The Trade Deficit: The Biggest Obstacle to Full Employment
... The value of the dollar relative to foreign currencies is a major factor influencing the trade deficit, and in this regard it is important to recognize that the value of the dollar is in part a policy variable. This doesn’t mean that we can simply set any value of the dollar we want, just as the Fed ...
... The value of the dollar relative to foreign currencies is a major factor influencing the trade deficit, and in this regard it is important to recognize that the value of the dollar is in part a policy variable. This doesn’t mean that we can simply set any value of the dollar we want, just as the Fed ...
Contents of the course - Solvay Brussels School
... Not worked as in theory : currencies more considered as international money; manipulation of interest rates by central banks, sterilisation policies ; positive correlation of prices and wages accross countries, whereas the opposite was expected. The gold standard did not bring the price stability ...
... Not worked as in theory : currencies more considered as international money; manipulation of interest rates by central banks, sterilisation policies ; positive correlation of prices and wages accross countries, whereas the opposite was expected. The gold standard did not bring the price stability ...
Discussions over the Currency Policy in the NEP Period
... Russian and British/American commodities indexes on the pre-war basis and the changes in pound sterling and dollar exchange rate to the pre-war parity, the authors concluded that the export is profitable. They also pointed out that the importance of the currency policy for the development of export ...
... Russian and British/American commodities indexes on the pre-war basis and the changes in pound sterling and dollar exchange rate to the pre-war parity, the authors concluded that the export is profitable. They also pointed out that the importance of the currency policy for the development of export ...
Rebalancing the Global Economy
... domestic production, or a higher rate of investment than can be financed by domestic savings, or that owners of wealth claims in surplus countries are willing to hold assets denominated in the currency of the deficit country. These are three aspects of the same phenomenon. Second, the capital balanc ...
... domestic production, or a higher rate of investment than can be financed by domestic savings, or that owners of wealth claims in surplus countries are willing to hold assets denominated in the currency of the deficit country. These are three aspects of the same phenomenon. Second, the capital balanc ...
Internationalization of Renminbi: What does the Evidence Suggest?
... 1949 shortly before the communist takeover of the Mainland to fight the hyperinflation that plagued the Middle Kingdom under the Kuomintang government (Financial Times 2008). Ever since the opening up of the Chinese economy in the late 1970s the RMB has mostly been kept undervalued as part of Beijin ...
... 1949 shortly before the communist takeover of the Mainland to fight the hyperinflation that plagued the Middle Kingdom under the Kuomintang government (Financial Times 2008). Ever since the opening up of the Chinese economy in the late 1970s the RMB has mostly been kept undervalued as part of Beijin ...
File
... banking system and can lend out as much as needed to ensure that banks and thrifts meet their cash obligations. ...
... banking system and can lend out as much as needed to ensure that banks and thrifts meet their cash obligations. ...
fixed exchange rate - McGraw Hill Higher Education
... between defending the currency and stabilizing the economy • Fixed rates can be beneficial for small economies – Argentina fought hyperinflation by valuing its peso on par with the dollar • Inflation quickly decreased and stayed stable for more than 10 years • Fixed exchange system broke down becaus ...
... between defending the currency and stabilizing the economy • Fixed rates can be beneficial for small economies – Argentina fought hyperinflation by valuing its peso on par with the dollar • Inflation quickly decreased and stayed stable for more than 10 years • Fixed exchange system broke down becaus ...
operational framework of monetary and macroprudential
... that are not export-oriented and contributed to the growth of imports of goods and services directly or indirectly, creating adverse conditions for survival and a higher market placement of domestic industrial and agricultural output. Between 1993 and 2013 over 70% of all FDI in Croatia involved inv ...
... that are not export-oriented and contributed to the growth of imports of goods and services directly or indirectly, creating adverse conditions for survival and a higher market placement of domestic industrial and agricultural output. Between 1993 and 2013 over 70% of all FDI in Croatia involved inv ...
The Necessity of a Lower Dollar and the Route There
... the mortgage on their home, and then nothing other than their Social Security to support them in retirement.2 It is difficult to see the benefit to the economy or the country if a reduction in the government deficit simply led to a loss of private savings.3 (Given the current weakness in the economy ...
... the mortgage on their home, and then nothing other than their Social Security to support them in retirement.2 It is difficult to see the benefit to the economy or the country if a reduction in the government deficit simply led to a loss of private savings.3 (Given the current weakness in the economy ...
1 Concerns about the Fed's New Balance Sheet James D. Hamilton
... some risk, whereas simply holding them as deposits with the Fed does not, paying interest on reserves greatly increases the demand for reserves. Indeed, most of the new reserve deposits created by the Fed ended up simply being held as excess reserves, the magnitude of which was $818 billion as of Ma ...
... some risk, whereas simply holding them as deposits with the Fed does not, paying interest on reserves greatly increases the demand for reserves. Indeed, most of the new reserve deposits created by the Fed ended up simply being held as excess reserves, the magnitude of which was $818 billion as of Ma ...
real exchange rate
... According to the theory of purchasingpower 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 purchasingpower 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. ...
real exchange rate
... According to the theory of purchasingpower 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 purchasingpower 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. ...
Determinants of Foreign Currency Borrowing in the New Member
... Jurgilas (2007) develop a theoretical and empirical model that shows how the presence of foreign banks in the NMS increases liability dollarization. Interest rate differentials between local and foreign currency are believed to drive the choice between borrowing in domestic versus foreign currency. ...
... Jurgilas (2007) develop a theoretical and empirical model that shows how the presence of foreign banks in the NMS increases liability dollarization. Interest rate differentials between local and foreign currency are believed to drive the choice between borrowing in domestic versus foreign currency. ...
FRBSF E L CONOMIC ETTER
... Banks and other depository institutions (for convenience, we’ll refer to all of these as “banks”) keep a certain amount of funds in reserve to meet unexpected outflows. Banks can keep these reserves as cash in their vaults or as deposits with the Fed. In fact, banks are required to hold a certain am ...
... Banks and other depository institutions (for convenience, we’ll refer to all of these as “banks”) keep a certain amount of funds in reserve to meet unexpected outflows. Banks can keep these reserves as cash in their vaults or as deposits with the Fed. In fact, banks are required to hold a certain am ...
Slides Chapter 16 - Graduate Institute of International and
... The international role of the euro • As it is internally, a currency can be: – An international unit of account: trade invoicing – An international medium of exchange: a vehicule currency – An international store of value: foreign exchange reserves, individual hoarding ...
... The international role of the euro • As it is internally, a currency can be: – An international unit of account: trade invoicing – An international medium of exchange: a vehicule currency – An international store of value: foreign exchange reserves, individual hoarding ...
No single currency regime is right for all countries or at all times
... (3) A “truly fixed” exchange rate. Members of the francophone West African and Central African currency unions fix to the French franc, and many countries fix to the dollar. (4) Adjustable peg. “Fixed but adjustable” was the description of exchange-rate pegs under the Bretton Woods regime. Most cou ...
... (3) A “truly fixed” exchange rate. Members of the francophone West African and Central African currency unions fix to the French franc, and many countries fix to the dollar. (4) Adjustable peg. “Fixed but adjustable” was the description of exchange-rate pegs under the Bretton Woods regime. Most cou ...
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.