![The State of the MOnetarist Debate](http://s1.studyres.com/store/data/017879001_1-3df3d4b088300baa550bc9c9e25ec1a2-300x300.png)
The State of the MOnetarist Debate
... and rapid force on aggregate demand. Most monetarists, but not all, contend that the influence of such actions is transitory. Post-Keynesians advance three main arguments for the primacy of fiscal actions. Increases in Government spending add directly to aggregate demand, and reductions in tax rates ...
... and rapid force on aggregate demand. Most monetarists, but not all, contend that the influence of such actions is transitory. Post-Keynesians advance three main arguments for the primacy of fiscal actions. Increases in Government spending add directly to aggregate demand, and reductions in tax rates ...
Harold L. Cole Maurice TRADE AND INTERNATIONAL RISK SHARING:
... Equilibrium with financial integration. The basic setup of the model comes from Lucas (1982). There are two countries, the "home" and the "foreign" country, with stochastic endowments of ...
... Equilibrium with financial integration. The basic setup of the model comes from Lucas (1982). There are two countries, the "home" and the "foreign" country, with stochastic endowments of ...
- Department Of Economics
... price level that accurately captures the cost of living. As a good becomes relatively more expensive, people buy less of it and more of other goods. In this example, consumers bought less bread and more cars. An index with fixed weights, such as the CPI, overestimates the change in the cost of livin ...
... price level that accurately captures the cost of living. As a good becomes relatively more expensive, people buy less of it and more of other goods. In this example, consumers bought less bread and more cars. An index with fixed weights, such as the CPI, overestimates the change in the cost of livin ...
Borrowing Constraints and Asset Market Dynamics: Evidence from the Pacific Basin
... that they devalued together (Huh and Kasa 1997). However, devaluation was supposed to restore their competitiveness and stimulate their economies. Instead, these devaluations produced recessions. There are many reasons why a devaluation might produce a recession.1 The thesis of this paper is that in ...
... that they devalued together (Huh and Kasa 1997). However, devaluation was supposed to restore their competitiveness and stimulate their economies. Instead, these devaluations produced recessions. There are many reasons why a devaluation might produce a recession.1 The thesis of this paper is that in ...
CFA Candidate Self
... D. Intensified competition in markets for goods and services. 46. Which of the following factors is least likely to play a role in the self-correcting mechanisms that help stabilize the economy? The pattern of: A. price adjustments in resource markets. B. changes in employment levels in labor market ...
... D. Intensified competition in markets for goods and services. 46. Which of the following factors is least likely to play a role in the self-correcting mechanisms that help stabilize the economy? The pattern of: A. price adjustments in resource markets. B. changes in employment levels in labor market ...
Measures of Prices, Inflation, Measures of Prices
... will disappear. The deflationary gap is, therefore, defined as the amount by which total spending falls short of the full employment level of income, will require a drop in national income. When income is decreased to the equilibrium level of OY0, the gap will disappear. The deflationary gap is, the ...
... will disappear. The deflationary gap is, therefore, defined as the amount by which total spending falls short of the full employment level of income, will require a drop in national income. When income is decreased to the equilibrium level of OY0, the gap will disappear. The deflationary gap is, the ...
Unlocking the Mystery of Economic Recessions Using a Multi-commodity Macroeconomic Model
... growth in housing mortgage lending before the GFC. It is widely agreed that investors are generally risk averse by nature, and should consequently diversify their investment portfolio while putting some money into the ‘sunny spots’. If majority of investors is risk averse, the ‘sunny spots’ should n ...
... growth in housing mortgage lending before the GFC. It is widely agreed that investors are generally risk averse by nature, and should consequently diversify their investment portfolio while putting some money into the ‘sunny spots’. If majority of investors is risk averse, the ‘sunny spots’ should n ...
Chapter 24 Transmission Mechanisms of Monetary Policy
... using the procedure outlined in Frederic S. Mishkin, “The Real Interest Rate: An Empirical Investigation,” Carnegie-Rochester Conference Series on Public Policy 15 (1981): 151–200. This involves estimating expected inflation as a function of past interest rates, inflation, and time trends and then s ...
... using the procedure outlined in Frederic S. Mishkin, “The Real Interest Rate: An Empirical Investigation,” Carnegie-Rochester Conference Series on Public Policy 15 (1981): 151–200. This involves estimating expected inflation as a function of past interest rates, inflation, and time trends and then s ...
Inflation over 300 years
... to be a function of unemployment and expected inflation. In M Friedman’s explanation of this theory,(1) there was a ‘natural’ rate of unemployment (determined by institutional factors) at which the Phillips curve was vertical. Any attempt by government to stimulate the economy and reduce unemploymen ...
... to be a function of unemployment and expected inflation. In M Friedman’s explanation of this theory,(1) there was a ‘natural’ rate of unemployment (determined by institutional factors) at which the Phillips curve was vertical. Any attempt by government to stimulate the economy and reduce unemploymen ...
Factors determining price developments
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
Factors determining price developments
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
The Simplest Model of Financial Crisis
... the short-term nominal interest rate is properly targeted to reduce dynamic uncertainty. But financial markets can suddenly panic, when interest rates are raised too high to curtail speculative behavior. This paper proposes to extend the dimensions of a traditional Keynesian model of the macro econo ...
... the short-term nominal interest rate is properly targeted to reduce dynamic uncertainty. But financial markets can suddenly panic, when interest rates are raised too high to curtail speculative behavior. This paper proposes to extend the dimensions of a traditional Keynesian model of the macro econo ...
