Could the United States Experience Hyperinflation?
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2015 Financials
CONTENTS ANNUAL REPORT 2015 AND 2014 6 CHAIRMAN’S STATEMENT 9 DESCRIPTION OF THE COMPANY 11 DIRECTORS 12 INVESTMENT PERFORMANCE 17 DESCRIPTION OF MAJOR INVESTMENTS 31 FINANCIAL STATEMENTS 5 MONEDA CHILE FUND LIMITED INVESTMENT FUND CHAIRMAN’S STATEMENT Dear Investors: I would like to report on the results of Moneda Chile Fund in the fiscal year ending December 31, 2015. In 2015, the external setting was again adverse for Latin America: growth continued to shift from emerging countries to developed countries; fears about the Chinese economy were on the rise; there was an excess supply on the oil and other commodities markets; and there was a real possibility of the Fed putting an end to its monetary stimulus. This led to a crash in the prices of the raw materials exported by the region. The region’s economies also faced a decline in important external financial conditions. So, the growth of Latin America in 2015 was estimated to be -0.3%. In Chile, the economy grew 2.1% in 2015, similar to the growth in 2014 (1.9%). The worsening outlook abroad contributed to the slow growth, with a drop in the price of copper from US$3.11/lb in 2014 to US$2.50/lb in 2015. Also adversely impacting were the rise in taxes under the tax reform passed the previous year and the great uncertainty associated with the proposed labor reforms and new constitution. This prolonged the low level of confidence seen in the private sector that prevented a recovery in domestic demand and braked the export effort driven by the strong real devaluation in the peso (14.4%). -
Money Supply ECON 40364: Monetary Theory & Policy
Money Supply ECON 40364: Monetary Theory & Policy Eric Sims University of Notre Dame Fall 2017 1 / 59 Readings I Mishkin Ch. 3 I Mishkin Ch. 14 I Mishkin Ch. 15, pg. 341-348 2 / 59 Money I Money is defined as anything that is accepted as payments for goods or services or in the repayment of debts I Money serves three functions: 1. Medium of exchange 2. Unit of account 3. Store of value I Any asset can serve as a store of value (e.g. house, land, stocks, bonds), but most assets do not perform the first two roles of money I Money is a stock concept { how much money you have (in your wallet, in the bank) at a given point in time. Income is a flow concept 3 / 59 Roles of Money I Medium of exchange role is the most important role of money: I Eliminates need for barter, reduces transactions costs associated with exchange, and allows for greater specialization I Unit of account is important (particularly in a diverse economy), though anything could serve as a unit of account I As a store of value, money tends to be crummy relative to other assets like stocks and houses, which offer some expected return over time I An advantage money has as a store of value is its liquidity I Liquidity refers to ease with which an asset can be converted into a medium of exchange (i.e. money) I Money is the most liquid asset because it is the medium of exchange I If you held all your wealth in housing, and you wanted to buy a car, you would have to sell (liquidate) the house, which may not be easy to do, may take a while, and may involve selling at a discount if you must do it quickly 4 / 59 Evolution of Money and Payments I Commodity money: money made up of precious metals or other commodities I Difficult to carry around, potentially difficult to divide, price may fluctuate if precious metal or commodity has consumption value independent of medium of exchange role I Paper currency: pieces of paper that are accepted as medium of exchange. -
Compañía Cervecerías Unidas S.A. and Subsidiaries
Compañía Cervecerías Unidas S.A. y subsidiarias (Cifras expresadas en miles de pesos chilenos) COMPAÑÍA CERVECERÍAS UNIDAS S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS (Figures expressed in thousands of Chilean pesos) As of and for the year ended December 31, 2018 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and shareholders of Compañía Cervecerías Unidas S.A. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated statements of financial position of Compañía Cervecerías Unidas S.A. and its subsidiaries (the “Company”) as of December 31, 2018 and 2017, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2018, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December, 31, 2018 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. -
The Monetary and Fiscal History of Bolivia: 1960–2015
