![Essays in Monetary Policy and Banking Babak Mahmoudi](http://s1.studyres.com/store/data/008914880_1-c1434aa2c3408016f0a53795b42e817d-300x300.png)
Essays in Monetary Policy and Banking Babak Mahmoudi
... with a segmented asset market, open-market operations affect the participation decisions of the households and, therefore, have real effects on the distribution of assets and prices in the economy. Numerical exercises show that when the asset market is segmented, the central bank can improve welfare ...
... with a segmented asset market, open-market operations affect the participation decisions of the households and, therefore, have real effects on the distribution of assets and prices in the economy. Numerical exercises show that when the asset market is segmented, the central bank can improve welfare ...
Interpreting recent movements in sterling
... financial crisis in August 2007. It first examines sterling’s depreciation from August 2007 to end-2008 before briefly discussing sterling’s appreciation in 2009. There are important interconnections between the different candidate explanations, which makes it difficult to differentiate between them ...
... financial crisis in August 2007. It first examines sterling’s depreciation from August 2007 to end-2008 before briefly discussing sterling’s appreciation in 2009. There are important interconnections between the different candidate explanations, which makes it difficult to differentiate between them ...
Balance-Sheets: A Financial/Liability Approach
... 13.89 Further, the market value of shares reflects market sentiment about future income streams which may fluctuate with much more volatility than the underlying value of the corporation. Market values thus naturally fluctuate strongly due to external factors and short term supply and demand of capi ...
... 13.89 Further, the market value of shares reflects market sentiment about future income streams which may fluctuate with much more volatility than the underlying value of the corporation. Market values thus naturally fluctuate strongly due to external factors and short term supply and demand of capi ...
The Dynamic Relationship of Stock Indexes on Interbank Money
... The interest rate is a one significant part of Thailand’s economy owing to the Bank of Thailand (BOT) used the interest rate to control the inflation rate and economic growth rate in Thailand. Indeed, the BOT’s actions affect interest rate, the money supply, and all of which have direct and indirect ...
... The interest rate is a one significant part of Thailand’s economy owing to the Bank of Thailand (BOT) used the interest rate to control the inflation rate and economic growth rate in Thailand. Indeed, the BOT’s actions affect interest rate, the money supply, and all of which have direct and indirect ...
Ensuring Financial Stability: Financial Structure and the
... interest rate movements required to mitigate asset price swings must not be so large as to cause economic activity and, in particular, inflation to deviate substantially from their desired levels since, if this were to be the case, the resulting macroeconomic cycles could lead the public to question ...
... interest rate movements required to mitigate asset price swings must not be so large as to cause economic activity and, in particular, inflation to deviate substantially from their desired levels since, if this were to be the case, the resulting macroeconomic cycles could lead the public to question ...
Transmission of Policy Shocks in a Monetary Asset-Pricing
... i.e. fiscal and monetary policy, on such assets. The main questions posed concern the transmission effects of policy shocks, the consequences of government policy for exchange rates and the transmission of inflation to other countries. For this purpose, we describe a two-country world with cash-in-a ...
... i.e. fiscal and monetary policy, on such assets. The main questions posed concern the transmission effects of policy shocks, the consequences of government policy for exchange rates and the transmission of inflation to other countries. For this purpose, we describe a two-country world with cash-in-a ...
The IS Curve - Meltem INCE YENILMEZ
... The demand for money also depends negatively on the cost of holding money, the interest rate (r). If r Md as people switch out of money into interest-bearing savings accounts or other financial assets Algebraically, the general linear form of Md is: ...
... The demand for money also depends negatively on the cost of holding money, the interest rate (r). If r Md as people switch out of money into interest-bearing savings accounts or other financial assets Algebraically, the general linear form of Md is: ...
The High Sensitivity of Economic Activity to Financial Frictions
... financed at market rates by making a deal with the existing debtholders, such deals are almost impossible to make in practice because of holdout. Overhang becomes a more serious source of friction in financial crises. Kiyotaki and Moore (2008) consider friction arising from liquidity. A firm wishing ...
... financed at market rates by making a deal with the existing debtholders, such deals are almost impossible to make in practice because of holdout. Overhang becomes a more serious source of friction in financial crises. Kiyotaki and Moore (2008) consider friction arising from liquidity. A firm wishing ...
