Lecture 6 Chapter 5 PPT
... ceteris paribus, the quantity demanded of bonds (lenders) is higher - an inverse relationship • At lower prices (higher interest rates), ceteris paribus, the quantity supplied of bonds (borrowers) is lower - a positive relationship ...
... ceteris paribus, the quantity demanded of bonds (lenders) is higher - an inverse relationship • At lower prices (higher interest rates), ceteris paribus, the quantity supplied of bonds (borrowers) is lower - a positive relationship ...
The Federal Reserve And Money Supply Essay
... Apart from the upheaval in Congress, the year 1994 also signaled the beginning of another cycle of Federal Reserve monetary restraint. On February 4, 1994, Chairman Alan Greenspan announced a quarter-point hike in the Federal funds rate, the first such rise since 1989. Following that decision, inter ...
... Apart from the upheaval in Congress, the year 1994 also signaled the beginning of another cycle of Federal Reserve monetary restraint. On February 4, 1994, Chairman Alan Greenspan announced a quarter-point hike in the Federal funds rate, the first such rise since 1989. Following that decision, inter ...
Policies start to shift direction
... response this time is probably not going to be as massive in scale (unless situation in Europe deteriorates drastically) as three years ago. In 2008, the Chinese not only reduce the lending rates and reserve requirement ratio, it also announced various stimulus programs. A repeat of the above is unl ...
... response this time is probably not going to be as massive in scale (unless situation in Europe deteriorates drastically) as three years ago. In 2008, the Chinese not only reduce the lending rates and reserve requirement ratio, it also announced various stimulus programs. A repeat of the above is unl ...
Document
... What factors caused the capital inflow into the United States in the late 1990s? How did this inflow affect the supply of loanable funds and the demand for dollars in international financial markets? Capital inflows into the United States during the late 1990s, soared for three reasons. 1) The stron ...
... What factors caused the capital inflow into the United States in the late 1990s? How did this inflow affect the supply of loanable funds and the demand for dollars in international financial markets? Capital inflows into the United States during the late 1990s, soared for three reasons. 1) The stron ...
bank loans and private placements
... Generally no CUSIP number Not subject to some of the laws/requirements designed to protect investors U.S. Supreme Court Case Reves vs. Ernst & Young, Inc., 494 U.S. 56 (1990) ...
... Generally no CUSIP number Not subject to some of the laws/requirements designed to protect investors U.S. Supreme Court Case Reves vs. Ernst & Young, Inc., 494 U.S. 56 (1990) ...
financialization and structural imbalances in the global economy
... institutions. Current economic system rests upon the search for profit and accumulation of capital. What stimulates investment is, however, not just the absolute level of profits, but the rate of profit, which is the ratio of profits to investment. In the world economy, the rate of profit stayed mor ...
... institutions. Current economic system rests upon the search for profit and accumulation of capital. What stimulates investment is, however, not just the absolute level of profits, but the rate of profit, which is the ratio of profits to investment. In the world economy, the rate of profit stayed mor ...
“Fiscal Sustainability” Handout CEPR-RIETI Workshop Presenter: Prof. Wouter DEN HAAN
... More likely if debt is long-term and issued during tranquil times ...
... More likely if debt is long-term and issued during tranquil times ...
Hanke - 1 The Fed: The Great Enabler By
... During the bubble years of 2002–06, housing starts were two million per year. In consequence, an “excess supply” of about 500,000 units, or 25 percent of the annual new starts, was being created each year. These data suggest that housing prices in the 2002– 06 period should have been very weak, or d ...
... During the bubble years of 2002–06, housing starts were two million per year. In consequence, an “excess supply” of about 500,000 units, or 25 percent of the annual new starts, was being created each year. These data suggest that housing prices in the 2002– 06 period should have been very weak, or d ...
instructional objectives
... 2. Loans to commercial banks (Note: again commercial banks term is used even though the chapter analysis also applies to other thrift institutions.) B. The liability side of the balance sheet contains three major items. 1. Reserves of banks held as deposits at Federal Reserve Banks, 2. U.S. Treasury ...
