msc macro lecture slides
... • income transfers (pensions, welfare) Monetary policy • interest rates ...
... • income transfers (pensions, welfare) Monetary policy • interest rates ...
Foreign-Exchange Market and Exchange Rates
... The monetary transmission mechanism describes the paths by which changes in monetary policy affect aggregate demand. You should understand the linkages. How does the interest-rate channel of monetary policy work? How does the exchange-rate channel of monetary policy work? How do changes in asset pri ...
... The monetary transmission mechanism describes the paths by which changes in monetary policy affect aggregate demand. You should understand the linkages. How does the interest-rate channel of monetary policy work? How does the exchange-rate channel of monetary policy work? How do changes in asset pri ...
Principle of Macroeconomics - Gene Chang, University of Toledo
... • An increase in government spending crowds out the private investment. • G increases => AE goes up • Interest up • Private investment goes down => AE goes down ...
... • An increase in government spending crowds out the private investment. • G increases => AE goes up • Interest up • Private investment goes down => AE goes down ...
Thomas Piketty Academic year 2013-2014
... it is now over 2.5tr €, and rising fast • Before 2008, Federal Reserve balance sheet was also less than 1tr $; it is now almost 4.5tr $, and stable • In a few weeks after september 2008 (Lehman), both the Fed & the ECB each created around 1tr $ & 1tr € • These absolute amounts look very large, but i ...
... it is now over 2.5tr €, and rising fast • Before 2008, Federal Reserve balance sheet was also less than 1tr $; it is now almost 4.5tr $, and stable • In a few weeks after september 2008 (Lehman), both the Fed & the ECB each created around 1tr $ & 1tr € • These absolute amounts look very large, but i ...
Short Questions
... The two motives for holding money are the transaction demand for money and the asset demand for money. (2) The transaction demand for money is the demand for money as a medium of exchange. The higher the real income, the more money is needed for transactions. Hence, the money demand is positively re ...
... The two motives for holding money are the transaction demand for money and the asset demand for money. (2) The transaction demand for money is the demand for money as a medium of exchange. The higher the real income, the more money is needed for transactions. Hence, the money demand is positively re ...
F570 International Corporate Finance
... Capital outflows lead to depreciation of country’s exchange rate Depreciation of exchange rate improves competitiveness of exports Net exports rise, Income rises Model predicts that monetary policy in an economy with flexible exchange rates will be effective: monetary expansion leads to higher GDP i ...
... Capital outflows lead to depreciation of country’s exchange rate Depreciation of exchange rate improves competitiveness of exports Net exports rise, Income rises Model predicts that monetary policy in an economy with flexible exchange rates will be effective: monetary expansion leads to higher GDP i ...
Discussion section 3
... Trilemma: among the three objectives exchange rate stability, monetary policy autonomy and capital mobility, only two are possible at one time. (2) Exchange rate peg and central bank balance sheet When there is excess supply of domestic currency: central bank buys domestic currency in exchange for ...
... Trilemma: among the three objectives exchange rate stability, monetary policy autonomy and capital mobility, only two are possible at one time. (2) Exchange rate peg and central bank balance sheet When there is excess supply of domestic currency: central bank buys domestic currency in exchange for ...
Challenges Facing Central Bankers Today: A
... First, I will consider whether central banks ought to follow a rigid set of rules and standards. Second, the issue of quantitative easing and price stabilization will be addressed. Next, the issue of inflation targeting or employment targeting in achieving monetary policy goals. Then, the complicate ...
... First, I will consider whether central banks ought to follow a rigid set of rules and standards. Second, the issue of quantitative easing and price stabilization will be addressed. Next, the issue of inflation targeting or employment targeting in achieving monetary policy goals. Then, the complicate ...
Jean-Michel Maeso
... (structured products and systematic strategies) on equities, fixed income, credit and currencies (coding in Matlab and VBA) Bimensual meeting with the CIO: trade ideas proposals, tools development, projects in progress Quaterly meeting with the CEO concerning the desk development Participation to in ...
