NBER WORKING PAPER SERIES LESSONS FROM THE DEBT-DEFLATION THEORY OF SUDDEN STOPS
... shocks to fundamentals (e.g. world interest rates, the terms of trade, or TFP) when agents are highly indebted. In turn, these high-debt states are reached with positive probability in the long run as a result of the equilibrium dynamics of the economy. (2) Collateral constraints do cause output dec ...
... shocks to fundamentals (e.g. world interest rates, the terms of trade, or TFP) when agents are highly indebted. In turn, these high-debt states are reached with positive probability in the long run as a result of the equilibrium dynamics of the economy. (2) Collateral constraints do cause output dec ...
Chapter 22
... The graph shows us that when the Federal Reserve increases the supply of money, interest rates fall. We saw in the previous chapter that there are two reasons why this is so. First, the Federal Reserve increases the supply of money by buying Treasury securities. It simply creates the reserves to pay ...
... The graph shows us that when the Federal Reserve increases the supply of money, interest rates fall. We saw in the previous chapter that there are two reasons why this is so. First, the Federal Reserve increases the supply of money by buying Treasury securities. It simply creates the reserves to pay ...
Document
... money supply in 2001, each dollar was spent approximately 9 times on average to pay for final goods and services ...
... money supply in 2001, each dollar was spent approximately 9 times on average to pay for final goods and services ...
as a PDF
... (1891, p 83) put it “the art of political economy will have vaguely defined limits and be largely non-economic in character. 6 From Classical to NeoClassical The evolution of economics from these broad Classical themes to a narrower set of what came to be called neoClassical themes started in the la ...
... (1891, p 83) put it “the art of political economy will have vaguely defined limits and be largely non-economic in character. 6 From Classical to NeoClassical The evolution of economics from these broad Classical themes to a narrower set of what came to be called neoClassical themes started in the la ...
Monetary policy, asset prices and actuarial practice
... in the inflationary process and have given more emphasis to the role that interest rate play 4. However rapid transmission may be, there must be a mechanism that transmits monetary policy changes through the economy and investment markets are likely to be part of that mechanism. The key observation ...
... in the inflationary process and have given more emphasis to the role that interest rate play 4. However rapid transmission may be, there must be a mechanism that transmits monetary policy changes through the economy and investment markets are likely to be part of that mechanism. The key observation ...
Working Paper - Hans-Böckler
... government issued fiat money has value because governments demand taxes be paid in sovereign money, thereby creating public demand it.1 This idea that the demand for sovereign money is in part due to the obligation to use it to pay taxes is uncontroversial. For instance, James Tobin (1998, p.27), o ...
... government issued fiat money has value because governments demand taxes be paid in sovereign money, thereby creating public demand it.1 This idea that the demand for sovereign money is in part due to the obligation to use it to pay taxes is uncontroversial. For instance, James Tobin (1998, p.27), o ...
C ARE CREDIT BOOMS IN EMERGING MARKETS A CONCERN? CHAPTER IV
... associated with larger fluctuations in private absorption than output, because export firms tend to be larger and much less dependent on bank credit (Tornell and Westermann, 2003), credit and the current account balance in these economies would move in opposite directions. These possibly large fluct ...
... associated with larger fluctuations in private absorption than output, because export firms tend to be larger and much less dependent on bank credit (Tornell and Westermann, 2003), credit and the current account balance in these economies would move in opposite directions. These possibly large fluct ...
Deflation and Liberty - Satoshi Nakamoto Institute
... “their” gold reserves to salvage their paper money. In fact, they have come to control these reserves through a confiscatory coup, and it is therefore not at all clear how plans for monetary reform à la Mises and Rothbard can be squared with the libertarian legal or moral principles that Rothbard ch ...
... “their” gold reserves to salvage their paper money. In fact, they have come to control these reserves through a confiscatory coup, and it is therefore not at all clear how plans for monetary reform à la Mises and Rothbard can be squared with the libertarian legal or moral principles that Rothbard ch ...
Economics of Money, Banking, and Financial Markets, 8e
... C) Structural models may allow economists to more accurately predict the impact institutional changes have on the link between monetary policy and income. D) A structural model imposes no restrictions on the way monetary policy affects the ...
... C) Structural models may allow economists to more accurately predict the impact institutional changes have on the link between monetary policy and income. D) A structural model imposes no restrictions on the way monetary policy affects the ...
Real-Wage Rigidity - Pearson Higher Education
... • In many markets, sellers have some degree of monopoly; they are price setters under monopolistic competition • Keynesians suggest that many markets are characterized by ...
... • In many markets, sellers have some degree of monopoly; they are price setters under monopolistic competition • Keynesians suggest that many markets are characterized by ...
Chapter 11
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
CH 11 PDF
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
National Bank of the Republic of Macedonia Working Paper
... indicators that could summarize and predict business cycle patterns. Moreover, the prediction of business cycle phases is very challenging given that fluctuations in macroeconomic conditions are never directly observable. A good comprehension of business cycle facts is essential to macroeconomic dec ...
... indicators that could summarize and predict business cycle patterns. Moreover, the prediction of business cycle phases is very challenging given that fluctuations in macroeconomic conditions are never directly observable. A good comprehension of business cycle facts is essential to macroeconomic dec ...
The Keynesian Framework
... economic activity during long periods of recession or depression • If economy were sufficiently depressed, could experience increases in real output without any increase in the price level • Assumed that the price level is fixed • Focused on aggregate demand and supply since full employment was irre ...
