Macroprudential Policy Design: Four Puzzles for Policymakers
... 3.2 The instrument choice puzzle – a tool to hit the target It seems possible to overcome the target problem by defining a set of intermediate objectives to evaluate ongoing financial stability conditions. The next question is which policy instrument to use to achieve the policy objective. Below, we ...
... 3.2 The instrument choice puzzle – a tool to hit the target It seems possible to overcome the target problem by defining a set of intermediate objectives to evaluate ongoing financial stability conditions. The next question is which policy instrument to use to achieve the policy objective. Below, we ...
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... 3. Ability to predictably affect goals => transmission mechanism of monetary policy (considered later) Interest rates are not clearly better than Ms on criteria 1 and 2 because it is hard to measure and control real interest rates Criteria for Operating Targets Same criteria as above Reserve aggrega ...
... 3. Ability to predictably affect goals => transmission mechanism of monetary policy (considered later) Interest rates are not clearly better than Ms on criteria 1 and 2 because it is hard to measure and control real interest rates Criteria for Operating Targets Same criteria as above Reserve aggrega ...
I. What Is Money?
... Measuring money—the monetary aggregates and the Money Supply 1.Distinguishing what is money from what isn’t money is sometimes difficult a. For example, bank deposits may be transformed into cashed with some cost , but give a higher return than bank checking accounts: Are they money? b. There’s ...
... Measuring money—the monetary aggregates and the Money Supply 1.Distinguishing what is money from what isn’t money is sometimes difficult a. For example, bank deposits may be transformed into cashed with some cost , but give a higher return than bank checking accounts: Are they money? b. There’s ...
Banking panics and deflation in dynamic general equilibrium
... This paper is motivated by the empirical observation that banking panics have been associated with deflation and declines in economic activity in the monetary history of the US and other countries. The paper develops a model in which deflation, banking panics and decline in economic activity all ari ...
... This paper is motivated by the empirical observation that banking panics have been associated with deflation and declines in economic activity in the monetary history of the US and other countries. The paper develops a model in which deflation, banking panics and decline in economic activity all ari ...
Chapter 20 Money Growth, Money Demand, and Modern Monetary
... • The higher the nominal interest rate—that is, the higher the opportunity cost of holding money—the less money individuals will hold for a given level of transactions. ...
... • The higher the nominal interest rate—that is, the higher the opportunity cost of holding money—the less money individuals will hold for a given level of transactions. ...
Section 1.3: Advantages of monetary economy over
... must be hard to find in the real world. This explains why sand is never used as money. It is easy to scoop up tons of sand from a beach. (7b) Relative stability of supply: if we use a man-made resource as money the producer of money must have self discipline in controlling a steady growth of money s ...
... must be hard to find in the real world. This explains why sand is never used as money. It is easy to scoop up tons of sand from a beach. (7b) Relative stability of supply: if we use a man-made resource as money the producer of money must have self discipline in controlling a steady growth of money s ...
8.貨幣政策之執行The Conduct of Monetary Policy: Tools, Goals, and
... Reserve aggregates and interest rates about equal on criteria 1 and 2. But for 3, if monetary aggregate is used as the intermediate target then reserve aggregate is better used as the operating target. Copyright © 2000 Addison Wesley Longman ...
... Reserve aggregates and interest rates about equal on criteria 1 and 2. But for 3, if monetary aggregate is used as the intermediate target then reserve aggregate is better used as the operating target. Copyright © 2000 Addison Wesley Longman ...
Insert title here - Wando High School
... To cover deficit spending the government sells bonds. Every dollar spent on a government bond is one fewer dollar that is available for businesses to borrow and invest. This encroachment on investment in the private sector is known as the crowding-out effect. ...
... To cover deficit spending the government sells bonds. Every dollar spent on a government bond is one fewer dollar that is available for businesses to borrow and invest. This encroachment on investment in the private sector is known as the crowding-out effect. ...
Resolution of Banking Crises: The Good, the Bad, and the Ugly
... underlying causes and policy responses, there are some important differences in terms of the scale and scope of interventions. Direct fiscal costs to support the financial sector were smaller this time as a consequence of swift policy action and significant indirect support from expansionary monetar ...
... underlying causes and policy responses, there are some important differences in terms of the scale and scope of interventions. Direct fiscal costs to support the financial sector were smaller this time as a consequence of swift policy action and significant indirect support from expansionary monetar ...
The World Bank`s Genuine Savings Indicator
... because they are only concerned with weak sustainability”.15 They respond that countries which fail on savings will also fail a test of strong sustainability (the concept that human welfare depends on maintaining certain natural resources, as other assets such as education or machinery cannot substi ...
... because they are only concerned with weak sustainability”.15 They respond that countries which fail on savings will also fail a test of strong sustainability (the concept that human welfare depends on maintaining certain natural resources, as other assets such as education or machinery cannot substi ...
Of Banks and Mutual Funds: The Collective
... in 1937 through the promulgation by the Federal Reserve Board of an amendment to Regulation F, governing trust activities by national banks. Until 1962 the Board confined bank participation in common trust funds to situations in which banks were acting as trustees, executors, administrators, or guar ...
... in 1937 through the promulgation by the Federal Reserve Board of an amendment to Regulation F, governing trust activities by national banks. Until 1962 the Board confined bank participation in common trust funds to situations in which banks were acting as trustees, executors, administrators, or guar ...
