![This PDF is a selection from a published volume from... National Bureau of Economic Research](http://s1.studyres.com/store/data/008235471_1-290a0bb1328e4f185b85fb7adcb3e620-300x300.png)
This PDF is a selection from a published volume from... National Bureau of Economic Research
... nature of the labor market in Taiwan. It is true that their two-stage estimation might have cleared the pass-through coefficients from this factor, but considering that the broad literature (e.g., De Gregorio, Landerretche, and Neilson 2007; Blanchard and Gali 2007) put emphasis on real wage rigidity ...
... nature of the labor market in Taiwan. It is true that their two-stage estimation might have cleared the pass-through coefficients from this factor, but considering that the broad literature (e.g., De Gregorio, Landerretche, and Neilson 2007; Blanchard and Gali 2007) put emphasis on real wage rigidity ...
central banking after the crisis
... involve either 1) managing expectations in order that the policy rate be viewed as staying low for an extended period, thereby lowering long-term interest rates; 2) lowering risk and term premiums by purchasing securities, and thereby changing their relative supply; or 3) by exchange rate interventi ...
... involve either 1) managing expectations in order that the policy rate be viewed as staying low for an extended period, thereby lowering long-term interest rates; 2) lowering risk and term premiums by purchasing securities, and thereby changing their relative supply; or 3) by exchange rate interventi ...
Japan`s Experience in the Late 1980s and the Lessons
... academia, and economists both at home and abroad with respect to the mechanism of how the bubble economy was generated, although up to now a consensus is far from being reached.1 Similarly, discussions are under way as to how monetary policy should be conducted when asset prices rapidly rise. In fac ...
... academia, and economists both at home and abroad with respect to the mechanism of how the bubble economy was generated, although up to now a consensus is far from being reached.1 Similarly, discussions are under way as to how monetary policy should be conducted when asset prices rapidly rise. In fac ...
Positive Expectations Feedback Experiments and Number Guessing
... behavior of financial markets this fast convergence is surprising for at least two reasons. First, empirical evidence suggests that asset markets are in fact not that stable. Shiller (1981, 2000), for example, shows that stock prices are excessively volatile: their variance is higher than that of th ...
... behavior of financial markets this fast convergence is surprising for at least two reasons. First, empirical evidence suggests that asset markets are in fact not that stable. Shiller (1981, 2000), for example, shows that stock prices are excessively volatile: their variance is higher than that of th ...
lecture 1
... The art of business consists of identifying assets in low-valued uses and devising ways to profitably move them to higher-valued ones. ...
... The art of business consists of identifying assets in low-valued uses and devising ways to profitably move them to higher-valued ones. ...
The Bank of Japan`s Efforts toward Overcoming Deflation
... established segregated fund on its balance sheet, which is also used for the funds-supplying operations over the longer term, the Bank has purchased JGBs -- both short-term and long-term -- and, in an exceptionally unusual practice for a central bank, risk assets including commercial paper, corporat ...
... established segregated fund on its balance sheet, which is also used for the funds-supplying operations over the longer term, the Bank has purchased JGBs -- both short-term and long-term -- and, in an exceptionally unusual practice for a central bank, risk assets including commercial paper, corporat ...
FINANCIAL STABILITY AND MONETARY POLICY: A R EDUCED
... the stability of financial markets. Since central banks are responsible for financial stability, they should monitor asset prices and try to prevent the emergence of bubbles (that invariably lead to crashes). In this view, the use of the interest rate is seen as effective in preventing bubbles from ...
... the stability of financial markets. Since central banks are responsible for financial stability, they should monitor asset prices and try to prevent the emergence of bubbles (that invariably lead to crashes). In this view, the use of the interest rate is seen as effective in preventing bubbles from ...
A Citizen`s Guide to Unconventional Monetary Policy
... When the Fed purchases assets, whether through traditional monetary policy or through LSAPs, it must choose which assets to buy. Traditionally, the Fed has purchased primarily short-term Treasuries because they are highly liquid and safe.7 In addition, purchasing Treasuries is a relatively neutral w ...
