The impact of financial liberalisation on income inequality
... developing countries. There have, however, been many such studies and while some of these do appear to lend support to the arguments in favour of financial liberalisation, there are many which do not. An influential survey co-authored by Rudiger Dornbusch (1989) concluded that the strong claims for ...
... developing countries. There have, however, been many such studies and while some of these do appear to lend support to the arguments in favour of financial liberalisation, there are many which do not. An influential survey co-authored by Rudiger Dornbusch (1989) concluded that the strong claims for ...
Legal Origin, Creditors` Rights and Bank Lending
... In aggregate, this should lead to higher levels of private sector credit, which the “finance and growth” literature has shown to be positively related to economic growth. © 2013 Cole-Turk Ariss: Legal Origin, Creditor Protection, and Bank Lending Around the World ...
... In aggregate, this should lead to higher levels of private sector credit, which the “finance and growth” literature has shown to be positively related to economic growth. © 2013 Cole-Turk Ariss: Legal Origin, Creditor Protection, and Bank Lending Around the World ...
Shadow banks and macroeconomic instability CAMA Working Paper
... in the workings of key asset markets, and in regulation, which we largely ignore. For example, we do not model complex financial instruments based on securitized assets, such as collateralized debt obligations (CDOs), which the market badly mispriced (see Coval, Jurek and Stafford, 2009). Also, an i ...
... in the workings of key asset markets, and in regulation, which we largely ignore. For example, we do not model complex financial instruments based on securitized assets, such as collateralized debt obligations (CDOs), which the market badly mispriced (see Coval, Jurek and Stafford, 2009). Also, an i ...
sustainability Monetary and Fiscal Policies for a Finite Planet
... how much money banks can create. An alternative view, known as endogenous money theory, argues that banks will actually make any loan they believe is likely to prove profitable. At the end of the day, banks that have loaned too much can borrow from those who have excess reserves or from the central ...
... how much money banks can create. An alternative view, known as endogenous money theory, argues that banks will actually make any loan they believe is likely to prove profitable. At the end of the day, banks that have loaned too much can borrow from those who have excess reserves or from the central ...
The Federal Reserve`s Primary Dealer Credit Facility
... the Eurodollar market—to obtain funding for their inventories of securities. If a dealer cannot borrow in these alternative markets and does not have capital available to help fund its inventories, it may be forced to sell its securities holdings; if such sales cannot be made because markets are ill ...
... the Eurodollar market—to obtain funding for their inventories of securities. If a dealer cannot borrow in these alternative markets and does not have capital available to help fund its inventories, it may be forced to sell its securities holdings; if such sales cannot be made because markets are ill ...
Macroeconomics Module 8
... Monetarists believe that Federal Reserve policy should be directed at increasing/decreasing the supply of money, not at changing interest rates. Expanding upon the basic theories of monetarists, some believe that Q is stable too. Under this theory, a natural rate of unemployment exists within the ec ...
... Monetarists believe that Federal Reserve policy should be directed at increasing/decreasing the supply of money, not at changing interest rates. Expanding upon the basic theories of monetarists, some believe that Q is stable too. Under this theory, a natural rate of unemployment exists within the ec ...
MONETARY POLICY AND THE ECONOMY First
... CENTRAL BANKING A central bank is a government organization that is primarily responsible for the monetary affairs of a country. In this section, we focus on the U.S. Federal Reserve System. We describe its history, objectives, and functions. ...
... CENTRAL BANKING A central bank is a government organization that is primarily responsible for the monetary affairs of a country. In this section, we focus on the U.S. Federal Reserve System. We describe its history, objectives, and functions. ...
Financial Flexibility and the Cost of External Finance for U.S. Bank
... Our main tests focus on the link between our proxy for access costs (financial flexibility) and firm value. Unfortunately, this test does not allow us to determine whether flexibility is valuable because of flexible banks’ ability to arbitrage differential prices of claims in two markets, or because ...
... Our main tests focus on the link between our proxy for access costs (financial flexibility) and firm value. Unfortunately, this test does not allow us to determine whether flexibility is valuable because of flexible banks’ ability to arbitrage differential prices of claims in two markets, or because ...
MONETARY POLICY AND THE ECONOMY First
... CENTRAL BANKING A central bank is a government organization that is primarily responsible for the monetary affairs of a country. In this section, we focus on the U.S. Federal Reserve System. We describe its history, objectives, and functions. ...
... CENTRAL BANKING A central bank is a government organization that is primarily responsible for the monetary affairs of a country. In this section, we focus on the U.S. Federal Reserve System. We describe its history, objectives, and functions. ...
Slide 1
... the dollar declines, so the longer you hold money, the less that money is worth – Even though people tend to cut down on their money balances during periods of inflation, as the price level rises people will hold larger money balances Copyright 2002 by The McGraw-Hill Companies, Inc. All rights res ...
... the dollar declines, so the longer you hold money, the less that money is worth – Even though people tend to cut down on their money balances during periods of inflation, as the price level rises people will hold larger money balances Copyright 2002 by The McGraw-Hill Companies, Inc. All rights res ...
The central-bank balance sheet as an instrument of monetary policy
... When a new type is drawn, it is b with probability π b > 0 and s with probability π s < 1, where π b + π s = 1. ucb (c; ξ ) > ucs (c; ξ ) for all levels of expenditure c in the range that occur in equilibrium. A change in a household’s type changes its relative impatience to consume. Current impatie ...
