... point of departure 5.1 Introduction 5.2 The real andthe financial part ofthe economy 5.2.1 The structure ofthe real part 5.2.2 The structure ofthe financial part 5.3 The structure ofthe economy ... to arise fromthe interplay ofthe real estate boom andthe financial market boom In the USA the financial market crisisof 2007/8 originated in the interaction ofthe housing market andthe banking ... dynamics ofcreditand debt default Currency crisis, credit crunches and large output loss 2.1 The emergence of currency crises With the end ofthe Bretton Woods system in the 1970s andthe financial...
... (CN) derived fromthe decomposition ofthe XX matrix, where X is the matrix of regressor variables The CN for a matrix is defined as the square root ofthe ratio ofthe largest to the smallest ... ofthe dollar against a basket of currencies ofthe other Group of Ten countries plus Switzerland which is also published in the Federal Reserve Bulletin The weights used in the calculation of ... coefficients For these three tests, the b-test reports the significance of either the money- center variable or the post-October 1979 variable The a-test reports the F-value for the joint test that the coefficients...
... risks The results of this study provide the first formal estimates ofthe joint effect of derivative exposures on the systematic interest rate and exchange rate risks of U S banks The rest ofthe ... to examine the nature of these covariances in more detail To this end, suppose beginning ofthe period The bank’s net asset at the end ofthe period in dollar terms is (6) where q and q* are ... exposure effect, Journal of Finance 49, December, 1755-1786 Brewer, E and G.D Koppenhaver, 1992 Theimpactof standby letters ofcredit on bank risk: A Note, Journal of Banking and Finance 16, December,...
... I In a world of countries and unrestricted capital flows, the real interest rates will be the same If they are not the same, arbitrage will equalize them For example, = 5%, = 10% The investor ... Effect - The Fisher effect describes the relationship between inflation, real interest rates and nominal interest rates - The nominal interest rate equals the real interest rates plus the expected ... investor will borrow capital in US and invest it in Japan increases, decreses => = The differences in nominal interest rates is also = differences in expected rates of inflation International Fisher...
... 100.00 The use of bilateral trade and export weights is based on the restrictive assumption that from buyer’s point of view, the elasticity of substitution between the sources of supply is zero The ... chosen as the numeraire currency in the construction of REER/ NEER indices since the exchange value ofthe SDR is determined by a weighted average of a basket of currencies, which would offset fluctuations ... Moreover, from a statistical perspective, the choice of SDR as numeraire facilitates inclusion ofthe US, which is a major trading partner of India The exchange rate of a currency is expressed as the...
... upon at the time ofthe conclusion ofthe contract (the short leg), and a reverse exchange ofthe same two currencies at a date further in the future at a rate (generally different fromthe rate ... percent of turnover, up from 56 percent In the foreign exchange swaps market, the top ten dealers accounted for 81 percent of market share, unchanged fromthe previous survey The share ofthe top ... attributable to the consolidation of firms in 2008 andthe exit of some dealers fromthe U.S market Participating dealers were commercial banks, U.S offices of foreign banking organizations, and securities...
... volatility except for the periods ofthe Asian FinancialCrisisandthe recent World FinancialCrisisThe low volatility ofthe exchange rate, coupled with the one-way nature of most daily movements, ... through the setting of both the official exchange rate andthe allowable trading band, frequent instances of nonclearance ofthe market were unavoidable During much ofthe period under study, the ... movements in the nominal bilateral VND/USD rate The former period covered the launch ofthe Doi Moi process while the latter involved the Asian FinancialCrisisandthe implementation of trade liberalization...
... of Japan, the United States andthe euro area with rational expectations and nominal rigidities First, we provide a quantitative analysis oftheimpactofthe zero bound on the effectiveness of ... study ofthe effect ofthe zero bound on the distributions of output and inflation in the U.S economy Building on this analysis Reifschneider and Williams (2000) explored the consequences ofthe ... target andthe equilibrium real interest rate) andthe choice ofthe policy rule In the following we present results from stochastic simulations of our model with the shocks drawn fromthe covariance...
