The Theory of Relative-Price Changes, Money, and Demand Factors
... in money and rejects the Ball and Mankiw (1995) hypothesis, based on Japanese wholesale price data for 1976–1994. Presumably because Ball and Mankiw (1995) themselves present it as chiefly a supply-side theory, many people associate the success of this theory with that of the supply-side theory of ...
... in money and rejects the Ball and Mankiw (1995) hypothesis, based on Japanese wholesale price data for 1976–1994. Presumably because Ball and Mankiw (1995) themselves present it as chiefly a supply-side theory, many people associate the success of this theory with that of the supply-side theory of ...
answer key - U of L Personal Web Sites
... B) A shortage of 2000 dozen egges per week. D) A tendency for the price of eggs to increase. Ans: A 20. Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilib ...
... B) A shortage of 2000 dozen egges per week. D) A tendency for the price of eggs to increase. Ans: A 20. Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilib ...
Commentary: How Should Monetary Policy Be ∗ Michael Woodford
... principle. It is by now widely appreciated that, as first explained by Kydland and Prescott (1977) and Barro and Gordon (1983), commitment to a low average rate of inflation can achieve lower inflation than would result from purely discretionary optimizing behavior on the part of the central bank, w ...
... principle. It is by now widely appreciated that, as first explained by Kydland and Prescott (1977) and Barro and Gordon (1983), commitment to a low average rate of inflation can achieve lower inflation than would result from purely discretionary optimizing behavior on the part of the central bank, w ...
The Value of Fiat Money with an Outside Bank
... where it has no value at the end of the last period. The market structure is a clearinghouse. The backward induction predicted by rational expectations was not observed. Duffy and Ochs (1999) utilize a search theoretic model based on the work of Kiyotaki and Wright (19889) to study which of several ...
... where it has no value at the end of the last period. The market structure is a clearinghouse. The backward induction predicted by rational expectations was not observed. Duffy and Ochs (1999) utilize a search theoretic model based on the work of Kiyotaki and Wright (19889) to study which of several ...
Working Paper, No. 121 - Wirtschaftswissenschaftliche Fakultät der
... further amplified of the degree of asymmetry in monetary policy making. The ultimate outcome has been the convergence of central bank interest rates towards zero and the advent of unconventional monetary policy. There are three possible reasons for a too expansionary monetary policy during crisis, ...
... further amplified of the degree of asymmetry in monetary policy making. The ultimate outcome has been the convergence of central bank interest rates towards zero and the advent of unconventional monetary policy. There are three possible reasons for a too expansionary monetary policy during crisis, ...
The Quantity Theory of Money and Its Long Run Implications
... the stationarity of our variables, price index, nominal interest rate, money supply and real GDP. A non-stationary time series has a different mean at different points in time, and its variance increases with the sample size (Harris and Sollis (2003). A characteristic of nonstationary time series is ...
... the stationarity of our variables, price index, nominal interest rate, money supply and real GDP. A non-stationary time series has a different mean at different points in time, and its variance increases with the sample size (Harris and Sollis (2003). A characteristic of nonstationary time series is ...
0324236956_122417
... The interest-rate effect helps explain why the aggregate-demand curve slopes downward: An increase in the price level raises money demand, which raises the interest rate, which reduces investment, which reduces the aggregate quantity of goods & services demanded. ...
... The interest-rate effect helps explain why the aggregate-demand curve slopes downward: An increase in the price level raises money demand, which raises the interest rate, which reduces investment, which reduces the aggregate quantity of goods & services demanded. ...
Monetary Policy Statement December 2007 Contents
... percent for much of next year. In the medium term, despite ongoing fiscal surpluses, the likelihood of future personal tax cuts adds to the inflation outlook. There are considerable risks around our view. The price effects of the Government’s proposed emissions trading scheme add upside risk to infl ...
