mememe - UCLA Econ
... In the case of a currency board, the Central Bank is not supposed to engage in other kinds of transactions -- no operations in government bonds, in rediscounts to commercial banks, etc. But even when it does engage in such operations -- which the overwhelming majority of Central Banks do under ordin ...
... In the case of a currency board, the Central Bank is not supposed to engage in other kinds of transactions -- no operations in government bonds, in rediscounts to commercial banks, etc. But even when it does engage in such operations -- which the overwhelming majority of Central Banks do under ordin ...
14.02 Principles of Macroeconomics Problem Set 5 Fall 2005
... instead of to the left. 2) Tradable goods prices are a better measure of the degree of openness of an economy than trade volume. True. The volume of trade takes into account the size of exports and imports. However, it does not fully take into account the change in behavior of the domestic market (p ...
... instead of to the left. 2) Tradable goods prices are a better measure of the degree of openness of an economy than trade volume. True. The volume of trade takes into account the size of exports and imports. However, it does not fully take into account the change in behavior of the domestic market (p ...
Something Ventured
... When you live and work within the technology industry in BC, as it would be anywhere else on the planet, you tend to see the world in terms of what is happening locally and in your designated field of focus. This “tunnel vision” is natural and normal. When you spend your day figuring out how to win ...
... When you live and work within the technology industry in BC, as it would be anywhere else on the planet, you tend to see the world in terms of what is happening locally and in your designated field of focus. This “tunnel vision” is natural and normal. When you spend your day figuring out how to win ...
What else is at the NY Fed?
... • In this chapter, we learn: – How the central bank effectively sets the real interest rate in the short run, and how this rate shows up as the MP curve in our short-run model. – That the Phillips curve describes how firms set their prices over time, pinning down the inflation rate. – How the IS curv ...
... • In this chapter, we learn: – How the central bank effectively sets the real interest rate in the short run, and how this rate shows up as the MP curve in our short-run model. – That the Phillips curve describes how firms set their prices over time, pinning down the inflation rate. – How the IS curv ...
the full text of the Speech
... short-term liquidity under varied financial market conditions, including large capital inflows. In addition, it has enabled the Reserve Bank to set, as far as possible, an informal corridor for the short-term interest rates consistent with the policy stance. This has also facilitated a reduction in ...
... short-term liquidity under varied financial market conditions, including large capital inflows. In addition, it has enabled the Reserve Bank to set, as far as possible, an informal corridor for the short-term interest rates consistent with the policy stance. This has also facilitated a reduction in ...
Powerpoint Presentation
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
Powerpoint Presentation
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
FULL EMPLOYMENT, THE VALUE OF MONEY AND DEFICIT
... Next, the State plans the amount of taxes as long as it can forecast the future. It is obvious that outlays cannot be financed by taxes for the same reason that firm expenditures cannot be financed by their receipts. When the State spends, taxes do not yet exist. They could be raised only in the las ...
... Next, the State plans the amount of taxes as long as it can forecast the future. It is obvious that outlays cannot be financed by taxes for the same reason that firm expenditures cannot be financed by their receipts. When the State spends, taxes do not yet exist. They could be raised only in the las ...
Keeping track of the intertwined real and
... • The future is uncertain; we cannot list all the possible future occurrences. • Some people are unable to meet their contractual obligations when they come due. Money discharges contractual obligations, and hence it is the most liquid asset. • Some other assets are liquid as long as their market pr ...
... • The future is uncertain; we cannot list all the possible future occurrences. • Some people are unable to meet their contractual obligations when they come due. Money discharges contractual obligations, and hence it is the most liquid asset. • Some other assets are liquid as long as their market pr ...
Quick Links
... a) The real interest rate will rise, and private investment will rise. b) The nominal interest rate will rise, the real interest rate will remain the same, but private investment will rise. c) If the increase in the money supply by the Central Bank is greater than the amount borrowed by the governme ...
... a) The real interest rate will rise, and private investment will rise. b) The nominal interest rate will rise, the real interest rate will remain the same, but private investment will rise. c) If the increase in the money supply by the Central Bank is greater than the amount borrowed by the governme ...
Is demand for money the same as demand for liquidity?
... Money is crucial because is the economy’s standard of value and the final means of payment. Money is a liquid asset, but not all liquid assets are money. What is money is established through a social and historical process. What is liquid is established by the market in a certain given context. ...
... Money is crucial because is the economy’s standard of value and the final means of payment. Money is a liquid asset, but not all liquid assets are money. What is money is established through a social and historical process. What is liquid is established by the market in a certain given context. ...
AP Macro Unit 4 Notes - Phoenix Union High School District
... reserve requirement is 10% will change the money supply by $1000. BUT the banking system increases the money supply by $900 (the $100 difference being the action of the depositor). Students have to be very careful to read the question carefully and understand the two possible answers for the change ...
