14.02 Principles of Macroeconomics Spring 03 Quiz 2 Thursday, April 10, 2003
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
Suriname_en.pdf
... rising deficits will eventually drive it up unless accompanied by revenue-enhancing measures. Suriname’s total debt in 2014 was 31.1% of GDP, slightly up from 27.1% in 2012, while external debt was 20.5% and 16.4% of GDP, respectively. Monetary policy in 2014, as in 2013, was aimed at maintaining pr ...
... rising deficits will eventually drive it up unless accompanied by revenue-enhancing measures. Suriname’s total debt in 2014 was 31.1% of GDP, slightly up from 27.1% in 2012, while external debt was 20.5% and 16.4% of GDP, respectively. Monetary policy in 2014, as in 2013, was aimed at maintaining pr ...
Chapter 32 Inflation and Growth: The Phillips Curve
... available information. If people’s expectations are rational, they will sometimes make mistakes in forecasting inflation, but they will not systematically underpredict inflation. The forecasting errors will be random, centering around the true value. The positively sloped aggregate supply curve and ...
... available information. If people’s expectations are rational, they will sometimes make mistakes in forecasting inflation, but they will not systematically underpredict inflation. The forecasting errors will be random, centering around the true value. The positively sloped aggregate supply curve and ...
Recommending a Strategy
... target for the current account, nor does the MPC view deficits on the current account to be inflationary in themselves. The mandate to the Bank is to maintain inflation within the target range of 3 to 6 per cent. The risk to inflation arises if the market perceives a particular level of the current ...
... target for the current account, nor does the MPC view deficits on the current account to be inflationary in themselves. The mandate to the Bank is to maintain inflation within the target range of 3 to 6 per cent. The risk to inflation arises if the market perceives a particular level of the current ...
Haiti_en.pdf
... onwards, the central bank began lowering its benchmark rate (from 7% to 3.9% overall), which represented a loosening of its monetary policy stance. Bank interest rates also fell, although less sharply. In the last two quarters real deposit rates increased for the first time in three years, by 2% and ...
... onwards, the central bank began lowering its benchmark rate (from 7% to 3.9% overall), which represented a loosening of its monetary policy stance. Bank interest rates also fell, although less sharply. In the last two quarters real deposit rates increased for the first time in three years, by 2% and ...
chapter 29 - exchange rates
... purchasing power parity. Traders would buy Country A’s currency in order to buy its goods for resale in Country B. Country A’s currency will appreciate relative to Country B’s (alternately stated: Country B’s currency will depreciate relative to Country A’s). Since the trade deficit at point B equal ...
... purchasing power parity. Traders would buy Country A’s currency in order to buy its goods for resale in Country B. Country A’s currency will appreciate relative to Country B’s (alternately stated: Country B’s currency will depreciate relative to Country A’s). Since the trade deficit at point B equal ...
Formulas for Macro AP
... Real GDP = nominal GDP/price index Monetary multiplier = 1/RRR Total addition to banking system = 1st loan x money multiplier + initial deposit IF IT’S NEW $ • Amt. of $ a bank can loan = excess reserves = total reserves – (RRR x checkable deposits) • Real interest rate = nominal interest rate – exp ...
... Real GDP = nominal GDP/price index Monetary multiplier = 1/RRR Total addition to banking system = 1st loan x money multiplier + initial deposit IF IT’S NEW $ • Amt. of $ a bank can loan = excess reserves = total reserves – (RRR x checkable deposits) • Real interest rate = nominal interest rate – exp ...
Overview
... commodity prices have backed the downward trend in inflation. However, the high increases in food prices and exchange rate developments in the first quarter of the year have contained the improvement in inflation more than envisaged. In this framework, the CBRT has maintained its cautious monetary p ...
... commodity prices have backed the downward trend in inflation. However, the high increases in food prices and exchange rate developments in the first quarter of the year have contained the improvement in inflation more than envisaged. In this framework, the CBRT has maintained its cautious monetary p ...
