NBER WORKING PAPER SERIES Bennett T. McCallum
... Now let us consider the one other path of bt that will, with g – tx constant, satisfy the TC (11) as well as (9), (10), and (14). It is that bt+1 = 0 for all t = 1, 2 ,…. Clearly, (11) will be satisfied with Bt+1 = 0 and in that case places no constraint on Pt values. Thus these are free to obey pt ...
... Now let us consider the one other path of bt that will, with g – tx constant, satisfy the TC (11) as well as (9), (10), and (14). It is that bt+1 = 0 for all t = 1, 2 ,…. Clearly, (11) will be satisfied with Bt+1 = 0 and in that case places no constraint on Pt values. Thus these are free to obey pt ...
APGov_Ch18
... performance is measured. An Introduction to Economic Policy • The framers did not concentrate economic policy in any one branch. • By creating a national government of limited powers and providing constitutional guarantees to protect property from excessive regulation, the framers succeeded in prote ...
... performance is measured. An Introduction to Economic Policy • The framers did not concentrate economic policy in any one branch. • By creating a national government of limited powers and providing constitutional guarantees to protect property from excessive regulation, the framers succeeded in prote ...
of Monetary Policy Tactics and Targets
... money supply. If one adheres to that kind of policy long enough, interest rates and credit rationing will eventually offset the original stimulus unless it reverses itself. In a stable, dynamic system, a "lean-against-the-wind" policy will moderate fluctuations, provided one reverses policy when the ...
... money supply. If one adheres to that kind of policy long enough, interest rates and credit rationing will eventually offset the original stimulus unless it reverses itself. In a stable, dynamic system, a "lean-against-the-wind" policy will moderate fluctuations, provided one reverses policy when the ...
Macroprudential Policies and Financial Stability
... adopt a general instability measure that could be interpreted broadly as a monetary aggregate, asset prices, house prices, excessive public or private debt, etc. While the details of the model will be given later, let us note that there will be no additional policy instrument to achieve the financia ...
... adopt a general instability measure that could be interpreted broadly as a monetary aggregate, asset prices, house prices, excessive public or private debt, etc. While the details of the model will be given later, let us note that there will be no additional policy instrument to achieve the financia ...
52 pages - World bank documents
... useful. This is so since this yas the first year in which the economy can be said to have recoveredfrom the heterodox shock of July 1985 and adjusted to the low inflationenvironment. A related topic with which we shall be concerned is the evolutionof the disinflationarypolicies in the course of the ...
... useful. This is so since this yas the first year in which the economy can be said to have recoveredfrom the heterodox shock of July 1985 and adjusted to the low inflationenvironment. A related topic with which we shall be concerned is the evolutionof the disinflationarypolicies in the course of the ...
the ecb: independence, accountability and transparency
... conducting monetary policy to independent central banks (time inconsistency reasons, etc). This broad consensus – both with regard to the role of monetary policy and the appropriate institutional arrangements for its conduct – have been encapsulated in the design of the ECB. ...
... conducting monetary policy to independent central banks (time inconsistency reasons, etc). This broad consensus – both with regard to the role of monetary policy and the appropriate institutional arrangements for its conduct – have been encapsulated in the design of the ECB. ...
Monetary Policy Management in Nigeria in the Context of Uncertainty
... policy not only in Nigeria but every where else. Central banks generally continue to seek better ways of dealing with them. Major approaches are research and close monitoring of key sources of uncertainty like data generating institutions and the treasury. Judgment is key in monetary policy manageme ...
... policy not only in Nigeria but every where else. Central banks generally continue to seek better ways of dealing with them. Major approaches are research and close monitoring of key sources of uncertainty like data generating institutions and the treasury. Judgment is key in monetary policy manageme ...
Business Cycle (De)Synchronization in the Aftermath of the Global
... benefit of participating into a common currency area exceeds the cost of losing national autonomous monetary policy only if business cycles co-move closely across countries. In case business cycles diverge, some countries may find it hard to endure a common currency area while experiencing volatile ...
... benefit of participating into a common currency area exceeds the cost of losing national autonomous monetary policy only if business cycles co-move closely across countries. In case business cycles diverge, some countries may find it hard to endure a common currency area while experiencing volatile ...
SERIES
... setting, and rational expectations have been difficult to analyze until recently), the more general policy implications are exploited in the rest of the paper. ...
... setting, and rational expectations have been difficult to analyze until recently), the more general policy implications are exploited in the rest of the paper. ...
