Rethinking Macro: Reassessing Micro-Foundations
... estimates that the unemployment rate will remain above the natural rate of unemployment for a couple more years, that tends to weigh heavily on the staff’s judgmental forecast. In my experience, the staff forecast then plays a central role—maybe even an anchoring role—from which many members of the ...
... estimates that the unemployment rate will remain above the natural rate of unemployment for a couple more years, that tends to weigh heavily on the staff’s judgmental forecast. In my experience, the staff forecast then plays a central role—maybe even an anchoring role—from which many members of the ...
The Monetary Transmission Mechanism: Some Answers and Further
... effect of changes in the relative quantities of assets, rather than interest rates.3 The logic here is that because various assets are imperfect substitutes in investors’ portfolios, changes in the composition of outstanding assets brought about by monetary policy will lead to relative price changes ...
... effect of changes in the relative quantities of assets, rather than interest rates.3 The logic here is that because various assets are imperfect substitutes in investors’ portfolios, changes in the composition of outstanding assets brought about by monetary policy will lead to relative price changes ...
A G-Ppp Analysis to the Eac Monetary Integration Process
... demand shock hits one of the members of an optimum currency area, the labor will move from this country to other member countries. With high labor mobility, the labor migration between member countries will equalize wages as well as labor demand and supply in all member countries. As a result, a com ...
... demand shock hits one of the members of an optimum currency area, the labor will move from this country to other member countries. With high labor mobility, the labor migration between member countries will equalize wages as well as labor demand and supply in all member countries. As a result, a com ...
What G20 Leaders Must Do to Stabilise Our Economy and
... International Bank Charter, a World Financial Organisation, an International Insolvency Mechanism for financial institutions, or even a single global regulator. None of these proposals will come to fruition on November 15th. But it is essential to start discussing them now. Finally, doing no harm me ...
... International Bank Charter, a World Financial Organisation, an International Insolvency Mechanism for financial institutions, or even a single global regulator. None of these proposals will come to fruition on November 15th. But it is essential to start discussing them now. Finally, doing no harm me ...
Reflections on the Global Financial Crisis
... One of the papers commissioned for that 2005 conference was presented by Raghu Rajan, Director of Research at the IMF, and before that Professor of Finance at the University of Chicago. The title of his paper was: ‘Has Financial Development Made the World Riskier?’ There are a couple of interesting ...
... One of the papers commissioned for that 2005 conference was presented by Raghu Rajan, Director of Research at the IMF, and before that Professor of Finance at the University of Chicago. The title of his paper was: ‘Has Financial Development Made the World Riskier?’ There are a couple of interesting ...
West Africa's Financial Immune Deficiency* Rick Rowden
... everyone agrees that high inflation is bad and must be brought down, others make the case that there is a time when allowing moderate levels of inflation can be appropriate for developing countries during their key developmental phases, and that therefore IMF policy should permit more moderate infla ...
... everyone agrees that high inflation is bad and must be brought down, others make the case that there is a time when allowing moderate levels of inflation can be appropriate for developing countries during their key developmental phases, and that therefore IMF policy should permit more moderate infla ...
** Macroeconomic Stability of Centralized and Decentralized Exchange: Anthropological Data ** This paper revisits an anthropological and historical data set I used years ago, and tests implications about macro-economic stability. It is a companion piece to the "Reciprocal Networks" piece mentioned in the previous section.
... of precious metals have often had a highly beneficial effect upon ancient economies, as the discovery of Silver in ancient Greece and Lydia (pp. 66-67), or the introduction of silver to the Middle East in the 12th century through the banking activities of the crusading Knights Templars and Hospitali ...
... of precious metals have often had a highly beneficial effect upon ancient economies, as the discovery of Silver in ancient Greece and Lydia (pp. 66-67), or the introduction of silver to the Middle East in the 12th century through the banking activities of the crusading Knights Templars and Hospitali ...
