Asset Support Policy During Crises: How Aggressive Should it Be? (2015)
... Central Bank does not require any available fiscal space to credibly commit to future interventions, it is optimal for the Central Bank to intervene to the full extent of its available resources. The cost incurred during crises is always outweighed by the benefits of higher leverage in normal times. ...
... Central Bank does not require any available fiscal space to credibly commit to future interventions, it is optimal for the Central Bank to intervene to the full extent of its available resources. The cost incurred during crises is always outweighed by the benefits of higher leverage in normal times. ...
Document
... 17. By increasing the growth rate of the money supply, the Federal Reserve can decrease the inflation rate. ANSWER: F 18. Most economists think that labor unions in the United States have contributed significantly to inflation. ANSWER: F 19. Fiscal policy cannot deal with inflation on a long-term ba ...
... 17. By increasing the growth rate of the money supply, the Federal Reserve can decrease the inflation rate. ANSWER: F 18. Most economists think that labor unions in the United States have contributed significantly to inflation. ANSWER: F 19. Fiscal policy cannot deal with inflation on a long-term ba ...
Money and Banking, Commercial Banks
... The bank rate is the rate at which the central bank discounts the bills of commercial banks. When the central bank wishes to control credit and inflation in the economy, it raises the bank rate. Increased bank rate increases the cost of borrowings of the commercial banks who in turn charge a higher ...
... The bank rate is the rate at which the central bank discounts the bills of commercial banks. When the central bank wishes to control credit and inflation in the economy, it raises the bank rate. Increased bank rate increases the cost of borrowings of the commercial banks who in turn charge a higher ...
Quasi-Commodity Money
... macroeconomic stability. But monopolistic provision is not sufficient, for a profitmaximizing monopoly supplier of fiat currency also find it profitable to expand the nominal stock of such money at a rate far in excess of that required to preserve its purchasing power. For this reason, the scarcity ...
... macroeconomic stability. But monopolistic provision is not sufficient, for a profitmaximizing monopoly supplier of fiat currency also find it profitable to expand the nominal stock of such money at a rate far in excess of that required to preserve its purchasing power. For this reason, the scarcity ...
Monetary Policy Statement June 2011 Contents
... households – particularly within Canterbury – continue to be adversely affected, it appears the negative confidence effect of the earthquake on economic activity throughout the rest of the country has been limited. The early signs of recovery noted in the March Statement have continued. Despite some ...
... households – particularly within Canterbury – continue to be adversely affected, it appears the negative confidence effect of the earthquake on economic activity throughout the rest of the country has been limited. The early signs of recovery noted in the March Statement have continued. Despite some ...
Is Deflation a Risk For Greece?
... in order to slow the deflationary spiral means credit restriction for healthy businesses, which further reduces demand, and so on. In summary, the effects of deflation can differ greatly according to the cause of the phenomenon. Furthermore, they depend on its duration. If deflation is supply-side d ...
... in order to slow the deflationary spiral means credit restriction for healthy businesses, which further reduces demand, and so on. In summary, the effects of deflation can differ greatly according to the cause of the phenomenon. Furthermore, they depend on its duration. If deflation is supply-side d ...
Real Interest Rate
... increase in value compared to the Japanese yen? a. An increase in the money supply in the U.S. b. An increase in interest rates in the U.S. c. An increase in the U.S. trade deficit with Japan d. The U.S. purchase of gold on the open market e. The sale of $2 billion dollars worth of Japanese televisi ...
... increase in value compared to the Japanese yen? a. An increase in the money supply in the U.S. b. An increase in interest rates in the U.S. c. An increase in the U.S. trade deficit with Japan d. The U.S. purchase of gold on the open market e. The sale of $2 billion dollars worth of Japanese televisi ...
The ECB`s OMT Programme and German Constitutional Concerns
... from accessing the unsecured interbank market7. This fragmentation meant that banks had to increasingly rely on the ECB for liquidity provisioning. The Target2 balances also increased dramatically, reflecting asymmetric liquidity flows within the European System of Central Banks (ESCB), up to the an ...
