MULTINATIONAL FINANCE. Barry Topf April 2014
|
|
- Gary Moris Freeman
- 5 years ago
- Views:
Transcription
1 MULTINATIONAL FINANCE Barry Topf April
2 INTRODUCTION Course Goals Methodology Organization Background Course Outline 2
3 COURSE GOALS Acquire analytical tools Obtain necessary knowledge and perspective Familiarity with basic concepts and their uses - and their limitations Basic quantitative and computational skills 3
4 Multinational Finance Multinational financial management is financial management conducted in more than one cultural, social, economic, or political environment However, in today s world important to everyone regardless of nature of operations Especially clear in Israel 4
5 Methodology 3 six hour sessions trial by ordeal + 3 six hour sessions With Kobi Textbook Multinational Finance, Kirt C. Butler, 5 th edition Additional Readings Some audiovisual enrichment Open format, questions, comments and discussions- and feedback- welcomed. Relevance from an Israeli viewpoint 5
6 Organization Schedule: Today; May 8 th, May 15 th Quizes: May 8 th and May 15 th at 7:30 pm; Final Quiz May 22 Grades: Simple average of best two out of three quiz grades Bonus possibility for participation 6
7 Organization Session Schedule (tentative): 4:00-5:20 5:20-5:40 Break 5:40-7:00 7:00-7:30 Break 7:30-8:40 8:40-8:50 Break 8:50-9:45 7
8 My Background מנהל חדר עסקות בבנק ישראל מנהל מחלקת מט"ח בב"י מנהל חטיבת השווקים בב"י חבר בועדה המוניטארית בבנק ישראל היום: חבר ועדת השקעות של משקיעה מוסדי יועץ לקרן המטבע הבינלאומי IMF( ) 8
9 Course Outline The International Financial Environment The Multinational Enterprise The International Capital Market and Investment Management Along the way: Efficient Markets Agency theory Behavioral Finance Regulation and macro risk Monetary Policy and Operations The Crisis 9
10 The International Financial Environment Chapters 1-4 Integration of the world s markets for goods, services, and financial instruments Balance-of-payments statistics Exchange rate systems Fixed versus floating, and everything in between Recent history of international exchange rates Recent currency crises The evolving role of the IMF Regulatory environment 10
11 Integration of global markets for goods and services Global trend toward free-market economies; particularly the industrialization of the Pacific Rim 1991 breakup of the Soviet Union; the reunification of Germany; and the migration of central and eastern European countries toward the European Union 1995 creation of the World Trade Organization (WTO) China s emergence in international markets, Hong Kong s 1997 return to China, and China s 2001 entry into the WTO 1999 creation of the euro and its adoption by an expanding set of European countries 11
12 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates U.S. Merchandise Trade ($ billions) Imports Exports Trade deficit
13 The Impossible Trinity MONETARY INDEPENDENCE FIXED EXCHANGE RATE OPEN CAPITAL ACCOUNT 13
14 Capital Flows Open Trade Account no restrictions on imports and exports Open Current Account no restrictions on services Open Capital Account - no restrictions on financial flows Convertible Currency Reserve Currency 14
15 Capital Flows Foreign Exchange Controls Outward/Inward FDI /Portfolio Residents/nonresidents Taxes Reserve Requirements Minimum Holding Periods Repatriation Limitations Administrative Measures 15
16 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates Integration of financial markets An increase in cross-border financing Increasingly interdependent national financial markets, including cooperative linkages among securities exchanges An increasing number of cross-border mergers, acquisitions, and joint ventures Increased international regulation
17 The Bretton Woods Agreement World Bank - which now includes International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment Guarantee Agency Int l Centre for Settlement of Investment Disputes International Monetary Fund (IMF) Responsible for ensuring the stability of the international financial system Compiles balance-of-payments statistics GATT/WTO
18 Integration of World Markets GATT/WTO Multilateral Mercosur Caricom Asean Efta Nafta Bilateral US-Israel Australia-New Zealand 18
19 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates The U.S. Balance of Payments Goods: Exports Goods: Imports Trade Balance Services: Credit Services: Debit Balance on Goods & Services Income: Credit Income: Debit Balance on Goods, Servs, & Income Current transfers: Net Current Account Source: IMF (
20 The U.S. balance of payments Capital account: Net Direct Investment Abroad Direct Invest from Abroad Portfolio Investment Assets Portfolio Invest Liabilities Other Investment Assets Other Investment Liabilities Financial Account Net Errors and Omissions 20
21 BOP: International Comparisons GDP in GDP per Trade surplus per billions capita GDP capita Germany $3,085 $37, % $2,506 Australia $918 $40, % $1,320 Korea $1,554 $31, % $685 China $11,300 $8, % $173 Brazil $2,284 $11, % $158 Japan $4,389 $34, % $48 India $4,463 $3, % -$127 Canada $1,389 $40, % -$261 U.K. $2,250 $35, % -$2,545 U.S. $15,040 $48, % -$2,568 Greece $306 $27, % -$3,536 21
