Should Korea Worry About A Permanently Weak Yen

Author : Mr.Jack Ree,Mr.Gee Hee Hong,Seoeun Choi
Publisher : International Monetary Fund
Page : 38 pages
File Size : 43,7 Mb
Release : 2015-07-16
Category : Business & Economics
ISBN : 9781513510835

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Should Korea Worry about a Permanently Weak Yen? by Mr.Jack Ree,Mr.Gee Hee Hong,Seoeun Choi Pdf

Three years have passed since the Bank of Japan’s asset purchase program was introduced in 2011, causing a sharp decline in the value of the Japanese Yen. What would be the implications for Japan and Korea’s exporters if the weak Yen is here to stay? We explore this question by examining exporters’ pricing behaviors and volume responses to exchange rate shocks. We find that if the weak Yen persists, it would strengthen Japan’s price competitiveness over time as export prices respond with a lag. We also find that while direct boosts to export demand will be rather limited, a persistently weaker Yen would expand the Japanese exporters’ profits lastingly, which could reinvigorate the ability, particularly of flagship exporting firms, to compete and grow in the global market over time. These findings suggest that the muted price and volume response so far to the sustained weakness of the Yen may mask a more fundamental shift in the relative competitiveness of Japanese and Korean exporters.

Author : Jack Joo K. Ree,Gee Hee Hong,Seoeun Choi
Publisher : Unknown
Page : 37 pages
File Size : 47,8 Mb
Release : 2015
Category : Electronic books
ISBN : 1513514032

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Should Korea Worry about a Permanently Weak Yen? by Jack Joo K. Ree,Gee Hee Hong,Seoeun Choi Pdf

Three years have passed since the Bank of Japan's asset purchase program was introduced in 2011, causing a sharp decline in the value of the Japanese Yen. What would be the implications for Japan and Korea's exporters if the weak Yen is here to stay? We explore this question by examining exporters' pricing behaviors and volume responses to exchange rate shocks. We find that if the weak Yen persists, it would strengthen Japan's price competitiveness over time as export prices respond with a lag. We also find that while direct boosts to export demand will be rather limited, a persistently weaker.

Author : International Monetary Fund. Asia and Pacific Dept
Publisher : International Monetary Fund
Page : 63 pages
File Size : 41,9 Mb
Release : 2015-05-22
Category : Business & Economics
ISBN : 9781513589886

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Republic of Korea: 2015 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Korea by International Monetary Fund. Asia and Pacific Dept Pdf

KEY ISSUES Outlook and risks. The outlook remains challenging from both a cyclical and structural standpoint. The hoped-for output recovery has not materialized—domestic demand remains sluggish and inflation low and external uncertainties have increased. More fundamentally, relatively weak non-manufacturing productivity has been accompanied by a heavy, and likely unsustainable, reliance on manufacturing exports for growth while also leaving the economy more exposed to external shocks, and the demographic headwinds from a rapidly aging population are beginning to build. Policy assessment. Building on the authorities’ recent monetary, fiscal, and other policy measures to stimulate demand, efforts should remain focused on shoring up economic momentum where the currently weak outlook could have a lasting impact on Korea’s growth well beyond the near term. Given asymmetric costs of the downside risk of low growth and inflation becoming entrenched the authorities should take additional pre- emptive stimulatory monetary and fiscal policy actions if clear signs of a recovery do not emerge soon. At the same time sustaining longer-term growth and reducing external imbalances call for structural reforms to address low service sector productivity, support a more dynamic corporate and SME sector, and remove barriers that lead to underutilized labor. Maintaining a flexible exchange rate is essential both as a buffer against external shocks and to facilitate adjustment toward domestic sources of growth and thereby reduce external imbalances.

Author : Mr.Giovanni Ganelli,Nour Tawk
Publisher : International Monetary Fund
Page : 32 pages
File Size : 53,6 Mb
Release : 2016-05-23
Category : Business & Economics
ISBN : 9781475526233

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Spillovers from Japan’s Unconventional Monetary Policy to Emerging Asia by Mr.Giovanni Ganelli,Nour Tawk Pdf

We use a Global VAR model to study spillovers from the Bank of Japan’s quantitative and qualitative easing (QQE) on emerging Asia.1 Our main result is that, despite an appreciation of their currencies vis-à-vis the yen, the impact on emerging Asia’s GDP tended to be positive and significant. Our results suggest that the positive effect of QQE on expectations, by improving confidence, more than offset any negative exchange rate spillover due to expenditure switching from domestic demand to Japanese goods. They also suggest that spillovers from QQE might have worked mainly through the impact of expectations and improved confidence, captured by increases in equity prices, rather than through balance sheet adjustments which might have been captured by movements in the monetary base.

