The Great Inflation in the United States and the United
... colonies in the New World, Britain has been a major source of our economic and political thought.” The Great Inflation period is another example of this influence, as the predominant U.S. policy thinking during the 1970s was patterned on a U.K. precedent. In Section 2 we discuss why we emphasize doc ...
... colonies in the New World, Britain has been a major source of our economic and political thought.” The Great Inflation period is another example of this influence, as the predominant U.S. policy thinking during the 1970s was patterned on a U.K. precedent. In Section 2 we discuss why we emphasize doc ...
A Proposal for Supplying the Nations with the necessary Means in a
... access to the account, or alternatively by giving a direct debit mandate, or by giving a mandate to charge your credit card. All of these IT-ways of transferring non-cash money contribute considerably to accelerating the circulation of money. This has the same effect as if more money was circulating ...
... access to the account, or alternatively by giving a direct debit mandate, or by giving a mandate to charge your credit card. All of these IT-ways of transferring non-cash money contribute considerably to accelerating the circulation of money. This has the same effect as if more money was circulating ...
The Structural Dynamics of U.S. Output and Inflation: What Explains
... Sargent 2001, 2005, Boivin and Giannoni 2006, Lubik and Schorfheide 2004). However, the U.S. economy has also witnessed a number of important changes that may have altered the way consumers and firms responded to economic disturbances. For example, the labor productivity boom of the 1990s was differ ...
... Sargent 2001, 2005, Boivin and Giannoni 2006, Lubik and Schorfheide 2004). However, the U.S. economy has also witnessed a number of important changes that may have altered the way consumers and firms responded to economic disturbances. For example, the labor productivity boom of the 1990s was differ ...
Inflation and monetary policy in the twentieth century
... Another explanation of the high inflation of the 1970s that falls into what we call the people category appears in Clarida, Gali, and Gertler (1998). They characterize monetary policy using a framework advocated by Taylor (1993): Fed policy implements a “Taylor rule” under which it raises interest r ...
... Another explanation of the high inflation of the 1970s that falls into what we call the people category appears in Clarida, Gali, and Gertler (1998). They characterize monetary policy using a framework advocated by Taylor (1993): Fed policy implements a “Taylor rule” under which it raises interest r ...
Academia de Studii Economice Şcoala Doctorală de Finanţe
... • There are causality relations between the majority of the variables in the study (BZR, M1R, M2R) and the nongovernmental credit, which seems to indicate the presence of the credit channel in the monetary policy mechanism; • The exchange rate has an influence well showed by the test’s results both ...
... • There are causality relations between the majority of the variables in the study (BZR, M1R, M2R) and the nongovernmental credit, which seems to indicate the presence of the credit channel in the monetary policy mechanism; • The exchange rate has an influence well showed by the test’s results both ...
... solved. Moreover, uncertainties regarding debt sustainability issues and the impact of a possible fiscal consolidation persist. Furthermore, rapid increases in oil prices carry the potential to slow down global economic growth. All these factors continue to feed downside risks regarding the pace of ...
Essays on Monetary and Exchange Rate Effects in India
... I am truly indebted to my Dissertation Committee chair, Professor Ramkishen Rajan, who guided me at every stage of the process of this PhD. This dissertation is the product of his patience as he went through drafts after drafts reviewing each and every sentence of the dissertation to ensure that I s ...
... I am truly indebted to my Dissertation Committee chair, Professor Ramkishen Rajan, who guided me at every stage of the process of this PhD. This dissertation is the product of his patience as he went through drafts after drafts reviewing each and every sentence of the dissertation to ensure that I s ...
Commitment versus Discretion in a Political Economy Model of David S. Miller
... previously. Trouble arises when the monetary union is composed of heterogeneous countries. For example, if the central bank cares only about the large countries in the union, the small countries will behave as if they have price commitment. This explains the behavior of Greece. It took advantage of ...
... previously. Trouble arises when the monetary union is composed of heterogeneous countries. For example, if the central bank cares only about the large countries in the union, the small countries will behave as if they have price commitment. This explains the behavior of Greece. It took advantage of ...
