THE INTERNATIONAL MONETARY FUND AND EXCHANGE RATE CRISIS MANAGEMENT∗ CHONG-YAH LIM Albert Winsemius Chair Professor of Economics Director, Economic Growth Centre (EGC) School of Humanities and Social Sciences (HSS) Nanyang Technological University (NTU) S3-01B-38, Nanyang Avenue, Singapore 639798 acylim@ntu.edu.sg The article analyzes the limits of the IMF as a global multilateral economic agency to handle serious balance of payments disequilibria. Capital control and growth rates in developing
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The Developing Economies, XLI-4 (December 2003): 401–35 401 EFFECTS OF THE REAL EXCHANGE RATE ON OUTPUT AND INFLATION: EVIDENCE FROM TURKEY HAKAN BERUMENT MEHMET PASAOGULLARI This paper assesses the effects of real depreciation on the economic performance of Turkey by considering quarterly data from 1987:I to 2001:III. The empirical evidence suggests that, contrary to classical wisdom, the real depreciations are contractionary, even when external factors like world interest rates, international
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The rate at which one currency is converted into another is as an exchange rate (Hill, 2011). As stated in our text books, there are multiple types of exchange rates. Each plays an important role as to the operations of various countries. The floating exchange rate is a market-driven price for currency. In this particular case, the exchange rate is determined by the free market forces of demand and supply of currencies with no interference of that particular government. With this particular exchange
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JEANS USA SUGGESTED SOLUTION Balance of Payments for year 0 |CURRENT ACCOUNT BALANCE nie |-2,500 | |Merchandise exports fob |12,078 | |Merchandise imports fob | -7,387 | | Trade balance
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Crony capitalism is a term used to describe an allegedly capitalist economy in which success of a business depends on close relationship between business people and government officials. It may be exhibited by favoritism in special tax breaks, distribution of legal permits and so forth. • There is no proper risk assessment for loans In this case of proper risk assessment for loans, it all comes down to banks giving loan to people they are closed with. It was known during the time that most people
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Case: American Barrick Resources Corporation American Barrick’s revenue consists to 100 per cent of gold sales, and is thus very sensitive to price changes in the gold price. In order to manage this risk the company runs an extensive hedging program. American Barrick’s strategy is to continue to grow through acquisitions overseas in the coming year whilst maintaining a flexible organization with low debt. In 1992, the gold prices were low and had declined since 1987. However, I believe that this
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Chapter 11: The Global Monetary System Assignment Case Analysis 1: Argentina’s Monetary Crisis (Page 399) Questions: 1. How did the fixed exchange rate against the dollar that Argentina adopted in the 1990s benefit the economy? By adopting a fixed exchange rate, the government reduced uncertainties for all economic agents in the country. As businesses had the perfect knowledge that prices are fixed and therefore not going to change, hence they could plan ahead in their productions. This
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Investment Research General Market Conditions 18 October 2010 Research China Fighting a defensive war In the militaristic language of the currency war, important battles are looming ahead in connection with the G20 meetings. China will, in our view, be fighting a defensive war and will make a tactical retreat in order to avoid a devastating war that it might have to fight alone and where everybody loses in the end. Hence, China will probably maintain current momentum in the appreciation
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1. What is net foreign wealth and what is its relationship to the current account? Suppose that a country starts with $10B in net foreign wealth and its exports and imports in the following three years are $2B and $4B, $1B and $5B, and $2B and $6B, respectively. What is the country's net foreign wealth after three years? Should the country's government worry about this trend? What could it do about it? Does your answer depend on the exchange rate regime? Explain. - Net foreign wealth is defined
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The W.D. Carter Library of Caribbean Economic Development was established in 1999 to commemorate the lifetime achievements of Wentworth D. Carter. Carter successfully pursued careers in real estate and health care entrepreneurship. Despite his busy schedule, he found time to pursue his greatest passion - the education and empowerment of the youth. The Library seeks to “Expose the God– centered principles of economic development in the quest to contribute to the advancement of wealth creation and
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