Entire Unit Module - Tippie College of Business
... The discount rate is the rate that depository institutions are charged on the borrowings of reserves from the Fed. Federal funds may be defined as the reserves of the depository institutions in the federal reserve banks. These funds are now frequently borrowed by commercial banks on a short-term bas ...
... The discount rate is the rate that depository institutions are charged on the borrowings of reserves from the Fed. Federal funds may be defined as the reserves of the depository institutions in the federal reserve banks. These funds are now frequently borrowed by commercial banks on a short-term bas ...
Future Equity Patterns and Baby Boomer Retirements
... may be an inaccurate representation of capital transformation and thus investment—factors that are critical in determining the price of capital in the model. This assumption also affects aggregate output, and thereby the value added from capital. A second assumption that contributes to the large pre ...
... may be an inaccurate representation of capital transformation and thus investment—factors that are critical in determining the price of capital in the model. This assumption also affects aggregate output, and thereby the value added from capital. A second assumption that contributes to the large pre ...
AP® Economics - AP Central
... and demand to the AD/AS model. But when the course turns to more esoteric topics, even those that continue to rely on supply and demand analysis, many students hit the wall. For example, some economics teachers find it challenging to explain to their classes the difference between the money market a ...
... and demand to the AD/AS model. But when the course turns to more esoteric topics, even those that continue to rely on supply and demand analysis, many students hit the wall. For example, some economics teachers find it challenging to explain to their classes the difference between the money market a ...
Sense and Nonsense About Deflation
... economy and the consequent rising demand for money could only be accommodated if the price level fell. Hence, under certain conditions, the price level would display no particular tendency to either rise or fall over long periods of time in a Gold Standard regime. Likewise periods of rising prices w ...
... economy and the consequent rising demand for money could only be accommodated if the price level fell. Hence, under certain conditions, the price level would display no particular tendency to either rise or fall over long periods of time in a Gold Standard regime. Likewise periods of rising prices w ...
The Business Cycle Approach to Equity Sector Investing
... Recession phase The recession phase has historically been the shortest, lasting slightly less than a year on average—and the broader market has performed poorly during this phase (roughly –15% average annual return). As economic growth stalls and contracts, sectors that are more economically sensiti ...
... Recession phase The recession phase has historically been the shortest, lasting slightly less than a year on average—and the broader market has performed poorly during this phase (roughly –15% average annual return). As economic growth stalls and contracts, sectors that are more economically sensiti ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... Taiwan has held almost annually in recent years, have caused Taiwan to degenerate into a society that lacks any consensus or harmony. The switch in the ruling party from the KMT to the DPP (Democratic Progressive Party) for the first time in 2000 only further complicated the situation. KMT and DPP l ...
... Taiwan has held almost annually in recent years, have caused Taiwan to degenerate into a society that lacks any consensus or harmony. The switch in the ruling party from the KMT to the DPP (Democratic Progressive Party) for the first time in 2000 only further complicated the situation. KMT and DPP l ...
apers g P orkin al Bank W
... instability. 1 Episodes of asset price booms are seen by many as raising the risk of a future sharp “correction” of prices, which could have immediate repercussions on the stability of financial institutions. Indeed, many observers have argued that property-price collapses have historically played a ...
... instability. 1 Episodes of asset price booms are seen by many as raising the risk of a future sharp “correction” of prices, which could have immediate repercussions on the stability of financial institutions. Indeed, many observers have argued that property-price collapses have historically played a ...
Kiss me deadly: From Finnish great depression to great recession
... transmission by the ravaged domestic financial system and the shocks originating within it, the collapse of Finnish–Soviet trade would have had a considerably smaller impact on Finnish GDP. It was the eponymous “deadly kiss” of the financial sector that turned the Finnish economy into a true film n ...
... transmission by the ravaged domestic financial system and the shocks originating within it, the collapse of Finnish–Soviet trade would have had a considerably smaller impact on Finnish GDP. It was the eponymous “deadly kiss” of the financial sector that turned the Finnish economy into a true film n ...
Intermediate Accounting
... company uses in the normal operations of its business. • To be included in this category, an asset must have three characteristics: • The asset must be held for use in operations and not for investment. This characteristic does not imply that the asset must be continuously used. For example, the fur ...
... company uses in the normal operations of its business. • To be included in this category, an asset must have three characteristics: • The asset must be held for use in operations and not for investment. This characteristic does not imply that the asset must be continuously used. For example, the fur ...
Adverse Selection, Liquidity, and Market Breakdown
... The equilibrium price of the risky asset is equal to the lesser of two amounts: the discounted value of ...
... The equilibrium price of the risky asset is equal to the lesser of two amounts: the discounted value of ...
lesson 6
... thereby increasing output. (B) In the short run, what happens to the price level? Explain why. The price level increases because the increase in demand can only be met if firms have the incentive to produce more. An increasing price level provides this incentive. (C) In the short run, what happens t ...
... thereby increasing output. (B) In the short run, what happens to the price level? Explain why. The price level increases because the increase in demand can only be met if firms have the incentive to produce more. An increasing price level provides this incentive. (C) In the short run, what happens t ...