... economic activity during long periods of recession or depression • If economy were sufficiently depressed, could experience increases in real output without any increase in the price level • Assumed that the price level is fixed • Focused on aggregate demand and supply since full employment was irre ...
Allied Social Science Associations meetings Boston, MA, January 3
... marginal costs to wage costs and perfect competition on goods markets, decreases in money wages would lead to proportional decreases in the price level. In that case real wages, and according to the first ‘classical postulate’ labour demand, would remain unchanged. The problem then would consist in ...
... marginal costs to wage costs and perfect competition on goods markets, decreases in money wages would lead to proportional decreases in the price level. In that case real wages, and according to the first ‘classical postulate’ labour demand, would remain unchanged. The problem then would consist in ...
as a PDF
... Mises to substantiate the C-F view that Mises makes this suggestion. It is true that Mises says that complex phenomena can only be studied by abstracting from change and then introducing an isolated factor to provoke change (p. 248). But this is not the same as saying that a purpose of ERE is to exp ...
... Mises to substantiate the C-F view that Mises makes this suggestion. It is true that Mises says that complex phenomena can only be studied by abstracting from change and then introducing an isolated factor to provoke change (p. 248). But this is not the same as saying that a purpose of ERE is to exp ...
Adventure Works! The All-UC Group in Economic History University of California
... that the terminology of economic fluctuations is not standardized. Traditionally we speak about economic or business cycles. These concern the fluctuations of economy over time. But we speak also about economic crises and more recently fluctuations have been called as boom-busts. The definitions of ...
... that the terminology of economic fluctuations is not standardized. Traditionally we speak about economic or business cycles. These concern the fluctuations of economy over time. But we speak also about economic crises and more recently fluctuations have been called as boom-busts. The definitions of ...
- Strathprints - University of Strathclyde
... the analysis. Sraffa argued that Hayek’s account of the working of a monetary economy was fundamentally inadequate because, having introduced hidden assumptions that effectively neutralised money, Hayek had so confused himself that he failed to recognise the real source of the disturbances he was d ...
... the analysis. Sraffa argued that Hayek’s account of the working of a monetary economy was fundamentally inadequate because, having introduced hidden assumptions that effectively neutralised money, Hayek had so confused himself that he failed to recognise the real source of the disturbances he was d ...
Paper - Department of Economics | Washington University in St. Louis
... real interest rate becomes negative for several periods.4 The reason is that savings must be reallocated to lower productivity entrepreneurs, but they will only be willing to do it for a lower interest rate. To put it differently, the “demand” for loans falls, which in turn pushes down the real inter ...
... real interest rate becomes negative for several periods.4 The reason is that savings must be reallocated to lower productivity entrepreneurs, but they will only be willing to do it for a lower interest rate. To put it differently, the “demand” for loans falls, which in turn pushes down the real inter ...
Monetary Theory and Monetary Policy: Reflections on the
... The interaction between the economic situation and the development of monetary theory became most intensive during the period of hyperinflation in Germany after the First World War ending in the collapse of the currency (Mark) in November 1923. Over this debate one should not overlook the fact that ...
... The interaction between the economic situation and the development of monetary theory became most intensive during the period of hyperinflation in Germany after the First World War ending in the collapse of the currency (Mark) in November 1923. Over this debate one should not overlook the fact that ...
Expenditure & Equilibrium Output
... In reality, the size of the multiplier is about 2. That is, a sustained increase in exogenous spending of $10 billion into the U.S. economy can be expected to raise real GDP over time by about $20 billion. ...
... In reality, the size of the multiplier is about 2. That is, a sustained increase in exogenous spending of $10 billion into the U.S. economy can be expected to raise real GDP over time by about $20 billion. ...
Aggregate Demand II: Applying the IS–LM Model
... Once again, to tell the story that explains the economy’s adjustment from point A to point B, we rely on the building blocks of the IS–LM model—the Keynesian cross and the theory of liquidity preference. This time, we begin with the money market, where the monetary-policy action occurs. When the Fed ...
... Once again, to tell the story that explains the economy’s adjustment from point A to point B, we rely on the building blocks of the IS–LM model—the Keynesian cross and the theory of liquidity preference. This time, we begin with the money market, where the monetary-policy action occurs. When the Fed ...
Chapter 26
... a. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. b. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. c. Incorrect. The belief that the ...
... a. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. b. Incorrect. The belief that the velocity of money is not constant but highly predictable is associated with the monetarist school. c. Incorrect. The belief that the ...
the disappointment of expectations
... since expectations may be explicitly included in an intertemporal equilibrium model only if they are never revised or disappointed over an unlimited sequence of dates, it follows that their revision or disappointment is at the roots of intertemporal disequilibrium, i.e. of fluctuations. This can be ...
... since expectations may be explicitly included in an intertemporal equilibrium model only if they are never revised or disappointed over an unlimited sequence of dates, it follows that their revision or disappointment is at the roots of intertemporal disequilibrium, i.e. of fluctuations. This can be ...
Global Savings, Investments, and World Real
... variables that change relatively slowly over time. These variables include labour force growth, which affects investment demand, and the age structure of the world economy, which influences savings. Other variables, such as the level of financial development, also affect savings. • Since most of the ...
... variables that change relatively slowly over time. These variables include labour force growth, which affects investment demand, and the age structure of the world economy, which influences savings. Other variables, such as the level of financial development, also affect savings. • Since most of the ...