Mohan Bijapur Are credit crunches supply or demand shocks?
... in that the long run effect on output of credit shocks seems to have become stronger in recent decades. However, the inflation response has become weaker. We interpret these findings in the context of the broader debate on the causes of the “Great Moderation”. Our results also inform the ongoing pol ...
... in that the long run effect on output of credit shocks seems to have become stronger in recent decades. However, the inflation response has become weaker. We interpret these findings in the context of the broader debate on the causes of the “Great Moderation”. Our results also inform the ongoing pol ...
University of Lethbridge — Department of Economics
... 3) Which of the following benefits flow from the application of an inflation-control target? A) The monetary authorities can change the target range whenever they feel it is appropriate. B) If actual inflation exceeds the target range, the Bank of Canada can induce a recession to correct the matter. ...
... 3) Which of the following benefits flow from the application of an inflation-control target? A) The monetary authorities can change the target range whenever they feel it is appropriate. B) If actual inflation exceeds the target range, the Bank of Canada can induce a recession to correct the matter. ...
Answers to End-of-Chapter Problems
... on average. The interest rate on Baa corporate bonds is higher on average than the other interest rates. 2. The lower price for a firm’s shares means that it can raise a smaller amount of funds, so investment in facilities and equipment will fall. 3. Higher stock prices mean that consumers’ wealth i ...
... on average. The interest rate on Baa corporate bonds is higher on average than the other interest rates. 2. The lower price for a firm’s shares means that it can raise a smaller amount of funds, so investment in facilities and equipment will fall. 3. Higher stock prices mean that consumers’ wealth i ...
Change in IIP and WPI base year: What can be
... the primary articles and food products under the manufacturing products. As a result, the new WPI inflation depicts lower increase in prices leading to maximum difference of 1.5-1.6% in the old and new series. The most debated question now is whether these new high IIP and low WPI inflation numbers ...
... the primary articles and food products under the manufacturing products. As a result, the new WPI inflation depicts lower increase in prices leading to maximum difference of 1.5-1.6% in the old and new series. The most debated question now is whether these new high IIP and low WPI inflation numbers ...
Monetary Policy Transparency - Faculty of Economics
... improvement in economic transparency involving quantitative information. The publication of numerical macroeconomic forecasts greatly expanded from 14% of central banks in 1998 to 54% in 2010. Although initially few central banks released their medium-term forecasts for both inflation and output at ...
... improvement in economic transparency involving quantitative information. The publication of numerical macroeconomic forecasts greatly expanded from 14% of central banks in 1998 to 54% in 2010. Although initially few central banks released their medium-term forecasts for both inflation and output at ...
university of maiduguri - Unimaid, Centre for Distance Learning
... can be produced only by a more rapid increased in the quantity of money than in output” But economists of other background do not agree that money supply alone is the cause of inflation. As pointed out by Hicks “the problems of inflation are not entirely of a monetary phenomenon” Thus, Economist lik ...
... can be produced only by a more rapid increased in the quantity of money than in output” But economists of other background do not agree that money supply alone is the cause of inflation. As pointed out by Hicks “the problems of inflation are not entirely of a monetary phenomenon” Thus, Economist lik ...
Bulletin Contents Volume 76 No. 4, December 2013
... developed countries, inflation targets are clustered around ...
... developed countries, inflation targets are clustered around ...
Monetary Policy rePort with financial stability assessment
... lower than expected and in Japan GDP fell in the first six months of the year. Improved credit conditions, an easing of fiscal policy and continued accommadative monetary policy may fuel growth in most advanced countries in the coming years. In China, growth in real estate investment is ebbing, and ...
... lower than expected and in Japan GDP fell in the first six months of the year. Improved credit conditions, an easing of fiscal policy and continued accommadative monetary policy may fuel growth in most advanced countries in the coming years. In China, growth in real estate investment is ebbing, and ...
The Role of Firm-Level Productivity Growth for the Optimal Rate of
... In economies in which firms set their price based on marginal costs, firm-level productivity growth affects a firm’s price setting. Ideally, a profit-maximizing firm sets its nominal price in a way that guarantees that its real price exceeds its real marginal costs by some markup. In this ideal case ...
... In economies in which firms set their price based on marginal costs, firm-level productivity growth affects a firm’s price setting. Ideally, a profit-maximizing firm sets its nominal price in a way that guarantees that its real price exceeds its real marginal costs by some markup. In this ideal case ...
Presentation, Powerpoint 345kb - The Cambridge Trust for New
... IT, the main policy implication of NCM, is designed to tackle demand shocks, that is demand-pull type of inflation; Supply shocks, which produce cost-push type of inflation, cannot be handled by the NCM; The position taken by IT on supply shocks, is that they should either be accommodated, or ...
... IT, the main policy implication of NCM, is designed to tackle demand shocks, that is demand-pull type of inflation; Supply shocks, which produce cost-push type of inflation, cannot be handled by the NCM; The position taken by IT on supply shocks, is that they should either be accommodated, or ...
the research on the impact of the changes of commodity price level
... Akram (2009) found that real commodity prices increase in response to interest rate shocks that lower interest rates. Moreover, commodity prices specifically oil prices and prices of industrial raw materials tend to display overshooting behaviour in response to such interest rate shocks, while food ...
... Akram (2009) found that real commodity prices increase in response to interest rate shocks that lower interest rates. Moreover, commodity prices specifically oil prices and prices of industrial raw materials tend to display overshooting behaviour in response to such interest rate shocks, while food ...
UNDERSTANDING MONETARY POLICY SERIES NO 3 CENTRAL BANK OF NIGERIA
... leads to rising prices) and cause the central bank to raise interest rates or otherwise halt growth in money-supply. While other monetary policy strategies ...
