TRANSACTION COSTS, MULTIPLE EQUILIBRIA, AND THE
... (1982) assumed that the wage is determined by the rule of indexation and that employment is unilaterally determined by the firm. Lai (1993) used the efficiency wage hypothesis to describe the labor market. Chang et al. (1999) assumed that the union and the firm engage in an efficient bargaining proc ...
... (1982) assumed that the wage is determined by the rule of indexation and that employment is unilaterally determined by the firm. Lai (1993) used the efficiency wage hypothesis to describe the labor market. Chang et al. (1999) assumed that the union and the firm engage in an efficient bargaining proc ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Shih (1990), Chiu and Hou (1993), and Wu and Shea (1993), emphasize that prosperous stock and real estate transactions in this period created a great deal of transactional demand for money.3Although there are no official data on the value of real estate transactions, table 8.2 shows that the total t ...
... Shih (1990), Chiu and Hou (1993), and Wu and Shea (1993), emphasize that prosperous stock and real estate transactions in this period created a great deal of transactional demand for money.3Although there are no official data on the value of real estate transactions, table 8.2 shows that the total t ...
Policy Trade-o¤s and International Spillover E¤ects at the Zero Bound Alex Haberis
... How does the zero lower bound on nominal interest rates (ZLB) a¤ect optimal monetary policy in a small open economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. ...
... How does the zero lower bound on nominal interest rates (ZLB) a¤ect optimal monetary policy in a small open economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. ...
ECONOMIC OUTLOOK MONETARY POLICY and January 3, 2012
... The improvement in the current account balance is expected to be more evident and pronounced in the following months. Inflation has shown a temporary rise in recent months due to exchange rate movements, hikes in administered prices, and base effects of unprocessed food prices. Inflation will hover ...
... The improvement in the current account balance is expected to be more evident and pronounced in the following months. Inflation has shown a temporary rise in recent months due to exchange rate movements, hikes in administered prices, and base effects of unprocessed food prices. Inflation will hover ...
Does Immigration Affect the Phillips Curve? Some Evidence for Spain
... which has shifted inwards and become much flatter. These trends have been shared by many other countries over that period. For instance, the fall in the inflation rate and its volatility in Spain is very similar to those in the euro area.1 Spain is however atypical in that the favorable inflation de ...
... which has shifted inwards and become much flatter. These trends have been shared by many other countries over that period. For instance, the fall in the inflation rate and its volatility in Spain is very similar to those in the euro area.1 Spain is however atypical in that the favorable inflation de ...
Chapter: Practice Exam for Macro Indicators Instruction:
... 13. The price index for the current year is 180. This means that, on average, prices in the current year are A) $0.80 higher than prices in the base year. B) $1.80 higher than prices in the base year. C) 80 percent of prices in the base year. D) 180 percent higher than prices in the base year. E) 80 ...
... 13. The price index for the current year is 180. This means that, on average, prices in the current year are A) $0.80 higher than prices in the base year. B) $1.80 higher than prices in the base year. C) 80 percent of prices in the base year. D) 180 percent higher than prices in the base year. E) 80 ...
Inflation As Restructuring. Chapter 2: Macroeconomic Perspectives
... Yet, can we really expect this model to tell us why the Phillips Curve changes? Consider, for instance, Lipsey's discussion of the impact that unions may have on the Phillips Curve (p. 17). In his opinion, unions may change the adjustment mechanism specified in Equation (1); for example, by making w ...
... Yet, can we really expect this model to tell us why the Phillips Curve changes? Consider, for instance, Lipsey's discussion of the impact that unions may have on the Phillips Curve (p. 17). In his opinion, unions may change the adjustment mechanism specified in Equation (1); for example, by making w ...
Inflation is
... the money supply in the long-run (because of monetary neutrality). Since output remains at the natural rate of output, unemployment remains at the natural rate of unemployment. ...
... the money supply in the long-run (because of monetary neutrality). Since output remains at the natural rate of output, unemployment remains at the natural rate of unemployment. ...
When Contractionary Fiscal Policy Is Expansionary - ANU Press
... duction arc always equal in value. But international macroeconomic accounting dictates that trade and current account deficits can in principle arise only when ag gregate output and aggregate expenditure are unequal, or (what amounts to the same tiling) when domestic saving and investment differ. I ...
... duction arc always equal in value. But international macroeconomic accounting dictates that trade and current account deficits can in principle arise only when ag gregate output and aggregate expenditure are unequal, or (what amounts to the same tiling) when domestic saving and investment differ. I ...
Is There a Role for Discretionary Fiscal Policy?
