Tilburg University Designing fiscal and monetary
... As a third extension, we include nominal public debt into the model. In addition to nominal wage contracts, nominal public debt provides an additional incentive for policymakers to generate unanticipated inflation. In fact, the connection between central bank independence and the level of public deb ...
... As a third extension, we include nominal public debt into the model. In addition to nominal wage contracts, nominal public debt provides an additional incentive for policymakers to generate unanticipated inflation. In fact, the connection between central bank independence and the level of public deb ...
Efficiency Determinants and Dynamic Efficiency Changes in Latin
... banking sector, financial liberalization eliminated government interest rate controls and bank obligations to provide subsidized loans, and it allowed central banks more autonomy. These reforms in the Latin American banking industries were intended to improve banking efficiency.1 Unfortunately, fina ...
... banking sector, financial liberalization eliminated government interest rate controls and bank obligations to provide subsidized loans, and it allowed central banks more autonomy. These reforms in the Latin American banking industries were intended to improve banking efficiency.1 Unfortunately, fina ...
Credit Expansion and Neglected Crash Risk * Matthew Baron
... by immediately lowering share prices and thus earn higher future average returns from holding bank stocks. This is a key argument we use to determine whether shareholders anticipate the increased equity crash risk associated with credit expansions. We find that one to three years after bank credit e ...
... by immediately lowering share prices and thus earn higher future average returns from holding bank stocks. This is a key argument we use to determine whether shareholders anticipate the increased equity crash risk associated with credit expansions. We find that one to three years after bank credit e ...
Rethinking the central bank`s mandate 4
... Blinder pointed out that many different solutions have been chosen internationally as regards how to distribute the responsibility for supervising and regulating financial institutions. This is not that strange as there are many ways of combining the responsibilities. One institution can, for exampl ...
... Blinder pointed out that many different solutions have been chosen internationally as regards how to distribute the responsibility for supervising and regulating financial institutions. This is not that strange as there are many ways of combining the responsibilities. One institution can, for exampl ...
Money Demand Stability and Inflation Prediction in the Four Largest
... national developments should be of interest. First, for the optimal conduct of monetary policy it may prove beneficial to use national information if the national monetary transmission mechanisms are asymmetric (de Grauwe and Senegas, 2003). Second, and related to the first point, inflation forecast ...
... national developments should be of interest. First, for the optimal conduct of monetary policy it may prove beneficial to use national information if the national monetary transmission mechanisms are asymmetric (de Grauwe and Senegas, 2003). Second, and related to the first point, inflation forecast ...
Financial Regulation, Financial Globalization
... to the fourth identification challenge), we construct a structural index of financial integration, based on the adoption timing of financial sector legislation that aims to harmonize the regulatory framework in financial intermediation across European Union (EU) financial markets. Compared to outco ...
... to the fourth identification challenge), we construct a structural index of financial integration, based on the adoption timing of financial sector legislation that aims to harmonize the regulatory framework in financial intermediation across European Union (EU) financial markets. Compared to outco ...
Estimation of Money Demand Function for Selected
... as; do changes in real income affect the demand for money ? What is the relationship between real quantity of money demand and financial development? What is the relationship between real quantity of money demand and GDP? What is the relationship between real quantity of money demand and interest ra ...
... as; do changes in real income affect the demand for money ? What is the relationship between real quantity of money demand and financial development? What is the relationship between real quantity of money demand and GDP? What is the relationship between real quantity of money demand and interest ra ...
chapter - Macmillan Learning
... money because of the convenience money provides: money can be used to make purchases directly, but other assets can’t. But there is a price to be paid for that convenience: money normally yields a lower rate of return than nonmonetary assets. As an example of how convenience makes it worth incurring ...
... money because of the convenience money provides: money can be used to make purchases directly, but other assets can’t. But there is a price to be paid for that convenience: money normally yields a lower rate of return than nonmonetary assets. As an example of how convenience makes it worth incurring ...
Money and generalized exchange: A critical look at Neo
... This is made implicit in Arrow and Debreu (1954) by the mere fact that their model, as all NeoWalrasian constructs assume that (p. 266) “each commodity may be bought or sold for delivery at one of a finite number of distinct locations and one of a finite number of future time points.” The fact that th ...
... This is made implicit in Arrow and Debreu (1954) by the mere fact that their model, as all NeoWalrasian constructs assume that (p. 266) “each commodity may be bought or sold for delivery at one of a finite number of distinct locations and one of a finite number of future time points.” The fact that th ...
The Federal Reserve System, Purposes and Functions
... Federal Reserve Banks A network of twelve Federal Reserve Banks and their twenty-five Branches carries out a variety of System functions, including operating a nationwide payments system, distributing the nation’s currency and coin, supervising and regulating member banks and bank holding companies, ...
