THE EFFECT OF LENDING INTEREST RATE ON ECONOMIC
... fluctuated to respond to changes in demand and supply of loanable funds in the financial market. Various studies have been conducted but they have been sectoral in nature, however no known study that has dealt on the effects of interest rate on the general economic growth has been done. This study t ...
... fluctuated to respond to changes in demand and supply of loanable funds in the financial market. Various studies have been conducted but they have been sectoral in nature, however no known study that has dealt on the effects of interest rate on the general economic growth has been done. This study t ...
Chapter 11: The Money Market and the LM Curve Copyright MHHE
... interest rate earned by the bond-holder depends on the price of the bond. Suppose the price of the bond is $10. Then the bondholder is earning $1 per year on a financial asset whose price is $10, for a rate of return – an interest rate – of 10 percent. Now, what happens if the price of the bond rise ...
... interest rate earned by the bond-holder depends on the price of the bond. Suppose the price of the bond is $10. Then the bondholder is earning $1 per year on a financial asset whose price is $10, for a rate of return – an interest rate – of 10 percent. Now, what happens if the price of the bond rise ...
the use of reserve requirements in an optimal monetary policy
... Some inflation targeting countries like Brazil, Colombia and Peru, have used reserve requirements on domestic deposits as a macro-prudential policy tool aimed at increasing lending interest rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of t ...
... Some inflation targeting countries like Brazil, Colombia and Peru, have used reserve requirements on domestic deposits as a macro-prudential policy tool aimed at increasing lending interest rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of t ...
Chapter 28(13): Monetary Policy
... c. increase both its assets and its liabilities, but increase the assets by more. d. increase both its assets and its liabilities, but increase the liabilities by more. 10. Which of the following changes the size of the monetary base? a. A bank withdraws currency from the deposits it keeps at the Fe ...
... c. increase both its assets and its liabilities, but increase the assets by more. d. increase both its assets and its liabilities, but increase the liabilities by more. 10. Which of the following changes the size of the monetary base? a. A bank withdraws currency from the deposits it keeps at the Fe ...
NBER WORKING PAPER SERIES MONETARY SCIENCE, FISCAL ALCHEMY Eric M. Leeper
... policy that it is something of a mantra; fiscal authorities rarely discuss it.3 In normal times, fiscal alchemy poses no insurmountable problems for central banks. Even if policy institutions do not firmly anchor fiscal expectations, people can use past fiscal behavior to guide their beliefs about the fu ...
... policy that it is something of a mantra; fiscal authorities rarely discuss it.3 In normal times, fiscal alchemy poses no insurmountable problems for central banks. Even if policy institutions do not firmly anchor fiscal expectations, people can use past fiscal behavior to guide their beliefs about the fu ...
References - ACS - United Nations Economic Commission for Africa
... pessimistic (i.e. predicting higher inflation rates than the actual rate) while IMF was optimistic .With regard to the current account balance (CAB/GDP) and fiscal balance, the results show that all the institutions were optimistic except UNDESA, while forecasts were pessimistic when it comes to cou ...
... pessimistic (i.e. predicting higher inflation rates than the actual rate) while IMF was optimistic .With regard to the current account balance (CAB/GDP) and fiscal balance, the results show that all the institutions were optimistic except UNDESA, while forecasts were pessimistic when it comes to cou ...
NBER WORKING PAPER SERIES BANKS, MARKET ORGANIZATION, AND MACROECONOMIC PERFORMANCE:
... How do banks affect the macroeconomy? If banks get in trouble, how does that matter for various performance measures? In this paper, we develop an agent-based computational model and apply it to explore one possible channel through which banks might affect the macroeconomy, namely their role in what ...
... How do banks affect the macroeconomy? If banks get in trouble, how does that matter for various performance measures? In this paper, we develop an agent-based computational model and apply it to explore one possible channel through which banks might affect the macroeconomy, namely their role in what ...
Triangular Relation Foreign Direct Investments - Exchange Rate – Capital Market for the CEE Countries:
... The statistic output revealed the fact that the variables are integrated of order one, highlighting the transitory dimension of shocks. This finding permitted the cointegration tests which revealed important findings. The analysis focused on foreign direct investments both in the position of determi ...
... The statistic output revealed the fact that the variables are integrated of order one, highlighting the transitory dimension of shocks. This finding permitted the cointegration tests which revealed important findings. The analysis focused on foreign direct investments both in the position of determi ...
Chapter 4: Inflation in the Twentieth Century
... Nieman-Marcus. The calculation of the Consumer Price Index does not consider this substitution either. Since 1995, the government has attempted to remedy these two defects by shifting to what is called a “chain weighted index”. We will not be concerned with the details of this index here, except tha ...
... Nieman-Marcus. The calculation of the Consumer Price Index does not consider this substitution either. Since 1995, the government has attempted to remedy these two defects by shifting to what is called a “chain weighted index”. We will not be concerned with the details of this index here, except tha ...
