Correction
... 18. Banks in Singapore are mostly borrowing in foreign currency (US dollar). A depreciation of the Singaporean dollar: a. Makes banks in Singapore vulnerable to default as they are making capital losses. b. Makes banks safer as they are making capital gains on their assets in the Singaporean econom ...
... 18. Banks in Singapore are mostly borrowing in foreign currency (US dollar). A depreciation of the Singaporean dollar: a. Makes banks in Singapore vulnerable to default as they are making capital losses. b. Makes banks safer as they are making capital gains on their assets in the Singaporean econom ...
Out of the corridor: Keynes and the crisis
... just as well to the USA and several other countries. What it means is that many banks are, in fact, insolvent.2 The maturity mismatch between their liabilities and assets then poses an immediate danger. To the extent that they do not finance their positions with insured deposits, they must constantl ...
... just as well to the USA and several other countries. What it means is that many banks are, in fact, insolvent.2 The maturity mismatch between their liabilities and assets then poses an immediate danger. To the extent that they do not finance their positions with insured deposits, they must constantl ...
Nominal GDP Targeting Bennett McCallum Tepper School of
... that is, the difference between actual output and its “natural” value (which would be forthcoming if it were not for certain frictions, including primarily “price level stickiness,” i.e., slow adjustment of prices to changes in macroeconomic conditions). To focus on nominal GDP growth is only one w ...
... that is, the difference between actual output and its “natural” value (which would be forthcoming if it were not for certain frictions, including primarily “price level stickiness,” i.e., slow adjustment of prices to changes in macroeconomic conditions). To focus on nominal GDP growth is only one w ...
Classical Economics and the Business Cycles
... 1. What do we believe is the best theory of how GDP, prices, and other variables are determined in the short run? Such a theory may allow more than one potential cause of business cycles. ...
... 1. What do we believe is the best theory of how GDP, prices, and other variables are determined in the short run? Such a theory may allow more than one potential cause of business cycles. ...
What We Do - Chicago Fed
... the need for a central bank, they will need to experience what an economy might be like without the Federal Reserve. Explain that during the 19th Century, there was no central monetary authority. Currency was being issued by many banks. As more notes were issued, currency would begin to lose its pur ...
... the need for a central bank, they will need to experience what an economy might be like without the Federal Reserve. Explain that during the 19th Century, there was no central monetary authority. Currency was being issued by many banks. As more notes were issued, currency would begin to lose its pur ...
Quiz 1: Winter 2004
... that payment is going to compensate the lender for the fact that the amount they lent to me is worth less when I pay it back than when I borrowed it (π). None of the other information is relevant (expected gdp growth does not enter into the real interest rate calculation nor does growth in investmen ...
... that payment is going to compensate the lender for the fact that the amount they lent to me is worth less when I pay it back than when I borrowed it (π). None of the other information is relevant (expected gdp growth does not enter into the real interest rate calculation nor does growth in investmen ...
Inflation - Mr. P. Ronan
... Costs of Inflation Inflation will not only affect individuals, but will also cause problems for the whole economy. The costs of inflation include: Uncertainty - if inflation keeps varying, then firms may be reluctant to invest in new plant and equipment as they may be unsure of what the government ...
... Costs of Inflation Inflation will not only affect individuals, but will also cause problems for the whole economy. The costs of inflation include: Uncertainty - if inflation keeps varying, then firms may be reluctant to invest in new plant and equipment as they may be unsure of what the government ...
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... speak, from creditors to debtors will occur, in which creditors will lose and debtors will gain. By contrast, in case you wish to newly borrow money, the lender will require a high ...
... speak, from creditors to debtors will occur, in which creditors will lose and debtors will gain. By contrast, in case you wish to newly borrow money, the lender will require a high ...
July Economic Outlook
... ascent of the U.S. dollar index (a basket of the major currencies in the world), as it is up about 25% since last summer. The concerns revolve around the amount of dollar denominated debt that has been issued since 2009, about $9 trillion. With a dollar that is worth about 25% more, those loans and ...
... ascent of the U.S. dollar index (a basket of the major currencies in the world), as it is up about 25% since last summer. The concerns revolve around the amount of dollar denominated debt that has been issued since 2009, about $9 trillion. With a dollar that is worth about 25% more, those loans and ...
Chapter 15 Monetary Policy
... (inflation), it’s the job of the Fed to take away the punch bowl.” ...
