Inflation and deflation
... Inflationary noise: economic agents are unsure if a price rise is due to inflation or an rise in the relative price of a product eg a car ...
... Inflationary noise: economic agents are unsure if a price rise is due to inflation or an rise in the relative price of a product eg a car ...
IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925.
... the wholesale price index (WPI). In Nigeria the most widely used measure of inflation is the consumer price index because it is readily available on monthly, quarterly and annual basis. In the classicalist theory of monetary transmission mechanism, increased money stock only leads to an inflationary ...
... the wholesale price index (WPI). In Nigeria the most widely used measure of inflation is the consumer price index because it is readily available on monthly, quarterly and annual basis. In the classicalist theory of monetary transmission mechanism, increased money stock only leads to an inflationary ...
Chapter 20 – Practice Questions 1. Which of the following is correct
... a. Economic fluctuations are easily predicted by competent economists. b. Recessions have never occurred very close together. c. Other measures of spending, income, and production do not fluctuate closely with real GDP. d. None of the above is correct. ...
... a. Economic fluctuations are easily predicted by competent economists. b. Recessions have never occurred very close together. c. Other measures of spending, income, and production do not fluctuate closely with real GDP. d. None of the above is correct. ...
PDF
... Retail prices also paint a broadly disinflationary picture. Producer prices have even registered outright deflation for more than two years (Figure 1). The pronounced disinflationary pressure emerged well before the collapse of international oil prices starting from the third quarter of 2014. In my ...
... Retail prices also paint a broadly disinflationary picture. Producer prices have even registered outright deflation for more than two years (Figure 1). The pronounced disinflationary pressure emerged well before the collapse of international oil prices starting from the third quarter of 2014. In my ...
Notesheet
... 30. What are some things that started happening in the early 1900s that caused people to question whether Adam Smith was always right? ...
... 30. What are some things that started happening in the early 1900s that caused people to question whether Adam Smith was always right? ...
Economic Growth, Business Cycles, Unemployment, and Inflation
... Expectations of inflation play an important role in the inflation process. ...
... Expectations of inflation play an important role in the inflation process. ...
Sections 3 & 4
... 1. Sticky wages; 2. discretionary fiscal policy; 3. long-run aggregate supply curve; 4. automatic stabilizers; _____a graphical representation of the relationship between the aggregate price level and the quantity of aggregate output supplied if all prices, including nominal wages, were fully flexib ...
... 1. Sticky wages; 2. discretionary fiscal policy; 3. long-run aggregate supply curve; 4. automatic stabilizers; _____a graphical representation of the relationship between the aggregate price level and the quantity of aggregate output supplied if all prices, including nominal wages, were fully flexib ...
From unconventional monetary to unconventional fiscal policies
... At the same time, the stance of monetary policy became exceptionally expansionary by historical accounts: the policy rate was lowered toward its effective zero lower bound and central banks began large scale purchases of private and public assets, with longer maturities than in normal times. Consequ ...
... At the same time, the stance of monetary policy became exceptionally expansionary by historical accounts: the policy rate was lowered toward its effective zero lower bound and central banks began large scale purchases of private and public assets, with longer maturities than in normal times. Consequ ...
The Phillips Curve and the Short-Run Aggregate Supply Curve This
... and inflation and shows how that relationship can be used to derive the short-run aggregate supply curve. The Phillips Curve A. A.W. Phillips found that unemployment was negatively related to wage growth in the United Kingdom. 1. Other economists have found this same negative relationship in many ot ...
... and inflation and shows how that relationship can be used to derive the short-run aggregate supply curve. The Phillips Curve A. A.W. Phillips found that unemployment was negatively related to wage growth in the United Kingdom. 1. Other economists have found this same negative relationship in many ot ...
CHAPTER 12 - Economics
... In the context of the Mundell-Fleming model, the central bank shifts the LM* curve as required to keep e at its preannounced rate. This system fixes the nominal exchange rate. In the long run, when prices are flexible, the real exchange rate can move even if the nominal rate is fixed. CHAPTER 12 ...
... In the context of the Mundell-Fleming model, the central bank shifts the LM* curve as required to keep e at its preannounced rate. This system fixes the nominal exchange rate. In the long run, when prices are flexible, the real exchange rate can move even if the nominal rate is fixed. CHAPTER 12 ...