... denominated in the national monetary unit. Because all modern governments issue currency denominated in their own monetary units, monetary economics has blurred the distinction between the monetary unit as an abstract unit like the yard, and the store of value, analogous to the yardstick. History pr ...
Karl Brunner, Scholar: An Appreciation Allan H. Meltzer Economics
... Since we lived in Los Angeles and my wife worked there, I enrolled in the Ph.D. program at UCLA in February 1953. I had worked in industry for a few years after completing my undergraduate degree in 1948. I married in 1950, so my wife Marilyn accepted the main responsibilities for our support when ...
... Since we lived in Los Angeles and my wife worked there, I enrolled in the Ph.D. program at UCLA in February 1953. I had worked in industry for a few years after completing my undergraduate degree in 1948. I married in 1950, so my wife Marilyn accepted the main responsibilities for our support when ...
ECON 775 Monetary Economics - University of Wisconsin Whitewater
... understanding of the connections between monetary theory and modern theories of short-run fluctuations (e.g. real business cycle theory and New Keynesian models). The course is divided into two main parts. The first part focuses on monetary theory, whilst the second part focuses on monetary policy a ...
... understanding of the connections between monetary theory and modern theories of short-run fluctuations (e.g. real business cycle theory and New Keynesian models). The course is divided into two main parts. The first part focuses on monetary theory, whilst the second part focuses on monetary policy a ...
what caused the great depression?
... are not necessary; all that is required is that the creation of money through bank lending drive the market rate of interest below that rate consistent with consumer preferences. In addition, Austrians also admit that the secondary depression, as Hayek termed it, was much more severe and responsible ...
... are not necessary; all that is required is that the creation of money through bank lending drive the market rate of interest below that rate consistent with consumer preferences. In addition, Austrians also admit that the secondary depression, as Hayek termed it, was much more severe and responsible ...
The Quantity Theory of Money
... classical economists such as Jean Boldin at that time sought to know the cause of the increases in French prices. He concluded that, among other factors, increases in gold and silver which served as currencies were responsible for the rise in the demand for French-made goods and, hence, French price ...
... classical economists such as Jean Boldin at that time sought to know the cause of the increases in French prices. He concluded that, among other factors, increases in gold and silver which served as currencies were responsible for the rise in the demand for French-made goods and, hence, French price ...
NBER WORKING PAPER SERIES THE EFFECT OF CONVENTIONAL AND UNCONVENTIONAL MONETARY
... mistake to abandon the rational agent framework entirely. Instead, we should keep those parts of the paradigm that have been successful and replace those parts that have not. Classical economists developed the real business cycle model (RBC) to explain economic fluctuations as the optimal responses ...
... mistake to abandon the rational agent framework entirely. Instead, we should keep those parts of the paradigm that have been successful and replace those parts that have not. Classical economists developed the real business cycle model (RBC) to explain economic fluctuations as the optimal responses ...
Wicksell after Woodford
... the analysis of monetary policy and cumulative price changes. Wicksell’s (1898 [1936]) originally presented his pure credit economy as formed by a system of profit maximizing banks (or a single profit maximizer “Ideal Bank” with several branches) where gold is no longer used as means of payment but ...
... the analysis of monetary policy and cumulative price changes. Wicksell’s (1898 [1936]) originally presented his pure credit economy as formed by a system of profit maximizing banks (or a single profit maximizer “Ideal Bank” with several branches) where gold is no longer used as means of payment but ...
Multiple Market-Clearing Prices, Electricity Market Design and Price
... If the incremental uneconomic offer were to be added to the spot market optimization, say for generation, there would be no change in the dispatch, only a change in the price. For example, suppose in Figure 2 the market price is set at $30/MWh. In the next hour, with everything else the same, a $25/ ...
... If the incremental uneconomic offer were to be added to the spot market optimization, say for generation, there would be no change in the dispatch, only a change in the price. For example, suppose in Figure 2 the market price is set at $30/MWh. In the next hour, with everything else the same, a $25/ ...
NBER WORKING PAPER SERIES U.S. STOCK MARKET CRASHES AND THEIR AFTERMATH:
... out of the credit market, and a sharp contraction in lending and economic activity will then result. A stock market crash which leaves firms’ balance sheets in a weakened state also increases the moral hazard problem. As demonstrated by Bernanke and Gertler (1989), when a stock market crash leaves f ...
