Banks, Market Organization, and Macroeconomic Performance: An Agent-Based Computational Analysis ∗ Quamrul Ashraf
... fully realized. Here, we extend the model to allow for durable goods, fiat money, and government bonds, to include monetary and fiscal authorities, and to incorporate banks that lend to the trade specialists.2 We additionally introduce various random shocks that prevent the system from ever settling ...
... fully realized. Here, we extend the model to allow for durable goods, fiat money, and government bonds, to include monetary and fiscal authorities, and to incorporate banks that lend to the trade specialists.2 We additionally introduce various random shocks that prevent the system from ever settling ...
(classical) theory of the demand for money
... • The speculative component of money demand would be related to income but more to interest rates as the factor that influence the holding of money as a store of wealth. – Keynes divided the assets that can be used to store wealth into two categories: money and bonds. He then asked the following que ...
... • The speculative component of money demand would be related to income but more to interest rates as the factor that influence the holding of money as a store of wealth. – Keynes divided the assets that can be used to store wealth into two categories: money and bonds. He then asked the following que ...
Aggregate Demand and Aggregate Supply
... In the short run, shifts in aggregate demand cause fluctuations in the economy’s output of goods and services. In the long run, shifts in aggregate demand affect the overall price level but do not affect output. An Adverse Shift in Aggregate Supply A decrease in one of the determinants of aggr ...
... In the short run, shifts in aggregate demand cause fluctuations in the economy’s output of goods and services. In the long run, shifts in aggregate demand affect the overall price level but do not affect output. An Adverse Shift in Aggregate Supply A decrease in one of the determinants of aggr ...
Aggregate Demand and Aggregate Supply
... In the short run, shifts in aggregate demand cause fluctuations in the economy’s output of goods and services. In the long run, shifts in aggregate demand affect the overall price level but do not affect output. An Adverse Shift in Aggregate Supply A decrease in one of the determinants of aggr ...
... In the short run, shifts in aggregate demand cause fluctuations in the economy’s output of goods and services. In the long run, shifts in aggregate demand affect the overall price level but do not affect output. An Adverse Shift in Aggregate Supply A decrease in one of the determinants of aggr ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... This section outlines the doctrine underlying policymaking in the United Kingdom during the 1970s. The documentation of UK Treasury views provided here shows that there were several aspects of UK official doctrine on inflation held consistently over 1970 to 1979 (not all completely independent proposi ...
... This section outlines the doctrine underlying policymaking in the United Kingdom during the 1970s. The documentation of UK Treasury views provided here shows that there were several aspects of UK official doctrine on inflation held consistently over 1970 to 1979 (not all completely independent proposi ...
NBER WORKINO PAPER SERIES TESTING DEVIATTONS FROM Joshua Aizenman Working Paper No 1475
... transaction costs of goods arbitrage or high volatility). This is because transaction costs of goods arbitrage will introduce a band within which there is a unitary correlation between the exchange rate and relative prices, whereas outside this band the correlation is smaller (zero in the case of on ...
... transaction costs of goods arbitrage or high volatility). This is because transaction costs of goods arbitrage will introduce a band within which there is a unitary correlation between the exchange rate and relative prices, whereas outside this band the correlation is smaller (zero in the case of on ...
On Measuring the Effects of Fiscal Policy in Recessions*
... When the Obama Administration came into office in January 2009, the US economy had been in a recession for more than a year and real GDP was falling at a 6 percent annual rate. The Federal Reserve’s target for the interest rate on Federal funds was at the zero lower bound, so that conventional moneta ...
... When the Obama Administration came into office in January 2009, the US economy had been in a recession for more than a year and real GDP was falling at a 6 percent annual rate. The Federal Reserve’s target for the interest rate on Federal funds was at the zero lower bound, so that conventional moneta ...
Unemployment
... preferred method of unemployment rate calculation since they give the most comprehensive results and enables calculation of unemployment by different group categories such as race and gender. This method is the most internationally comparable. Centre of Labour reports the unemployment rate, based on ...
... preferred method of unemployment rate calculation since they give the most comprehensive results and enables calculation of unemployment by different group categories such as race and gender. This method is the most internationally comparable. Centre of Labour reports the unemployment rate, based on ...
Chapter 1: Introduction
... Draw another diagram with the nominal interest rate i=r+π on the vertical axis and the level of total income Y on the horizontal axis. For each possible value of Y on the x-axis, plot the point whose y-axis value is equilibrium nominal interest rate. You have just plotted the LM curve. The LM curve ...
