Chapter 3. From Recession to Recovery: How Soon and How
... conditions from bank failures and increased cashto-deposit ratios. Although subsequent research has qualified some of Friedman and Schwartz’s findings, the thrust remains relevant (see, for instance, Calomiris, 1993). See, for example, Eggertsson (2008), Romer (1990), and Temin and Wigmore (1990). ...
... conditions from bank failures and increased cashto-deposit ratios. Although subsequent research has qualified some of Friedman and Schwartz’s findings, the thrust remains relevant (see, for instance, Calomiris, 1993). See, for example, Eggertsson (2008), Romer (1990), and Temin and Wigmore (1990). ...
Interest Rate, Credit to Private Sector, Inflation Rate, Money Supply
... country and it is an important variable to determine the comparison between two countries performance. Moreover, GDP can be represented by Marginal Propensity to Save (MPS). GDP will be rising when there is a rapid economic growth in a country’s economy. According to the result obtained by Singhal ( ...
... country and it is an important variable to determine the comparison between two countries performance. Moreover, GDP can be represented by Marginal Propensity to Save (MPS). GDP will be rising when there is a rapid economic growth in a country’s economy. According to the result obtained by Singhal ( ...
Macro Policy Debates
... need to act and the time that it takes for these policies to work. Many studies indicate that changes in monetary policy have little effect on aggregate demand until about six months after the change is made. Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. ...
... need to act and the time that it takes for these policies to work. Many studies indicate that changes in monetary policy have little effect on aggregate demand until about six months after the change is made. Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. ...
Why foreign savings fail to cause growth - Bresser
... PAULO GALA* The present paper is a formalization of the critique of the growth with foreign savings strategy that one of its authors has been doing in recent years. Although medium income countries are capital poor, current account deficits (foreign savings), financed either by loans or by foreign d ...
... PAULO GALA* The present paper is a formalization of the critique of the growth with foreign savings strategy that one of its authors has been doing in recent years. Although medium income countries are capital poor, current account deficits (foreign savings), financed either by loans or by foreign d ...
Inflation Targeting with a backward Bending Phillips Curve
... require agents understand what policy is doing, which leads to analyzing policy in terms of “systematic rules”. That reframes policy in terms of establishing an optimal policy rule. To be effective the rule must be believed by the public, which leads to the problems of time consistency of policy (Ky ...
... require agents understand what policy is doing, which leads to analyzing policy in terms of “systematic rules”. That reframes policy in terms of establishing an optimal policy rule. To be effective the rule must be believed by the public, which leads to the problems of time consistency of policy (Ky ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS AND EXPECTATION DYNAMICS:
... In principle the multiplicity problem can be eliminated by suitable monetary or …scal policies that ensures that in‡ation never falls below some value > L . For example, Benhabib, Schmitt-Grohe, and Uribe (2002) argue that commitment to an aggressive …scal rule at low in‡ation rates would eliminate ...
... In principle the multiplicity problem can be eliminated by suitable monetary or …scal policies that ensures that in‡ation never falls below some value > L . For example, Benhabib, Schmitt-Grohe, and Uribe (2002) argue that commitment to an aggressive …scal rule at low in‡ation rates would eliminate ...
Principles of Macroeconomics
... markets—topics of ongoing reporting, discussion, and debate. • Monetary and fiscal policy announcements and discussions focused on inflation targets, interest rate settings, budget balances, tax rates, expenditures, and public debt targets as these affect economic performance. • Exports, imports, in ...
... markets—topics of ongoing reporting, discussion, and debate. • Monetary and fiscal policy announcements and discussions focused on inflation targets, interest rate settings, budget balances, tax rates, expenditures, and public debt targets as these affect economic performance. • Exports, imports, in ...
Wage Rigidity in the Great Depression June, 2012 Christopher Hanes Department of Economics
... Studies that compare inflation across business cycles of the pre-1914, postwar and interwar eras generally find that inflation fell more rapidly in 1920-21 than in any other cyclical downturn, in any era. Schultze (1981, p. 562), Gordon (1983, p. 105) and Vernon (1991) argue that this was because th ...
... Studies that compare inflation across business cycles of the pre-1914, postwar and interwar eras generally find that inflation fell more rapidly in 1920-21 than in any other cyclical downturn, in any era. Schultze (1981, p. 562), Gordon (1983, p. 105) and Vernon (1991) argue that this was because th ...
Deflation and real estate
... shown in Japan, where the increase in supply has contributed to a continued decline of prices. Especially in the light of the current low interest rate environment it is recommended to be vigilant with many new construction projects. The low interest rate may be attractive to borrow, in case of defl ...
... shown in Japan, where the increase in supply has contributed to a continued decline of prices. Especially in the light of the current low interest rate environment it is recommended to be vigilant with many new construction projects. The low interest rate may be attractive to borrow, in case of defl ...
Analysis of macroeconomic shocks in FSU countries
... next ones to join the EU, namely Bulgaria, Romania, Croatia and Turkey. Macro performance of Ukraine is somewhat better and at times Ukraine outperforms the old EU members. Among major macro indicators set by the Maastrich Treaty, such as inflation, public debt and budget deficit, only inflation is ...