22 % 6 ISRAEL CURRENT ACCOUNT BALANCE % OF GDP ) מקור: הלשכה המרכזית לסטטיסטיקה ועיבודי בנק ישראל
23 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Exchange rate systems Recent history of international exchange rates Pegged or fixed exchange rate systems Forges a direct link between inflation differentials and employment levels Can result in large adjustments Floating exchange rate systems Allows exchange rates to adjust for inflation differences Allows employment levels and wages to equalize through the exchange rate mechanism
24 AFRICA ASIA MIDDLE EAST AMERICAS Djibouti Hard peg Hong Kong - Ecuador Soft Peg Burundi, WAEMU Nepal Saudi Arabia Argentina Floating Nigeria, S. Africa India, Australia, Malaysia Israel, Turkey Chile EUROPE Bulgaria Russia,Denmark Sweden, UK, Eurozone Hard pegs: Exchange arrangements with no separate legal tender, and currency board arrangements Soft pegs: Conventional peg arrangements, stabilized arrangements, crawling pegs, crawl-like arrangements, and pegs within horizontal bands Floating arrangements: 'Floating' (largely market determined and without exchange rate targets) 'Free floating' (market determined with very infrequent intervention) 24
25 Major events in the history of FX rates Bretton Woods Conference 1946 IMF and World Bank created Exchange rate turmoil begins the modern era of floating 1971 exchange rates Jamaica Agreement (1976) European Exchange Rate Mechanism (1979) Treaty of Maastricht1991 Introduction of the euro (1999) Euro begins public circulation (2002) Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates
26 Major events in the history of FX rates Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates 1946 Bretton Woods Conference Dollar is convertible into gold at $35/ounce Other currencies are pegged to the dollar The IMF and the World Bank also were created
27 Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates Major events in the history of FX rates 1971 Exchange rate turmoil U.S. dollar falls off the gold standard Most currencies float on world markets 1976 Jamaica Agreement Floating rates are declared acceptable 1979 European Monetary System (EMS) European Exchange Rate Mechanism (ERM) established to maintain EEC currencies within a 2.25% band around central rates European currency unit (ECU) created
28 Major events in the history of FX rates 1991 Treaty of Maastricht EC members agree to a broad agenda of economic, financial and monetary reforms A single European currency is proposed as the ultimate goal of monetary union 1999 Introduction of the euro Emu-zone currencies pegged to the euro European bonds convert to the euro 2002 Euro begins public circulation The euro is now a major international currency Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates
29 Israel s ER Regimes 1985 Peg to dollar 1986 Peg to basket Horizontal Bands Adjustments of central rate Adjustments of width 1991-present Crawling Bands Adjustments of central rate Adjustments of width Adjustments of slope Asymmetric slopes internal Bands 29
30 Chronology of the Transition After a few years the Band became irrelevant Formally eliminated in 2005 Ten years of non-intervention During crisis of 2008, resumed intervention 2010 Discretionary policy introduced 30
31 Israel s Transition The FX Regime and the FX Market Exchange-Rate Regime : Fixed Exchange Rates : Horizontal Exchange-Rate Band : Crawling Exchange-Rate Band 2005: Band eliminated 2008: Resume Intervention Trading System : Fixing : Multilateral Trade : Continuous Bilateral Trade 31
32 Ingredients of Transition 4-The Foreign Exchange Market: Interbank Trading Environment: Regime, Supervision, Authorities Surplus Units Bank Deficit Units Bank Broker Bank Surplus Units Bank Infrastructure: Communications, Computer 32 Systems, Clearing Systems
33 Israel s Transition The FX Regime NIS shekels (July 85 - May 89) Peg to USD 10% Peg to Basket basket 8% 3% 5% 3% USdollar III IV I II III IV I II III IV I II III IV I II
34 Israel s Transition The FX Regime NIS shekels /Basket 2.90 (Jan 89-Mar 92) % 3% 6% Multilateral Trade 3% 3% 6% adjustm ent 5% 5% 10% 5% 5% I II III IV I II III IV I II III IV I II % 6% Hurt the specs 5% artificial
35 Israel s Transition The FX Regime (Oct91 - May01) Bilateral Trade Broker 6% slope 6% slope 14% % slope % slope 9% slope 5% 5% 5% 5% 6% slope 5% 5% Internal band 7% 14% 7% 4% slope 6% slope Differential slopes 07/08/98 2% slope End of Intervention / /92 09/92 03/93 09/93 03/94 09/94 03/95 09/95 03/96 09/96 03/97 08/97 02/98 08/98 02/99 08/99 02/00 08/00 02/01 08/01
36 Israel s Transition The FX Regime % slope % slope % % slope % slope 9% slope 5% 5% 5% 5% 6% slope 5% 5% 7% 7% 6% slope 07/08/98 14% 4% slope 2% slope /91 03/92 09/92 03/93 09/93 03/94 09/94 03/95 09/95 03/96 09/96 03/97 08/97 02/98 08/98 02/99 08/99 02/00 08/00 02/01 08/01
37 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates Recent currency crises Causes and consequences Countries in crisis Currency crises and the IMF Recent currency crises Mexican peso crisis of 1995 Asian contagion of 1997 Korea, Indonesia, and Thailand Russian ruble crisis in 1998 Brazilian real crisis in 1998 Argentinian peso crisis of 2002