... leads to rising prices) and cause the central bank to raise interest rates or otherwise halt growth in money-supply. While other monetary policy strategies ...
Caution or Activism? Monetary Policy Strategies in an Open Economy
... than uninformed central banks. Optimal monetary policy strategy is activist and we replicate the closed-economy result that policy actions should be strong to promote learning. In the equilibrium without policy coordination the informational spillovers prove to be more problematic. Absent coordinat ...
... than uninformed central banks. Optimal monetary policy strategy is activist and we replicate the closed-economy result that policy actions should be strong to promote learning. In the equilibrium without policy coordination the informational spillovers prove to be more problematic. Absent coordinat ...
Macroeconomic stabilization, monetary
... stimulative effects. To make matters worse, the expectations of default or restructuring can be selffulfilling. Although the Outright Monetary Transactions program launched by the European Central Bank in 2012 has eliminated or at least reduced the possibility of self-fulfilling creditor runs on a e ...
... stimulative effects. To make matters worse, the expectations of default or restructuring can be selffulfilling. Although the Outright Monetary Transactions program launched by the European Central Bank in 2012 has eliminated or at least reduced the possibility of self-fulfilling creditor runs on a e ...
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... that precedes inflation targeting. The Reserve Bank’s first macroeconomic model (Deane, 1971), had a simple Keynesian structure and was later updated to include an inflation-expectations augmented Phillips curve by Spencer et al. (1979). These early models were based on aggregate demand driven frame ...
... that precedes inflation targeting. The Reserve Bank’s first macroeconomic model (Deane, 1971), had a simple Keynesian structure and was later updated to include an inflation-expectations augmented Phillips curve by Spencer et al. (1979). These early models were based on aggregate demand driven frame ...
Swedish Quantitative Easing
... central banks, such as the Fed, Bank of England, Bank of Japan and ECB, while around a dozen central banks have lowered interest rates below zero (Anderson et al. 2010) QE seems to have helped equity indices increase in many countries, as will be presented later in this thesis. Economists also are i ...
... central banks, such as the Fed, Bank of England, Bank of Japan and ECB, while around a dozen central banks have lowered interest rates below zero (Anderson et al. 2010) QE seems to have helped equity indices increase in many countries, as will be presented later in this thesis. Economists also are i ...
Sample Chapter 28
... meet the demands of their customers. Like Al’s ice cream store, described in the chapter “Short-Term Economic Fluctuations,” firms may be willing to do this for a time. But eventually they will adjust to the high level of demand by raising prices, contributing to inflation. To control inflation, the ...
... meet the demands of their customers. Like Al’s ice cream store, described in the chapter “Short-Term Economic Fluctuations,” firms may be willing to do this for a time. But eventually they will adjust to the high level of demand by raising prices, contributing to inflation. To control inflation, the ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
... make it more attractive to hold domestic currency, which, in turn, requires increasing interest rates temporarily, even if higher interest costs complicate the situation of weak banks and corporations. … Once confidence is restored, interest rates can return to more normal levels. … Indeed, the relu ...
... make it more attractive to hold domestic currency, which, in turn, requires increasing interest rates temporarily, even if higher interest costs complicate the situation of weak banks and corporations. … Once confidence is restored, interest rates can return to more normal levels. … Indeed, the relu ...
Was the New Deal Contractionary?
... shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would require a negative nominal interest rate, and the nominal interest rate cannot be negative. T ...
... shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would require a negative nominal interest rate, and the nominal interest rate cannot be negative. T ...
What Caused The Great Moderation?
... generally. Such an environment could contribute to more stable output growth in several ways. Lower inflation reduces nominal distortions, such as those that arise from taxation.6 More stable inflation also removes one source of uncertainty that might cloud firms’ investment decisions. Finally, to t ...
... generally. Such an environment could contribute to more stable output growth in several ways. Lower inflation reduces nominal distortions, such as those that arise from taxation.6 More stable inflation also removes one source of uncertainty that might cloud firms’ investment decisions. Finally, to t ...
I Economic outlook, key assumptions, and main uncertainties
... There are signs that GDP growth eased somewhat in Q1/2017. Clearly, the fishermen’s strike early in the year caused a steep drop in marine product exports and export inventories. Because the impact is temporary, GDP growth is expected to rally in Q2 and measure 6.3% for 2017 as a whole, 1 percentage ...
... There are signs that GDP growth eased somewhat in Q1/2017. Clearly, the fishermen’s strike early in the year caused a steep drop in marine product exports and export inventories. Because the impact is temporary, GDP growth is expected to rally in Q2 and measure 6.3% for 2017 as a whole, 1 percentage ...
Inflation-Indexed Securities: Description and Market Experience
... Inflation is a serious threat to the economic security of anyone who lives on a fixed income or relies on a fixed stock of assets. Many older people are exposed to inflation because they rely on savings or pensions to supplement the inflation-adjusted benefit provided by Social Security. Inflation m ...
... Inflation is a serious threat to the economic security of anyone who lives on a fixed income or relies on a fixed stock of assets. Many older people are exposed to inflation because they rely on savings or pensions to supplement the inflation-adjusted benefit provided by Social Security. Inflation m ...
12INFLATION*
... year and C the year after. The economy has had a A) positive and increasing rate of inflation. B) positive and constant rate of inflation. C) one-time increase in the price level. D) positive and decreasing rate of inflation. Answer: D ...
... year and C the year after. The economy has had a A) positive and increasing rate of inflation. B) positive and constant rate of inflation. C) one-time increase in the price level. D) positive and decreasing rate of inflation. Answer: D ...