Lec_notes_1021
... M2 is broader in its measurement of money that includes transaction accounts as well as liquid savings accounts. M2 is all assets in M1 plus savings deposits + money market mutual funds + some other assets. Money market mutual funds are assets that invest in short-term U.S. Treasury debt to provide ...
... M2 is broader in its measurement of money that includes transaction accounts as well as liquid savings accounts. M2 is all assets in M1 plus savings deposits + money market mutual funds + some other assets. Money market mutual funds are assets that invest in short-term U.S. Treasury debt to provide ...
Ch 28
... “Printing money” means the Fed increases the quantity of money by buying government bonds. This transaction doesn’t “pay off the debt.” It merely transfers the debt to the Fed. But at full employment and a given velocity of circulation, when the Fed increases the quantity of money, the price level r ...
... “Printing money” means the Fed increases the quantity of money by buying government bonds. This transaction doesn’t “pay off the debt.” It merely transfers the debt to the Fed. But at full employment and a given velocity of circulation, when the Fed increases the quantity of money, the price level r ...
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... X dollars payable N years from now is worth X/(1+R)N dollars now today dollar is worth more than a dollar in the future Investments I: an investment is profitable if the discounted present value of the benefits from the investment exceeds the expenditure on the investment. If a firm invests – usin ...
... X dollars payable N years from now is worth X/(1+R)N dollars now today dollar is worth more than a dollar in the future Investments I: an investment is profitable if the discounted present value of the benefits from the investment exceeds the expenditure on the investment. If a firm invests – usin ...
Saudi Arabia`s Exchange Rate Policy Its Impact on Historical
... combinations of regimes and arrangements, ranging from freely floating currencies with a minimum of intervention to currency unions, where an individual country completely abandons its ability to print money and practice any semblance of an independent monetary policy, even the most minimal degree o ...
... combinations of regimes and arrangements, ranging from freely floating currencies with a minimum of intervention to currency unions, where an individual country completely abandons its ability to print money and practice any semblance of an independent monetary policy, even the most minimal degree o ...
The BoC-GEM-Fin: Banking in the Global Economy
... As with deposit banks, some degree of monopoly power allows lending banks to set rates as a markup over their marginal cost (i.e., the costs of interbank borrowing and raising bank capital). Financial frictions also apply to lending banks when deciding (i) the optimal share of interbank loans to be ...
... As with deposit banks, some degree of monopoly power allows lending banks to set rates as a markup over their marginal cost (i.e., the costs of interbank borrowing and raising bank capital). Financial frictions also apply to lending banks when deciding (i) the optimal share of interbank loans to be ...
Chapter_16
... Assume that you have deposited $1,000 dollars in your checking account. The bank doesn’t keep all of your money, but rather lends out some of it to businesses and other people. The portion of your original $1,000 that the bank needs to keep on hand, or not loan out, is called the required reserve ra ...
... Assume that you have deposited $1,000 dollars in your checking account. The bank doesn’t keep all of your money, but rather lends out some of it to businesses and other people. The portion of your original $1,000 that the bank needs to keep on hand, or not loan out, is called the required reserve ra ...
Full class notes
... C. Elasticity and Total Revenue 1) Total Revenue = Price x Quantity(sold) 2) If demand is inelastic and price increases, total revenue will increase 3) If demand is elastic and price increases, total revenue will decrease ...
... C. Elasticity and Total Revenue 1) Total Revenue = Price x Quantity(sold) 2) If demand is inelastic and price increases, total revenue will increase 3) If demand is elastic and price increases, total revenue will decrease ...
Instructor`s class notes
... This curve is downward-sloping in r but flatter than standard IS because increase in r leads to capital inflow, which appreciates and reduces NX, so there is an additional decrease in expenditures. ...
... This curve is downward-sloping in r but flatter than standard IS because increase in r leads to capital inflow, which appreciates and reduces NX, so there is an additional decrease in expenditures. ...
the optimal path of monetary expansion
... Foreign exchange holders use part to cover purchases abroad, sell the rest to other residents, and the banking system for domestic currency. The change in net foreign assets held by the banking system will have a direct effect on monetary expansion. This could distort the optimal supply of money ...
