Found 377 article(s) in category 'Monetary Policy'

The Country Chronologies to Exchange Rate Arrangements into the 21st Century: Will the Anchor Currency Hold?

The Country Chronologies to Exchange Rate Arrangements into the 21st Century: Will the Anchor Currency Hold? Carmen Reinhart, Kenneth Rogoff, February 2017, Paper, “Detailed country-by-country chronologies are an informative companion piece to our paper “Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?,” which provides a comprehensive history of anchor or reference currencies, exchange rate arrangements, and a new measure of foreign exchange restrictions for 194 countries and territories over 1946-2016. The individual country chronologies are also a central component of our approach to classifying regimes. These country histories date dual or multiple exchange rate episodes, as well as to differentiate between pre-announced pegs, crawling pegs, and bands from their de facto counterparts. We think it is important to distinguish between say, de facto pegs or bands from announced pegs or bands, because their properties are potentially different. The chronologies also flag the dates for important turning points, such as when the exchange rate first floated, or when the anchor currency was changed. We extend our chronologies as far back as possible, even though we only classify regimes from 1946 onwards.Link

Tags: , , , , , ,

The Truth About Blockchain

The Truth About Blockchain. Karim Lakhani, January/February 2017, Paper, “The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. With blockchain, this article can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. This is the immense potential of blockchain. Although this article shares the enthusiasm for its potential, it worries about the hype.Link

Tags: , , , , ,

Is the Deflation Cycle Over?

Is the Deflation Cycle Over? Carmen Reinhart, January 31, 2017, Opinion, “Until the global financial crisis of 2008-2009, deflation had all but disappeared as a concern for policymakers and investors in the advanced economies, apart from Japan, which has been subject to persistent downward pressure on prices for nearly a generation. And now deflationary fears are on the wane again.Link

Tags: , ,

The Trump Deficit

The Trump Deficit. Kenneth Rogoff, January 16, 2017, Opinion, “It is a post-financial-crisis myth that austerity-minded conservative governments always favor fiscal prudence, while redistribution-oriented progressives view large deficits as the world’s biggest free lunch. This simplistic perspective, while perhaps containing a grain of truth, badly misses the true underlying political economy of deficits.Link

Tags: , , , ,

Larry Summers on Public Investment

Larry Summers on Public Investment. Lawrence Summers, January 9, 2017, Video, “Larry Summers, both a former Obama administration White House Economic Council director and secretary of the treasury in the Clinton administration, made remarks on public investments during the Trump administration. He stressed the importance of public investments in transportation, drinking water, and education, and for the need to responsibly finance them. Following his remarks, Ed Glaeser, a Harvard University economics professor, discussed with Mr. Summers the merits and pitfalls of various financing mechanisms to fund infrastructure projects.Link

Tags: , , , ,

The House GOP’s Good Tax Trade-Off

The House GOP’s Good Tax Trade-Off. Martin Feldstein, January 5, 2017, Opinion, “Taxes are one of life’s certainties, and this year so is business tax reform. The tax plan developed by the House Republicans is similar in many ways to President-elect Trump’s plan but has one additional favorable feature—a border tax adjustment that exempts exports and taxes imports. This would give the U.S. the benefit that other countries…Link

Tags: , ,

Summers Says Markets Underestimating Risks of Trump Presidency

Summers Says Markets Underestimating Risks of Trump Presidency. Lawrence Summers, January 3, 2017, Video, “Former U.S. Treasury Secretary Lawrence Summers said investors are being far too sanguine about the risks associated with Donald Trump’s incoming administration. The Harvard professor, a Democrat who was Treasury chief under Bill Clinton, cited the possibility of protectionist measures by the U.S. as well as changes to foreign policy and domestic social policy as issues that are creating “extraordinary uncertainty.”” Link

Tags: , , , , ,

Trump’s Tax Plan and the Dollar

Trump’s Tax Plan and the Dollar. Emmanuel Farhi, Gita Gopinath, January 3, 2017, Opinion, “Now that Donald Trump has been elected President of the United States and Republicans control both houses of Congress, corporate tax reform is coming to America. The package currently being discussed includes two important features: a cut in the tax rate, from 35% currently to 20% or even 15%; and a “border-adjustment” tax, which is typical of a value-added-tax (VAT) regime, but unusual for corporate taxes.Link

Tags: , , , , ,