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ESCAP High-level Policy Dialogue
ESCAP High-level Policy Dialogue

...  Challenging for countries where  commodity prices have stronger &  longer‐lasting effects on inflation since  food & energy account for a large  share of CPI basket & where pass‐ through from global commodity prices  is higher  CBs typically accommodate first‐round  effects as these price pressur ...
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Fiscal Policy - SHS Debate team
Fiscal Policy - SHS Debate team

... Well,  that  depends  on   what   their  goals  are.  Like  monetary  policy,  there  are  two  types  of  fiscal  policy:   ​ expansionary  policy  ​ and  ​ contractionary  policy​ .  Expansionary  policy  increases  the  amount  of  money  in   an  economy,  whereas  contractionary  policy  decrea ...
1 .A production possibilities frontier can shift outward if a
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... Monetary Policy in Action A. Strengths of monetary policy. 1. It is speedier and more flexible than fiscal policy since the Fed can buy and sell securities daily. 2. It is less political. Fed Board members are isolated from political pressure, since they serve 14-year terms, and policy changes are s ...
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The Great Depression
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... • The LM curve is horizontal when an increase in the money supply fails to reduce interest rates. – From 1934 to 1940, the real money supply increased from $26.0 billion to $45.8 billion while interest rates fell from 3.1% to 2.2%. – Apparently, the LM curve was not horizontal. ...
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Quasi-Commodity Money

... outcome are (1) resort to a money-back guarantee and (2) public destruction of the engraved plates used to strike the lithographs. In the first option, purchasers are promised the return of their purchase price in the event that the price of lithographs (to refer again to that example) falls below i ...
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Study Questions concerning the Phillips Curve

... This is just the reverse of Stagflation. Those two results are incompatible with the original single Phillips Curve which saw a trade-off. This is why many started referring to the 90’s a new economy. Not a new economy, just looking at the world through an out-dated theory. ...
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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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