... (structured products and systematic strategies) on equities, fixed income, credit and currencies (coding in Matlab and VBA) Bimensual meeting with the CIO: trade ideas proposals, tools development, projects in progress Quaterly meeting with the CEO concerning the desk development Participation to in ...
Global fixed income
... reasonably contained. The year 2016 also saw a growing consensus that monetary policy may have found its limits. Quantitative easing can alleviate liquidity problems and provide medium-term support for asset values. But as ECB and BoJ bankers have seen with the lack of effectiveness of negative rate ...
... reasonably contained. The year 2016 also saw a growing consensus that monetary policy may have found its limits. Quantitative easing can alleviate liquidity problems and provide medium-term support for asset values. But as ECB and BoJ bankers have seen with the lack of effectiveness of negative rate ...
Section 5 REVIEW Saving-Investment Identity (Remember: One
... (I) Scenario 1: The economy of Macroland is initially in long-run equilibrium. Then the FOMC of Macroland decides to reduce interest rates through an open-market operation. (Expansionary Policy) a. Draw a graph representing the initial situation in Macroland. In your graph, be sure to include the sh ...
... (I) Scenario 1: The economy of Macroland is initially in long-run equilibrium. Then the FOMC of Macroland decides to reduce interest rates through an open-market operation. (Expansionary Policy) a. Draw a graph representing the initial situation in Macroland. In your graph, be sure to include the sh ...
American Nations - Arlington Public Schools
... Belief Bias: twist logic to make ideas fit you existing belief. Confirmation Bias: seek information that confirms, ignore contrary. ...
... Belief Bias: twist logic to make ideas fit you existing belief. Confirmation Bias: seek information that confirms, ignore contrary. ...
CHAP1.WP (Word5)
... federal funds rate. Moreover, actual interest rate confronted by the private sector is higher than zero federal fund rate (because of term premium and risk premium) shifts the LM curve further to the left resulting in further decline in output which is well below the desired natural level. Ask the s ...
... federal funds rate. Moreover, actual interest rate confronted by the private sector is higher than zero federal fund rate (because of term premium and risk premium) shifts the LM curve further to the left resulting in further decline in output which is well below the desired natural level. Ask the s ...
PDF (figures and comments)
... ▶ Congress gave the Federal Reserve the authorization to pay interest on reserves, effective October of 2008 ▶ Banks receive interest on reserves held overnight with the Federal Reserve ▶ An important tool as the Fed works to raise rates, because banks will not want to lend at a rate below what they ...
... ▶ Congress gave the Federal Reserve the authorization to pay interest on reserves, effective October of 2008 ▶ Banks receive interest on reserves held overnight with the Federal Reserve ▶ An important tool as the Fed works to raise rates, because banks will not want to lend at a rate below what they ...
Money Market
... international trade. The traders can get short term finance from banks by discounting bills of exchange. The acceptance houses and discount market help in financing foreign trade. (iii) Profitable investment: The money market helps the commercial banks to earn profit by investing their surplus funds ...
... international trade. The traders can get short term finance from banks by discounting bills of exchange. The acceptance houses and discount market help in financing foreign trade. (iii) Profitable investment: The money market helps the commercial banks to earn profit by investing their surplus funds ...
Quarterly Insights July 2016
... Neither quantitative easing (QE) nor negative interest rates are propelling the European economy. The ECB is effectively “running out of bullets”. A) Quantitative Easing (QE) The ECB has a lone mandate to aim for an inflation rate of below but close to 2% over the medium term. In January 2015, the E ...
... Neither quantitative easing (QE) nor negative interest rates are propelling the European economy. The ECB is effectively “running out of bullets”. A) Quantitative Easing (QE) The ECB has a lone mandate to aim for an inflation rate of below but close to 2% over the medium term. In January 2015, the E ...
monetary and fiscal policies - Marlboro Central School District
... loss in stability in the real value of money and other monetary items over time; uncertainty about future inflation may discourage investment and saving, and high inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Positive eff ...
