just that. They repaid their existing mortgages by borrowing at new lower interest rate ...
... percent and promising to raise it only slowly, the long term rates fell, including the rates on long term mortgages. Since households can pay off and refinance their mortgages without penalty, many households did just that. They repaid their existing mortgages by borrowing at new lower interest rate ...
Chapter 11
... International Monetary Fund (IMF) resolved this crisis—an organization formed in large part to help nations avoid such foreign currency crises and help them recover when crises occur. Such a rescue is controversial, however, since it creates a moral hazard problem. Moral hazard occurs when a decisio ...
... International Monetary Fund (IMF) resolved this crisis—an organization formed in large part to help nations avoid such foreign currency crises and help them recover when crises occur. Such a rescue is controversial, however, since it creates a moral hazard problem. Moral hazard occurs when a decisio ...
"The euro - stability anchor in turbulent times
... of asymmetric shocks or at least their harmful side-effects have diminished and will diminish further, especially if structural policies foster the convergence in productivity and living standards between EMU member states. Most studies published on the occasion of the tenth anniversary agreed that ...
... of asymmetric shocks or at least their harmful side-effects have diminished and will diminish further, especially if structural policies foster the convergence in productivity and living standards between EMU member states. Most studies published on the occasion of the tenth anniversary agreed that ...
Assessing the economic merits of joining the Euro
... monetary policy are ineffective at influencing GDP in the long run due to a vertical aggregate supply curve. So taken into account these two facts, why should a country consider giving up it monetary independence? • In reality, macroeconomic policy has an important role to play. Economies often expe ...
... monetary policy are ineffective at influencing GDP in the long run due to a vertical aggregate supply curve. So taken into account these two facts, why should a country consider giving up it monetary independence? • In reality, macroeconomic policy has an important role to play. Economies often expe ...
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.