Document
... The steep upward-sloping yield curve at shorter maturities suggests that short-term interest rates are expected to rise moderately in the near future because the initial, steep upward slope indicates that the average of expected short-term interest rates in the near future are above the current shor ...
... The steep upward-sloping yield curve at shorter maturities suggests that short-term interest rates are expected to rise moderately in the near future because the initial, steep upward slope indicates that the average of expected short-term interest rates in the near future are above the current shor ...
Chapter 7 - the School of Economics and Finance
... Bank of Japan (Nippon Ginko) • Founded in 1882 • The Policy Board sets monetary policy, and consists of the governor, two vice governors, and six outside members. All serve five-year terms. • The Bank of Japan Law (1998) gave the Bank considerable instrument and goal independence. • Japan’s Ministr ...
... Bank of Japan (Nippon Ginko) • Founded in 1882 • The Policy Board sets monetary policy, and consists of the governor, two vice governors, and six outside members. All serve five-year terms. • The Bank of Japan Law (1998) gave the Bank considerable instrument and goal independence. • Japan’s Ministr ...
THE CREDIT EXPANSION PROCESS
... thought. This body of economic knowledge has followed the relevant events (the development of fractional-reserve banking and the recurring cycles of boom and recession) and corresponding legal formulations with great delay. As we have seen, the study of legal principles, the analysis of their loopho ...
... thought. This body of economic knowledge has followed the relevant events (the development of fractional-reserve banking and the recurring cycles of boom and recession) and corresponding legal formulations with great delay. As we have seen, the study of legal principles, the analysis of their loopho ...
NBER WORKING PAPER SERIES FINANCIAL SECTOR PROFITABILITY AND DOUBLE-GEARING Mitsuhiro Fukao
... One of the reasons for the small gross spread is the overhang of deposit interest rate controls until the early 1990s. When the government controlled deposit rates, banks easily made money taking deposits. This is seen in Figure 4. Figure 4 decomposes the lending margin (interest earned minus intere ...
... One of the reasons for the small gross spread is the overhang of deposit interest rate controls until the early 1990s. When the government controlled deposit rates, banks easily made money taking deposits. This is seen in Figure 4. Figure 4 decomposes the lending margin (interest earned minus intere ...
Velocity of Money
... buy $1 worth of goods and services this year, but it would require $1.05 to buy the same goods or services the next year; this has the same effect as a 5% annual tax on cash holdings. ...
... buy $1 worth of goods and services this year, but it would require $1.05 to buy the same goods or services the next year; this has the same effect as a 5% annual tax on cash holdings. ...
bank opacity and information asymmetry around quarterly earnings
... By definition, when a loan is not performing it becomes non-performing loan, and if a non-performing loan is 90days or more past-due and still non-accrual then it becomes past-due and non-accrual loan. Further if a past-due or non-accrual is still not performing then bank restructure these loans and ...
... By definition, when a loan is not performing it becomes non-performing loan, and if a non-performing loan is 90days or more past-due and still non-accrual then it becomes past-due and non-accrual loan. Further if a past-due or non-accrual is still not performing then bank restructure these loans and ...
Maintaining Central-Bank Solvency under New-Style Central Banking
... is, in effect, a recapitalization of the central bank. If the central bank always pays dividends equal to net income, including when income is negative, reserves are stationary. But, if the dividend rule rules out negative dividends, the central bank may resort to an inflationary policy—issuing rese ...
... is, in effect, a recapitalization of the central bank. If the central bank always pays dividends equal to net income, including when income is negative, reserves are stationary. But, if the dividend rule rules out negative dividends, the central bank may resort to an inflationary policy—issuing rese ...
Portfolio Balance and Balance of Payments Sterilization
... "...the central bank in the country with a payments surplus would take measures to sterilize the impact of the payments imbalance on the monetary base, perhaps by offsetting open-market operations. Similarly, the country with the payments deficit would not permit the imbalance to affect its money su ...
... "...the central bank in the country with a payments surplus would take measures to sterilize the impact of the payments imbalance on the monetary base, perhaps by offsetting open-market operations. Similarly, the country with the payments deficit would not permit the imbalance to affect its money su ...
Banking Crises and Crises Dating: Theory and Evidence*
... banking crisis episode and whether the crisis was systemic or not, but just refer to the corresponding definitions in CK. In their tables, CEA report an extensive narrative supporting their crisis dating in each country. A simple counting exercise based on such narrative reveals that in 94 percent o ...
... banking crisis episode and whether the crisis was systemic or not, but just refer to the corresponding definitions in CK. In their tables, CEA report an extensive narrative supporting their crisis dating in each country. A simple counting exercise based on such narrative reveals that in 94 percent o ...
credit growth, problem loans and credit risk
... by the Spanish economy over a period as long as that considered 1, bank lending has maintained its cyclical pattern. This growth cycle matches very precisely the business cycle. Credit is not only pro-cyclical, but tends to grow faster than GDP during expansions and more slowly during recessions, wh ...
... by the Spanish economy over a period as long as that considered 1, bank lending has maintained its cyclical pattern. This growth cycle matches very precisely the business cycle. Credit is not only pro-cyclical, but tends to grow faster than GDP during expansions and more slowly during recessions, wh ...