Housing and Endogenous Default ∗ Emily Marshall Paul Shea
... Gale and Hellwig (1985) model default in a very different setting. They solve for the optimal debt contract in a framework where asymmetric information motivates costly verification in which the state is only observed if the firm is insolvent and goes bankrupt. They show that the optimal credit con ...
... Gale and Hellwig (1985) model default in a very different setting. They solve for the optimal debt contract in a framework where asymmetric information motivates costly verification in which the state is only observed if the firm is insolvent and goes bankrupt. They show that the optimal credit con ...
NBER WORKING PAPER SERIES WHY DOES MONEY AFFECT OUTPUT? A SURVEY
... reduces the effect of money on output and the size of undesired output fluctuations. ...
... reduces the effect of money on output and the size of undesired output fluctuations. ...
Swaps - dedeklegacy.cz
... - long position in futures is appropriate for hedging an expected interest rate fall and short position in futures is appropriate for hedging an expected interest rate rise - the fixed interest stream in a coupon swap can be hedged with long-term interest rate futures contracts (futures on governme ...
... - long position in futures is appropriate for hedging an expected interest rate fall and short position in futures is appropriate for hedging an expected interest rate rise - the fixed interest stream in a coupon swap can be hedged with long-term interest rate futures contracts (futures on governme ...
NBER WORKING PAPER SERIES A THEORY OF DEMAND SHOCKS Guido Lorenzoni
... short-term volatility due to demand shocks. This is in line with existing evidence, based either on long-run restrictions or on sign restrictions on output and price responses. The crucial parameter that determines the relevance of demand shocks is the precision of the public signal. When the publi ...
... short-term volatility due to demand shocks. This is in line with existing evidence, based either on long-run restrictions or on sign restrictions on output and price responses. The crucial parameter that determines the relevance of demand shocks is the precision of the public signal. When the publi ...
Andrs Solimano
... investment options, it also results in fewer of those options being exercised. Thus higher (real) interest rates can reduce investment, but for a different reason than in the standard model. In the standard model, an increase in the interest rate reduces investment by raising ...
... investment options, it also results in fewer of those options being exercised. Thus higher (real) interest rates can reduce investment, but for a different reason than in the standard model. In the standard model, an increase in the interest rate reduces investment by raising ...
1 Principles of Macroeconomics, 9e
... 32) It is difficult to test whether the velocity of money is constant over time, because A) there has been very little variation in the money supply over time. B) there may be a time lag between a change in the money supply and its effects on nominal GDP. C) there is only one definition of the money ...
... 32) It is difficult to test whether the velocity of money is constant over time, because A) there has been very little variation in the money supply over time. B) there may be a time lag between a change in the money supply and its effects on nominal GDP. C) there is only one definition of the money ...
INSTITUTE OF ECONOMIC STUDIES Faculty of social sciences of
... the benchmark interest rate is usually the yield on the most liquid government bond with remaining maturity closest to that of the swap 7.2 Speculative strategies with interest rate swaps interest rate swaps can be used to take risk positions based upon expectations about the direction in which inte ...
... the benchmark interest rate is usually the yield on the most liquid government bond with remaining maturity closest to that of the swap 7.2 Speculative strategies with interest rate swaps interest rate swaps can be used to take risk positions based upon expectations about the direction in which inte ...
Ch 10: The AD-AS Model and Fiscal Policy
... Fiscal policy – the deliberate change in either government spending or taxes to stimulate or slow down the economy. ...
... Fiscal policy – the deliberate change in either government spending or taxes to stimulate or slow down the economy. ...
Cross-Country Spillover Effects and Fiscal Policy
... fiscal policy actions are also likely to affect the demand for imported goods, which registers as a change in export demand in countries that are trade partners. This channel is usually related to budgetary policies. For instance, because of the demand channel, a fiscal stimulus in one country may s ...
... fiscal policy actions are also likely to affect the demand for imported goods, which registers as a change in export demand in countries that are trade partners. This channel is usually related to budgetary policies. For instance, because of the demand channel, a fiscal stimulus in one country may s ...
NBER WORKING PAPER SERIES Robert J. Gordon Working Paper 11778
... beyond the superficial similarity of the 1920s and 1990s to search for worms in the apple of the 1920s. While accepting the role of domestic monetary policy and international monetary relations in explaining the magnitude of the 1929-33 collapse, we identify lesserknown aspects of the 1920s that mad ...
... beyond the superficial similarity of the 1920s and 1990s to search for worms in the apple of the 1920s. While accepting the role of domestic monetary policy and international monetary relations in explaining the magnitude of the 1929-33 collapse, we identify lesserknown aspects of the 1920s that mad ...
Nordic Outlook, February 2017
... protectionist rhetoric of Trump’s campaign seems to be largely in the process of becoming actual policy. We have revised our overall growth forecasts somewhat higher. In the United States, this is especially true of 2018, when fiscal stimulus measures will have a bigger impact. We ...
... protectionist rhetoric of Trump’s campaign seems to be largely in the process of becoming actual policy. We have revised our overall growth forecasts somewhat higher. In the United States, this is especially true of 2018, when fiscal stimulus measures will have a bigger impact. We ...
THE RETURN OF THE WAGE PHILLIPS CURVE
... empirical relation between wage inflation and the unemployment rate in the United Kingdom over the period 1861–1957. His analysis was subsequently replicated using US data by Samuelson and Solow (1960), who showed that a similar empirical relation had been prevalent in the United States, with the ex ...
... empirical relation between wage inflation and the unemployment rate in the United Kingdom over the period 1861–1957. His analysis was subsequently replicated using US data by Samuelson and Solow (1960), who showed that a similar empirical relation had been prevalent in the United States, with the ex ...
by Submitted in fulfilment of the requirements for the degree
... Trade of South Africa with the rest of the world has changed substantially since the mid-1990s. The United States (US), which used to be the main trading partner of South Africa, is now only the third largest trading partner of the country. South African trade with Germany, Japan and the United King ...
