Chapter 7
... inflation rate: (Click on, in sequence, Canadian Statistics > Tables by subject > Prices and price indexes > Consumer price index > Consumer price index, historical summary) interest rates: (Click on, in sequence, Canadian Statistics > Tables by subject > Government > Monetary authorities > Exch ...
... inflation rate: (Click on, in sequence, Canadian Statistics > Tables by subject > Prices and price indexes > Consumer price index > Consumer price index, historical summary) interest rates: (Click on, in sequence, Canadian Statistics > Tables by subject > Government > Monetary authorities > Exch ...
Problem Set 4 Question 2
... We use the example of a deficit reduction (in the form of a decrease in government spending, G) to illustrate the effect that fiscal policy can have on investment in the medium run. Looking at the IS-LM diagram first, we see that the fall in government spending causes the IS Curve to shift to the le ...
... We use the example of a deficit reduction (in the form of a decrease in government spending, G) to illustrate the effect that fiscal policy can have on investment in the medium run. Looking at the IS-LM diagram first, we see that the fall in government spending causes the IS Curve to shift to the le ...
Capital Inflows in a Small Open Economy
... (2) Reduce the fiscal deficit in order to increase the total savings of the economy, pushing downwards the local interest rate. (3) Implement some capital controls to reduce the level of desired demand of Home’s financial assets for the portfolio of the foreign agents. Given that the interest rate d ...
... (2) Reduce the fiscal deficit in order to increase the total savings of the economy, pushing downwards the local interest rate. (3) Implement some capital controls to reduce the level of desired demand of Home’s financial assets for the portfolio of the foreign agents. Given that the interest rate d ...
Problem Set #1 Solutions
... produce increases in interest rates that crowd out and reduce NX and I, the remaining two components of "other" spending. a. Under what conditions is the monetarist critique likely to be right? The monetarist critique is likely to be right when there is low demand for bonds (which would imply low pr ...
... produce increases in interest rates that crowd out and reduce NX and I, the remaining two components of "other" spending. a. Under what conditions is the monetarist critique likely to be right? The monetarist critique is likely to be right when there is low demand for bonds (which would imply low pr ...
ECONOMICS AND ECONOMIC HISTORY
... The monetary sector; money and credit; monetary theory (classical, Keynesian, portfolio models and post Keynesian); the demand for money; the transmission mechanism; the money supply process; theory and application of the definition of money; monetary policy; monetary control in South Africa; moneta ...
... The monetary sector; money and credit; monetary theory (classical, Keynesian, portfolio models and post Keynesian); the demand for money; the transmission mechanism; the money supply process; theory and application of the definition of money; monetary policy; monetary control in South Africa; moneta ...
Monetary Policy and Automatic Stabilizers: the Role of Progressive
... stabilization and output stabilization. This is quite interesting since it is well known that the New Keynesian model, in its standard version, does not imply any policy trade-o¤s3 , while these trade-o¤s are usually perceived by central banks as a major challenge in formulating monetary policy. Sec ...
... stabilization and output stabilization. This is quite interesting since it is well known that the New Keynesian model, in its standard version, does not imply any policy trade-o¤s3 , while these trade-o¤s are usually perceived by central banks as a major challenge in formulating monetary policy. Sec ...
International Monetary Systems
... would rush to redeem their dollar assets before the gold ran out. – This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. – If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed ra ...
... would rush to redeem their dollar assets before the gold ran out. – This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. – If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed ra ...
Impact of Real Depreciation of Taka on Export Earning of Bangladesh:
... However many researchers did not find such (positive) impact of exchange rate depreciation on export. Telak & Yeok’s(1998) findings may have more relevance for the small economies whose exports are highly dependent on imported raw materials and intermediate inputs. Analyzing the case of Singapore th ...
... However many researchers did not find such (positive) impact of exchange rate depreciation on export. Telak & Yeok’s(1998) findings may have more relevance for the small economies whose exports are highly dependent on imported raw materials and intermediate inputs. Analyzing the case of Singapore th ...
Emerging Countries and Inconsistencies in Macroeconomic Policy
... central bank (Arestis and Sawyer, 2003). In emerging markets, the important role of the exchange rate adds another dimension to the assessment of the feasibility of this monetary policy. Indeed, empirical evidence shows that despite their official ITR cum floating exchange rates, emerging market cen ...