... Foreign exchange holders use part to cover purchases abroad, sell the rest to other residents, and the banking system for domestic currency. The change in net foreign assets held by the banking system will have a direct effect on monetary expansion. This could distort the optimal supply of money ...
Document
... year, Y is growing 2% per year, and r = 4. a. First, find = 5 2 = 3. Then, find i = r + = 4 + 3 = 7. b. = 7 2 = 5， i = r + = 4 + 5 = 9. i = 2, same as the increase in the money growth rate. b. If the central bank does nothing, = 1. To prevent inflation from rising, the ECB must reduc ...
... year, Y is growing 2% per year, and r = 4. a. First, find = 5 2 = 3. Then, find i = r + = 4 + 3 = 7. b. = 7 2 = 5， i = r + = 4 + 5 = 9. i = 2, same as the increase in the money growth rate. b. If the central bank does nothing, = 1. To prevent inflation from rising, the ECB must reduc ...
The Ontological Reflection of the Monetary Theories
... On the other hand, verticalists advocate that central bank can defend itself by changes in interest rate for given amount. Contrary, theories are correspondent in opinion that central bank can influence money supply by shifts in target rate. “Central banks have a very active role in the money supply ...
... On the other hand, verticalists advocate that central bank can defend itself by changes in interest rate for given amount. Contrary, theories are correspondent in opinion that central bank can influence money supply by shifts in target rate. “Central banks have a very active role in the money supply ...
Bank of England Inflation Report November 2014
... Business, Innovation and Skills, Eurostat, IMF World Economic Outlook (WEO), ONS, US Bureau of Economic Analysis and Bank calculations. (a) The MPC’s projections for GDP growth, CPI inflation and unemployment (as presented in the fan charts) are underpinned by four key judgements. The mapping from t ...
... Business, Innovation and Skills, Eurostat, IMF World Economic Outlook (WEO), ONS, US Bureau of Economic Analysis and Bank calculations. (a) The MPC’s projections for GDP growth, CPI inflation and unemployment (as presented in the fan charts) are underpinned by four key judgements. The mapping from t ...
Chapter 24 The Keynesian Framework Chapter 25 The IS-LM World
... Keynesians assume that the quantity of loanable funds does not change when monetary supply is adjusted (reduced/increased) Monetarists and Rational Expectations suggest that when money supply is increased, inflationary expectations rise which cause a higher demand for loanable funds This shifts the ...
... Keynesians assume that the quantity of loanable funds does not change when monetary supply is adjusted (reduced/increased) Monetarists and Rational Expectations suggest that when money supply is increased, inflationary expectations rise which cause a higher demand for loanable funds This shifts the ...
Econ 130
... – Here, k is constant, then the level of transaction generated by a …xed level of nominal income [P Y ] determines the quantity of money demanded. Keynes’s Liquidity Preference Theory – The classical view that velocity is constant is abandoned, – Interest rates are introduced in the theory of money ...
... – Here, k is constant, then the level of transaction generated by a …xed level of nominal income [P Y ] determines the quantity of money demanded. Keynes’s Liquidity Preference Theory – The classical view that velocity is constant is abandoned, – Interest rates are introduced in the theory of money ...
1 Canadian dollar - McGraw Hill Higher Education
... • Foreigners who want to buy Canadian exports or who want to travel to Canada • Foreigners who want to purchase Canadian investments – Direct investment: The purchase of real assets – Portfolio investment: The purchase of shares or bonds representing less than fifty percent ownership © 2004 McGraw–H ...
... • Foreigners who want to buy Canadian exports or who want to travel to Canada • Foreigners who want to purchase Canadian investments – Direct investment: The purchase of real assets – Portfolio investment: The purchase of shares or bonds representing less than fifty percent ownership © 2004 McGraw–H ...
Problem Set #3: Building and Applying the IS - LM
... a. Identify each of the variables and briefly explain their meaning. – The variable Y represents real output or real income. From Chapter 2, we know that the value of the produced goods and services (real output) has to be equal to the value of the income earned in producing the goods and services ( ...
... a. Identify each of the variables and briefly explain their meaning. – The variable Y represents real output or real income. From Chapter 2, we know that the value of the produced goods and services (real output) has to be equal to the value of the income earned in producing the goods and services ( ...
