Growth without Poverty Reduction: The Case of Costa Rica •
... the economy. This fueled inflation since the BCCR devalued the currency by printing new colones. Thus, the crawling peg regime became a subsidy from those who suffered from high inflation (average citizens holding the colón) to those whose incomes and assets were denominated in U.S. dollars (exporte ...
... the economy. This fueled inflation since the BCCR devalued the currency by printing new colones. Thus, the crawling peg regime became a subsidy from those who suffered from high inflation (average citizens holding the colón) to those whose incomes and assets were denominated in U.S. dollars (exporte ...
Chapter 27: The International Financial Crises of the 1990s
... they can shift. The year 1994 was a presidential election year in Mexico. That year began with a guerilla uprising in the province of Chiapas. The year also saw several political assassinations, including that of the candidate from the largest political party. To the foreign exchange speculators, th ...
... they can shift. The year 1994 was a presidential election year in Mexico. That year began with a guerilla uprising in the province of Chiapas. The year also saw several political assassinations, including that of the candidate from the largest political party. To the foreign exchange speculators, th ...
This PDF is a selection from a published volume from... Research Volume Title: Asset Prices and Monetary Policy
... However, and due to the presence of price stickiness, inflation variability is costly. Hence, monetary policy will have to optimally balance the incentive to offset the price stickiness distortion with the one of marginally affecting borrower’s collateral constraint. Our results point out that, quanti ...
... However, and due to the presence of price stickiness, inflation variability is costly. Hence, monetary policy will have to optimally balance the incentive to offset the price stickiness distortion with the one of marginally affecting borrower’s collateral constraint. Our results point out that, quanti ...
February 2012 Aftershock Newsletter Inflation or Deflation? As
... Inflation or Deflation? As readers of our books already know, we have been predicting that future inflation and rising interest rates will put increasing downward pressure on our falling bubble economy, eventually popping the bubbles and causing a massive economic Aftershock here and around the glob ...
... Inflation or Deflation? As readers of our books already know, we have been predicting that future inflation and rising interest rates will put increasing downward pressure on our falling bubble economy, eventually popping the bubbles and causing a massive economic Aftershock here and around the glob ...
Regulation of Australian Service Oligopolies:
... yields that differ beyond what would be expected from time preference and expectations forces (Shiller et al. 1983, He and McCauley 2013). Short bonds primarily serve domestic financial sectors and are instruments of conventional domestic monetary policy. Movements in their yields show their clear l ...
... yields that differ beyond what would be expected from time preference and expectations forces (Shiller et al. 1983, He and McCauley 2013). Short bonds primarily serve domestic financial sectors and are instruments of conventional domestic monetary policy. Movements in their yields show their clear l ...
The Case for a Long-Run Inflation Target of Four Percent
... A central bank does not perfectly control the short-run behavior of inflation, but it does control inflation in the long run, or steady state. Policymakers can choose a target for the inflation rate and keep inflation close to this level on average. What is the optimal inflation target? This is a c ...
... A central bank does not perfectly control the short-run behavior of inflation, but it does control inflation in the long run, or steady state. Policymakers can choose a target for the inflation rate and keep inflation close to this level on average. What is the optimal inflation target? This is a c ...
Real Interest Rate
... depreciating the yen & making Japanese goods e. Not change Not change cheaper which would increase Japan’s exports. ...
... depreciating the yen & making Japanese goods e. Not change Not change cheaper which would increase Japan’s exports. ...
sustainability Monetary and Fiscal Policies for a Finite Planet
... Rodger Mitchell), who publish much of their work on the topic in on-line blogs, make a convincing case that in fiat monetary systems, there are two main sources of money. The national government (including the treasury and central bank) [17] ultimately has a monopoly on national currencies, which ar ...
... Rodger Mitchell), who publish much of their work on the topic in on-line blogs, make a convincing case that in fiat monetary systems, there are two main sources of money. The national government (including the treasury and central bank) [17] ultimately has a monopoly on national currencies, which ar ...
NBER WORKING PAPER SERIES TARGETING NOMINAL INCOME: A NOTE Kenneth D. West
... expectations augmented supply curve (equation (Ib) below). It turns out that radically different conclusions can result. The discussion in section I below focuses on a simple formulation where the contrast is dramatic, namely, when expectations are adaptive, shocks are serially ...
... expectations augmented supply curve (equation (Ib) below). It turns out that radically different conclusions can result. The discussion in section I below focuses on a simple formulation where the contrast is dramatic, namely, when expectations are adaptive, shocks are serially ...
Cyclical patterns of the spanish economy
... analyse first, the regularities in the movements and comovements of Spanish economic aggregates from a business cycle viewpoint; and further, to examine to what extent such regularities differ from those found in other economies. For this purpose, we compute correlations of various types among the d ...
... analyse first, the regularities in the movements and comovements of Spanish economic aggregates from a business cycle viewpoint; and further, to examine to what extent such regularities differ from those found in other economies. For this purpose, we compute correlations of various types among the d ...
