Supply and Demand - HKUST HomePage Search
... • Nominal interest rates cannot go below zero – no one will lend money at an interest rate below that of money itself. • In Japan, central bank increased money supply to get the economy out of a recession. Pushed the interest rate to zero. • Once the zero lower bound was reached monetary policy has ...
... • Nominal interest rates cannot go below zero – no one will lend money at an interest rate below that of money itself. • In Japan, central bank increased money supply to get the economy out of a recession. Pushed the interest rate to zero. • Once the zero lower bound was reached monetary policy has ...
Macroeconomic Schools of Thought
... by fluctuations in the money supply, rather than by fluctuations in consumption or investment spending. ...
... by fluctuations in the money supply, rather than by fluctuations in consumption or investment spending. ...
The Great Recession and Financial Shocks
... worse in the Great Recession than in other recessions relative to larger and older firms that had easier access to credit. Some of the slack was taken up by low quality projects (those in the hands of firms with access to credit or to their own funds), resulting in lower new investment with worse pe ...
... worse in the Great Recession than in other recessions relative to larger and older firms that had easier access to credit. Some of the slack was taken up by low quality projects (those in the hands of firms with access to credit or to their own funds), resulting in lower new investment with worse pe ...
Out of the corridor: Keynes and the crisis
... Declining investment and increasing saving sounds like a textbook Keynesian recession. This is taking place, moreover, while a great many agents are under severe liquidity constraints. The financial conditions are such as to render the automatic adjustment tendencies of free markets peculiarly ineff ...
... Declining investment and increasing saving sounds like a textbook Keynesian recession. This is taking place, moreover, while a great many agents are under severe liquidity constraints. The financial conditions are such as to render the automatic adjustment tendencies of free markets peculiarly ineff ...
Efeitos da política econômica sobre o setor industrial: uma
... expansionary credit and deposits without a corresponding effective savings (fiduciary means), caused by a banking system based on fractional reserve ratio directed by a central bank not only generated a cyclical and uncontrolled growth of the money supply, but also to materialize in the creation of ...
... expansionary credit and deposits without a corresponding effective savings (fiduciary means), caused by a banking system based on fractional reserve ratio directed by a central bank not only generated a cyclical and uncontrolled growth of the money supply, but also to materialize in the creation of ...
Interest Rate Spreads and Deviations from Purchasing Power Parity
... The theory of Purchasing Power Parity (PPP) suggests that exchange rates between currencies should reflect purchasing power with respect to commonly traded commodities across economies. For instance, if there is little difference in wheat available for purchase in India, which costs maybe 220 Indian ...
... The theory of Purchasing Power Parity (PPP) suggests that exchange rates between currencies should reflect purchasing power with respect to commonly traded commodities across economies. For instance, if there is little difference in wheat available for purchase in India, which costs maybe 220 Indian ...
ISLM_2010_post_000 - Department of Economics
... – lower volatility of output, inflation over time (until 2008) – movement from stable prices to rising prices since WW II ...
... – lower volatility of output, inflation over time (until 2008) – movement from stable prices to rising prices since WW II ...
Examine Quantity Theory of Money
... About Quantity Theory of Money The Quantity Theory was first developed by Irving Fisher in the ...
... About Quantity Theory of Money The Quantity Theory was first developed by Irving Fisher in the ...
Advances in Business Cycle Theory
... Results from surveys of managers 1. Coordination failure: firms hold back on price changes, waiting for others to go first 2. Firms delay raising prices until costs rise 3. Firms prefer to vary other product attributes, such as quality, service, or delivery lags 4. Implicit contracts: firms tacitly ...
... Results from surveys of managers 1. Coordination failure: firms hold back on price changes, waiting for others to go first 2. Firms delay raising prices until costs rise 3. Firms prefer to vary other product attributes, such as quality, service, or delivery lags 4. Implicit contracts: firms tacitly ...
Exam I from Spring 2006 with answers
... the consumption function in part II were to change to C = 11000 – 100*r + 0.7 * ( Y – T ) then the marginal propensity to save will increase. FALSE, autonomous component of the consumption function is independent of the current income. MPS measures the fraction of the change in income that will be d ...
... the consumption function in part II were to change to C = 11000 – 100*r + 0.7 * ( Y – T ) then the marginal propensity to save will increase. FALSE, autonomous component of the consumption function is independent of the current income. MPS measures the fraction of the change in income that will be d ...
Ancients/Mercantilists/Physiocrats
... •Value from land and labor, with equivalence based on land required for subsistence Anticipation of labor theory of value •Build pyramids to keep people employed (when all else fails) Government as employer of last resort Anticipation of Keynes •Early quantity theory of money •“Too little” mon ...
... •Value from land and labor, with equivalence based on land required for subsistence Anticipation of labor theory of value •Build pyramids to keep people employed (when all else fails) Government as employer of last resort Anticipation of Keynes •Early quantity theory of money •“Too little” mon ...