... loss in stability in the real value of money and other monetary items over time; uncertainty about future inflation may discourage investment and saving, and high inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Positive eff ...
Journal of Money, Credit, and Banking Washington D.C.
... Fed to support employment following large negative shocks may explain why most FOMC members now judge a PCE inflation rate of 2 percent to be most consistent with the Committee’s dual mandate. Calculations of the effects of the zero bound depend crucially on assumptions regarding the magnitude of d ...
... Fed to support employment following large negative shocks may explain why most FOMC members now judge a PCE inflation rate of 2 percent to be most consistent with the Committee’s dual mandate. Calculations of the effects of the zero bound depend crucially on assumptions regarding the magnitude of d ...
Economist Insights GDP: Growth dependent payments
... Try asking your bank if you only need to make mortgage payments if your income is growing at 7% per annum and see how far you get. ...
... Try asking your bank if you only need to make mortgage payments if your income is growing at 7% per annum and see how far you get. ...
Achieving Economic Stability: Lessons from the Crash of 1929
... To attain this perspective, we first review the experience of the October 1929 market Crash and of the Great Depression with the intent of portraying a comprehensive picture. With this picture in place, alternative explanations of the Depression can be considered to reach some tentative conclusions ...
... To attain this perspective, we first review the experience of the October 1929 market Crash and of the Great Depression with the intent of portraying a comprehensive picture. With this picture in place, alternative explanations of the Depression can be considered to reach some tentative conclusions ...
PDF - Brown Brothers Harriman
... Last week, for just the third time in a decade, the Federal Reserve took another step toward “normalcy” by raising its target for the overnight funds rate to a new range of . % to . %. The move was so well telegraphed and anticipated that prior to the decision, the futures market had placed a % ...
... Last week, for just the third time in a decade, the Federal Reserve took another step toward “normalcy” by raising its target for the overnight funds rate to a new range of . % to . %. The move was so well telegraphed and anticipated that prior to the decision, the futures market had placed a % ...
pedagogical concerns with reserve ratios and the new tool of the fed
... less than the currencies issued by a bank that was more conservative in printing money. It was difficult for merchants to know which currency was inflated and which was not given the many hundreds of banks in existence. Counterfeit currency was another problem that existed at the time. Although the ...
... less than the currencies issued by a bank that was more conservative in printing money. It was difficult for merchants to know which currency was inflated and which was not given the many hundreds of banks in existence. Counterfeit currency was another problem that existed at the time. Although the ...
different world - Henderson Global Investors
... domestic-oriented nature of US policy. Regardless of Trump, with monetary policy now looking tired around the world, the Multi-Asset Team believes that growth, rather than central banks, is becoming the key ...
... domestic-oriented nature of US policy. Regardless of Trump, with monetary policy now looking tired around the world, the Multi-Asset Team believes that growth, rather than central banks, is becoming the key ...
Comparison of China and US` Bank Reserves and Their Implications
... to China, but to a less degree. Take the Eurozone for example, its banking assets were 2.5 times of its GDP, 4.3 times of its stock market cap, and 1.4 times of its bond market in 2013. The European stock and bond markets are anything but underdeveloped. Yet when the Euro was born in 1999, ECB set t ...
... to China, but to a less degree. Take the Eurozone for example, its banking assets were 2.5 times of its GDP, 4.3 times of its stock market cap, and 1.4 times of its bond market in 2013. The European stock and bond markets are anything but underdeveloped. Yet when the Euro was born in 1999, ECB set t ...
method or the
... sum up all assets linked or denominated in foreign currency (to analyze the economy’s resilience to exchange rate risk). ...
... sum up all assets linked or denominated in foreign currency (to analyze the economy’s resilience to exchange rate risk). ...