The Role of Demand Management Policies in Reducing
... "wage gap" literature-may thus tell us rather little about the ultimate causes of movements in unemployment. Panel B gives the associated picture in output/price space and looks (and behaves) just like the usual aggregate supplylaggregate demand model of introductory undergraduate texts. AD is a con ...
... "wage gap" literature-may thus tell us rather little about the ultimate causes of movements in unemployment. Panel B gives the associated picture in output/price space and looks (and behaves) just like the usual aggregate supplylaggregate demand model of introductory undergraduate texts. AD is a con ...
Money, New-Keynesian Macroeconomics and the Business Cycle
... We adopt in this model a monopolistic market structure à la Blanchard and Kiyotaki [1987]7 . As the elasticity of substitution between the different goods entering in the utility function is not infinite, each firm has a monopoly power on its market. As this elasticity is strictly positive, each fi ...
... We adopt in this model a monopolistic market structure à la Blanchard and Kiyotaki [1987]7 . As the elasticity of substitution between the different goods entering in the utility function is not infinite, each firm has a monopoly power on its market. As this elasticity is strictly positive, each fi ...
Finance and Economics Discussion Series Federal Reserve Board, Washington, D.C.
... of funds but do not suddenly curtail their supply. Other policy changes have improved financial institutions’ ability to offer new products and expand across geographic boundaries. The resulting diversification has insulated institutions from shocks specific to a given region or type of customer and ...
... of funds but do not suddenly curtail their supply. Other policy changes have improved financial institutions’ ability to offer new products and expand across geographic boundaries. The resulting diversification has insulated institutions from shocks specific to a given region or type of customer and ...
PEOPLE IN ECONOMICS: The $787 Billion Question - Finance
... In a seminal 1989 paper, “Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz,” the Romers used the narrative approach to identify seven episodes in the postwar era when, because of concern about inflation, the U.S. Federal Reserve, the nation’s central bank, attempted to ...
... In a seminal 1989 paper, “Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz,” the Romers used the narrative approach to identify seven episodes in the postwar era when, because of concern about inflation, the U.S. Federal Reserve, the nation’s central bank, attempted to ...
Effects of the Exchange Rate on Output and Price Level:Evidence
... Investment Channel: A decline in new investment (Branson, 1986; Buffie, 1986 and Van Wijnbergen, 1986). Since a substantial portion of any new investment in developing countries consists of imported capital goods, depreciation raises the cost of imported capital and reduces its imports. This discour ...
... Investment Channel: A decline in new investment (Branson, 1986; Buffie, 1986 and Van Wijnbergen, 1986). Since a substantial portion of any new investment in developing countries consists of imported capital goods, depreciation raises the cost of imported capital and reduces its imports. This discour ...
Mankiw 5/e Chapter 13: Aggregate Supply
... Rational expectations Ways of modeling the formation of expectations: adaptive expectations: People base their expectations of future inflation on recently observed inflation. rational expectations: People base their expectations on all available information, including information about current ...
... Rational expectations Ways of modeling the formation of expectations: adaptive expectations: People base their expectations of future inflation on recently observed inflation. rational expectations: People base their expectations on all available information, including information about current ...
Understanding Bilateral Exchange Rate Volatility
... intermediate importers may purchase imports from the foreign suppliers at price Q* . Due to default risk, the intermediate importers are required to pay an extra ‘riskpremium’ per unit of imported intermediate inputs. Following Bernanke et al (1999), ...
... intermediate importers may purchase imports from the foreign suppliers at price Q* . Due to default risk, the intermediate importers are required to pay an extra ‘riskpremium’ per unit of imported intermediate inputs. Following Bernanke et al (1999), ...
Short-Run Effects of Money When Some Prices
... Woodford (1992) and Cho and Cooley (1990) in assuming that nominal prices in the sticky-price sector are set one period in advance.1 (We assume that the implications of sluggish price adjustment are largely independent of the source of that sluggishness.) In contrast to those models, however, the ec ...
... Woodford (1992) and Cho and Cooley (1990) in assuming that nominal prices in the sticky-price sector are set one period in advance.1 (We assume that the implications of sluggish price adjustment are largely independent of the source of that sluggishness.) In contrast to those models, however, the ec ...
Y i - IES
... becomes infinitely interest elastic (horizontal – see V.1 F above), then – Absolute liquidity preference (everybody keeps money now) – Interest does not react to changes in supply of nominal money liquidity trap ...
... becomes infinitely interest elastic (horizontal – see V.1 F above), then – Absolute liquidity preference (everybody keeps money now) – Interest does not react to changes in supply of nominal money liquidity trap ...
Principles of Economics, Case and Fair,9e
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
Mod 6.1: Monetary Policy
... Keynes found another limiting case in which people would be unemployed and remain unemployed unless something was done by the government: a kick start. In the last lecture, we looked at what makes money money. Governments print modern money and issue it through their central banks and their banking ...
... Keynes found another limiting case in which people would be unemployed and remain unemployed unless something was done by the government: a kick start. In the last lecture, we looked at what makes money money. Governments print modern money and issue it through their central banks and their banking ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... between Korea and its major trading partners have been relatively quickly reflected in the won’s exchange rate against the U.S. dollar. This may very well have been inevitable if Korea’s export prices were to remain competitive while its rate of inflation was relatively high. It was also shown that ...
... between Korea and its major trading partners have been relatively quickly reflected in the won’s exchange rate against the U.S. dollar. This may very well have been inevitable if Korea’s export prices were to remain competitive while its rate of inflation was relatively high. It was also shown that ...
Chap 27
... The money wage rate rises, which decreases short-run aggregate supply and decreases real GDP but raises the price level. In the long run, an increase in the quantity of money leaves real GDP unchanged but raises the price level. ...
... The money wage rate rises, which decreases short-run aggregate supply and decreases real GDP but raises the price level. In the long run, an increase in the quantity of money leaves real GDP unchanged but raises the price level. ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...
This PDF is a selection from a published volume
... in the long-run. A 1 percent rise of non-tradable productivity results in a 0.18 percent decrease of the relative price in the short-run and a 0.32 percent decrease in the long-run. In summary, all papers found a significant relationship between sectoral prices and productivity measures. Magnitudes ...
... in the long-run. A 1 percent rise of non-tradable productivity results in a 0.18 percent decrease of the relative price in the short-run and a 0.32 percent decrease in the long-run. In summary, all papers found a significant relationship between sectoral prices and productivity measures. Magnitudes ...
经济学 - 上海交通大学成人教育学院
... Define CPI and explain the limitation of CPI as a measure of the cost of living ...
... Define CPI and explain the limitation of CPI as a measure of the cost of living ...
Government Spending Effects in a Small Open Economy
... Negative wealth effects are affected by the terms of trade. When the government spending increases agents expect higher present value of taxes. But the terms of trade changes the present value of the government spending. When the government spending is revaluated in CPI terms, the terms of trade eff ...
... Negative wealth effects are affected by the terms of trade. When the government spending increases agents expect higher present value of taxes. But the terms of trade changes the present value of the government spending. When the government spending is revaluated in CPI terms, the terms of trade eff ...
35 - Mersin
... process of reducing inflation by one percentage point. • An estimate of the sacrifice ratio is five. • To reduce inflation from about 10% in 1979-1981 to 4% would have required an estimated sacrifice of 30% of annual output! ...
... process of reducing inflation by one percentage point. • An estimate of the sacrifice ratio is five. • To reduce inflation from about 10% in 1979-1981 to 4% would have required an estimated sacrifice of 30% of annual output! ...
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.