This PDF is a selection from a published volume from
... can respond to sudden economic developments—there may nonetheless be an important role for fiscal stabilization policy when a binding zero bound constrains what can be done through monetary policy. Here we consider this issue by analyzing optimal fiscal policy in a setting that has been contrived to ...
... can respond to sudden economic developments—there may nonetheless be an important role for fiscal stabilization policy when a binding zero bound constrains what can be done through monetary policy. Here we consider this issue by analyzing optimal fiscal policy in a setting that has been contrived to ...
The Bitcoin Revolution
... the system’s “block chain,” which is a public ledger, there is no anonymity at all of this nature. The public ledger does not, however, associate a particular Bitcoin transactor with any specific person (or group of persons). It might be possible, therefore, for an individual to keep secret his owne ...
... the system’s “block chain,” which is a public ledger, there is no anonymity at all of this nature. The public ledger does not, however, associate a particular Bitcoin transactor with any specific person (or group of persons). It might be possible, therefore, for an individual to keep secret his owne ...
Long-term debt pricing and monetary policy transmission
... sequence of future short-term interest rates. The question is whether this matters for aggregate demand management policy. Can …nancial market expectations hinder the e¢ cacy of monetary policy? And to what extent does the maturity structure of the public debt qualify the responses to these question ...
... sequence of future short-term interest rates. The question is whether this matters for aggregate demand management policy. Can …nancial market expectations hinder the e¢ cacy of monetary policy? And to what extent does the maturity structure of the public debt qualify the responses to these question ...
Monetary Policy Switching and Indeterminacy
... -sunspot- disturbances, and hence, may be affected by extrinsic volatility. Since limiting inflation volatility is a well-accepted objective for monetary policy, this extrinsic volatility that is not under policymaker’s control is undesirable from a policy perspective. Consequently, determinacy is a ...
... -sunspot- disturbances, and hence, may be affected by extrinsic volatility. Since limiting inflation volatility is a well-accepted objective for monetary policy, this extrinsic volatility that is not under policymaker’s control is undesirable from a policy perspective. Consequently, determinacy is a ...
2 The Case for Price Stability Abstract Marvin Goodfriend and Robert G. King*
... (gðsÞ) are possibly complicated functions of s rather than governed by particular distributions. We do so because this makes it possible to formulate the general decision problems more simply and to exposit general results more easily. The government is required to finance its purchases of output wi ...
... (gðsÞ) are possibly complicated functions of s rather than governed by particular distributions. We do so because this makes it possible to formulate the general decision problems more simply and to exposit general results more easily. The government is required to finance its purchases of output wi ...
NBER WORKING PAPER SERIES VARIETY Florin O. Bilbiie
... wedges over time, but this results in our framework in a path for its instrument (inflation) that is close to constant.2 We conclude our analysis by calculating the welfare costs (in units of steady-state consumption) of perfectly stabilizing prices in the long and in the short run, and we find that ...
... wedges over time, but this results in our framework in a path for its instrument (inflation) that is close to constant.2 We conclude our analysis by calculating the welfare costs (in units of steady-state consumption) of perfectly stabilizing prices in the long and in the short run, and we find that ...
How Are Inflation Expectations Formed by Consumers, Economists
... trap, the monetary base is almost completely ineffective and therefore unable to affect output and prices in an economy. The solution to this problem is extremely simple; an increase in the money supply in the current and future periods will raise prices in the proprotionally. There is no correspon ...
... trap, the monetary base is almost completely ineffective and therefore unable to affect output and prices in an economy. The solution to this problem is extremely simple; an increase in the money supply in the current and future periods will raise prices in the proprotionally. There is no correspon ...
INFLATION INERTIA AND MONETARY POLICY SHOCKS
... if its past levels, or past expectations about its current level, have a direct influence on its current level. As opposed to this, a variable’s persistence can be generated by various sources, only one of which is the inertia of the given variable. It is important to emphasize that a variable can th ...