Asset Tracking: Keeping Track of Business Value
... The challenges facing asset-intensive industries are ones that need to be addressed through modern enterprise asset management solutions, particularly through the use of asset tracking systems. Businesses in industries such as fleet management and logistics, for example, need to ensure they can accu ...
... The challenges facing asset-intensive industries are ones that need to be addressed through modern enterprise asset management solutions, particularly through the use of asset tracking systems. Businesses in industries such as fleet management and logistics, for example, need to ensure they can accu ...
The impact of short-selling constraints on financial market
... imposed, the price reflects the beliefs of the most optimistic investors, and due to speculative motives the actual price may even be higher. However, since these first contributions other models have been developed that predict no mispricing or even underpricing as a consequence of short-selling c ...
... imposed, the price reflects the beliefs of the most optimistic investors, and due to speculative motives the actual price may even be higher. However, since these first contributions other models have been developed that predict no mispricing or even underpricing as a consequence of short-selling c ...
Central banking in the XXI century: never say never
... Against this background, let me emphasize that the key question is not whether monetary authorities should take financial stability issues into consideration – the answer is ‘yes’ and they already do. The issue is rather whether the micro- as well as the macroprudential authorities take the macroeco ...
... Against this background, let me emphasize that the key question is not whether monetary authorities should take financial stability issues into consideration – the answer is ‘yes’ and they already do. The issue is rather whether the micro- as well as the macroprudential authorities take the macroeco ...
individuel rådgivning
... also include opportunity cost as represented by the loss of interest income from investing the funds in a non-interest bearing asset. ...
... also include opportunity cost as represented by the loss of interest income from investing the funds in a non-interest bearing asset. ...
SAMPLE QUESTION PAPER 2 ECONOMICS Class XII
... The price elasticity of supply of good X is half the price elasticity of supply of Good Y. A 10% rise in the price of good Y results in a rise in its supply from 400 units to 520 units. Calculate the percentage change in quantity supplied of good X when its price falls from Rs 10 to Rs 8 per unit. ...
... The price elasticity of supply of good X is half the price elasticity of supply of Good Y. A 10% rise in the price of good Y results in a rise in its supply from 400 units to 520 units. Calculate the percentage change in quantity supplied of good X when its price falls from Rs 10 to Rs 8 per unit. ...
Investor Behavior and Economic Cycle:
... contributed to a cycle when market rules and conditions change - what are the misalignment and misunderstood/unrealized consequences of these changes in the implementation process? Have these changes harmed the overall economy or had adverse consequences in the economic shifts because financial beha ...
... contributed to a cycle when market rules and conditions change - what are the misalignment and misunderstood/unrealized consequences of these changes in the implementation process? Have these changes harmed the overall economy or had adverse consequences in the economic shifts because financial beha ...
Unconstrained Investing: Unleash Your Bonds
... allocations can be made based on the attractiveness of the investment rather than the issuance pattern of benchmark constituents. It also allows for significant flexibility in duration. Normally a benchmark-based strategy will require that the duration of the portfolio be within a certain tolerance ...
... allocations can be made based on the attractiveness of the investment rather than the issuance pattern of benchmark constituents. It also allows for significant flexibility in duration. Normally a benchmark-based strategy will require that the duration of the portfolio be within a certain tolerance ...
money supply
... • A change in the supply of money has no effect on the long-run values of the interest rate or real output. e.g. currency reform • A permanent increase in the money supply causes a proportional increase in price level’s long-run value. If the economy is initially at full employment, a permanent incr ...
... • A change in the supply of money has no effect on the long-run values of the interest rate or real output. e.g. currency reform • A permanent increase in the money supply causes a proportional increase in price level’s long-run value. If the economy is initially at full employment, a permanent incr ...
NBER WORKING PAPER SERIES REAL-FINANCIAL LINKAGES AMONG OPEN ECONOMIES Sven W. Arndt
... linkages between the real and financial variables that themselves link open economies-- "linkage" thus has a double meaning. Two types of linkages are discussed. Structural linkages describe differences across economies and among sectors in market structure (competitive/oljgopoljstjc), productivity ...
... linkages between the real and financial variables that themselves link open economies-- "linkage" thus has a double meaning. Two types of linkages are discussed. Structural linkages describe differences across economies and among sectors in market structure (competitive/oljgopoljstjc), productivity ...
Other things the same, an increase in the price level, leads to an
... aggregate supply curve to the right making the inflation rate higher than otherwise. ...
... aggregate supply curve to the right making the inflation rate higher than otherwise. ...
Balance sheet recession is the reason for `secular stagnation`
... tries to administer fiscal stimulus, the media, pundits and ordinary citizens who do not understand balance sheet recessions are quick to argue that politicians are wasting taxpayers’ money on useless projects to win re-election. For the past 20 years, the Japanese media and orthodox academics have ...
... tries to administer fiscal stimulus, the media, pundits and ordinary citizens who do not understand balance sheet recessions are quick to argue that politicians are wasting taxpayers’ money on useless projects to win re-election. For the past 20 years, the Japanese media and orthodox academics have ...
I - El Camino College
... creditworthiness and (8) to limit the decline of output (Radelet & Sachs, 1998). To achieve these goals, the IMF had made programs that were based on six major policies. The policies were: (1) Fiscal policy, (2) bank closures, (3) enforcement of capital adequacy standards, (4) tight domestic credit, ...
... creditworthiness and (8) to limit the decline of output (Radelet & Sachs, 1998). To achieve these goals, the IMF had made programs that were based on six major policies. The policies were: (1) Fiscal policy, (2) bank closures, (3) enforcement of capital adequacy standards, (4) tight domestic credit, ...
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.