2015-IV
... rate. Due to the cumulative depreciation in the Turkish lira, annual core goods inflation surged in this period and the core inflation remained elevated. In addition to the changes in exchange rate and food prices, wage developments and medium-term inflation expectations will also be effective on th ...
... rate. Due to the cumulative depreciation in the Turkish lira, annual core goods inflation surged in this period and the core inflation remained elevated. In addition to the changes in exchange rate and food prices, wage developments and medium-term inflation expectations will also be effective on th ...
BNR ECONOMIC REVIEW Vol. 9
... levels of volatility which could lead to poor performance of Rwanda’s tradable sector as well as putting in place better and sustainable strategies to increase production in Rwanda to avoid higher import prices induced by the exchange rate depreciation. Mindful of the fact that the actions of fiscal ...
... levels of volatility which could lead to poor performance of Rwanda’s tradable sector as well as putting in place better and sustainable strategies to increase production in Rwanda to avoid higher import prices induced by the exchange rate depreciation. Mindful of the fact that the actions of fiscal ...
24729 33 c33 p737-776
... When real GDP grows rapidly, business is good. During such periods of economic expansion, most firms find that customers are plentiful and that profits are growing. When real GDP falls during recessions, businesses have trouble. During such periods of economic contraction, most firms experience decl ...
... When real GDP grows rapidly, business is good. During such periods of economic expansion, most firms find that customers are plentiful and that profits are growing. When real GDP falls during recessions, businesses have trouble. During such periods of economic contraction, most firms experience decl ...
Preview - American Economic Association
... Before we attempt to model and forecast an outlook for prices, it may be useful to first establish why inflation has been so sluggish recently. One key factor contributing to deflationary pressure has been the gap between actual and potential GDP growth, a schism that emerged in the wake of the Grea ...
... Before we attempt to model and forecast an outlook for prices, it may be useful to first establish why inflation has been so sluggish recently. One key factor contributing to deflationary pressure has been the gap between actual and potential GDP growth, a schism that emerged in the wake of the Grea ...
Chapter 02 Money and the Payments System
... B. Carrying currency entails greater risk, because it cannot be replaced if lost or stolen C. Currency is a better store of value than checking deposits D. Checks are not included in measures of money, whereas currency is ...
... B. Carrying currency entails greater risk, because it cannot be replaced if lost or stolen C. Currency is a better store of value than checking deposits D. Checks are not included in measures of money, whereas currency is ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... better still if it “cheats” on the agreement. That is, it will be able to do better in the short-run, assuming that the other countries leave their policies as agreed; in future periods, the other countries will presumably retaliate by also abandoning the agreement. But economists have probably over ...
... better still if it “cheats” on the agreement. That is, it will be able to do better in the short-run, assuming that the other countries leave their policies as agreed; in future periods, the other countries will presumably retaliate by also abandoning the agreement. But economists have probably over ...
Aggregate Demand and Aggregate Supply
... of this section, we describe why the AD curve is downward-sloping; then we describe the factors that change its position—that is, cause the AD curve to shift. The AD curve is downward-sloping because an increase in the price level reduces the aggregate demand for goods and services if nothing else c ...
... of this section, we describe why the AD curve is downward-sloping; then we describe the factors that change its position—that is, cause the AD curve to shift. The AD curve is downward-sloping because an increase in the price level reduces the aggregate demand for goods and services if nothing else c ...
short-run aggregate supply curve
... The Aggregate Supply Curve • The aggregate supply curve shows the relationship between the aggregate price level and the quantity of aggregate output in the economy. ...
... The Aggregate Supply Curve • The aggregate supply curve shows the relationship between the aggregate price level and the quantity of aggregate output in the economy. ...
The impact of monetary policy on particular sectors of the economy
... Emerging market economies have now become one of the most dynamic and economically important groups in the world economy. As these economies become larger and more integrated into international trade and finance, they face an increasingly complex set of policy challenges. Given their important role ...
... Emerging market economies have now become one of the most dynamic and economically important groups in the world economy. As these economies become larger and more integrated into international trade and finance, they face an increasingly complex set of policy challenges. Given their important role ...
Money Still Matters
... A number of social institutions arise to minimize these costs. The appearance of middlemen, for example, helps to facilitate a central meeting place for exchange. This emergence of organized markets helps to economize on information costs associated with strict barter. In addition, competition amon ...
... A number of social institutions arise to minimize these costs. The appearance of middlemen, for example, helps to facilitate a central meeting place for exchange. This emergence of organized markets helps to economize on information costs associated with strict barter. In addition, competition amon ...
Chapter 12
... By showing that productivity increases result in a slower pace of hiring workers and a slow recovery that increases inflation, but only slightly. ...
... By showing that productivity increases result in a slower pace of hiring workers and a slow recovery that increases inflation, but only slightly. ...
Articles The Triumph of Monetarism?
... connected with their underlying monetary theory. In Patinkin and Johnson's view, Old Chicago Monetarism was a retrospective construction by Milton Friedman (1956). In their view, Friedman used "Keynesian" tools and insights to provide a retrospective posthoc theoretical justification for policy reco ...
... connected with their underlying monetary theory. In Patinkin and Johnson's view, Old Chicago Monetarism was a retrospective construction by Milton Friedman (1956). In their view, Friedman used "Keynesian" tools and insights to provide a retrospective posthoc theoretical justification for policy reco ...