... 2. Loans to commercial banks (Note: again commercial banks term is used even though the chapter analysis also applies to other thrift institutions.) B. The liability side of the balance sheet contains three major items. 1. Reserves of banks held as deposits at Federal Reserve Banks, 2. U.S. Treasury ...
Interest Rate 1 Interest Rate Interest Rate What is the interest rate
... The basic price that equals to the demand for, and supply of loanable funds in the financial markets is the interest rate. Borrowed assets include consumer goods, cash, and large assets. Large assets include property such as a building or a car. Interest is basically the charge or rental fee for the ...
... The basic price that equals to the demand for, and supply of loanable funds in the financial markets is the interest rate. Borrowed assets include consumer goods, cash, and large assets. Large assets include property such as a building or a car. Interest is basically the charge or rental fee for the ...
Insert title here
... – All nationally chartered banks are required to join the Fed. Member banks contribute funds to join the system, and receive stock in and dividends from the system in return. This ownership of the system by banks, not government, gives the Fed a high degree of political independence. ...
... – All nationally chartered banks are required to join the Fed. Member banks contribute funds to join the system, and receive stock in and dividends from the system in return. This ownership of the system by banks, not government, gives the Fed a high degree of political independence. ...
Inflation Targeting: Five Years From The Inside
... ‘The Great Moderation’: decreased volatility of global output and inflation Reasons: global division of labor, technological advances, higher energy efficiency AND better monetary policy. Many central banks either operate in an IT framework or behave as they had formal inflation targets. Cen ...
... ‘The Great Moderation’: decreased volatility of global output and inflation Reasons: global division of labor, technological advances, higher energy efficiency AND better monetary policy. Many central banks either operate in an IT framework or behave as they had formal inflation targets. Cen ...
Insert title here
... – All nationally chartered banks are required to join the Fed. Member banks contribute funds to join the system, and receive stock in and dividends from the system in return. This ownership of the system by banks, not government, gives the Fed a high degree of political independence. ...
... – All nationally chartered banks are required to join the Fed. Member banks contribute funds to join the system, and receive stock in and dividends from the system in return. This ownership of the system by banks, not government, gives the Fed a high degree of political independence. ...
Chapter 7
... • The LM curve represents all the points of equilibrium in the assets market. It shows the allocation between money and bonds at each different level of income and interest rates. • As income rises, the demand for money will also rise, which means for a given money supply, fewer assets are available ...
... • The LM curve represents all the points of equilibrium in the assets market. It shows the allocation between money and bonds at each different level of income and interest rates. • As income rises, the demand for money will also rise, which means for a given money supply, fewer assets are available ...
Power Point - U of T : Economics
... • (1) In Oct 1966: a very basic Ford Mustang cost me : $3,500.00 CAD • ■ In Oct 2013: a Mustang (basic V-6 model) – with a starting price of $22,069 (without HST: and up to $50,000 in deluxe models) • ■ i.e., a 6.30 fold increase (530.54% increase) • ■ So: we can see the extent of inflation over 47 ...
... • (1) In Oct 1966: a very basic Ford Mustang cost me : $3,500.00 CAD • ■ In Oct 2013: a Mustang (basic V-6 model) – with a starting price of $22,069 (without HST: and up to $50,000 in deluxe models) • ■ i.e., a 6.30 fold increase (530.54% increase) • ■ So: we can see the extent of inflation over 47 ...
Chapter No. 9
... excess reserves rise by same amount since no checkable deposit was created. • When Fed buys from public, some of the new reserves are required reserves for the new checkable deposits. • Conclusion: When the Fed buys securities, bank reserves will increase and the money supply potentially can rise by ...
... excess reserves rise by same amount since no checkable deposit was created. • When Fed buys from public, some of the new reserves are required reserves for the new checkable deposits. • Conclusion: When the Fed buys securities, bank reserves will increase and the money supply potentially can rise by ...
Principles of Macroeconomics
... L. Demand for money: money as medium of exchange or means of payment vs. money as an asset;; interest rate as return to not hoarding or as cost of loan; Fed accommodation, Fed intervention, and asymmetric influence of contractionary vs. expansionary monetary policy, historical conditions that have c ...
