Mankiw 5/e Chapter 11: Aggregate Demand II
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
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... of Canada. As housing prices have shot upwards, however, the Bank’s policy target – the rate of inflation, as determined by year-over-year growth in the Consumer Price Index (CPI) – has shown only moderate increases. There are many reasons why the growth in measured inflation has been relatively sub ...
... of Canada. As housing prices have shot upwards, however, the Bank’s policy target – the rate of inflation, as determined by year-over-year growth in the Consumer Price Index (CPI) – has shown only moderate increases. There are many reasons why the growth in measured inflation has been relatively sub ...
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... Economic theory has long recognized the interdependence of national economies. Models such as the Mundell-Fleming framework or microfounded New Keynesian approaches describe the effects that shocks to one economy may have on its trading partners (Kamin, 2010). These models, however, have often been ...
... Economic theory has long recognized the interdependence of national economies. Models such as the Mundell-Fleming framework or microfounded New Keynesian approaches describe the effects that shocks to one economy may have on its trading partners (Kamin, 2010). These models, however, have often been ...
NBER WORKING PAPER SERIES MONETARY-FISCAL POLICY INTERACTIONS BEYOND
... or lower the expected present value of surpluses plus seigniorage. This intertemporal link between tax rates and the government’s budget represents a new type of Laffer curve that, under the fiscal theory, is central to determining the impacts of fiscal changes on the economy. Microeconomic public fi ...
... or lower the expected present value of surpluses plus seigniorage. This intertemporal link between tax rates and the government’s budget represents a new type of Laffer curve that, under the fiscal theory, is central to determining the impacts of fiscal changes on the economy. Microeconomic public fi ...
Chapter 24 Aggregate Demand and Aggregate Supply
... budget deficit will have to be financed by borrowing. This will raise interest rates reducing consumer spending and business investment spending (crowding out). Keynesians will argue that consumption and business investment spending are not as interest rate sensitive as the monetarists claim. If mon ...
... budget deficit will have to be financed by borrowing. This will raise interest rates reducing consumer spending and business investment spending (crowding out). Keynesians will argue that consumption and business investment spending are not as interest rate sensitive as the monetarists claim. If mon ...
Monetary Institutions, Partisanship, and Inflation Targeting Bumba
... calculus based on the existing institutional structure of the central bank and the government’s own consideration of the trade-off between inflation and alternative economic goals. An important observable implication of the model is that countries are more likely to adopt inflation targeting when t ...
... calculus based on the existing institutional structure of the central bank and the government’s own consideration of the trade-off between inflation and alternative economic goals. An important observable implication of the model is that countries are more likely to adopt inflation targeting when t ...
GENERAL ECONOMICS –II
... or wastage. In the past gold was popular as a money material. Gold could be kept safely without deterioration. Of course, there are other assets like houses, factories, bonds, shares, etc., in which wealth can be stored. But money performs as a different thing to store the value. Money being the mos ...
... or wastage. In the past gold was popular as a money material. Gold could be kept safely without deterioration. Of course, there are other assets like houses, factories, bonds, shares, etc., in which wealth can be stored. But money performs as a different thing to store the value. Money being the mos ...
Monetary Conditions in the Euro Area
... impulse to the real sphere has run its course in stimulating aggregate demand. This paper takes a closer look at the leading indicator qualities of monetary conditions. For this purpose the relationship of two widely used monetary conditions indicators to the output gap as a proxy for aggregate dema ...
... impulse to the real sphere has run its course in stimulating aggregate demand. This paper takes a closer look at the leading indicator qualities of monetary conditions. For this purpose the relationship of two widely used monetary conditions indicators to the output gap as a proxy for aggregate dema ...
Chapter 9 Chapter Outline Figure 9.1 The FE line
... – Keynesian economists see slow adjustment of the price level ...
... – Keynesian economists see slow adjustment of the price level ...
CH 9 PDF
... • Consider two different levels of output – At the higher level of output, the saving curve is shifted to the right compared to the situation at the lower level of output – Since the investment curve is downward sloping, equilibrium at the higher level of output has a lower real interest rate – Thus ...
... • Consider two different levels of output – At the higher level of output, the saving curve is shifted to the right compared to the situation at the lower level of output – Since the investment curve is downward sloping, equilibrium at the higher level of output has a lower real interest rate – Thus ...
Chapter 16 Output and the Exchange Rate in the Short Run
... expected exchange rate. – If the economy starts at long-run equilibrium, a permanent change in fiscal policy has no effect on output. – It causes an immediate and permanent exchange rate jump that offsets exactly the fiscal policy’s direct effect on aggregate demand. ...
... expected exchange rate. – If the economy starts at long-run equilibrium, a permanent change in fiscal policy has no effect on output. – It causes an immediate and permanent exchange rate jump that offsets exactly the fiscal policy’s direct effect on aggregate demand. ...
Measuring Systematic Monetary Policy
... macroeconomic aggregates (Nelson and Plosser, 1982) convinced many macroeconomists that monetary shocks could not account for business cycles. If money were neutral in the long-run it could not induce permanent changes in real variables. Yet real output was, in fact, dominated by a non-stationary co ...
... macroeconomic aggregates (Nelson and Plosser, 1982) convinced many macroeconomists that monetary shocks could not account for business cycles. If money were neutral in the long-run it could not induce permanent changes in real variables. Yet real output was, in fact, dominated by a non-stationary co ...