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The determination of inflation is widely debated all over the world. The macroeconomic variables namely: money supply …, income velocity of circulation, real effective exchange rate and real income of the economy are the main affect of inflation …. The objective of the study was to investigate the impact of real effective exchange rate on inflation in Pakistan. The …
Persistent link: https://www.econbiz.de/10009709595
The paper studies exchange rate implications of trend inflation within a two-country New Keynesian (NK) model under … incomplete international financial markets. A NK Phillips curve generalized by trend inflation with a positive long-run mean … implies an expectational difference equation of inflation with higher-order leads of expected inflation. The resulting two …
Persistent link: https://www.econbiz.de/10012977289
Using matched bank-firm-level data and the 2014 depreciation of the euro, we show that exchange rate depreciations can lead to higher loan supply. Large banks with high net dollar exposure do not increase their lending to non-financial firms, but—through interbank markets—to small banks...
Persistent link: https://www.econbiz.de/10014236048
This study sought to identify the traditional and institutional inflation variables responsible for inflation … year. The study therefore concluded that inflation in Nigeria, during the studied period, was driven by the pass-through of … import prices to domestic prices via markup pricing by firms. This was aided by domestic inflation persistence. It is …
Persistent link: https://www.econbiz.de/10011661500
The purpose of this paper is to present the role of the exchange rate stability in a small and open economy, where the case of the Republic of Macedonia is investigated. Also, an accent is given to the role of the expectations of the economic agents for the future movements of the exchange rate,...
Persistent link: https://www.econbiz.de/10014050275
examines the international transmission mechanisms between Albania and the Euro area, linking its inflation and interest rates … long-term interest rate seem to have a long-run impact on Albanian inflation. Even Albanian short-term interest rates have … a negative long-run impact on the ppp term and on Albanian inflation. Bank of Albania should consider short …
Persistent link: https://www.econbiz.de/10013085229
This paper proposes an equilibrium theory of nominal exchange rates, which offers a new perspective on various issues in open economy macroeconomics. The nominal exchange rate and portfolio choices are jointly determined in equilibrium, thus providing a new approach to overcoming the...
Persistent link: https://www.econbiz.de/10013212261
We study the course of the Swiss price level during the recent episode where Switzerland enforced a floor on the Swiss Franc exchange rate relative to the Euro. Given the strong nominal upward pressure on the Swiss currency the introduced limit of 1.20 Francs per Euro led to a quasi-fixed...
Persistent link: https://www.econbiz.de/10013006633
, output and inflation expectations in an economy. Therefore, the ability to predict its movement over time with relative …
Persistent link: https://www.econbiz.de/10014215458
The Taylor rule has become the dominant model for academic evaluation of out-of-sample exchange rate predictability. Two versions of the Taylor rule model are the Taylor rule fundamentals model, where the variables that enter the Taylor rule are used to forecast exchange rate changes, and the...
Persistent link: https://www.econbiz.de/10012904307