Forward Guidance and Macroeconomic Outcomes Since the Financial Crisis ∗ Jeffrey R. Campbell
... the expectations theory of the term structure holds good and real rates should not be affected much beyond the duration of price stickiness. These findings raise questions about the use of standard NK models for identifying the effects of Odyssean forward guidance. Therefore we reconsider the Hanson ...
... the expectations theory of the term structure holds good and real rates should not be affected much beyond the duration of price stickiness. These findings raise questions about the use of standard NK models for identifying the effects of Odyssean forward guidance. Therefore we reconsider the Hanson ...
Munir
... applied cointegration and error correction modeling techniques to data from 6 Asian countries and concluded that devaluations were contractionary for Pakistan and Thailand but neutral for India, Sri Lanka, Malaysia and Philippines in the long-run. Bahmani-Oskooee and Miteza (2006) applied panel unit ...
... applied cointegration and error correction modeling techniques to data from 6 Asian countries and concluded that devaluations were contractionary for Pakistan and Thailand but neutral for India, Sri Lanka, Malaysia and Philippines in the long-run. Bahmani-Oskooee and Miteza (2006) applied panel unit ...
Inflation Report 4/2000
... inflation in Norway is gradually reduced to the level aimed at by the European Central Bank (ECB). At the same time, monetary policy must not in itself contribute to deflationary recessions as this could undermine confidence in the krone. The labour market is tight. The rate of increase in labour co ...
... inflation in Norway is gradually reduced to the level aimed at by the European Central Bank (ECB). At the same time, monetary policy must not in itself contribute to deflationary recessions as this could undermine confidence in the krone. The labour market is tight. The rate of increase in labour co ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... Feldstein (1980e; chap. 14 below), I presented econometric evidence that the interaction of tax rules and inflation reduced the incentive to invest in plant and equipment and that this can explain most of the variation in the share of GNP devoted to such investment during the past three decades. The ...
... Feldstein (1980e; chap. 14 below), I presented econometric evidence that the interaction of tax rules and inflation reduced the incentive to invest in plant and equipment and that this can explain most of the variation in the share of GNP devoted to such investment during the past three decades. The ...
4. The Goods Market
... a general specification (up to four lags) by omitting insignificant variables. Unconstrained estimation produced plausible long run responses in four of the five equations. A one per cent increase in import prices increased the relative price of business investment (PIB) the most but only slightly m ...
... a general specification (up to four lags) by omitting insignificant variables. Unconstrained estimation produced plausible long run responses in four of the five equations. A one per cent increase in import prices increased the relative price of business investment (PIB) the most but only slightly m ...
Chapter 8 Money, Inflation, Growth, and Cycles
... depends on the behavior of the households and firms that hold monetary assets. Macroeconomists agree on simple models of the money-supply process. The central bank conducts monetary policy by controlling the creation of “high-powered money” (or the monetary base), which can be used in transactions o ...
... depends on the behavior of the households and firms that hold monetary assets. Macroeconomists agree on simple models of the money-supply process. The central bank conducts monetary policy by controlling the creation of “high-powered money” (or the monetary base), which can be used in transactions o ...
FREE Sample Here
... C) a society in which the fluctuations of GDP around the natural level of output sum to zero. D) a society with no productivity growth in which any additional good enjoyed by one person requires that something be taken away from someone else. Answer: D Question Status: Previous Edition 7) Business c ...
... C) a society in which the fluctuations of GDP around the natural level of output sum to zero. D) a society with no productivity growth in which any additional good enjoyed by one person requires that something be taken away from someone else. Answer: D Question Status: Previous Edition 7) Business c ...
THE THEORY OF THE GLOBAL “SAVINGS GLUT”
... An increase in ex ante savings in the EMEs at base values of income, interest rate and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of th ...
... An increase in ex ante savings in the EMEs at base values of income, interest rate and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of th ...