... Draw another diagram with the nominal interest rate i=r+π on the vertical axis and the level of total income Y on the horizontal axis. For each possible value of Y on the x-axis, plot the point whose y-axis value is equilibrium nominal interest rate. You have just plotted the LM curve. The LM curve ...
NBER WORKING PAPER SERIES TOWARDS A THEORY OF FIRM ENTRY
... good prices p are constant, but the welfare-based CPI ‡uctuates with entry. For exactly this ...
... good prices p are constant, but the welfare-based CPI ‡uctuates with entry. For exactly this ...
Giancarlo Bertocco Money as an institution of capitalism. On the
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
Unemployment
... New Goods Bias New goods that were not available in the base year appear and, if they are more expensive than the goods they replace, they put an upward bias into the CPI. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is ...
... New Goods Bias New goods that were not available in the base year appear and, if they are more expensive than the goods they replace, they put an upward bias into the CPI. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is ...
Dynamics of Budget Deficit and Macroeconomic Fundamentals
... equivalence or the Barro ̶ Ricardo Equivalence proposition, is an economic theory which suggests that government budget deficits do not affect the total level of demand in an economy. It was initially proposed by the 19th century economist David Ricardo. In simple terms, the theory can be described ...
... equivalence or the Barro ̶ Ricardo Equivalence proposition, is an economic theory which suggests that government budget deficits do not affect the total level of demand in an economy. It was initially proposed by the 19th century economist David Ricardo. In simple terms, the theory can be described ...
NBER WOR}(ING PAPERS SERIES MONEY, INTEREST AND PRICES Stanley Fischer
... the last chapter of Part I, Chapter Vifi, "A Critique of Neoclassical Monetary Theory." Much of this chapter will strike today's reader as dealing with outmoded questions. But that is in large part because the critique of the previous literature is definitive: for instance, it was not possible later ...
... the last chapter of Part I, Chapter Vifi, "A Critique of Neoclassical Monetary Theory." Much of this chapter will strike today's reader as dealing with outmoded questions. But that is in large part because the critique of the previous literature is definitive: for instance, it was not possible later ...
The Misperceptions Theory and the Nonneutrality of Money
... more money for transactions to pay for materials and workers – The Fed would respond to the higher demand for money by increasing money supply; otherwise, the price level would decline ...
... more money for transactions to pay for materials and workers – The Fed would respond to the higher demand for money by increasing money supply; otherwise, the price level would decline ...
THE CLASSICAL MODEL OF THE MACROECONOMY
... An economic theory, embodied in an economic model, becomes a device for predicting the consequences of alternative economic paths without having to actually journey along them. Such models are simplified representations of the much more complicated "real" world. As you will see throughout the book, ...
... An economic theory, embodied in an economic model, becomes a device for predicting the consequences of alternative economic paths without having to actually journey along them. Such models are simplified representations of the much more complicated "real" world. As you will see throughout the book, ...
Chapter 24 Aggregate Demand and Aggregate Supply
... They also believe that while the aggregate demand curve will eventually return to the natural rate level, the length of time required to do so will result in unnecessary economic hardship. They believe that consumer spending and business investment spending is not as strongly determined by interest ...
... They also believe that while the aggregate demand curve will eventually return to the natural rate level, the length of time required to do so will result in unnecessary economic hardship. They believe that consumer spending and business investment spending is not as strongly determined by interest ...
AP 宏觀經濟學講義
... equilibrium national output and the general price level, as well as to analyze and evaluate the effects of public policy. It is important to discuss the aggregate demand and aggregate supply concepts individually to provide students with a firm understanding of the mechanics of the aggregate demand ...
... equilibrium national output and the general price level, as well as to analyze and evaluate the effects of public policy. It is important to discuss the aggregate demand and aggregate supply concepts individually to provide students with a firm understanding of the mechanics of the aggregate demand ...
Answers to Questions: Chapter 8
... AD curve, and the LAS curve all intersect at the original level of real output, YN. So at the new long-run equilibrium, the effect of the depreciation of the dollar is a higher price level, a higher nominal wage, and a higher interest rate, but no change in the equilibrium real wage rate or real GDP ...
... AD curve, and the LAS curve all intersect at the original level of real output, YN. So at the new long-run equilibrium, the effect of the depreciation of the dollar is a higher price level, a higher nominal wage, and a higher interest rate, but no change in the equilibrium real wage rate or real GDP ...
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.