849,303 research outputs found

    Instability and Trade in Currency Areas

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    In a currency area, when a country faces a positive shock inflation goes up, real interest rate decreases and competitiveness deteriorates. We show that the stability of equilibrium depends on the rationality of expectations and budget balance of the public sector.Publicad

    New results on the impact of central-bank intervention on deviations from uncovered interest parity

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    Germany, Japan, and the United States continue to view foreign exchange intervention as an effective instrument, although the mechanism through which it operates is unclear. In this paper, we use official data on daily dollar intervention to examine its impact on exchange-rate risk premia through both the portfolio-balance and expectations channels. We define the risk premium in terms of deviation from uncovered interest parity and model its behavior using generalized autoregressive conditional heteroscedasticity. Our evidence of portfolio-balance and expectations effects is inconsistent across subperiods of different exchange-rate-policy regimes. Also, unlike Dominguez (1990) and Loopesko (1984), we find no evidence that coordination of intervention improves its efficacy.Foreign exchange - Law and legislation

    Statistical and Dynamic Models of Charge Balance Functions

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    Charge balance functions, which identify balancing particle-antiparticle pairs on a statistical basis, have been shown to be sensitive to whether hadronization is delayed by several fm/c in relativistic heavy ion collisions. Results from two classes of models are presented here, microscopic hadronic models and thermal models. The microscopic models give results which are contrary to recently published pi+pi- balance functions from the STAR collaboration, whereas the thermal model roughly reproduce the experimental results. This suggests that charge conservation is local at breakup, which is in line with expectations for a delayed hadronization. Predictions are also presented for balance functions binned as a function of Q_inv.Comment: 12 pages 6 figure

    A business case for work-life balance in retail management.

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    Retail is one of New Zealand’s largest sectors, employing close to 200,000 people full-time, but with changes in competition and growth in the industry, the expectations of retail managers are increasing, along with their workload. This research looks at why work-life balance is unattainable for some retail managers. Looking wholly at the retail industry, not one specific organisation, the research aims to show the impacts on performance when work-life balance is not achieved and to provide strategies for businesses that encourage work-life balance in retail managers. Using both secondary and experiential research, this study highlights how poor work-life balance is directly linked to poor performance and what it is costing businesses that have no work-life balance initiatives in place. Provisional results show that work arrangements and lack of training are key reasons for work-life balance being difficult to maintain in retail management roles. The researcher shares two recommendations that will improve retail managers’ work-life balance; re-evaluating work arrangements to use rotational rostering and companies investing in the development of managers, through specific training available in New Zealand

    Instability and trade in currency areas

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    We present a model of a currency area in which labor markets of country members are isolated but there is trade among these countries. When a country experiences a negative (resp. positive) shock, inflation goes down (up). This causes two effects. On the one hand the real interest rate of this country increases (decreases). On the other hand the goods produced in this country become more (less) competitive. We show that the stability of the system depends on several factors, including a large competitive effect, how inflation expectations are formed and fiscal policy. In general, stability requires a trade-off between the rationality of expectations and budget balance

    A sunspot-based theory of unconventional monetary policy

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    This paper is about the effectiveness of qualitative easing, a form of unconventional monetary policy that changes the risk composition of the central bank balance sheet. We construct a general equilibrium model where agents have rational expectations, and there is a complete set of financial securities, but where some agents are unable to participate in financial markets. We show that a change in the risk composition of the central bank’s balance sheet affects equilibrium asset prices and economic activity. We prove that, in our model, a policy in which the central bank stabilizes non-fundamental fluctuations in the stock market is self-financing and leads to a Pareto efficient outcome

    The FOMC's balance-of-risks statement and market expectations of policy actions

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    In January 2000, the Federal Open Market Committee (FOMC) instituted the practice of issuing a “balance of risks” statement along with their policy decision immediately following each FOMC meeting. Robert H. Rasche and Daniel L. Thornton evaluate the use of the balance-of-risks statement and the market’s interpretation of it. They find that the balance-of-risks statement is one of the factors that market participants use to determine the likelihood that the FOMC will adjust its target for the federal funds rate at their next meeting. Moreover, they find that, on some occasions, the FOMC behaved in such a way as to encourage the use of the balance-of-risks statement for this purpose. The clarifying statements that sometimes accompany these balance-of-risks statements, as well as general remarks made by the Chairman and other FOMC members, often provide additional useful information.Federal Open Market Committee ; Federal funds rate ; Monetary policy

    INSTABILITY AND TRADE IN CURRENCY AREAS

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    We present a model of a currency area in which labor markets of country members are isolated but there is trade among these countries. When a country experiences a negative (resp. positive) shock, inflation goes down (up). This causes two effects. On the one hand the real interest rate of this country increases (decreases). On the other hand the goods produced in this country become more (less) competitive. We show that the stability of the system depends on several factors, including a large competitive effect, how inflation expectations are formed and fiscal policy. In general, stability requires a trade-off between the rationality of expectations and budget balance.

    Exploring Political Disappointment

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    Disappointment is often identified as a pathology of modern politics; citizens expect much of politicians, yet governments are ill-equipped to deliver outcomes commensurate with those expectations. The net result is said to be a widespread disappointment; a negative balance between what citizens expect of government and what they perceive governments to deliver. Yet little attention has hitherto been paid to which kinds of citizens are particularly disappointed with politics, and why. This article offers one of the first empirical analyses of political disappointment. Drawing on a survey conducted in Britain, it provides a quantitative measure of political disappointment and explores its prevalence among citizens. It then considers which social groups might be more prone to disappointment than others. In particular, it explores whether certain groups are more disappointed by virtue of holding very high expectations of government or very low perceptions of government performance. The article concludes by considering what strategies might be open to policy makers to alleviate political disappointment

    Intervention as information: a survey

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    Research has generally failed to find reliable connections between official exchange-market interventions and exchange rates that are consistent with either a monetary or a portfolio-balance theory of exchange-rate determination. Recently economists have suggested that intervention might sometimes influence exchange rates through its effects on agents’ expectations. This survey discusses newer research that analyzes informational aspects of intervention.Foreign exchange - Law and legislation
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