Economics 330 (Kelly)
... UNCERTAIN: First, this depends on your view of money demand. Generally, though, changes in money supply do affect Y. However, the direction of causation in practice is not at all obvious. One can justify that output growth leads money supply growth. See Ch. 25 for a complete explanation. 8. If an ec ...
... UNCERTAIN: First, this depends on your view of money demand. Generally, though, changes in money supply do affect Y. However, the direction of causation in practice is not at all obvious. One can justify that output growth leads money supply growth. See Ch. 25 for a complete explanation. 8. If an ec ...
Bubbling Spanish Housing
... close relative that got into the housing business (at leas as a part time job) Taxi drivers tell you how much they are making in the last two houses they bought. Remember Joseph Kennedy and the tips of the shoe-shine boy Taking about the prices of housing and the incredible profits you can make has ...
... close relative that got into the housing business (at leas as a part time job) Taxi drivers tell you how much they are making in the last two houses they bought. Remember Joseph Kennedy and the tips of the shoe-shine boy Taking about the prices of housing and the incredible profits you can make has ...
THE IMPACT OF LENDING ACTIVITY AND MONETARY POLICY IN
... carried out for possible heteroscedastic error terms, and this failed to reject the null of constant error variance. Although autocorrelation is to be expected for time series data, the fact that the first difference had been taken reduced the possibility of this being an issue. A Durbin-Watson test ...
... carried out for possible heteroscedastic error terms, and this failed to reject the null of constant error variance. Although autocorrelation is to be expected for time series data, the fact that the first difference had been taken reduced the possibility of this being an issue. A Durbin-Watson test ...
The End of the Classical Dichotomy
... which have been useful in analyzing the long term effects of economic policies and economic events on the employment, capital accumulation, production, terms of trade, inflation and the exchange rate. The primary assumption that we have made is that nominal prices, the prices of goods in terms of cu ...
... which have been useful in analyzing the long term effects of economic policies and economic events on the employment, capital accumulation, production, terms of trade, inflation and the exchange rate. The primary assumption that we have made is that nominal prices, the prices of goods in terms of cu ...
Monetary policy and asset prices
... for central banks to focus exclusively on the stability of prices and economic activity over the foreseeable future. Central bank should respond to stock prices, home values and other asset prices only insofar as they have implications for future output and inflation. Central banks should not attemp ...
... for central banks to focus exclusively on the stability of prices and economic activity over the foreseeable future. Central bank should respond to stock prices, home values and other asset prices only insofar as they have implications for future output and inflation. Central banks should not attemp ...
FRBSF E L CONOMIC ETTER
... The discussion so far shows that, as a housing market weakens and the demand for housing falls, prices are not the only margin for adjustment; sales volumes also may slow, and time on the market may increase.This implies that recorded house prices may not be as representative of actual housing value ...
... The discussion so far shows that, as a housing market weakens and the demand for housing falls, prices are not the only margin for adjustment; sales volumes also may slow, and time on the market may increase.This implies that recorded house prices may not be as representative of actual housing value ...
PPT
... • Investment activity had fallen by more than 15% since late 2008 about 1.5 times more than in other advanced regions • Private consumption had also declined at a faster pace than in ...
... • Investment activity had fallen by more than 15% since late 2008 about 1.5 times more than in other advanced regions • Private consumption had also declined at a faster pace than in ...
japan`s lost decade
... has increased the fiscal deficit significantly. It is exactly this that makes some conservative economists think that these programs might not be entirely helpful in restoring economic prosperity. They are not worried that this will give rise to deflationary pressure as witnessed in Japan but they a ...
... has increased the fiscal deficit significantly. It is exactly this that makes some conservative economists think that these programs might not be entirely helpful in restoring economic prosperity. They are not worried that this will give rise to deflationary pressure as witnessed in Japan but they a ...
Last day to sign up for AP Exam
... 2. Increase in AD during a recession puts no pressure on prices ...
... 2. Increase in AD during a recession puts no pressure on prices ...
Inflationary and Recessionary Gaps
... With the Classical / Monetarist / Neo-Classical Model long run equilibrium is as follows: LRAS ...
... With the Classical / Monetarist / Neo-Classical Model long run equilibrium is as follows: LRAS ...
Remarks
... resource allocation and paves the way for bursting of the bubble; the extra liquidity cannot be withdrawn easily under political pressure, and it might end up with ...
... resource allocation and paves the way for bursting of the bubble; the extra liquidity cannot be withdrawn easily under political pressure, and it might end up with ...
FedViews
... dollar, have contributed to keeping inflation low. Based on the headline PCE inflation measure, overall prices fell 2% at an annual rate in November. The core inflation measure, which excludes the volatile food and energy prices, indicates that prices were essentially flat. We expect future headline ...
... dollar, have contributed to keeping inflation low. Based on the headline PCE inflation measure, overall prices fell 2% at an annual rate in November. The core inflation measure, which excludes the volatile food and energy prices, indicates that prices were essentially flat. We expect future headline ...
Chapter 10
... fluctuations happen … • … and what can be done to stabilize the economy—as far as possible—when fluctuations occur ...
