NBER WORKING PAPER SERIES UNCERTAINTY AND LIQUIDITY Alberto Giovannini Working Paper No. 2296
... effects opposite to those in standard dynamic portfolio models without money. Furthermore, shifts between money and other assets that are driven by precautionary liquidity demand make nominal interest rates capture information about the uncertainty in the economy more accurately than any other price ...
... effects opposite to those in standard dynamic portfolio models without money. Furthermore, shifts between money and other assets that are driven by precautionary liquidity demand make nominal interest rates capture information about the uncertainty in the economy more accurately than any other price ...
Inflacja - E-SGH
... Two possible reactions of government: a) increase of M (easy monetary policy) to avoid the decrease in M/P and in AD. Unemployment does not grow, but the rate of inflation goes up; b) no change in M (restrictive monetary policy). Higher inflation means lower M/P, higher interest rate and the recessi ...
... Two possible reactions of government: a) increase of M (easy monetary policy) to avoid the decrease in M/P and in AD. Unemployment does not grow, but the rate of inflation goes up; b) no change in M (restrictive monetary policy). Higher inflation means lower M/P, higher interest rate and the recessi ...
Term Sheet Indian Railway Finance Corporation Limited 8.23
... Record Date for payment of interest, then the coupon rates on such Bonds shall remain unchanged; d. If on any Record Date, the original RII allotee(s)/ transferee(s) hold the Bonds under the Prospectus for an aggregate face value amount of over Rs. 10 Lakh, then the coupon rate applicable to such RI ...
... Record Date for payment of interest, then the coupon rates on such Bonds shall remain unchanged; d. If on any Record Date, the original RII allotee(s)/ transferee(s) hold the Bonds under the Prospectus for an aggregate face value amount of over Rs. 10 Lakh, then the coupon rate applicable to such RI ...
Monetary Policy with Interest on Reserves
... Why does it matter so much whether the Fed pays interest on reserves with a large balance sheet, or reverts to a traditional very small balance sheet with non-interest-paying reserves? The short answers: optimal quantity of money, and financial stability. Optimal quantity of money Milton Friedman (1 ...
... Why does it matter so much whether the Fed pays interest on reserves with a large balance sheet, or reverts to a traditional very small balance sheet with non-interest-paying reserves? The short answers: optimal quantity of money, and financial stability. Optimal quantity of money Milton Friedman (1 ...
effectiveness of monetary policy tools in
... of economic stabilization varies from one economy to another, due to differences among economic structures, divergence in degrees of development in money and capital markets resulting in differing degree of economic progress, and differences in prevailing economic conditions (Bernanke, 2005). ...
... of economic stabilization varies from one economy to another, due to differences among economic structures, divergence in degrees of development in money and capital markets resulting in differing degree of economic progress, and differences in prevailing economic conditions (Bernanke, 2005). ...
commencement of execution of the fourth bonds issue program
... The bonds shall be issued with fixed interest rate (not higher than 520 basis points) or alternatively with floating interest rate calculated with WIBOR6M or WIBOR3M rate increased by the margin determined in the Terms and Conditions of Bonds Issue (not higher than 330 basis points); interests resul ...
... The bonds shall be issued with fixed interest rate (not higher than 520 basis points) or alternatively with floating interest rate calculated with WIBOR6M or WIBOR3M rate increased by the margin determined in the Terms and Conditions of Bonds Issue (not higher than 330 basis points); interests resul ...
Monetary Policy Functions and Transmission Mechanisms: An
... rationing that arises from information asymmetries between financial institutions and the firms and consumers to which they lend. This occurs because monetary policy affects the extent of adverse selection and moral hazard that constrain credit provision. It is argued that a monetary expansion allev ...
... rationing that arises from information asymmetries between financial institutions and the firms and consumers to which they lend. This occurs because monetary policy affects the extent of adverse selection and moral hazard that constrain credit provision. It is argued that a monetary expansion allev ...
interest rate determination in china:past,present and future
... The PBC uses a mixture of quantity- and price-based instruments to manage aggregate credit supply in the economy, and has increasingly focused on guiding market rates towards desired levels using open market operations and other new instruments such as the LPR, SLF, ...
