effect of cost push inflation on financial performance of
... In this study, utility theory explains why people engage in cross-borrowing. It is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. The theory states that people make decisions based ...
... In this study, utility theory explains why people engage in cross-borrowing. It is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. The theory states that people make decisions based ...
Global safe assets - Bank for International Settlements
... The notion that the global economy could be faced with a shortage of safe assets has become a significant theme in recent policy debates (see inter alia Caballero, 2010b, Garcia, 2011, Credit Suisse, 2011, and especially International Monetary Fund, 2012, chap. 3). Safe assets are a cornerstone of m ...
... The notion that the global economy could be faced with a shortage of safe assets has become a significant theme in recent policy debates (see inter alia Caballero, 2010b, Garcia, 2011, Credit Suisse, 2011, and especially International Monetary Fund, 2012, chap. 3). Safe assets are a cornerstone of m ...
Long-duration Bonds and Sovereign Defaults
... the disruptions in economic activity caused by a default decision. It has been argued that a sovereign default increases the borrowing cost of domestic firms and, thus, it reduces output. Using micro-level data, Arteta and Hale (2006) find that sovereign debt crises are systematically accompanied by ...
... the disruptions in economic activity caused by a default decision. It has been argued that a sovereign default increases the borrowing cost of domestic firms and, thus, it reduces output. Using micro-level data, Arteta and Hale (2006) find that sovereign debt crises are systematically accompanied by ...
MONEY MARKET EQUILIBRIUM IN THE CZECH REPUBLIC
... as food, clothing, housing, or even uncommon expenditures, for example, spending on health care and legal fees. If the price level rises, individual households and firms have to spend more money to buy the usual basket of goods and services. Therefore, to maintain the same level of liquidity as it ...
... as food, clothing, housing, or even uncommon expenditures, for example, spending on health care and legal fees. If the price level rises, individual households and firms have to spend more money to buy the usual basket of goods and services. Therefore, to maintain the same level of liquidity as it ...
P a g e 1
... significant for the stability of the banking system - not individually, but collectively as associations of savings banks and cooperative banks. That is particularly true when you consider that many small and medium-sized institutions in the euro area belong to institutional protection schemes and a ...
... significant for the stability of the banking system - not individually, but collectively as associations of savings banks and cooperative banks. That is particularly true when you consider that many small and medium-sized institutions in the euro area belong to institutional protection schemes and a ...
Should monetary policy lean against the wind?
... procyclically with changes in the policy rate and with banks’ profitability and capital. As pointed out by Woodford (2011), a loan supply curve with these characteristics could be motivated in several ways. For example intermediaries may have costs for originating and servicing loans, with marginal c ...
... procyclically with changes in the policy rate and with banks’ profitability and capital. As pointed out by Woodford (2011), a loan supply curve with these characteristics could be motivated in several ways. For example intermediaries may have costs for originating and servicing loans, with marginal c ...
Interest_Rates_NY_Fed
... in unsecured loans, so the interest rates are lower, too. Auto loans, for example, carry lower rates than credit-card loans, because the lender can take possession of the car if the borrower fails to pay. When you apply for a loan, you often have to fill out a form on which you provide information t ...
... in unsecured loans, so the interest rates are lower, too. Auto loans, for example, carry lower rates than credit-card loans, because the lender can take possession of the car if the borrower fails to pay. When you apply for a loan, you often have to fill out a form on which you provide information t ...
Chapter 27
... A Change in the Quantity of Money Starting from a long-run equilibrium, suppose that the Fed increases the quantity of money by 10 percent. In the short run, the greater quantity of money lowers the nominal interest rate. With the lower interest rate, people and firms spend more. But with real GDP ...
... A Change in the Quantity of Money Starting from a long-run equilibrium, suppose that the Fed increases the quantity of money by 10 percent. In the short run, the greater quantity of money lowers the nominal interest rate. With the lower interest rate, people and firms spend more. But with real GDP ...
Change in the rules regarding limitations for collateral in the form of
... was appropriate, from a risk point of view, to aim at diversification in the collateral volume pledged to the Riksbank by its counterparties. One means of achieving this aim is to limit the share of the counterparty’s collateral that is issued by the same counterparty or by a group of closely-relate ...
... was appropriate, from a risk point of view, to aim at diversification in the collateral volume pledged to the Riksbank by its counterparties. One means of achieving this aim is to limit the share of the counterparty’s collateral that is issued by the same counterparty or by a group of closely-relate ...
Why Managing Inflation Risk Still Matters: A Multi
... investor. For instance, a retiree living on a fixed pension with expenses concentrated in health care (with costs rising rapidly) may face a higher implicit inflation rate and therefore much higher inflation risk than an average investor. In contrast, a young investor with growing employment income ...
... investor. For instance, a retiree living on a fixed pension with expenses concentrated in health care (with costs rising rapidly) may face a higher implicit inflation rate and therefore much higher inflation risk than an average investor. In contrast, a young investor with growing employment income ...
English title
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
A MONETARY POLICY RULE BASED ON FUZZY CONTROL IN AN
... been confirmed by many empirical evidences which have shown deviations of the actual monetary policy from those derived from Taylor rule and its variants as Orphanides (2001), Arlt and Mandel (2012) have pointed out. There is also another issue with the Taylor rule which has not often been mentioned ...