... fluctuations happen … • … and what can be done to stabilize the economy—as far as possible—when fluctuations occur ...
No: 2009-12 31 March 2009 SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING
... and the changes in oil and other commodity prices continued to help bring inflation down and curb short-term exchange rate pass-through. 2. Energy prices dropped by 0.82 percent in February, and annual inflation in this subgroup eased to 13.74 percent, chiefly owing to falling natural gas and solid ...
... and the changes in oil and other commodity prices continued to help bring inflation down and curb short-term exchange rate pass-through. 2. Energy prices dropped by 0.82 percent in February, and annual inflation in this subgroup eased to 13.74 percent, chiefly owing to falling natural gas and solid ...
The Bursting of the Asian Housing Bubble*
... This has been most evident in Hong Kong, where house prices have more than doubled since early 2009. In 2012, when global residential real estate prices increased by around 4 per cent, prices in Hong Kong rose by 24 per cent. It is now the most expensive place on earth, with property prices signific ...
... This has been most evident in Hong Kong, where house prices have more than doubled since early 2009. In 2012, when global residential real estate prices increased by around 4 per cent, prices in Hong Kong rose by 24 per cent. It is now the most expensive place on earth, with property prices signific ...
Price Stickiness - Personal.psu.edu
... ship into port. If fact, the Keynesians go one step farther and argue that it is the obligation or duty of policymakers to pursue full employment and stable prices, many times referred to as a dual mandate. Click Here for more. So why are prices sticky? The first observation is that we need to note ...
... ship into port. If fact, the Keynesians go one step farther and argue that it is the obligation or duty of policymakers to pursue full employment and stable prices, many times referred to as a dual mandate. Click Here for more. So why are prices sticky? The first observation is that we need to note ...
Macroeconomic Stabilization via Fiscal Policy? Narayana Kocherlakota University of Rochester April 1, 2016
... • Issue: current outcomes are highly sensitive to shocks to expectations about LR. – Purely real models ignore this issue. – BUT: sensitivity is nearly infinite for models in which prices are nearly fully flexible. ...
... • Issue: current outcomes are highly sensitive to shocks to expectations about LR. – Purely real models ignore this issue. – BUT: sensitivity is nearly infinite for models in which prices are nearly fully flexible. ...
Asset Prices and Monetary Policy
... omission is not seen as a problem, quite the opposite. Monetary policy can only control the development of goods prices over the medium to long term. But, in times of large movements of assets prices, the debate always starts on whether this concentration of monetary policy on consumer prices alone ...
... omission is not seen as a problem, quite the opposite. Monetary policy can only control the development of goods prices over the medium to long term. But, in times of large movements of assets prices, the debate always starts on whether this concentration of monetary policy on consumer prices alone ...
Information Constraints as Micro-foundations for Nominal Rigidity
... Inflation picks up a few months after interest rates are cut by a central bank Decrease in consumption tax often doesn’t translate in immediate decrease of prices Input cost hikes do not have rapid effects ...
... Inflation picks up a few months after interest rates are cut by a central bank Decrease in consumption tax often doesn’t translate in immediate decrease of prices Input cost hikes do not have rapid effects ...
HKMA column 265 - Hong Kong Monetary Authority
... We have made use of some of the estimates in these studies as input for assessing the possible impact on Hong Kong. The doubling of oil prices from January 2002 to May 2004, assuming conservatively that the current higher level is sustained, could reduce the level of GDP in real terms by around 1% r ...
... We have made use of some of the estimates in these studies as input for assessing the possible impact on Hong Kong. The doubling of oil prices from January 2002 to May 2004, assuming conservatively that the current higher level is sustained, could reduce the level of GDP in real terms by around 1% r ...
Asset Price Volatility and Monetary Policy
... assumption that the economy is subject to a range of different types of shocks and that the central bank is not able to identify these shocks perfectly. To presume otherwise, that the central bank knows exactly when a bubble arises, is not sensible in our view. Although the policy evaluation approac ...
... assumption that the economy is subject to a range of different types of shocks and that the central bank is not able to identify these shocks perfectly. To presume otherwise, that the central bank knows exactly when a bubble arises, is not sensible in our view. Although the policy evaluation approac ...
What makes DFW a Competitive Grocery Market?
... Yet another new chain is popping up in DFW. On Friday, California based Trader Joe's will open in Fort Worth and add its name to the long list of established stores already in the metroplex. So what makes DFW so competitive? ...
... Yet another new chain is popping up in DFW. On Friday, California based Trader Joe's will open in Fort Worth and add its name to the long list of established stores already in the metroplex. So what makes DFW so competitive? ...
Asset Prices: What can or should Monetary Policy do XXXXX?
... • So, one thing EMEs could do is to float as much as possible • Problem # 1: Adverse effects on tradable sectors – Another instrument is required: Countercyclical Fiscal Policy? Too inflexible in some countries? – Capital controls? Effective? Distorting? ...
... • So, one thing EMEs could do is to float as much as possible • Problem # 1: Adverse effects on tradable sectors – Another instrument is required: Countercyclical Fiscal Policy? Too inflexible in some countries? – Capital controls? Effective? Distorting? ...