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Inflation in Canada - Pearson Higher Education
Inflation in Canada - Pearson Higher Education

... lacklustre performance. The U.S. Federal Reserve and the Bank of Canada responded quickly by lowering their key policy interest rates even further—by one and a half percentage points over the next three months. Following this considerable monetary stimulation and the economy’s natural healing proces ...
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Anna Jacobson Schwartz: In Memoriam George S. Tavlas
Anna Jacobson Schwartz: In Memoriam George S. Tavlas

... fiscal policy; they interpreted inflation as a cost-push phenomenon to be contained by wage and price controls; and they thought that the Great Depression demonstrated the impotence of monetary policy. A Monetary History played a key role in changing those views. The book, which totals 860 pages, in ...
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... close to full employment and mflatlOn was moderate (table 1 and fig 1) DefiCIt spendIng was Incurred to pay [or the Vietnam War, fiscal polIcy was political, not economic, In purpose But the polICY had eco­ nomic consequences It spurred InflatIon by pushIng aggregate demand beyond eXisting produc­ t ...
References - Lorenzo Bini Smaghi
References - Lorenzo Bini Smaghi

Monetary Policy: Can the Federal Reserve
Monetary Policy: Can the Federal Reserve

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Interactive Tool

... The target federal funds rate is at a record low as the Federal Reserve monetary policy committee has concerned itself with encouraging the recovery from the 2001 recession and the possibility of experiencing a deflationary period. Recent announcements reflect serious concerns with the state and dir ...
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... precisely to critical realist methodological prescriptions. Critical rcalists te nd to be skeptical oLmathematical< expositions of theory, on the grounds that formal methods may pre-suppose atomism and axiomatic-deductive reasoning. My own view, however, is that macro methods involving aggregative f ...
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The Exchange Economy, Money - Cowles Foundation

... the transaction as a key factor in the measurement of economic activity. It is hard to de…ne precisely, and many shades of di¤erence can be proposed related to the basic questions being asked. Here as our basic concern has been with the emergence of money and markets we [11] utilized a level of anal ...
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... funds rate followed by a period of constant rates as proving effective. The changes in this announcement are that the members of the Committee state that “output is expanding briskly, and the labor market appears to be improving modestly.” The statement that “output is expanding briskly” compares to ...
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Quiz 1 Solution Set 14.02 Macroeconomics March 8, 2006

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Exchange Rate Policy and Inflation Targeting in Colombia

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... [2] the elasticity of substitution between all liquid assets (including money) and reproducible goods is zero or negligible 5 .. The zero elasticity of production means that when some portion of income is “saved”, these savings will be used to purchase things that are not producible by the use of la ...
Getting Back on Track: Macroeconomic Policy Lessons from the Financial Crisis
Getting Back on Track: Macroeconomic Policy Lessons from the Financial Crisis

... In my view the crisis was misdiagnosed as a liquidity problem rather than a counterparty risk problem in the banks; as a result, the policies did not address the problem. To illustrate this perspective, consider Figure 3, which shows the LIBOR-OIS spread through the summer of 2008 along with one of ...
quantitative easing - Sheboygan Economic Club
quantitative easing - Sheboygan Economic Club

Economics 101 Name
Economics 101 Name

... experience ___________ (inflation, recession, or neither?). Explain why. ___________________________________________________________ (3 points) In order to avoid inflation and recession, the government should spend $________________ because ___________________________________________________________ ...
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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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