... out of the credit market, and a sharp contraction in lending and economic activity will then result. A stock market crash which leaves firms’ balance sheets in a weakened state also increases the moral hazard problem. As demonstrated by Bernanke and Gertler (1989), when a stock market crash leaves f ...
Is demand for money the same as demand for liquidity?
... Keynes, in chapter 12 of The General Theory (Keynes 1936) gives a magisterial illustration of the role and importance of liquidity in capital markets. The possibility to transform illiquid assets into more liquid assets is fundamental for modern capitalism. This does not normally imply demand for mo ...
... Keynes, in chapter 12 of The General Theory (Keynes 1936) gives a magisterial illustration of the role and importance of liquidity in capital markets. The possibility to transform illiquid assets into more liquid assets is fundamental for modern capitalism. This does not normally imply demand for mo ...
NBER WORKING PAPER SERIES LESSONS FROM THE DEBT-DEFLATION THEORY OF SUDDEN STOPS
... (so that agents wish to borrow at present).3 With standard stationarity assumptions and perfect credit markets, the equilibrium of this economy is a textbook example of Permament Income theory: tradables consumption is perfectly smooth, nontradables consumption and the relative price of nontradables ...
... (so that agents wish to borrow at present).3 With standard stationarity assumptions and perfect credit markets, the equilibrium of this economy is a textbook example of Permament Income theory: tradables consumption is perfectly smooth, nontradables consumption and the relative price of nontradables ...
The liquidity effect in a small open economy model
... only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between consumption and real balances. Such parameterizations lead to counterintuitive dome ...
... only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between consumption and real balances. Such parameterizations lead to counterintuitive dome ...
econstor - CiteSeerX
... instability and a sharp decline in economic activity. Stock market crashes may heighten informational problems arising from adverse selection and moral hazard. A stock market crash when balance sheets are initially weak increases adverse selection in credit markets because net worth of firms falls t ...
... instability and a sharp decline in economic activity. Stock market crashes may heighten informational problems arising from adverse selection and moral hazard. A stock market crash when balance sheets are initially weak increases adverse selection in credit markets because net worth of firms falls t ...
US stock market crashes and their aftermath
... instability and a sharp decline in economic activity. Stock market crashes may heighten informational problems arising from adverse selection and moral hazard. A stock market crash when balance sheets are initially weak increases adverse selection in credit markets because net worth of firms falls t ...
... instability and a sharp decline in economic activity. Stock market crashes may heighten informational problems arising from adverse selection and moral hazard. A stock market crash when balance sheets are initially weak increases adverse selection in credit markets because net worth of firms falls t ...
VII Keynesian revolution
... • Primarily, people hold liquidity (money). They give up this possibility (i.e. transfer their wealth into interest bearing bonds), only when it brings additional yield: – In general, the higher the interest, the higher the yield, hence higher interest lower demand for money (and higher demand for ...
... • Primarily, people hold liquidity (money). They give up this possibility (i.e. transfer their wealth into interest bearing bonds), only when it brings additional yield: – In general, the higher the interest, the higher the yield, hence higher interest lower demand for money (and higher demand for ...
D_Gray (2)
... Over 20 countries have been calibrated; 35 sovereigns; CCA now included in several IMF FSAPs; recent integration into DSGE/monetary policy models and CCA GVAR (Global and EU) ...
... Over 20 countries have been calibrated; 35 sovereigns; CCA now included in several IMF FSAPs; recent integration into DSGE/monetary policy models and CCA GVAR (Global and EU) ...
Expected portfolio returns
... All investors know that risk and return are related – taking on more (sensible) risk should provide higher returns, over time. Yet there are no guarantees. Advisers will often talk about target or expected returns from portfolios needed to deliver the financial goals of the client. Where do they com ...
... All investors know that risk and return are related – taking on more (sensible) risk should provide higher returns, over time. Yet there are no guarantees. Advisers will often talk about target or expected returns from portfolios needed to deliver the financial goals of the client. Where do they com ...
Economic bubble
![](https://commons.wikimedia.org/wiki/Special:FilePath/South_Sea_Bubble_Cards-Tree.png?width=300)
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.