Money Supply, Interest Rate, Liquidity and Share Prices
... corporate stock are responsive to changes in their money balances, then the returns on corporate stock will be affected. Thus, stock prices will be responsive to movements in money supply with a negative coefficient through this channel. Despite its prominent role in conventional theories of the mon ...
... corporate stock are responsive to changes in their money balances, then the returns on corporate stock will be affected. Thus, stock prices will be responsive to movements in money supply with a negative coefficient through this channel. Despite its prominent role in conventional theories of the mon ...
Should the Central Bank Be Concerned About Housing Prices?
... lagged nominal interest rate, non-housing goods price inflation, rental price inflation, and detrended output. Since both the goods prices and the rental prices are sticky, cyclical fluctuations in the relative price of housing services are inefficient. Thus, optimal monetary policy faces a trade-off betw ...
... lagged nominal interest rate, non-housing goods price inflation, rental price inflation, and detrended output. Since both the goods prices and the rental prices are sticky, cyclical fluctuations in the relative price of housing services are inefficient. Thus, optimal monetary policy faces a trade-off betw ...
Mr. Mayer AP Macroeconomics
... purchase effects that explain AD’s downward slope Δ in C, IG, G, and/or XN cause Δ in GDPR because they Δ AD. Increase in AD = AD Decrease in AD = AD ...
... purchase effects that explain AD’s downward slope Δ in C, IG, G, and/or XN cause Δ in GDPR because they Δ AD. Increase in AD = AD Decrease in AD = AD ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY POLICY WITH COLLATERALIZED
... the last decade. In addition, the two facts are usually perceived as mutually reinforcing. The rise in house prices has induced households to increasingly extract equity from their accumulated assets thereby encouraging further borrowing against the realized capital gains. Dynamics of this sort have ...
... the last decade. In addition, the two facts are usually perceived as mutually reinforcing. The rise in house prices has induced households to increasingly extract equity from their accumulated assets thereby encouraging further borrowing against the realized capital gains. Dynamics of this sort have ...
sticky price models and durable goods
... behavior can be so strong as to result in an equilibrium in which money has no influence on aggregate production or employment at all. Why are durables so important? Durables have interesting and unique properties that flow directly from their longevity. The stock– and thus the associated shadow va ...
... behavior can be so strong as to result in an equilibrium in which money has no influence on aggregate production or employment at all. Why are durables so important? Durables have interesting and unique properties that flow directly from their longevity. The stock– and thus the associated shadow va ...
What causes house price bubble in an emerging economy
... However, housing prices could have one-way causality relationship with monetary factors. Low interest rate (cost of borrowing) may lead to surge in housing prices when it is complemented with abundant credit availability. There may not exist a feedback relationship from house price to cost of credit ...
... However, housing prices could have one-way causality relationship with monetary factors. Low interest rate (cost of borrowing) may lead to surge in housing prices when it is complemented with abundant credit availability. There may not exist a feedback relationship from house price to cost of credit ...
Monetary policy, asset prices and actuarial practice
... stream to financial markets which should be taken into account when investment decisions are made. Modelling for management purposes to determine investment strategy, funding levels, economic capital and so on can incorporate a variety of underlying assumptions and these should include assumptions a ...
... stream to financial markets which should be taken into account when investment decisions are made. Modelling for management purposes to determine investment strategy, funding levels, economic capital and so on can incorporate a variety of underlying assumptions and these should include assumptions a ...
commodity price fluctuations and macro - unu-wider
... have a dampening effect on industrial activity, in addition to indirect price and wage effects. For example, commodity price inflation itself can have a deflationary effect on the effective demand for industrial goods (in real terms), partly because the rise in the profits of producers in the primar ...
... have a dampening effect on industrial activity, in addition to indirect price and wage effects. For example, commodity price inflation itself can have a deflationary effect on the effective demand for industrial goods (in real terms), partly because the rise in the profits of producers in the primar ...
Optimal Monetary Policy in a Currency Area
... fiscal authorities can be assigned to different regions. The simplest form of a currency area that is of interest for our analysis is a two-region area with a single central bank and two fiscal authorities. Each fiscal authority has sovereignty over only one region. The two regions are labeled, H and ...