... (inflation), it’s the job of the Fed to take away the punch bowl.” ...
The Development of Capital Markets
... Why is Price Stability Important? • If behavior of price level or inflation were certain, then there would be less risk for business and individuals. They would know the real rates of interest. • Real interest rate = Nominal interest rate - Rate of Inflation • But the more uncertain people are abo ...
... Why is Price Stability Important? • If behavior of price level or inflation were certain, then there would be less risk for business and individuals. They would know the real rates of interest. • Real interest rate = Nominal interest rate - Rate of Inflation • But the more uncertain people are abo ...
and inflation. - McEachern High School
... B.) the end of the Afghanistan War causes a dramatic increase in tourism to that nation. C.) Kenya decides to address its debt crisis by injecting $30 billion in currency into the economy. D.) a tsunami in Japan wipes out the infrastructure for delivering essential goods and services. ...
... B.) the end of the Afghanistan War causes a dramatic increase in tourism to that nation. C.) Kenya decides to address its debt crisis by injecting $30 billion in currency into the economy. D.) a tsunami in Japan wipes out the infrastructure for delivering essential goods and services. ...
AP MACRO EXAM REVIEW SHEET ANSWERS
... translates into lower business costs which allows for an increase in production. While nominal wages fall, real wages would remain the same because prices would also drop since firms would need to move out growing inventories. ...
... translates into lower business costs which allows for an increase in production. While nominal wages fall, real wages would remain the same because prices would also drop since firms would need to move out growing inventories. ...
A Constant Unit of Account Richard W. Rahn
... that the SDR can serve as a unit of account, a means of payment, and even a store of value, but the definition and value is determined by a group of international bureaucrats and is—usually for good reason—periodically revised. When the SDR was last revised in 2006, its currency basket consisted of ...
... that the SDR can serve as a unit of account, a means of payment, and even a store of value, but the definition and value is determined by a group of international bureaucrats and is—usually for good reason—periodically revised. When the SDR was last revised in 2006, its currency basket consisted of ...
Monetary Policy Rules - Central Web Server 2
... how the macroeconomy works—is the recognition that expectations play a central role in affecting economic behavior. Previously, to the extent that expectations were considered at all, they were treated in a rather mechanical fashion. Contemporary analyses now postulate that individuals do not simply ...
... how the macroeconomy works—is the recognition that expectations play a central role in affecting economic behavior. Previously, to the extent that expectations were considered at all, they were treated in a rather mechanical fashion. Contemporary analyses now postulate that individuals do not simply ...
AP Macro Unit 4 Multiple Choice Questions
... C. Decrease in required reserve ratio D. The banks can only make a set number of loans E. Individuals holding a larger portion of their assets as cash 8. When an economy is at full employmnet, an expansionary monetary policy will lead to A. Lower interest rates and more investment B. Lower interest ...
... C. Decrease in required reserve ratio D. The banks can only make a set number of loans E. Individuals holding a larger portion of their assets as cash 8. When an economy is at full employmnet, an expansionary monetary policy will lead to A. Lower interest rates and more investment B. Lower interest ...
Money Demand and the Quantity Theory
... demand for money is stable and, by extension, that the quantity theory of money remains useful. Think, by contrast, of how a more ordinary research article in monetary economics is organized. After an introductory section, with motivation and a review of the literature, comes the description of the ...
... demand for money is stable and, by extension, that the quantity theory of money remains useful. Think, by contrast, of how a more ordinary research article in monetary economics is organized. After an introductory section, with motivation and a review of the literature, comes the description of the ...
Chapter 1
... states of the world: adequate financial liquidity and deficient financial liqudity. • Deficient financial liquidity occurs in a financial crisis due to factors that impair the ability of the financial sector to create financial liquid assets. ...
... states of the world: adequate financial liquidity and deficient financial liqudity. • Deficient financial liquidity occurs in a financial crisis due to factors that impair the ability of the financial sector to create financial liquid assets. ...
Demonetization: New Beginning
... tender of the United States. The withdrawal of silver from the economy resulted in a contraction of the money supply, which subsequently led to a 5-year economic depression in the country. In response to the dire situation and pressure from silver miners and farmers, the Bland-Allison Act remonetize ...
... tender of the United States. The withdrawal of silver from the economy resulted in a contraction of the money supply, which subsequently led to a 5-year economic depression in the country. In response to the dire situation and pressure from silver miners and farmers, the Bland-Allison Act remonetize ...