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Persistent link: https://www.econbiz.de/10012204260
Two types of currency in circulation models are identified: (1) a first generation derived from the theory of money demand and (2) a second generation aimed at producing daily forecasts of currency in circulation. In this paper, we transform the currency demand function into a VAR to capture the...
Persistent link: https://www.econbiz.de/10011803990
Given the rapidly declining demand for central bank reserves and their gradual replacement in wholesale payments by alternative forms of money—clearinghouse moneyand treasury money—this paper discusses whether the complete extinction of base money could undermine monetary control. It argues...
Persistent link: https://www.econbiz.de/10014400970
Persistent link: https://www.econbiz.de/10011853832
Persistent link: https://www.econbiz.de/10009486293
exposed to a significant degree of dollarization, Peru and Uruguay. It is shown that the traditional interest rate channel is … effective in Chile and New Zealand. For Peru and Uruguay, the exchange rate channel is instead more relevant in the transmission … pass through. Finally, it is shown that the on-going de-dollarization process of Peru and Uruguay has somewhat strengthened …
Persistent link: https://www.econbiz.de/10014412189
This paper highlights that central banks from Brazil, Chile, Colombia, Mexico, and Peru (the LA5 countries) reaped the …
Persistent link: https://www.econbiz.de/10014402930
Real oil prices surged from 2009 through 2014, comparable to the 1970's oil shock period. Standard explanations based on monopoly markup fall short since inflation remained low after 2009. This paper contributes strong evidence of Granger (1969) predictability of nominal factors to oil prices,...
Persistent link: https://www.econbiz.de/10012154675
This study shows that the aggregate demand for M1 in the group of countries participating in the Exchange Rate Mechanism (ERM) of the European Monetary System can be expressed as a stable function of ERM-wide income, inflation, interest rates, and the exchange rate of the European Currency Unit...
Persistent link: https://www.econbiz.de/10014396161
This paper looks at whether the aggregate ERM money supply has been a useful predictor of short-term changes in inflation and growth, and long-term trends in price levels among the core ERM countries. The evidence suggests that over the period since 1987, when there have been no realignments,...
Persistent link: https://www.econbiz.de/10014396218