Download or read book Two Essays on Monetary Union and International Finance written by Nai-Wei Chen and published by . This book was released on 2005 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary Stability through International Cooperation written by Age F.P. Bakker and published by Springer Science & Business Media. This book was released on 2013-06-29 with total page 390 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary Stability through International Cooperation contains essays written by high ranking policy makers in the field of central banking and international finance, written in honour of André Szász, who has been Executive Director of De Nederlandsche Bank since 1973, responsible for international monetary relations. Colleagues from several other central banks, from finance ministries and from international institutions pay tribute to him by analysing the conditions fostering European as well as global monetary stability. The book provides an inside view of the thinking of monetary officials at the turn of 1993/1994, when the currency turmoil in the ERM of mid-1993 had subsided and views on its implications for exchange rate management and, more generally, for European integration were taking shape. Topics include exchange rate stabilisation, policy coordination and central bank independence. A second section, on the international monetary system, includes essays on the policy implications of present day dynamic financial markets as well as the role of the IMF. This book, written by `insiders for an insider', provides valuable insights to those who are interested in contemporary international monetary relations.

Download or read book Three Essays on Imbalances in a Monetary Union written by Ida Maria Hjortsø and published by . This book was released on 2012 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the implications of imbalances within a monetary union. In the first chapter, I study how international financial frictions lead to international imbalances and affect optimal fiscal policy in a two-country, two-good DSGE model of a monetary union. I show that the presence of international imbalances affects the optimal conduct of cooperative fiscal policies when the traded goods are complements. Government expenditures optimally play a cross-country risk sharing role which is in conflict with the domestic stabilization role: optimal fiscal policy consists in setting government expenditures such as to reduce international imbalances at the expense of higher domestic inefficiencies. In the second chapter, I assess the implications of strategic fiscal policy interactions in a two-country DSGE model of a monetary union with nominal rigidities and international financial frictions. I show that the fiscal policy makers face an incentive to set fiscal policy such as to switch the terms of trade in their favour. This incentive results in a Nash equilibrium characterized by excessive inflation differentials as well as sub-optimally high current account imbalances within the monetary union. There are thus non-negligeable welfare losses associated with strategic fiscal policy making in a monetary union. The third chapter investigates empirically the degree of risk sharing in the European Economic and Monetary Union (EMU), using two different methods. The first measure relates to the capacity of consumption smoothing. This measure indicates that risk sharing is rather low and that the introduction of the common currency did not lead to higher intra-EMU risk sharing. The second measure is based on the welfare losses associated with deviations from full risk sharing. These welfare losses have fallen since the introduction of the common currency. However, this is mostly due to changes in macroeconomic risk - not to changes in risk sharing per se.

Download or read book International Financial Policy written by Mr.Jacob A. Frenkel and published by International Monetary Fund. This book was released on 1991-09-15 with total page 534 pages. Available in PDF, EPUB and Kindle. Book excerpt: During his distinguished career at the IMF, Jacques J. Polak served as both Director of Research and, subsequently as a member of the IMF Executive Board. His distinct contribution to the discipline of international financial policy is highlighted in this book edited by Jacob A. Frenkel and Morris Goldstein. The papers included were prepared for a conference, cosponsored by the Netherlands Bank and the IMF, held in Polak's honor in Washington, D.C., in January 1991.

Download or read book Monetary Integration written by Warner Max Corden and published by Princeton, N.J. : International Finance Section, Princeton University. This book was released on 1972 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The International Monetary System written by Peter B Kenen and published by Routledge. This book was released on 2019-09-06 with total page 405 pages. Available in PDF, EPUB and Kindle. Book excerpt: For 50 years, the International Finance Section at Princeton University has encouraged and published work in international finance. This volume, a semicentennial celebration of the Section's essays in international finance, is comprised of 12 essays.