... fiscal authorities can be assigned to different regions. The simplest form of a currency area that is of interest for our analysis is a two-region area with a single central bank and two fiscal authorities. Each fiscal authority has sovereignty over only one region. The two regions are labeled, H and ...
Target for inclusion in LEP Strategy: Calculations Gross Value
... Definitiions - GDP and GVA i) What is GDP? The Gross Domestic Product is the market value of all final goods and services produced within a geographical entity within a given period of time. It is: - "Gross" because the depreciation of the value of capital used in the production of goods and service ...
... Definitiions - GDP and GVA i) What is GDP? The Gross Domestic Product is the market value of all final goods and services produced within a geographical entity within a given period of time. It is: - "Gross" because the depreciation of the value of capital used in the production of goods and service ...
NBER WORKING PAPER SERIES DO FLEXIBLE DURABLE GOODS PRICES Robert Barsky
... degree of durability and the degree of price flexibility in a sector. In particular, we ask whether sticky price models can have sectors with flexible prices and still match the main features of the data. We analyze a model with both sticky price and flexible price sectors, and with both durable and ...
... degree of durability and the degree of price flexibility in a sector. In particular, we ask whether sticky price models can have sectors with flexible prices and still match the main features of the data. We analyze a model with both sticky price and flexible price sectors, and with both durable and ...
An Assessment of Price and Wage Setting in South Africa and
... literature as studies on price setting, inflation, monetary economics and monetary policy in South Africa have generally pursued a different set of questions from those under discussion in this research proposal. Rather than focusing attention on price setting behaviour in the South African economy, ...
... literature as studies on price setting, inflation, monetary economics and monetary policy in South Africa have generally pursued a different set of questions from those under discussion in this research proposal. Rather than focusing attention on price setting behaviour in the South African economy, ...
Demand from China: Fact or Fiction?
... increasing production of goods, with the result that China now produces and supplies more commodities than most other countries. It consumes mostly its own supply of commodities, not the remaining world supply. It is, in fact, a net contributor to world commodity supply, not a net taker. As a result ...
... increasing production of goods, with the result that China now produces and supplies more commodities than most other countries. It consumes mostly its own supply of commodities, not the remaining world supply. It is, in fact, a net contributor to world commodity supply, not a net taker. As a result ...
Package `pwt`
... rgdpch real GDP per capita (chain-weighted index, US dollars in 1996 prices). rgdpeqa real GDP per equivalent adult (chain-weighted index, US dollars in 1996 prices). rgdpwok real GDP per worker (chain-weighted index, US dollars in 1996 prices). rgdptt real gross domestic income (rgdpl adjusted for ...
... rgdpch real GDP per capita (chain-weighted index, US dollars in 1996 prices). rgdpeqa real GDP per equivalent adult (chain-weighted index, US dollars in 1996 prices). rgdpwok real GDP per worker (chain-weighted index, US dollars in 1996 prices). rgdptt real gross domestic income (rgdpl adjusted for ...
Liquid Capital and Market Liquidity
... attention, and numerous models, have focused on the likely effects of increases or decreases in the supply of liquid capital on asset markets. The model directly addresses the connection between liquidity – in real terms – and both volatility and expected returns. In particular, I show that, because ...
... attention, and numerous models, have focused on the likely effects of increases or decreases in the supply of liquid capital on asset markets. The model directly addresses the connection between liquidity – in real terms – and both volatility and expected returns. In particular, I show that, because ...
The Outlook for Real Estate Markets in Japan
... Japan’s investible commercial real estate stock is estimated to be around US$1.8 trillion6, making it the largest in Asia and the second largest in the world. The sheer size of the Japanese real estate market accentuates the significance of Japan in the regional and global portfolio. The major parti ...
... Japan’s investible commercial real estate stock is estimated to be around US$1.8 trillion6, making it the largest in Asia and the second largest in the world. The sheer size of the Japanese real estate market accentuates the significance of Japan in the regional and global portfolio. The major parti ...
