NBER WORKING PAPER SERIES IS-LM AND MONETARISM Michael D. Bordo Anna J. Schwartz
... (1969, 1970) offered the most critical appraisal. He did so not on grounds that its substance was flawed, but for three incidental shortcomings. One, it was an improper representation of the traditional quantity theory. Two, it was a misinterpretation of doctrinal history, of the shift from the tran ...
... (1969, 1970) offered the most critical appraisal. He did so not on grounds that its substance was flawed, but for three incidental shortcomings. One, it was an improper representation of the traditional quantity theory. Two, it was a misinterpretation of doctrinal history, of the shift from the tran ...
Uganda - COMESA Monetary Institute
... Moreover, by far the most visible and obvious power of many modern central banks is to influence market interest rates towards influencing interest rate formation in the economy via the short term interest rates without directly aiming its effects at the quantity of money. The quantity of money is u ...
... Moreover, by far the most visible and obvious power of many modern central banks is to influence market interest rates towards influencing interest rate formation in the economy via the short term interest rates without directly aiming its effects at the quantity of money. The quantity of money is u ...
A Tale of Two Cycles: Co-Fluctuations Between UK Regions and the
... not appropriate in the context of modern financial markets, where speculative transactions are a multiple of those that are linked to the real economy. Buiter (2000) has argued that foreign exchange markets tend to be a source of extraneous shocks rather than a mechanism for adjusting to fundamental ...
... not appropriate in the context of modern financial markets, where speculative transactions are a multiple of those that are linked to the real economy. Buiter (2000) has argued that foreign exchange markets tend to be a source of extraneous shocks rather than a mechanism for adjusting to fundamental ...
Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic
... From 1980 to 2000, the yen/dollar exchange rate fell from 240 yen/dollar to 102 yen/dollar, while the dollar/pound exchange rate fell from 2.22 dollar/pound to 1.62 dollar/pound. As a result, (a) the dollar appreciated relative to the yen, but depreciated relative to the pound. (b) the dollar deprec ...
... From 1980 to 2000, the yen/dollar exchange rate fell from 240 yen/dollar to 102 yen/dollar, while the dollar/pound exchange rate fell from 2.22 dollar/pound to 1.62 dollar/pound. As a result, (a) the dollar appreciated relative to the yen, but depreciated relative to the pound. (b) the dollar deprec ...
The United States as a monetary union
... At a macroeconomic level, there is evidence to suggest that US monetary union has macroeconomic contributed to greater consumption stability. Consumption has tended to be more stable in level the US than in other major industrialised economies in the last twenty years, even though output has not bee ...
... At a macroeconomic level, there is evidence to suggest that US monetary union has macroeconomic contributed to greater consumption stability. Consumption has tended to be more stable in level the US than in other major industrialised economies in the last twenty years, even though output has not bee ...
research paper series Research Paper 2011/01
... A series of financial episodes over the last couple of decades has been responsible for the resurgence of interest on the impact of financial market integration on both emerging and developing economies. It has been argued that while there might be some short-run side effects, in the long-run financ ...
... A series of financial episodes over the last couple of decades has been responsible for the resurgence of interest on the impact of financial market integration on both emerging and developing economies. It has been argued that while there might be some short-run side effects, in the long-run financ ...
Dissertation_ ESTIMATING THE RESPONSE OF REAL
... 1.4 Significant of the study The relationship between the policy instruments and the outcome of the economy such as output growth and inflation raises a lot of concern both theoretical and empirical. However, there are still many controversial opinions about the direction that macroeconomics variabl ...
... 1.4 Significant of the study The relationship between the policy instruments and the outcome of the economy such as output growth and inflation raises a lot of concern both theoretical and empirical. However, there are still many controversial opinions about the direction that macroeconomics variabl ...
argentina: the anatomy of a crisis
... First came the Mexican crisis of late 1994. Argentina was hit hard by this so-called “tequila” crisis, but with the help of the central bank, its relatively strong banking sector survived the withdrawal of deposits and after one year of sharp decline, the economy grew again in 1996. But another shoc ...
