The post-Keynesian economics of credit and debt Marc Lavoie
... Z.1 accounts. Copeland wanted to have a framework that would allow him to answer simple but important questions such as: “When total purchases of our national product increase, where does the money come from to finance them? When purchases of our national product decline, what becomes of the money t ...
... Z.1 accounts. Copeland wanted to have a framework that would allow him to answer simple but important questions such as: “When total purchases of our national product increase, where does the money come from to finance them? When purchases of our national product decline, what becomes of the money t ...
Deflating GDP “Deflating” Nominal Values GDP Price Deflator
... GDP Price Deflator • Calculated by Government (So is Real GDP) • Available to Everyone • “Deflating” Means Converting to: – “Constant Dollars” – Say, for example: “2001 Dollars” – (Choose Base Year for Convenience) – “Chained 2001 Dollars” ...
... GDP Price Deflator • Calculated by Government (So is Real GDP) • Available to Everyone • “Deflating” Means Converting to: – “Constant Dollars” – Say, for example: “2001 Dollars” – (Choose Base Year for Convenience) – “Chained 2001 Dollars” ...
Macro2 Exercise #2
... ______________ All in all, did this last example provide an example of sound economic policy? ___ (Yes, No). Why or why not? ____________ ___________ ___________ ___________ _____________________________________________. Click “New Term in Office.” This time, select “Inflation” as the state of the m ...
... ______________ All in all, did this last example provide an example of sound economic policy? ___ (Yes, No). Why or why not? ____________ ___________ ___________ ___________ _____________________________________________. Click “New Term in Office.” This time, select “Inflation” as the state of the m ...
ExamView Pro - sgch20
... 2. People will want to hold less money if the price level a. or the interest rate increases. b. or the interest rate decreases. c. increases or the interest rate decreases. d. decreases or the interest rate increases. 3. If the stock market crashes, a. aggregate demand increases, which the Fed could ...
... 2. People will want to hold less money if the price level a. or the interest rate increases. b. or the interest rate decreases. c. increases or the interest rate decreases. d. decreases or the interest rate increases. 3. If the stock market crashes, a. aggregate demand increases, which the Fed could ...
Research Department Working Paper No:05/07
... as budget deficits and the credit expansion continued to grow even after the announcement of the stabilization programs. Monetary disequilibrium models are useful to explain interactions in these economies where the major source of disturbances is the disequilibrium in the money market. With these ...
... as budget deficits and the credit expansion continued to grow even after the announcement of the stabilization programs. Monetary disequilibrium models are useful to explain interactions in these economies where the major source of disturbances is the disequilibrium in the money market. With these ...
of GDP - New York Association for Business Economics
... This published research report may be considered by Deutsche Bank when Deutsche Bank is deciding to buy or sell proprietary positions in the securities mentioned in this report. For select companies, Deutsche Bank equity research analysts may identify shorter-term opportunities that are consistent o ...
... This published research report may be considered by Deutsche Bank when Deutsche Bank is deciding to buy or sell proprietary positions in the securities mentioned in this report. For select companies, Deutsche Bank equity research analysts may identify shorter-term opportunities that are consistent o ...
Federal Reserve and Monetary Policy
... It is important to recognize that the Fed directly controls only very short-term interest rates in the economy, not long-term interest rates. For the Fed to control investment spending, it must also somehow influence long-term rates. It can do this indirectly by influencing shortterm rates. The Fed ...
... It is important to recognize that the Fed directly controls only very short-term interest rates in the economy, not long-term interest rates. For the Fed to control investment spending, it must also somehow influence long-term rates. It can do this indirectly by influencing shortterm rates. The Fed ...
Honours Finance (Advanced Concepts in Finance)
... pure rate of interest, with all investors able to borrow or lend funds on equal terms. Second, we assume homogeneity of investor expectations: investors are assumed to agree on the prospects of various investments–the expected values, standard deviations and correlation coefficients described in Par ...
... pure rate of interest, with all investors able to borrow or lend funds on equal terms. Second, we assume homogeneity of investor expectations: investors are assumed to agree on the prospects of various investments–the expected values, standard deviations and correlation coefficients described in Par ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... price index at a significant cost to credibility. Financial assets were indexed to the short-term interest rate in November because expectations had turned adverse. Such setting led to a highly volatile atmospherein which inflationary expectations easily became the driving mechanism for actual infla ...
... price index at a significant cost to credibility. Financial assets were indexed to the short-term interest rate in November because expectations had turned adverse. Such setting led to a highly volatile atmospherein which inflationary expectations easily became the driving mechanism for actual infla ...
the fall and rise of the gold standard
... new gold should have been allowed to flow to the bill market. It wasn’t. Banks intercepted it in order to construct a credit pyramid upon their greatly expanded gold reserves. The bank credit, however, was not healthy. It was not of the self-liquidating kind, as it would have if it had been based on ...
... new gold should have been allowed to flow to the bill market. It wasn’t. Banks intercepted it in order to construct a credit pyramid upon their greatly expanded gold reserves. The bank credit, however, was not healthy. It was not of the self-liquidating kind, as it would have if it had been based on ...
mankiw6e-chap04_2007_
... Suppose V is constant, M is growing 5% per year, Y is growing 2% per year, and r = 4. a. Solve for i. b. If the Fed increases the money growth rate by 2 percentage points per year, find i. c. Suppose the growth rate of Y falls to 1% per year. ...
... Suppose V is constant, M is growing 5% per year, Y is growing 2% per year, and r = 4. a. Solve for i. b. If the Fed increases the money growth rate by 2 percentage points per year, find i. c. Suppose the growth rate of Y falls to 1% per year. ...