... percent for much of next year. In the medium term, despite ongoing fiscal surpluses, the likelihood of future personal tax cuts adds to the inflation outlook. There are considerable risks around our view. The price effects of the Government’s proposed emissions trading scheme add upside risk to infl ...
Does the Market Discipline Banks? New Evidence from
... equity as imperfect substitutes. It follows that the mix of debt in regulatory capital should isolate the role that the market plays in disciplining banks. I document that since the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) reduced the ability of the FDIC to absorb losse ...
... equity as imperfect substitutes. It follows that the mix of debt in regulatory capital should isolate the role that the market plays in disciplining banks. I document that since the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) reduced the ability of the FDIC to absorb losse ...
Folie 1 - Peter Knauer
... according to the amount of the loans granted to the holder are enabled to receive the promise in advance, that interest not paid in due time may be charged anew with interest. ...
... according to the amount of the loans granted to the holder are enabled to receive the promise in advance, that interest not paid in due time may be charged anew with interest. ...
Commentary on " Are Contemporary Central Banks
... to feel the average inflation bias that occupied so much space in academic journals has been conquered. Whether it is because they now know to just do the right thing (McCallum 1995), because they target only the natural rate of output (Blinder, 1998; Svensson, 1999), or because they have gained rep ...
... to feel the average inflation bias that occupied so much space in academic journals has been conquered. Whether it is because they now know to just do the right thing (McCallum 1995), because they target only the natural rate of output (Blinder, 1998; Svensson, 1999), or because they have gained rep ...
Gold sterilization and the recession of 1937–1938
... Unfortunately, the quantitative significance of the gold sterilization policy has never been fully assessed. Friedman and Schwartz (, p. ) maintained that ‘The combined impact of the rise in reserve requirements and – no less important – the Treasury gold-sterilization program first sharply r ...
... Unfortunately, the quantitative significance of the gold sterilization policy has never been fully assessed. Friedman and Schwartz (, p. ) maintained that ‘The combined impact of the rise in reserve requirements and – no less important – the Treasury gold-sterilization program first sharply r ...
Schroders strengthens its global quantitative equities team in Australia
... will work on all aspects of Schroders global quantitative equity strategies, including research into new product development and enhancements to the current process. Richard joins Schroders with more than 10 years experience in quantitative analysis at organisations including Macquarie Group, Perpet ...
... will work on all aspects of Schroders global quantitative equity strategies, including research into new product development and enhancements to the current process. Richard joins Schroders with more than 10 years experience in quantitative analysis at organisations including Macquarie Group, Perpet ...
Transparency and accountability of central banks
... independence is desirable from the standpoint of public policy. However, an independent central bank may be independent in some respects but highly constrained in others. It may be relatively free from short-term political pressures and enjoy a high degree of autonomy, but be constrained in the goal ...
... independence is desirable from the standpoint of public policy. However, an independent central bank may be independent in some respects but highly constrained in others. It may be relatively free from short-term political pressures and enjoy a high degree of autonomy, but be constrained in the goal ...
Chapter 17
... quantity of money that people desire to hold • Describe how the Federal Reserve’s tools of monetary policy influence market interest rates • Evaluate how expansionary and contractionary monetary policy actions affect equilibrium real GDP and the price level in the short run Copyright © 2008 Pearson ...
... quantity of money that people desire to hold • Describe how the Federal Reserve’s tools of monetary policy influence market interest rates • Evaluate how expansionary and contractionary monetary policy actions affect equilibrium real GDP and the price level in the short run Copyright © 2008 Pearson ...
Document
... If nominal money balances increase from $2 billion to $3 billion, while the price level increases from 100 to 150, real money balances will (a) have increased by 50%. (b) have decreased by 50%. (c) have increased by 100%. (d) be unchanged. If nominal money balances increase from $2 billion to $3 bil ...
