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capital theory, inflation and deflation: the austrians and monetary
capital theory, inflation and deflation: the austrians and monetary

... what Leijonhufvud (1981a, p. 103) calls an "effective demand failure." The process by which this deflation works is that attempts to buy and sell are frustrated by the lack of money. For example, suppose a firm desires to hire some additional labor. It may be true that the value of each worker's mar ...
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Chapters 13 14 15

... would revert to either specie metals or barter once inflation reached a certain level. The widespread use of fiat money created the possibility of hyperinflation as governments often tended to print larger amounts of money to finance their expenses. Inflation results where such an increase in money ...
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... to do with as they please. We asked people what they would do with this “helicopter money” if it were given to them. ...
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This PDF is a selec on from a published volume... Bureau of Economic Research

... Christopher Sims was annoyed that the discussion still revolved around fighting the battles of the 1960s and 1970s by redefining the various orthodoxies of the time. Sims thought that monetarism to Nelson was monetarism without money, and the emphasis on the ability of monetary policy to ultimately ...
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AP Macroeconomics - Wyoming City Schools

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... and the subsequent transitory and civilian regimes showed a higher level of monetary discipline. The effect of that was a declining inflation rate. The other results again show a similar pattern to those previously obtained. Nominal money, output and the rest of the structural factors were significa ...
McCallum rule and Chinese monetary policy
McCallum rule and Chinese monetary policy

... Compared to advanced economies, various studies note the role of interest rates in the Chinese economy to being minor (see e.g. Laurens and Maino, 2007; Mehrotra, 2007; Koivu, 2008). Even if authorities define a number of interest rates (the central bank lending rate, rediscount rate and benchmark ...
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... inflationary gap arises. The larger the gap between aggregate demand and aggregate supply, the more rapid is the inflation. Keynesian (Keynes and his followers)do not deny this fact that even before reaching full employment production factors and various appearing constraint can cause increase in pu ...
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Michael Bordo Interview - Federal Reserve Bank of Richmond

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... A third issue is that Keynes asserts that under conditions of underemployment, when interest rates are positive but low, a liquidity trap exists such that the demand for money becomes infinitely elastic. Changes in the real supply of money then have no effect at all. Of all the commentators on Fried ...
Questioning the U.S. Dollar`s Status as a Reserve Currency
Questioning the U.S. Dollar`s Status as a Reserve Currency

... analysis of historical data and capital markets theory. These estimates have certain inherent limitations, and unlike an actual performance record, they do not reflect actual trading, liquidity constraints, fees or other costs. References to future net returns are not promises or even estimates of a ...
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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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