Mankiw 6e PowerPoints - University of California, Davis
... interest rate and demand for goods & services the Phillips curve, which relates inflation to the gap between output and its natural level, expected inflation, and supply shocks adaptive expectations, a simple model of inflation expectations CHAPTER 14 ...
... interest rate and demand for goods & services the Phillips curve, which relates inflation to the gap between output and its natural level, expected inflation, and supply shocks adaptive expectations, a simple model of inflation expectations CHAPTER 14 ...
Inflation & unemployment
... by increasing the quantity of money, a process of cost-push inflation continues. © 2010 Pearson Addison-Wesley ...
... by increasing the quantity of money, a process of cost-push inflation continues. © 2010 Pearson Addison-Wesley ...
M o n e t a r y ... Contents 1 May 2001
... exports have remained relatively strong. It is also unusual for New Zealand to have a low exchange rate well in advance of the world entering a slowdown phase. Thus, although aggregate global demand has eased back, New Zealand’s exports are relatively competitive, and the income earned from ...
... exports have remained relatively strong. It is also unusual for New Zealand to have a low exchange rate well in advance of the world entering a slowdown phase. Thus, although aggregate global demand has eased back, New Zealand’s exports are relatively competitive, and the income earned from ...
Teaching Intermediate Macroeconomics using the 3-Equation
... Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomics is based on what is increasi ...
... Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomics is based on what is increasi ...
4. Expansionary gaps tend to raise inflation, and recessionary gaps
... policy rule, the decline in output will be larger than if it had loosened monetary policy; however, if the recession is short, the economy will benefit in the long run by having a lower inflation rate. On the other hand, if it accommodates the decline in house prices, the recession may be milder at ...
... policy rule, the decline in output will be larger than if it had loosened monetary policy; however, if the recession is short, the economy will benefit in the long run by having a lower inflation rate. On the other hand, if it accommodates the decline in house prices, the recession may be milder at ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... unique levels of aggregate output, employment, and unemployment, denoted for obscure historical reasons as “natural” levels. Levels of aggregate output and employment above, equal to, or below their natural levels are associated with rates of inflation higher than, equal to, or less than inflation r ...
... unique levels of aggregate output, employment, and unemployment, denoted for obscure historical reasons as “natural” levels. Levels of aggregate output and employment above, equal to, or below their natural levels are associated with rates of inflation higher than, equal to, or less than inflation r ...
Aggregate Demand
... curve. In the long run, the quantity of real GDP supplied is potential GDP. As the price level rises and the money wage rate change by the same percentage, the quantity of real GDP supplied remains at potential GDP. © 2012 Pearson Education ...
... curve. In the long run, the quantity of real GDP supplied is potential GDP. As the price level rises and the money wage rate change by the same percentage, the quantity of real GDP supplied remains at potential GDP. © 2012 Pearson Education ...
NBER WORKING PAPER SERIES BANKS, MARKET ORGANIZATION, AND MACROECONOMIC PERFORMANCE:
... if banks are allowed to use higher loan-to-value ratios and are subject to lower capital adequacy ratios. The third result concerns the overall role of banks in macroeconomic volatility. It is generally accepted that although finance may help to promote long-run growth and development, this longrun ...
... if banks are allowed to use higher loan-to-value ratios and are subject to lower capital adequacy ratios. The third result concerns the overall role of banks in macroeconomic volatility. It is generally accepted that although finance may help to promote long-run growth and development, this longrun ...
18.6 Problems In Implementing Monetary Policy
... 18.2 The Equation of Exchange Or P and Q must each rise some, so that the product of P and Q remains equal to M V. If the money supply increases and the velocity of money does not change, there will be either higher prices (inflation), greater real output of goods and services, or a combination ...
... 18.2 The Equation of Exchange Or P and Q must each rise some, so that the product of P and Q remains equal to M V. If the money supply increases and the velocity of money does not change, there will be either higher prices (inflation), greater real output of goods and services, or a combination ...
Monetary Policy Statement March 2008 Contents
... The outlook for economic activity has deteriorated somewhat since we reviewed the OCR in January. The main reasons are weaker prospects for world growth, tighter credit conditions, a sharper-than-expected slowing in the housing market, and recent dry weather conditions. On balance, we now expect GDP ...
... The outlook for economic activity has deteriorated somewhat since we reviewed the OCR in January. The main reasons are weaker prospects for world growth, tighter credit conditions, a sharper-than-expected slowing in the housing market, and recent dry weather conditions. On balance, we now expect GDP ...
Influence of Interest Rates Determinants on the Performance of
... which drive up deposit rates. A decrease in the discount rate encourages banks to borrow and in turn this increases the amount available in form of reserves thereby enhancing or increasing the amount money supply in the economy. Consequently this leads to a decrease in the interest rates thereby enc ...
... which drive up deposit rates. A decrease in the discount rate encourages banks to borrow and in turn this increases the amount available in form of reserves thereby enhancing or increasing the amount money supply in the economy. Consequently this leads to a decrease in the interest rates thereby enc ...
aggregate supply (AS) curve
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
Circular flow of economic activity through a simple market economy
... costly and less profitable at a given price, so producers will supply less. A decrease in the number of producers. The market supply is the sum of the supplies of all producers, so a decrease in the number of producers decreases supply. Expectations of higher future prices. If firms think next month ...
... costly and less profitable at a given price, so producers will supply less. A decrease in the number of producers. The market supply is the sum of the supplies of all producers, so a decrease in the number of producers decreases supply. Expectations of higher future prices. If firms think next month ...
October Michael THE IFLATIO NARY PROCESS IN ISRAEL:
... The particular Israeli emphasis comes in the description of the properties of assets and of wage indexation, in the policy choices that make the growth rate of money and the composition of the outstanding stock of government debt endogenous, and in the magnitudes of the government and current accoun ...
... The particular Israeli emphasis comes in the description of the properties of assets and of wage indexation, in the policy choices that make the growth rate of money and the composition of the outstanding stock of government debt endogenous, and in the magnitudes of the government and current accoun ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Economic Policy Coordination
... rate; the latter effect arises because as the terms of trade improve (the real exchange rate rises) the consumption real wage increases relative to the own-product real wage. In equation (4), the money supply function, the assumption is that the government pursues monetary targets dictated by its ex ...
... rate; the latter effect arises because as the terms of trade improve (the real exchange rate rises) the consumption real wage increases relative to the own-product real wage. In equation (4), the money supply function, the assumption is that the government pursues monetary targets dictated by its ex ...
Measuring the Stance of Monetary Policy in Vietnam: A Structural
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