... When a new type is drawn, it is b with probability π b > 0 and s with probability π s < 1, where π b + π s = 1. ucb (c; ξ ) > ucs (c; ξ ) for all levels of expenditure c in the range that occur in equilibrium. A change in a household’s type changes its relative impatience to consume. Current impatie ...
Readings from the Federal Reserve
... Q1: How would eliminating paper dollar bills and replacing them with dollar coins save on costs of producing money in the United States? How much would the country save if it did so? Q2: Define the term network externalities and explain how the term is a relevant concept for dollar coins. Q3: What c ...
... Q1: How would eliminating paper dollar bills and replacing them with dollar coins save on costs of producing money in the United States? How much would the country save if it did so? Q2: Define the term network externalities and explain how the term is a relevant concept for dollar coins. Q3: What c ...
Monetary policy operating procedures in Saudi Arabia
... In an administered exchange rate regime with full convertibility and no restriction on capital flows, monetary policy becomes subordinated to maintaining the desired exchange rate. Moreover, the openness of the economy fosters the quick transmission of monetary influences from abroad. It is thus dif ...
... In an administered exchange rate regime with full convertibility and no restriction on capital flows, monetary policy becomes subordinated to maintaining the desired exchange rate. Moreover, the openness of the economy fosters the quick transmission of monetary influences from abroad. It is thus dif ...
ISLM: Part II: The Monetary Sector
... that rates are likely to fall and a low current rate implies that they are likely to rise, then we get a downward-sloping demand for speculative money holdings. Keynes believed that the demand for money holdings, i.e., for liquidity, is fairly interest-rate elastic—especially at low rates of interes ...
... that rates are likely to fall and a low current rate implies that they are likely to rise, then we get a downward-sloping demand for speculative money holdings. Keynes believed that the demand for money holdings, i.e., for liquidity, is fairly interest-rate elastic—especially at low rates of interes ...
Money Economics offers various definitions for money, though it is
... Croesus of Lydia, if not before. rum-currency operated in the early European settlement of Sydney cove in Australia. ...
... Croesus of Lydia, if not before. rum-currency operated in the early European settlement of Sydney cove in Australia. ...
Financial Crises and Systemic Bank Runs in a Dynamic
... During these crises, several financial institutions became insolvent and were subject to runs. More than one-fifth of the commercial banks in the United States suspended operations during the Great Depression, as reported by Friedman and Schwartz (1963). The collapse of Lehman Brothers in September ...
... During these crises, several financial institutions became insolvent and were subject to runs. More than one-fifth of the commercial banks in the United States suspended operations during the Great Depression, as reported by Friedman and Schwartz (1963). The collapse of Lehman Brothers in September ...
Relationship and Transaction Lending in a Crisis
... modi…cation of the Bolton and Freixas (2006) model is to introduce aggregate business-cycle risk, to allow …rms to di¤er in their exposure to this risk, and to consider how the response of R banks to a crisis di¤ers from that of T banks. The main predictions emerging from the theoretical analysis a ...
... modi…cation of the Bolton and Freixas (2006) model is to introduce aggregate business-cycle risk, to allow …rms to di¤er in their exposure to this risk, and to consider how the response of R banks to a crisis di¤ers from that of T banks. The main predictions emerging from the theoretical analysis a ...
EC 102
... Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose b ...
... Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose b ...
Chapter 1 The Financial System – Money and Prices
... The Financial System – Money and Prices • The Keynesian View – Attempt to regulate aggregate output through changes in interest rates, since velocity is difficult to measure – Changes in interest rates are hoped to effect Consumption and Savings/Investment – Ultimately change in the money supply eff ...
... The Financial System – Money and Prices • The Keynesian View – Attempt to regulate aggregate output through changes in interest rates, since velocity is difficult to measure – Changes in interest rates are hoped to effect Consumption and Savings/Investment – Ultimately change in the money supply eff ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... out indiscriminately without proper credit appraisal (Philip, 1994). The resultant effects were that many of these loans turn out to be bad. It is therefore not surprising to find banks to have non-performing loans that exceed 50 per cent of the bank‟s loan portfolio. The increased number of banks o ...
... out indiscriminately without proper credit appraisal (Philip, 1994). The resultant effects were that many of these loans turn out to be bad. It is therefore not surprising to find banks to have non-performing loans that exceed 50 per cent of the bank‟s loan portfolio. The increased number of banks o ...
Modelling Financial Instability: A Survey of the
... The magnitude and frequency of crises over the last few decades have underscored the importance of crisis prevention and crisis management. Understanding what underlies financial instability and what happens during a crisis (positive analysis) can lead to better policies towards preventing and resol ...
... The magnitude and frequency of crises over the last few decades have underscored the importance of crisis prevention and crisis management. Understanding what underlies financial instability and what happens during a crisis (positive analysis) can lead to better policies towards preventing and resol ...
Temi di Discussione
... the key features of an economy in which traditional and shadow banks interact. We claim the following contributions. We develop a dynamic general equilibrium model featuring securitization and shadow banking, which aside from its treatment of the financial sector, closely resembles a standard macroe ...
... the key features of an economy in which traditional and shadow banks interact. We claim the following contributions. We develop a dynamic general equilibrium model featuring securitization and shadow banking, which aside from its treatment of the financial sector, closely resembles a standard macroe ...