NATIONAL OPEN UNIVERSITY OF NIGERIA MACROECONOMIC
... How to Get the Most from This Course In distance learning the study units replace the university lecturer. This is one of the great advantages of distance learning; you can read and work through specially designed study materials at your own pace and at a time and place that suit you best. Think of ...
... How to Get the Most from This Course In distance learning the study units replace the university lecturer. This is one of the great advantages of distance learning; you can read and work through specially designed study materials at your own pace and at a time and place that suit you best. Think of ...
Inflation in the open economy: A norwegian model
... are better able to absorb wage increases without affecting prices and profits than the sheltered industries.' 5. In regard, however, to individual industries within the group the relation no longer holds. Instead, national accounts data show considerable erratic movements of the relationship between ...
... are better able to absorb wage increases without affecting prices and profits than the sheltered industries.' 5. In regard, however, to individual industries within the group the relation no longer holds. Instead, national accounts data show considerable erratic movements of the relationship between ...
Commodity prices and their role in assessing euro area growth and
... of substitution between energy sources and effectively provide a backstop to scarcity-related trends in prices of individual energy commodities. As regards the higher volatility of commodity prices in the period since 2003, one explanation is the impact of the global recession, but other factors cou ...
... of substitution between energy sources and effectively provide a backstop to scarcity-related trends in prices of individual energy commodities. As regards the higher volatility of commodity prices in the period since 2003, one explanation is the impact of the global recession, but other factors cou ...
On the Desirability of Nominal GDP Targeting
... between inflation and gap stabilization and renders it impossible for the central bank to fully implement the flexible price and wage allocation. For plausible parameterizations of the parameters governing price and wage stickiness, they find that inflation targeting tends to perform poorly from a w ...
... between inflation and gap stabilization and renders it impossible for the central bank to fully implement the flexible price and wage allocation. For plausible parameterizations of the parameters governing price and wage stickiness, they find that inflation targeting tends to perform poorly from a w ...
THE DEMAND FOR MONEY
... second conclusion to read that an increase in the expected rate of inflation lowers the demand for real money balances. The first conclusion is represented graphically in Figure 13.1. In this figure the cost of holding each dollar, $1/P, is measured on the vertical axis and the quantity of nominal m ...
... second conclusion to read that an increase in the expected rate of inflation lowers the demand for real money balances. The first conclusion is represented graphically in Figure 13.1. In this figure the cost of holding each dollar, $1/P, is measured on the vertical axis and the quantity of nominal m ...
ExamView Pro - ec1001june2009.tst
... rate or adjustable nominal interest rate loan. Typically the adjustable rate loans start with a lower rate than the fixed rate loans. Given that, Wei would most likely want to borrow money at the higher fixed rate when she expects the a. inflation rate to rise. b. inflation rate to fall. c. inflatio ...
... rate or adjustable nominal interest rate loan. Typically the adjustable rate loans start with a lower rate than the fixed rate loans. Given that, Wei would most likely want to borrow money at the higher fixed rate when she expects the a. inflation rate to rise. b. inflation rate to fall. c. inflatio ...
NBER WORKING PAPER SERIES Joshua Aizenman Nancy Marion
... ten years. In many respects, the temptation to inflate away some of this debt burden is similar to that at the end of World War II. In 1946, the debt ratio was 108.6 percent. Inflation reduced this ratio about 40 percent within a decade. Yet there are some important differences –shorter debt maturit ...
... ten years. In many respects, the temptation to inflate away some of this debt burden is similar to that at the end of World War II. In 1946, the debt ratio was 108.6 percent. Inflation reduced this ratio about 40 percent within a decade. Yet there are some important differences –shorter debt maturit ...
Chapter 9 - University of Management and Technology
... Producer Price Index, PPI A measure of the average prices received by producers and wholesalers ...
... Producer Price Index, PPI A measure of the average prices received by producers and wholesalers ...
chapter 10 money
... Although we know from experience that, under certain circumstances, barter exchange works, the complications associated with the requirements of a double coincidence of wants make the exchange of one good for another inefficient in the modern world. Money was invented to facilitate exchange. Money s ...
... Although we know from experience that, under certain circumstances, barter exchange works, the complications associated with the requirements of a double coincidence of wants make the exchange of one good for another inefficient in the modern world. Money was invented to facilitate exchange. Money s ...
Monetary policy with uncertain estimates of potential output
... down—contributed to the breakdown of a variety of potential output measures. The disintegration of measures based on Okun's law with a fixed natural rate of unemployment was especially conspicuous. With unemployment rates well above 4 percent, these measures indicated that output was far below poten ...
... down—contributed to the breakdown of a variety of potential output measures. The disintegration of measures based on Okun's law with a fixed natural rate of unemployment was especially conspicuous. With unemployment rates well above 4 percent, these measures indicated that output was far below poten ...
Review Questions and Answers for Chapter 11
... Net export spending can change for two nonprice-level-related reasons such as rising or falling national incomes in other countries and exchange rate changes unrelated to domestic price levels. 8. Identify the ways in which each of the following determinants would have to change if each was causing ...
... Net export spending can change for two nonprice-level-related reasons such as rising or falling national incomes in other countries and exchange rate changes unrelated to domestic price levels. 8. Identify the ways in which each of the following determinants would have to change if each was causing ...
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.