Monetary Policy Functions and Transmission Mechanisms: An
... selection and moral hazard that constrain credit provision. It is argued that a monetary expansion alleviates adverse selection and moral hazard by increasing firms net worth (through higher equity prices), reducing perceived loan risks (through lower real interest rates), improving firms cash flo ...
... selection and moral hazard that constrain credit provision. It is argued that a monetary expansion alleviates adverse selection and moral hazard by increasing firms net worth (through higher equity prices), reducing perceived loan risks (through lower real interest rates), improving firms cash flo ...
An Assessment of Price and Wage Setting in South Africa and
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
The Impact of Skewness and Fat Tails on the Asset Allocation Decision
... inputs—returns, standard deviations, and correlations—for MVO is well known, a problem that can be substantially more difficult with more advanced techniques. The future is hard to predict accurately, especially in detail. Asset class return distributions are not normally distributed, but the typica ...
... inputs—returns, standard deviations, and correlations—for MVO is well known, a problem that can be substantially more difficult with more advanced techniques. The future is hard to predict accurately, especially in detail. Asset class return distributions are not normally distributed, but the typica ...
Overborrowing and Systemic Externalities in the Business Cycle
... incidence of arriving at a Sudden Stop. The fact that many stabilization plans have fallen during recent Sudden Stops may lend support to prudential regulation that help prevent the economy from exposing to these episodes. Our paper provides a quantitative framework to analyze policies that have thi ...
... incidence of arriving at a Sudden Stop. The fact that many stabilization plans have fallen during recent Sudden Stops may lend support to prudential regulation that help prevent the economy from exposing to these episodes. Our paper provides a quantitative framework to analyze policies that have thi ...
NBER WORKING PAPER SERIES INTERNATIONAL EFFECTS ON THE U.S. CAPITAL MARKET
... casual observation, to be sufficiently large that the possibility of a significant ...
... casual observation, to be sufficiently large that the possibility of a significant ...
(e) Distinguish between price elasticity of demand
... In class under test conditions Task weighting 10% of the school mark for this pair of units __________________________________________________________________________________ Read the following extract and then answer the accompanying questions. ...
... In class under test conditions Task weighting 10% of the school mark for this pair of units __________________________________________________________________________________ Read the following extract and then answer the accompanying questions. ...
ch28
... aggregate supply The total supply of all goods and services in an economy. The Aggregate Supply Curve: A Warning aggregate supply (AS) curve A graph that shows the relationship between the aggregate quantity of output supplied by all firms in an economy and the overall price level. An “aggregate sup ...
... aggregate supply The total supply of all goods and services in an economy. The Aggregate Supply Curve: A Warning aggregate supply (AS) curve A graph that shows the relationship between the aggregate quantity of output supplied by all firms in an economy and the overall price level. An “aggregate sup ...
ATAR Year 11 sample assessment tasks - SCSA
... In class under test conditions Task weighting 10% of the school mark for this pair of units __________________________________________________________________________________ Read the following extract and then answer the accompanying questions. ...
... In class under test conditions Task weighting 10% of the school mark for this pair of units __________________________________________________________________________________ Read the following extract and then answer the accompanying questions. ...
Belief Heterogeneity, Collateral Constraint, and Asset Prices with a
... only determined by the aggregate shocks as in the complete markets case, but also by the evolution of the wealth distribution across agents. This also implies that asset prices are history-dependent as the realizations of past aggregate shocks a¤ect the current wealth distribution. The additional de ...
... only determined by the aggregate shocks as in the complete markets case, but also by the evolution of the wealth distribution across agents. This also implies that asset prices are history-dependent as the realizations of past aggregate shocks a¤ect the current wealth distribution. The additional de ...
NBER WORKING PAPER SERIES ASSET LIQUIDITY AND INTERNATIONAL PORTFOLIO CHOICE Athanasios Geromichalos
... domestic assets in a portfolio-choice model. Their mechanism relies on the existence of heterogeneous per-unit trading costs and homogenous fixed entry costs. While this mechanism may be in part responsible for the observations in the data, we argue that there is considerable room for an explanation ...
... domestic assets in a portfolio-choice model. Their mechanism relies on the existence of heterogeneous per-unit trading costs and homogenous fixed entry costs. While this mechanism may be in part responsible for the observations in the data, we argue that there is considerable room for an explanation ...
NBER WORKING PAPER SERIES SHIFTS IN THE NINETEENTH-CENTURY PHILLIPS CURVE RELATIONSHIP
... and thereby should have forced the price—surprise coefficient downward. Other factors which may have offset the influence of these improvements in information technology on the price—surprise coefficient include the reduced general price level variability due to the gold ...
... and thereby should have forced the price—surprise coefficient downward. Other factors which may have offset the influence of these improvements in information technology on the price—surprise coefficient include the reduced general price level variability due to the gold ...
Minutes of the Federal Open Market Committee June 18–19, 2013
... Developments in Financial Markets and the Federal Reserve’s Balance Sheet The Manager of the SOMA reported on developments in domestic and foreign financial markets as well as the System open market operations during the period since the Federal Open Market Committee (FOMC) met on April 30–May 1, 20 ...
... Developments in Financial Markets and the Federal Reserve’s Balance Sheet The Manager of the SOMA reported on developments in domestic and foreign financial markets as well as the System open market operations during the period since the Federal Open Market Committee (FOMC) met on April 30–May 1, 20 ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... are involved, but its wide acceptance reflects the recognition of important regularities of long standing. The observed fluctuations vary greatly in amplitude and scope as well as duration, yet they also have much in common. First, they are national, indeed often international, in scope, showing up ...
