The effects of a government expenditures shock
... RBC model by including imperfect competition, price-setting and wage-setting frictions, lumpsum taxation, investment adjustment costs and also non-Ricardian rule-of-thumb consumers, which are consumers that consume all their available disposable income in each period, to obtain the result that unde ...
... RBC model by including imperfect competition, price-setting and wage-setting frictions, lumpsum taxation, investment adjustment costs and also non-Ricardian rule-of-thumb consumers, which are consumers that consume all their available disposable income in each period, to obtain the result that unde ...
Some observations about the endogenous money theory
... neutrality of money are grounded in the store of wealth function of money; the liquidity preference theory is the element on which the keynesian explanation of income fluctuation is based. The importance of the money endogeneity theory can therefore be assessed in relation to its ability to specify ...
... neutrality of money are grounded in the store of wealth function of money; the liquidity preference theory is the element on which the keynesian explanation of income fluctuation is based. The importance of the money endogeneity theory can therefore be assessed in relation to its ability to specify ...
From bimetallism to monetarism
... deposits that normally vary in unison with the quantity of money), provided that the velocities of circulation and the volume of trade remain unchanged, and that there be a given state of development in deposit banking. This is one of the chief propositions concerning the level of prices or its reci ...
... deposits that normally vary in unison with the quantity of money), provided that the velocities of circulation and the volume of trade remain unchanged, and that there be a given state of development in deposit banking. This is one of the chief propositions concerning the level of prices or its reci ...
IOSR Journal Of Humanities And Social Science (JHSS)
... money in an economy, in consonance with expected level of economic activity. An excess supply of money would result in excess demand for goods and services, which would cause rising prices and/or a deterioration of the balance of payment position. On the other hand, an inadequate supply of money cou ...
... money in an economy, in consonance with expected level of economic activity. An excess supply of money would result in excess demand for goods and services, which would cause rising prices and/or a deterioration of the balance of payment position. On the other hand, an inadequate supply of money cou ...
M x V = Spending
... narrowest definition, consists of money typically used for everyday transactions –– coins and currency in people's hands plus checking account funds and travelers' checks. M2, the broader definition, includes M1 plus "savings" money –– passbooksavings accounts, money market mutual funds, money marke ...
... narrowest definition, consists of money typically used for everyday transactions –– coins and currency in people's hands plus checking account funds and travelers' checks. M2, the broader definition, includes M1 plus "savings" money –– passbooksavings accounts, money market mutual funds, money marke ...
The characteristics of a monetary economy: a Keynes
... respect to a barter economy. Like Keynes, Schumpeter states that the presence of a fiat money gives the economy a completely different structure from that of a barter economy. Schumpeter (1912) emphasises this point by distinguishing between a pure exchange economy and a capitalist economy. A pure e ...
... respect to a barter economy. Like Keynes, Schumpeter states that the presence of a fiat money gives the economy a completely different structure from that of a barter economy. Schumpeter (1912) emphasises this point by distinguishing between a pure exchange economy and a capitalist economy. A pure e ...
Money, prices and exchange rates in the long run
... run. By long run we mean a time horizon that is large enough for prices to fully adjust to their equilibrium levels. Thus, in the long run, the economy will be producing at full employment, and the classical dichotomy will hold: real variables, such as the real interest rate and output are determine ...
... run. By long run we mean a time horizon that is large enough for prices to fully adjust to their equilibrium levels. Thus, in the long run, the economy will be producing at full employment, and the classical dichotomy will hold: real variables, such as the real interest rate and output are determine ...
4 - Weber State University
... A) rise planned investment rises, ceteris paribus. B) fall planned investment falls, ceteris paribus. C) rise planned investment does not change. D) rise planned investment falls, ceteris paribus. 37) If business firms are more optimistic during the expansion phase of the business cycle, they A) rai ...
... A) rise planned investment rises, ceteris paribus. B) fall planned investment falls, ceteris paribus. C) rise planned investment does not change. D) rise planned investment falls, ceteris paribus. 37) If business firms are more optimistic during the expansion phase of the business cycle, they A) rai ...
Vienna vs. Chicago on Monetary Issues
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
... demand in initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spread so ...
Monetary Policy and Economic Policy
... independent central bank with low inflation targets (but no output targets). Hence, private agents know that inflation will be low because it is set by an independent body. Central banks can be given incentives to meet targets (for example, larger budgets, a wage bonus for the head of the bank) to i ...
... independent central bank with low inflation targets (but no output targets). Hence, private agents know that inflation will be low because it is set by an independent body. Central banks can be given incentives to meet targets (for example, larger budgets, a wage bonus for the head of the bank) to i ...
Macroeconomics
... If GDP declines, most workers who are laid off become unemployed (and it becomes harder for people who are looking for work to find jobs). Because of the importance of hours reductions and the common pattern of retaining workers during temporary declines in demand (called labor hoarding), a 3 percen ...
... If GDP declines, most workers who are laid off become unemployed (and it becomes harder for people who are looking for work to find jobs). Because of the importance of hours reductions and the common pattern of retaining workers during temporary declines in demand (called labor hoarding), a 3 percen ...
editing method for the bulletin of the transilvania university
... excepting the UK and USA, which held only gold reserves. In the face of huge gold and capital outflows, UK departed from gold in 1931; in USA the gold owned by private citizens was nationalized in 1933. There was a further modification of the gold standard under the Bretton Woods system (1946-1971), ...
... excepting the UK and USA, which held only gold reserves. In the face of huge gold and capital outflows, UK departed from gold in 1931; in USA the gold owned by private citizens was nationalized in 1933. There was a further modification of the gold standard under the Bretton Woods system (1946-1971), ...
Money Overhang, Credit Overhang and Financial Imbalances in the
... The Latin-American debt crisis of the 1980s, after a decade of Latin-American deficit financing by petro-dollars via the American banking system, serves as an early example that non-sustainable foreign debt positions can arise in practice. ...
... The Latin-American debt crisis of the 1980s, after a decade of Latin-American deficit financing by petro-dollars via the American banking system, serves as an early example that non-sustainable foreign debt positions can arise in practice. ...
Inflation, Crisis and Money
... Besides the papers above, the idea of this paper comes more from the work done by Karin Assenmacher-Wesche and Stefan Gerlach (2006) . In their paper “understanding the link between money growth and inflation in the Euro Area” (AWG, 2006), they used frequency-do ...
... Besides the papers above, the idea of this paper comes more from the work done by Karin Assenmacher-Wesche and Stefan Gerlach (2006) . In their paper “understanding the link between money growth and inflation in the Euro Area” (AWG, 2006), they used frequency-do ...
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... 28. Which of the following statements is false? a. Money can always function as a store of purchasing power, even if its value is relatively unstable. b. The ease with which an asset can be exchanged for money or other assets is referred to as liquidity. c. Credit money is any circulating medium whi ...
... 28. Which of the following statements is false? a. Money can always function as a store of purchasing power, even if its value is relatively unstable. b. The ease with which an asset can be exchanged for money or other assets is referred to as liquidity. c. Credit money is any circulating medium whi ...
Money
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context, or is easily converted to such a form. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered money.Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without intrinsic use value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for ""all debts, public and private"". Such laws in practice cause fiat money to acquire the value of any of the goods and services that it may be traded for within the nation that issues it.The money supply of a country consists of currency (banknotes and coins) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, which consists only of records (mostly computerized in modern banking), forms by far the largest part of broad money in developed countries.