... First came the Mexican crisis of late 1994. Argentina was hit hard by this so-called “tequila” crisis, but with the help of the central bank, its relatively strong banking sector survived the withdrawal of deposits and after one year of sharp decline, the economy grew again in 1996. But another shoc ...
Fiscal policy - WorkBank247.com
... Conclusion: In open economies with international capital mobility, contractionary fiscal policy is not as particularly effective in changing the equilibrium levels of output & prices Fiscal policy can still, however, affect interest rates, exchange rates, capital flows and current account balances a ...
... Conclusion: In open economies with international capital mobility, contractionary fiscal policy is not as particularly effective in changing the equilibrium levels of output & prices Fiscal policy can still, however, affect interest rates, exchange rates, capital flows and current account balances a ...
NBER WORKING PAPER SERIES SHORT-RUN INDEPENDENCE OF MONETARY
... This paper develops an alternative theoretical framework in which monetary disturbances may play an important role in affecting interest rates and exchange rates. Unlike most previous research on the real effects of monetary shocks that has focused on a onesector macroeconomic model (such as [6] and ...
... This paper develops an alternative theoretical framework in which monetary disturbances may play an important role in affecting interest rates and exchange rates. Unlike most previous research on the real effects of monetary shocks that has focused on a onesector macroeconomic model (such as [6] and ...
The Global Economic Environment
... 29) Member states of the North American Free Trade Agreement (NAFTA) are allowed to make separate bilateral treaties with nonmember states. Answer: TRUE ...
... 29) Member states of the North American Free Trade Agreement (NAFTA) are allowed to make separate bilateral treaties with nonmember states. Answer: TRUE ...
Statutory Issue Paper No. 81 Foreign Currency Transactions and
... Some insurers engage in operations in foreign countries, with the premiums collected and claims paid in the local currency. As in any insurance operations there will at all times be uncollected premiums, policy reserves, unpaid claims, and other incomplete transactions that must be recorded in the i ...
... Some insurers engage in operations in foreign countries, with the premiums collected and claims paid in the local currency. As in any insurance operations there will at all times be uncollected premiums, policy reserves, unpaid claims, and other incomplete transactions that must be recorded in the i ...
Is Financial Development Supply-leading or demand
... Guidotti 1995) used cross-section analysis to link financial development and economic growth. According to (Barro 1991), the evidence emerging from cross-section growth regressions (also known as cross-country studies) provides pooled estimates of the effects of financial development on economic gro ...
... Guidotti 1995) used cross-section analysis to link financial development and economic growth. According to (Barro 1991), the evidence emerging from cross-section growth regressions (also known as cross-country studies) provides pooled estimates of the effects of financial development on economic gro ...
The Asian Crises Reexamined
... resulted in ill-conceived reforms such as the IMF’s ill-fated Contingent Credit Line. We focus on the events in Asia in 1997, but use the plural crises rather than the more common crisis for two reasons. One is to stress that there were both currency and financial crises and these acted to reinforce ...
... resulted in ill-conceived reforms such as the IMF’s ill-fated Contingent Credit Line. We focus on the events in Asia in 1997, but use the plural crises rather than the more common crisis for two reasons. One is to stress that there were both currency and financial crises and these acted to reinforce ...
S - FBE Moodle
... According to this version the change in the exchange rate over a specific period of time should be proportional to the relative change in price level in the two nations over the same period of time The formula used for determination of exchange rate is R1 =P1a/P0 . R0 where R1 shows exchange rate in ...
... According to this version the change in the exchange rate over a specific period of time should be proportional to the relative change in price level in the two nations over the same period of time The formula used for determination of exchange rate is R1 =P1a/P0 . R0 where R1 shows exchange rate in ...
Diasporas and Dollars
... not necessarily unequivocally good for states, as states have their own institutional economic and political interests that may differ from the narrow interests of individual remittance recipients. Second, while remittances benefit recipients, in the Third World individuals vary in access to transna ...
... not necessarily unequivocally good for states, as states have their own institutional economic and political interests that may differ from the narrow interests of individual remittance recipients. Second, while remittances benefit recipients, in the Third World individuals vary in access to transna ...
Implementation Gold Dinar: Is It Feasible?