38 Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates Currency crises Contributing factors in each crisis A fixed or pegged exchange rate system that overvalued the local currency A large amount of foreign currency debt Consequences of currency crises Currency crises have a pronounced negative short-term impact on the local economy A market-based exchange rate can have an invigorating long-term impact on the local economy and on the local stock market
39 Integration of the world s markets Balance-of-payments statistics Exchange rate systems Recent history of international exchange rates Indonesia s 1997 currency crisis Stock market (Dec 1995 = 1.00; in rupiah) Indonesian rupiah ($/rupiah)
40 International Regulatory Regime Bank Supervision :Basel I, II, III ECB Supervision Anti-Money Laundering (AML), anti-terrorist, sanctions IOSCO Insurance 40
MSU CIBER - International Business Institute
Finance Finance and The and Financial the Financial Manager Manager MSU/CIBER International Business Institute for Community College Faculty - International Finance by Kirt C. Butler MSU Department of
More informationProgress towards Strong, Sustainable and Balanced Growth. Figure 1: Recovery from Financial Crisis (100 = First Quarter of Real GDP Contraction)
Progress towards Strong, Sustainable and Balanced Growth Figure 1: Recovery from Financial Crisis (100 = First Quarter of Real GDP Contraction) Source: OECD May 2014 Forecast, Haver Analytics, Rogoff and
More informationExchange Rate and International Finance
Exchange Rate and International Finance Min Shu Waseda University 2018/5/29 International Political Economy 1 Outline of the lecture International balance of payment Fixed and floating exchange rate The
More informationProgress Towards Strong, Sustainable, and Balanced Growth. Figure 1: Recovery From Financial Crisis (100 = First Quarter of Real GDP contraction)
Progress Towards Strong, Sustainable, and Balanced Growth Figure 1: Recovery From Financial Crisis ( = First Quarter of Real GDP contraction) 13 125 196-26 AE Recessions' Range*** 196-26 AE Recessions**
More informationCh. 2 International Monetary System. Motives for Int l Financial Markets. Motives for Int l Financial Markets
Ch. 2 International Monetary System Topics Motives for International Financial Markets History of FX Market Exchange Rate Systems Euro Eurocurrency Market Motives for Int l Financial Markets The markets
More informationWelcome to: International Finance
Welcome to: International Finance Introduction & International Monetary System Reading: Chapter 1 (p1-3) & Chapter 2 Why is International Finance Important? ٣ Why is International Finance Important? In
More informationGovernments and Exchange Rates
Governments and Exchange Rates Exchange Rate Behavior Existing spot exchange rate covered interest arbitrage locational arbitrage triangular arbitrage Existing spot exchange rates at other locations Existing
More informationThe European Union Trade Policy
The European Union Trade Policy Content 1. The EU in world trade 2. EU trade policy Basic features 3. EU trade policy How it works 4. EU trade policy Competing in the world 5. A renewed strategy for Europe
More informationMacro for SCS Nov. 29, International Trade & Finance
Macro for SCS Nov. 29, 2017 International Trade & Finance The Gains from Trade Do you believe in magic The Gains from Trade Leave the England-Portugal rivalry for the soccer field Criticism of the free
More informationGlobal Construction 2030 Expo EDIFICA 2017 Santiago Chile. 4-6 October 2017
Global Construction 2030 Expo EDIFICA 2017 Santiago Chile 4-6 October 2017 Graham Robinson Global Construction Perspectives Global Construction 2030 is the fourth in a series of global studies of the construction
More informationto T5? dollar. T4 T1 to T2 but T4 to T5. rate needed to market model) 1 Problem
Problem Set 4 Determining thee exchange rate (currency market model) 1. Nominal exchange rate. Consider the following tables (T1 to T5) taken from the web site http://www.x rates.com/ /. In tabless T1,
More informationFigure: EUR-USD Exchange Rate
Figure: EUR-USD Exchange Rate SuSe 2013 1 Monetary Policy and EMU: Open Economy Setting Figure: EUR-USD Exchange Rate SuSe 2013 2 Monetary Policy and EMU: Open Economy Setting Figure: Indirect Quotation
More informationThe Possible Use of Asian Monetary Unit - Differences between euro and AMU-
The Possible Use of Asian Monetary Unit - Differences between euro and AMU- Japan-China-Korea (A3) Conference: Monetary and Financial Cooperation in the Region 24 May 2012, RIETI, Tokyo Objectives The
More informationOlivier Blanchard Economic Counsellor and Director of the Research Department, International Monetary Fund
Centre for Economic Performance 21st Birthday Lecture Series The State of the World Economy Olivier Blanchard Economic Counsellor and Director of the Research Department, International Monetary Fund Lord