WORKING PAPER · NO. 2018-67 The Monetary and Fiscal History of Bolivia: 1960–2015 Timothy J. Kehoe, Carlos Gustavo Machicado, and José Peres Cajías AUGUST 2018 1126 E. 59th St, Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu Federal Reserve Bank of Minneapolis August 2018 First version: August 2010 The Monetary and Fiscal History of Bolivia, 1960–2015* Timothy J. Kehoe University of Minnesota, Federal Reserve Bank of Minneapolis, and National Bureau of Economic Research Carlos Gustavo Machicado Instituto de Estudios Avanzados en Desarrollo (INESAD) José Peres-Cajías Escuela de la Producción y la Competitividad, Universidad Católica Boliviana “San Pablo” ABSTRACT___________________________________________________________________ After the economic reforms that followed the National Revolution of the 1950s, Bolivia seemed positioned for sustained growth. Indeed, it achieved unprecedented growth during 1960–1977. Mistakes in economic policies, especially the rapid accumulation of debt and a fixed exchange rate policy during the 1970s, led to a debt crisis that began in 1977. From 1977 to 1986, Bolivia lost almost all the gains in GDP per capita that it had achieved since 1960. In 1986, Bolivia started to grow again, interrupted only by the financial crisis of 1998–2002, which was the result of a drop in the availability of external financing. Bolivia has grown since 2002, but government policies since 2006 are reminiscent of the policies of the 1970s that led to the debt crisis, in particular, the accumulation of external debt and the -
Sudden Stops and Currency Drops: a Historical Look
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: The Decline of Latin American Economies: Growth, Institutions, and Crises Volume Author/Editor: Sebastian Edwards, Gerardo Esquivel and Graciela Márquez, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-18500-1 Volume URL: http://www.nber.org/books/edwa04-1 Conference Date: December 2-4, 2004 Publication Date: July 2007 Title: Sudden Stops and Currency Drops: A Historical Look Author: Luis A. V. Catão URL: http://www.nber.org/chapters/c10658 7 Sudden Stops and Currency Drops A Historical Look Luis A. V. Catão 7.1 Introduction A prominent strand of international macroeconomics literature has re- cently devoted considerable attention to what has been dubbed “sudden stops”; that is, sharp reversals in aggregate foreign capital inflows. While there seems to be insufficient consensus on what triggers such reversals, two consequences have been amply documented—namely, exchange rate drops and downturns in economic activity, effectively constricting domes- tic consumption smoothing. This literature also notes, however, that not all countries respond similarly to sudden stops: whereas ensuing devaluations and output contractions are often dramatic among emerging markets, fi- nancially advanced countries tend to be far more impervious to those dis- ruptive effects.1 These stylized facts about sudden stops have been based entirely on post-1970 evidence. Yet, periodical sharp reversals in international capital flows are not new phenomena. Leaving aside the period between the 1930s Depression and the breakdown of the Bretton-Woods system in 1971 (when stringent controls on cross-border capital flows prevailed around Luis A. -
Central Bank Interventions, Communication and Interest Rate Policy in Emerging European Economies
CENTRAL BANK INTERVENTIONS, COMMUNICATION AND INTEREST RATE POLICY IN EMERGING EUROPEAN ECONOMIES BALÁZS ÉGERT CESIFO WORKING PAPER NO. 1869 CATEGORY 6: MONETARY POLICY AND INTERNATIONAL FINANCE DECEMBER 2006 An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • from the RePEc website: www.RePEc.org • from the CESifo website: www.CESifo-group.deT T CESifo Working Paper No. 1869 CENTRAL BANK INTERVENTIONS, COMMUNICATION AND INTEREST RATE POLICY IN EMERGING EUROPEAN ECONOMIES Abstract This paper analyses the effectiveness of foreign exchange interventions in Croatia, the Czech Republic, Hungary, Romania, Slovakia and Turkey using the event study approach. Interventions are found to be effective only in the short run when they ease appreciation pressures. Central bank communication and interest rate steps considerably enhance their effectiveness. The observed effect of interventions on the exchange rate corresponds to the declared objectives of the central banks of Croatia, the Czech Republic, Hungary and perhaps also Romania, whereas this is only partially true for Slovakia and Turkey. Finally, interventions are mostly sterilized in all countries except Croatia. Interventions are not much more effective in Croatia than in the other countries studied. This suggests that unsterilized interventions do not automatically influence the exchange rate. JEL Code: F31. Keywords: central bank intervention, foreign exchange intervention, verbal intervention, central bank communication, Central and Eastern Europe, Turkey. Balázs Égert Austrian National Bank Foreign Research Division Otto-Wagner-Platz 3 1090 Vienna Austria [email protected] I would like to thank Harald Grech and Zoltán Walko for useful discussion and two anonymous referees for very helpful comments and suggestions. -
Deflation and Monetary Policy in a Historical Perspective: Remembering the Past Or Being Condemned to Repeat It?