... an asset which does not depend upon anybody's promise to pay. Portability and mystery of Gold Dinar are both important, but the most significant fact is that gold is an asset that is no-one else´s liability. Based on graph above, it was the case of Malaysia’s and United States of America. The Malays ...
... an asset which does not depend upon anybody's promise to pay. Portability and mystery of Gold Dinar are both important, but the most significant fact is that gold is an asset that is no-one else´s liability. Based on graph above, it was the case of Malaysia’s and United States of America. The Malays ...
NBER WORKING PAPER SERIES MONETARY POLICY MATTER? A NEW TEST IN
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
Emerging countries` foreign exchange reserves and accumulation
... Capital flows to the emerging countries dropped by more than USD 1,000 billion during the crisis. Some countries were relatively less affected. If all countries had been affected as much as those hardest-hit, this drop would have been twice as large. The emerging countries may consider to protecti ...
... Capital flows to the emerging countries dropped by more than USD 1,000 billion during the crisis. Some countries were relatively less affected. If all countries had been affected as much as those hardest-hit, this drop would have been twice as large. The emerging countries may consider to protecti ...
ec22 - Caritas University
... liquid and spendable forms at any point in time. It is on this notion that money forms a very important instrument which can be manipulated as a money stock variable in order to control money supply in an economy. But, the formation of money stock in any modern economy have been found to be more tha ...
... liquid and spendable forms at any point in time. It is on this notion that money forms a very important instrument which can be manipulated as a money stock variable in order to control money supply in an economy. But, the formation of money stock in any modern economy have been found to be more tha ...
PDF
... In a bid to try and avoid negative consequences associated with monetisation of the deficit, many countries in the developing world have had to increasingly rely on foreign aid inflows (Adam, 2009). Unfortunately though, as the foreign resources are converted 1 Highly variable prices increase risk a ...
... In a bid to try and avoid negative consequences associated with monetisation of the deficit, many countries in the developing world have had to increasingly rely on foreign aid inflows (Adam, 2009). Unfortunately though, as the foreign resources are converted 1 Highly variable prices increase risk a ...
ma_eco_pre_pap2_bl3 - Madhya Pradesh Bhoj Open University
... The last option was proposed in the 1970s, but would be well beyond the capability of early 21st century technology, even if various concerns about biotechnology were addressed. Sustainable options for replacing other nutrient inputs (phosphorus, potassium, etc.) are more limited. An often overlooke ...
... The last option was proposed in the 1970s, but would be well beyond the capability of early 21st century technology, even if various concerns about biotechnology were addressed. Sustainable options for replacing other nutrient inputs (phosphorus, potassium, etc.) are more limited. An often overlooke ...
The experience of three crises: the Argentine default
... could not happen and had trusted their savings to the Argentine government. The impact of the 1994/5 Tequila crisis revealed the inconsistencies in the Convertibility plan and the 2001 crisis was, paraphrasing García Márquez, just a chronicle of a death foretold (see chapter I). The same question I ...
... could not happen and had trusted their savings to the Argentine government. The impact of the 1994/5 Tequila crisis revealed the inconsistencies in the Convertibility plan and the 2001 crisis was, paraphrasing García Márquez, just a chronicle of a death foretold (see chapter I). The same question I ...
An Empirical Analysis of Foreign Exchange Reserves in Emerging
... openness and potential for resident-based capital flight from the domestic currency. Consequently, reserves should be positively correlated with such variables as the ratio of capital flows to GDP and the ratio of broad money to GDP (which signals the potential demand for foreign assets from domesti ...
... openness and potential for resident-based capital flight from the domestic currency. Consequently, reserves should be positively correlated with such variables as the ratio of capital flows to GDP and the ratio of broad money to GDP (which signals the potential demand for foreign assets from domesti ...
Open Economy Macroeconomics
... Effect of an Import Quota There is no change in the interest rate because nothing happens in the loanable funds market. There will be no change in net exports. There is no change in net foreign investment even though an import quota reduces imports. ...
... Effect of an Import Quota There is no change in the interest rate because nothing happens in the loanable funds market. There will be no change in net exports. There is no change in net foreign investment even though an import quota reduces imports. ...
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.