When It Rains, It Pours: Procyclical Capital Flows and
... (see Lane, 2003), but systematic empirical work is scant.2 This is probably due to the notorious difficulties (present even for advanced countries) in empirically characterizing the stance of monetary policy.3 Relying on data for 104 countries for the period 1960-2003, this paper revisits the eviden ...
... (see Lane, 2003), but systematic empirical work is scant.2 This is probably due to the notorious difficulties (present even for advanced countries) in empirically characterizing the stance of monetary policy.3 Relying on data for 104 countries for the period 1960-2003, this paper revisits the eviden ...
0620 L M AW AND
... texts, in contrast, typically cover growth. Unemployment is central because it is harder to explain or correct than inflation and balance of payments problems. The basic causes and cures of the last two were established by the eighteenth century (as in David Hume’s essays that relate to economics). ...
... texts, in contrast, typically cover growth. Unemployment is central because it is harder to explain or correct than inflation and balance of payments problems. The basic causes and cures of the last two were established by the eighteenth century (as in David Hume’s essays that relate to economics). ...
short-run macroeconomic equilibrium
... Long-Run Macroeconomic Equilibrium The economy is in long-run macroeconomic equilibrium when the point of short-run macroeconomic equilibrium is on the long-run aggregate supply curve. ...
... Long-Run Macroeconomic Equilibrium The economy is in long-run macroeconomic equilibrium when the point of short-run macroeconomic equilibrium is on the long-run aggregate supply curve. ...
Chapter 24 Test Bank
... interest rates with respect to their ability to affect people's economic status and business outcomes. If all prices, wages, and interest rates adjusted automatically and immediately with inflation, then no one’s purchasing power or profits or real loan payments would change. However, if other econo ...
... interest rates with respect to their ability to affect people's economic status and business outcomes. If all prices, wages, and interest rates adjusted automatically and immediately with inflation, then no one’s purchasing power or profits or real loan payments would change. However, if other econo ...
Clashing Theories: Why Is Unemployment So High When Interest
... in lower inflation than previously expected. Sellers maintain higher prices while their costs are moderated, so profit margins rise. The wedge of higher market power results in a decline in economic activity. ...
... in lower inflation than previously expected. Sellers maintain higher prices while their costs are moderated, so profit margins rise. The wedge of higher market power results in a decline in economic activity. ...
Fiscal Policy in an Unemployment Crisis
... Christiano, and Eichenbaum (1992)). Yet the same wealth effect which instills a rise in output crowds out private consumption and the multiplier must fall short of unity. Alternatively, in the new Keynesian model in which prices are rigid, the effect of fiscal policy can be considerably larger. Neve ...
... Christiano, and Eichenbaum (1992)). Yet the same wealth effect which instills a rise in output crowds out private consumption and the multiplier must fall short of unity. Alternatively, in the new Keynesian model in which prices are rigid, the effect of fiscal policy can be considerably larger. Neve ...
Garrison Lect-1. 4 Hayek and Friedman
... extra demand is initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spr ...
... extra demand is initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into which the extra cash spills. The increased demand will spr ...
NBER WORKING PAPER SERIES WAGES, RELATIVE PRICES AND CHOICE BETWEEN
... Journal study (1963) is the best known, assumed ...
... Journal study (1963) is the best known, assumed ...
Fiscal Policy in an Unemployment Crisis
... Sims (2012). These authors assess the impact of government spending on output through a mechanism of consumer “confidence”, which is strongly predictive of future fundamentals (c.f. Barsky and Sims (2012)).9 Following the methodology developed in Auerbach and Gorodnichenko (2012), Bachmann and Sims ...
... Sims (2012). These authors assess the impact of government spending on output through a mechanism of consumer “confidence”, which is strongly predictive of future fundamentals (c.f. Barsky and Sims (2012)).9 Following the methodology developed in Auerbach and Gorodnichenko (2012), Bachmann and Sims ...
Taxa Real de Câmbio, Mobilidade de Capitais e Mudança
... insignificant, low or have a priori unexpected signs”(2002, p.92). These studies, however, do not take in consideration the impact of changes in the real exchangerate over the value of exports multiplier. This variable must be considered a structural parameter that depends on the level of productive ...
... insignificant, low or have a priori unexpected signs”(2002, p.92). These studies, however, do not take in consideration the impact of changes in the real exchangerate over the value of exports multiplier. This variable must be considered a structural parameter that depends on the level of productive ...
Mankiw 5/e Chapter 13: Aggregate Supply
... – reduce GDP by 20% for one year – reduce GDP by ____________________ – reduce GDP by 5% for each of four years ...
... – reduce GDP by 20% for one year – reduce GDP by ____________________ – reduce GDP by 5% for each of four years ...
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.