An Aggregative Theory for a Closed Economy
... between money and a narrow range of financial assets called bonds. Metzler's financial asset is a composite representing claims to real capital. Bonds are perfect substitutes for such claims, and interest rates are the yield per period of a unit of real capital. In Metzler's analysis real resources ...
... between money and a narrow range of financial assets called bonds. Metzler's financial asset is a composite representing claims to real capital. Bonds are perfect substitutes for such claims, and interest rates are the yield per period of a unit of real capital. In Metzler's analysis real resources ...
Commodity prices and their role in assessing euro area growth and
... truly secular trends. After recovering from the lows reached following the 2008 financial crisis, commodity prices broadly stabilised again amid some volatility since mid-2010. Commodity prices have also become more volatile over the past decade (see Chart 2). Approximating volatility by rolling sta ...
... truly secular trends. After recovering from the lows reached following the 2008 financial crisis, commodity prices broadly stabilised again amid some volatility since mid-2010. Commodity prices have also become more volatile over the past decade (see Chart 2). Approximating volatility by rolling sta ...
PDF
... is specified as an increasing function of the relative price between agricultural and manufactured prices, p, - p,, and as a decreasing function of the real interest rate, i -p,, while the supply of manufactured products is specified as a decreasing function of the relative price between agricultura ...
... is specified as an increasing function of the relative price between agricultural and manufactured prices, p, - p,, and as a decreasing function of the real interest rate, i -p,, while the supply of manufactured products is specified as a decreasing function of the relative price between agricultura ...
Short-Run Effects of Money When Some Prices
... of period t. Real variables dated at t +1 and later are unaffected by this change, but real variables at date t are affected because PX,t is predetermined. First consider the excess-supply case. Suppose the money supply falls permanently by 1 percent at date t, with PX,t fixed for one period. When P ...
... of period t. Real variables dated at t +1 and later are unaffected by this change, but real variables at date t are affected because PX,t is predetermined. First consider the excess-supply case. Suppose the money supply falls permanently by 1 percent at date t, with PX,t fixed for one period. When P ...
CEN TER - Coldwell Banker Imobiliare
... However, given the current inflationary pressures (excluding transitory VAT effects, as discussed above) and the likely overheating of the Romanian economy (positive and rapidly widening output gap, relatively low potential growth due to low investment and weak progress in structural reforms), we ca ...
... However, given the current inflationary pressures (excluding transitory VAT effects, as discussed above) and the likely overheating of the Romanian economy (positive and rapidly widening output gap, relatively low potential growth due to low investment and weak progress in structural reforms), we ca ...
Housing markets and the economy: the assessment
... China, and India are quite different from Anglo economies in the role of housing. Section V discusses these issues and summarizes recent evidence on the size of the housing collateral effect and how it may have shifted with credit-market liberalization. The significance of credit markets and the pot ...
... China, and India are quite different from Anglo economies in the role of housing. Section V discusses these issues and summarizes recent evidence on the size of the housing collateral effect and how it may have shifted with credit-market liberalization. The significance of credit markets and the pot ...
Gasoline price as social phenomenon
... of the resources takes into the budget a monetized part of benefits from the use of hydrocarbons. Each part of these benefits is monetized, and which is not monetized depends on the objectives pursued by the country government. Any government tries to strengthen a loyalty of its citizens. For this p ...
... of the resources takes into the budget a monetized part of benefits from the use of hydrocarbons. Each part of these benefits is monetized, and which is not monetized depends on the objectives pursued by the country government. Any government tries to strengthen a loyalty of its citizens. For this p ...
Kiss Me Deadly: From Finnish Great Depression to Great Recession
... again only in 4Q 1996. Recession lasted for four years. It was preceded by major credit and asset price booms which came to an abrupt end in late 1989. The episode also witnessed a collapse of the Finnish–Soviet trade in 1991, a currency devaluation and a full-fledged banking crisis. In the same tim ...
... again only in 4Q 1996. Recession lasted for four years. It was preceded by major credit and asset price booms which came to an abrupt end in late 1989. The episode also witnessed a collapse of the Finnish–Soviet trade in 1991, a currency devaluation and a full-fledged banking crisis. In the same tim ...