Author : Tanim Bayoumi,Stephen Pickford,Paola Subacchi
Publisher : Brookings Institution Press
Page : 291 pages
File Size : 42,5 Mb
Release : 2016-01-05
Category : Business & Economics
ISBN : 9780815727163

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Managing Complexity by Tanim Bayoumi,Stephen Pickford,Paola Subacchi Pdf

A critical look at the challenges facing international policy cooperation in the new postcrisis environment. The global financial crisis of 2007–09 highlighted the economic interdependencies between all major countries, raising the issues of international cooperation. Managing Complexity: Economic Policy Cooperation after the Crisis looks at how, following the global financial crisis, countries have changed the way they cooperate with each other on matters of economic policy. In this volume, the result of a joint research project of Chatham House and the International Monetary Fund, researchers and policymakers who were directly involved in the crisis take a critical look at the challenges facing international policy cooperation in the new postcrisis environment and at how the theory and practice of cooperation have evolved as a result of the crisis.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 228 pages
File Size : 51,8 Mb
Release : 2015-10-06
Category : Business & Economics
ISBN : 9781513520735

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World Economic Outlook, October 2015 by International Monetary Fund. Research Dept. Pdf

This issue discusses a number of factors affecting global growth, as well as growth prospects across the world’s main countries and regions. It assesses the ongoing recovery from the global financial crisis in advanced and emerging market economies and evaluates risks, both upside and downside, including those associated with commodity prices, currency fluctuations, and financial market volatility. A special feature examines in detail causes and implications of the recent commodity price downturn; analytical chapters look at the effects of commodity windfalls on potential output and of exchange rate movements on trade.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 18 pages
File Size : 42,5 Mb
Release : 2015-09-25
Category : Business & Economics
ISBN : 9781513592428

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IMF Research Bulletin, September 2015 by International Monetary Fund. Research Dept. Pdf

The September 2015 issue of the IMF Research Bulletin covers a range of research topics. The Research Summaries featured in this issue are “Lower for Longer: Neutral Rates in the United States” (Andrea Pescatori and Jarkko Turunen) and “Economic Principles for Resource Revenue Management” (Anthony J. Venables and Samuel Wills). The Q&A article looks at “Seven Questions on Financing for Development” (Amadou Sy) and the global development agenda. The issue also includes special announcements on the 2015 Annual Research Conference and the 2015 IMF Annual Report, as well as new IMF publications. Readers will also find a link to a top-viewed article from the “IMF Economic Review”—the IMF’s official research journal.

Author : Swarnali Ahmed,Maximiliano Appendino,Michele Ruta
Publisher : International Monetary Fund
Page : 28 pages
File Size : 49,6 Mb
Release : 2015-11-30
Category : Business & Economics
ISBN : 9781513560977

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Global Value Chains and the Exchange Rate Elasticity of Exports by Swarnali Ahmed,Maximiliano Appendino,Michele Ruta Pdf

This paper analyzes how the formation of Global Value Chains (GVCs) has affected the exchange rate elasticity of exports. Using a panel framework covering 46 countries over the period 1996-2012, we first find some suggestive evidence that the elasticity of real manufacturing exports to the Real Effective Exchange Rate (REER) has decreased over time. We then examine whether the formation of supply chains has affected this elasticity using different measures of GVC integration. Intuitively, as countries are more integrated in global production processes, a currency depreciation only improves competitiveness of a fraction of the value of final good exports. In line with this intuition, we find evidence that GVC participation reduces the REER elasticity of manufacturing exports by 22 percent, on average.

Author : Mr.Dennis P. J. Botman,Mr.Irineu E. de Carvalho Filho,Mr.Waikei W. Lam
Publisher : International Monetary Fund
Page : 21 pages
File Size : 43,7 Mb
Release : 2013-11-06
Category : Business & Economics
ISBN : 9781475513424

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The Curious Case of the Yen as a Safe Haven Currency by Mr.Dennis P. J. Botman,Mr.Irineu E. de Carvalho Filho,Mr.Waikei W. Lam Pdf

During risk-off episodes, the yen is a safe haven currency and on average appreciates against the U.S. dollar. We investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the future monetary policy stance can explain the yen’s safe haven behavior. In contrast, we find evidence that changes in market participants’ risk perceptions trigger derivatives trading, which in turn lead to changes in the spot exchange rate without capital flows. Specifically, we find that risk-off episodes coincide with forward hedging and reduced net short positions or a buildup of net long positions in yen. These empirical findings suggest that offshore and complex financial transactions should be part of spillover analyses and that the effectiveness of capital flow management measures or monetary policy coordination to address excessive exchange rate volatility might be limited in certain cases.