... reserve requirement is 10% will change the money supply by $1000. BUT the banking system increases the money supply by $900 (the $100 difference being the action of the depositor). Students have to be very careful to read the question carefully and understand the two possible answers for the change ...
Homework 5
... 5. Loanable Funds Market Some economists argue that the savings behavior is not very responsive to the interest rate. Other economists argue that savings is strongly affected by the interest rate. Use the loanable funds framework for a large, closed economy. Compare the effect of expansionary fiscal ...
... 5. Loanable Funds Market Some economists argue that the savings behavior is not very responsive to the interest rate. Other economists argue that savings is strongly affected by the interest rate. Use the loanable funds framework for a large, closed economy. Compare the effect of expansionary fiscal ...
Credit Crunch and Keynesian Contraction: Argentina in crisis ∗
... contraction to follow on the heels of devaluation, a result principally attributed to the adverse balance sheet effects of dollarised liabilities. In a Keynesian model of an open economy with sticky prices, Céspedes, Chang & Velasco (2004) discuss the balance between increased competitiveness and ...
... contraction to follow on the heels of devaluation, a result principally attributed to the adverse balance sheet effects of dollarised liabilities. In a Keynesian model of an open economy with sticky prices, Céspedes, Chang & Velasco (2004) discuss the balance between increased competitiveness and ...
Module1.3
... Used by Fed for temporary adjustments to money supply. Repurchase agreements. Securities sold by dealers under agreement to repurchase on a certain date at a certain price. (adds reserve balances to the banking system) Reverse repurchase agreements. Securities purchased by dealers under agreement to ...
... Used by Fed for temporary adjustments to money supply. Repurchase agreements. Securities sold by dealers under agreement to repurchase on a certain date at a certain price. (adds reserve balances to the banking system) Reverse repurchase agreements. Securities purchased by dealers under agreement to ...
Economics for Today 2nd edition Irvin B. Tucker
... have both risen. b. The Harrison’s nominal income and real income have both fallen. c. The Harrison’s nominal income has fallen, and their real income has risen. d. The Harrison’s nominal income has risen, and their real income has fallen. ...
... have both risen. b. The Harrison’s nominal income and real income have both fallen. c. The Harrison’s nominal income has fallen, and their real income has risen. d. The Harrison’s nominal income has risen, and their real income has fallen. ...
final.tst
... activist fiscal and monetary policy to drive the economy to full employment. Classical economists believe the economy is self-regulating and will always tend towards full employment. Their main policy initiatives center on removing tax created disincentives for growth. Monetarists call for low taxes ...
... activist fiscal and monetary policy to drive the economy to full employment. Classical economists believe the economy is self-regulating and will always tend towards full employment. Their main policy initiatives center on removing tax created disincentives for growth. Monetarists call for low taxes ...
14.02 Principles of Macroeconomics Fall 2005 Quiz 3
... can achieve a total of 100 points. There are 6 short questions, worth 5 points each; followed by 2 long questions (both weighted 35/100 points). You should read all of the questions first. There is a blank page attached at the end of the quiz to be used ...
... can achieve a total of 100 points. There are 6 short questions, worth 5 points each; followed by 2 long questions (both weighted 35/100 points). You should read all of the questions first. There is a blank page attached at the end of the quiz to be used ...
Microeconomic Reforms, Macroeconomic Impacts
... Macroeconomic stability necessary condition for pensions reform ...
... Macroeconomic stability necessary condition for pensions reform ...
Macro Semester Topics
... 7. When product prices are changed first, move points on the ______. This is known as a __________ Change and this will create a surplus or a shortage. 8. When government steps in with artificial price floors and ceilings, they are trying to help suppliers with _________ and consumers with _________ ...
... 7. When product prices are changed first, move points on the ______. This is known as a __________ Change and this will create a surplus or a shortage. 8. When government steps in with artificial price floors and ceilings, they are trying to help suppliers with _________ and consumers with _________ ...
We now combine the IS (commodity
... small, then it takes a very large drop in r to induce individuals voluntarily to hold the higher M s ; a lower f results in a steeper LM curve. In the extreme case (f=0) the LM curve is vertical, when the demand for money depends only on Y and not at all on r, and there is zero liquidity effect: bec ...
... small, then it takes a very large drop in r to induce individuals voluntarily to hold the higher M s ; a lower f results in a steeper LM curve. In the extreme case (f=0) the LM curve is vertical, when the demand for money depends only on Y and not at all on r, and there is zero liquidity effect: bec ...
How do shocks and frictions within financial
... Impatient households borrow subject to a collateral constraint (mortgage borrowing). • We think of the loan-to-value ratio in this constraint as a potential ...
... Impatient households borrow subject to a collateral constraint (mortgage borrowing). • We think of the loan-to-value ratio in this constraint as a potential ...