This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Economic Policy Coordination
... high deficits would not affect real interest rates or anything much except the rate of inflation and private saving. Others have argued that they would make recovery impossible by driving real interest rates to unheard-of levels. Yet others have argued that the high deficits have stimulated the worl ...
... high deficits would not affect real interest rates or anything much except the rate of inflation and private saving. Others have argued that they would make recovery impossible by driving real interest rates to unheard-of levels. Yet others have argued that the high deficits have stimulated the worl ...
If a certain combination of goods or services lies outside the
... States increases relative to that of the rest of the world, capital should flow a. into the United States and the dollar will depreciate b. into the United States and the dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will ...
... States increases relative to that of the rest of the world, capital should flow a. into the United States and the dollar will depreciate b. into the United States and the dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will ...
The theoretical and empirical credibility of commodity money
... production base (the "real economy"). This inadequacy has stimulated interest in nonneoclassical treatments of money, which has given fresh importance to understanding the possible role of a money commodity in the financial system. This paper first demonstrates that the most fundamental function of ...
... production base (the "real economy"). This inadequacy has stimulated interest in nonneoclassical treatments of money, which has given fresh importance to understanding the possible role of a money commodity in the financial system. This paper first demonstrates that the most fundamental function of ...
![price determination and stabilization under free banking system[*]](http://s1.studyres.com/store/data/015999468_1-c015bd920a9264f7e802bc5e7a3c030d-300x300.png)
price determination and stabilization under free banking system[*]
... In recent years, a number of economists have reinterpreted the history of free banking. White, Nataf, Rolnick, Weber, Rockoff, and others have found that free banking systems were inherently or qualified stable. White defines free banking to be a system in which the government does not regulate; the ...
... In recent years, a number of economists have reinterpreted the history of free banking. White, Nataf, Rolnick, Weber, Rockoff, and others have found that free banking systems were inherently or qualified stable. White defines free banking to be a system in which the government does not regulate; the ...
What can monetary policy do?
... not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and unstable multipliers for fiscal policy or forward guidance), that have been shown by others before him, are a consequence of a ...
... not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and unstable multipliers for fiscal policy or forward guidance), that have been shown by others before him, are a consequence of a ...
Exchange rate and monetary policy for Kazakhstan in light of
... monetary policy is set with full discretion. A central bank that wants to fight inflation can commit more credibly by fixing the exchange rate, or even giving up its currency altogether. Workers, firm managers, and others who set wages and prices then perceive that inflation will be low in the futu ...
... monetary policy is set with full discretion. A central bank that wants to fight inflation can commit more credibly by fixing the exchange rate, or even giving up its currency altogether. Workers, firm managers, and others who set wages and prices then perceive that inflation will be low in the futu ...
Chapter 9: Monetary Policy
... After 1984 the Fed reduced its emphasis on targeting the growth rate of M1, believing that innovations in banking made the money demand function less reliable, returning instead to interest rate targets. Here is how interest rate targeting has worked. The Board, and particularly its Chair, along wit ...
... After 1984 the Fed reduced its emphasis on targeting the growth rate of M1, believing that innovations in banking made the money demand function less reliable, returning instead to interest rate targets. Here is how interest rate targeting has worked. The Board, and particularly its Chair, along wit ...
Downlaod File
... Inflation is an expected property of any economy in the world. In other words, inflation is the rise of general level of prices. However, inflation is a much more complicated than simply the increase of prices. investopidea explains inflation as "the rate at which the general level of prices for goo ...
... Inflation is an expected property of any economy in the world. In other words, inflation is the rise of general level of prices. However, inflation is a much more complicated than simply the increase of prices. investopidea explains inflation as "the rate at which the general level of prices for goo ...
Effects of Inflation
... Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. Higher than anticipated inflation lowers the real wage rate, increases the quantity of labor demanded, makes jobs easier to find, and lowers the unemployment rate. Lower than anticipated inflatio ...
... Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. Higher than anticipated inflation lowers the real wage rate, increases the quantity of labor demanded, makes jobs easier to find, and lowers the unemployment rate. Lower than anticipated inflatio ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... inflation and on the degree to which higher inflation erodes real tax collection. The important point to recognize is that each of these factors will increase significantly the inflationary impact of the debt shock. During high inflation episodes there will invariably be a discussion between two sch ...
... inflation and on the degree to which higher inflation erodes real tax collection. The important point to recognize is that each of these factors will increase significantly the inflationary impact of the debt shock. During high inflation episodes there will invariably be a discussion between two sch ...
Finding the Equilibrium Real Interest Rate in a
... homes skyrocketed and home price inflation took off. And overall inflation was rising. The inflation rate measured by the GDP price index doubled from 1.7% to 3.4% per year. In sum, there were clear signs of overheating with y greater than y* and π rising. During this period the Fed held its policy ...
... homes skyrocketed and home price inflation took off. And overall inflation was rising. The inflation rate measured by the GDP price index doubled from 1.7% to 3.4% per year. In sum, there were clear signs of overheating with y greater than y* and π rising. During this period the Fed held its policy ...