... The PBC uses a mixture of quantity- and price-based instruments to manage aggregate credit supply in the economy, and has increasingly focused on guiding market rates towards desired levels using open market operations and other new instruments such as the LPR, SLF, ...
Chapter 17
... • Borrowings: banks obtain funds by borrowing from the Federal Reserve System, other banks, and corporations; these borrowings are called: discount loans/advances (from the Fed), fed funds (from other banks), interbank offshore dollar deposits (from other banks), repurchase agreements (a.k.a., “repo ...
... • Borrowings: banks obtain funds by borrowing from the Federal Reserve System, other banks, and corporations; these borrowings are called: discount loans/advances (from the Fed), fed funds (from other banks), interbank offshore dollar deposits (from other banks), repurchase agreements (a.k.a., “repo ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... would eliminate the direct fiscal costs of the policy, leaving only the benefits from economic stimulus. Bernanke (2003) summarizes the argument for a money-financed tax cut: Isn’t it irresponsible to recommend a tax cut, given the poor state of Japanese public finances? To the contrary, from a fisc ...
... would eliminate the direct fiscal costs of the policy, leaving only the benefits from economic stimulus. Bernanke (2003) summarizes the argument for a money-financed tax cut: Isn’t it irresponsible to recommend a tax cut, given the poor state of Japanese public finances? To the contrary, from a fisc ...
Karl Brunner, Scholar: An Appreciation Allan H. Meltzer Economics
... Fifty years later, that problem is still very apparent. During 2009-12, the Federal Reserve used the monthly change in employment as its main indicator of the economy. Publication of the number early each month often resulted in strong market responses. The following month the past announcement was ...
... Fifty years later, that problem is still very apparent. During 2009-12, the Federal Reserve used the monthly change in employment as its main indicator of the economy. Publication of the number early each month often resulted in strong market responses. The following month the past announcement was ...
pertemuan 6 analisis makro dan evaluasi micro
... values can and will vary dramatically across countries • The valuation of non-domestic markets will almost certainly be more onerous because of several additional variables or constraints that must be considered such as exchange rate risk and country or political risk ...
... values can and will vary dramatically across countries • The valuation of non-domestic markets will almost certainly be more onerous because of several additional variables or constraints that must be considered such as exchange rate risk and country or political risk ...
NBER WORKING PAPER SERIES CAN CENTRAL BANK TRANSPARENCY GO TOO FAR?
... whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate information that helps the public to assess whether the central bank is taking the appropriate step ...
... whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate information that helps the public to assess whether the central bank is taking the appropriate step ...
11-1 Low-Risk Choices - St. Pius X High School
... A callable bond has a clause that allows the issuer to repay the bond early (before the maturity date) at a set amount – The amount is typically higher than the face value – If interest rates are dropping, corporations may choose to call the bonds because they can re-issue them at a lower interest r ...
... A callable bond has a clause that allows the issuer to repay the bond early (before the maturity date) at a set amount – The amount is typically higher than the face value – If interest rates are dropping, corporations may choose to call the bonds because they can re-issue them at a lower interest r ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Money in Historical Perspective
... in activity was irrefutable. We now turn to the simulation studies that compare the hypothetical behavior of the U.S.economy under an assumed constant money growth rate rule with actual economic performance. The evidence is mixed. Friedman (1960) found that a rule would have outperformed discretiona ...
... in activity was irrefutable. We now turn to the simulation studies that compare the hypothetical behavior of the U.S.economy under an assumed constant money growth rate rule with actual economic performance. The evidence is mixed. Friedman (1960) found that a rule would have outperformed discretiona ...
The Financial, Economic, Social, and Political
... economy was on the brink of a major depression. Having rapidly exhausted its conventional monetary policy tools—as the short-term policy rate was already near zero—to stimulate the U.S. economy, the Federal Reserve turned to unconventional monetary policy in the form of large scale asset purchases ( ...