... Trade of South Africa with the rest of the world has changed substantially since the mid-1990s. The United States (US), which used to be the main trading partner of South Africa, is now only the third largest trading partner of the country. South African trade with Germany, Japan and the United King ...
Has the Business Cycle Changed and Why?
... ployment in the 1990s was 0.73. The 1990s were also a period of quiescence for inflation: changes in annual price inflation, measured by the GDP deflator, has a relative standard deviation of 0.50. As noted by Kim, Nelson, and Piger (2001), Watson (1999), and Basistha and Startz (2001), the situatio ...
... ployment in the 1990s was 0.73. The 1990s were also a period of quiescence for inflation: changes in annual price inflation, measured by the GDP deflator, has a relative standard deviation of 0.50. As noted by Kim, Nelson, and Piger (2001), Watson (1999), and Basistha and Startz (2001), the situatio ...
... weak outlook for global economic activity, concerns over growth and financial stability remain brisk. Against this background, central banks continue to implement expansionary monetary policies. Ongoing fragilities and imbalances regarding the global economy keep the risk appetite highly volatile. F ...
The 1920s and the 1990s in Mutual Reflection
... beyond the superficial similarity of the 1920s and 1990s to search for worms in the apple of the 1920s. While accepting the role of domestic monetary policy and international monetary relations in explaining the magnitude of the 1929-33 collapse, we identify lesserknown aspects of the 1920s that mad ...
... beyond the superficial similarity of the 1920s and 1990s to search for worms in the apple of the 1920s. While accepting the role of domestic monetary policy and international monetary relations in explaining the magnitude of the 1929-33 collapse, we identify lesserknown aspects of the 1920s that mad ...
Fiscal and Monetary Policy under Imperfect Commitment Davide Debortoli Universitat Pompeu Fabra
... methodologies and applications to show how different degrees of policymakers’ credibility affect the determination of policy choices, such as taxes or monetary instruments, and more generally the economic outcomes. In particular, I try to understand how the economy behaves when building fully credib ...
... methodologies and applications to show how different degrees of policymakers’ credibility affect the determination of policy choices, such as taxes or monetary instruments, and more generally the economic outcomes. In particular, I try to understand how the economy behaves when building fully credib ...
The Money Supply and the Federal Reserve System
... economy is at Point A, a decrease in the price level can cause a movement to Point A) E. B) B. C) C. D) D. Answer: D Refer to Figure 12.11. Suppose the economy is at Point A, a decrease in taxes can cause a movement to Point A) E. B) B. C) C. D) D. Answer: B ...
... economy is at Point A, a decrease in the price level can cause a movement to Point A) E. B) B. C) C. D) D. Answer: D Refer to Figure 12.11. Suppose the economy is at Point A, a decrease in taxes can cause a movement to Point A) E. B) B. C) C. D) D. Answer: B ...
Reforming the Fiscal Framework. The Case of Sweden 1973-2013
... convert to a low inflation strategy by a credible commitment to a fixed exchange rate for the krona, in this way importing the lower rate of inflation assumed to prevail among its main trading partners, in particular in Germany. The course of events leading to the next deep macroeconomic crisis can ...
... convert to a low inflation strategy by a credible commitment to a fixed exchange rate for the krona, in this way importing the lower rate of inflation assumed to prevail among its main trading partners, in particular in Germany. The course of events leading to the next deep macroeconomic crisis can ...
Money and Monetary Policy - Current Practice
... (financial liability) at the same time. There are a lot of relationships between creditors and debtors in the economy but only some relationships are considered as money. Money generally refers only to some relationships where the debtors are banks and the creditors are non-bank entities (relationsh ...
... (financial liability) at the same time. There are a lot of relationships between creditors and debtors in the economy but only some relationships are considered as money. Money generally refers only to some relationships where the debtors are banks and the creditors are non-bank entities (relationsh ...
Endogenous Wage Indexation and Aggregate
... In addition, we assume that a worker does not internalize the effect that her own indexation choice imposes on the aggregate, as her size is negligible in comparison with the whole. In consequence, workers choices lead to an inefficient decentralized equilibrium. Finally, we perform a set of counter ...
... In addition, we assume that a worker does not internalize the effect that her own indexation choice imposes on the aggregate, as her size is negligible in comparison with the whole. In consequence, workers choices lead to an inefficient decentralized equilibrium. Finally, we perform a set of counter ...
Fiscal Fallacies: The Failure of Activist Fiscal Policy
... economy or across time. Fiscal stimulus measures attempt to bring forward demand through unfunded spending measures or tax cuts that reduce the budget balance. The change in the budget balance as a share of GDP measures the ‘fiscal impulse’ that government spending and tax changes are supposed to im ...
... economy or across time. Fiscal stimulus measures attempt to bring forward demand through unfunded spending measures or tax cuts that reduce the budget balance. The change in the budget balance as a share of GDP measures the ‘fiscal impulse’ that government spending and tax changes are supposed to im ...
NBER WORKING PAPER SERIES UNCERTAIN FISCAL CONSOLIDATIONS Huixin Bi Eric M. Leeper
... Theoretical mechanisms underpinning the empirical results have been discussed. In particular, Bertola and Drazen (1993) develop a model where government spending is inherently unsustainable, but the government will satisfy its intertemporal budget constraint by periodically cutting spending. These c ...
... Theoretical mechanisms underpinning the empirical results have been discussed. In particular, Bertola and Drazen (1993) develop a model where government spending is inherently unsustainable, but the government will satisfy its intertemporal budget constraint by periodically cutting spending. These c ...
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.