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Working Paper Series: The Global Energy Market: Comprehensive Strategies to Meet
... The high-oil-price episodes in Figure 1 coincided generally with periods of financial turmoil, accompanied with currency and/or banking crises, in the mid 19th century, around the turn of the previous century, prior to the Great Depression, and after 1973. Other subperiods were characterized by rel ...
... The high-oil-price episodes in Figure 1 coincided generally with periods of financial turmoil, accompanied with currency and/or banking crises, in the mid 19th century, around the turn of the previous century, prior to the Great Depression, and after 1973. Other subperiods were characterized by rel ...
Define and Discuss on Monetary Policy
... point out that expansionary monetary policies that increase the reserves of the banking system need not lead to a multiple expansion of the money supply because banks can simply refuse to lend out their excess reserves. Furthermore, the lower interest rates that result from an expansionary monetary ...
... point out that expansionary monetary policies that increase the reserves of the banking system need not lead to a multiple expansion of the money supply because banks can simply refuse to lend out their excess reserves. Furthermore, the lower interest rates that result from an expansionary monetary ...
Presentation: Bricks may be solid, but real estate values will fall further
... households by more than 300.000 units p.a. in the last few years. This has led to a vacancy of more than 1 m units ...
... households by more than 300.000 units p.a. in the last few years. This has led to a vacancy of more than 1 m units ...
NBER WORKING PAPER SERIES THE DOT-COM BUBBLE, THE BUSH DEFICITS Aart Kraay
... relatively well and all savings are channeled into efficient investments. If financial markets do not work as well, the economy might contain pockets of inefficient investments that deliver a rate of return that is below the growth rate of the economy. These investments are inefficient since they ab ...
... relatively well and all savings are channeled into efficient investments. If financial markets do not work as well, the economy might contain pockets of inefficient investments that deliver a rate of return that is below the growth rate of the economy. These investments are inefficient since they ab ...
Explorations in Economics Book Pages
... Historically low levels of new construction since the implosion of the housing bubble allowed demand to catch up to the supply of new housing by 2011. In fact, there may have been some “overshooting,” with new housing supply below the pace needed to keep up with household formation. ...
... Historically low levels of new construction since the implosion of the housing bubble allowed demand to catch up to the supply of new housing by 2011. In fact, there may have been some “overshooting,” with new housing supply below the pace needed to keep up with household formation. ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... it to appropriate the value of the bubble. Section 11.6 constructs an alternative equilibrium that again begins with the stock market creating a bubble that eliminates inefficient investments. The government initially refrains from running budget deficits, and this creates space for the bubble to grow ...
... it to appropriate the value of the bubble. Section 11.6 constructs an alternative equilibrium that again begins with the stock market creating a bubble that eliminates inefficient investments. The government initially refrains from running budget deficits, and this creates space for the bubble to grow ...
Honours Finance (Advanced Concepts in Finance)
... – Higher return necessarily paired with higher volatility • Investors simply chose risk/return trade-off that suited their preferences ...
... – Higher return necessarily paired with higher volatility • Investors simply chose risk/return trade-off that suited their preferences ...
Guillermo Calvo LOOKING AT FINANCIAL CRISES IN THE EYE Some Basic Observations
... amount of attention, for much of macro theory the financial sector boils down to a few interest rates and straightforward arbitrage conditions. Most of the attention is devoted to price/wage stickiness and imperfections in the labor and product markets. There are exceptions, of course, like the intr ...
... amount of attention, for much of macro theory the financial sector boils down to a few interest rates and straightforward arbitrage conditions. Most of the attention is devoted to price/wage stickiness and imperfections in the labor and product markets. There are exceptions, of course, like the intr ...
Barcelona Summer School Lecture 2015
... market behavior appear in the laboratory • We construct an experimental asset market with a monotonically decreasing fundamental value. • All traders are videotaped throughout the session • The videotapes are analysed with Noldus Facereader at a later date. • The Facereader reads a facial expression ...
... market behavior appear in the laboratory • We construct an experimental asset market with a monotonically decreasing fundamental value. • All traders are videotaped throughout the session • The videotapes are analysed with Noldus Facereader at a later date. • The Facereader reads a facial expression ...
Macroeconomic Issues and Vulnerabilities in the Global
... • Will the recovery of growth in the Eurozone be robust or weak/anemic/uneven? • Is the EZ at risk of deflation? • Will the Italian government survive? • Political risks in Greece, Portugal? • Will the ECB start formal QE (purchase of sovereign bonds) and when? • Will EZ fiscal policy become more fl ...
... • Will the recovery of growth in the Eurozone be robust or weak/anemic/uneven? • Is the EZ at risk of deflation? • Will the Italian government survive? • Political risks in Greece, Portugal? • Will the ECB start formal QE (purchase of sovereign bonds) and when? • Will EZ fiscal policy become more fl ...
Discussion prepared for JMCB special issue Zheng Liu
... movements reflect efficient responses of asset markets to fundamental shocks to the economy, stabilizing asset price fluctuations would be counterproductive; if instead asset prices are driven by speculative bubbles, then it would be inappropriate to use monetary policy to stabilize asset prices bec ...
... movements reflect efficient responses of asset markets to fundamental shocks to the economy, stabilizing asset price fluctuations would be counterproductive; if instead asset prices are driven by speculative bubbles, then it would be inappropriate to use monetary policy to stabilize asset prices bec ...