EC108 Macroeconomics 1 Review Class
... in reality because u is the natural rate of unemployment it is constant. Therefore setting the model in per-worker (dividing by L as we did) or in per-effective-worker terms (dividing by (1 − u)L) is irrelevant. In other words, unlike the model with labor-augmenting technological progress in which Yt ...
... in reality because u is the natural rate of unemployment it is constant. Therefore setting the model in per-worker (dividing by L as we did) or in per-effective-worker terms (dividing by (1 − u)L) is irrelevant. In other words, unlike the model with labor-augmenting technological progress in which Yt ...
The Crowding
... • Monetary policy can be described either in terms of the money supply or in terms of the interest rate. • Changes in monetary policy can be viewed either in terms of a changing target for the interest rate or in terms of a change in the money supply. • A target for the federal funds rate affects th ...
... • Monetary policy can be described either in terms of the money supply or in terms of the interest rate. • Changes in monetary policy can be viewed either in terms of a changing target for the interest rate or in terms of a change in the money supply. • A target for the federal funds rate affects th ...
final review macro - Open Computing Facility
... money multiplier: 1/ (required reserve ratio) 35. The Federal Reserve (the Fed) can engage in expansionary monetary policy by: a. Lowering the required reserve ratio b. Lowering the discount rate c. Buying government bonds (open market operations) 36. The Fed can engage in contractionary monetary po ...
... money multiplier: 1/ (required reserve ratio) 35. The Federal Reserve (the Fed) can engage in expansionary monetary policy by: a. Lowering the required reserve ratio b. Lowering the discount rate c. Buying government bonds (open market operations) 36. The Fed can engage in contractionary monetary po ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2006, Volume 21
... representative-household model, and the extent to which these movements can be explained by the evolution of aggregate time series. Their theoretical model predicts the evolution of the prices of bonds of all maturities, given stochastic processes for inflation and for aggregate consumption expendit ...
... representative-household model, and the extent to which these movements can be explained by the evolution of aggregate time series. Their theoretical model predicts the evolution of the prices of bonds of all maturities, given stochastic processes for inflation and for aggregate consumption expendit ...
Economics Syllabus 2014-2015 as of
... rates) on consumers, producers, workers, savers, and investors. 1.4.2 Government and Consumers – Analyze the role of government in protecting consumers and enforcing contracts, (including property rights), and explain how this role influences the incentives (or disincentives) for people to produce a ...
... rates) on consumers, producers, workers, savers, and investors. 1.4.2 Government and Consumers – Analyze the role of government in protecting consumers and enforcing contracts, (including property rights), and explain how this role influences the incentives (or disincentives) for people to produce a ...
Inflation Targeting and the Global Financial Crisis: Successes and Challenges
... inflation-targeting practice is across a diverse set of countries with distinct economic and institutional landscapes. Although the central banks of the three largest advanced economies— the Bank of Japan, the European Central Bank, and the Federal Reserve—don’t explicitly identify themselves as pra ...
... inflation-targeting practice is across a diverse set of countries with distinct economic and institutional landscapes. Although the central banks of the three largest advanced economies— the Bank of Japan, the European Central Bank, and the Federal Reserve—don’t explicitly identify themselves as pra ...
Political ups and downs
... Fed not too concerned about soft start to the year The Fed left rates unchanged in May and maintained a balanced tone despite a few recent data hiccups. The statement explicitly indicated that slower growth early this year is “likely to be transitory”—in fact, their take on Q1 growth was similar to ...
... Fed not too concerned about soft start to the year The Fed left rates unchanged in May and maintained a balanced tone despite a few recent data hiccups. The statement explicitly indicated that slower growth early this year is “likely to be transitory”—in fact, their take on Q1 growth was similar to ...
Bank of England Inflation Report August 2009
... (a) Chart 5.7 represents a cross-section of the CPI inflation fan chart in 2011 Q3 for the market interest rate projection. It has been conditioned on the assumption that the stock of purchased assets financed by the issuance of central bank reserves reaches £175 billion and remains there throughout ...
... (a) Chart 5.7 represents a cross-section of the CPI inflation fan chart in 2011 Q3 for the market interest rate projection. It has been conditioned on the assumption that the stock of purchased assets financed by the issuance of central bank reserves reaches £175 billion and remains there throughout ...
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.