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MPR Summary - May 2001
MPR Summary - May 2001

... same as the current level of core inflation. Second, wage increases are expected to remain steady, or possibly even edge up if current pressures in some sectors and professions become more widespread, while productivity ...
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... do agree that money, by definition, should be widely, if not completely, acceptable in exchange for all goods and services or paying off debts. Thus, money is valued because it can, with ease, be passed on to others without dispute that proper value is received. To understand Friedman’s interpretati ...
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Improved inflation outlook but a tight stance is still needed
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... relative to costs. The negative side of this is that even though real GDP went up from $2,330.36 to $2,361.72, consumption fell from $1,127.21 to $1,106.82 and investment went down significantly from $265.15 to $119.30. Even with the expanded money supply, the higher interest rate (10.009% compared ...
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... the aggregate supply curve and, if firms correctly anticipate the impact of the money supply on the price level, the aggregate supply curve move cancels the GDP impact of the aggregate demand curve move. Of course, this doesn’t happen if the change in money supply is unanticipated. If sticky price f ...
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... • The check is then sent to a Federal Reserve Bank. • The reserve bank collects the necessary funds from your bank and transfers them to the recipient’s bank. • Your processed check is returned to you by your bank. ...
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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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