... next ones to join the EU, namely Bulgaria, Romania, Croatia and Turkey. Macro performance of Ukraine is somewhat better and at times Ukraine outperforms the old EU members. Among major macro indicators set by the Maastrich Treaty, such as inflation, public debt and budget deficit, only inflation is ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Our analysis demonstrates that, on the formal level, the various indexation rules bear a dual relationship to the various monetary targeting rules. We show that the welfare ranking of the various rules depends on whether the elasticity of the demand for labor exceeds or falls short of the elasticity ...
... Our analysis demonstrates that, on the formal level, the various indexation rules bear a dual relationship to the various monetary targeting rules. We show that the welfare ranking of the various rules depends on whether the elasticity of the demand for labor exceeds or falls short of the elasticity ...
Wage Indexation, Supply Shocks, and Monetary Policy in a Small
... Our analysis demonstrates that, on the formal level, the various indexation rules bear a dual relationship to the various monetary targeting rules. We show that the welfare ranking of the various rules depends on whether the elasticity of the demand for labor exceeds or falls short of the elasticity ...
... Our analysis demonstrates that, on the formal level, the various indexation rules bear a dual relationship to the various monetary targeting rules. We show that the welfare ranking of the various rules depends on whether the elasticity of the demand for labor exceeds or falls short of the elasticity ...
The Fiscal Policy`s Comparisons Between Chinese and Western
... Since 1973, research devoted to the conceptual framework, has issued a total of 7 concepts announcement, established by fiscal targets as the logical starting point on the confirmation, measurement and report of financial and taxation theory, using theoretical basis as fiscal and financial reporting ...
... Since 1973, research devoted to the conceptual framework, has issued a total of 7 concepts announcement, established by fiscal targets as the logical starting point on the confirmation, measurement and report of financial and taxation theory, using theoretical basis as fiscal and financial reporting ...
The Political Economy of Commitment to the Gold Standard First
... (i.e., in “non-dilemma” situations when internal and external policy did not conflict), but abandoned it when economic conditions deteriorated. For countries such as Greece, Argentina, and Brazil the gold standard was more the exception rather than the rule. In this paper, I attempt to explain why d ...
... (i.e., in “non-dilemma” situations when internal and external policy did not conflict), but abandoned it when economic conditions deteriorated. For countries such as Greece, Argentina, and Brazil the gold standard was more the exception rather than the rule. In this paper, I attempt to explain why d ...
Macro Syllabusx - IDLA – Blackboard Learn
... *Explain what banks do. *Explain the following terms: bank reserves, reserve ratio, excess. *Explain how the process of fractional reserve banking works. *Calculate, using the money multiplier the amount of money that can be generated *Explain and graph the relationship between demand for money and ...
... *Explain what banks do. *Explain the following terms: bank reserves, reserve ratio, excess. *Explain how the process of fractional reserve banking works. *Calculate, using the money multiplier the amount of money that can be generated *Explain and graph the relationship between demand for money and ...
From Recession to Recovery
... recession, GDP falls by about 2¾ percent (Table 1).7 In contrast, during an expansion, GDP tends to rise by almost 20 percent. This illustrates mainly the importance of trend growth; the higher the long-run growth rate of an economy, the shallower the recession and the greater the amplitude of expan ...
... recession, GDP falls by about 2¾ percent (Table 1).7 In contrast, during an expansion, GDP tends to rise by almost 20 percent. This illustrates mainly the importance of trend growth; the higher the long-run growth rate of an economy, the shallower the recession and the greater the amplitude of expan ...
NBER WORKING PAPER SERIES EXCHANGE RATE VOLATILITY AND PRODUCTIVITY
... consistently …nd that a high degree of exchange rate ‡exibility leads to lower growth in countries with relatively thin …nancial markets. Moreover, these e¤ects are not only statistically signi…cant, they appear quantitatively signi…cant as well. For example, our estimates indicate that a country wh ...
... consistently …nd that a high degree of exchange rate ‡exibility leads to lower growth in countries with relatively thin …nancial markets. Moreover, these e¤ects are not only statistically signi…cant, they appear quantitatively signi…cant as well. For example, our estimates indicate that a country wh ...
Understanding Inflation as a Joint Monetary-Fiscal Phenomenon Eric M. Leeper Campbell Leith
... net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry with them dramatically higher debt service to create fresh fiscal pressures. The Congressio ...
... net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry with them dramatically higher debt service to create fresh fiscal pressures. The Congressio ...
Chapter 9 The IS-LM/AD
... (a) increases output, national saving, and investment, but not the real interest rate. (b) increases output, national saving, and the real interest rate, but not investment. (c) increases the real interest rate, investment, and output, but not national saving. (d) increases output, national saving, ...
... (a) increases output, national saving, and investment, but not the real interest rate. (b) increases output, national saving, and the real interest rate, but not investment. (c) increases the real interest rate, investment, and output, but not national saving. (d) increases output, national saving, ...
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.