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True, False, or Uncertain? Explain with words and graphs Study
True, False, or Uncertain? Explain with words and graphs Study

del02-stein  221139 en
del02-stein 221139 en

... slope is -1. For each equilibrium real exchange rate, there will be a different intercept. It has been confirmed by the econometric studies cited below that the equilibrium real rate is not a constant, but is affected by well defined real variables. That is, the intercept in equation (2) defining a ...
Agustín S. Bénétrix IIIS, Trinity College Dublin Philip R. Lane
Agustín S. Bénétrix IIIS, Trinity College Dublin Philip R. Lane

... In our dataset, the presence of anticipation effects could be tested by checking whether output differentials or the real exchange rate Granger causes future values of the government spending VAR shocks. Another strategy would be the implementation of tests similar to those used by Ramey (2008). How ...
Chapter 10: Classical Business Cycle Analysis: Market
Chapter 10: Classical Business Cycle Analysis: Market

... followed by a minor recession in 1980 and a deeper one in 1981. That was followed by monetary expansion in 1982 that led to an economic boom. ...
PROGRESS TOWARDS CONVERGENCE 1996
PROGRESS TOWARDS CONVERGENCE 1996

... value narrowed. The difference between inflation in the United Kingdom and the reference value was smaller than in the other countries throughout 1996, and has narrowed slightly in recent months. In explaining the convergence in inflation rates over the 1990s, a number of structural changes have pla ...
The Safety Trap - The Review of Economic Studies
The Safety Trap - The Review of Economic Studies

university of maiduguri - Unimaid, Centre for Distance Learning
university of maiduguri - Unimaid, Centre for Distance Learning

... inflation differently and hence adopted different approaches and strategies in remedying its consequential effects. Generally however, two major schools of thought have been recognized. The neo-classicals and their followers see inflation as fundamentally a monetary phenomenon. In the wards of Fried ...
Loan supply shocks and the business cycle - ECB
Loan supply shocks and the business cycle - ECB

... decades, such as the well documented “capital crunch” during the early 1990s recession in the US, these represent clear indications that credit markets may play a non-negligible role over the business cycle on a recurrent basis. In the context of understanding the role of credit markets over the bus ...
Price level targeting, the zero bound on the nominal interest rate and
Price level targeting, the zero bound on the nominal interest rate and

... the ensuing global recession, millions of jobs were lost; trillions of dollars of output foregone. These zero lower bound episodes and the large welfare costs associated with them have called into question the effectiveness of our existing monetary policy frameworks and have given new impetus to the ...
Interest Rate and the Exchange Rate: A Non
Interest Rate and the Exchange Rate: A Non

... spending. This tends to increase the market interest rate, thus raising the opportunity cost of holding money and depreciating the currency. In a similar vein, for a given level of deposits, the fall in bank credit associated with the output e¤ect implies that banks will lend more to the government. ...
Chapter 9 The IS-LM/AD
Chapter 9 The IS-LM/AD

... (a) an increase in prices and an increase in real interest rates. (b) an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. (c) a decrease in prices and a decrease in real interest rates. (d) a decrease in prices, a decrease in nominal interest rates, b ...
Forecasting South African Inflation
Forecasting South African Inflation

... based on a variation of the Phillips curve in equation (1), where there is a significant role for the variables measuring the balance between aggregate demand and aggregate supply. An immediate problem of empirically implementing equation (1) in the South African context, however, is the lack of acc ...
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... Dickens, and Perry (1996) for data on establishment births and deaths. The intuition behind their model is as follows. Wages are partially determined by bargaining, that is, owners and employees share the rents of their enterprises. Establishments in economic distress are therefore typically able to ...
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Download: Market size and opportunity in digitising payments in

... Maximising the B2P opportunity The total value of transactions, currently in cash and performed via formal channels across the 69 selected countries, available for digitisation of B2P payments is estimated at $316 billion in 2016. This is expected to grow to $394 billion in 2020. Of the total $394 ...
Factors that shift the Aggregate Demand Curve
Factors that shift the Aggregate Demand Curve

... A Change in the Quantity Demanded of the Real GDP: A Movement along the Aggregate Demand Curve A change in the quantity demanded of real GDP caused by a change in the price level. It is shown by a movement along the aggregate demand curve ...
“Good Governance” in Monetary Policy and the Negative Real
“Good Governance” in Monetary Policy and the Negative Real

An Empirical Analysis of Foreign Exchange Reserves in Emerging
An Empirical Analysis of Foreign Exchange Reserves in Emerging

... been facilitated by massive purchases of U.S. Treasury bonds and agency securities by Asian central banks. In this process, Asian central banks have accumulated large stockpiles of U.S.-dollar foreign exchange reserves. How far is the current level of reserves from that predicted by the standard mac ...
Chap11_12q_for print..
Chap11_12q_for print..

... C) expansionary shift in the LM curve. D) contractionary shift in the LM curve. 7. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve  ______ ______. A) IS; shifts to the right  B) IS; does not shift     C) LM: shifts to the right    D) LM; does not  ...
BNR ECONOMIC REVIEW Vol. 9
BNR ECONOMIC REVIEW Vol. 9

... The first paper on financial innovation and monetary policy is aimed at assessing whether the various financial innovation that have taken place over the past years pose difficulties on the conduct of monetary policy in Rwanda. In the context of the current monetary policy framework, this assessment ...
Chapter 12
Chapter 12

... unit, while those for other years, Gt, do not change. That is, everyone expects that Gt in future years will return to the original level. ...
15.1 the consumer price index
15.1 the consumer price index

... purchasing power—the nominal interest rate adjusted for the effects of inflation. Real interest rate = Nominal interest rate – Inflation rate ...
English - Inter-American Development Bank
English - Inter-American Development Bank

... In a related work, Carvallo and Pagliacci (2016) find that these two policy shocks appear to have significant effects on nominal credit. But their work does not attempt to investigate the associations that arise within the credit market or whether credit is being supplied by banks or demanded by cli ...
The Conditional Imminence of the Reserve Currency Transition
The Conditional Imminence of the Reserve Currency Transition

... return automobiles, pasta, stereos, taxi rides, hotel rooms and all sorts of other goods and services. As long as these foreigners can be induced to hold those dollars, either in their mattresses, their banks or in their own circulation, Americans have exchanged green paper for hard goods.” But a br ...
Economics 101 Assignment #3 (20 Points) Name
Economics 101 Assignment #3 (20 Points) Name

... 3. Most people who buy a home pay for it by borrowing money from a bank, savings and loan, or other such institution. Such a loan is called a mortgage. At present, the interest on a mortgage is deductible for tax purposes. To illustrate how this works, assume that a person is in a tax rate of 25% an ...
NBER WORKING PAPER SERIES INFLATION REPORTS Eric M. Leeper
NBER WORKING PAPER SERIES INFLATION REPORTS Eric M. Leeper

... away from the benchmark. Indeed, this explanation would be a central theme of the staff’s briefings of the Executive Board. It would be interesting also to produce forecasts from the benchmark model conditional on the judgmental adjustments being made. One would have to think through exactly how to ...
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Real bills doctrine

The real bills doctrine asserts that money should be issued in exchange for short-term real bills of adequate value. This theory is in opposition to the quantity theory of money which states that money supply has a direct, positive relationship with the price level.
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