Four observations on secular stagnation
... And now we are talking seriously about secular stagnation in Europe and the US as well, which means that it could be a very long time before ‘normal’ monetary policy resumes. Now, even in this case you can get traction if you can credibly promise higher inflation, which reduces real interest rates. ...
... And now we are talking seriously about secular stagnation in Europe and the US as well, which means that it could be a very long time before ‘normal’ monetary policy resumes. Now, even in this case you can get traction if you can credibly promise higher inflation, which reduces real interest rates. ...
The West Must Allow a Power Shift in International Organizations
... The west must allow a power shift in international organizations More than three years after the International Monetary Fund (IMF)’s governing body agreed to reform the organization’s governance so as to better reflect the increasing economic weight of dynamic emerging market economies in the world ...
... The west must allow a power shift in international organizations More than three years after the International Monetary Fund (IMF)’s governing body agreed to reform the organization’s governance so as to better reflect the increasing economic weight of dynamic emerging market economies in the world ...
2001:3 The International Monetary Fund´s quotas
... The member countries could thus continue to conduct their own fiscal policy and monetary policy to attain domestic objectives, such as full employment. The alternative would have been an international organisation with strict regulations for each respective nation. However, it was very important for ...
... The member countries could thus continue to conduct their own fiscal policy and monetary policy to attain domestic objectives, such as full employment. The alternative would have been an international organisation with strict regulations for each respective nation. However, it was very important for ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... in countries like Brazil and Argentina, where foreign debt and fiscal mismanagement led to economic catastrophes.5 Interestingly, in other thenemerging and peripheral economies, including British offshoots (Australia, Canada, New Zealand, and the United States) and small European countries (Norway an ...
... in countries like Brazil and Argentina, where foreign debt and fiscal mismanagement led to economic catastrophes.5 Interestingly, in other thenemerging and peripheral economies, including British offshoots (Australia, Canada, New Zealand, and the United States) and small European countries (Norway an ...
Milton Friedman’s Intellectual Legacy – a View from his 103 Birthday* by
... needed; that Capitalism and Freedom (1962) and Free to Choose (1980) - both produced in collaboration with his wife Rose – provide the record we are looking for; and perhaps that, in hindsight, he was a little too optimistic about how his preferred economic system would work. But to a historian of e ...
... needed; that Capitalism and Freedom (1962) and Free to Choose (1980) - both produced in collaboration with his wife Rose – provide the record we are looking for; and perhaps that, in hindsight, he was a little too optimistic about how his preferred economic system would work. But to a historian of e ...
AS` Section A: Question 1
... • The real ER also definitely appreciates, as the increase in G increases domestic prices. ...
... • The real ER also definitely appreciates, as the increase in G increases domestic prices. ...
Chapter 2
... The foreign exchange market is an informal, over-the-counter and around-the-clock market. ...
... The foreign exchange market is an informal, over-the-counter and around-the-clock market. ...
The Natural Rate of Interest is Zero
... words a state-issued currency convertible only into itself (Keynes, 1930), as opposed to a fixed exchange rate policy such as a gold standard or other convertibility to any other commodity or currency (no currency boards, pegged currencies, or monetary unions) fixed by the state of issue. Examples o ...
... words a state-issued currency convertible only into itself (Keynes, 1930), as opposed to a fixed exchange rate policy such as a gold standard or other convertibility to any other commodity or currency (no currency boards, pegged currencies, or monetary unions) fixed by the state of issue. Examples o ...
1 Is a Change in the Renminbi Exchange Rate in China`s Interest?1
... then ran at 3.9 per cent, and according to its Quarter 4 2004 monetary policy report the People’s Bank of China (PBOC) forecasts the rate for 2005 as accelerating further to 4 per cent. Here the decline of the dollar and hence of the renminbi against the euro, yen and other currencies, which means ...
... then ran at 3.9 per cent, and according to its Quarter 4 2004 monetary policy report the People’s Bank of China (PBOC) forecasts the rate for 2005 as accelerating further to 4 per cent. Here the decline of the dollar and hence of the renminbi against the euro, yen and other currencies, which means ...
