NBER WORKING PAPER SERIES BOOM-BUSTS IN ASSET PRICES, ECONOMIC INSTABILITY,
... asset booms and busts that have some bearing on the issue. We find that historically, there have been many booms and busts in asset prices, but that they have different features depending on the countries and whether one looks at stock or property prices. Boom-bust episodes seem to be more frequent ...
... asset booms and busts that have some bearing on the issue. We find that historically, there have been many booms and busts in asset prices, but that they have different features depending on the countries and whether one looks at stock or property prices. Boom-bust episodes seem to be more frequent ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... with China. Tension with China of this sort has not only nearly put an end to the potential role that Taiwan can play as a medium or bridge for foreign investors entering the China market, but it has also discouraged private and direct foreign investment in Taiwan. The financial sector in Taiwan has ...
... with China. Tension with China of this sort has not only nearly put an end to the potential role that Taiwan can play as a medium or bridge for foreign investors entering the China market, but it has also discouraged private and direct foreign investment in Taiwan. The financial sector in Taiwan has ...
Interactive Tool
... increase in the index by the initial level of the index. (These indexes show a much higher rate of inflation than the actual.) That is (170 - 150) / 150 = .133 or 13.3 percent. Because this is over a twelvemonth period, it is an annual rate of inflation. More difficult interpretations are based on s ...
... increase in the index by the initial level of the index. (These indexes show a much higher rate of inflation than the actual.) That is (170 - 150) / 150 = .133 or 13.3 percent. Because this is over a twelvemonth period, it is an annual rate of inflation. More difficult interpretations are based on s ...
Chapter 26
... changes in monetary policy directly change aggregate demand and thereby prices, real GDP, and employment. Thus, monetarists focus on the money supply, rather than on the rate of interest. ...
... changes in monetary policy directly change aggregate demand and thereby prices, real GDP, and employment. Thus, monetarists focus on the money supply, rather than on the rate of interest. ...
Structural Estimates of the U.S. Sacrifice Ratio
... possibly the trendgrowthrate of output.Thereis also a strong belief that engineeringinflationreductionsinvolves short-term costs associated with losses in output. Policy makers' decisions on the timing and extent of inflation reduction depend on a balancing of the benefits and costs of moving to a n ...
... possibly the trendgrowthrate of output.Thereis also a strong belief that engineeringinflationreductionsinvolves short-term costs associated with losses in output. Policy makers' decisions on the timing and extent of inflation reduction depend on a balancing of the benefits and costs of moving to a n ...
Private sector expectations for inflation and economic activity in the
... suggesting a slight improvement in the balance of risks to long-term inflation expectations. 1 Regarding indicators of long-term inflation expectations extracted from financial instruments, the ten-year break-even inflation rate derived from French government bonds linked to the euro area HICP (excl ...
... suggesting a slight improvement in the balance of risks to long-term inflation expectations. 1 Regarding indicators of long-term inflation expectations extracted from financial instruments, the ten-year break-even inflation rate derived from French government bonds linked to the euro area HICP (excl ...
What Ends Recessions? - University of California, Berkeley
... 2.2.2 Fiscal Policy Table 3 reports the change in the ratio of the high-employment surplus to trend GDP from peaks to five quarters after troughs. These data do not show any pattern of discretionaryfiscal policy as consistent or strong as the declines in interest rates in recessions. The average cum ...
... 2.2.2 Fiscal Policy Table 3 reports the change in the ratio of the high-employment surplus to trend GDP from peaks to five quarters after troughs. These data do not show any pattern of discretionaryfiscal policy as consistent or strong as the declines in interest rates in recessions. The average cum ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... Equilibrium in the Monetary Sector • The monetary sector will reach equilibrium when the supply of money is exactly equal to the demand for money. • When the supply is matched with demand, the equilibrium interest rate is reached. • The interest rate determines how much people want to keep liquidit ...
... Equilibrium in the Monetary Sector • The monetary sector will reach equilibrium when the supply of money is exactly equal to the demand for money. • When the supply is matched with demand, the equilibrium interest rate is reached. • The interest rate determines how much people want to keep liquidit ...
Macro 2.3- Inflation
... •Assume the velocity is relatively constant because people's spending habits are not quick to change. •Also assume that output (Y) is not affected by the amount of money because it is based on production, not the value of the stuff produced. If the govenment increases the amount of money (M) what wi ...
... •Assume the velocity is relatively constant because people's spending habits are not quick to change. •Also assume that output (Y) is not affected by the amount of money because it is based on production, not the value of the stuff produced. If the govenment increases the amount of money (M) what wi ...
Macro Syllabus
... to someone who has not had an economics course. Economics is not a discipline that can be learned the night before an exam, so it is crucial that you keep up with the reading and your class notes. ...
... to someone who has not had an economics course. Economics is not a discipline that can be learned the night before an exam, so it is crucial that you keep up with the reading and your class notes. ...
Macroeconomic populism
... between real wages, the real exchange rate. real interest rate, the fiscal budget and inflation. We show that policies based on wage increases and deficit expansions face severe tradeoffs. While higher wages will be achieved, inflation will erupt, competitiveness will be eroded and an external crisi ...
... between real wages, the real exchange rate. real interest rate, the fiscal budget and inflation. We show that policies based on wage increases and deficit expansions face severe tradeoffs. While higher wages will be achieved, inflation will erupt, competitiveness will be eroded and an external crisi ...