The Euro Area`s Exchange Rate Policy and the Experience with
... three categories of countries: EU countries which do not take part in ERM-II, EU countries which are part of ERM-II, and non-EU countries. First, consider EU countries which do not take part in ERM-II. As EU Member States, these countries are subject to the Treaty. And the Treaty is crystal clear: e ...
... three categories of countries: EU countries which do not take part in ERM-II, EU countries which are part of ERM-II, and non-EU countries. First, consider EU countries which do not take part in ERM-II. As EU Member States, these countries are subject to the Treaty. And the Treaty is crystal clear: e ...
Firm Debt Structure and Firm Size
... micro analysis by first developing a simple, a priori theory of how firms determine the term structure of their debt. Kashyap, Stein, and Wilcox (1993) and others have a simple theory on the optimal source structure or composition of firm debt. The second difference has to do with the type of data. ...
... micro analysis by first developing a simple, a priori theory of how firms determine the term structure of their debt. Kashyap, Stein, and Wilcox (1993) and others have a simple theory on the optimal source structure or composition of firm debt. The second difference has to do with the type of data. ...
Fed Policy: Good Intentions, Risky Consequences Charles I. Plosser
... under stress. These programs supported primary dealers, the commercial paper market, and money market fund investors. The Fed also gave support to specific individual institutions, including Bear Stearns and AIG, to avert what could have been disorderly failures. After reducing its policy rate, the ...
... under stress. These programs supported primary dealers, the commercial paper market, and money market fund investors. The Fed also gave support to specific individual institutions, including Bear Stearns and AIG, to avert what could have been disorderly failures. After reducing its policy rate, the ...
Chapters 20
... with incomes above $150,000 pay about 60 percent of all taxes. The deadline for filing income tax returns each year is April 15. Nearly everyone with taxable income in the preceding calendar year must file income tax returns by that date. During the year, employers withhold a certain amount of money ...
... with incomes above $150,000 pay about 60 percent of all taxes. The deadline for filing income tax returns each year is April 15. Nearly everyone with taxable income in the preceding calendar year must file income tax returns by that date. During the year, employers withhold a certain amount of money ...
Regional Currency Arrangements: Insights from Europe
... certainly impossible to derive straightforward “laws” governing regional integration in the global political economy. In Europe, political cooperation and exchange rate stability have been regarded as key elements in preventing beggar-thy-neighbor policies through competitive devaluations, and thus ...
... certainly impossible to derive straightforward “laws” governing regional integration in the global political economy. In Europe, political cooperation and exchange rate stability have been regarded as key elements in preventing beggar-thy-neighbor policies through competitive devaluations, and thus ...
AD-AS Short Run - The Economics Network
... r (e / f )Y (1/ f )M / P The LM curve boils down to… ...
... r (e / f )Y (1/ f )M / P The LM curve boils down to… ...
Paper Money - Sims page data
... restore its balance sheet. But seignorage revenue depends on the inflation rate, generally increasing with the rate of inflation except at extremely high inflation rates. A central bank with a severely enough impaired balance sheet may not be able to pin down the price level without treasury assista ...
... restore its balance sheet. But seignorage revenue depends on the inflation rate, generally increasing with the rate of inflation except at extremely high inflation rates. A central bank with a severely enough impaired balance sheet may not be able to pin down the price level without treasury assista ...
Overcoming the Fear of Free Falling: Monetary Policy
... crisis in Latin America 1994-95, as well as from the more recent experience of Brazil, the Czech Republic, Hong Kong and Russia, all of which have fended off attacks on their currencies in recent months with a timely and forceful tightening of interest rates along with other supporting policy measur ...
... crisis in Latin America 1994-95, as well as from the more recent experience of Brazil, the Czech Republic, Hong Kong and Russia, all of which have fended off attacks on their currencies in recent months with a timely and forceful tightening of interest rates along with other supporting policy measur ...
NBER WORKING PAPER SERIES OVERCOMING THE FEAR OF FREE FALLING:
... crisis in Latin America 1994-95, as well as from the more recent experience of Brazil, the Czech Republic, Hong Kong and Russia, all of which have fended off attacks on their currencies in recent months with a timely and forceful tightening of interest rates along with other supporting policy measur ...
... crisis in Latin America 1994-95, as well as from the more recent experience of Brazil, the Czech Republic, Hong Kong and Russia, all of which have fended off attacks on their currencies in recent months with a timely and forceful tightening of interest rates along with other supporting policy measur ...
Public debt, discretionary policy, and inflation persistence ∗ Stefan NIEMANN Paul PICHLER
... the appropriate choice of its policy instruments τt , qt , bt+1 , and mt+1 .2 However, the government is subject to a well-known time-inconsistency problem: It would like to use surprise inflation as a means to erode the real value of its nominal debt burden, since this policy resembles a lumpsum tax ...
