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The paper evaluates the present and future international currency status of the US dollar, the euro and the yen. In section two the functions, benefits, and costs of a leading international currency are discussed. In section three key determinants for the continuous dominance of the US dollar...
Persistent link: https://www.econbiz.de/10013136590
After more than two decades of inflation targeting in the world, it is important to evaluate if the adoption of this regime in a relevant developing country contributed to the creation of a better environment for the process of entrepreneurs' expectations formation. Brazil is part of an...
Persistent link: https://www.econbiz.de/10011271311
The interest rate and investment are among the central variables influencing the growth rate. Due to the complexity … empirically demonstrated of the interest rate – investment – GDP growth relationship, last decades a growing concern over the … build a set of partial models in order to investigate the interest rate - investment - growth rate relationship in case of …
Persistent link: https://www.econbiz.de/10009220663
The demand for cash balances of financial intermediaries that establish contractual liabilities with credit-sensitive customers is characterized. As stated by Merton, the success of the business activities of such firms crucially depends on their credit quality, and hence, they are obliged to...
Persistent link: https://www.econbiz.de/10013160192
This paper provides new evidence on the response of business investment to tax incentives. I use the variation provided … depreciation allowances applicable to investment undertaken outside the three main Mexican metropolitan areas. I show that … investment is very sensitive to changes in tax variables and interest rates, with an estimated elasticity of investment with …
Persistent link: https://www.econbiz.de/10005786956
Till recently the investment policy of India was overtly nationalistic. Today however everything seems to be changing …
Persistent link: https://www.econbiz.de/10005836487
In recent years, there has been a renewed interest in the fact that a change in exchange rates has an impact on main economic indicators and therefore on macroeconomic performance. The aim of this paper is to study the implications of the relationship between exchange rates and changes in...
Persistent link: https://www.econbiz.de/10011260687
affect operational and investment functions of Takāful operators across the globe. It lays down criteria for Takāful operator …
Persistent link: https://www.econbiz.de/10011261182
The speculative bubbles of asset prices, and especially their burst out, have a negative impact on the financial stability and also on the prices stability – the main objectives of central banks. As a consequence, a more attentive observation of the evolution of these prices is necessary. In...
Persistent link: https://www.econbiz.de/10005078651
This paper presents a model of the banking sector that maximize profit and an individual bank which is a price taker, in a developing country. The interest rate on treasury bills is included in the model to measure monetary policy. The mathematical expression of the probability of banking...
Persistent link: https://www.econbiz.de/10005260080