... When the Fed purchases assets, whether through traditional monetary policy or through LSAPs, it must choose which assets to buy. Traditionally, the Fed has purchased primarily short-term Treasuries because they are highly liquid and safe.7 In addition, purchasing Treasuries is a relatively neutral w ...
Bubbly Collateral and Economic Activity
... of the continent’s banks. The European Central Bank, in turn, has also done its share to help troubled banking systems: between December of 2011 and February of 2012, it provided over one trillion euros of cheap long-term loans to more than one thousand eurozone banks.1 This large-scale use of publi ...
... of the continent’s banks. The European Central Bank, in turn, has also done its share to help troubled banking systems: between December of 2011 and February of 2012, it provided over one trillion euros of cheap long-term loans to more than one thousand eurozone banks.1 This large-scale use of publi ...
Chapter 25 PPP
... causes an improvement in firms’ balance sheets, because it increases liquidity and makes it easier for lenders to know if the firm will be able to pay its bills. This reduces adverse selection and moral hazard problems, leading to an increase in lending. Expansionary monetary policy i , cash flow ...
... causes an improvement in firms’ balance sheets, because it increases liquidity and makes it easier for lenders to know if the firm will be able to pay its bills. This reduces adverse selection and moral hazard problems, leading to an increase in lending. Expansionary monetary policy i , cash flow ...
Tactical Asset Allocation with Macroeconomic Factors
... Terrien [2001]), and energy ( Jennings [2012]), among others. Compared with simply using traditional asset classes, incorporating additional asset classes (also known as multiple-asset-class strategies) produces additional return and diversification benefits. “For investors concerned primarily with ...
... Terrien [2001]), and energy ( Jennings [2012]), among others. Compared with simply using traditional asset classes, incorporating additional asset classes (also known as multiple-asset-class strategies) produces additional return and diversification benefits. “For investors concerned primarily with ...
Lecture Presentation to accompany Investment
... RPortfolio = x1 R1 + x2 R2 + ...+ xn Rn Where : xi = proportion in the i th asset Ri = return on the i th asset ...
... RPortfolio = x1 R1 + x2 R2 + ...+ xn Rn Where : xi = proportion in the i th asset Ri = return on the i th asset ...
Money Demand and the Quantity Theory
... under more normal conditions rarely describe their policy actions in terms of their implications for the money supply. Instead, central bankers manage interest rates. Following suit, academic economists seldom discuss money demand and supply anymore. As emphasized by Eggertsson and Woodford (2003), ...
... under more normal conditions rarely describe their policy actions in terms of their implications for the money supply. Instead, central bankers manage interest rates. Following suit, academic economists seldom discuss money demand and supply anymore. As emphasized by Eggertsson and Woodford (2003), ...
Oeconomicus Winter 2001 - UMKC`s College of Arts and Sciences
... if a big firm or bank defaults on its debt, it can also bring down others in the economy due to the interlocking nature of their balance sheets. This could cause a “snow ball effect” on the economy. An additional constraining institution is needed to prevent debt deflation from occurring. Big Banks, ...
... if a big firm or bank defaults on its debt, it can also bring down others in the economy due to the interlocking nature of their balance sheets. This could cause a “snow ball effect” on the economy. An additional constraining institution is needed to prevent debt deflation from occurring. Big Banks, ...
Chapter 16 power point - The College of Business UNR
... • Some reasons why the Fed doesn’t always know which course of action is best. • Why negative real shocks are harder for the Fed to respond to. • Some cases where it’s not clear what the best monetary policy is. • The financial crisis that started in 2007. ...
... • Some reasons why the Fed doesn’t always know which course of action is best. • Why negative real shocks are harder for the Fed to respond to. • Some cases where it’s not clear what the best monetary policy is. • The financial crisis that started in 2007. ...
Volatility and How To Handle It By
... An investment involves buying something with the hope, but not the guarantee, that its future value will be greater than the price you paid for it. Volatility is the risk that the future value will not be what you think it will be. In return for taking that risk, the investor expects to receive a hi ...
