Inflation and Unemployment
... decreases short-run aggregate supply and shifts the SAS curve leftward. Real GDP decreases and the price level rises. ...
... decreases short-run aggregate supply and shifts the SAS curve leftward. Real GDP decreases and the price level rises. ...
Open Macroeconomies as A Closed Economic System
... This paper completes the series of macroeconomic modeling that tries to model macroeconomic dynamics on the basis of the principle of accounting system dynamics developed by the author. Money supply and creation processes of deposits were modeled in the first paper, while the second paper built dynam ...
... This paper completes the series of macroeconomic modeling that tries to model macroeconomic dynamics on the basis of the principle of accounting system dynamics developed by the author. Money supply and creation processes of deposits were modeled in the first paper, while the second paper built dynam ...
Money Supply, Interest Rate, Liquidity and Share Prices
... Despite its prominent role in conventional theories of the monetary policy transmission mechanism, there has been very little evidence of a statistically significant or economically meaningful liquidity effect being confirmed in studies. Since previous attempts to identify the liquidity effect have ...
... Despite its prominent role in conventional theories of the monetary policy transmission mechanism, there has been very little evidence of a statistically significant or economically meaningful liquidity effect being confirmed in studies. Since previous attempts to identify the liquidity effect have ...
In a mixed economy, what to produce and how much to produce are
... 39. A commercial bank is facing the conditions given above. If the reserve requirement is 12 percent and the bank does not sell any of its securities, the maximum amount of additional lending this bank can undertake is a. $15,000 b. $12,000 c. $3,000 d. $1,800 e. 0 40. According to Keynesian analysi ...
... 39. A commercial bank is facing the conditions given above. If the reserve requirement is 12 percent and the bank does not sell any of its securities, the maximum amount of additional lending this bank can undertake is a. $15,000 b. $12,000 c. $3,000 d. $1,800 e. 0 40. According to Keynesian analysi ...
Parkin-Bade Chapter 28
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
Nr. 34 The Precarious Fiscal Foundations of EMU (PDF: 158.6
... clearly have been risky, and would thereby have acquired a fiscal dimension. The Federal Reserve System would have been taking on risk, and if the result was substantial losses, there would have been a need for Congressional approval of appropriations to restore Federal Reserve solvency.1 We see thi ...
... clearly have been risky, and would thereby have acquired a fiscal dimension. The Federal Reserve System would have been taking on risk, and if the result was substantial losses, there would have been a need for Congressional approval of appropriations to restore Federal Reserve solvency.1 We see thi ...
Cash Dollars Abroad - Federal Reserve Bank of New York
... latter independently. Such work has been substantially impeded by lack of data availability, particularly for developing countries. Several exceptions include Mongardini and Mueller (2000) who use data on secondary cash holdings to estimate currency-substitution ratios for the Kyrgyz Republic; Grube ...
... latter independently. Such work has been substantially impeded by lack of data availability, particularly for developing countries. Several exceptions include Mongardini and Mueller (2000) who use data on secondary cash holdings to estimate currency-substitution ratios for the Kyrgyz Republic; Grube ...
Price Stability and the Long-Run Target for
... finding of a decrease in the slope may have occurred because monetary authorities are now better able to identify and respond to the supply shocks affecting the economy. To justify this interpretation, Beaudry and Doyle suggest that the economics profession became more aware of the importance of sup ...
... finding of a decrease in the slope may have occurred because monetary authorities are now better able to identify and respond to the supply shocks affecting the economy. To justify this interpretation, Beaudry and Doyle suggest that the economics profession became more aware of the importance of sup ...
Worksheet 17.1: Intro to AD
... This is a misleading parallel. The demand curve for any individual good shows how the quantity demanded depends on the price of that good, holding the prices of other goods and services constant. Example: The demand curve for apples is downward sloping because all else equal, if the price of apples ...
... This is a misleading parallel. The demand curve for any individual good shows how the quantity demanded depends on the price of that good, holding the prices of other goods and services constant. Example: The demand curve for apples is downward sloping because all else equal, if the price of apples ...
MACROECONOMICS Section I
... 38. The aggregate demand curve is downward sloping because as the price level increases the (A) purchasing power of wealth decreases (B) demand for imports decreases (C) demand for interest-sensitive expenditures increases (D) demand for domestically produced substitute goods increase (E) real value ...
... 38. The aggregate demand curve is downward sloping because as the price level increases the (A) purchasing power of wealth decreases (B) demand for imports decreases (C) demand for interest-sensitive expenditures increases (D) demand for domestically produced substitute goods increase (E) real value ...