... economy was on the brink of a major depression. Having rapidly exhausted its conventional monetary policy tools—as the short-term policy rate was already near zero—to stimulate the U.S. economy, the Federal Reserve turned to unconventional monetary policy in the form of large scale asset purchases ( ...
Term Structure of Interest rate
... •Long term investors tend to hold till maturity as the prices of existing bonds fall •Short term investors may reduce the average maturity of holdings by swaps to shorter maturity bonds ...
... •Long term investors tend to hold till maturity as the prices of existing bonds fall •Short term investors may reduce the average maturity of holdings by swaps to shorter maturity bonds ...
The role of the Riksbank in Swedish society (Central Bank Articles
... speech, I will take up issues relating to the Riksbank’s role in reducing the risk for financial crises and the important function of the bank system. The duties of the Riksbank The Riksbank is an authority subject to the Riksdag. The areas of responsibility that have been delegated to us in one way ...
... speech, I will take up issues relating to the Riksbank’s role in reducing the risk for financial crises and the important function of the bank system. The duties of the Riksbank The Riksbank is an authority subject to the Riksdag. The areas of responsibility that have been delegated to us in one way ...
Demography explains two-thirds of everything
... And what about countries which have a birth rate below 1.7? What should they do? Germany for example has a birth rate of 1.35, so it will get into trouble down the road. In ageing soci eties, if you want to encourage spending you have ...
... And what about countries which have a birth rate below 1.7? What should they do? Germany for example has a birth rate of 1.35, so it will get into trouble down the road. In ageing soci eties, if you want to encourage spending you have ...
Vienna vs. Chicago on Monetary Issues
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
Chapter 8 Money, Inflation, Growth, and Cycles
... supply/demand framework. The supply of money in modern economies is usually determined by the combined interactions of the monetary policy authority (central bank) and the financial system (especially commercial banks). The demand for money depends on the behavior of the households and firms that ho ...
... supply/demand framework. The supply of money in modern economies is usually determined by the combined interactions of the monetary policy authority (central bank) and the financial system (especially commercial banks). The demand for money depends on the behavior of the households and firms that ho ...
Low Inflation, Deflation, and Policies for Future Price Stability A
... monetary policy—the interest rate—is truncated. Thus combating a slump may be difficult, and economic instability could increase. Also when inflation gets negative a downward spiral can occur which lowers inflation, which raises real interest rates, which lowers inflation even further, and so on. T ...
... monetary policy—the interest rate—is truncated. Thus combating a slump may be difficult, and economic instability could increase. Also when inflation gets negative a downward spiral can occur which lowers inflation, which raises real interest rates, which lowers inflation even further, and so on. T ...
Interest rates and fiscal sustainability
... fall outside of the scope of the “conventional view” since both approaches argue that deficits may not affect national saving or interest rates. However, both nonetheless presume a loanable funds market and thus argue that sovereign governments must accept the credit terms of private investors. Rica ...
... fall outside of the scope of the “conventional view” since both approaches argue that deficits may not affect national saving or interest rates. However, both nonetheless presume a loanable funds market and thus argue that sovereign governments must accept the credit terms of private investors. Rica ...
inflation-protected bonds: a look at the new i bond series
... To try to protect their assets from inflation risk, rational investors seek returns that exceed expected rates of inflation. Such predictions are imperfect. Some investors turn to so-called “real assets,” like gold and real estate, that may increase in value during inflationary periods. These assets ...
... To try to protect their assets from inflation risk, rational investors seek returns that exceed expected rates of inflation. Such predictions are imperfect. Some investors turn to so-called “real assets,” like gold and real estate, that may increase in value during inflationary periods. These assets ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... in wages. The International Monetary Fund (IMF) concludes, however, that technological advances had an even bigger impact on the labor share of unskilled workers’ sectors than globalization as such. ...
... in wages. The International Monetary Fund (IMF) concludes, however, that technological advances had an even bigger impact on the labor share of unskilled workers’ sectors than globalization as such. ...