PPT-Lesson 7 Fiscal and monetary policy under alternative exchange rate regimes and perfect

the MundellFleming model Case 1 Flexible exchange rate regime Monetary policy effectiveness Changes in money supply An increase in money supply MPl 1 Yl 2 i eq16 reduces the local interest rate and increases investments and output eq 11 and 13 Since the model represents an open economy the local interest rate is now lower than the global interest rate The UIP is no longer verified . Steven Barnett. (May 2010). Summary and Outline. Inflation poses a major risk. Too high and rising. Broad-based . Not just meat prices. Also excess demand. Monetary tightening must continue. Control inflation expectations. 4/2/2012. Unit 3: Exchange Rates. Exchange Rate Regimes. fixed exchange rate . –. a currency's value is matched to the value of another single currency or to a commodity (e.g., gold). floating exchange rate . Monetary Policy. Fiscal and Monetary Policy. The Nature of Fiscal Policy. THE NATURE OF FISCAL POLICY. The purpose of fiscal policy. correcting a fundamental disequilibrium. fine tuning. Government finances. Monetary System. Relationship between monetary system and foreign exchange rates. Historical development. Fixed vs floating exchange rates. Role of the IMF and World Bank. Implications for managers. International Monetary System. International . Political Economy. Prof. Tyson Roberts. Balance of Payments (. BoP. ). Current account. Current account balance =. Current receipts – Current Expenditures. Current includes . Goods & services. . Some Unanswered Questions. Rashad . Cassim. Economic Research and Statistics . Stellenbosch University. 27/02/2017. Objectives of Presentation. T. o share with you some of the analytical and empirical difficulties we experience in making sense of the current . Saudi Arabian Monetary Agency (SAMA). Central bank of Saudi Arabia. Was established in 1952. Functions. To deal with the banking affairs of the government. Minting and printing the national currency, strengthening the Saudi currency and stabilizing its external and internal value, in addition to strengthening the currency’s cover. : . lessons. . from. a comparative . analysis. of . monetary. . regimes. Jacques . Mazier. (CEPN-CNRS, . University. Paris 13 Sorbonne Paris Cité). Central Institute for . Economic. Management. The Influence of Monetary and Fiscal Policy on Aggregate Demand. Monetary policy refers to the control of a country’s quantity of money by its central bank. We saw the . long-run effects. of monetary policy in Chapter 12 (Money Growth and Inflation). Paul De Grauwe. The . fragility of incomplete monetary unions. Introduction. Summing up from previous lectures:. Complete monetary union. : a monetary union together with budgetary union.. Incomplete monetary union. Fiscal Policy. Simply put…the Government’s use of taxing and spending to . stimulateor. contract the economy. Background Terms. Deficit… results from an unbalanced budget (12 months). Debt…continues to build…what you owe. . Introduction. - Monetary policy is concerned with the changes in the supply of money and credit. It refers to the policy measures undertaken by the government or the central bank to influence the availability, cost and use of money and credit with the help of monetary techniques to achieve specific objectives. It aims to influence two major variables:. Macro prudential . Policies: The Role of New Monetary Policy Rules. Dr. Nicholas . Apergis. University of Piraeus. Event: . ADFIMI International Development Forum Meeting. Doha 25/04/2016. Roadmap. ► The new banking environment: idiosyncratic... Web: Larseosvensson.se. A natural experiment. of premature monetary policy normalization. and of the neo-Fisherian view . Revised slides from a presentation at . the ECB Conference on Monetary Policy: Bridging Science and Practice, .