Economics of Money, Banking, and Financial Markets, 8e
... 33) Explain how cigarettes could be called ʺmoneyʺ in prisoner-of-war camps of World War II. Answer: The cigarettes performed the three functions of money. They served as the medium of exchange because individuals did exchange items for cigarettes. They served as a unit of account because prices wer ...
... 33) Explain how cigarettes could be called ʺmoneyʺ in prisoner-of-war camps of World War II. Answer: The cigarettes performed the three functions of money. They served as the medium of exchange because individuals did exchange items for cigarettes. They served as a unit of account because prices wer ...
Monetary Policy Strategy: Lessons from the Crisis
... neoclassical synthesis (Goodfriend and King, 1997) and were agreed to by almost all academic economists and central bankers. The last principle that financial frictions play and important role in business cycles was not explicitly part of models used for policy analysis in central banks, but was wel ...
... neoclassical synthesis (Goodfriend and King, 1997) and were agreed to by almost all academic economists and central bankers. The last principle that financial frictions play and important role in business cycles was not explicitly part of models used for policy analysis in central banks, but was wel ...
Monetary Policy Strategy: Lessons from the Crisis
... neoclassical synthesis (Goodfriend and King, 1997) and were agreed to by almost all academic economists and central bankers. The last principle that financial frictions play and important role in business cycles was not explicitly part of models used for policy analysis in central banks, but was wel ...
... neoclassical synthesis (Goodfriend and King, 1997) and were agreed to by almost all academic economists and central bankers. The last principle that financial frictions play and important role in business cycles was not explicitly part of models used for policy analysis in central banks, but was wel ...
Monetary Policy through Production Networks: Evidence from the Stock Market
... Fratzscher (2004) and Ippolito, Ozdagli, and Perez (2015), among others, show firms with large bank debt and low cash flows as well as small firms and firms with low credit ratings, high price-earnings multiples, and Tobin’s q show a higher sensitivity to monetary policy shocks, which is in line wit ...
... Fratzscher (2004) and Ippolito, Ozdagli, and Perez (2015), among others, show firms with large bank debt and low cash flows as well as small firms and firms with low credit ratings, high price-earnings multiples, and Tobin’s q show a higher sensitivity to monetary policy shocks, which is in line wit ...
Monetary Policy through Production Networks: Evidence from the
... Fratzscher (2004) and Ippolito, Ozdagli, and Perez (2015), among others, show firms with large bank debt and low cash flows as well as small firms and firms with low credit ratings, high price-earnings multiples, and Tobin’s q show a higher sensitivity to monetary policy shocks, which is in line wit ...
... Fratzscher (2004) and Ippolito, Ozdagli, and Perez (2015), among others, show firms with large bank debt and low cash flows as well as small firms and firms with low credit ratings, high price-earnings multiples, and Tobin’s q show a higher sensitivity to monetary policy shocks, which is in line wit ...
Monetary Policy Through Production Networks: Evidence from the
... Identification of unanticipated, presumably exogenous shocks to monetary policy is central to our analysis. In standard macroeconomic contexts (e.g., structural vector autoregressions), one may achieve identification by appealing to minimum delay restrictions whereby monetary policy is assumed to be ...
... Identification of unanticipated, presumably exogenous shocks to monetary policy is central to our analysis. In standard macroeconomic contexts (e.g., structural vector autoregressions), one may achieve identification by appealing to minimum delay restrictions whereby monetary policy is assumed to be ...
Working Paper No. 86 - Levy Economics Institute of Bard College
... Since the costs of writing out the receipts was less than mining gold, goldsmith also a rational economic ...
... Since the costs of writing out the receipts was less than mining gold, goldsmith also a rational economic ...
Market Anticipation of Fed Policy Changes and the Term Structure of
... Downloaded from http://rof.oxfordjournals.org at Funda??o Get?lio Vargas/ RJ on July 27, 2010 ...
... Downloaded from http://rof.oxfordjournals.org at Funda??o Get?lio Vargas/ RJ on July 27, 2010 ...
Anticipation of future consumption: a monetary - ECB
... (1987), assumes the representative agent derives utility from AFC. The second step follows Kuznitz et al. (2008) in assuming that all effects of future consumption on current well being are captured by a single variable, the “stock of future consumption”, analogous to habit formation models. Our stu ...
