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Shocks Matter: Managing Capital Flows with Multiple Instruments in Emerging Economies

Shocks Matter: Managing Capital Flows with Multiple Instruments in Emerging Economies
Author: Mr.Ruy Lama
Publisher: International Monetary Fund
Total Pages: 44
Release: 2020-06-19
Genre: Business & Economics
ISBN: 151354568X

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We study the optimal management of capital flows in a small open economy model with financial frictions and multiple policy instruments. The paper reports two main findings. First, both foreign exchange intervention (FXI) and macroprudential polices are tools complementary to the monetary policy rate that can largely reduce inflation and output volatility in a scenario of capital outflows. Second, the optimal policy mix depends on the underlying shock driving capital flows. FXI takes the leading role in response to foreign interest rate shocks, while macroprudential policy becomes the prominent tool for domestic risk shocks. These results highlight the importance of calibrating the use of multiple instruments according to the underlying shocks that induce shifts in capital flows.


Do Credit Shocks Matter? A Global Perspective

Do Credit Shocks Matter? A Global Perspective
Author: Mr.Ayhan Kose
Publisher: International Monetary Fund
Total Pages: 39
Release: 2010-11-01
Genre: Business & Economics
ISBN: 1455209619

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This paper examines the importance of credit market shocks in driving global business cycles over the period 1988:1-2009:4. We first estimate common components in various macroeconomic and financial variables of the G-7 countries. We then evaluate the role played by credit market shocks using a series of VAR models. Our findings suggest that these shocks have been influential in driving global activity during the latest global recession. Credit shocks originating in the United States also have a significant impact on the evolution of world growth during global recessions.


Shock Wave Compression of Condensed Matter

Shock Wave Compression of Condensed Matter
Author: Jerry W Forbes
Publisher: Springer Science & Business Media
Total Pages: 388
Release: 2013-02-01
Genre: Science
ISBN: 3642325351

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This book introduces the core concepts of the shock wave physics of condensed matter, taking a continuum mechanics approach to examine liquids and isotropic solids. The text primarily focuses on one-dimensional uniaxial compression in order to show the key features of condensed matter’s response to shock wave loading. The first four chapters are specifically designed to quickly familiarize physical scientists and engineers with how shock waves interact with other shock waves or material boundaries, as well as to allow readers to better understand shock wave literature, use basic data analysis techniques, and design simple 1-D shock wave experiments. This is achieved by first presenting the steady one-dimensional strain conservation laws using shock wave impedance matching, which insures conservation of mass, momentum and energy. Here, the initial emphasis is on the meaning of shock wave and mass velocities in a laboratory coordinate system. An overview of basic experimental techniques for measuring pressure, shock velocity, mass velocity, compression and internal energy of steady 1-D shock waves is then presented. In the second part of the book, more advanced topics are progressively introduced: thermodynamic surfaces are used to describe equilibrium flow behavior, first-order Maxwell solid models are used to describe time-dependent flow behavior, descriptions of detonation shock waves in ideal and non-ideal explosives are provided, and lastly, a select group of current issues in shock wave physics are discussed in the final chapter.


Shock-Wave Phenomena and the Properties of Condensed Matter

Shock-Wave Phenomena and the Properties of Condensed Matter
Author: Gennady I. Kanel
Publisher: Springer Science & Business Media
Total Pages: 330
Release: 2013-06-29
Genre: Science
ISBN: 1475742827

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One of the main goals of investigations of shock-wave phenomena in condensed matter is to develop methods for predicting effects of explosions, high-velocity collisions, and other kinds of intense dynamic loading of materials and structures. Based on the results of international research conducted over the past 30 years, this book is addressed not only to experts in shock-wave physics, but also to interested representatives from adjacent fields of activity and to students who seek an introduction to the current issues.


Shock Waves in Condensed Matter

Shock Waves in Condensed Matter
Author: Y. M. Gupta
Publisher: Springer Science & Business Media
Total Pages: 922
Release: 2012-12-06
Genre: Science
ISBN: 1461322073

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The Fourth American Physical Society Topical Conference on Shock Waves in Condensed Matter was held in Spokane, Washington, July 22-25, 1985. Two hundred and fifty scientists and engineers representing thirteen countries registered at the conference. The countries represented included the United States of America, Australia, Canada, The People's Repub lic of China, France, India, Israel, Japan, Republic of China (Taiwan), United Kingdom, U. S. S. R, Switzerland and West Germany. One hundred and sixty-two technical papers, cov ering recent developments in shock wave and high pressure physics, were presented. All of the abstracts have been published in the September 1985 issue of the Bulletin of the American Physical Society. The topical conferences, held every two years since 1979, have become the principal forum for shock wave studies in condensed materials. Both formal and informal technical discussions regarding recent developments conveyed a sense of excitement. Consistent with the past conferences, the purpose of this conference was to bring together scientists and engineers studying the response of condensed matter to dynamic high pressures and temperatures. Papers covering experimental, theoretical, and numerical studies of con densed matter properties were presented. A noteworthy feature of this conference was the participation by several leading scientists engaged in static high pressure research. Donald Curran served as the Master of Ceremonies at the conference banquet, which was at tended by two hundred and seventy-five conference participants and guests including Dr. Samuel Smith, the new President of Washington State University. Dr.