... if its past levels, or past expectations about its current level, have a direct influence on its current level. As opposed to this, a variable’s persistence can be generated by various sources, only one of which is the inertia of the given variable. It is important to emphasize that a variable can th ...
Nominal GDP Targeting as an Alternative Framework for Monetary
... back to full employment, which is the same situation as in the classic Keynesian liquidity trap. The difference lies in the fact that in Krugman‘s model not just fiscal, but also monetary policy can revive the economy. To achieve the required negative real interest rate, the economy needs expected i ...
... back to full employment, which is the same situation as in the classic Keynesian liquidity trap. The difference lies in the fact that in Krugman‘s model not just fiscal, but also monetary policy can revive the economy. To achieve the required negative real interest rate, the economy needs expected i ...
Working Paper No. 86 - Levy Economics Institute of Bard College
... based on barter exchange in formal markets (the fairground barter) which predates the ...
... based on barter exchange in formal markets (the fairground barter) which predates the ...
analysis and interpretation of the us monetary policy during the dot
... problems and does not guarantee the necessary level of impartiality, being the researchers (in this case us), too involved in the situation they are considering. We acknowledge this risk but we also recognize that to study such a topic, without considering the current developments would be a poor an ...
... problems and does not guarantee the necessary level of impartiality, being the researchers (in this case us), too involved in the situation they are considering. We acknowledge this risk but we also recognize that to study such a topic, without considering the current developments would be a poor an ...
On the Welfare Effects of Credit
... for the set of optimal allocations subject to technological and incentive feasibility constraints. The welfare implications of inflation and credit arrangements are significantly different under the optimal trading mechanism. First, deviation from the Friedman rule is not necessarily sub-optimal. B ...
... for the set of optimal allocations subject to technological and incentive feasibility constraints. The welfare implications of inflation and credit arrangements are significantly different under the optimal trading mechanism. First, deviation from the Friedman rule is not necessarily sub-optimal. B ...
"Foreign Reserves and International Liquidity Under the Bretton Woods System"
... out of which credit could be granted to member countries (in addition to national central bank reserves) in order to finance temporary balance of payments deficits. But the Bretton Woods conference did not provide a definition of reserve adequacy. Quotas at the fund, which set the amount a country c ...
... out of which credit could be granted to member countries (in addition to national central bank reserves) in order to finance temporary balance of payments deficits. But the Bretton Woods conference did not provide a definition of reserve adequacy. Quotas at the fund, which set the amount a country c ...
Submissions on EMU from leading academics
... 7. Discretionary fiscal policy may be an effective tool for stabilising the economy, albeit a weak one, but the longer run effects of using it may include reductions in the sustainable level of output. Conditional experimental estimates of the effects of fiscal policy6 suggest that the multiplier ef ...
... 7. Discretionary fiscal policy may be an effective tool for stabilising the economy, albeit a weak one, but the longer run effects of using it may include reductions in the sustainable level of output. Conditional experimental estimates of the effects of fiscal policy6 suggest that the multiplier ef ...
understanding the roles of money, or when is the friedman rule
... Freeman (1993) also attempts to explain why there is a difference between optimal policy prescriptions in the ILRA and OG setups. He studies an OG speciÞcation with a bequest motive that may or may not be active. With an operative bequest motive, the OG setup exactly mimics the ILRA model and Freema ...
... Freeman (1993) also attempts to explain why there is a difference between optimal policy prescriptions in the ILRA and OG setups. He studies an OG speciÞcation with a bequest motive that may or may not be active. With an operative bequest motive, the OG setup exactly mimics the ILRA model and Freema ...
Lift-off Uncertainty: What Can We Infer From the FOMC`s Summary of
... suggests that promises to keep interest rates low after the economy recovers have stimulative effects today, through higher inflation expectations. However, time-consistency issues are key in this context. Krugman (1998) points out that this policy involves a commitment to inflate beyond the central ...
... suggests that promises to keep interest rates low after the economy recovers have stimulative effects today, through higher inflation expectations. However, time-consistency issues are key in this context. Krugman (1998) points out that this policy involves a commitment to inflate beyond the central ...