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Economic terms
Economic terms

... identical definition is the relative value of the marginal unit of some good when different quantities of that good are available. Demand Curve A graphic representation of the relationship between prices and the corresponding quantities demanded per time period. Demand Deposits Checking accounts in ...
Value of Money
Value of Money

... • The same applies to employment of capital and other resources. • Since employment of all resources is unchanged, total output is also unchanged by the money supply. ...
Why is Fed Considering Paying Banks Not To Lend to
Why is Fed Considering Paying Banks Not To Lend to

investment_increases
investment_increases

... LECTURE 1 INCREASE IN INVESTMENT PROSPECTS ...
What Do Rising Interest Rates Mean for You?
What Do Rising Interest Rates Mean for You?

What the Political System Can Do to Help the Fed
What the Political System Can Do to Help the Fed

Inflation-Phobia Might Cause Stagflation “Central banks could revive
Inflation-Phobia Might Cause Stagflation “Central banks could revive

Y - Edward McPhail
Y - Edward McPhail

... 1. Deficit financed by M leads to AD shifts out, as in Fig 28.2 s 2. If deficit persists, M  continually and get P  continually, i.e.,  as in Fig 28.2 Conclusion: Deficit  , only if it is 1. Persistent 2. Financed by money creation rather than by bonds ...
Deflation Fears Are A Distraction
Deflation Fears Are A Distraction

... in October. But they will still be up 1.5% from a year ago and, as we already said, this is a supply-induced dip in inflation. Fears of Eurozone deflation seem more realistic, with consumer prices up a scant 0.4% in the past year. But Eurozone M2 is up 3% in the past year even though the European Ce ...
Circular Flow - Lindbergh Schools
Circular Flow - Lindbergh Schools

... to show the high degree of economic interdependence in our economy. Money flows in one direction while goods, services, and the factors of production flow in the opposite direction. ...
Time for a Rate Hike
Time for a Rate Hike

... looks like the PCE index will be up 0.4% in January and 1.9% compared to a year ago. And if that's not close enough, all we need in February is a mere 0.1% monthly increase and the PCE will be over the 2% mark. Meanwhile, the jobless rate is already 4.8%, exactly the level the consensus at the Fed t ...
Dust Bowl - Cloudfront.net
Dust Bowl - Cloudfront.net

... loans rather than into new machines and factories the connection between the real value of companies and their stock prices was reduced ...
IS-LM Model
IS-LM Model

... Investment - has multiple meanings, but for economists, it means using productive capacity to build capital goods (vs. consumption goods); for now treat as exogenous (given) Planned Investment - amount businesses want to spend on capital goods, including amount they want to add to their inventories; ...
Macroeconomic Adjustment Mechanisms in An Oil Based Economy: Saudi Arabia Looney, R.E.
Macroeconomic Adjustment Mechanisms in An Oil Based Economy: Saudi Arabia Looney, R.E.

... As noted oil revenues affect both the domestic and external components of the money base.04). Any changes in oil revenue will change government revenues, thereby changing the net position of the government with SAMA. Because oil revenues are denominated in dollars, a change in this figure 'Yill als ...
6.4 ppt
6.4 ppt

Chapter 14 Monetary Policy
Chapter 14 Monetary Policy

... commercial banks that borrow from the Fed. 1. An increase in the discount rate signals that borrowing reserves is more difficult and will tend to shrink excess reserves. 2. A decrease in the discount rate signals that borrowing reserves will be easier and will tend to expand excess reserves. D. For ...
Homework Assignment 3
Homework Assignment 3

1 Module 4 Glossary Term Definition Board of Governors of the Fed
1 Module 4 Glossary Term Definition Board of Governors of the Fed

Inflation - fiveless|notes
Inflation - fiveless|notes

Financial Institutions
Financial Institutions

1 - nrapmacro
1 - nrapmacro

Business Cycle
Business Cycle

... More people buy houses, which creates work for builders People buy more goods from other countries, which benefits those countries ...
Ch. 14 Inflation
Ch. 14 Inflation

...  Bucket shows real output which is adjusted for inflation so that different year’s outputs can be compared ...
ECX2203MACROECONOMICS
ECX2203MACROECONOMICS

... Identify forces that determine the growth rate of an economy. ...
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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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