... from accessing the unsecured interbank market7. This fragmentation meant that banks had to increasingly rely on the ECB for liquidity provisioning. The Target2 balances also increased dramatically, reflecting asymmetric liquidity flows within the European System of Central Banks (ESCB), up to the an ...
Spillover Effect of US Quantitative Easing From the
... For decades, the liberalisation of capital markets, as well as the opening of national economies to world market forces, has stimulated the development of a globally integrated economy. One might wonder the impact of such an environment. Over time, the economic realm has shown us that the world was ...
... For decades, the liberalisation of capital markets, as well as the opening of national economies to world market forces, has stimulated the development of a globally integrated economy. One might wonder the impact of such an environment. Over time, the economic realm has shown us that the world was ...
Commitment Versus Discretion in Monetary Policy
... or policymaker finds it tempting to deviate from what an earlier plan dictated. In this example, people make a single decision: whether they wish to live near the water. Unfortunately, areas near the water are subject to flooding. The government can prevent flooding by building dams, but doing so is ...
... or policymaker finds it tempting to deviate from what an earlier plan dictated. In this example, people make a single decision: whether they wish to live near the water. Unfortunately, areas near the water are subject to flooding. The government can prevent flooding by building dams, but doing so is ...
NBER WORKING PAPER SERIES BANKS, MARKET ORGANIZATION, AND MACROECONOMIC PERFORMANCE:
... section, financial accelerators arising from endogenous collateral have been modeled by various authors, and are currently being introduced into New Keynesian DSGE models (e.g., Gertler and Kiyotaki, 2010) with a view to understanding their role in credit crises. As we shall see, there is a financia ...
... section, financial accelerators arising from endogenous collateral have been modeled by various authors, and are currently being introduced into New Keynesian DSGE models (e.g., Gertler and Kiyotaki, 2010) with a view to understanding their role in credit crises. As we shall see, there is a financia ...
Chapter 22
... lend the money out. So it continues lowering interest rates to try to attract borrowers. But because of these “pessimistic expectations”, there are no borrowers. In this case, the increase in the supply of money may not cause aggregate demand to rise. The severe recession may continue, with the Fede ...
... lend the money out. So it continues lowering interest rates to try to attract borrowers. But because of these “pessimistic expectations”, there are no borrowers. In this case, the increase in the supply of money may not cause aggregate demand to rise. The severe recession may continue, with the Fede ...
Policies and Procedures
... information must be disclosed to individuals for whom the bank has entered into an account relationship other than a loan or lease relationship. The bank's marketing department and/or outside advertising agency must be familiar with the consumer protection laws and regulations that affect advertisin ...
... information must be disclosed to individuals for whom the bank has entered into an account relationship other than a loan or lease relationship. The bank's marketing department and/or outside advertising agency must be familiar with the consumer protection laws and regulations that affect advertisin ...
Weekly Market Highlights
... was able to secure some short-term financing from the ECB’s Emergency Liquidity Assistance program, which bought Greece enough time to pay its bills until at least the next Eurogroup meeting on Monday. Elsewhere, the Bank of England issued a generally sanguine inflation report, suggesting that the B ...
... was able to secure some short-term financing from the ECB’s Emergency Liquidity Assistance program, which bought Greece enough time to pay its bills until at least the next Eurogroup meeting on Monday. Elsewhere, the Bank of England issued a generally sanguine inflation report, suggesting that the B ...
The Unemployment Bias of the New Consensus View of
... between the current and NAIRU levels of unemployment, with the purpose of bringing inflation down. In other words, no matter whether inflation is high or low, as long as it is above its desired level, the monetary authority must trigger a disinflationary process in the economy by raising the nominal ...
... between the current and NAIRU levels of unemployment, with the purpose of bringing inflation down. In other words, no matter whether inflation is high or low, as long as it is above its desired level, the monetary authority must trigger a disinflationary process in the economy by raising the nominal ...
How Effective are Monetary Policy Signals in India: Evidence from a
... Central banks emphasise on transparency of communication with the public in order to enhance the effectiveness of monetary policy. In this regard, the signalling of policy stance is of vital importance as it conveys the intent of the monetary authority and its future outlook on macro fundamentals. W ...
