Sofia Bauducco Optimal Policy, Heterogeneity and Limited Commitment Prof. Albert Marcet
... Consider a setup in which a small open economy, which we call the home country, can trade assets with the rest of the world. The government of the home country has to collect revenues optimally in order to finance an exogenous stream of public expenditure, while the rest of the world is subject to n ...
... Consider a setup in which a small open economy, which we call the home country, can trade assets with the rest of the world. The government of the home country has to collect revenues optimally in order to finance an exogenous stream of public expenditure, while the rest of the world is subject to n ...
NBER WORKING PAPER SERIES CREDIT SPREADS AND MONETARY POLICY Vasco Cúrdia Michael Woodford
... such circumstances? For example, the Federal Reserve aggressively reduced its operating target for the federal funds rate in late 2007 and January 2008, though official statistics did not yet indicate that real GDP was declining, and according to many indicators inflation was if anything increasing; ...
... such circumstances? For example, the Federal Reserve aggressively reduced its operating target for the federal funds rate in late 2007 and January 2008, though official statistics did not yet indicate that real GDP was declining, and according to many indicators inflation was if anything increasing; ...
An Aggregative Theory for a Closed Economy
... fall in response to open market purchases and tax increases. Open market operations induce larger changes in the price level than tax changes that transfer securities of equal value, but the effects on real balances are identical. Open market purchases raise the equilibrium price level; open market ...
... fall in response to open market purchases and tax increases. Open market operations induce larger changes in the price level than tax changes that transfer securities of equal value, but the effects on real balances are identical. Open market purchases raise the equilibrium price level; open market ...
NBER WORKING PAPER SERIES Junhee Lee Joonhyuk Song
... to stabilize the macroeconomy. For this purpose, we build a DSGE model with a Taylor type monetary policy where monetary policy responds differentially to oil and non-oil prices. This can be interpreted that monetary policy reacts to overall CPI inflation per se. However, the magnitude of interventi ...
... to stabilize the macroeconomy. For this purpose, we build a DSGE model with a Taylor type monetary policy where monetary policy responds differentially to oil and non-oil prices. This can be interpreted that monetary policy reacts to overall CPI inflation per se. However, the magnitude of interventi ...
ExamView - CH 28 sample test questions.tst
... b. occurs only in theory, never in reality. c. has never occurred in the United States. d. happens in all countries at some time during their business cycle. e. is a period of time when inflation exceeds 20 percent per year. ____ 58. In the early 1920s, Germany experienced hyperinflation because Ger ...
... b. occurs only in theory, never in reality. c. has never occurred in the United States. d. happens in all countries at some time during their business cycle. e. is a period of time when inflation exceeds 20 percent per year. ____ 58. In the early 1920s, Germany experienced hyperinflation because Ger ...
Economic Policy in EMU: Community Framework and National Strategies - focus on Greece
... overly obsessed with inflation risks when evidence shows that the policy priority in the euro area is rather the support of deficient internal demand and less the fight against perceived inflation risks. For example, Bofinger (2004) while praising ECB for its established reputation (“…there is no do ...
... overly obsessed with inflation risks when evidence shows that the policy priority in the euro area is rather the support of deficient internal demand and less the fight against perceived inflation risks. For example, Bofinger (2004) while praising ECB for its established reputation (“…there is no do ...
Rezende - The Nature of Government Finance in Brazil
... required or desired. In fact, bond sales simply exchange one asset for another. If the government decides to pay interest on reserves balances instead of selling bonds, nothing is changed because, functionally, bonds are reserves that earn interest; there is no difference between the two. I will dis ...
... required or desired. In fact, bond sales simply exchange one asset for another. If the government decides to pay interest on reserves balances instead of selling bonds, nothing is changed because, functionally, bonds are reserves that earn interest; there is no difference between the two. I will dis ...
Aggregate Supply-Driven Deflation and Its Implications for Macroeconomic Stability David Beckworth
... two reasons: a decrease in aggregate demand or an increase in aggregate supply. The first type of deflation is a consequence of a collapse in nominal spending that may, in the presence of nominal rigidities, drive actual output below its natural rate level. This malign form of deflation is consisten ...
... two reasons: a decrease in aggregate demand or an increase in aggregate supply. The first type of deflation is a consequence of a collapse in nominal spending that may, in the presence of nominal rigidities, drive actual output below its natural rate level. This malign form of deflation is consisten ...
03/RT/2015 The macroeconomic effects of the Euro Area`s fiscal
... agents. If agents believe the measures to be permanent, the consolidation might even have been expansionary due to strong riccardian effects. However, it is plausible to assume that households and firms did not expect the measures to permanent, and have a finite horizon due to some degree of myopia. ...
... agents. If agents believe the measures to be permanent, the consolidation might even have been expansionary due to strong riccardian effects. However, it is plausible to assume that households and firms did not expect the measures to permanent, and have a finite horizon due to some degree of myopia. ...
Unemployment and Inflation
... remained virtually constant at 60 percent. Women still provide more household services than men, and this takes time away from participating in the labor force. While technology has made it possible for women to expand their participation in the workforce, devoting time to household activities means ...
... remained virtually constant at 60 percent. Women still provide more household services than men, and this takes time away from participating in the labor force. While technology has made it possible for women to expand their participation in the workforce, devoting time to household activities means ...
Monthly Bulletin articles, April 2004
... taxes or default on its obligations. A stable macroeconomic environment provides a proper framework to enhance confidence and facilitate long-term decision-making among economic agents in the private sector. This applies in particular to private investment decisions. Concerns about the sustainabilit ...
