Commerzbank Week in Focus
... that higher US interest rates are unlikely to push emerging markets into a crisis like in 1997/98. This is even more true as public debt has merely grown in line with GDP in the past few years (chart 2, p.2), something that many euro zone countries can only dream of. But the disadvantage for many em ...
... that higher US interest rates are unlikely to push emerging markets into a crisis like in 1997/98. This is even more true as public debt has merely grown in line with GDP in the past few years (chart 2, p.2), something that many euro zone countries can only dream of. But the disadvantage for many em ...
NBER WORKING PAPER SERIES ESTIMATED MACROECONOMIC EFFECTS OF DEFICIT TARGETING
... The response of the economy to a decrease in government purchases of goods is faster than it is for a decrease in transfer payments or an increase in the personal income tax rate. The decrease in government purchases directly affects sales of the firm sector, whereas a decrease in transfer payments ...
... The response of the economy to a decrease in government purchases of goods is faster than it is for a decrease in transfer payments or an increase in the personal income tax rate. The decrease in government purchases directly affects sales of the firm sector, whereas a decrease in transfer payments ...
The safe asset meme - Université Paris
... Lehman à excess demand for money and hence, by Walras’s Law (DeLong gives Mill precedence), excess supply of goods à the Great Recession Caballero (2006) had warned that ‘forcing a reduction in the value of safe assets [e.g., deflating bubbles] may lead to large excess demand for them with excess ...
... Lehman à excess demand for money and hence, by Walras’s Law (DeLong gives Mill precedence), excess supply of goods à the Great Recession Caballero (2006) had warned that ‘forcing a reduction in the value of safe assets [e.g., deflating bubbles] may lead to large excess demand for them with excess ...
The Role of Money in Saudi Arabia: A Dynamic Analysis
... suggested a practical way to test for relationship between money and income using Granger’s concept of causality. Since then, several researchers have applied this technique to the analysis of money-income relationship (i.e. Lee and Li (1983), and Quddus et al.(1989), among others). These studies ut ...
... suggested a practical way to test for relationship between money and income using Granger’s concept of causality. Since then, several researchers have applied this technique to the analysis of money-income relationship (i.e. Lee and Li (1983), and Quddus et al.(1989), among others). These studies ut ...
what was the role of monetary policy in the greek financial crisis
... The broad consensus is that the Greek sovereign debt crisis was caused by poor fiscal policies, with the Greek government running budget deficits to finance social programs. In the past, Greece was accustomed to doing this without dire consequence because it could escape its debts through inflationa ...
... The broad consensus is that the Greek sovereign debt crisis was caused by poor fiscal policies, with the Greek government running budget deficits to finance social programs. In the past, Greece was accustomed to doing this without dire consequence because it could escape its debts through inflationa ...
Which of the following is the most fundamental issue that economics
... a. raise the unemployment rate b. lower the inflation rate c. raise nominal interest rates d. lower private savings e. raise net exports 42. An increase in the price level will most likely cause which of the following? a. A leftward shift of the aggregate demand curve b. An increase in the demand fo ...
... a. raise the unemployment rate b. lower the inflation rate c. raise nominal interest rates d. lower private savings e. raise net exports 42. An increase in the price level will most likely cause which of the following? a. A leftward shift of the aggregate demand curve b. An increase in the demand fo ...
New Zealand’s economic reforms after 1984 L. Christopher Plantier
... keep the country set as wide as possible. However, because of data limitations on net public debt ratios, but also in order to facilitate comparison to a recent paper by Conway and Orr (2002), we limit ourselves to the six countries they studied most intensively. Our results appear robust in their s ...
... keep the country set as wide as possible. However, because of data limitations on net public debt ratios, but also in order to facilitate comparison to a recent paper by Conway and Orr (2002), we limit ourselves to the six countries they studied most intensively. Our results appear robust in their s ...
