NBER WORKING PAPER SERIES RULE-OF-THUMB CONSUMERS AND THE Jordi Galí
... has been argued that simple interest rate rules can approximate well the performance of complex optimal rules in a variety of environments,1 those rules have also been shown to contain the seeds of unnecessary instability when improperly designed.2 A sufficiently strong feedback from endogenous target ...
... has been argued that simple interest rate rules can approximate well the performance of complex optimal rules in a variety of environments,1 those rules have also been shown to contain the seeds of unnecessary instability when improperly designed.2 A sufficiently strong feedback from endogenous target ...
ECONOMICS EOC REVIEW PART 1
... If Dr. Oz expressed grave concern over the connection between bagels and cancer and urged his viewers to limit all bagel consumption, would that create a change in demand or a change in quantity demanded? ...
... If Dr. Oz expressed grave concern over the connection between bagels and cancer and urged his viewers to limit all bagel consumption, would that create a change in demand or a change in quantity demanded? ...
Phillips curve
... • To reduce inflation, the Fed has to pursue contractionary monetary policy. • When the Fed slows the rate of money growth, it contracts aggregate demand. • This reduces the quantity of goods and services that firms produce. • This leads to a rise in unemployment. ...
... • To reduce inflation, the Fed has to pursue contractionary monetary policy. • When the Fed slows the rate of money growth, it contracts aggregate demand. • This reduces the quantity of goods and services that firms produce. • This leads to a rise in unemployment. ...
New Zealand’s macro-economic performance in the 1990s: trends and policy debates
... inflation and a return to operating surpluses. 10-year bond rates dropped reflecting the low inflation and the premium between New Zealand and US government bonds narrowed. In the final quarter of 1999 there was only 2 basis points (0.02%) difference between New Zealand and US 10 year bonds. These r ...
... inflation and a return to operating surpluses. 10-year bond rates dropped reflecting the low inflation and the premium between New Zealand and US government bonds narrowed. In the final quarter of 1999 there was only 2 basis points (0.02%) difference between New Zealand and US 10 year bonds. These r ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
... The design of optimal policy responses to adverse capital account shocks during periods of global capital market turmoil (i.e., skyrocketing bond spreads and a sharp retrenchment in capital inflows or Sudden Stop) has been the source of a lively debate, particularly at the time of the Tequila, the A ...
... The design of optimal policy responses to adverse capital account shocks during periods of global capital market turmoil (i.e., skyrocketing bond spreads and a sharp retrenchment in capital inflows or Sudden Stop) has been the source of a lively debate, particularly at the time of the Tequila, the A ...
UK Economic Policy and the Global Financial Crisis: Paradigm Lost
... ‘unable to meet the high expectations of its traditional supporters and trade union militants or convince financial capital of the probity of its economic policies’. In the financial markets, the government would only lose if it sought to deviate from the Bank’s advice; conversely, the decision to t ...
... ‘unable to meet the high expectations of its traditional supporters and trade union militants or convince financial capital of the probity of its economic policies’. In the financial markets, the government would only lose if it sought to deviate from the Bank’s advice; conversely, the decision to t ...
Orthodox Keynesianism
... circumstances is fiscal policy more robust than monetary policy? Under what circumstances is monetary policy more robust than fiscal policy? ...
... circumstances is fiscal policy more robust than monetary policy? Under what circumstances is monetary policy more robust than fiscal policy? ...
COLUMBIA UNIVERSITY, NEW YORK CITY, 5 MAY 2016 THE
... the question of balance-sheet strategy cannot be ducked. This doesn’t start with the observation that central banks’ asset holdings are currently massive or with a desire to develop new operational instruments in order pursue a revived interest in stability. Instead, it flows from a profound change ...
... the question of balance-sheet strategy cannot be ducked. This doesn’t start with the observation that central banks’ asset holdings are currently massive or with a desire to develop new operational instruments in order pursue a revived interest in stability. Instead, it flows from a profound change ...
Chapter 18 - The Citadel
... Let’s Create Our Own Work As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what the ...
... Let’s Create Our Own Work As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what the ...
The Rand Crises of 1998 and 2001
... once the rand came under significant pressure in late 2001, some analysts regarded the policy of drawing down the NOFP as inappropriate in these circumstances, given that it would contribute to the excess demand for foreign currency and was likely to reduce the likelihood that the SARB would interve ...
... once the rand came under significant pressure in late 2001, some analysts regarded the policy of drawing down the NOFP as inappropriate in these circumstances, given that it would contribute to the excess demand for foreign currency and was likely to reduce the likelihood that the SARB would interve ...
Europe and Central Asia
... Real GDP in Russia declined by 1.2 percent (yearon-year) in the first quarter of 2016, following the sharp 3.7 percent contraction in 2015 (Figure 2.2.4). The Russian economy is struggling to adjust to continued low oil prices, trade embargoes and geopolitical concerns. Though necessary to support t ...
... Real GDP in Russia declined by 1.2 percent (yearon-year) in the first quarter of 2016, following the sharp 3.7 percent contraction in 2015 (Figure 2.2.4). The Russian economy is struggling to adjust to continued low oil prices, trade embargoes and geopolitical concerns. Though necessary to support t ...
US monetary and fiscal policy in the 1930s
... The memo for the Open Market Policy Committee (OMPC) meeting on 26 October finally focused more attention on the bank failures than the gold outflows, but this did not lead to much of a change in OMPC policy. The OMPC chose not to make any major open-market purchases of US securities. Instead, the O ...
... The memo for the Open Market Policy Committee (OMPC) meeting on 26 October finally focused more attention on the bank failures than the gold outflows, but this did not lead to much of a change in OMPC policy. The OMPC chose not to make any major open-market purchases of US securities. Instead, the O ...
International Conference on Draft of remarks prepared by Jan Kregel,
... contention that the economy could achieve an equilibrium state at any level of output, so in monetarist terms the natural rate of unemployment was not unique, just as the natural rate of interest was not unique. If output was constrained by demand, then policy could improve the outcome of the marke ...
... contention that the economy could achieve an equilibrium state at any level of output, so in monetarist terms the natural rate of unemployment was not unique, just as the natural rate of interest was not unique. If output was constrained by demand, then policy could improve the outcome of the marke ...
The projection process and accuracy of the RBNZ projections
... medium-term projections are made, and adjustments to be made by the forecasting team are agreed upon. New projection runs are often commissioned and the adjusted projection is then presented in the “Adjusted Central ...
... medium-term projections are made, and adjustments to be made by the forecasting team are agreed upon. New projection runs are often commissioned and the adjusted projection is then presented in the “Adjusted Central ...
Short- and long-run aspects of fiscal policy in a deep recession1
... following is assumed to hold under “normal circumstances”: • aggregate employment, is at the “full employment” level, = (1 − ̄) where ̄ is the NAIRU and is the aggregate labor supply, a given constant; ...
... following is assumed to hold under “normal circumstances”: • aggregate employment, is at the “full employment” level, = (1 − ̄) where ̄ is the NAIRU and is the aggregate labor supply, a given constant; ...
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.