Quarterly revision of the macroeconomic projections Governor
... debt-creating inflows and lower foreign investments; Similar level of capital inflows also in 2013, given net repayments of government debt and higher foreign direct investments; Moderate increase in the foreign reserves in 2012 and 2013 and their maintenance around the adequate level. % of GDP ...
... debt-creating inflows and lower foreign investments; Similar level of capital inflows also in 2013, given net repayments of government debt and higher foreign direct investments; Moderate increase in the foreign reserves in 2012 and 2013 and their maintenance around the adequate level. % of GDP ...
Chapter 5
... 1. Define inflation and deflation, explain how their rates are determined, and articulate why pricelevel changes matter. 2. Explain what a price index is and outline the general steps in computing a price index. 3. Describe and compare different price indexes. 4. Explain how to convert nominal value ...
... 1. Define inflation and deflation, explain how their rates are determined, and articulate why pricelevel changes matter. 2. Explain what a price index is and outline the general steps in computing a price index. 3. Describe and compare different price indexes. 4. Explain how to convert nominal value ...
Document
... • Bureau of Labor Statistics spends millions of dollars gathering data to ensure measure of inflation is accurate • BLS is a highly professional agency, typically headed by an economist – Billions of dollars are at stake for each 1% change in CPI – BLS deserves high praise for keeping its measuremen ...
... • Bureau of Labor Statistics spends millions of dollars gathering data to ensure measure of inflation is accurate • BLS is a highly professional agency, typically headed by an economist – Billions of dollars are at stake for each 1% change in CPI – BLS deserves high praise for keeping its measuremen ...
Phillips Curve
... • In the long run, there is no tradeoff between inflation and unemployment as is in the short run Phillips Curve. • Any rate of inflation is consistent with the NRU - Increase in AD ...
... • In the long run, there is no tradeoff between inflation and unemployment as is in the short run Phillips Curve. • Any rate of inflation is consistent with the NRU - Increase in AD ...
2 3 4 ISSUE: 19
... and presents medium-term inflation forecasts that have been revised in view of previous quarter developments. The Report also contains text boxes on the factors determining the monetary policy stance in emerging markets, the main inflation trend, capacity utilization ratios for both domestic and ...
... and presents medium-term inflation forecasts that have been revised in view of previous quarter developments. The Report also contains text boxes on the factors determining the monetary policy stance in emerging markets, the main inflation trend, capacity utilization ratios for both domestic and ...
Unemployment rate - McGraw Hill Higher Education
... The Misery Index is calculated by adding the unemployment rate and the inflation rate. The Misery Index was unusually low in the 1990s until the ...
... The Misery Index is calculated by adding the unemployment rate and the inflation rate. The Misery Index was unusually low in the 1990s until the ...
Chapters 12 and 13 Economic Indicators
... inflation. Inflation indicates a rise in the general level of prices, which results in the decreased purchasing power of the dollar. If inflation appears to be rising too rapidly, the government may seek to use monetary or fiscal policy to slow the economy. The CPI is based on a “market basket” of g ...
... inflation. Inflation indicates a rise in the general level of prices, which results in the decreased purchasing power of the dollar. If inflation appears to be rising too rapidly, the government may seek to use monetary or fiscal policy to slow the economy. The CPI is based on a “market basket” of g ...
Activity questions
... 1. In year 1, nominal GDP is $500 billion, and in year 2 it is $600 billion. Meanwhile, the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal ...
... 1. In year 1, nominal GDP is $500 billion, and in year 2 it is $600 billion. Meanwhile, the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal ...
U4 Study Guide
... 23. Explain what happened during the Great Depression in terms of aggregate demand and ...
... 23. Explain what happened during the Great Depression in terms of aggregate demand and ...
12 - Brad DeLong
... Greenspan-led FOMC lowered interest rates and expanded the monetary base, hoping that this shift in monetary policy would offset any leftward shift in the IS curve associated with the stock market crash. By the end of the 1980s the U.S. economy had seen inflation begin to rise toward five percent. I ...
... Greenspan-led FOMC lowered interest rates and expanded the monetary base, hoping that this shift in monetary policy would offset any leftward shift in the IS curve associated with the stock market crash. By the end of the 1980s the U.S. economy had seen inflation begin to rise toward five percent. I ...