Economic Growth Business Cycle
... The business cycle or economic cycle refers to the ups and downs seen somewhat simultaneously in most parts of an economy. ...
... The business cycle or economic cycle refers to the ups and downs seen somewhat simultaneously in most parts of an economy. ...
Monetary Policy and the Econnomy
... of more GDP with long-run costs of more inflation: (i) Disinflation policy of 1979-80 (ii) Loose Monetary Policy: 2001-2004 (iii) Recent Tightening: 2004-present ...
... of more GDP with long-run costs of more inflation: (i) Disinflation policy of 1979-80 (ii) Loose Monetary Policy: 2001-2004 (iii) Recent Tightening: 2004-present ...
Economic Thinking in an Age of Shared Prosperity
... monetary policy as the only way out, nevertheless discovered excess leverage, or overborrowing, as a new obstacle to policy’s effectiveness. His debt-deflation theory explained how overleveraged borrowers, attempting to pay off their debts with checks drawn on their deposit accounts, would cause ban ...
... monetary policy as the only way out, nevertheless discovered excess leverage, or overborrowing, as a new obstacle to policy’s effectiveness. His debt-deflation theory explained how overleveraged borrowers, attempting to pay off their debts with checks drawn on their deposit accounts, would cause ban ...
IS LM - Yale Economics
... – Foreign trade, government spending and taxes were too small – No exogenous consumption shock From I? – Investment decline was the major shock. – Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment. A variant of the IS curve shift.) ...
... – Foreign trade, government spending and taxes were too small – No exogenous consumption shock From I? – Investment decline was the major shock. – Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment. A variant of the IS curve shift.) ...
Reconstructing Macroeconomics. Structuralist Proposals and Critiques of the Mainstream Brochure
... Brochure More information from http://www.researchandmarkets.com/reports/2162409/ ...
... Brochure More information from http://www.researchandmarkets.com/reports/2162409/ ...
The Great Crash of 2008: Causes and Consequences
... rate of interest on the general price level and not as Hayek’s theory presupposes on relative prices. With the real (natural) rate being determined by productivity and thrift, monetary expansion will only raise nominal interest rates through inflationary expectations. Given the natural rate of inter ...
... rate of interest on the general price level and not as Hayek’s theory presupposes on relative prices. With the real (natural) rate being determined by productivity and thrift, monetary expansion will only raise nominal interest rates through inflationary expectations. Given the natural rate of inter ...
The Great Crash of 2008: Causes and Consequences Deepak Lal
... rate of interest on the general price level and not as Hayek’s theory presupposes on relative prices. With the real (natural) rate being determined by productivity and thrift, monetary expansion will only raise nominal interest rates through inflationary expectations. Given the natural rate of inter ...
... rate of interest on the general price level and not as Hayek’s theory presupposes on relative prices. With the real (natural) rate being determined by productivity and thrift, monetary expansion will only raise nominal interest rates through inflationary expectations. Given the natural rate of inter ...
Economic Theorists - Vista Unified School District
... Employment, Interest, and Money • Recessions may not be self-correcting • Government spending can help to end a recession • free markets cannot be counted upon to provide ...
... Employment, Interest, and Money • Recessions may not be self-correcting • Government spending can help to end a recession • free markets cannot be counted upon to provide ...
Econ 302
... the firm is trying to maximize labor efficiency, defined as labor output per dollar spent on wages. e. the firm is choosing to adjust employment rather than wages. ...
... the firm is trying to maximize labor efficiency, defined as labor output per dollar spent on wages. e. the firm is choosing to adjust employment rather than wages. ...
09/10/07
... When, ultimately, western traffic increased to levels which could support other profitmaking transportation carriers, the railroads’ monopolistic power was soon undercut. In spite of their initial privileges, they were unable to withstand the pressure of free ...
... When, ultimately, western traffic increased to levels which could support other profitmaking transportation carriers, the railroads’ monopolistic power was soon undercut. In spite of their initial privileges, they were unable to withstand the pressure of free ...
A New Keynesian Perspective on the Great Recession
... implement a strict monetary policy through the Taylor rule, which prolonged and intensified the recession of 2007-2009 Monetary policy is limited when helping the economy respond ...
... implement a strict monetary policy through the Taylor rule, which prolonged and intensified the recession of 2007-2009 Monetary policy is limited when helping the economy respond ...
Supply and Demand - HKUST HomePage Search
... • Corporate & residential investment tends to be one of the most pro-cyclical economic variables though rising real rates during boom may tend to ameliorate these effects. • Reasons: – Investment may be a driver of business cycles due to animal spirits or advances in technology. – Financial Accelera ...
... • Corporate & residential investment tends to be one of the most pro-cyclical economic variables though rising real rates during boom may tend to ameliorate these effects. • Reasons: – Investment may be a driver of business cycles due to animal spirits or advances in technology. – Financial Accelera ...