PROBLEM SET 7 Solutions 14.02 Principles of Macroeconomics May 6, 2005
... and real exchange rates (since interest rates would decrease). Note that each policy in isolation would also improve the trade de…cit, since each would lead to a depreciation of the exchange rate (nominal and real), but there would be unwanted output e¤ects, and so the two must be used simultaneousl ...
... and real exchange rates (since interest rates would decrease). Note that each policy in isolation would also improve the trade de…cit, since each would lead to a depreciation of the exchange rate (nominal and real), but there would be unwanted output e¤ects, and so the two must be used simultaneousl ...
chapter 16 exchange-rate systems
... 19. Under a floating exchange rate system, an increase in U.S. imports of Japanese goods will cause the demand schedule for Japanese yen to: a. Increase, inducing a depreciation in the yen b. Decrease, inducing a depreciation in the yen c. Increase, inducing an appreciation in the yen d. Decrease, i ...
... 19. Under a floating exchange rate system, an increase in U.S. imports of Japanese goods will cause the demand schedule for Japanese yen to: a. Increase, inducing a depreciation in the yen b. Decrease, inducing a depreciation in the yen c. Increase, inducing an appreciation in the yen d. Decrease, i ...
R E S E A R C H ... A N D F I N A N... Discussion Paper no 19
... turned into specialists’ debate into technicalities, with all but private bankers and central bankers being excluded from the decision making circles. The arrogance of the financial elite, however, is best captured by the debate on banker management’s pay. Despite the obvious disaster in finance, it ...
... turned into specialists’ debate into technicalities, with all but private bankers and central bankers being excluded from the decision making circles. The arrogance of the financial elite, however, is best captured by the debate on banker management’s pay. Despite the obvious disaster in finance, it ...
Global imbalances, under-consumption and over
... On the one hand, international competition organised by global capital with labour forces and governments in different countries as the chess pieces intensifies the risk of ‘underconsumption’ by depressing wages, eroding working conditions, reducing budgets and limiting social protection. This proce ...
... On the one hand, international competition organised by global capital with labour forces and governments in different countries as the chess pieces intensifies the risk of ‘underconsumption’ by depressing wages, eroding working conditions, reducing budgets and limiting social protection. This proce ...
Poverty Reduction and Ecological Resilience through Genuine
... – Benabou (1996): Inequality stunts national growth rates – Aghion et al. (1999): Redistribution towards equity would increase domestic investment and stimulate growth – Skott and Auerbach (1995): Low income countries not catching up. – Bourgninon and Morrison (2002): Income divergence at best decel ...
... – Benabou (1996): Inequality stunts national growth rates – Aghion et al. (1999): Redistribution towards equity would increase domestic investment and stimulate growth – Skott and Auerbach (1995): Low income countries not catching up. – Bourgninon and Morrison (2002): Income divergence at best decel ...
What are the causes of financial crisis?
... causes problems for a nation's debtors who have borrowed to finance production facilities or have invested in real estate or equities and are faced with repayment schedules. Lower growth means lower demand, possible lower profits, and a leveling off or fall in real estate and stock values. As the sl ...
... causes problems for a nation's debtors who have borrowed to finance production facilities or have invested in real estate or equities and are faced with repayment schedules. Lower growth means lower demand, possible lower profits, and a leveling off or fall in real estate and stock values. As the sl ...
International monetary systems
International monetary systems are sets of internationally agreed rules, conventions and supporting institutions, that facilitate international trade, cross border investment and generally the reallocation of capital between nation states. They provide means of payment acceptable between buyers and sellers of different nationality, including deferred payment. To operate successfully, they need to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade and to provide means by which global imbalances can be corrected. The systems can grow organically as the collective result of numerous individual agreements between international economic factors spread over several decades. Alternatively, they can arise from a single architectural vision as happened at Bretton Woods in 1944.