PDF
... equity capital averaged 2.3 percent over all farms in 1977, a most unfavorable year-the parity ratio was only 67 percent of the 1910-14 average. Because the average rate of return includes a large number of small and inefficient farms, it is misleading. The average rate or return on equity on commer ...
... equity capital averaged 2.3 percent over all farms in 1977, a most unfavorable year-the parity ratio was only 67 percent of the 1910-14 average. Because the average rate of return includes a large number of small and inefficient farms, it is misleading. The average rate or return on equity on commer ...
Eurozone Economic Outlook October 2014: Detailed analyses, figures and tables (PDF, 370 KB)
... over the forecast horizon triggered by improved liquidity conditions and lower cost of capital, after the sharp adjustment following the financial crisis. The rise in production activity and increasing demand for new production capacity will be the main factor underpinning the recovery. Consumption ...
... over the forecast horizon triggered by improved liquidity conditions and lower cost of capital, after the sharp adjustment following the financial crisis. The rise in production activity and increasing demand for new production capacity will be the main factor underpinning the recovery. Consumption ...
Speech to the First Annual Conference of the Risk Management... Singapore via video-conference
... Of course, a big drag on growth over the past year has come from residential construction. Housing is likely to remain an important source of weakness, so let me take a few moments to discuss it in detail. The cooling in the housing sector has, of course, been in part a response to a rise in financi ...
... Of course, a big drag on growth over the past year has come from residential construction. Housing is likely to remain an important source of weakness, so let me take a few moments to discuss it in detail. The cooling in the housing sector has, of course, been in part a response to a rise in financi ...
ECO 212 Principles of Macroeconomics List of Formulas
... This list provides selective formulas from my class notes. ...
... This list provides selective formulas from my class notes. ...
Advanced Placement Microeconomics Review Sheet
... 21) Define the following terms: Keynesians, Monetarists, equation of exchange, velocity of money, crowding-out effect, monetary rule, quantity theory of inflation, rational expectations theory, stagflation, supply shocks, Phillips Curve, inflationary expectations, Reaganomics, “Voodoo” economics, Na ...
... 21) Define the following terms: Keynesians, Monetarists, equation of exchange, velocity of money, crowding-out effect, monetary rule, quantity theory of inflation, rational expectations theory, stagflation, supply shocks, Phillips Curve, inflationary expectations, Reaganomics, “Voodoo” economics, Na ...
Business Cycle/ Economic Indicators Chart
... Assignment: Each student must draw the business cycle on a sheet of 8.5 x 11 piece of paper. Under each phase you must place which economic indicators belong in each phase. Assume that economists have made the following reports about these leading economic indicators. Where would these indicators b ...
... Assignment: Each student must draw the business cycle on a sheet of 8.5 x 11 piece of paper. Under each phase you must place which economic indicators belong in each phase. Assume that economists have made the following reports about these leading economic indicators. Where would these indicators b ...
Inflation is
... – Nominal interest rate minus inflation rate – i.e. the Fisher hypothesis says that real interest rates do not change much – but the nominal interest rate is the opportunity cost of holding money – so a change in nominal interest rates affects real money demand. ...
... – Nominal interest rate minus inflation rate – i.e. the Fisher hypothesis says that real interest rates do not change much – but the nominal interest rate is the opportunity cost of holding money – so a change in nominal interest rates affects real money demand. ...
Macro-Module 2- Introduction to Macroeconomics
... 10. How did challenges lead to a revision of Keynesian ideas and the emergence of the new classical macroeconomics? 11. Describe the difference between the classical view and the Keynesian view of the macro economy. . 12. Most economists agree that the central bank and monetary policy is vital to ec ...
... 10. How did challenges lead to a revision of Keynesian ideas and the emergence of the new classical macroeconomics? 11. Describe the difference between the classical view and the Keynesian view of the macro economy. . 12. Most economists agree that the central bank and monetary policy is vital to ec ...
Chpt 5
... lead people to expect a higher price level in the future. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
... lead people to expect a higher price level in the future. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
Inflation
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation.Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This increase in spending and investment can benefit the economy. However it may also lead to sub-optimal use of resources. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to wage inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy. Inflation reduces unemployment to the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment.Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like ""pushing on a string"". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.