Central Bank Financial Strength in Central America
... the central government and central bank as a consolidated entity.4 For obligations in foreign currency this relationship is straightforward, as investors are likely to treat central bank borrowing and sovereign borrowing similarly, at least in terms of the underlying credit risk (Stella 1997). In th ...
... the central government and central bank as a consolidated entity.4 For obligations in foreign currency this relationship is straightforward, as investors are likely to treat central bank borrowing and sovereign borrowing similarly, at least in terms of the underlying credit risk (Stella 1997). In th ...
Chapter 2 - Test Bank 1
... in this index is a measure of inflation. Experts suggest that the CPI overstates inflation because it does not take into account the fact that people make substitutions in the goods and services they buy when prices change. To address this problem (called “substitution bias”) the BLS now changes the ...
... in this index is a measure of inflation. Experts suggest that the CPI overstates inflation because it does not take into account the fact that people make substitutions in the goods and services they buy when prices change. To address this problem (called “substitution bias”) the BLS now changes the ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Inflation: Causes and Effects
... the past. Individuals therefore should not show any greater reluctance to enter contracts of reasonably short duration than they did in earlier periods. However, the increasing variability of the inflation rate in the last decade suggests we should see either shorter contracts or devices to offset p ...
... the past. Individuals therefore should not show any greater reluctance to enter contracts of reasonably short duration than they did in earlier periods. However, the increasing variability of the inflation rate in the last decade suggests we should see either shorter contracts or devices to offset p ...
Market movers ahead
... years from now but the inflation market tends to correlate with commodity prices, partly due to technical reasons related to the short-term carry earned on inflation-adjusted bonds. Something that the ECB may highlight. The decline in oil prices also puts further downside pressure on actual inflatio ...
... years from now but the inflation market tends to correlate with commodity prices, partly due to technical reasons related to the short-term carry earned on inflation-adjusted bonds. Something that the ECB may highlight. The decline in oil prices also puts further downside pressure on actual inflatio ...
European Monetary and Financial Outlook. 26th Annual Hyman P
... Large endogenous expansion of balance sheet contained fragmentation, restored confidence. But: expansion of Eurosystem balance sheet was only temporary and non-discretionary … … so that measures lost traction as banks started actively contracting their exposures and reimbursing ECB loans, leading to ...
... Large endogenous expansion of balance sheet contained fragmentation, restored confidence. But: expansion of Eurosystem balance sheet was only temporary and non-discretionary … … so that measures lost traction as banks started actively contracting their exposures and reimbursing ECB loans, leading to ...
Inflation and its Impact on Investments
... The Fed is often credited with engineering, through monetary policy, the long period of disinflation in the U.S. that helped lead to the stock market gains of the 1990s. Starting in 1979, then-Fed Chairman Paul Volcker allowed short-term interest rates to rise continuously to break an inflationary s ...
... The Fed is often credited with engineering, through monetary policy, the long period of disinflation in the U.S. that helped lead to the stock market gains of the 1990s. Starting in 1979, then-Fed Chairman Paul Volcker allowed short-term interest rates to rise continuously to break an inflationary s ...
NBER WORKING PAPER SERIES THE ECONOMY OF ISRAEL Stanley Fischer
... account deficit (about 20% of GNP); triple digit inflation; and extensive indexation of beth wages and long ...
... account deficit (about 20% of GNP); triple digit inflation; and extensive indexation of beth wages and long ...
Determinants of Inflation in Nigeria: An Empirical Analysis
... economic history. This elusive factor is known and referred to as inflation in our economic history and this is defined by economists as a continuous rise in prices. By definition, inflation is a persistent and appreciable rise in the general level of prices (Jhingan, 2002). Not every rise in the pr ...
... economic history. This elusive factor is known and referred to as inflation in our economic history and this is defined by economists as a continuous rise in prices. By definition, inflation is a persistent and appreciable rise in the general level of prices (Jhingan, 2002). Not every rise in the pr ...