Shock Compression of Condensed Matter - 1991

Shock Compression of Condensed Matter - 1991
Author: S.C. Schmidt
Publisher: Elsevier
Total Pages: 1103
Release: 2016-07-29
Genre: Science
ISBN: 1483291456

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The papers collected together in this volume constitute a review of recent research on the response of condensed matter to dynamic high pressures and temperatures. Inlcuded are sections on equations of state, phase transitions, material properties, explosive behavior, measurement techniques, and optical and laser studies. Recent developments in this area such as studies of impact and penetration phenomenology, the development of materials, especially ceramics and molecular dynamics and Monte Carlo simulations are also covered. These latest advances, in addition to the many other results and topics covered by the authors, serve to make this volume the most authoritative source for the shock wave physics community.


The Shocks Matter

The Shocks Matter
Author: Kristin J. Forbes
Publisher:
Total Pages: 56
Release: 2015
Genre:
ISBN:

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A major challenge for monetary policy has been predicting how exchange rate movements will impact inflation. We propose a new focus: incorporating the underlying shocks that cause exchange rate fluctuations when evaluating how these fluctuations 'pass through' into import and consumer prices. We show that in a standard open-economy model the relationship between exchange rates and prices depends on the shocks which cause the exchange rate to move. Then we develop an SVAR framework for a small open economy that relies on both short-run and long-run identification restrictions consistent with our theoretical model. Applying this framework to the United Kingdom, we find that the response of both import and consumer prices to exchange rate fluctuations depends on what caused the fluctuations. For example, exchange rate pass-through is relatively large in response to domestic monetary policy shocks, but smaller in response to domestic demand shocks. This framework helps explain why pass-through can change over time, including why sterling's post-crisis depreciation caused a sharper increase in prices than expected and sterling's recent appreciation has had a more muted effect.


Shock Waves in Condensed Matter - 1983

Shock Waves in Condensed Matter - 1983
Author: J.R. Asay
Publisher: Elsevier
Total Pages: 673
Release: 2012-12-02
Genre: Science
ISBN: 0444600175

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Shock Waves in Condensed Matter – 1983 covers the proceedings of the American Physical Society Topical Conference, held in Santa Fe, New Mexico on July 18-21, 1983. The book focuses on the response of matter to dynamic high pressure and temperature. The selection first elaborates on the review of theoretical calculations of phase transitions and comparisons with experimental results; theoretical and experimental studies of shock-compressed benzene and polybutene; and theory of the iron equation of state and melting curve to very high pressures. The text then ponders on nonhydrostatic effects in stress-wave induced phase transformation of calcite; Bauschinger effect model suitable for use in large computer codes; and strain rate sensitivity prediction for porous bed compaction. The manuscript takes a look at flaw nucleation and energetics of dynamic fragmentation, shock loading behavior of fused quartz, and aluminum damage simulation in high-velocity impact. Shock wave diagnostics by time-resolved infrared radiometry and non-linear Raman spectroscopy; Raman scattering temperature measurement behind a shock wave; and experiments and simulation on laser-driven shock wave evolution in aluminum targets are also discussed. The selection is a dependable reference for scientists and readers interested in the response of matter when exposed to dynamic high pressure and temperature.


The Shocks Matter

The Shocks Matter
Author: Kristin Forbes
Publisher:
Total Pages: 46
Release: 2018
Genre: Foreign exchange rates
ISBN:

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A major challenge for monetary policy is predicting how exchange rate movements will impact inflation. We propose a new focus: directly incorporating the underlying shocks that cause exchange rate fluctuations when evaluating how these fluctuations “pass through” to import and consumer prices. A standard open-economy model shows that the relationship between exchange rates and prices depends on the shocks which cause the exchange rate to move. We build on this to develop a structural Vector Autoregression (SVAR) framework for a small open economy and apply it to the UK. We show that prices respond differently to exchange rate movements based on what caused the movements. For example, exchange rate pass-through is low in response to domestic demand shocks and relatively high in response to domestic monetary policy shocks. This framework can improve our ability to estimate how pass-through can change over short periods of time. For example, it can explain why sterling’s post-crisis depreciation caused a sharper increase in prices than expected, while the effect of sterling’s 2013-15 appreciation was more muted. We also apply this framework to forecast the extent of pass-through from sterling’s sharp depreciation corresponding to the UK’s vote to leave the European Union.