Showing 1 - 10 of 2,006
Some small open Least Income Countries embarked on rapid accumulation of foreign reserves in the wake of volatile capital inflows. Foreign reserve accumulation is one way of managing volatile capital flows. However, rapid and persistent accumulation is not only costly, but potentially distort...
Persistent link: https://www.econbiz.de/10012131527
The objective of this research was to identify the determinants of international reserves in Mexico. Using a Vector Error Correction Model, it was found that foreign portfolio investment has a significant positive effect on the demand for reserves both in the short run as in the long run. A...
Persistent link: https://www.econbiz.de/10013002565
Persistent link: https://www.econbiz.de/10013479487
Persistent link: https://www.econbiz.de/10011878943
Scant attention has been paid in the literature concerning 'consumption wealth effects' to asset heterogeneity in terms of foreign and domestic asset holdings. Through extending the approach of Lettau and Ludvigson (2004).and Nitschka (2007), this study uncovers that whilst households tend to...
Persistent link: https://www.econbiz.de/10008759287
Persistent link: https://www.econbiz.de/10015100813
This paper considers the well established empirical fact that conditional correlations among cross-country interest rates switch signs. Switching implies an alternation of coupling and decoupling of global bond markets over time. This evidence is robust to alternative estimation schemes. Here we...
Persistent link: https://www.econbiz.de/10013133793
This paper considers the well established empirical fact that conditional correlations among cross-country interest rates switch signs. Switching implies an alternation of coupling and decoupling of global bond markets over time. This evidence is robust to alternative estimation schemes. Here we...
Persistent link: https://www.econbiz.de/10014191413
This paper theoretically and empirically reevaluates price policy associated with deflation using the Balassa-Samuelson theory (Balassa (1964), Samuelson (1964)). The theoretical model developed in this paper shows the relative price level (or real exchange rate) between two countries is...
Persistent link: https://www.econbiz.de/10012843594
African countries have accumulated substantial foreign currency reserves in recent years, mostly from higher commodity exports as well as aid flows. In the context of macroeconomic stabilization, which remains at the forefront of national economic policymaking and aid conditionality, African...
Persistent link: https://www.econbiz.de/10003733946