Download or read book Can two countries share the same currency and both prosper written by Sabrina Schleimer and published by GRIN Verlag. This book was released on 2018-09-12 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2018 in the subject Economics - Finance, grade: 1,7, University of Strathclyde (Business School), course: International Financial Markets and Banking, language: English, abstract: This assignment will examine whether two countries can share the same currency and both prosper. In order to find out, arguments both in favour and in opposition to the research question will be discussed and evaluated. Finally, a conclusion will be drawn. Before starting a detailed discussion, it is vital to establish precise definitions of the terms “sharing a currency” and “prosper”. For the purpose of this paper, “sharing a currency” is defined as being a member of a monetary union. According to Bergin (2008), a monetary union, also referred to as a currency union, is an association of at least two sovereign states which give up their national currencies to adopt a new shared currency. The author further states that by doing so, the member countries surrender their control over money supply as well as monetary policy to a shared authority, a new central bank. There are multiple currency unions all over the world, which is why, to apply this broad definition, this paper will use the Economic and Monetary Union (EMU) as an example. The second important term, “prosper”, is a little more difficult to define as there is a vast number of possible prosperity indicators, such as the unemployment rate or the wage level. For the purpose of this paper, “prosperity” is defined in accordance with Fritz and Koch (2016) as the level of “economic development and material welfare”. Thus, if this level increases, prosperity in a state also does. Fritz and Koch (2016) argue that the higher the economic development in a country, the higher its individual and social prosperity. In order to gauge the level of prosperity of a state, a number of indicators are very useful. One of the most important indicators for prosperity is the Gross Domestic Product (GDP) of a country. According to the Organisation for Economic Co-operation and Development (OECD) (Gross domestic product (GDP), 2016), the GDP indicates “the expenditure of final goods and services minus imports”. In addition to the GDP, the level of trade is an important indicator for a nation’s prosperity. As explained by the World Bank (Exports of goods and services (% of GDP), 2017), it is determined by the exports of both goods and services as a share of the respective country’s GDP.

Download or read book International Monetary Problems and Supply Side Economics written by Lorie Tarshis and published by Palgrave Macmillan. This book was released on 1986-09-29 with total page 186 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Governing the World s Money written by David M. Andrews and published by Cornell University Press. This book was released on 2002 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effective governance of global money and finance is under enormous stress. Deep changes over the last decade in capital markets, exchange rate systems, and government finances suggest dramatic shifts in the contours of monetary power, with tensions rising between the functional logic of international economics and the geographic logic of state-centered politics. Governing the World's Money assesses those tensions and the prospects for their peaceful resolution. Governing the World's Money surveys the frontiers of the global monetary system in ten original essays. Leading scholars of international relations and economics explore the evolution of the instruments available to policy officials for monetary governance. As they analyze the contemporary reordering of political authority in a market-oriented global economy, they open new pathways for the study of regional monetary integration and international institutional reform.

Download or read book Three Essays on Currency Union and Trade written by Laura Lebastard and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis studies international trade, monetary policy and international macroeconomics. Chapter 1 examines the different characteristics of different fixed exchange rate regimes and assesses the effects of each of these characteristics on international trade. It appears that price transparency and transaction costs linked to the currency changes do not have a significant effect on trade; only the credibility of the fixed exchange rate regime (due to the absence of devaluation possibilities) increases trade significantly. This explains why only monetary union increases trade between its members from the first years of the exchange rate regime. Chapter 2 looks at the effects of the euro on trade during the 2008-2009 financial crisis.It seems that the euro amortized the trade drop observed throughout the world, owing to the absence of exchange rate volatility among its members. Chapter 3 presents a theoretical model to study the transmission of shocks in a vertically specialized economy, and proposes an optimal monetary policy to stabilize the economy. The model promotes symmetrical monetary policies between the two countries sharing a production mode based on global value chains.