Author : Mr.Fei Han,Mr.Niklas J Westelius
Publisher : International Monetary Fund
Page : 19 pages
File Size : 51,9 Mb
Release : 2019-07-01
Category : Business & Economics
ISBN : 9781498325394

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Anatomy of Sudden Yen Appreciations by Mr.Fei Han,Mr.Niklas J Westelius Pdf

The yen is an important barometer for the Japanese economy. Depreciations are typically associated with favorable economic developments such as increased corporate profits, rising equity prices, and upward pressure on domestic consumer prices. On the other hand, large and sharp appreciations run the risk of lowering actual and expected inflation, squeezing corporate profits, generating a negative wealth effect through depressed equity prices, and reducing confidence in the Bank of Japan’s efforts to reflate the domestic economy and achieve the inflation target. This paper takes a closer look at underlying drivers of rapid yen appreciations, highlighting the key role of carry-trade and the zero lower bound as important amplifiers.

Author : United States. Congress. House. Committee on Banking and Financial Services
Publisher : Unknown
Page : 476 pages
File Size : 51,6 Mb
Release : 1999
Category : Business & Economics
ISBN : PSU:000043016358

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International Economic Turmoil by United States. Congress. House. Committee on Banking and Financial Services Pdf

Author : Andrei Lankov
Publisher : Oxford University Press
Page : 350 pages
File Size : 46,5 Mb
Release : 2015
Category : History
ISBN : 9780199390038

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The Real North Korea by Andrei Lankov Pdf

In The Real North Korea, Lankov substitutes cold, clear analysis for the overheated rhetoric surrounding this opaque police state. Based on vast expertise, this book reveals how average North Koreans live, how their leaders rule, and how both survive

Author : Anonim
Publisher : Unknown
Page : 648 pages
File Size : 51,6 Mb
Release : 1997
Category : Marine engineering
ISBN : UOM:39015040306287

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The Motor Ship by Anonim Pdf

Author : Takatoshi Ito,Anne O. Krueger
Publisher : University of Chicago Press
Page : 466 pages
File Size : 41,5 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226386935

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Changes in Exchange Rates in Rapidly Developing Countries by Takatoshi Ito,Anne O. Krueger Pdf

The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central component in the economic policy of developing countries and a key factor affecting economic growth. Historically, most developing nations have employed strict exchange rate controls and heavy protection of domestic industry-policies now thought to be at odds with sustainable and desirable rates of economic growth. By contrast, many East Asian nations maintained exchange rate regimes designed to achieve an attractive climate for exports and an "outer-oriented" development strategy. The result has been rapid and consistent economic growth over the past few decades. Changes in Exchange Rates in Rapidly Developing Countries explores the impact of such diverse exchange control regimes in both historical and regional contexts, focusing particular attention on East Asia. This comprehensive, carefully researched volume will surely become a standard reference for scholars and policymakers.

Author : John Mauldin
Publisher : John Wiley & Sons
Page : 696 pages
File Size : 48,5 Mb
Release : 2012-07-19
Category : Business & Economics
ISBN : 9781118403631

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The John Mauldin Classics Collection by John Mauldin Pdf

Three bestselling works from noted investment advisor John Mauldin in one handy e-book collection Renowned investment advisor and New York Times bestselling author John Mauldin is one of the most well-known and admired economic observers anywhere and a trusted name for millions of investors. In this all-in-one e-book collection, three of Mauldin's biggest selling and most important titles are available together for the first time. In Bull's Eye Investing, Mauldin uses six different perspectives on the markets to prepare investors for a profitable future In Just One Thing, Mauldin offers a shortcut to prosperity with personal guidance from a selection of highly-regarded financial experts, each of whom provide their single most useful piece of advice In Endgame, Mauldin argues that rather than slowly recovering from the current financial crisis, the world economy is entering a period in which governments, rather than households, will experience extreme financial "restructuring"