... Federal Reserve Banks A network of twelve Federal Reserve Banks and their twenty-five Branches carries out a variety of System functions, including operating a nationwide payments system, distributing the nation’s currency and coin, supervising and regulating member banks and bank holding companies, ...
Bank Ratings and Lending Supply: Evidence from Sovereign
... foreign currency issuer ratings. Sovereign and bank ratings are mapped into 22 numerical categories, where 22 is the highest rating (AAA), 21 the second highest (AA+), and one the lowest (default). We obtain bank funding variables from Bankscope, which we then use to investigate the mechanism under ...
... foreign currency issuer ratings. Sovereign and bank ratings are mapped into 22 numerical categories, where 22 is the highest rating (AAA), 21 the second highest (AA+), and one the lowest (default). We obtain bank funding variables from Bankscope, which we then use to investigate the mechanism under ...
Study 2007/1
... (Woodford, (1999), p. 31). It should be noted that the type of micro basis that has asserted itself in the NNS represents only a specific type of micro basis that is exposed to the same criticism as the traditional general equilibrium theory. This concerns in particular the inherent information assu ...
... (Woodford, (1999), p. 31). It should be noted that the type of micro basis that has asserted itself in the NNS represents only a specific type of micro basis that is exposed to the same criticism as the traditional general equilibrium theory. This concerns in particular the inherent information assu ...
Seminar Paper No. 643 MONEY GROWTH TARGETING by Jürgen von Hagen
... This raises the question why central banks do make efforts to identify their monetary strategy. The answer we develop in this paper focuses on political economy. Our analysis deviates from the conventional analysis of monetary strategies in two regards. One, we emphasize that central banks are no un ...
... This raises the question why central banks do make efforts to identify their monetary strategy. The answer we develop in this paper focuses on political economy. Our analysis deviates from the conventional analysis of monetary strategies in two regards. One, we emphasize that central banks are no un ...
Credit Default Swaps and Bank Regulatory Capital
... categories decrease. In other words, CDS-using banks move more assets out of the coverage of regulatory capital than their non-CDS-using counterparts do. The increase in the proportion of capital-free assets is robust to the consideration of the endogenous selection of bank CDS usage, and to differe ...
... categories decrease. In other words, CDS-using banks move more assets out of the coverage of regulatory capital than their non-CDS-using counterparts do. The increase in the proportion of capital-free assets is robust to the consideration of the endogenous selection of bank CDS usage, and to differe ...
Mankiw 5/e Chapter 4: Money and Inflation
... Then, find i = r + = 4 + 3 = 7. b. i = 2, same as the increase in the money ...
... Then, find i = r + = 4 + 3 = 7. b. i = 2, same as the increase in the money ...
Interest Rate Determination - 2012 Book Archive
... or purchase of U.S. government Treasury bonds. Central bank sales or purchases of Treasury bonds are called “open market operations4.” Money demand5 refers to the demand by households, businesses, and the government, for highly liquid assets such as currency and checking account deposits. Money dema ...
... or purchase of U.S. government Treasury bonds. Central bank sales or purchases of Treasury bonds are called “open market operations4.” Money demand5 refers to the demand by households, businesses, and the government, for highly liquid assets such as currency and checking account deposits. Money dema ...
The Monetary Policy Decision Process in the Federal Republic of Germany
... quota is set individually for each bank. An overextension of the quota is not allowed. Only qualified drafts are accepted by the Bundesbank. Lombard policy is the allowance of credit from the Bundesbank against collateral. Such credits are only granted for very short periods of time (normally not mo ...
... quota is set individually for each bank. An overextension of the quota is not allowed. Only qualified drafts are accepted by the Bundesbank. Lombard policy is the allowance of credit from the Bundesbank against collateral. Such credits are only granted for very short periods of time (normally not mo ...
The great depression and the Friedman-Schwartz hypothesis
... In our model we focus on monetary policy alone, in isolation from fiscal policy. Implicitly, we assume that the fiscal authorities accommodate any fiscal implications of monetary policy by a suitable adjustment in taxes.4 We abstract from the distortionary effects of the latter, by assuming the adju ...
... In our model we focus on monetary policy alone, in isolation from fiscal policy. Implicitly, we assume that the fiscal authorities accommodate any fiscal implications of monetary policy by a suitable adjustment in taxes.4 We abstract from the distortionary effects of the latter, by assuming the adju ...
The Credit Cycle and the Business Cycle: New Findings Using the
... prime loan rate emerged as an important benchmark, loan officers were asked to report separately on standards for loans made at prime rate and for loans at above prime. For that period (1978–84), our series is the average of the responses to the two questions. The question was dropped from the surve ...
... prime loan rate emerged as an important benchmark, loan officers were asked to report separately on standards for loans made at prime rate and for loans at above prime. For that period (1978–84), our series is the average of the responses to the two questions. The question was dropped from the surve ...