Download or read book Essays on Monetary Economics and International Finance written by Salih Fendoglu and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book IMF Essays from a Time of Crisis written by Stanley Fischer and published by MIT Press. This book was released on 2005-08-12 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stanley Fischer served as First Deputy Managing Director of the International Monetary Fund from 1994 to 2001. IMF Essays from a Time of Crisis collects sixteen essays written for the most part during his time at the IMF, each updated with Fischer's later reflections on the issues raised. The IMF drew much criticism for some of its actions during Fischer's tenure, and he vigorously defends the "battlefield medicine" practiced by the IMF during a series of economic crises, which included the problems of economic transition in the former Soviet bloc and the Asian financial crisis. Fischer addresses the subsequent calls for reform of the international financial system and makes the case for the IMF as an international lender of last resort. The first section of essays, "The Role of the IMF and the Reform of the International Financial System," considers the IMF's role in the international financial system in light of the crises of the 1990s. The second section, "Macroeconomic Policy, Stabilization, and Transition," examines such topics as exchange rate regimes, inflation, and Eastern Europe's relation to the European Union. The final section, "Poverty and Development," reflects Fischer's basic belief that economic policies should explicitly target poverty reduction. These engaging and accessible essays will appeal not only to economics students, economists, and policymakers but also to the general reader interested in the international monetary system.

Download or read book Essays on Monetary Policy and International Finance written by Yifan Hu (Economist) and published by . This book was released on 2003 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book EMU written by Maurice Obstfeld and published by Princeton University Press. This book was released on 1998 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper I focus on two specific hazard areas in the transition from Stage Two to Stage Three of European economic and monetary union (EMU), as well as on some key problems of Stage Three that EMU's monetary and fiscal structures appear ill-prepared to handle. The transitional hazards are of considerable theoretical as well as policy interest: the best way to coordinate monetary stances and lock exchange parties for a smooth switch from eleven national currencies to a single joint currency. A third problems, one that is central for EMU and to any currency union, lies behind the difficulty of the transition: the possibility of nationally asymmetric real shocks. I review that topic in the context of Ireland's recent experience. The paper goes on to discuss weaknesses in the structure of Stage Three, already much noted, connected with the provision of lender of last resort facilities in the euro zone and the framework for supervising financial institutions. The deficit and debt limits embodies in the excessive deficits procedure of the Maastrich treaty and the subsequent Stability and Growth Pact have been justified by the threat high debts might pose to the stability of the euro zone's financial markets. I consider the past and prospective fiscal adjustments of the EMU 11, and suggest these might pose future difficulties for macroeconomic policy and growth.

Download or read book Essays in Economics and Finance written by Pablo Villanueva and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation focuses on the study of two main elements. First, I study the effect on financial decisions by local governments of different fiscal federalism arrangements at the supranational or federal level. In the first chapter, I develop a framework to analyze a risk sharing mechanism similar to the one employed among governments in the European Monetary Union, namely a bailout fund. This institutional setup produces strategic behavior and negative externalities in default and debt between countries. I develop a quantitative model of sovereign default with strategic interaction to estimate the welfare losses of these externalities. I contrast these with those generated by another risk sharing mechanism widely used among governments, fiscal centralization. Centralization tends to produce smaller welfare losses than a bailout fund. However, in both cases, the correction of the externalities would lead to Pareto improvements. The model rationalizes the detachment of sovereign credit risk from idiosyncratic macroeconomic variables. It suggests that in Europe, the link of this risk to global factors is related to the presence of the bailout fund and moral hazard. A correction of the latter would lead to a reduction of the correlation of sovereign yields and external macroeconomic variables. Finally, the model replicates the positive conditional correlation found in the data between yields on sovereign bonds of European countries and debt to GDP ratios of other countries in the monetary union. The second element of study of the dissertation, is the effect of taxes on the financial decisions of firms. In the second chapter, I develop a dynamic stochastic model of capital formation at the firm level, and use the asset price approach to study the incidence of a tax reform in Mexico in 2007 under which a tax on assets was eliminated and a tax on payments to factors of production was introduced. Under the latter, there is a higher degree of risk sharing between the government and firms. However, using simulated method of moments estimators I find that the rate that firms use to discount investment projects does not change with the reform. The reform leads to an increase in wages, capital formation and stock prices of capital intensive firms, while it implies a reduction in these variables for labor intensive firms. The effects of taxes on financial decision are also studied in the third chapter which was written jointly with Frédéric Panier and Francisco Pérez-González. We show that capital structure significantly responds to changing tax incentives. To identify the effect of taxes, we exploit the introduction of a novel tax provision (the notional interest deduction, or NID) as an arguably exogenous source of variation to the cost of using equity financing. The NID, introduced in Belgium in 2006, drastically reduces the tax-driven distortions that favor the use of debt financing by allowing firms to deduct from their taxable income a notional interest charge that is a function of equity. Our main findings are four. First, the NID led to a significant increase in the share of equity in the capital structure. Second, both incumbent and new firms increase their equity ratios after the introduction of the NID. Third, the largest responses to these changing tax incentives are found among large and new firms. Fourth, the increase in equity ratios is explained by higher equity levels and not by a reduction in other liabilities. The results are robust to using data from neighboring countries as a control group, as well as relying on a battery of tests aimed at isolating the effect of other potential confounding variables. Overall, the evidence demonstrates that tax policies designed to encourage the use of equity financing are likely to lead to more capitalized firms. In summary, the dissertation focuses on understanding the implications of different financial arrangements between the public sector and private and public agents. The recent financial crisis has showed that government decisions have important implications for risk allocation and financial decisions across other governments as well as the private sector. This dissertation sheds light on what these implications are. The complexity of the economic and financial relationships between the public and private sector led me to relate this dissertation to several fields such as Corporate Finance, Asset Pricing, Public Economics, Macroeconomics, and International Finance. Therefore, the techniques used across the document are very diverse: macroeconomic modelling, structural estimation, and reduced form empirical strategies. This heterogeneity across fields and techniques reflects my conviction that the intricacies of the discipline of Economics require a deepening in the interaction and understanding across fields.