... An investment involves buying something with the hope, but not the guarantee, that its future value will be greater than the price you paid for it. Volatility is the risk that the future value will not be what you think it will be. In return for taking that risk, the investor expects to receive a hi ...
Escaping the Polanyi matrix: the impact of fictitious commodities
... necessary for all factors of production to be sold in markets in order to make them available for production. However, he made the observation that land, capital, and labor are “fictitious” commodities, since they are not “produced for sale on the market” (Polanyi, p. 72), and therefore their prices ...
... necessary for all factors of production to be sold in markets in order to make them available for production. However, he made the observation that land, capital, and labor are “fictitious” commodities, since they are not “produced for sale on the market” (Polanyi, p. 72), and therefore their prices ...
FINANCIAL ECONO MICS MAY 2012 - Institute of Bankers in Malawi
... as compensation for losing the use of the money today and potentially investing in more risky assets than government bonds at the risk-free rate. (3 marks) 3. Inflation premium – inflation eats away at real returns and again investors need compensation for the loss of purchasing power. This would ho ...
... as compensation for losing the use of the money today and potentially investing in more risky assets than government bonds at the risk-free rate. (3 marks) 3. Inflation premium – inflation eats away at real returns and again investors need compensation for the loss of purchasing power. This would ho ...
US 3 month interest rates - Stock
... month interest rates) and Euribor (European 3 month interest rates) regularly trade in excess of two trillion dollars and euros a day • The STIRs futures markets are fully computerised ...
... month interest rates) and Euribor (European 3 month interest rates) regularly trade in excess of two trillion dollars and euros a day • The STIRs futures markets are fully computerised ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER Macroeconomics Annual 2012, Volume 27
... of time (the “extensive margin”). The authors propose to identify (or at least to bound) the importance of adjustment on the extensive margin by looking at the distributions of individual price changes immediately following certain large shocks, with the desirable features that (a) the timing of the ...
... of time (the “extensive margin”). The authors propose to identify (or at least to bound) the importance of adjustment on the extensive margin by looking at the distributions of individual price changes immediately following certain large shocks, with the desirable features that (a) the timing of the ...
ECONOMIC KNOWLEDGE IN ONE SENTENCE: TANSTAAFL
... Ideas are encapsulated in metaphors, and Adam Smith’s "invisible hand" metaphor has been a central one in economics since 1776. It’s a neat metaphor, but it sometimes makes economic forces seem to be the only forces guiding the direction of society. And that just ain’t so. In the 1970s and 1980s a n ...
... Ideas are encapsulated in metaphors, and Adam Smith’s "invisible hand" metaphor has been a central one in economics since 1776. It’s a neat metaphor, but it sometimes makes economic forces seem to be the only forces guiding the direction of society. And that just ain’t so. In the 1970s and 1980s a n ...
Case Study: Buying and Selling Shares of Alanna
... Alanna Corporation is a large manufacturer of computer games and other software. The table below shows the number of buy and sell orders for this hypothetical firm’s shares currently available on the stock exchange. Note that at the price of $30.00, while 100,000 shares are being offered for sale, o ...
... Alanna Corporation is a large manufacturer of computer games and other software. The table below shows the number of buy and sell orders for this hypothetical firm’s shares currently available on the stock exchange. Note that at the price of $30.00, while 100,000 shares are being offered for sale, o ...
Positive vs
... b. For maximum total production of the two goods, Mick and Paddy should each specialize completely in the production of the good for which he has a comparative advantage. c. After trade it is possible for Mick to consume 14 apples and 10 oranges, and for Paddy to consume 10 apples and 6 oranges. d. ...
... b. For maximum total production of the two goods, Mick and Paddy should each specialize completely in the production of the good for which he has a comparative advantage. c. After trade it is possible for Mick to consume 14 apples and 10 oranges, and for Paddy to consume 10 apples and 6 oranges. d. ...
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.