Banks, Market Organization, and Macroeconomic Performance: An Agent-Based Computational Analysis ∗ Quamrul Ashraf
... As mentioned in the introduction, financial accelerators arising from endogenous collateral have been modeled by various authors and have also been introduced into New Keynesian DSGE models (e.g., Gertler and Kiyotaki, 2010) with a view to understanding their role in credit crises.4 As we shall see, ...
... As mentioned in the introduction, financial accelerators arising from endogenous collateral have been modeled by various authors and have also been introduced into New Keynesian DSGE models (e.g., Gertler and Kiyotaki, 2010) with a view to understanding their role in credit crises.4 As we shall see, ...
DOC - World bank documents
... Program (as defined in the Appendix to this Agreement). The Bank has decided to provide this financing on the basis, inter alia, of (a) the actions which the Borrower has already taken under the Program and which are described in Section I of Schedule 1 to this Agreement, and (b) the Borrower’s main ...
... Program (as defined in the Appendix to this Agreement). The Bank has decided to provide this financing on the basis, inter alia, of (a) the actions which the Borrower has already taken under the Program and which are described in Section I of Schedule 1 to this Agreement, and (b) the Borrower’s main ...
Working Paper - Hans-Böckler
... Blinder and Solow (1973) and Tobin and Buiter (1976).5 As regards government’s ability to always repay debt if it so chooses, that too is clear from the budget restraint. Repaying debt implies βRepayment < 0, and this can always be financed by setting θRepayment > 0 such that θRepayment + βRepayment ...
... Blinder and Solow (1973) and Tobin and Buiter (1976).5 As regards government’s ability to always repay debt if it so chooses, that too is clear from the budget restraint. Repaying debt implies βRepayment < 0, and this can always be financed by setting θRepayment > 0 such that θRepayment + βRepayment ...
A stages approach to banking development in transition economies
... In Stage 5, banks enter the new phase of liability management; nonbank financial intermediaries (NBFIs) use the liabilities of banks as their reserve base and banks find themselves facing strong competition from the NBFIs. Rather than just waiting for new loan requests, as they would have done in th ...
... In Stage 5, banks enter the new phase of liability management; nonbank financial intermediaries (NBFIs) use the liabilities of banks as their reserve base and banks find themselves facing strong competition from the NBFIs. Rather than just waiting for new loan requests, as they would have done in th ...
Macro Economics - e
... Qualitative measures – The Central Bank issues directives to commercial banks so that their lending come under control so that credit policy should be under pressure. The apex bank also provides advice, appeal and persuade the commercial banks by moral suasion to achieve the same purpose. ...
... Qualitative measures – The Central Bank issues directives to commercial banks so that their lending come under control so that credit policy should be under pressure. The apex bank also provides advice, appeal and persuade the commercial banks by moral suasion to achieve the same purpose. ...
Lecture30(Ch27)
... Stage two: the interest rate is positively related to inflation • The Fed tends to – raise the interest rate when inflation rises and – lower the interest rate when inflation falls ...
... Stage two: the interest rate is positively related to inflation • The Fed tends to – raise the interest rate when inflation rises and – lower the interest rate when inflation falls ...
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... determined by the monetary policy. It plans its budget such that the present value of its future surpluses should be enough to offset the public net real debt. Under the “fiscal dominant” regime, the public budget constraint determines the price level. In this case, if the future surpluses cannot su ...
... determined by the monetary policy. It plans its budget such that the present value of its future surpluses should be enough to offset the public net real debt. Under the “fiscal dominant” regime, the public budget constraint determines the price level. In this case, if the future surpluses cannot su ...
Principles of Macroeconomics
... 39. An increase in which of the following will cause an increase in the demand for a certain good? (A) The price of the good (B) The number of sellers of the good (C) The price of a complementary good (D)The cost of purchasing the good (E) The number of buyers of the good 40. If the exchange rate ch ...
... 39. An increase in which of the following will cause an increase in the demand for a certain good? (A) The price of the good (B) The number of sellers of the good (C) The price of a complementary good (D)The cost of purchasing the good (E) The number of buyers of the good 40. If the exchange rate ch ...
capital theory, inflation and deflation: the austrians and monetary
... of a larger theoretical view which is capable of meeting most of these criteria. The Austrian theory of the trade cycle as described by Ludwig von Mises (1912, 1966) and F. A. Hayek (1933, 1935, 1939) and the "pre-Keynesian" monetary disequilibrium theory of deflation of Clark Warburton (1946 and 19 ...
... of a larger theoretical view which is capable of meeting most of these criteria. The Austrian theory of the trade cycle as described by Ludwig von Mises (1912, 1966) and F. A. Hayek (1933, 1935, 1939) and the "pre-Keynesian" monetary disequilibrium theory of deflation of Clark Warburton (1946 and 19 ...