... L. Demand for money: money as medium of exchange or means of payment vs. money as an asset;; interest rate as return to not hoarding or as cost of loan; Fed accommodation, Fed intervention, and asymmetric influence of contractionary vs. expansionary monetary policy, historical conditions that have c ...
Real Interest Rate
... interest rate — and found that the natural rate has fallen from about 3.5 percent in the early 1980s to 0.5 in the second quarter of 2015, while never dropping below zero. In their calculation, the natural rate has stayed above the real rate since 2009, which can support the idea that monetary polic ...
... interest rate — and found that the natural rate has fallen from about 3.5 percent in the early 1980s to 0.5 in the second quarter of 2015, while never dropping below zero. In their calculation, the natural rate has stayed above the real rate since 2009, which can support the idea that monetary polic ...
Presentation - Federal Reserve Bank of St. Louis
... Unemployment and nonfarm payroll employment are the two workhorse indicators of U.S. labor market performance, but there are many other possible indicators. One way to account for the signal that several indicators are sending jointly is to create an index of labor market conditions. Such an index h ...
... Unemployment and nonfarm payroll employment are the two workhorse indicators of U.S. labor market performance, but there are many other possible indicators. One way to account for the signal that several indicators are sending jointly is to create an index of labor market conditions. Such an index h ...
Design failure I Booms and bust dynamics: national
... • On September 6, ECB announced it will buy unlimited amounts of government bonds. • Program is called “Outright Monetary Transactions” (OMT) • In defending OMT, Mr Draghi argued that “you have large parts of the euro area in a bad equilibrium in which you may have self-fulfilling expectations that ...
... • On September 6, ECB announced it will buy unlimited amounts of government bonds. • Program is called “Outright Monetary Transactions” (OMT) • In defending OMT, Mr Draghi argued that “you have large parts of the euro area in a bad equilibrium in which you may have self-fulfilling expectations that ...
Interest Rate
... 1. Substitution Bias- As prices increase for the fixed market basket, consumers buy less of these products and more substitutes that may not be part of the market basket. (Result: CPI may be higher than what consumers are really paying) 2. New Products- The CPI market basket may not include the newe ...
... 1. Substitution Bias- As prices increase for the fixed market basket, consumers buy less of these products and more substitutes that may not be part of the market basket. (Result: CPI may be higher than what consumers are really paying) 2. New Products- The CPI market basket may not include the newe ...
Solutions
... in the long run, the nominal economy is completely separate from the real economy. This means that in the long run, money and nominal prices have no impacts on real variables such as real GDP. The sticky in‡ation assumption in the Short Run Model implies that the Classical Dichotomy does NOT hold in ...
... in the long run, the nominal economy is completely separate from the real economy. This means that in the long run, money and nominal prices have no impacts on real variables such as real GDP. The sticky in‡ation assumption in the Short Run Model implies that the Classical Dichotomy does NOT hold in ...
comparison of monetary and fiscal policies
... also disincentivize saving and induce people to spend their money rather than save it because they get so little return on their savings. Reserve requirement: Banks are required to hold a certain percentage (cash reserve ratio, or CRR) of their deposits in reserve in order to ensure that they alw ...
... also disincentivize saving and induce people to spend their money rather than save it because they get so little return on their savings. Reserve requirement: Banks are required to hold a certain percentage (cash reserve ratio, or CRR) of their deposits in reserve in order to ensure that they alw ...
UK current account - November 2016
... (a) Data as on 30 September 2016, for the seven largest UK banks, UK-resident entities only. (b) Total assets (liabilities) includes gross reverse repo (repo) and group lending (funding). Total foreign currency assets (liabilities) calculated as total assets (liabilities) less sterling only assets ( ...
... (a) Data as on 30 September 2016, for the seven largest UK banks, UK-resident entities only. (b) Total assets (liabilities) includes gross reverse repo (repo) and group lending (funding). Total foreign currency assets (liabilities) calculated as total assets (liabilities) less sterling only assets ( ...