... central bank (Arestis and Sawyer, 2003). In emerging markets, the important role of the exchange rate adds another dimension to the assessment of the feasibility of this monetary policy. Indeed, empirical evidence shows that despite their official ITR cum floating exchange rates, emerging market cen ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 19
... 25) The case of New Zealand, described in the text, draws what technical conclusion regarding the country's international debt position? Answer: Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The conclusion depends upon the country's futu ...
... 25) The case of New Zealand, described in the text, draws what technical conclusion regarding the country's international debt position? Answer: Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The conclusion depends upon the country's futu ...
2011:2 What is the natural interest rate?
... to households regarding firms’ marginal cost levels: different firms’ relative prices signal differences between their relative production costs. If prices are sluggish, there is a risk that households will get the wrong signals concerning relative costs and will thus demand too much of those goods ...
... to households regarding firms’ marginal cost levels: different firms’ relative prices signal differences between their relative production costs. If prices are sluggish, there is a risk that households will get the wrong signals concerning relative costs and will thus demand too much of those goods ...
Inflation And Its Relationship To Unemployment And Growth
... inflationary process. Rational expectations are the expectations that the economists' model predicts. Adaptive expectations are those based, in some way, on what has been in the past. Extrapolative expectations are those that ...
... inflationary process. Rational expectations are the expectations that the economists' model predicts. Adaptive expectations are those based, in some way, on what has been in the past. Extrapolative expectations are those that ...
Macroeconomic Policy and Poverty
... and its tight monetary policy lasted longer despite the downward pressure on the output during the time. Only a few years later, a fiscal deficit began to appear. Until 2002, as a percentage of GDP, Indonesia’s deficit was not only lower than Thailand’s but also lowest among all the Asian countries ...
... and its tight monetary policy lasted longer despite the downward pressure on the output during the time. Only a few years later, a fiscal deficit began to appear. Until 2002, as a percentage of GDP, Indonesia’s deficit was not only lower than Thailand’s but also lowest among all the Asian countries ...
Document
... Recall the Quantity Theory of Money (MV=PY), where M is the money supply, V is the velocity of money, P is the price level, and Y is the amount of output. It makes the not quite realistic, but very convenient assumption that velocity is constant over time. Also, when interpreting this equation, reca ...
... Recall the Quantity Theory of Money (MV=PY), where M is the money supply, V is the velocity of money, P is the price level, and Y is the amount of output. It makes the not quite realistic, but very convenient assumption that velocity is constant over time. Also, when interpreting this equation, reca ...
and Uncertain Fiscal Financing - Federal Reserve Bank of Kansas City
... the accounting exercise converts those transfers into government borrowing, with no resulting adjustments in prices or economic activity. What can we learn from figure 2? Very little because it depicts a scenario that cannot happen. In an economy populated by at least some forward-looking agents who ...
... the accounting exercise converts those transfers into government borrowing, with no resulting adjustments in prices or economic activity. What can we learn from figure 2? Very little because it depicts a scenario that cannot happen. In an economy populated by at least some forward-looking agents who ...
Chapter 13 power point
... • As consumers cut back on purchases, other goods become more important so they stop cutting back • As consumers cut consumption, savings increase and they become more reassured about spending. ...
... • As consumers cut back on purchases, other goods become more important so they stop cutting back • As consumers cut consumption, savings increase and they become more reassured about spending. ...
Stabilization Policy, Output, and Employment (15th ed.)
... Copyright ©2015 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part. ...
... Copyright ©2015 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part. ...
Monetary and macro-prudential policy: Model comparison and robustness † Volker Wieland
... Secondly, we discuss some practical issues in conducting model comparisons. For example, it needs to be assured that the models employed correspond to those of the original authors. Unfortunately, there is no generally accepted standard that would guarantee that models described in economic journals ...
... Secondly, we discuss some practical issues in conducting model comparisons. For example, it needs to be assured that the models employed correspond to those of the original authors. Unfortunately, there is no generally accepted standard that would guarantee that models described in economic journals ...
I Changes in Business Cycles: Evidence and Explanations Christina D. Romer
... postwar eras does not mask some fundamental change in the underlying distributions. It is not the case, for example, that the similar standard deviations result from large recessions in the prewar era and large booms in the postwar era. Instead, the standard deviations are roughly similar in the two ...
... postwar eras does not mask some fundamental change in the underlying distributions. It is not the case, for example, that the similar standard deviations result from large recessions in the prewar era and large booms in the postwar era. Instead, the standard deviations are roughly similar in the two ...
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.