Exchange rate

Classification JEL : C22 ; F31. Mots-clés : Taux de change réel effectif d’équilibre ; fondamentaux de l’économie ; mésalignements ; estimation non paramétrique ; estimation non linéaire. A non-parametric estimate of the long term real effective exchange rate of the dirham vis-à-vis the EU15 was conducted for the period of 1967-2000 (using quarterly data). The following fundamentals were used: the external terms of trade; the economy’s degree of openness; the ratio of public spending (as a percentage

Methods Changing interest rates Open-market operations Changing reserve requirement: keep percentage of reserve in banks “Now with short term interest rates will stuck near zero….” B. Quantitative easing Lowering exchange of the interest rate when banks exchange with other banks Long-term bonds Reach new equilibrium II) A. Positive consequences Bigger output  lower unemployment Housing market Devaluation of currency  competiveness Higher inflation in the future 

CpSat/CpLiq./Me.*Qtot; %*** Log mean enthalpy evaluation Dhlm = ((hae - hesSat) - (has - heeSat))./log((hae - hesSat)./(has - heeSat)); ConsoClim Cahier des Algorithmes réf.99079R BEG – V2.0 mars 1999 page 28 %*** Calculate global heat exchange coefficient UAh = Qtot./Dhlm; %*** Determine air-side coefficient UAext assuming that the surface temperature is uniform %*** and is the effective average surface temperature ( or apparatus dew point). The heat %*** transfert between the air and

Currency War Moving to shore up the “fragile and uneven” recovery, officials from the world’s 20 biggest economies promised Saturday to refrain from weakening their currencies, agreeing to let the markets exert more influence in setting foreign exchange rates. The officials also decided to give fast-growing countries a greater say at the International Monetary Fund, which monitors nations’ fiscal and monetary policies, an acknowledgment that the fund’s credibility required more representation

malaise in the Japanese economy ever since. The latter period has been characterized in Japan by deflation, declining personal income, a significant drop in gross domestic product (GDP) (measured in purchasing power parity) and a weakening in the exchange rate. For Guam, the decrease in arrivals has resulted in an economy on the verge of collapse. In 2003, an emergency 50% increase in the gross receipts tax was enacted by the legislature to prevent “payless” paydays. Although arrivals rebounded in 2004

to have access to the Russian market but the risk is very high. But in an other way, all the conditions necessary to the success of a company in Russia are fulfilled: economy in huge growth, increase of the power buying, oil resources and the huge rate of growth about 6-7% these recent years. b) Threat of substitutes Our substitutes are train, bus, bicycle, foot, plane, etc. In short, all means of transport but mainly public transports. The threat of substitutes is high. Therefore the firms

decisions. England didn’t accept Euro as its currency because of many reasons. We would like to understand those reasons in order to study further the economical aspect of this refusal. Everyone in Europe agreed with the currency Euro especially by exchange markets. The first main issue was about economical situation differences. At the beginning Tony Blair was for Euro but he listened to his financial minister Gordon Brown and reported the decision. M. Brown didn’t want to adopt Euro immediately

son d'équilibre de la PPA sont transitoires. 14 Mémoire de DEA-Master Recherche, réalisé et soutenu par HOUNGBEDJI Sèwanoudé Honoré A- Le modèle- FEER de Wlliamson et d'Edward (1994) Les modèles de type FEER (Fondamental Equilibrium Exchange Rate) qui s'inspirent de la définition du TCRE proposée par Nurkse dès 1944, posent que le TC d'équilibre d'une économie est celui qui permet la réalisation simultanée des équilibres interne et externe. A l'origine, l'équilibre interne représente le

of our international monetary arrangements have yet to be addressed. These weaknesses put in doubt the ability of the International Monetary System to durably fulfill its fundamental purpose, namely "… to provide a framework that facilitates the exchange of goods, services, and capital among countries, and that sustains sound economic growth (Article IV of the International Monetary Fund). These weaknesses include the following: Ineffective global adjustment process • • The system lacks effective

power of all citizens. By and large, the same process occurred in France and Spain. In the UK, on the contrary, despite the Pound is currently quoted at its lowest value since, at least, a decade (allegedly because of the extremely low interest rate and because of the political forces seem to be comfortable with this trend), the Sterling is quoted at a higher value than the Euro (currently 0,90 circa). If the same process previously occurred in the other European countries should take place in