NBER RKING PAPER SERIES
... prices, and to analyze how these gains depend on openness. The policies considered are wage indexation and monetary policy. The framework underlying the paper is that of a small economy, producing traded and non—traded goods. The analysis focuses on the role of the relative price of non—traded goods ...
... prices, and to analyze how these gains depend on openness. The policies considered are wage indexation and monetary policy. The framework underlying the paper is that of a small economy, producing traded and non—traded goods. The analysis focuses on the role of the relative price of non—traded goods ...
Helicopter Money - Global Interdependence Center
... In our present work, we transition from using history as guidance to identify the optimal policy mix du jour and focus instead on explaining the economic logic of why orthodoxies will continue to be discarded in the advanced world and why the democratic process will ultimately “corner” policymakers ...
... In our present work, we transition from using history as guidance to identify the optimal policy mix du jour and focus instead on explaining the economic logic of why orthodoxies will continue to be discarded in the advanced world and why the democratic process will ultimately “corner” policymakers ...
Baylor University
... Main Points of Chapter 9, Page 2 10. In the "short-run," actual output (Y) can differ from the level of Y at which the LRAS curve is vertical. Economists call the level of output at which the LRAS curve is vertical by various names, all of which mean the same thing: (i) the full-employment level of ...
... Main Points of Chapter 9, Page 2 10. In the "short-run," actual output (Y) can differ from the level of Y at which the LRAS curve is vertical. Economists call the level of output at which the LRAS curve is vertical by various names, all of which mean the same thing: (i) the full-employment level of ...
Real interest rate
... A change in the inflation rate, π, does not shift the demand or supply curve for capital services. Therefore, ( R/P) * and (κK) * do not change. A change in the inflation rate, π, does not shift the demand or supply curve for labor. Therefore, ( w/ P) * and L* ...
... A change in the inflation rate, π, does not shift the demand or supply curve for capital services. Therefore, ( R/P) * and (κK) * do not change. A change in the inflation rate, π, does not shift the demand or supply curve for labor. Therefore, ( w/ P) * and L* ...
monetary policy statement
... the impact of global shocks turned out to be severe and rapid. Consequently, in Fy08, country’s twin deficits magnified to unsustainable levels, which along with supply side constraints escalated inflation (see Annexure I). To avoid further complexities, both the Government and ...
... the impact of global shocks turned out to be severe and rapid. Consequently, in Fy08, country’s twin deficits magnified to unsustainable levels, which along with supply side constraints escalated inflation (see Annexure I). To avoid further complexities, both the Government and ...
To the problem of turbulence in quantitative easing
... Abstract – The central banks introduced a series of quantitative easing programs and decreased the long term interest rates to near zero with the aim to ease the credit conditions and provide the liquidity into the financial systems, responding to the 2007-2013 financial crisis in the USA, UK, Weste ...
... Abstract – The central banks introduced a series of quantitative easing programs and decreased the long term interest rates to near zero with the aim to ease the credit conditions and provide the liquidity into the financial systems, responding to the 2007-2013 financial crisis in the USA, UK, Weste ...
Economics for Today 2nd edition Irvin B. Tucker
... the money supply. Second, changes in the money supply change the equilibrium interest rate, which affects investment spending. Finally, a change in investment changes aggregate demand and determines the level of prices, real GDP, and employment. ...
... the money supply. Second, changes in the money supply change the equilibrium interest rate, which affects investment spending. Finally, a change in investment changes aggregate demand and determines the level of prices, real GDP, and employment. ...
Mankiw90
... announcement in order to reduce unemployment. Private economic actors understand the incentive to renege and therefore do not believe the announcement in the first place. Just as a president facing a hostage crisis is sorely tempted to negotiate the hostages' release, a monetary authority with discr ...
... announcement in order to reduce unemployment. Private economic actors understand the incentive to renege and therefore do not believe the announcement in the first place. Just as a president facing a hostage crisis is sorely tempted to negotiate the hostages' release, a monetary authority with discr ...
A Dynamic Model of Aggregate Demand and Aggregate Supply
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
Was the New Deal Contractionary?
... shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would require a negative nominal interest rate, and the nominal interest rate cannot be negative. T ...
... shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would require a negative nominal interest rate, and the nominal interest rate cannot be negative. T ...
rhetorical economic cycle
... steady rate of Unemployment with a steady rate of Inflation. All while promoting steady economic growth. Too much Unemployment or high Inflation changes the soundness of our economy to a level that is dangerous or unacceptable. By adjusting the 4 knobs on the Mixing Board, the Fed attempts to mainta ...
... steady rate of Unemployment with a steady rate of Inflation. All while promoting steady economic growth. Too much Unemployment or high Inflation changes the soundness of our economy to a level that is dangerous or unacceptable. By adjusting the 4 knobs on the Mixing Board, the Fed attempts to mainta ...
Student Study Guide for Chapter 12
... 22. The ADE curve would shift with changes in: levels of government spending, taxation, autonomous consumption, autonomous investment, and net exports, and with a change in the Fed inflation rate target. 23. The four regions are: maximum capacity output, the wage price spiral, the full employment ra ...
... 22. The ADE curve would shift with changes in: levels of government spending, taxation, autonomous consumption, autonomous investment, and net exports, and with a change in the Fed inflation rate target. 23. The four regions are: maximum capacity output, the wage price spiral, the full employment ra ...
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.