IOSR Journal Of Humanities And Social Science (JHSS)
... of inflation control is also recognized, since inflation is intrinsically and directly associated with macro economic instability; a situation, which is often sustained by persistent influx of excess money or credit. According to Fisher (1996), “the fundamental task of the Central Bank is to preserv ...
... of inflation control is also recognized, since inflation is intrinsically and directly associated with macro economic instability; a situation, which is often sustained by persistent influx of excess money or credit. According to Fisher (1996), “the fundamental task of the Central Bank is to preserv ...
Financial Innovation, Collateral and Investment
... the same high levels. But when the value of the underlying instrument falls to zero, CDS trading must come to an end by definition. This discontinuity can cause robust non-existence. ...
... the same high levels. But when the value of the underlying instrument falls to zero, CDS trading must come to an end by definition. This discontinuity can cause robust non-existence. ...
EC 102.07-08-09 Exercises for Chapter 33 SPRING 2006 1. Ceteris
... a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or s ...
... a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or s ...
Monetary Policy in the 2008-2009 Recession
... banks can directly replace the intermediation formerly provided by the private market. Accordingly, after the FOMC’s reduction of the funds rate to near zero in December 2008, many policymakers began to characterize monetary policy in terms of financial intermediation, that is, in terms of the Fed’s ...
... banks can directly replace the intermediation formerly provided by the private market. Accordingly, after the FOMC’s reduction of the funds rate to near zero in December 2008, many policymakers began to characterize monetary policy in terms of financial intermediation, that is, in terms of the Fed’s ...
Lecture 11 Monetary and Fiscal Policy
... and makes borrowing more expensive, which discourages spending on investment goods. • This decrease in investment spending means a smaller quantity of goods and services demanded. ...
... and makes borrowing more expensive, which discourages spending on investment goods. • This decrease in investment spending means a smaller quantity of goods and services demanded. ...
Monetary Policy in the 2008–2009 Recession
... banks can directly replace the intermediation formerly provided by the private market. Accordingly, after the FOMC’s reduction of the funds rate to near zero in December 2008, many policymakers began to characterize monetary policy in terms of financial intermediation, that is, in terms of the Fed’s ...
... banks can directly replace the intermediation formerly provided by the private market. Accordingly, after the FOMC’s reduction of the funds rate to near zero in December 2008, many policymakers began to characterize monetary policy in terms of financial intermediation, that is, in terms of the Fed’s ...
Non-Stationarity and Instability in Small Open
... from the unit coefficient on lagged net foreign assets in (7). Temporary innovations have, therefore, permanent effects; the endogenous variables wander arbitrarily far from their starting values. This also means that the unconditional second moments, which are often used in business cycle analysis ...
... from the unit coefficient on lagged net foreign assets in (7). Temporary innovations have, therefore, permanent effects; the endogenous variables wander arbitrarily far from their starting values. This also means that the unconditional second moments, which are often used in business cycle analysis ...
Capital Flows to Emerging Markets
... developing to developed countries. Moreover the process of “financial globalisation” has induced a dramatic increase of international asset-holdings, including in emerging countries (Lane and Milesi-Ferretti, 2007). Private capital flows have kept flowing to emerging countries, but outflows have gro ...
... developing to developed countries. Moreover the process of “financial globalisation” has induced a dramatic increase of international asset-holdings, including in emerging countries (Lane and Milesi-Ferretti, 2007). Private capital flows have kept flowing to emerging countries, but outflows have gro ...
Equilibrium interest rate and liquidity premium under
... a decreasing stream of lal)or income over their lifetimes. In addition they can invest in long-term assets ...
... a decreasing stream of lal)or income over their lifetimes. In addition they can invest in long-term assets ...
A Primer on Inflation
... and money (i.e., inflationism). The result of this is both today's “growth mania” as well as the “inflation mania”. Central bankers nowadays define price stability as an annual loss of money's purchasing power (as measured by CPI) of close to two percent. It appears fundamentally paradoxical to defi ...
... and money (i.e., inflationism). The result of this is both today's “growth mania” as well as the “inflation mania”. Central bankers nowadays define price stability as an annual loss of money's purchasing power (as measured by CPI) of close to two percent. It appears fundamentally paradoxical to defi ...
Essays in Monetary Policy and Banking Babak Mahmoudi
... with a segmented asset market, open-market operations affect the participation decisions of the households and, therefore, have real effects on the distribution of assets and prices in the economy. Numerical exercises show that when the asset market is segmented, the central bank can improve welfare ...
... with a segmented asset market, open-market operations affect the participation decisions of the households and, therefore, have real effects on the distribution of assets and prices in the economy. Numerical exercises show that when the asset market is segmented, the central bank can improve welfare ...
Economic bubble
An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have been suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation, or bounded rationality. In such cases, the bubbles may be argued to be rational, where investors at every point fully compensated for the possibility that the bubble might collapse by higher returns. These approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. It has also been suggested that bubbles might ultimately be caused by processes of price coordination or emerging social norms.