... affect the exporter’s profitability, it can affect the probability of loan default and, correspondingly, the value ofthe loan andthe profitability ofthe bank 15 The estimates of exchange rate exposure ... reject the hypothesis that the coefficient is zero for five ofthe U.S firms and for eight ofthe Japanese firms This represents about 17 percent ofthe U S sample and about percent ofthe Japanese ... construct estimates ofthe exchange rate sensitivity ofthe equity returns ofthe U.S bank holding companies and compare them to those ofthe Japanese banks We find that the stock returns of a significant...
... nghiên cứu trước Krugman , 1987, “Pricing to market when the exchange rate changes” Nghiên cứu vào phân tích chứng việc định giá theo thị trường – định nghĩa việc trì nâng giá hàng hóa xuất ... dẫn hoàn toàn đến giá nhập Tổng quan nghiên cứu trước Gosh and Wolf, 2001, “Imperfect Exchange Rate PassThrough: Strategic Pricing and Menu Costs” Nghiên cứu hiệu ứng truyền dẫn ngắn hạn không ... đưa vào phân tích nghiên cứu Tổng quan nghiên cứu trước McCarthy, 2000, “Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies” Bài báo nghiên...
... in the design ofthe study and interpretation of results, and suggested edits and revisions to the manuscript JS contributed to the acquisition and interpretation ofthe data, participated in the ... [21] The Hausman specification test for the appropriateness ofthe random effects estimator rejected the null hypothesis of no systematic differences between coefficients from fixed and random ... interactions and second-order terms in the case ofthe SF-36, and on index scores plus second-order terms in the case ofthe NIHSS and Barthel algorithms For all algorithms, we retained interaction and...
... puts the expanded model in the control theory framework and gives a sensitivity analyse 2.2 THE MODEL 2.2.1 The Model Setup The model consists ofthe GDP identity and functions for each of its ... interaction ofthe two economies, the effect of monetary policy on the domestic economy andthe difference between fiscal and monetary policy The price variables are the price level, wages, the interest ... The equations explain the consumption in China and Hong Kong respectively In theory, consumption is also a function ofthe interest rate andthe price level: the higher the interest rate or the...
... First, the thesis examines overall theories on the relationbetween exchange rate andthe balance of payments - Second, the thesis investigates the reality ofthe balance of payments, policies of ... general theories and analyse the reality ofthe causal relation between exchange rate andthe balance of payments in Vietnam, the thesis proposes the orientation and solutions to improve the positive ... the deficit ofthe balance of payments and vice versa, the decrease in domestic creadit supply will lead to the surplus ofthe balance of payments On the other hand, in the system of flexible exchange...
... observes x andthe fraction of speculators who decide to attack the band, α, and then decides whether or not to defend the band If he does, the exchange rate stays at the boundary ofthe band andthe ... and Reinhart 2002) On the other hand, following the EMS currency crisis at the beginning ofthe 1990s, the prior system of cooperative pegs was replaced by wide bands until the formation ofthe ... abstracts fromthe effect of a band on the behavior ofthe exchange rate within the band, which is a main focus ofthe traditional target zone literature.6 We are aware of only three other papers...
... observes x andthe fraction of speculators who decide to attack the band, α, and then decides whether or not to defend the band If he does, the exchange rate stays at the boundary ofthe band andthe ... and Reinhart 2002) On the other hand, following the EMS currency crisis at the beginning ofthe 1990s, the prior system of cooperative pegs was replaced by wide bands until the formation ofthe ... abstracts fromthe effect of a band on the behavior ofthe exchange rate within the band, which is a main focus ofthe traditional target zone literature.6 We are aware of only three other papers...
... study, the thesis uses monthly data from 2000 to 2012 1.5 Structure ofthe Thesis The thesis includes chapters as follow: • • Chapter - Introduction Chapter - Theoretical foundation ofimpactof ... the U.S.’s demand for coffee of Vietnam will decrease When there is no demand, the good would be removed from export list to the U.S On the other hand, if exchange rate rises, list of goods exported ... after thecrisis in 1998 confirmed that the rise of domestic output is the result ofthe devaluation of Ruble in 1998 FDI Effect – The sharp devaluation ofthe Ruble in 1998 sharply reduced the...