NBER WORKING PAPER SERIES Frederic S. Mishkin Working Paper 13566
... inflation rates around the 2 percent level, which is consistent with what most economists see as price stability, and the volatility of inflation has also fallen dramatically (figure 2). One concern might be that the low and stable levels of inflation might have been achieved at the expense of highe ...
... inflation rates around the 2 percent level, which is consistent with what most economists see as price stability, and the volatility of inflation has also fallen dramatically (figure 2). One concern might be that the low and stable levels of inflation might have been achieved at the expense of highe ...
Monetary Policy rePort with financial stability assessment
... to remain buoyant moving forward. Euro area GDP stagnated in Q2, with the activity level falling in Germany and Italy. In Sweden, growth has also been lower than expected and in Japan GDP fell in the first six months of the year. Improved credit conditions, an easing of fiscal policy and continued a ...
... to remain buoyant moving forward. Euro area GDP stagnated in Q2, with the activity level falling in Germany and Italy. In Sweden, growth has also been lower than expected and in Japan GDP fell in the first six months of the year. Improved credit conditions, an easing of fiscal policy and continued a ...
Re-Targeting the Fed
... spending to launch a real recovery even if the economy had no structural problems at all. Whatever our long-term problem, our immediate problem is poor NGDP growth. Just as a sharp drop in NGDP was the proximate cause of the crisis, persistently low NGDP is the proximate cause of our slow recovery. ...
... spending to launch a real recovery even if the economy had no structural problems at all. Whatever our long-term problem, our immediate problem is poor NGDP growth. Just as a sharp drop in NGDP was the proximate cause of the crisis, persistently low NGDP is the proximate cause of our slow recovery. ...
an econometric analysis of effect of changes in interest rates on
... governments normally use include monetary policy (i.e. increase or decrease in the money supply and interest rate), fiscal policy (changes in the amount of taxes and government spending) and various controls on prices, tariffs, etc. Many nations choose monetary policy as their primary tool since it ...
... governments normally use include monetary policy (i.e. increase or decrease in the money supply and interest rate), fiscal policy (changes in the amount of taxes and government spending) and various controls on prices, tariffs, etc. Many nations choose monetary policy as their primary tool since it ...
The Liquidity Trap, the Great Depression, and Unconventional Policy
... The developed economies of Japan, the United States, and the Eurozone are currently experiencing very low short-term rates, so low that they are considered to be at the “zero lower bound” of possibility. This effectively paralyzes conventional monetary policy. As a consequence, monetary authorities ...
... The developed economies of Japan, the United States, and the Eurozone are currently experiencing very low short-term rates, so low that they are considered to be at the “zero lower bound” of possibility. This effectively paralyzes conventional monetary policy. As a consequence, monetary authorities ...
(increase/decrease).
... American imports & therefore cause a(an) (increase/decrease) in (AD/AQD). 67. A change in (price level/government spending) causes a change in AQD. A change in (price level/production) causes a change in AQS. 68. An increase in AQD would result from a(n) (increase/decrease) in price level. An increa ...
... American imports & therefore cause a(an) (increase/decrease) in (AD/AQD). 67. A change in (price level/government spending) causes a change in AQD. A change in (price level/production) causes a change in AQS. 68. An increase in AQD would result from a(n) (increase/decrease) in price level. An increa ...
Volume 74 No. 4, December 2011 Contents
... Of course, many households do not (either consciously or unconsciously) take their future income into account when deciding how much to spend today. Some just behave as ‘rule-of-thumb’ consumers who purely consume their current income, and others have no capacity to do anything else, living week to ...
... Of course, many households do not (either consciously or unconsciously) take their future income into account when deciding how much to spend today. Some just behave as ‘rule-of-thumb’ consumers who purely consume their current income, and others have no capacity to do anything else, living week to ...
Hisse Senetleri 2015 Görünümü
... Fed’in ilk faiz artışını 2015’in sonlarında, hatta 2016 senesinde yapmasının daha olası ve makul olduğunu düşünüyoruz. Fed’i frenleyecek faktörler şunlar olabilir: (i) Çalışanların ücret enflasyonunda gerçekleşebilecek olası artışlar, fiyatlama gücü ve verimlilik sıkıntısı çeken ...
... Fed’in ilk faiz artışını 2015’in sonlarında, hatta 2016 senesinde yapmasının daha olası ve makul olduğunu düşünüyoruz. Fed’i frenleyecek faktörler şunlar olabilir: (i) Çalışanların ücret enflasyonunda gerçekleşebilecek olası artışlar, fiyatlama gücü ve verimlilik sıkıntısı çeken ...
a dual mandate for the federal reserve: the pursuit of price stability
... Inflation was aggravated by the oil embargo that began in October 1973 and lasted until March 1974. The annual rate of change of the consumer price index rose from 5.5 percent before the crisis to over 11 percent at the end of 1974. Inflation of this magnitude had not been seen in the United States ...
... Inflation was aggravated by the oil embargo that began in October 1973 and lasted until March 1974. The annual rate of change of the consumer price index rose from 5.5 percent before the crisis to over 11 percent at the end of 1974. Inflation of this magnitude had not been seen in the United States ...
Chapter 7 The Asset Market, Money, and Prices
... Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political instability in their countries. Policymakers shouldn’t be very concerned, since foreigners’ dollar holdings represent an interest-free loan to the United States. However, a caus ...
... Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political instability in their countries. Policymakers shouldn’t be very concerned, since foreigners’ dollar holdings represent an interest-free loan to the United States. However, a caus ...
