Showing papers by "Mardi Dungey published in 1998"

Prospects for Output and Employment Growth with Steady Inflation

Abstract: Monetary policy affects both real variables, such as employment, unemployment and output and nominal variables such as nominal interest and inflation rates. For close to a decade the principal focus of monetary policy has been on inflation. During a recession, or when one appears imminent, the state of real variables such as GDP growth has been a paramount consideration, but at other times inflation control has been the major objective. We argue that this concentration on inflation has not been misplaced, indeed we suggest that it should be more detailed than it has been. (This abstract was borrowed from another version of this item.)

Prospects for Output and Employment Growth with Steady Inflation

Abstract: Monetary policy affects both real variables, such as employment, unemployment and output and nominal variables such as nominal interest and inflation rates. For close to a decade the principal focus of monetary policy has been on inflation. During a recession, or when one appears imminent, the state of real variables such as GDP growth has been a paramount consideration, but at other times inflation control has been the major objective. We argue that this concentration on inflation has not been misplaced, indeed we suggest that it should be more detailed than it has been.

Credit Limits and Long-Term Covered Interest Arbitrage

Abstract: Covered interest parity seems to hold more strongly for short-term assets than for long-term assets. Credit limits have been suggested as a possible explanation of this phenomenon. This paper contests that hypothesis.

Why Tax Foreign Exchange? Comments on a Proposed Tobin Tax

Abstract: At various times since Tobin floated the idea of a tax on foreign exchange transactions the concept has been revisited - particularly in times of financial market turmoil when it has been proposed as a means of reducing exchange rate volatility. Recently, Harcourt (1997) suggested a further refinement of the Tobin tax to apply only to 'speculative transactions'. This paper identifies three types of foreign exchange transactions - informed trades, liquidity trades and speculative trades - and highlights the difficulties in differentiating between these types of transactions. It is not clear whether some (or what) proportion of speculative trades is of benefit to the economy. Further, the undesirability of exchange rate volatility itself has not been established. In particular, the costs and benefits of exchange rate volatility have not been compared with the alternatives of interest rate volatility under a fixed exchange rate regime or the market innovations resulting from the imposition of a Tobin tax.

Why tax foreign exchange? comments on a proposed tobin tax

Abstract: At various times since Tobin floated the idea of a tax on foreign exchange transactions the concept has been revisited - particularly in times of financial market turmoil when it has been proposed as a means of reducing exchange rate volatility. Recently, Harcourt (1997) suggested a further refinement of the Tobin tax to apply only to 'speculative transactions'. This paper identifies three types of foreign exchange transactions - informed trades, liquidity trades and speculative trades - and highlights the difficulties in differentiating between these types of transactions. It is not clear whether some (or what) proportion of speculative trades is of benefit to the economy. Further, the undesirability of exchange rate volatility itself has not been established. In particular, the costs and benefits of exchange rate volatility have not been compared with the alternatives of interest rate volatility under a fixed exchange rate regime or the market innovations resulting from the imposition of a Tobin tax.