Answers to Text Questions and Problems in
... Stagflation is the combination of a recessionary gap and a rising price level. This situation is hard to depict on a Keynesian cross diagram, because the basic Keynesian model assumes that prices are constant. 2. This is the fallacy of composition. If the long-run aggregate supply curve is vertical, ...
... Stagflation is the combination of a recessionary gap and a rising price level. This situation is hard to depict on a Keynesian cross diagram, because the basic Keynesian model assumes that prices are constant. 2. This is the fallacy of composition. If the long-run aggregate supply curve is vertical, ...
The credit risk premia - Swiss Finance Institute
... In a world with no inflation and no risk, investors would still require a return from their investments, but how much ? ...
... In a world with no inflation and no risk, investors would still require a return from their investments, but how much ? ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... economic growth or not. Some economists opine that inflation is necessary in the economy to attain high economic growth. For example, the Keynesian model advocates that there exists a positive relationship between inflation and output. However, Keynesian model concludes that inflation itself is not ...
... economic growth or not. Some economists opine that inflation is necessary in the economy to attain high economic growth. For example, the Keynesian model advocates that there exists a positive relationship between inflation and output. However, Keynesian model concludes that inflation itself is not ...
Fiscal Policy in an Unemployment Crisis
... two widely accepted premises. First, at a zero rate of nominal interest, output is largely determined by demand.1 If households wish to consume more, firms will also produce more. Second, the labor market is frictional. Any change in current unemployment – and thus any change in current output – wil ...
... two widely accepted premises. First, at a zero rate of nominal interest, output is largely determined by demand.1 If households wish to consume more, firms will also produce more. Second, the labor market is frictional. Any change in current unemployment – and thus any change in current output – wil ...
The IS-LM/AD-AS Model: A General Framework for Macroeconomic
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
NBER WORKING PAPER SERIES WHY DIDN’T FRANCE FOLLOW THE Michael D. Bordo
... argued that it should follow a policy similar to the British for similar reasons. The costs of the inflationary process from 1914 to 1926 are also well known: a fragile financial system (Bouvier, 1984); leading to insufficiently capitalized firms; a decline in the international position of the Frenc ...
... argued that it should follow a policy similar to the British for similar reasons. The costs of the inflationary process from 1914 to 1926 are also well known: a fragile financial system (Bouvier, 1984); leading to insufficiently capitalized firms; a decline in the international position of the Frenc ...
Document
... investment. Government demands more goods and services to meet civil and military requirements of the country. Thus the 'aggregate demand comprises ,consumption, investment and government expenditures. When the value of aggregate demand exceeds the value of aggregate supply at the full employment le ...
... investment. Government demands more goods and services to meet civil and military requirements of the country. Thus the 'aggregate demand comprises ,consumption, investment and government expenditures. When the value of aggregate demand exceeds the value of aggregate supply at the full employment le ...
interest rate - Universität Bamberg
... declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices and wages • All markets contribute to eliminate external i ...
... declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices and wages • All markets contribute to eliminate external i ...
Mankiw 6e PowerPoints
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... increased saving. One such finding is based on Katona‟s finding which states that people have a strong distaste for inflation. Inflation is mostly treated as an undesirable phenomenon whose presence results in pessimism about economic conditions that in turn may lead to increased saving for precauti ...
... increased saving. One such finding is based on Katona‟s finding which states that people have a strong distaste for inflation. Inflation is mostly treated as an undesirable phenomenon whose presence results in pessimism about economic conditions that in turn may lead to increased saving for precauti ...
EU FISCAL POLICY AND THE STABILITY AND GROWTH PACT: B
... Apart from the problems concerning the stabilisation function of fiscal policy, there are further implications of the pact. As De Grauwe contends (1997): “As countries will be hindered in their desire to use the automatic stabilisation in their budgets during recessions, they will increase their pre ...
... Apart from the problems concerning the stabilisation function of fiscal policy, there are further implications of the pact. As De Grauwe contends (1997): “As countries will be hindered in their desire to use the automatic stabilisation in their budgets during recessions, they will increase their pre ...
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.