... been confirmed by many empirical evidences which have shown deviations of the actual monetary policy from those derived from Taylor rule and its variants as Orphanides (2001), Arlt and Mandel (2012) have pointed out. There is also another issue with the Taylor rule which has not often been mentioned ...
Interest Rates, Unemployment and Inflation
... the Bank of Canada had begun to set as early as in 1988. It can also be argued that, in contrast, fiscal policy had been on the right course. The structural fiscal balance had been improving every year after 1985, and as of 1989 the debt-to-GDP ratio had been stabilized. The comparison with US event ...
... the Bank of Canada had begun to set as early as in 1988. It can also be argued that, in contrast, fiscal policy had been on the right course. The structural fiscal balance had been improving every year after 1985, and as of 1989 the debt-to-GDP ratio had been stabilized. The comparison with US event ...
BANK OF JAMAICA Quarterly Monetary Policy Report
... The above chart presents the output gap, the gap between actual output and potential, and the NAIRU gap, the gap between Unemployment and the Non-Accelerating Inflation Rate of Unemployment (NAIRU). When output is below potential (negative output gap) inflationary pressures are negative due to econo ...
... The above chart presents the output gap, the gap between actual output and potential, and the NAIRU gap, the gap between Unemployment and the Non-Accelerating Inflation Rate of Unemployment (NAIRU). When output is below potential (negative output gap) inflationary pressures are negative due to econo ...
English title
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
MerCAtUS reSeArCh A MArket-Driven noMinAl GDP tArGetinG reGiMe
... n recent decades, there has been a worldwide shift toward market-driven economic policies, including privatization, deregulation of market access, bandwidth auctioning, congestion pricing, and tradable pollution permits. Yet monetary policy has been relatively unaffected by the “neoliberal revolutio ...
... n recent decades, there has been a worldwide shift toward market-driven economic policies, including privatization, deregulation of market access, bandwidth auctioning, congestion pricing, and tradable pollution permits. Yet monetary policy has been relatively unaffected by the “neoliberal revolutio ...
alpha bank romania sa
... The key assumptions and other key sources of uncertainty regarding estimates at the balance sheet date, that have a risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are presented below: Provisions for impairment of loans The Bank ...
... The key assumptions and other key sources of uncertainty regarding estimates at the balance sheet date, that have a risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are presented below: Provisions for impairment of loans The Bank ...
Chapter 22
... Example: In addition to R = 0.4 (trillion dollars of land…), K = 2.5 (trillion dollars of machines…), Z = 1.25 (percent of all knowledge is known to man), Un = 9 (million frictionally or structurally unemployed workers), E = 135 (million), and L = 144 (million), suppose the sensitivity of inflation ...
... Example: In addition to R = 0.4 (trillion dollars of land…), K = 2.5 (trillion dollars of machines…), Z = 1.25 (percent of all knowledge is known to man), Un = 9 (million frictionally or structurally unemployed workers), E = 135 (million), and L = 144 (million), suppose the sensitivity of inflation ...
chapter 5
... c. If the Fed does nothing, = 1. To prevent inflation from rising, Fed must reduce the money growth rate by 1 percentage point per year. ...
... c. If the Fed does nothing, = 1. To prevent inflation from rising, Fed must reduce the money growth rate by 1 percentage point per year. ...
Axel A Weber: The role of interest rates in theory and practice
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
- Munich Personal RePEc Archive
... implies a government debt level per household of $132,300 at the moment. Based on the same number of households the individual household’s average outstanding private debt came to $105,900 as per the end of 2012. Compare this to the average home sales price in the U.S. as per February 2013 which was ...
... implies a government debt level per household of $132,300 at the moment. Based on the same number of households the individual household’s average outstanding private debt came to $105,900 as per the end of 2012. Compare this to the average home sales price in the U.S. as per February 2013 which was ...
Inflation, Crisis and Money
... this model, in contrast to what Keynesian theory suggested, however, is not negative all the time. When the interest rate is high, under the substitution effect bond holding increases and thus money demand decreases. However, the wealth effect of an interest rate change could either reinforce the su ...
... this model, in contrast to what Keynesian theory suggested, however, is not negative all the time. When the interest rate is high, under the substitution effect bond holding increases and thus money demand decreases. However, the wealth effect of an interest rate change could either reinforce the su ...
Chapter 4
... are willing to sell (supply) at a given price Excess supply occurs when the amount that people are willing to sell (supply) is greater than the amount people are willing to buy (demand) at a given price Excess demand occurs when the amount that people are willing to buy (demand) is greater than the ...
... are willing to sell (supply) at a given price Excess supply occurs when the amount that people are willing to sell (supply) is greater than the amount people are willing to buy (demand) at a given price Excess demand occurs when the amount that people are willing to buy (demand) is greater than the ...
No.1 - BNR
... money based on two major characteristics of money - the medium of exchange and the store of value. He referred to these characteristics of money as ‘object’ of transaction, and ‘object’ of security. In other words, “Pigou’s basic reasons for the demand for money balances were the ‘objects’ of the pr ...
... money based on two major characteristics of money - the medium of exchange and the store of value. He referred to these characteristics of money as ‘object’ of transaction, and ‘object’ of security. In other words, “Pigou’s basic reasons for the demand for money balances were the ‘objects’ of the pr ...