More informationNew in 2013: Greater emphasis on capital flows Refinements to EBA methodology Individual country assessments
As in 212: Stock-take: multilaterally consistent assessment of external sector policies of the largest economies Feeds into Article IVs Draws on External Balance Assessment (EBA) methodology/other Identifies
More informationAsia-Pacific Trade Briefs: Hong Kong, China
i Asia-Pacific Trade Briefs: Hong Kong, China Merchandise Trade Hong Kong, China has a trade-to-gdp ratio of 386.95%. Merchandise trade accounted for 86.3% of Hong Kong, China's total trade in 2017. Hong
More information4. INTERNATIONAL MONETARY SYSTEMS AND BALANCE OF PAYMENTS
4. INTERNATIONAL MONETARY SYSTEMS AND BALANCE OF PAYMENTS CHAPTER OVERVIEW INTERNATIONAL MONETARY SYSTEM HISTORY PERFORMANCE OF INTERNATIONAL MONETARY SYSTEMS EUROPEAN MONETARY SYSTEMS INTERNATIONAL DEBT
More informationThe Global Economic Crisis: Asia and the role of China Elliott School of International Affairs, George Washington University March 31, 2009
The Global Economic Crisis: Asia and the role of China Elliott School of International Affairs, George Washington University March 31, 29 Anoop Singh Asia and Pacific Department IMF 1 Five key questions
More informationFundamentals of Multinational Finance, 5e (Moffett et al.) Chapter 2 The International Monetary System. Multiple Choice and True/False Questions
Fundamentals of Multinational Finance 5th Edition Moffett Test Bank Full Download: http://testbanklive.com/download/fundamentals-of-multinational-finance-5th-edition-moffett-test-bank/ Fundamentals of
More informationNote: G20 includes only the 19 member countries (excludes European Union).
Note: G20 includes only the 19 member countries (excludes European Union). (Per cent) Variable 2007 2008 2009 2010 2011 2012 2013 2014 2015* GDP 5.7 3.1 0.0 5.4 4.2 3.4 3.3 3.4 3.1 Trade 7.9 2.9-10.3 12.5
More informationGlobal Economic Management and Asia s Responsibility Masahiro Kawai Asian Development Bank Institute
Global Economic Management and Asia s Responsibility Masahiro Kawai Asian Development Bank Institute PECC 18 th General Meeting Economic Crisis and Recovery: Roles for the Asia-Pacific Economies Washington,
More informationThe Case for an Asian Currency?
The Case for an Asian Currency? Robert Mundell Columbia University Institute for International Monetary Affairs (IIMA) Tokyo, Japan November 12, 2004 Topics Lessons from the Euro China and the RMB Issue
More informationRUSSIAN ECONOMIC OUTLOOK AND MONETARY POLICY CHALLENGES RUSSIAN ECONOMIC OUTLOOK AND MONETARY POLICY CHALLENGES. Bank of Russia.
RUSSIAN ECONOMIC OUTLOOK AND MONETARY POLICY CHALLENGES Bank of Russia July 218 < -1% -1-9% -9-8% -8-7% -7-6% -6-5% -5-4% -4-3% -3-2% -2-1% -1 % 1% 1 2% 2 3% 3 4% 4 5% 5 6% 6 7% 7 8% 8 9% 9 1% 1 11% 11
More information483 Subject Index. Global Depositiory Receipts, 250 Grassman s law, 148, 160
Subject Index Adjustabonos, 401-3 Agency for International Development, 100 American depository receipts (ADRs): considered as foreign securities, 250; traded on over-the-counter market, 245 Arbitrage:
More informationExchange Rate Regimes and Monetary Policy: Options for China and East Asia
Exchange Rate Regimes and Monetary Policy: Options for China and East Asia Takatoshi Ito, University of Tokyo and RIETI, and Eiji Ogawa, Hitotsubashi University, and RIETI 3/19/2005 RIETI-BIS Conference
More informationTHE GLOBAL FINANCIAL CRISIS LESSONS FOR FINANCIAL SECTOR REFORM
THE GLOBAL FINANCIAL CRISIS LESSONS FOR FINANCIAL SECTOR REFORM Ulrich Volz, German Development Institute (DIE) ICRIER-InWEnt Workshop on Current Developments in the Indian Financial System New Delhi,
More informationThis paper updates the weights for effective exchange rate calculations, using. New Rates from New Weights
IMF Staff Papers Vol. 53, No. 2 2006 International Monetary Fund New Rates from New Weights TAMIM BAYOUMI, JAEWOO LEE, AND SARMA JAYANTHI* This paper describes the result and the methodology of updating
More informationChapter 9 Essential macroeconomic tools. Baldwin&Wyplosz 2009 The Economics of European Integration, 3 rd Edition
Chapter 9 Essential macroeconomic tools 2 Background theory A quick refresher on basic macroeconomic principles Application of these principles to the question of exchange rate regimes 3 Output and prices
More informationThe International Monetary System
INTERNATIONAL FINANCIAL MANAGEMENT Fourth Edition EUN / RESNICK The International Monetary System 2 Chapter Two INTERNATIONAL Chapter Objective: FINANCIAL MANAGEMENT This chapter serves to introduce the
More informationThe Role of Asian Currencies in the International Monetary System
The Role of Asian Currencies in the International Monetary System Masahiro Kawai Asian Development Bank Institute The Global Monetary and Financial System and Its Governance Tokyo Club Foundation for Global
More informationTest Bank Multinational Business Finance 14th Edition by Eiteman Stonehill Moffett
Test Bank Multinational Business Finance 14th Edition by Eiteman Stonehill Moffett Solutions Manual for Multinational Business Finance 14th Edition by David K. Eiteman, Arthur I. Stonehill, Michael H.