... (1987), assumes the representative agent derives utility from AFC. The second step follows Kuznitz et al. (2008) in assuming that all effects of future consumption on current well being are captured by a single variable, the “stock of future consumption”, analogous to habit formation models. Our stu ...
The Transmission of Monetary Policy through Redistributions
... …scal transfers— nor is there a complete set of state-contingent securities that would ensure an unchanged income distribution following the policy intervention. The motivation is necessarily a practical one. When researchers estimate the causal e¤ects of monetary policy interventions, they do not ( ...
... …scal transfers— nor is there a complete set of state-contingent securities that would ensure an unchanged income distribution following the policy intervention. The motivation is necessarily a practical one. When researchers estimate the causal e¤ects of monetary policy interventions, they do not ( ...
The Great Depression â Complete Curriculum
... The Great Depression was the worst economic disaster in U.S. history. Factories closed down, about a quarter of the workforce was unemployed (with many more finding only part-time work), stock prices plummeted and thousands of banks failed. The Depression involved every part of the country and every ...
... The Great Depression was the worst economic disaster in U.S. history. Factories closed down, about a quarter of the workforce was unemployed (with many more finding only part-time work), stock prices plummeted and thousands of banks failed. The Depression involved every part of the country and every ...
Some - Jayasri Dutta
... Jevons' celebrated phrase. If barter were the accepted method of trade, many meat-eating brewers would trade and consume potatoes, being uncertain of whether they could trade their produce for meat. Money mediates more ecient trade in such situations, because they can buy meat for money which they ...
... Jevons' celebrated phrase. If barter were the accepted method of trade, many meat-eating brewers would trade and consume potatoes, being uncertain of whether they could trade their produce for meat. Money mediates more ecient trade in such situations, because they can buy meat for money which they ...
Chapter 3. The Money Demand Function
... Keynes’s liquidity preference model or Tobin’s portfolio model should be regarded as a “long-run” money demand function. Thus if those models are fitted directly to the macroeconomic data, their statistical performance are not satisfactory in general. However, adding of the lagged value of money sup ...
... Keynes’s liquidity preference model or Tobin’s portfolio model should be regarded as a “long-run” money demand function. Thus if those models are fitted directly to the macroeconomic data, their statistical performance are not satisfactory in general. However, adding of the lagged value of money sup ...
The optimal quantity of money over the business cycle and at the
... interest bearing assets are substitutes, money creation can again generate some redistribution across agents and thus improve the consumption-saving choice of households. To study these questions, this paper …rst presents a simple general equilibrium model to derive formal proof. Then, it provides a ...
... interest bearing assets are substitutes, money creation can again generate some redistribution across agents and thus improve the consumption-saving choice of households. To study these questions, this paper …rst presents a simple general equilibrium model to derive formal proof. Then, it provides a ...
Introduction to an Alternative History of Money
... against receipts called “goldsmiths’ notes.” Time and effort (now called shoe leather costs) could be saved by exchanging notes, rather than by reclaiming the gold each time an exchange was made. The goldsmith discovered that as a result, some notes were permanently in circulation so that the gold t ...
... against receipts called “goldsmiths’ notes.” Time and effort (now called shoe leather costs) could be saved by exchanging notes, rather than by reclaiming the gold each time an exchange was made. The goldsmith discovered that as a result, some notes were permanently in circulation so that the gold t ...
Introduction to an Alternative History of Money
... against receipts called “goldsmiths’ notes.” Time and effort (now called shoe leather costs) could be saved by exchanging notes, rather than by reclaiming the gold each time an exchange was made. The goldsmith discovered that as a result, some notes were permanently in circulation so that the gold t ...
... against receipts called “goldsmiths’ notes.” Time and effort (now called shoe leather costs) could be saved by exchanging notes, rather than by reclaiming the gold each time an exchange was made. The goldsmith discovered that as a result, some notes were permanently in circulation so that the gold t ...
Long-run Money Demand in OECD Countries: Cross
... The stability of the long-run money demand function is a widely studied research topic. On the one hand, stable money demand is relevant for policy makers to choose a sensible monetary policy instrument. For instance, unstable money demand caused by the financial reforms of the late 1970s induced ma ...
... The stability of the long-run money demand function is a widely studied research topic. On the one hand, stable money demand is relevant for policy makers to choose a sensible monetary policy instrument. For instance, unstable money demand caused by the financial reforms of the late 1970s induced ma ...
