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Document
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... either a reserve aggregate or the federal funds rate, depending on whether the economy is in an expansion or a recession. ...
Et - Economics
Et - Economics

MS-WORD - Department of Economics
MS-WORD - Department of Economics

... (1) real and monetary factors can rarely be disentangled, especially for long-run trends; (2) and thus that the two forces -- monetary and real -- are related, and that both have to be utilized to explain those price trends. c) Marc Bloch's Peculiar Seismograph: Monetary and Demographic Changes i) T ...
Inflation is a persistent increase in the general price level
Inflation is a persistent increase in the general price level

Name 1 In The General Theory of Employment, Interest, and Money
Name 1 In The General Theory of Employment, Interest, and Money

... future. Which of the following is NOT a legitimate reason to believe this? A. The Fed will not let the money supply fall by a large amount. ...
Series: GDP (constant LCU) (NY
Series: GDP (constant LCU) (NY

... Series: Central government debt, total (% of GDP) (GB.DOD.TOTL.GD.ZS) Definition: Total debt is the entire stock of direct, government, fixed term contractual obligations to others outstanding at a particular date. It includes domestic debt (such as debt held by monetary authorities, deposit money b ...
Slides
Slides

PRESS RELEASE  SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING No: 2016-11
PRESS RELEASE SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING No: 2016-11

... account balance. Overall, economic activity is expected to remain on a moderate growth path while the current account deficit is expected to narrow further in the upcoming period. 15. The Committee assesses that the effective use of the policy tools announced in the road map of August 2015 strengthe ...
The demand for loanable funds
The demand for loanable funds

... new bond) or you might buy an existing bond from someone else in the household sector. It can even be the case that the government might own some bonds it wishes to sell. Anyone that owns existing bonds can sell them in the loanable funds market and anyone that wants to buy one can do so if he is wi ...
Economics 243
Economics 243

... policy is more effective in affecting output when there is a greater degree of capital mobility (i.e., when the BP curve is less steep)? ...
Chapter 16 - UCSB Economics
Chapter 16 - UCSB Economics

... 1) Do what the Fed did: Accommodate the demand for money by increasing Ms to make AA curve go back to where started. Back to normal. This is perhaps its most widely praised monetary policy action. 2) Could have increased government expenditure. But why do this? It takes longer, and improves Y throug ...
AP Macro 2-4 Inflation
AP Macro 2-4 Inflation

... Higher production costs increase prices A negative supply shock increases the costs of production and forces producers to increase prices. Examples: • Hurricane Katrina destroyed oil refineries and causes gas prices to go up. Companies that use gas increase their prices. ...
MULTIPLE CHOICE. Choose the one alternative
MULTIPLE CHOICE. Choose the one alternative

... A) an excess demand of bonds implies an excess demand for money. B) an excess supply of bonds implies an excess demand for money. C) the demand for bonds must equal the supply of money. D) the demand for money must equal the supply of bonds. 17) An excess demand for bonds implies A) a shortage of cu ...
Europäische Geldpolitik
Europäische Geldpolitik

... reliable “nominal anchor” for monetary policy aiming at the maintenance of price stability. The important role played by money in the overall stability oriented strategy also emphasises the responsibility of the Eurosystem for the monetary impulses to inflation, which a central bank can control more ...
MONEY MARKET EQUILIBRIUM IN THE CZECH REPUBLIC
MONEY MARKET EQUILIBRIUM IN THE CZECH REPUBLIC

Document
Document

Efficacy of Stabilization Policies
Efficacy of Stabilization Policies

B-Inflation
B-Inflation

... growth causes inflation and not the other way around since the increase in monetary growth appears to have been exogenous, the government expands the money supply to finance its expenditures. • Evidence for Latin American countries over the ten-year period 1989-1999 indicates that in every case in w ...
Midterm Exam
Midterm Exam

Public Policy and Taxation
Public Policy and Taxation

... What are Treasury bills? • Treasury bills (or T-bills) are short-term securities that mature in one year or less from their issue date. You buy T-bills for a price less than their par (face) value, and when they mature we pay you their par value. Your interest is the difference between the purchase ...
Speech: The Federal Reserve System: Balancing Independence
Speech: The Federal Reserve System: Balancing Independence

The Federal Reserve System (cont`d)
The Federal Reserve System (cont`d)

... – NOW account—an interest-bearing checking account • Savings accounts – Passbook savings account – Certificate of deposit (CD)—a document stating that a bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time • Short- and long-term loans – Line ...
Inflation – Different Types and Impacts
Inflation – Different Types and Impacts

www.uri.edu
www.uri.edu

The ECB`s Expanded Asset Purchase Programme
The ECB`s Expanded Asset Purchase Programme

... by purchasing a large quantity of assets held by insurance companies and pension funds, the central bank encourages them to rebalance their portfolios into riskier assets, such as corporate bonds or stocks. This, then, stimulates expenditure by increasing wealth and lowering borrowing costs; by purc ...
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Money supply

In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. There are several ways to define ""money,"" but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle.That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw extremely rapid increases in its money supply also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation.The nature of this causal chain is the subject of contention. Some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be found in the distributional structure of the economy.In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money (i.e., the ratio between nominal GDP and money supply) changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP.
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