Federal Reserve - Plain Local Schools
... $ Providing certain financial services to the US Govt., to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation’s payment system ...
... $ Providing certain financial services to the US Govt., to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation’s payment system ...
PS2 solution
... into a cut in the real rate; the MP curve moves down. The central bank has just unwittingly created a boom. With positive short-run output, inflation rises persistently, year after year, as long as the central bank keeps the nominal interest rate constant. Remember: A constant nominal rate plus a ri ...
... into a cut in the real rate; the MP curve moves down. The central bank has just unwittingly created a boom. With positive short-run output, inflation rises persistently, year after year, as long as the central bank keeps the nominal interest rate constant. Remember: A constant nominal rate plus a ri ...
PDF
... reduce the gro~ of potential GOP, and (ii) very low rates of inflation, in particular deflation, may be an impediment to the smooth operation of markets, both because of a lower bound on the nominal interest rate and because of the stickiness of prices and wages. This second principle already has ha ...
... reduce the gro~ of potential GOP, and (ii) very low rates of inflation, in particular deflation, may be an impediment to the smooth operation of markets, both because of a lower bound on the nominal interest rate and because of the stickiness of prices and wages. This second principle already has ha ...
ECO 2013 Performance Standards
... Model—and the multiplier effect. 11. Identify fiscal policy and its use to stabilize the economy. 12. Define what money is and describe the composition of the supply of money in circulation. 13. Understand how money is created in our banking system. 14. Explain the role of the FED, banks, financial ...
... Model—and the multiplier effect. 11. Identify fiscal policy and its use to stabilize the economy. 12. Define what money is and describe the composition of the supply of money in circulation. 13. Understand how money is created in our banking system. 14. Explain the role of the FED, banks, financial ...
Peru_en.pdf
... and September 2013. Thus, the central bank’s foreign exchange position stood at US$ 43.7 billion in September 2013, while net international reserves totaled US$ 66.4 billion. As a result of the nominal devaluation of the nuevo sol, the effective real exchange rate depreciated by 4.8% between October ...
... and September 2013. Thus, the central bank’s foreign exchange position stood at US$ 43.7 billion in September 2013, while net international reserves totaled US$ 66.4 billion. As a result of the nominal devaluation of the nuevo sol, the effective real exchange rate depreciated by 4.8% between October ...
Is Milton Friedman a Keynesian?
... give rise to multiple rounds of increased spending and increased goods, on real as well as financial assets, on consumption real income. The nearly exclusive focus on this particular goods as well as investment goods. Nominal incomes are channel of effects, together with the belief that investment h ...
... give rise to multiple rounds of increased spending and increased goods, on real as well as financial assets, on consumption real income. The nearly exclusive focus on this particular goods as well as investment goods. Nominal incomes are channel of effects, together with the belief that investment h ...
Monetary and fiscal policy in the resource
... response of the monetary authority to the changing economic conditions, where the objective function is normally some measure of output volatility, or more directly, welfare of the representative household. The optimal policy rule has been studied in very different setting under various assumptions ...
... response of the monetary authority to the changing economic conditions, where the objective function is normally some measure of output volatility, or more directly, welfare of the representative household. The optimal policy rule has been studied in very different setting under various assumptions ...
Document
... Most importantly, the Fed loans money to banks, and therefore sets the national interest rate. ...
... Most importantly, the Fed loans money to banks, and therefore sets the national interest rate. ...
San Diego Community Leaders’ Luncheon
... expected pattern for the national output data. Disruption of production in the Gulf will undoubtedly slow growth somewhat in the second half—a common estimate is that it will depress national real GDP growth by around one-half to three-quarters percent. This is likely to be followed by a surge in gr ...
... expected pattern for the national output data. Disruption of production in the Gulf will undoubtedly slow growth somewhat in the second half—a common estimate is that it will depress national real GDP growth by around one-half to three-quarters percent. This is likely to be followed by a surge in gr ...
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.