Money, Prices and the Real Economy
... money is – primarily a medium of exchange – and shows how the use of a medium of exchange brings both benefits and costs to society. He emphasizes that the use of a medium of exchange brings benefits in the form of lower costs: it ‘lowers costs of acquiring information by shifting attention to the p ...
... money is – primarily a medium of exchange – and shows how the use of a medium of exchange brings both benefits and costs to society. He emphasizes that the use of a medium of exchange brings benefits in the form of lower costs: it ‘lowers costs of acquiring information by shifting attention to the p ...
Maintaining Low Inflation: Money, Interest Rates, and Policy Stance
... (Taylor) from equation (1) and the inflation rate π to which the real interest rate r∗ is added (Fisher)5 . This latter variable corresponds to the Fisherian interest rate, i.e. r∗ + π, where r∗ is set equal to 2. Several interesting features appear from this graph. An obvious fact that is often ov ...
... (Taylor) from equation (1) and the inflation rate π to which the real interest rate r∗ is added (Fisher)5 . This latter variable corresponds to the Fisherian interest rate, i.e. r∗ + π, where r∗ is set equal to 2. Several interesting features appear from this graph. An obvious fact that is often ov ...
pdf Inflation and the growth rate of money in the long run and the
... In this article, we use the New-Keynesian monetary model economy described in Chapter 3 of Galı́ (2008) as our canonical example of the New-Keynesian framework. We chose this model economy because it includes money explicitly.4 The Search-Money framework. The Search-Money framework is a successful a ...
... In this article, we use the New-Keynesian monetary model economy described in Chapter 3 of Galı́ (2008) as our canonical example of the New-Keynesian framework. We chose this model economy because it includes money explicitly.4 The Search-Money framework. The Search-Money framework is a successful a ...
Money, Liquidity, Credit, and Debt
... instruments included in broad money must be both liquid and a reliable store of value, and, with a few possible exceptions, be issued by the money-issuing sector (DCs). Financial instruments issued by other sectors, that are medium of exchange widely used in an economy or are close substitutes for t ...
... instruments included in broad money must be both liquid and a reliable store of value, and, with a few possible exceptions, be issued by the money-issuing sector (DCs). Financial instruments issued by other sectors, that are medium of exchange widely used in an economy or are close substitutes for t ...
Helicopter Money: Irredeemable Fiat Money and the
... The expression 'legal tender' has a technical meaning in relation to the settlement of a debt. The legal definition does not imply that legal tender is a means of payment that must be accepted by the parties to a transaction, but rather that it is a legally defined means of payment that should not ...
... The expression 'legal tender' has a technical meaning in relation to the settlement of a debt. The legal definition does not imply that legal tender is a means of payment that must be accepted by the parties to a transaction, but rather that it is a legally defined means of payment that should not ...
The Monetary Policy Decision Process in the Federal Republic of Germany
... are caused by erratic changes of aggregate demand, mainly due to shifts in the marginal efficiency of capital (Keynesian view of the economy). Nondiscretionary policy can be executed by following some precommitted constraints or by following a fixed rule of monetary expansion. Arguments in favor of ...
... are caused by erratic changes of aggregate demand, mainly due to shifts in the marginal efficiency of capital (Keynesian view of the economy). Nondiscretionary policy can be executed by following some precommitted constraints or by following a fixed rule of monetary expansion. Arguments in favor of ...
Mankiw coursebook - Wouter J. den Haan
... periods during which particular policies would be put in place, the Bank of Japan gives a time period, namely two years, for achieving an objective, namely a 2% inflation rate. Shirai (2013, this eBook) argues that this calendar aspect helps to make the forward guidance of the Bank of Japan more con ...
... periods during which particular policies would be put in place, the Bank of Japan gives a time period, namely two years, for achieving an objective, namely a 2% inflation rate. Shirai (2013, this eBook) argues that this calendar aspect helps to make the forward guidance of the Bank of Japan more con ...
(Accounting Enquiries Volume 10 No. 2 Spring/Summer
... recent example of monetary dislocation - the flight from the domestic currency (the ruble) into foreign exchange [Sachs and Woo 1994, 127]. In the absence of monetary dislocation, while changing demand and supply conditions for goods and services will produce different general price levels, nominal ...
... recent example of monetary dislocation - the flight from the domestic currency (the ruble) into foreign exchange [Sachs and Woo 1994, 127]. In the absence of monetary dislocation, while changing demand and supply conditions for goods and services will produce different general price levels, nominal ...