... the appropriate choice of its policy instruments τt , qt , bt+1 , and mt+1 .2 However, the government is subject to a well-known time-inconsistency problem: It would like to use surprise inflation as a means to erode the real value of its nominal debt burden, since this policy resembles a lumpsum tax ...
NBER WORKING PAPER SERIES RISK ASSET PRICES AND TIME-VARYING Robert Flood
... aodel environment of time-varying risk. ...
... aodel environment of time-varying risk. ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... As real balances were further reduced by inflation in 1974, aggregate demand weakened. This process was then aggravated by the unambiguous monetary policy mistake of permitting a sharp decleration in money growth in the second half of 1974. Between 1974:II and 1975:I, M2 growth averaged 6.2% annual ...
... As real balances were further reduced by inflation in 1974, aggregate demand weakened. This process was then aggravated by the unambiguous monetary policy mistake of permitting a sharp decleration in money growth in the second half of 1974. Between 1974:II and 1975:I, M2 growth averaged 6.2% annual ...
euro area and member states
... The euro area consists of those Member States of the European Union that have adopted the euro as their currency. Today, around 330 million citizens in 16 countries live in the euro area and this number will increase as future enlargements of the euro area continue to spread the benefits of the sing ...
... The euro area consists of those Member States of the European Union that have adopted the euro as their currency. Today, around 330 million citizens in 16 countries live in the euro area and this number will increase as future enlargements of the euro area continue to spread the benefits of the sing ...
Consolidated-Budget Rules and Macroeconomic Stability with
... The problem of equilibrium determinacy where governments implement balanced budget rules has drawn much attention in the past several years. One important issue concerning this literature is that conclusions can be very different, even opposite, if government spending is set so as to balance income ...
... The problem of equilibrium determinacy where governments implement balanced budget rules has drawn much attention in the past several years. One important issue concerning this literature is that conclusions can be very different, even opposite, if government spending is set so as to balance income ...
Carl E.
... A number of authors (Feldstein[l9761, Green and SheshinSki[197fl, inflation can have real effects due ...
... A number of authors (Feldstein[l9761, Green and SheshinSki[197fl, inflation can have real effects due ...
U.S. MACROECONOMIC POLICY AND THIRD WORLD DEBT Introduction Michael Mussa
... size oftheir external debt exceeds a reasonable estimate oftheir debt capacity. The fundamental problem for most debtor countries is that their debt service, which must be paid to avoid default, frequently runs six or eight times the amount ofthe real interest payments that would keep the real value ...
... size oftheir external debt exceeds a reasonable estimate oftheir debt capacity. The fundamental problem for most debtor countries is that their debt service, which must be paid to avoid default, frequently runs six or eight times the amount ofthe real interest payments that would keep the real value ...
Euro Plus Pact
The Euro-Plus Pact (or Euro+ Pact, also initially called the Competitiveness Pact or later the Pact for the Euro), was adopted in March 2011 under EU's Open Method of Coordination, as an intergovernmental agreement between all member states of the European Union (except Croatia, Czech Republic, Hungary, Sweden and UK), in which concrete commitments were made to be working continuously within a new commonly agreed political general framework for the implementation of structural reforms intended to improve competitiveness, employment, financial stability and the fiscal strength of each country. The plan was advocated by the French and German governments as one of many needed political responses to strengthen the EMU in areas which the European sovereign-debt crisis had revealed as being too poorly constructed.The pact was constructed as an attempt to incentivize increased implementation of structural reforms by each participating EU member state, to improve their performance within the four focus areas of the pact, through: (1) A regular bottom-up inter-governmental political dialogue (learning best practices from each other) and (2) A commitment for each state to include reform measures (freely chosen from a broad list of potential policy action responses) in their annual National Reform Programme for those of the areas found in critical need of improvement. In addition, it also featured a commitment to transpose and operationalize one of the Stability and Growth Pact fiscal rules directly into national legislation - to make it more effectively working, and a commitment to perform regular ""structured dialogue"" for enhanced tax policy coordination in EU.In May 2015, the European Political Strategy Centre (in-house think tank of the European Commission) upon its analysis of the latest set of submitted National Reform Programmes, declared the pact was in a dormant state (not being actively used or referred to by the majority of participating states), and recommended it should be revived by moving it from its current intergovernmental state to become an integrated part of the European Semester in the EU framework law. In the latest approved plan for reforming the EMU, this recommendation was adopted with a target for its transposition to take place at the latest in June 2017.