Rachet Effects in Currency Substitution PDF Download

Author: Mr.Joannes Mongardini
Publisher: International Monetary Fund
ISBN: 1451852592
Category : Business & Economics
Languages : en
Pages : 24

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Book Description
Currency substitution is now a common issue in the design of monetary policy in most transition economies. This paper analyzes the persistence of this phenomenon in the Kyrgyz Republic by including a ratchet variable in the model specification. The main conclusion of the paper is that, while some degree of persistence is present in the allocation of bank deposit, currency substitution in the economy at large has not yet reached a point where reversing it would be difficult. In this regard, there is still room for monetary policy to influence currency allocation in the private sector.

Author: Joannes Mongardini
Publisher:
ISBN:
Category : Currency substitution
Languages : en
Pages : 32

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Book Description

Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 145197423X
Category : Business & Economics
Languages : en
Pages : 128

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Book Description
This paper analyzes portfolio diversification, leverage, and financial contagion. It studies the extent to which basic principles of portfolio diversification explain “contagious selling” of financial assets when there are purely local shocks. The paper demonstrates that the elementary portfolio theory offers key insights into “contagion.” Most important, portfolio diversification and leverage are sufficient to explain why an investor will find it optimal to significantly reduce all risky asset positions when an adverse shock impacts just one asset.

Author: Henk Jager
Publisher: Bloomsbury Publishing
ISBN: 0230344364
Category : Business & Economics
Languages : en
Pages : 424

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Book Description
The second edition of Introduction to International Economics is a non-technical introduction to international economics that builds on the strengths of the first edition. It analyses in a practical way how the internationalization of economic activities influences companies, investors and consumers, as well as foreign and domestic markets. While the book is policy-oriented, the adequate historical and theoretical context is provided. All concepts are discussed in a non-mathematical way and graphic analysis is used to clarify explanations, which makes it ideal for business and MBA students. International economics is attracting ever more attention due to the recent worldwide economic crisis, and this book gives a truly global perspective by discussing real-world examples and case studies from different sectors, including from the Americas, Europe and Asia. New features in this edition include the following: - Updated empirical material - The chapter on balance of payments, the foreign exchange market and their relationship has been completely rewritten - Expanded material on developments in the European monetary integration process - More focus on issues in emerging economies, such as the practice and lessons of currency boards, dollarization, and the occurrence of currency crises

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 145182131X
Category : Business & Economics
Languages : en
Pages : 131

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Book Description
This paper reviews economic developments in the Kyrgyz Republic during 1995–99. After having contracted by about 50 percent between 1992 and 1995, real GDP recovered strongly in 1996, with a growth rate of more than 7 percent. The main source behind this increase was a strong growth of the agricultural sector, which continued the following year, and, combined with the startup of the Kumtor gold mine, led to a real GDP growth rate of almost 10 percent in 1997. During 1998, growth slowed down to about 2 percent.

Author: Hasan Dinçer
Publisher: Springer
ISBN: 3319471724
Category : Business & Economics
Languages : en
Pages : 380

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Book Description
This book presents a broad overview of risk management in the banking industry, with a special focus on strategic thinking and decision-making. It reveals the broader context behind decision models and approaches to risk management in the financial industry, linking the regulatory landscape for capital management and risk to strategic thinking, together with behavioral and cultural assessments.

Author: Ms.Rina Bhattacharya
Publisher: International Monetary Fund
ISBN: 1451855931
Category : Business & Economics
Languages : en
Pages : 43

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Book Description
This paper addresses the issue of the appropriate exchange rate regimes for Jordan and Lebanon in the context of the literature on optimum currency areas and the arguments concerning the use of the exchange rate as a nominal anchor for the economy. It presents some empirical results on the nature of output shocks in Jordan and Lebanon in the recent past, on the price sensitivity of exports from Jordan, and on currency and asset substitution in both countries. It does not directly address the issue of whether the current exchange rate in either country is overvalued or not, nor does it discuss the issue of an appropriate exit strategy from the current peg.

Author: Nienke Oomes
Publisher: International Monetary Fund
ISBN: 1451851936
Category : Business & Economics
Languages : en
Pages : 37

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Book Description
Dollarization in Russia increased rapidly during the early 1990s, but failed to come down in the second half of the 1990s in spite of exchange rate stabilization. To explain this "dollarization hysteresis," this paper develops a model in which network externalities in the demand for currency can generate multiple stable steady states for the dollarization ratio. The model is estimated using a new source of data on dollar currency holdings in Russia. On the basis of these estimates, which confirm the existence of network externalities, the paper discusses several policies that could result in a permanent decrease in dollarization.

Author: Ralph Chami
Publisher: Oxford University Press
ISBN: 0192594532
Category : Business & Economics
Languages : en
Pages : 496

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Book Description
Setting macroeconomic policy is especially difficult in fragile states. Political legitimacy concerns are heightened, raising issues such as who the policymakers are, what incentives they face, and how the process of policymaking is likely to work under limited legitimacy and high uncertainty both about the macroeconomic environment as well as policy effectiveness. In addition, fragility expands the range of policy objectives in ways that may constrain the attainment of standard macroeconomic objectives. Specifically, in the context of fragility policymakers also need to focus on measures to mitigate fragility itself - i.e., they need to address issues such as regional and ethnic economic disparities, youth unemployment, and food price inflation. Socio-political developments around the world have thus pushed policymakers to broaden their toolkit to improve the effectiveness of macroeconomic management in the face of these constraints. The chapters in Macroeconomic Policy in Fragile States address these issues, both by giving an analytical context from which policymakers can build to answer the questions they face in fragile situations as well as by providing lessons drawn from empirical analyses and case studies. The first section of the volume discusses the interactions between political economy considerations and macroeconomic policymaking. The second section covers the private sector environment in fragile states. The third section focuses on macroeconomic policy, especially fiscal policy, monetary policy, exchange rate policy, external flows, and aid effectiveness. The last section explains the role of the IMF in fragile states and concludes by presenting case studies from the Middle East and from Sub-Saharan Africa. The contributors to the volume are economists and political scientists from academia as well as policymakers from international organizations and from countries affected by fragility.

Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 1451973748
Category : Business & Economics
Languages : en
Pages : 140

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Book Description
This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It looks at what precisely is meant by herding, the causes of herd behavior, the success of existing studies in identifying the phenomenon, and the effect that herding has on financial markets. The paper also surveys a selected number of studies that evaluated the demand for money using the error-correction model approach in the 1990s across a range of industrial and developing countries.