More informationReplies to memo questions, 09/09/03
Replies to memo questions, 09/09/03 Dear Students, As you know, we did not cover the balance of payments so I ll skip the answer to my question on it. Your answers to the second question (why currency
More informationTHE GLOBAL ECONOMY AND POLICY Macroeconomics in Context (Goodwin, et al.)
Chapter 14 THE GLOBAL ECONOMY AND POLICY Macroeconomics in Context (Goodwin, et al.) Chapter Overview This chapter will take you through the basics of international trade and finance. The chapter introduces
More informationFiscal Policy and the Global Crisis
Fiscal Policy and the Global Crisis Presentation at Koҫ University, Istanbul Carlo Cottarelli Director IMF Fiscal Affairs Department June 9, 2009 1 Two fiscal questions What is the appropriate fiscal policy
More informationMonetary Integration
Monetary Integration By Michael Möhnle Table of Contents 1. 6-Stages of Economic Integration 2. International Monetary Integration - Bretton Woods 3. European Monetary Integration 4. European (Economic
More informationMonetary Policy Stance amid the Risk of Uneven Global Growth and External Imbalance
Monetary Policy Stance amid the Risk of Uneven Global Growth and External Imbalance Agus D.W. Martowardojo Governor Bank Indonesia Prepared for Mandiri Investment Forum, January 27, 2015 2 1 Global Economic
More informationChapter 1. Globalization and the Multinational Corporation Cambridge University Press 1-1
Chapter 1 Globalization and the Multinational Corporation 2018 Cambridge University Press 1-1 1.1 Introduction Globalization Increasing connectivity and integration of countries and corporations and the
More informationA Stable International Monetary System Emerges: Inflation Targeting as Bretton Woods, Reversed
A Stable International Monetary System Emerges: Inflation Targeting as Bretton Woods, Reversed Andrew K. Rose UC Berkeley, CEPR and NBER September, 2007 Motivation Many Currency Crises through end of 20
More informationDivision on Investment and Enterprise
Division on Investment and Enterprise Readers are encouraged to use the data in this publication for non-commercial purposes, provided acknowledgement is explicitly given to UNCTAD, together with the reference
More informationEcon 340. Who Uses Fixed and Float. Outline: Fixed versus Floating Exchange Rates. Lecture 16 Fixed versus Floating Exchange Rates
Econ 340 Lecture 16 Fixed versus Floating 2 Who Uses Fixed and Float Exchange Arrangements of Sample Countries, as of 2016 Lessons from the list of exchange arrangements (below) Floating rates are used
More informationGLOBAL MARKET OUTLOOK
GLOBAL MARKET OUTLOOK Max Darnell, Managing Partner, Chief Investment Officer All material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. performance is no
More informationExchange Rate Arrangements in East Asia: Lessons from the Currency Crisis
MONETARY AND ECONOMIC STUDIES (SPECIAL EDITION)/DECEMBER 2002 Exchange Rate Arrangements in East Asia: Lessons from the 1997 98 Currency Crisis Masahiro Kawai This paper examines the evolution of exchange
More informationWeek 1. Currency Systems and Crises
Week 1 Currency Systems and Crises Definition An exchange rate is the amount of currency that one needs in order to buy one unit of another currency, or the amount of currency that one receive when selling
More informationCurrent Issues in International Tax Policy
Current Issues in International Tax Policy Shigeto HIKI Director, International Tax Policy Division, Tax Bureau, Ministry of Finance, Japan The Fourth IMF-Japan High-Level Tax Conference For Asian Countries
More informationCredit Ratings for 50 Countries and Regions by Dagong
Review Summary at 1 st Anniversary of Issuance of Sovereign Credit Ratings for 50 Countries and Regions by Dagong July 11, 2011 Dagong officially released Sovereign credit ratings for 50 countries and
More information4.1 Foreign Exchange Average Rates Pak Rupees per US Dollar
4.1 Foreign Exchange Average Rates Pak Rupees per US Dollar PERIOD Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. 1990-91 21.7944 21.8083 21.7944 21.8440 21.9107 21.9099 22.1296 22.2054 1991-92 24.6281 24.7185
More informationThe New Petrodollar Flows
1 The New Petrodollar Flows 20 June 2006 Brad Bourland, CFA Chief Economist Oil Price Trends 2 Oil Prices, 1986-2006 80 70 60 50 40 30 20 10 0 Jan-86 Jan-87 Jan-88 Jan-89 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94
More informationCurrency Crises: Theory and Evidence
Currency Crises: Theory and Evidence Lecture 3 IME LIUC 2008 1 The most dramatic form of exchange rate volatility is a currency crisis when an exchange rate depreciates substantially in a short period.