... taxes or default on its obligations. A stable macroeconomic environment provides a proper framework to enhance confidence and facilitate long-term decision-making among economic agents in the private sector. This applies in particular to private investment decisions. Concerns about the sustainabilit ...
Staff Report
... Portfolio inflows, in particular, rose markedly in September and have continued to increase in recent months. Key sources of such inflows include the United States, United Kingdom, Hong Kong SAR, and Singapore. International ...
... Portfolio inflows, in particular, rose markedly in September and have continued to increase in recent months. Key sources of such inflows include the United States, United Kingdom, Hong Kong SAR, and Singapore. International ...
what caused the great depression?
... are not necessary; all that is required is that the creation of money through bank lending drive the market rate of interest below that rate consistent with consumer preferences. In addition, Austrians also admit that the secondary depression, as Hayek termed it, was much more severe and responsible ...
... are not necessary; all that is required is that the creation of money through bank lending drive the market rate of interest below that rate consistent with consumer preferences. In addition, Austrians also admit that the secondary depression, as Hayek termed it, was much more severe and responsible ...
Imperfect Competition and Macroeconomics: A Survey
... lower levels of output and employment than Walrasian economies, a Pareto-inefficient allocation of resources, and the possibility of involuntary unemployment. Few would disagree that deviations from perfect competition will probably have undesirable consequences. Second, to what extent can macroecon ...
... lower levels of output and employment than Walrasian economies, a Pareto-inefficient allocation of resources, and the possibility of involuntary unemployment. Few would disagree that deviations from perfect competition will probably have undesirable consequences. Second, to what extent can macroecon ...
Aff Inflation DA 7WK - Open Evidence Archive
... approach of many policies, all of which have byproducts and side effects in interacting with one another. I think if we come to thinking about it like that here in Washington and elsewhere, that will be very new in macroeconomic policy thinking. The ...
... approach of many policies, all of which have byproducts and side effects in interacting with one another. I think if we come to thinking about it like that here in Washington and elsewhere, that will be very new in macroeconomic policy thinking. The ...
Interest Rates and Their Role in the Economy during Transition. The
... the problem of budget constraint. Newly organized private firms cannot rely on budget financing and bank loans are the only source of external financing for them. Therefore, bank loans and the price of loans play very significant role for the businesses and their willing to produce goods or services ...
... the problem of budget constraint. Newly organized private firms cannot rely on budget financing and bank loans are the only source of external financing for them. Therefore, bank loans and the price of loans play very significant role for the businesses and their willing to produce goods or services ...
Tax-Driven Money: Additional Evidence from the History of Thought
... piece of paper an actual power of doing the work that gold to its face value could do, in the way of effecting exchanges; and therefore the Government will find that the persons of whom it has made purchases, or whom it has to pay for their services, will not only be obliged to accept the paper in l ...
... piece of paper an actual power of doing the work that gold to its face value could do, in the way of effecting exchanges; and therefore the Government will find that the persons of whom it has made purchases, or whom it has to pay for their services, will not only be obliged to accept the paper in l ...
MONETARY POLICY UNDER A NEW KEYNESIAN PERSPECTIVE
... that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the risk that oil price volatility generates on their marginal costs. Chapter 3 uses the model laid out chapter 2 to investigate how monetary policy should rea ...
... that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the risk that oil price volatility generates on their marginal costs. Chapter 3 uses the model laid out chapter 2 to investigate how monetary policy should rea ...
Is demand for money the same as demand for liquidity?
... For Keynes, assets can be ranked according to their degree of liquidity. The set of the most liquid assets is defined as ‘money’. Thus, the demand for money amounts to the demand for liquidity. Keynes’s definition of money can be misleading. The assets within the set ‘money’ do not have the same att ...
... For Keynes, assets can be ranked according to their degree of liquidity. The set of the most liquid assets is defined as ‘money’. Thus, the demand for money amounts to the demand for liquidity. Keynes’s definition of money can be misleading. The assets within the set ‘money’ do not have the same att ...
Governors Monetary Policy Statement
... Bank to tighten monetary policy. The monetary policy stance has however been cautious. The discount rate has been kept lower than that of South Africa due to mainly weak growth and benign inflation expectations. It is important to note that the overriding monetary policy stance of the Bank is to tra ...
... Bank to tighten monetary policy. The monetary policy stance has however been cautious. The discount rate has been kept lower than that of South Africa due to mainly weak growth and benign inflation expectations. It is important to note that the overriding monetary policy stance of the Bank is to tra ...
Stagnation Traps Gianluca Benigno and Luca Fornaro January 2015 Preliminary, comments welcome
... to gain a monopoly position, and so their investment in innovation is positively related to profits. Through this channel, a slowdown in aggregate demand that leads to a fall in profits, also reduces investment in innovation and the growth rate of the economy. Households supply labor and consume, an ...
... to gain a monopoly position, and so their investment in innovation is positively related to profits. Through this channel, a slowdown in aggregate demand that leads to a fall in profits, also reduces investment in innovation and the growth rate of the economy. Households supply labor and consume, an ...
CDs Bought at a Bank verses CD`s Bought from a Brokerage Floyd
... particular CD the Value at Maturity is the same as the price, but for CDs bought on the secondary market, this may not be true. The dividends of a brokered CD are typically paid into a “sweep” money market fund in the name of the CD owner. Of course, dividends might be reinvested at a “good” rate. ( ...
... particular CD the Value at Maturity is the same as the price, but for CDs bought on the secondary market, this may not be true. The dividends of a brokered CD are typically paid into a “sweep” money market fund in the name of the CD owner. Of course, dividends might be reinvested at a “good” rate. ( ...
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.