Macroeconomic stabilization, monetary
... functioning of financial market improves.6 Admittedly, some limits to arbitrage exist even in “normal times” and some investors value government bonds not only for their pecuniary returns. Consequently, purchases of government bonds by the central bank can produce some stimulus also when financial m ...
... functioning of financial market improves.6 Admittedly, some limits to arbitrage exist even in “normal times” and some investors value government bonds not only for their pecuniary returns. Consequently, purchases of government bonds by the central bank can produce some stimulus also when financial m ...
Getting familiar with global portfolio hedging
... rates via the floating rate on the interest rate swap. Interest rate hedging is profitable if the value of the floating payments received over the life of the bond is higher than the value of the fixed payments made by the investor. This would occur if short-term interest rates are ultimately higher ...
... rates via the floating rate on the interest rate swap. Interest rate hedging is profitable if the value of the floating payments received over the life of the bond is higher than the value of the fixed payments made by the investor. This would occur if short-term interest rates are ultimately higher ...
The Asset Market, Money, and Prices
... which is equal to “η” derived in slide 30 above: ΔM ΔY π ηY M Y ...
... which is equal to “η” derived in slide 30 above: ΔM ΔY π ηY M Y ...
Parkin-Bade Chapter 28
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
14 - The Citadel
... purchases of consumer goods and services by households are added to the planned purchases of capital goods by firms. That is private expenditure. That is added to purchases of goods and services by the government. This total amount of nominal expenditure is then corrected for changes in the price le ...
... purchases of consumer goods and services by households are added to the planned purchases of capital goods by firms. That is private expenditure. That is added to purchases of goods and services by the government. This total amount of nominal expenditure is then corrected for changes in the price le ...
as a PDF
... affect the level of economic activity unless it causes demand to change as well. Within the AS-AD model, an adverse shift in the AS curve can be offset by a shift in AD—albeit at the expense of a higher price level (leaving aside the question of how the supply side would be identified). In the case ...
... affect the level of economic activity unless it causes demand to change as well. Within the AS-AD model, an adverse shift in the AS curve can be offset by a shift in AD—albeit at the expense of a higher price level (leaving aside the question of how the supply side would be identified). In the case ...
NBER WORKING PAPER SERIES CAPITAL FLOWS, THE CURRENT ACCOUNT, CONSEQUENCES OF LIBERALIZATION
... relative to tradables, with weak current—account balances, and with massive foreign reserve accumulation. A goal of the present work is to analyze channels through which policy initiatives of the type seen in the Southern Cone influence the economy's long—run position and its ...
... relative to tradables, with weak current—account balances, and with massive foreign reserve accumulation. A goal of the present work is to analyze channels through which policy initiatives of the type seen in the Southern Cone influence the economy's long—run position and its ...
Which of the following will most likely occur in an economy if more
... d. It will decrease aggregate income. e. It will increase aggregate income as long as the money supply is decreased at a slow, steady rate. 57. Which of the following policies would a Keynesian recommend during a period of high unemployment and low inflation? a. Decreasing the money supply to reduce ...
... d. It will decrease aggregate income. e. It will increase aggregate income as long as the money supply is decreased at a slow, steady rate. 57. Which of the following policies would a Keynesian recommend during a period of high unemployment and low inflation? a. Decreasing the money supply to reduce ...
2 Macroeconomic Variables and Term Structure of Interest
... uncertain times), and pro-cyclical yields on short run (monetary policy reduces the short-term yields during the recession to stimulate economic activity). Note that the presence of the inflation rate may enhance the positive slope of the curve, since the money tomorrow will have a smaller value tha ...
... uncertain times), and pro-cyclical yields on short run (monetary policy reduces the short-term yields during the recession to stimulate economic activity). Note that the presence of the inflation rate may enhance the positive slope of the curve, since the money tomorrow will have a smaller value tha ...
Exchange Rate Risk and Interest Rate: A Case
... The Central Bank of the Republic of Turkey publicly announced that they will follow the exchange rate market by observing the basket of 1 US dollar and 1.5 German mark various times in the past (see Berument, 2001). The level of significance is 5%, unless otherwise mentioned. The inflation and the d ...
... The Central Bank of the Republic of Turkey publicly announced that they will follow the exchange rate market by observing the basket of 1 US dollar and 1.5 German mark various times in the past (see Berument, 2001). The level of significance is 5%, unless otherwise mentioned. The inflation and the d ...
Contents
... Despite firm monetary policy, inflation has proven resilient in New Zealand, and has been too high for too long. However, the accumulated pressure of monetary policy will ultimately have the desired effect. The Bank’s previous projections suggested that inflation would shortly start to fall and then ...
... Despite firm monetary policy, inflation has proven resilient in New Zealand, and has been too high for too long. However, the accumulated pressure of monetary policy will ultimately have the desired effect. The Bank’s previous projections suggested that inflation would shortly start to fall and then ...
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.Further goals of a monetary policy are usually to contribute to economic growth and stability, to lower unemployment, and to maintain predictable exchange rates with other currencies.Monetary economics provides insight into how to craft optimal monetary policy.Monetary policy is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values.Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.