More informationIs There Really a RMB Bloc in Asia?
Is There Really a RMB Bloc in Asia? Masahiro Kawai Graduate School of Public Policy University of Tokyo Victor Pontines Asian Development Bank Institute 13th Research Meeting of NIPFP-DEA Research Program
More informationThe bank safety net: institutions and rules for preserving the stability of the banking system
The bank safety net: institutions and rules for preserving the stability of the banking system Professor Dr. Christos V. Gortsos Professor of Public Economic Law, Law School, National and Kapodistrian
More informationPrepared by Iordanis Petsas To Accompany. by Paul R. Krugman and Maurice Obstfeld
Chapter 22 Developing Countries: Growth, Crisis, and Reform Prepared by Iordanis Petsas To Accompany International Economics: Theory and Policy, Sixth Edition by Paul R. Krugman and Maurice Obstfeld Chapter
More informationChapter Eleven. The International Monetary System
Chapter Eleven The International Monetary System Introduction 11-3 The international monetary system refers to the institutional arrangements that govern exchange rates. Floating exchange rates occur when
More informationChallenges to the International Monetary System: Rebalancing Currencies, Institutions, and Rates
Challenges to the International Monetary System: Rebalancing Currencies, Institutions, and Rates Takatoshi Kato Deputy Managing Director International Monetary Fund September 3, 27 1 9 Growth has been
More informationSession 1 : Economic Integration in Asia: Recent trends Session 2 : Winners and losers in economic integration: Discussion
Session 1 : 09.00-10.30 Economic Integration in Asia: Recent trends Session 2 : 11.00-12.00 Winners and losers in economic integration: Discussion Session 3 : 12.30-14.00 The Impact of Economic Integration
More informationThe International Monetary System
The International Monetary System Eiteman et al., Chapter 2 Winter 2004 Outline of the Chapter Currency Terminology History of the International Monetary System Contemporary Currency Regimes Emerging Markets
More informationGlobal growth weakening as some risks materialise
OECD INTERIM ECONOMIC OUTLOOK Global growth weakening as some risks materialise 6 March 2019 Laurence Boone OECD Chief Economist http://www.oecd.org/eco/outlook/economic-outlook/ ECOSCOPE blog: oecdecoscope.wordpress.com
More informationAUSTRALIA S POLICIES TOWARDS PROTECTION AND FREE TRADE
AUSTRALIA S POLICIES TOWARDS PROTECTION AND FREE TRADE Tim Riley Director Economic Literacy Centre PROTECTION: TARIFFS AND SUBSIDIES Economic Arguments: Protect infant industries Protect employment during
More informationChapter 18. The International Financial System Intervention in the Foreign Exchange Market
Chapter 18 The International Financial System 18.1 Intervention in the Foreign Exchange Market 1) A central bank of domestic currency and corresponding of foreign assets in the foreign exchange market
More informationEconomics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 18 The International Financial System
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 18 The International Financial System 18.1 Intervention in the Foreign Exchange Market 1) A central bank of domestic currency and corresponding
More informationLecture 20: Exchange Rate Regimes. Prof.J.Frankel
Lecture 20: Exchange Rate Regimes What exchange rate regimes do countries choose? 1. Classification of exchange rate regimes What regimes should countries choose? 2. Advantages of fixed rates 3. Advantages
More informationAdvanced and Emerging Economies Two speed Recovery
Advanced and Emerging Economies Two speed Recovery 23 November 2 Bauhinia Foundation Research Centre Masaaki Shirakawa Governor of the Bank of Japan Slide 1 Japan s Silver Yen and Hong Kong s Silver Yuan
More informationEconomic Outlook. Macro Research Itaú Unibanco
Economic Outlook Macro Research Itaú Unibanco June, 2013 Agenda Economia Global Heterogeneous growth: U.S. growing faster, Europe in recession. Deceleration in the emerging economies. The Fed signals a
More informationOther similar crisis: Euro, Emerging Markets
Session 15. Understanding Macroeconomic Crises. Mexican Crisis 1994-95 Other similar crisis: Euro, Emerging Markets Global Scenarios 2017-2021 The Mexican Peso Crisis in 1994: Background An economy that
More informationA short history of debt
A short history of debt In the words of the late Charles Kindleberger, debt/financial crises are a hardy perennial we have been here many times before. Over the past decade and a half the ratio of global