... Central banks emphasise on transparency of communication with the public in order to enhance the effectiveness of monetary policy. In this regard, the signalling of policy stance is of vital importance as it conveys the intent of the monetary authority and its future outlook on macro fundamentals. W ...
Is Austrian Business Cycle Theory Still Relevant?
... The basic model for Japan is that changes in the discount rate lead to changes in the interest rate gap, and that the changes in the interest rate gap lead to changes in GDP. Japan’s monetary authorities tend to focus more on discount policy than open market operations, so the discount rate is the a ...
... The basic model for Japan is that changes in the discount rate lead to changes in the interest rate gap, and that the changes in the interest rate gap lead to changes in GDP. Japan’s monetary authorities tend to focus more on discount policy than open market operations, so the discount rate is the a ...
Macroeconomic Performance - Federal Reserve Bank of San
... according to the availability of gold in the domestic economy. 9 In an open economy, convertibility to gold implies that the external sector will regulate the supply of money and the price level. The adjustment process in such cases is traditionally described by the classical price specie flow mecha ...
... according to the availability of gold in the domestic economy. 9 In an open economy, convertibility to gold implies that the external sector will regulate the supply of money and the price level. The adjustment process in such cases is traditionally described by the classical price specie flow mecha ...
How does unconventional monetary policy affect inequality
... between August 1999 and August 2000; (ii) a first phase of QE between March 2001 and March 2006 (“Phase 1”); (iii) restarting a zero interest rate policy in October and QE in November 2008, in response to the global financial crisis: these were followed by comprehensive monetary easing (CME) from 20 ...
... between August 1999 and August 2000; (ii) a first phase of QE between March 2001 and March 2006 (“Phase 1”); (iii) restarting a zero interest rate policy in October and QE in November 2008, in response to the global financial crisis: these were followed by comprehensive monetary easing (CME) from 20 ...
Gumbo
... Sticky Price Would the change from Demand 1 to Demand 2 in figure 8 raise or reduce the unemployment? Explain. Sticky Price Suppose that UPS and FedEx are competing in parcel delivery in the United States. Their revenue is represented in table 4 (in billion dollars) for when they either maintain the ...
... Sticky Price Would the change from Demand 1 to Demand 2 in figure 8 raise or reduce the unemployment? Explain. Sticky Price Suppose that UPS and FedEx are competing in parcel delivery in the United States. Their revenue is represented in table 4 (in billion dollars) for when they either maintain the ...
A Growth Perspective on Foreign Reserve Accumulation
... and thus a persistent current account surplus. As a result of privatization, the overall precautionary savings increase, so do foreign reserves. Wen (2011) tries to ‘make sense of China’s excessive foreign reserves’ by looking at household savings. He argues that a large uninsured risk (e.g. the lac ...
... and thus a persistent current account surplus. As a result of privatization, the overall precautionary savings increase, so do foreign reserves. Wen (2011) tries to ‘make sense of China’s excessive foreign reserves’ by looking at household savings. He argues that a large uninsured risk (e.g. the lac ...
A History of Money and Banking - Lecture 5 - cerge-ei
... barter –> double coincidence of wants –> expensive to transact occupational and regional division of labour –> a need to transact → commodity money as an institution facilitating transactions non-coincidence of wants –> store of value → coins in circulation: Greek, Roman, Byzantine, Carolingian empi ...
... barter –> double coincidence of wants –> expensive to transact occupational and regional division of labour –> a need to transact → commodity money as an institution facilitating transactions non-coincidence of wants –> store of value → coins in circulation: Greek, Roman, Byzantine, Carolingian empi ...
balance of payments
... – Example:A U.S. auto dealer imports a Volkswagen from Germany and pays the auto company with a check for $15,000, Volkswagen does not want to invest the money in dollar assets, but it so happens that the Bundesbank is willing to give Volkswagen German money in exchange for the $15,000 check.The Bun ...
... – Example:A U.S. auto dealer imports a Volkswagen from Germany and pays the auto company with a check for $15,000, Volkswagen does not want to invest the money in dollar assets, but it so happens that the Bundesbank is willing to give Volkswagen German money in exchange for the $15,000 check.The Bun ...