The Social Cost of Foreign Exchange Reserves
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
A World with Higher Interest Rates
... area would be debt service for industrialized governments. Here, we identify rollover risk as a key factor for determining the size and timing of the debt service problem in the near future. Our findings suggest that countries with low debt maturity would be more prone to debt service problems than ...
... area would be debt service for industrialized governments. Here, we identify rollover risk as a key factor for determining the size and timing of the debt service problem in the near future. Our findings suggest that countries with low debt maturity would be more prone to debt service problems than ...
Teaching Intermediate Macroeconomics using the 3-Equation
... Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomics is based on what is increasi ...
... Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomics is based on what is increasi ...
CH 10 - REVIEW QUESTIONS 1. The short
... B) money supply cannot affect prices in the short run. C) money supply cannot affect output in the short run. D) money supply is irrelevant in the short run. 5. The aggregate demand curve tells us possible: A) combinations of M and Y for a given value of P. B) combinations of M and P for a given val ...
... B) money supply cannot affect prices in the short run. C) money supply cannot affect output in the short run. D) money supply is irrelevant in the short run. 5. The aggregate demand curve tells us possible: A) combinations of M and Y for a given value of P. B) combinations of M and P for a given val ...
CENTRAL BANK BALANCE SHEETS: - ECB Forum on Central Banking
... unwinding of war finance provides the most telling historical parallel to today’s situation. Between 1947 and 1966, the Federal Reserve’s balance sheet shrank by 14 percentage points relative to GDP – a prolonged process of incremental reduction. In the same period, total assets grew from $50 billio ...
... unwinding of war finance provides the most telling historical parallel to today’s situation. Between 1947 and 1966, the Federal Reserve’s balance sheet shrank by 14 percentage points relative to GDP – a prolonged process of incremental reduction. In the same period, total assets grew from $50 billio ...
Inflation and Other Risks of Unsound Money
... State intervention is not required for the proper functioning of money. In a free market, money is acquired by producing and selling goods. Money flows to producers from consumers. To consume one must have previously gained money from production. As any amount of the chosen medium of exchange is suf ...
... State intervention is not required for the proper functioning of money. In a free market, money is acquired by producing and selling goods. Money flows to producers from consumers. To consume one must have previously gained money from production. As any amount of the chosen medium of exchange is suf ...
Monetary policy and asset prices
... appear not even to be designed for transaction purposes, different assets in a portfolio maybe related in several ways. Lucas (1990) already points out possible interactions between liquidity and interest rates in an economy. Therefore, the intuitive concern arises: could monetary policy indeed affe ...
... appear not even to be designed for transaction purposes, different assets in a portfolio maybe related in several ways. Lucas (1990) already points out possible interactions between liquidity and interest rates in an economy. Therefore, the intuitive concern arises: could monetary policy indeed affe ...
The Return of Inflation…and Growth?
... TIPS instrument will provide the same realized inflation capture as longer-dated TIPS but with less interest rate sensitivity. Conversely, if an investor believes that an increase in nominal rates (excluding inflation) will be driven mainly by the market’s expectation for inflation and that real rat ...
... TIPS instrument will provide the same realized inflation capture as longer-dated TIPS but with less interest rate sensitivity. Conversely, if an investor believes that an increase in nominal rates (excluding inflation) will be driven mainly by the market’s expectation for inflation and that real rat ...
Is this money?
... • The classical model assume that producers respond to increases in money by instantly raising their prices. Suppose that it is costly to raise prices (menu costs) • Therefore, when the fed increases the money supply, producers respond to this increase in demand by increasing production rather than ...
... • The classical model assume that producers respond to increases in money by instantly raising their prices. Suppose that it is costly to raise prices (menu costs) • Therefore, when the fed increases the money supply, producers respond to this increase in demand by increasing production rather than ...
THE LAGS IN EFFECT OF MONETARY POLICY: A CASE STUDY
... Squares estimation and Instrumental Variable techniques. The study suggests that there is a significant impact of short term real interest rate on output. One percentage point rise in the short term real interest rate reduced output growth by one-fifth to one-quarter percent in the first year. While ...
... Squares estimation and Instrumental Variable techniques. The study suggests that there is a significant impact of short term real interest rate on output. One percentage point rise in the short term real interest rate reduced output growth by one-fifth to one-quarter percent in the first year. While ...
Monetary Policy - Macmillan Learning
... short-term interest rates. As a comparison of the two Source: Federal Reserve Bank of St. Louis. columns of Table 15-2 shows, the opportunity cost of holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits ...
... short-term interest rates. As a comparison of the two Source: Federal Reserve Bank of St. Louis. columns of Table 15-2 shows, the opportunity cost of holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits ...
Financial Statement Analysis of Depository
... includes: Cash in the vault, deposits with other banks, cash items in the process of collection and reserve accounts with the Federal Reserve Traditionally banks attempt to keep this account as low as possible Primary reserves since it is banks first line of defense against withdraws Generate little ...
... includes: Cash in the vault, deposits with other banks, cash items in the process of collection and reserve accounts with the Federal Reserve Traditionally banks attempt to keep this account as low as possible Primary reserves since it is banks first line of defense against withdraws Generate little ...
working paper - Mercatus Center
... balances of various people who will then start the spending process identified in the previous section. This is how the Fed attempts to affect the total supply of money: it can control the monetary base and it tries to predict how much a given change in the base will translate into a multiplied incr ...
... balances of various people who will then start the spending process identified in the previous section. This is how the Fed attempts to affect the total supply of money: it can control the monetary base and it tries to predict how much a given change in the base will translate into a multiplied incr ...