... If nominal money balances increase from $2 billion to $3 billion, while the price level increases from 100 to 150, real money balances will (a) have increased by 50%. (b) have decreased by 50%. (c) have increased by 100%. (d) be unchanged. If nominal money balances increase from $2 billion to $3 bil ...
Document
... Though the countries of Eastern Europe are becoming more market-oriented, Russia and some others have high inflation because of rapid money growth Both the growth rates of money demand and money supply affect inflation, but (in cases of high inflation) usually growth of nominal money supply is the ...
... Though the countries of Eastern Europe are becoming more market-oriented, Russia and some others have high inflation because of rapid money growth Both the growth rates of money demand and money supply affect inflation, but (in cases of high inflation) usually growth of nominal money supply is the ...
Nonneutrality of Money in Classical Monetary Thought
... divided in favor of output before being fully absorbed by prices. In his words: To account, then, for this phenomenon, we must consider, that though the high price of commodities be a necessary consequence of the encrease of gold and silver, yet it follows not immediately upon that encrease; but som ...
... divided in favor of output before being fully absorbed by prices. In his words: To account, then, for this phenomenon, we must consider, that though the high price of commodities be a necessary consequence of the encrease of gold and silver, yet it follows not immediately upon that encrease; but som ...
Macroprudential Policies in Open Emerging Economies Joon-Ho Hahm, Frederic S. Mishkin,
... policy interest rate was no longer an option. The economy could be stimulated by (1) managing expectations so that the policy rate would be viewed as staying low for an extended period, thereby lowering long-term interest rates, (2) lowering risk and term premiums by purchasing securities, thereby c ...
... policy interest rate was no longer an option. The economy could be stimulated by (1) managing expectations so that the policy rate would be viewed as staying low for an extended period, thereby lowering long-term interest rates, (2) lowering risk and term premiums by purchasing securities, thereby c ...
capital theory, inflation and deflation: the austrians and monetary
... directly for consumption goods, this would not occur. However, the constraint imposed by the need to intermediate exchange with money becomes binding during deflation (Leijonhufvud 1988, p. 2 11). The explanation for this Wicksellian cumulative rot is the lag between the fall in the money supply and ...
... directly for consumption goods, this would not occur. However, the constraint imposed by the need to intermediate exchange with money becomes binding during deflation (Leijonhufvud 1988, p. 2 11). The explanation for this Wicksellian cumulative rot is the lag between the fall in the money supply and ...
Monetary Policy Statement December 2008 Contents
... in shaping today’s decision. Activity in most of our trading partners is now expected to contract or grow only very slowly over the next few quarters. Economic activity in New Zealand will be further constrained as a result, compared with our view in October. Inflation is abating here and overseas a ...
... in shaping today’s decision. Activity in most of our trading partners is now expected to contract or grow only very slowly over the next few quarters. Economic activity in New Zealand will be further constrained as a result, compared with our view in October. Inflation is abating here and overseas a ...
Objectives for Chapter 23: The Basic Theory of Monetarism Chapter
... loan. To make a new loan, the bank needs to attract borrowers. To attract borrowers, the bank lowers the interest rate it charges. Second, when the Fed buys Treasury securities, the price of the Treasury securities rises. As we saw in Chapter 22, a rise in the price of securities is the same as a de ...
... loan. To make a new loan, the bank needs to attract borrowers. To attract borrowers, the bank lowers the interest rate it charges. Second, when the Fed buys Treasury securities, the price of the Treasury securities rises. As we saw in Chapter 22, a rise in the price of securities is the same as a de ...
Options for China in a Dollar Standard World
... While China’s growth so far can be attributed to gradual market reform with substantial state guidance, some argue that maintaining robust growth will require greater openness and continued market reform. In particular, it is argued that subjecting the financial sector to market forces while reducin ...
... While China’s growth so far can be attributed to gradual market reform with substantial state guidance, some argue that maintaining robust growth will require greater openness and continued market reform. In particular, it is argued that subjecting the financial sector to market forces while reducin ...