Wicksell after Woodford
... and contract nominal aggregate demand without limits (Wicksell 1898 [1936: 62-69], 1915 [1935: 79-87]). In the other version, the fictitious centralization of credit helped to simplify the analysis of monetary policy and cumulative price changes. Wicksell’s (1898 [1936]) originally presented his pur ...
... and contract nominal aggregate demand without limits (Wicksell 1898 [1936: 62-69], 1915 [1935: 79-87]). In the other version, the fictitious centralization of credit helped to simplify the analysis of monetary policy and cumulative price changes. Wicksell’s (1898 [1936]) originally presented his pur ...
Chapter 4: Money and Inflation
... 4.6) The Social Costs of Inflation → A Common Misperception About Inflation? Common misperception: Inflation reduces real wages This is true only in the short run, when nominal wages are fixed by contracts. (Chap. 3) In the long run, the real wage is determined by labor supply and the marginal prod ...
... 4.6) The Social Costs of Inflation → A Common Misperception About Inflation? Common misperception: Inflation reduces real wages This is true only in the short run, when nominal wages are fixed by contracts. (Chap. 3) In the long run, the real wage is determined by labor supply and the marginal prod ...
Objectives of the chapter - The Good, the Bad and the Economist
... E.g. in 1979 the government increased VAT from 8% to 15%. This added 5% inflation to that year. If entrepreneurs try to increase the amount of profit they make this can also cause push inflation. Raising the selling price can make higher profits. ...
... E.g. in 1979 the government increased VAT from 8% to 15%. This added 5% inflation to that year. If entrepreneurs try to increase the amount of profit they make this can also cause push inflation. Raising the selling price can make higher profits. ...
A stable money demand - Federal Reserve Bank of Chicago
... rate? Knowledge about the response of money demand to changes in the nominal interest rate may also help quantify the welfare gains from a low average inflation rate. In an essay in honor of Allan Meltzer, Lucas (1988) reassesses the evidence on the stability of the money demand estimated by Meltzer ...
... rate? Knowledge about the response of money demand to changes in the nominal interest rate may also help quantify the welfare gains from a low average inflation rate. In an essay in honor of Allan Meltzer, Lucas (1988) reassesses the evidence on the stability of the money demand estimated by Meltzer ...
Chapter Problems Frank and Bernanke Chapters 17
... 9. First, calculate inflation for each year. For 2000, inflation is the percentage increase in the CPI over that year, equal to (105–100)/100 = 5%. For 2001, inflation is (110-105)/105 = 4.8%. For 2002, inflation is (118-110)/110 = 7.3%. Real return equals the nominal interest rate minus the inflati ...
... 9. First, calculate inflation for each year. For 2000, inflation is the percentage increase in the CPI over that year, equal to (105–100)/100 = 5%. For 2001, inflation is (110-105)/105 = 4.8%. For 2002, inflation is (118-110)/110 = 7.3%. Real return equals the nominal interest rate minus the inflati ...
Document
... months of data to interpret cyclical or trend movements of the economy rather than relying on month-to-month data only. What are some common intermediate targets that the Fed has used to guide p olicy in recent years? Give two criteria for intermediate targets. The Fed has used the M2 and DNFD aggre ...
... months of data to interpret cyclical or trend movements of the economy rather than relying on month-to-month data only. What are some common intermediate targets that the Fed has used to guide p olicy in recent years? Give two criteria for intermediate targets. The Fed has used the M2 and DNFD aggre ...
monetary-policy
... Graphically speaking, the difference between a money supply target and an interest rate target is the horizontal lines (interest rate target) and the vertical lines (money supply target). Conceptually speaking, there is a BIG difference between a money supply target and an interest rate target. Here ...
... Graphically speaking, the difference between a money supply target and an interest rate target is the horizontal lines (interest rate target) and the vertical lines (money supply target). Conceptually speaking, there is a BIG difference between a money supply target and an interest rate target. Here ...
Chapter 15
... The Monetarist School • The Monetary Rule – Increase the money supply at a constant rate • When there is a recession, this steady infusion of monetary growth will pick up the economy • When there is inflation, a steady rate of monetary growth will slow it down When the country has a steady diet of ...
... The Monetarist School • The Monetary Rule – Increase the money supply at a constant rate • When there is a recession, this steady infusion of monetary growth will pick up the economy • When there is inflation, a steady rate of monetary growth will slow it down When the country has a steady diet of ...
Chapter 32 - McGraw Hill Higher Education - McGraw
... while borrowers are better off, from inflation. • If inflation is predictable, then this redistributive effect need not happen. – Even if inflation is high, savers will not lose out as long as banks offer nominal interest rates above inflation. ...
... while borrowers are better off, from inflation. • If inflation is predictable, then this redistributive effect need not happen. – Even if inflation is high, savers will not lose out as long as banks offer nominal interest rates above inflation. ...
經濟學講義(97
... production of capital. So encourage saving and investment is one way that the government can encourage a country’s long-term growth. (2)But as capital accumulates, diminishing returns may probably happen.(p.560 figure 1) (3)catch-up effect：the property whereby countries that start off poor tend to g ...
... production of capital. So encourage saving and investment is one way that the government can encourage a country’s long-term growth. (2)But as capital accumulates, diminishing returns may probably happen.(p.560 figure 1) (3)catch-up effect：the property whereby countries that start off poor tend to g ...
The Golden Age of Steam - the Solent Electronic Archive
... change, leading to a new equilibrium, rather than allowing for an (endogenous) price changes from whimsical commercial agents to disturb the ratios. Yet, prices go up because people put them up, as firms jostle for position. It is normal to expect that this is a continuous process in the real world, ...
... change, leading to a new equilibrium, rather than allowing for an (endogenous) price changes from whimsical commercial agents to disturb the ratios. Yet, prices go up because people put them up, as firms jostle for position. It is normal to expect that this is a continuous process in the real world, ...