... somewhat surprising, given the general perception that the United States no longer practices Keynesian stabilization fiscal policy. For example, Romer and Romer (1994) conclude that the response of discretionary fiscal policy is small, if any. Alan’s finding is largely consistent with this perceptio ...
... somewhat surprising, given the general perception that the United States no longer practices Keynesian stabilization fiscal policy. For example, Romer and Romer (1994) conclude that the response of discretionary fiscal policy is small, if any. Alan’s finding is largely consistent with this perceptio ...
The Great Escape? A Quantitative Evaluation of the Fed’s Liquidity Facilities
... the economy. We use the more than $1 trillion intervention by the Fed to calibrate the non-standard policy reaction function of the government. Our main result is that both the financial shock and the liquidity policy can have a quantitatively large effect. A calibrated shock to the resaleability c ...
... the economy. We use the more than $1 trillion intervention by the Fed to calibrate the non-standard policy reaction function of the government. Our main result is that both the financial shock and the liquidity policy can have a quantitatively large effect. A calibrated shock to the resaleability c ...
Is there a monetary growth imperative?
... out one theory as most convincing. Yet despite this diversity of plausible views, the analysis provides a strong “meta-result”: the simplest propositions on the link between monetary variables and growth are, at the same time, the least compelling. Against this background, we discuss the consequenc ...
... out one theory as most convincing. Yet despite this diversity of plausible views, the analysis provides a strong “meta-result”: the simplest propositions on the link between monetary variables and growth are, at the same time, the least compelling. Against this background, we discuss the consequenc ...
Chapter 28 Government and Stabilization
... variable on the past performance of the variable, with the most recent past having the greatest weight Rational expectations--people should be smarter than this, should use all information available to them in forming expectations ...
... variable on the past performance of the variable, with the most recent past having the greatest weight Rational expectations--people should be smarter than this, should use all information available to them in forming expectations ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... clear, there are situations in which interest rates react very sensitively to fiscal policy changes. The purpose of this paper is to study the recent empirical evidence. The main theme that emerges is that there are times and circumstances in which the effects of fiscal policy on interest rates can ...
... clear, there are situations in which interest rates react very sensitively to fiscal policy changes. The purpose of this paper is to study the recent empirical evidence. The main theme that emerges is that there are times and circumstances in which the effects of fiscal policy on interest rates can ...
The IS*LM/AD*AS Model: A General Framework for Macroeconomic
... Changes in the Real Money Supply • Changes in the real money supply, through the term (1/lr)(M/P), will shift the curve. • An increase in the real money supply (M/P) will reduce r and shift the LM curve down and to the right. • Initially there is an excess supply of money which causes holders of we ...
... Changes in the Real Money Supply • Changes in the real money supply, through the term (1/lr)(M/P), will shift the curve. • An increase in the real money supply (M/P) will reduce r and shift the LM curve down and to the right. • Initially there is an excess supply of money which causes holders of we ...
Macroprudential Policies as Buffer Against Volatile Cross-border Capital Flows Ahmet Faruk AYSAN
... yield coupled with the resulting exchange rate uncertainty might then discourage short-term portfolio investment (e.g. carry trade flows). In sum, reducing the lower limit during surges in capital flows and increasing the upper limit during capital outflow periods would counteract against the volati ...
... yield coupled with the resulting exchange rate uncertainty might then discourage short-term portfolio investment (e.g. carry trade flows). In sum, reducing the lower limit during surges in capital flows and increasing the upper limit during capital outflow periods would counteract against the volati ...
Shifts from Deposits into Currency
... If a financial market were set up so that people who had built on saving could lend them the funds to buy the house, they would be more than happy to pay the lenders some interest so that they could own a home while they are still young enough to enjoy it. Then over time, they would pay back their l ...
... If a financial market were set up so that people who had built on saving could lend them the funds to buy the house, they would be more than happy to pay the lenders some interest so that they could own a home while they are still young enough to enjoy it. Then over time, they would pay back their l ...
Nominal GDP Targeting and the Taylor Rule on
... follows. If the central bank adjusts the nominal interest rate in response to its own imperfect estimate of the output gap, there will be two types of monetary policy shocks. The first type is the traditional shock that represents a deviation of monetary policy from its rule. The second type is the ...
... follows. If the central bank adjusts the nominal interest rate in response to its own imperfect estimate of the output gap, there will be two types of monetary policy shocks. The first type is the traditional shock that represents a deviation of monetary policy from its rule. The second type is the ...
Bulletin Contents Volume 76 No. 4, December 2013
... also central to the accountability of the Reserve Bank to its ...
... also central to the accountability of the Reserve Bank to its ...
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.