Global Economic Perspectives
... needs to be achieved by a reduction of domestic demand. In the following analysis, we estimate how much GDP would have to fall to achieve external balance in an illustrative exercise based on two very simple assumptions. First, we assume that exports remain unchanged. Second, we assume that the rati ...
... needs to be achieved by a reduction of domestic demand. In the following analysis, we estimate how much GDP would have to fall to achieve external balance in an illustrative exercise based on two very simple assumptions. First, we assume that exports remain unchanged. Second, we assume that the rati ...
A Tale of Two Danish Banking Crises
... during the most recent overheating of the economy is therefore different from the situation in the mid-1980s when contractive policy measures were implemented in response to current-account problems. Experience in Denmark as well as other countries shows that during periods of strong economic growth ...
... during the most recent overheating of the economy is therefore different from the situation in the mid-1980s when contractive policy measures were implemented in response to current-account problems. Experience in Denmark as well as other countries shows that during periods of strong economic growth ...
The last generation of research into macroeconomic policy has
... independent central bank should also help keep interest rates down insofar as investors no longer demand an extra premium to compensate for the erosion of principal by inflation over the term of the loan. Indeed, Napoleon Bonaparte had favored establishing a privately-owned Banque de France because ...
... independent central bank should also help keep interest rates down insofar as investors no longer demand an extra premium to compensate for the erosion of principal by inflation over the term of the loan. Indeed, Napoleon Bonaparte had favored establishing a privately-owned Banque de France because ...
Answer Key - Department Of Economics
... is worth 2 yardsticks; and (3) yardsticks disintegrate overnight, so no yardstick has any value for more than 24 hours. In this economy, a. the yardstick is a medium of exchange but it cannot serve as a unit of account. b. the yardstick is a unit of account but it cannot serve as a store of value. c ...
... is worth 2 yardsticks; and (3) yardsticks disintegrate overnight, so no yardstick has any value for more than 24 hours. In this economy, a. the yardstick is a medium of exchange but it cannot serve as a unit of account. b. the yardstick is a unit of account but it cannot serve as a store of value. c ...
quantity theory of money
... Shoeleather costs are the resources wasted when inflation encourages people to reduce their money holdings. Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. Less cash requires more frequent trips to the bank to withdraw money from interest-be ...
... Shoeleather costs are the resources wasted when inflation encourages people to reduce their money holdings. Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. Less cash requires more frequent trips to the bank to withdraw money from interest-be ...
What Determines the Banking Sector Performance in Globalized
... services. The second term stands for fixed asset turnover, i.e., asset management. The higher the amount of sales generated from investing in a unit of fixed assets, the better the asset management. The reason is that generating higher volumes of sales from lower amount of assets implies that the ba ...
... services. The second term stands for fixed asset turnover, i.e., asset management. The higher the amount of sales generated from investing in a unit of fixed assets, the better the asset management. The reason is that generating higher volumes of sales from lower amount of assets implies that the ba ...
Growth in Agricultural Loan Market Share for
... their assets. In some periods growth in local deposit volume, particularly for rural banks, has not kept pace with the growth in aggregate demand for loans, However, there are sources of funds from outside the local deposit market that banks may access such as loan participation with correspondent b ...
... their assets. In some periods growth in local deposit volume, particularly for rural banks, has not kept pace with the growth in aggregate demand for loans, However, there are sources of funds from outside the local deposit market that banks may access such as loan participation with correspondent b ...
03/2012 Matías Vernengo and Esteban Pérez Caldentey Abstract
... essential first for the collapse of the economy that followed a great contraction of money supply, and then for the recovery from the Great Depression, since, in his view, the increase in money supply was the essential element in the recovery, rather than the New Deal policies.3 This view, both of t ...
... essential first for the collapse of the economy that followed a great contraction of money supply, and then for the recovery from the Great Depression, since, in his view, the increase in money supply was the essential element in the recovery, rather than the New Deal policies.3 This view, both of t ...
Making more out of less
... remain low for an extended period. The Australian Prudential Regulatory Authority (APRA) has also announced additional measures to increase core capital requirements – an extra 1 per cent core capital buffer for the four major banks to reflect their systemic importance to the domestic banking system ...
... remain low for an extended period. The Australian Prudential Regulatory Authority (APRA) has also announced additional measures to increase core capital requirements – an extra 1 per cent core capital buffer for the four major banks to reflect their systemic importance to the domestic banking system ...
NBER WORKING PAPER SERIES BIG BANKS AND MACROECONOMIC OUTCOMES:
... to be passed through to firms via changes in lending rates. On the other hand, the distribution of bank size has to follow a fat-tailed power law to be sufficiently dispersed. We show that, under these conditions, the higher the concentration or volatility of idiosyncratic fluctuations in the banki ...
... to be passed through to firms via changes in lending rates. On the other hand, the distribution of bank size has to follow a fat-tailed power law to be sufficiently dispersed. We show that, under these conditions, the higher the concentration or volatility of idiosyncratic fluctuations in the banki ...
How to Get Paid When Selling Overseas
... sales, there are foreign exchange risks. You would normally require payment in U.S. dollars to protect yourself. That way, if the buyer's currency depreciates, you're still owed the dollar amount specified. However, the buyer would have to put up more local currency than expected, and might default ...