NBER WORKING PAPER SERIES DEFLATION AND MONETARY POLICY IN A HISTORICAL PERSPECTIVE: REMEMBERING THE PAST OR BEING CONDEMNED TO REPEAT IT? Michael D. Bordo Andrew Filardo Working Paper 10833 http://www.nber.org/papers/w10833 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2004 This paper was prepared for the 40th Panel Meeting of Economic Policy in Amsterdam (October 2004). The authors would like to thank Jeff Amato, Palle Andersen, Claudio Borio, Gauti Eggertsson, Gabriele Galati, Craig Hakkio, David Lebow and Goetz von Peter, Patrick Minford, Fernando Restoy, Lars Svensson, participants at the 3rd Annual BIS Conference as well as seminar participants at the Bank of Canada and the International Monetary Fund for helpful discussions and comments. We also thank Les Skoczylas and Arturo Macias Fernandez for expert assistance. The views expressed are those of the authors and not necessarily those of the Bank for International Settlements or the National Bureau of Economic Research. The views expressed herein are those of the author(s) and not necessarily those of the National Bureau of Economic Research. ©2004 by Michael D. Bordo and Andrew Filardo. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Deflation and Monetary Policy in a Historical Perspective: Remembering the Past or Being Condemned to Repeat It? Michael D. Bordo and Andrew Filardo NBER Working Paper No. 10833 October 2004 JEL No. E31, N10 ABSTRACT What does the historical record tell us about how to conduct monetary policy in a deflationary environment? We present a broad cross-country historical study of deflation over the past two centuries in order to shed light on current policy challenges. -
Hyperinflation in Venezuela
POLICY BRIEF recovery can be possible without first stabilizing the explo- 19-13 Hyperinflation sive price level. Doing so will require changing the country’s fiscal and monetary regimes. in Venezuela: A Since late 2018, authorities have been trying to control the price spiral by cutting back on fiscal expenditures, contracting Stabilization domestic credit, and implementing new exchange rate poli- cies. As a result, inflation initially receded from its extreme Handbook levels, albeit to a very high and potentially unstable 30 percent a month. But independent estimates suggest that prices went Gonzalo Huertas out of control again in mid-July 2019, reaching weekly rates September 2019 of 10 percent, placing the economy back in hyperinflation territory. Instability was also reflected in the premium on Gonzalo Huertas was research analyst at the Peterson Institute foreign currency in the black market, which also increased for International Economics. He worked with C. Fred Bergsten in July after a period of relative calm in previous months. Senior Fellow Olivier Blanchard on macroeconomic theory This Policy Brief describes a feasible stabilization plan and policy. Before joining the Institute, Huertas worked as a researcher at Harvard University for President Emeritus and for Venezuela’s extreme inflation. It places the country’s Charles W. Eliot Professor Lawrence H. Summers, producing problems in context by outlining the economics behind work on fiscal policy, and for Minos A. Zombanakis Professor Carmen Reinhart, focusing on exchange rate interventions. hyperinflations: how they develop, how they disrupt the normal functioning of economies, and how other countries Author’s Note: I am grateful to Adam Posen, Olivier Blanchard, across history have designed policies to overcome them. -
Econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Morales, Juan Antonio Working Paper Bolivian trade and development , 1952 - 1987 Documento de Trabajo, No. 02/88 Provided in Cooperation with: Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana Suggested Citation: Morales, Juan Antonio (1988) : Bolivian trade and development , 1952 - 1987, Documento de Trabajo, No. 02/88, Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), La Paz This Version is available at: http://hdl.handle.net/10419/72932 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Documento de Trabajo No. 02/88 Mayo 1988 Bolivian Trade and Development, 1952-1987 by Juan Antonio Morales Bolivian Trade and Development, 1952-1987 by Juan Antonio Morales Universidad Católica Boliviana The most extreme example of the Latin American crisis of the 1980s is given by the Bolivian case. -