Chapter 10 Slides
... • And the nominal value of transactions should change slowly. • According to the transaction form of the equation of exchange (and the Quantity Theory), M=kPT; money demand is proportion to nominal value of transactions, and does not depend (significantly) on other factors. • If the nominal value of ...
... • And the nominal value of transactions should change slowly. • According to the transaction form of the equation of exchange (and the Quantity Theory), M=kPT; money demand is proportion to nominal value of transactions, and does not depend (significantly) on other factors. • If the nominal value of ...
NTTS 2017 presentation - Conference
... • Breakdown of GFCF by industry (max 64) and asset • Breakdown of stocks (gross and net) by industry (max 64) and asset • Balance sheets for non-financial assets by sector (not all breakdowns compulsory and derogations exist) ...
... • Breakdown of GFCF by industry (max 64) and asset • Breakdown of stocks (gross and net) by industry (max 64) and asset • Balance sheets for non-financial assets by sector (not all breakdowns compulsory and derogations exist) ...
Refocusing the Fed
... success in using their words alone to influence expectations of future monetary policy actions. Reflecting on this, one might wonder, as well, if the New Keynesian view that the short-term interest rate is all that matters is excessively narrow. To cite just one alternative: a long traditional of m ...
... success in using their words alone to influence expectations of future monetary policy actions. Reflecting on this, one might wonder, as well, if the New Keynesian view that the short-term interest rate is all that matters is excessively narrow. To cite just one alternative: a long traditional of m ...
PANEL
... them. But in the long run, in a full employment economy, expansive monetary policies foster greater inflation and encourage borrowers to make even larger demands on the credit markets. Over the long run, therefore, expansive monetary policies may not lower interest rates; in fact, they raay raise th ...
... them. But in the long run, in a full employment economy, expansive monetary policies foster greater inflation and encourage borrowers to make even larger demands on the credit markets. Over the long run, therefore, expansive monetary policies may not lower interest rates; in fact, they raay raise th ...
Final Exam
... 1. [6 points] Americans feel very optimistic and their high animal spirits increase demand in that country. The US Federal reserve follows a policy of countercyclical monetary policy. a. Would the central bank in the USA respond with an open market purchase or an open market sale of government bonds ...
... 1. [6 points] Americans feel very optimistic and their high animal spirits increase demand in that country. The US Federal reserve follows a policy of countercyclical monetary policy. a. Would the central bank in the USA respond with an open market purchase or an open market sale of government bonds ...
Refocusing the Fed
... success in using their words alone to influence expectations of future monetary policy actions. Reflecting on this, one might wonder, as well, if the New Keynesian view that the short-term interest rate is all that matters is excessively narrow. To cite just one alternative: a long traditional of m ...
... success in using their words alone to influence expectations of future monetary policy actions. Reflecting on this, one might wonder, as well, if the New Keynesian view that the short-term interest rate is all that matters is excessively narrow. To cite just one alternative: a long traditional of m ...
- City Research Online
... Accordingly, when a bullish sentiments abound, rising market prices do not encourage necessarily shift to other assets as predicted by standard economics (so that Pareto optimality is maintained), but may attract further funds in expectations of future gains. Excess demand results in capital asset i ...
... Accordingly, when a bullish sentiments abound, rising market prices do not encourage necessarily shift to other assets as predicted by standard economics (so that Pareto optimality is maintained), but may attract further funds in expectations of future gains. Excess demand results in capital asset i ...
Speculative capitals and demand pull inflation below full
... Keynes (1940) dealt with such an excess money, though in the specific context of WWII. As quoted in the introduction above, his focus was on the excess purchasing power induced by the money earnings distributed to workers that produced arms instead of commodities. He was then seriously concerned wi ...
... Keynes (1940) dealt with such an excess money, though in the specific context of WWII. As quoted in the introduction above, his focus was on the excess purchasing power induced by the money earnings distributed to workers that produced arms instead of commodities. He was then seriously concerned wi ...
romewp2007-02 - Research on Money in the Economy” ROME
... thus lead to greater and more frequent changes in central bank rates compared with the status quo, which might have negative effects on output and employment. ⎯ The foremost problem with asset price movements lies in the signal extraction problem.35 Asset prices may be driven by a number of factors, ...
... thus lead to greater and more frequent changes in central bank rates compared with the status quo, which might have negative effects on output and employment. ⎯ The foremost problem with asset price movements lies in the signal extraction problem.35 Asset prices may be driven by a number of factors, ...
Paul Davidson - American Economic Association
... By Paul Davidson, Editor, Journal of Post Keynesian Economics ...
... By Paul Davidson, Editor, Journal of Post Keynesian Economics ...
Speech to the Emeryville Chamber of Commerce Emeryville, CA
... Turning to inflation, the recent news, as I said, hasn’t been what I’d like to see. Headline inflation, as measured by the personal consumption expenditures price index, showed an increase of three and a half percent over the twelve months ending in July. While this is an important and comprehensive ...
... Turning to inflation, the recent news, as I said, hasn’t been what I’d like to see. Headline inflation, as measured by the personal consumption expenditures price index, showed an increase of three and a half percent over the twelve months ending in July. While this is an important and comprehensive ...
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.