Demand-Pull Inflation
... Aggregate Supply (AS) is the total of all the firm (market) supply curves. It shows the quantity of real GDP produced at different price levels. Short-run AS slopes upward because an increase in the price level (while production costs and capital are held constant on the short-run), means higher pro ...
... Aggregate Supply (AS) is the total of all the firm (market) supply curves. It shows the quantity of real GDP produced at different price levels. Short-run AS slopes upward because an increase in the price level (while production costs and capital are held constant on the short-run), means higher pro ...
File - MCNEIL ECONOMICS
... c. It can raise or lower the discount rate. (1) Raising the discount rate discourages banks from borrowing reserves from the Fed. (2) Lowering the discount rate encourages banks to borrow from the Fed. d. It can auction off to banks the right to borrow reserves for a set period of time (usually 28 d ...
... c. It can raise or lower the discount rate. (1) Raising the discount rate discourages banks from borrowing reserves from the Fed. (2) Lowering the discount rate encourages banks to borrow from the Fed. d. It can auction off to banks the right to borrow reserves for a set period of time (usually 28 d ...
Deflation fears in developed economies
... An inflation path below what was expected at the time of borrowing increases the real debt burden. If all debtors were able to avoid default, then income would be reallocated to creditors in a period of deflation. And since creditors tend to be characterised by a higher rate of savings, this type of ...
... An inflation path below what was expected at the time of borrowing increases the real debt burden. If all debtors were able to avoid default, then income would be reallocated to creditors in a period of deflation. And since creditors tend to be characterised by a higher rate of savings, this type of ...
Box 3 Deflation - Central Bank of Iceland
... increase in base money is not transmitted to broad money aggregates, since banks will not or cannot increase their lending. This may apply in Japan’s case.4 In theory, a central bank ought to be able to induce inflation, but may need to use unconventional methods for doing so, for example by buying ...
... increase in base money is not transmitted to broad money aggregates, since banks will not or cannot increase their lending. This may apply in Japan’s case.4 In theory, a central bank ought to be able to induce inflation, but may need to use unconventional methods for doing so, for example by buying ...
Money and generalized exchange: A critical look at Neo
... excess demand functions in the relevant price interval.7 The proof of existence does not require the introduction of a generalized and accepted means of exchange. Nor does it require a theory of a generalized and accepted means of exchange. Indeed, these considerations do not enter into the configura ...
... excess demand functions in the relevant price interval.7 The proof of existence does not require the introduction of a generalized and accepted means of exchange. Nor does it require a theory of a generalized and accepted means of exchange. Indeed, these considerations do not enter into the configura ...
Inflation Cycles
... GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grows more slowly than expected, real GDP falls below potential GDP, the inflation rate slows, and the economy behaves like it does in a c ...
... GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grows more slowly than expected, real GDP falls below potential GDP, the inflation rate slows, and the economy behaves like it does in a c ...
Inflation, deflation and purchasing power
... this fully anticipated monetary policy cannot have any real effects even in the short-run; the CB can affect the real output and employment only if it can find a way to create a “price surprise”. if a policymaker announces a disinflation policy in advance, this cannot reduce prices if people d ...
... this fully anticipated monetary policy cannot have any real effects even in the short-run; the CB can affect the real output and employment only if it can find a way to create a “price surprise”. if a policymaker announces a disinflation policy in advance, this cannot reduce prices if people d ...
The Analytics of the New Keynesian 3
... recessions ( yˆt < 0). (iii) Finally, this relation incorporates a cost push term εtS (such that εtS > 0 may indicate an increase in raw materials or energy price in the economy). In a standard way we assume that εtS is an AR(1) process:9 εtS ρ S εtS1 ηtS with ηtS ~ N (0, σ S2 ) and iid. The New ...
... recessions ( yˆt < 0). (iii) Finally, this relation incorporates a cost push term εtS (such that εtS > 0 may indicate an increase in raw materials or energy price in the economy). In a standard way we assume that εtS is an AR(1) process:9 εtS ρ S εtS1 ηtS with ηtS ~ N (0, σ S2 ) and iid. The New ...
A two-period closed economy with sticky prices
... natural level, Q1 Q1n , determined by the supply side of the economy. The key feature of the model with flexible prices is that the interest rate (price of current output) adjusts instantaneously to ensure that aggregate demand equals the existing aggregate supply (note that changes in the real in ...
... natural level, Q1 Q1n , determined by the supply side of the economy. The key feature of the model with flexible prices is that the interest rate (price of current output) adjusts instantaneously to ensure that aggregate demand equals the existing aggregate supply (note that changes in the real in ...
Impact of exchange rate, inflation rate and interest rate on balance of
... country, which is not better for BOP. The result has shown that the foreign investors invest the money where there is no corruption [8]. In recent years multinational banks loan increased in the economies especially where deposits, profit opportunities and inward FDI were greater and it had positive ...
... country, which is not better for BOP. The result has shown that the foreign investors invest the money where there is no corruption [8]. In recent years multinational banks loan increased in the economies especially where deposits, profit opportunities and inward FDI were greater and it had positive ...