Inflation Vs. Deflation Which Is More Likely Part 2.Mp4
Inflation vs. deflation Which is more likely Part 2.mp4 Speaker1: As discussed last month, many economic experts believe that the US and other related countries like Canada are more likely to face deflation than inflation in the years to come. These experts point to the theory of debt deflation. When debts are excessive and people try to reduce their debts by selling assets, it puts downward pressure on prices and can result in deflation. Deflation is viewed by many economists as more harmful to the economy. Hi, I'm Michael Chugh. These low interest rates we see now on US 10 year bonds of around two percent prove that many savvy investors are betting that deflation is very possible. But we also hear other investors and economists worrying about the future high levels of inflation. Many say the unprecedented increase in monetary base in the US, which has increased almost fivefold from eight hundred forty three billion in August, two thousand eight to four trillion. Currently, the monetary base consists of all the notes in circulation and in bank vaults. It also includes the reserves that the banks have on deposit. The US Federal Reserve, the US Federal Reserve increased the monetary base mainly through its series of financial rescue programs in 2008 and then by its quantitative easing programs in 2009 through 2014. The monetary base is only a fraction of the money supply. The money supply, or M2, consists of all the notes in circulation plus all the money in bank accounts. Speaker1: The concern is that a large increase in monetary base can cause a big increase in money supply because of the multiplier effect. -
Econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Morales, Juan Antonio Working Paper The end of the Bolivian hyperinflation Documento de Trabajo, No. 03/88 Provided in Cooperation with: Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana Suggested Citation: Morales, Juan Antonio (1988) : The end of the Bolivian hyperinflation, Documento de Trabajo, No. 03/88, Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), La Paz This Version is available at: http://hdl.handle.net/10419/72876 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Documento de Trabajo No. 03/88 Agosto 1988 The End of the Bolivian Hyperinflation by Juan Antonio Morales The End of the Bolivian Hyperinflation by Juan Antonio Morales Universidad Católica Boliviana I. -
The Monetary Transmission Mechanism
No. 06‐1 The Monetary Transmission Mechanism Peter N. Ireland Abstract: The monetary transmission mechanism describes how policy‐induced changes in the nominal money stock or the short‐term nominal interest rate impact real variables such as aggregate output and employment. Specific channels of monetary transmission operate through the effects that monetary policy has on interest rates, exchange rates, equity and real estate prices, bank lending, and firm balance sheets. Recent research on the transmission mechanism seeks to understand how these channels work in the context of dynamic, stochastic, general equilibrium models. JEL Classifications: E52 Peter N. Ireland is Professor of Economics at Boston College, a visiting scholar at the Federal Reserve Bank of Boston, and a research associate at the NBER. His email address and web site are [email protected] and http://www2.bc.edu/~irelandp, respectively. This paper was prepared for The New Palgrave Dictionary of Economics, Second Edition, edited by Lawrence Blume and Steven Durlauf, Hampshire: Palgrave Macmillan, Ltd. This paper, which may be revised, is available on the web site of the Federal Reserve Bank of Boston at http://www.bos.frb.org/economic/wp/index.htm. The opinions, findings, and conclusions or recommendations expressed in this paper are solely those of the author and do not reflect official positions of the Federal Reserve Bank of Boston, the Federal Reserve System, the National Bureau of Economic Research, or the National Science Foundation. I would like to thank Steven Durlauf and Jeffrey Fuhrer for extremely helpful comments and suggestions. Some of this work was completed while I was visiting the Research Department at the Federal Reserve Bank of Boston; I would like to thank the Bank and its staff for their hospitality and support.