More informationUPDATE ON FISCAL STIMULUS AND FINANCIAL SECTOR MEASURES. April 26, 2009
UPDATE ON FISCAL STIMULUS AND FINANCIAL SECTOR MEASURES April 26, 2009 This note provides an update of information in the paper, The State of Public Finances: Outlook and Medium-Term Policies After the
More informationInternational Monetary Fund. World Economic Outlook. Jörg Decressin Senior Advisor Research Department, IMF
International Monetary Fund World Economic Outlook Jörg Decressin Senior Advisor Research Department, IMF IMF Presentation April 3, The recovery is solidifying but it will take some time before it significantly
More informationPOLI 12D: International Relations Sections 1, 6
POLI 12D: International Relations Sections 1, 6 Spring 2017 TA: Clara Suong Chapter 9 International Monetary Relations 9 INTERNATIONAL MONETARY RELATIONS Core of the Analysis National Monetary Order Fixed
More informationChapter 6. The Open Economy
Chapter 6 0 IN THIS CHAPTER, YOU WILL LEARN: accounting identities for the open economy the small open economy model what makes it small how the trade balance and exchange rate are determined how policies
More informationtariff global business nontariff barriers multinational corporation quota direct foreign investment trade barriers voluntary export restraints
global business tariff multinational corporation nontariff barriers direct foreign investment quota trade barriers voluntary export restraints protectionism government import standard A direct tax on imported
More informationECONOMIC BULLETIN - No. 41, NOVEMBER Statistical tables
ECONOMIC BULLETIN - No. 41, NOVEMBER 2005 APPENDIX Appendix Statistical tables The world economy Table a1 GDP at constant prices a2 Industrial production a3 Consumer prices a4 External current account
More information1)International Monetary System
1) (International Monetary System) 2) 3) (Balance of Payments) 4) (Foreign Exchange Market) 5) Interest Rate Parity (IRP) 6) Covered Interest Arbitrage 1 1)International Monetary System 1.1 The Gold Standard
More informationIntroduction to INDONESIA
Introduction to INDONESIA Indonesia is the fifth largest economy in Asia in nominal GDP terms and the third most populous nation behind China and India. It has recorded strong economic growth over the
More informationSovereign Risks and Financial Spillovers
Sovereign Risks and Financial Spillovers International Monetary Fund October 21 Roadmap What is the Outlook for Global Financial Stability? Sovereign Risks and Financial Fragilities Sovereign and Banking
More informationYen and Yuan. The Impact of Exchange Rate Fluctuations on the Asian Economies. C. H. Kwan RIETI
Yen and Yuan The Impact of Exchange Rate Fluctuations on the Asian Economies C. H. Kwan RIETI November 21 The Yen-dollar Rate as the Major Determinant of Asian Economic Growth -4-3 -2 Stronger Yen Yen
More informationBretton Woods Intentional Interdependence Bretton Woods New Hampshire. I.M.F.
Bretton Woods- 1944 Intentional Interdependence Bretton Woods New Hampshire. U.S. and U.K. established funds and rules with U.S. dollar to be the reserve currency. I.M.F. Created to facilitate a return
More informationCurrency Asymmetry, Global Imbalance, and the Needed Reform of Global Monetary System
Currency Asymmetry, Global Imbalance, and the Needed Reform of Global Monetary System FAN Gang National Economic Research Institute China Reform Foundation May 2006 1.China s trade balance In most of past
More informationActuarial Supply & Demand. By i.e. muhanna. i.e. muhanna Page 1 of
By i.e. muhanna i.e. muhanna Page 1 of 8 040506 Additional Perspectives Measuring actuarial supply and demand in terms of GDP is indeed a valid basis for setting the actuarial density of a country and
More informationANNEX 2: Methodology and data of the Starting a Foreign Investment indicators
ANNEX 2: Methodology and data of the Starting a Foreign Investment indicators Methodology The Starting a Foreign Investment indicators quantify several aspects of business establishment regimes important
More informationIndonesia Economic Outlook and Policy Challenges
Indonesia Economic Outlook and Policy Challenges Daniel A. Citrin Asia and Pacific Department, IMF April 3, 28 Global Financial Stability Map: risks have risen; conditions have deteriorated October 27
More informationIsrael through the Global Crisis: Do Innovations Help?
