PPT-China’s Monetary & Exchange Rate Policies

20042014 MPAID extra lecture October 20 2014 Jeffrey Frankel Example of sterilization of money inflows China 20032012 API120 Prof JFrankel Harvard 3 API120 Prof JFrankel Harvard. 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. Thoughts on sources of technological change. Real business cycles: A sketch. Open economy macroeconomics. International financial system. Short-run open-economy output determination (Mundell -Fleming model). 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. Oldřich Dědek. Institute of Economic Studies, Charles University. 2. Major themes in cost-benefit debate. Absorption of asymmetric shocks. Restoration of external price competitiveness. Autonomous monetary policy in face of growing capital mobility. OF EXCHANGE RATES. LECTURE 23 --. . . Building blocs. - Interest rate parity. - Money demand equation. - Goods markets. . Flexible-price . version: . monetarist/Lucas model. - . derivation. - applications: hyperinflation; speculative . Harpel Professor of Capital Formation & Growth,. Harvard University. American Enterprise Institute, March 18, 2013. Is “currency wars” just a catchy phrase?. It is another way of saying “competitive devaluation,”. Sections. Exchange rate arrangements. Balance of payments. Exchange rate regime, before 1976. Desired exchange rate stability.. Currencies were largely anchored, either directly or indirectly, on gold.. Harpel Professor of Capital Formation & Growth,. Harvard University. American Enterprise Institute, March 18, 2013. Is “currency wars” just a catchy phrase?. It is another way of saying “competitive devaluation,”. Fixed vs. Floating. The exchange rate fluctuates in a narrow range (or not at all) against a base currency over a sustained period of time. . Government action is needed to maintain the exchange rate.. in International . Finance. Preview. Goals of macroeconomic policies. Gold standard. Interwar years. Bretton Woods system. Collapse of the Bretton Woods system. Macroeconomic Goals. Macroeconomic. . 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. the Mundell-Fleming model. Case 1. Flexible exchange rate regime. Monetary policy effectiveness. (Changes in money supply). An increase in money supply (M/P=l. 1. Y-l. 2. i eq.1.6) reduces the local interest rate and increases investments and output (eq. 1.1 and 1.3). 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 (. Panel . on Monetary Policy,. Conference . on Monetary Policy. and Financial Stability in . Emerging . Markets,. NBER & Central Bank of the Republic . of . Turkey,. Istanbul, Turkey, June 13-14, 2014. 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...