... are involved, but its wide acceptance reflects the recognition of important regularities of long standing. The observed fluctuations vary greatly in amplitude and scope as well as duration, yet they also have much in common. First, they are national, indeed often international, in scope, showing up ...
Introduction
... World War II most countries have witnessed only periods of disinflation but not deflation. This can be treated as an implicit evidence of the fact that most central banks target a somewhat positive long-term rate of inflation. In theory there is no single leading point of view on this problem. The f ...
... World War II most countries have witnessed only periods of disinflation but not deflation. This can be treated as an implicit evidence of the fact that most central banks target a somewhat positive long-term rate of inflation. In theory there is no single leading point of view on this problem. The f ...
Business Cycles and the Bible
... and want to hold fewer risky assets such as stocks, real estate, and commodities. People will attempt to sell these assets and hold more of their wealth as money, a safe asset.12 This rebalancing of their portfolios away from risky assets toward safer ones will be complemented by a reduction on goo ...
... and want to hold fewer risky assets such as stocks, real estate, and commodities. People will attempt to sell these assets and hold more of their wealth as money, a safe asset.12 This rebalancing of their portfolios away from risky assets toward safer ones will be complemented by a reduction on goo ...
CHAPTER 16: Monetary Policy
... Why Did Homebuilder Toll Brothers, Inc. Prosper during the 2001 Recession? ...
... Why Did Homebuilder Toll Brothers, Inc. Prosper during the 2001 Recession? ...
Structural causes of the global financial crisis
... virtually all important financial institutions—including commercial and investment banks, hedge and private equity funds, insurance companies and mutual and pension funds—to take excessive risk when financial markets are buoyant.1 For example, the growth of mortgage securitisation generated fee inco ...
... virtually all important financial institutions—including commercial and investment banks, hedge and private equity funds, insurance companies and mutual and pension funds—to take excessive risk when financial markets are buoyant.1 For example, the growth of mortgage securitisation generated fee inco ...
Working Paper, No. 121 - Wirtschaftswissenschaftliche Fakultät der
... discretionary stimulus function, without violating consumer inflation based monetary policy rules. During a period which was dubbed great moderation (Bernanke 2004) central banks could keep interest rates low for long during booms, as the impact of monetary expansion on consumer price inflation was ...
... discretionary stimulus function, without violating consumer inflation based monetary policy rules. During a period which was dubbed great moderation (Bernanke 2004) central banks could keep interest rates low for long during booms, as the impact of monetary expansion on consumer price inflation was ...
sample only THE CPAP STUDY GUIDE TO VCE
... TEST YOURSELF : 50 MULTIPLE CHOICE QUESTIONS – AREA OF STUDY 1 ..................................................................... 41 UNIT 3: MINI EXAM NO. 1 ........................................................................................................................................... ...
... TEST YOURSELF : 50 MULTIPLE CHOICE QUESTIONS – AREA OF STUDY 1 ..................................................................... 41 UNIT 3: MINI EXAM NO. 1 ........................................................................................................................................... ...
A Modest Proposal for Reforming the Undergraduate
... This paper makes the case for a detailed and systematic treatment of the so-called ‘balance mechanics’ and the accounting relationships that form the basis for a better understanding of national income accounting but can also fruitfully be used for evaluating economic models and economic policy prop ...
... This paper makes the case for a detailed and systematic treatment of the so-called ‘balance mechanics’ and the accounting relationships that form the basis for a better understanding of national income accounting but can also fruitfully be used for evaluating economic models and economic policy prop ...
Equation (6.2) gives so
... So dP = g ′dY , which could have obtained more easily from equation (6.12). Ordinarily this increase in the price level would have real effects since it reduces the real money supply and should therefore raise interest rates. But the Fed has ensured that interest rates do not changes, so the inflati ...
... So dP = g ′dY , which could have obtained more easily from equation (6.12). Ordinarily this increase in the price level would have real effects since it reduces the real money supply and should therefore raise interest rates. But the Fed has ensured that interest rates do not changes, so the inflati ...
Nonneutrality of Money in Classical Monetary Thought
... The vertical aggregate supply curve provides an adequate capsulization of the classical view. . . . Changes in the level of the stock of money would change the general level of prices, but, because money was thought to be neutral . . . relative prices and the levels of employment and output would no ...
... The vertical aggregate supply curve provides an adequate capsulization of the classical view. . . . Changes in the level of the stock of money would change the general level of prices, but, because money was thought to be neutral . . . relative prices and the levels of employment and output would no ...
NBER WORKING PAPER SERIES THE OPEN ECONOMY: IMPLICATIONS FOR FISCAL Stanley Fischer
... reductions in imports of semi—finished goods and exports of agricultural goods following the tariff, suggesting that the fact that bank failures in 1930 and 1931 were concentrated in agricultural regions was in part a consequence of the ...
... reductions in imports of semi—finished goods and exports of agricultural goods following the tariff, suggesting that the fact that bank failures in 1930 and 1931 were concentrated in agricultural regions was in part a consequence of the ...
Demand, ,Supply and Equilibrium
... Qs = (price, expectations, input prices, prices of other goods, technological change, number of producers) ...
... Qs = (price, expectations, input prices, prices of other goods, technological change, number of producers) ...
Economic bubble
An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have been suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation, or bounded rationality. In such cases, the bubbles may be argued to be rational, where investors at every point fully compensated for the possibility that the bubble might collapse by higher returns. These approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. It has also been suggested that bubbles might ultimately be caused by processes of price coordination or emerging social norms.