Israel through the Global Crisis: Do Innovations Help? Prof. Zvi Eckstein Dean, School of Economics, IDC Herzliya 24 March 2014 1 Outline The Macro Picture Innovations and Start Ups 2 Growth Rates - Israel,
More informationWorld Economy: Prospects and Risks Masahiro Kawai Graduate School of Public Policy Univ. of Tokyo
World Economy: Prospects and Risks Masahiro Kawai Graduate School of Public Policy Univ. of Tokyo Seoul 13 June 2017 Prospects of the World Economy The world economy is growing in 2017 The US Fed continues
More informationFinancial wealth of private households worldwide
Economic Research Financial wealth of private households worldwide Munich, October 217 Recovery in turbulent times Assets and liabilities of private households worldwide in EUR trillion and annualrate
More informationLecture 13 International Trade: Economics 181 Foreign Direct Investment (FDI) and Multinational Corporations (MNCs)
Lecture 13 International Trade: Economics 181 Foreign Direct Investment (FDI) and Multinational Corporations (MNCs) REMEMBER: Midterm NEXT TUESDAY. Office hours next week: Monday, 12 to 2 for Ann Harrison
More informationAnalysis of Regional Investment Frameworks Worldwide
Analysis of Regional Investment Frameworks Worldwide Sophie WERNERT Policy analyst Meeting of Working Group 1 MENA-OECD Investment Programme 15-16 February 2010, Amman, Jordan OECD Private Sector Development
More informationBALANCE OF PAYMENTS¹ of the Republic of Azerbaijan for January September, 2015
BALANCE OF PAYMENTS¹ of the Republic of Azerbaijan for January September, 2015 As in previous years, in January - September, 2015 external economic operations had positive balance on the oil-and-gas sector
More informationReporting practices for domestic and total debt securities
Last updated: 27 November 2017 Reporting practices for domestic and total debt securities While the BIS debt securities statistics are in principle harmonised with the recommendations in the Handbook on
More informationThe Rise of China and the International Monetary System
The Rise of China and the International Monetary System Masahiro Kawai Asian Development Bank Institute Macro Economy Research Conference China and the Global Economy Hosted by the Nomura Foundation Tokyo,
More informationPascal Kerneis Managing Director ESF (European Services Forum)
Pascal Kerneis Managing Director ESF (European Services Forum) 90 «The voice of the European Service Industries for World Economy: Percentage of GDP by Sector - 2016 80 70 76.7 73.1 67.2 69.2 68.8 65 60
More informationROUNDTABLE COMMENTS ON MONETARY AND REGULATORY POLICY IN AN ERA OF GLOBAL MARKETS
ROUNDTABLE COMMENTS ON MONETARY AND REGULATORY POLICY IN AN ERA OF GLOBAL MARKETS Liliana Rojas-Suarez Institute for International Economics D uring the conference we have heard a lot of stress placed
More informationQuarterly Economic Outlook: Quarter on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War
Foregin Direct Investment (Billion USD) China U.S. Asia World Quarterly Economic Outlook: Quarter 3 2018 on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War Thai Economy: Thai
More informationInternational Finance
International Finance 19 1 Balance of Payments International economic transactions Flow of transactions period of time May not involve cash payments Double-entry bookkeeping Credits Inflow of receipts
More informationIndex. exchange rates, 104 5, net inflows, 100, 115, Bretton Woods system, 96 7 business cycles, 57
Index additional monetary tightening (AMT), 43 4 advanced economies, central banks in, 35 6 agency problems, 153, 163n47 aggregate demand, 18, 138 9, 141 2 Asian financial crisis, 8, 10, 13 15, 57, 65,
More informationRECENT EVOLUTION AND OUTLOOK OF THE MEXICAN ECONOMY BANCO DE MÉXICO OCTOBER 2003
OCTOBER 23 RECENT EVOLUTION AND OUTLOOK OF THE MEXICAN ECONOMY BANCO DE MÉXICO 2 RECENT DEVELOPMENTS OUTLOOK MEDIUM-TERM CHALLENGES 3 RECENT DEVELOPMENTS In tandem with the global economic cycle, the Mexican
More informationDG Trade Statistical Guide Trade
DG Trade Statistical Guide 2016 Trade EUROPEAN COMMISSION DG Trade Chief Economist and Trade Analysis Statistics Sector E-mail: trade-statistics@ec.europa.eu EUROPEAN COMMISSION DG Trade Statistical Guide
More informationReal Effective Exchange Rate based on CPI as Price Index for India*
Real Effective Exchange Rate based on CPI as Price Index for India ARTICLE Real Effective Exchange Rate based on CPI as Price Index for India* Effective exchange rates are summary indicators of movements
More informationFedesarrollo Leonardo Villar Cristina Fernández
Fedesarrollo Leonardo Villar Cristina Fernández December 13, 2012 Per capita income LAC has fallen behind East Asia Per capita income 1900 2008. (1990=100) Per capita income / US per capita income Source:
More informationINVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN
INVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN MIKE LESLIE, FACULTY PENSION PLAN NEIL WATSON, LEITH WHEELER FEBRUARY 12, 2014 Presenters Mike Leslie Executive Director, Investments Faculty Pension Plan
More informationFinancial Crisis What do we know?
Financial Crisis What do we know? Pedro Videla IESE Global Propagation of the Financial Crisis United Kingdom Ireland Iceland United States Spain January 2008 March 2008 June 2008 September 2008 January
More informationOVERVIEW of INTERNATIONAL CAPITAL FLOWS
OVERVIEW of INTERNATIONAL CAPITAL FLOWS By Mack Ott, CEE, 2008 [Mack Ott is an international economic consultant whose major assignments have been in theformer Soviet Union countries, the Balkans, and
More informationCapital Flows to Emerging Markets - The Perspective from the IIF
Capital Flows to Emerging Markets - The Perspective from the IIF Felix Huefner Global Macroeconomic Analysis Department Institute of International Finance 1 st Meeting of the COMCEC Financial Cooperation
More information