... sales, there are foreign exchange risks. You would normally require payment in U.S. dollars to protect yourself. That way, if the buyer's currency depreciates, you're still owed the dollar amount specified. However, the buyer would have to put up more local currency than expected, and might default ...
The velocity of money is: The same as the inflation rate. The number
... According to the empirical evidence on interest rates and money demand, a. The demand for money is extremely sensitive to interest rates. b. The demand for money is not affected by interest rates, so the quantity theory is correct. c. A liquidity trap has been a problem in the United States, as chan ...
... According to the empirical evidence on interest rates and money demand, a. The demand for money is extremely sensitive to interest rates. b. The demand for money is not affected by interest rates, so the quantity theory is correct. c. A liquidity trap has been a problem in the United States, as chan ...
Is Cash still King?
... that their cash deposits are safe. Treasury departments are now utilizing the repo market, and in particular triparty repos as an alternative solution to optimize their returns. Not only is this market more secure and fully collateralized but it also allows companies to obtain a higher rate of inter ...
... that their cash deposits are safe. Treasury departments are now utilizing the repo market, and in particular triparty repos as an alternative solution to optimize their returns. Not only is this market more secure and fully collateralized but it also allows companies to obtain a higher rate of inter ...
Capital Regulation and Monetary Policy with Fragile Banks
... this. Capital requirements and other prudential instruments were supposed to ensure, at least with high probability, the solvency of individual banks, with the implicit tenet that stable banks would automatically translate into a stable financial system. On the other side, monetary policy should lar ...
... this. Capital requirements and other prudential instruments were supposed to ensure, at least with high probability, the solvency of individual banks, with the implicit tenet that stable banks would automatically translate into a stable financial system. On the other side, monetary policy should lar ...
Presentation
... the crisis (including contingent liabilities) Ultimate risk and credit risk transfer Capturing assets and liabilities of special purpose entities and off-balance sheet positions Housing markets Improving availability of housing-related data and making data cross-country comparable Macropru ...
... the crisis (including contingent liabilities) Ultimate risk and credit risk transfer Capturing assets and liabilities of special purpose entities and off-balance sheet positions Housing markets Improving availability of housing-related data and making data cross-country comparable Macropru ...
Preview Sample 1
... All of these aggregates except DNFD are a measure of money. M1 is the narrowest measure of money and the smallest aggregate. M1 is generally used for transactions and contains t he most liquid assets—assets that are money per se. M2 and M3 are progressively broader measures of money that include M1 ...
... All of these aggregates except DNFD are a measure of money. M1 is the narrowest measure of money and the smallest aggregate. M1 is generally used for transactions and contains t he most liquid assets—assets that are money per se. M2 and M3 are progressively broader measures of money that include M1 ...
Money in a Theory of Banking
... view, places banks at the center of the transmission process. Even though the model suggests that under fairly general circumstances demand deposits are the cheapest way banks can finance themselves (so that if reserves had to be maintained against these deposits, the central bank could alter banks’ ...
... view, places banks at the center of the transmission process. Even though the model suggests that under fairly general circumstances demand deposits are the cheapest way banks can finance themselves (so that if reserves had to be maintained against these deposits, the central bank could alter banks’ ...
An Introduction to US Monetary Policy
... time this whole currency issuing process was complete, customers would have long turned to currency substitutes or simply asked for gold instead of paper money. The demand for gold reserves caused the banks to draw down their reserves at other banks, and this ripple effect caused numerous banks to c ...
... time this whole currency issuing process was complete, customers would have long turned to currency substitutes or simply asked for gold instead of paper money. The demand for gold reserves caused the banks to draw down their reserves at other banks, and this ripple effect caused numerous banks to c ...
LESSON – 25 THE SUPPLY OF MONEY Learning outcomes After
... Some economists do not take into consideration excess reserves in determining highpowered money and consequently the money supply. But the monetarists give more importance to excess reserves. According to them, due to uncertainties prevailing in banking operations as in business, banks always keep e ...
... Some economists do not take into consideration excess reserves in determining highpowered money and consequently the money supply. But the monetarists give more importance to excess reserves. According to them, due to uncertainties prevailing in banking operations as in business, banks always keep e ...
NBER WORKING PAPER SERIES QUANTITATIVE EASING: Volker Wieland
... This paper reviews the rationale for quantitative easing when central bank policy rates reach near zero levels in light of recent announcements regarding direct asset purchases by the Bank of England, the Bank of Japan, the U.S. Federal Reserve and the European Central Bank. Empirical evidence from ...
... This paper reviews the rationale for quantitative easing when central bank policy rates reach near zero levels in light of recent announcements regarding direct asset purchases by the Bank of England, the Bank of Japan, the U.S. Federal Reserve and the European Central Bank. Empirical evidence from ...
An Introduction to U.S. Monetary Policy
... time this whole currency issuing process was complete, customers would have long turned to currency substitutes or simply asked for gold instead of paper money. The demand for gold reserves caused the banks to draw down their reserves at other banks, and this ripple effect caused numerous banks to c ...
... time this whole currency issuing process was complete, customers would have long turned to currency substitutes or simply asked for gold instead of paper money. The demand for gold reserves caused the banks to draw down their reserves at other banks, and this ripple effect caused numerous banks to c ...