Download or read book Essays in International Finance and Macroeconomics written by Galip K. Ozhan and published by . This book was released on 2016 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of essays in the intersection of international finance, macroeconomics, and monetary economics. The first essay studies the role of the financial sector in affecting domestic resource allocation and cross-border capital flows. I develop a quantitative, two-country, macroeconomic model in which banks face endogenous and occasionally binding leverage constraints. Banks lend funds to be invested in tradable or non-tradable sector capital and there is international financial integration in the market for bank liabilities. I focus on news about economic fundamentals as the key source of fluctuations. Specifically, in the case of positive news on the valuation of non-traded sector capital that turn out to be incorrect at a later date, the model generates an asymmetric, belief-driven boom-bust cycle that reproduces key features of the recent Eurozone crisis. Bank balance sheets amplify and propagate fluctuations through three channels when leverage constraints bind: First, amplified wealth effects induce jumps in import-demand (demand channel). Second, changes in the value of non-tradable sector assets alter bank lending to tradable sector firms (intra-national spillover channel). Third, domestic and foreign households re-adjust their savings in domestic banks, and capital flows further amplify fluctuations (international spillover channel). A common central bank’s unconventional policies of private asset purchases and liquidity facilities in response to unfulfilled expectations are successful at ameliorating the economic downturn. In the second essay, co-authored with Professor Ghironi, we study the implications of using the volatility of domestic interest rate as a policy instrument in a small open economy. We develop an international macroeconomic model of the interaction between an emerging market economy (EME) and global investors. EME central banker uses time-varying domestic interest rate volatility as a policy tool, and global investors have the opportunity to sell productive capital to the EME producers (FDI), in addition to having the opportunity to invest in one-period international and EME securities. We assess the effectiveness of using domestic interest rate volatility as a policy tool in distinguishing short-term security flows from long-term FDI flows, and identify the trade-offs that are faced in navigating financial strength and price stability. We find that an increase in interest rate volatility can attract FDI inflows while discouraging short-term security inflows, if the economy is subject to low- degree of pricing frictions. However, if prices are highly sticky, there is a co-movement of long-run FDI and short-run security outflows. Moreover, an increase in policy uncertainty induces higher price volatility.

Download or read book International Economics Two written by Giancarlo Gandolfo and published by Springer Science & Business Media. This book was released on 1995-05-22 with total page 588 pages. Available in PDF, EPUB and Kindle. Book excerpt: This second volume covers all the conventional topics of international monetary theory and open-economy macroeconomics, and a lot more besides. Gandolfo treats such further concepts as the theory of monetary integration and the European monetary union, foreign exchange crises and the Tobin tax, theory of games and international policy coordination. It follows the "two-tier" structure of the first volume, and, thanks to its self-contained treatment, may equally be used as a reference book.