A New Keynesian Perspective on the Great
... [email protected]. http://www2.bc.edu/∼irelandp. The opinions, findings, conclusions, and recommendations expressed herein are my own and do not reflect those of the National Bureau of Economic Research. ...
... [email protected]. http://www2.bc.edu/∼irelandp. The opinions, findings, conclusions, and recommendations expressed herein are my own and do not reflect those of the National Bureau of Economic Research. ...
the Lecture Notes
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
CHAPTER 26
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
THE DECLINE OF THE FEDERAL DEBT
... What happens to the money that is now in the Treasury’s hands is crucial to under standing the workings of the debt. In general, the surplus funds from the agencies accu mulating GAS securities are simply put into the general pooi of government funds col lected by the Treasury; primarily through tax ...
... What happens to the money that is now in the Treasury’s hands is crucial to under standing the workings of the debt. In general, the surplus funds from the agencies accu mulating GAS securities are simply put into the general pooi of government funds col lected by the Treasury; primarily through tax ...
Money, Interest Rates, and Exchange Rates
... • Money is currency and bank deposits on which checks can be written. • Money supply in this class will be M1: the total amount of currency and checking deposits held by households and firms. In 2006, the U.S. total money supply was $1.39 trillion (or 10.5% of GNP). ...
... • Money is currency and bank deposits on which checks can be written. • Money supply in this class will be M1: the total amount of currency and checking deposits held by households and firms. In 2006, the U.S. total money supply was $1.39 trillion (or 10.5% of GNP). ...
PDF - Harvard Law Review
... inapplicable to money claims.4 At the same time, when short-term debt funds longer-term liabilities, a defining characteristic of banks and much of the shadow banking system, the institutions that result are inherently fragile. If money claimants withdraw their funds en masse, as they do in a run, t ...
... inapplicable to money claims.4 At the same time, when short-term debt funds longer-term liabilities, a defining characteristic of banks and much of the shadow banking system, the institutions that result are inherently fragile. If money claimants withdraw their funds en masse, as they do in a run, t ...
Italian Circuitist Approach
... banks transfer ownership of the deposits to workers, cancelling those of the entrepreneurs. In this new situation, firms remain indebted to the banks, the workers are the banks’ creditors, while bank balance sheets report the credits granted to firms on the asset side and debts to workers as a liabi ...
... banks transfer ownership of the deposits to workers, cancelling those of the entrepreneurs. In this new situation, firms remain indebted to the banks, the workers are the banks’ creditors, while bank balance sheets report the credits granted to firms on the asset side and debts to workers as a liabi ...
US Money Market Reform: The Scandi angle
... that were established in the wake of the financial crisis. However, the use of these liquidity facilities are probably still attached with some kind of stigma and it is also lending against collateral. Furthermore, it is a weekly USD facility that the ECB is offering. Hence, this can create other is ...
... that were established in the wake of the financial crisis. However, the use of these liquidity facilities are probably still attached with some kind of stigma and it is also lending against collateral. Furthermore, it is a weekly USD facility that the ECB is offering. Hence, this can create other is ...
1) The objectives of the Federal Reserve in its conduct of monetary
... (b) Monetary base (c) Federal funds interest rate (d) Discount rate ...
... (b) Monetary base (c) Federal funds interest rate (d) Discount rate ...
2-04 Money and Inflation
... nominal interest rate. – According to the quantity theory, an increase in the rate of money growth of 1 percent causes a 1-percent increase in the rate of inflation. – According to the Fisher equation, a 1-percent increase in the rate of inflation in turn causes a 1percent increase in the nominal in ...
... nominal interest rate. – According to the quantity theory, an increase in the rate of money growth of 1 percent causes a 1-percent increase in the rate of inflation. – According to the Fisher equation, a 1-percent increase in the rate of inflation in turn causes a 1percent increase in the nominal in ...