Micro Price Dynamics During Japan`s Lost Decades
... this difference is attributed to factors other than the window length such as weights for aggregation, data samples, the treatment of missing data, and the treatment of decimal prices. For instance, regarding the last point, Abe and Tonogi (2010) round prices to the nearest integer while we identify ...
... this difference is attributed to factors other than the window length such as weights for aggregation, data samples, the treatment of missing data, and the treatment of decimal prices. For instance, regarding the last point, Abe and Tonogi (2010) round prices to the nearest integer while we identify ...
Social Structures of Accumulation, the Rate of Profit
... of profit (see figure 1). Some date the SSA "peak" at 1966, while others choose 1973 on the grounds that severe macroeconomic problems began after the latter year. From 1973-79 both inflation and unemployment showed rising trends, the international monetary system exhibited increasing instability, a ...
... of profit (see figure 1). Some date the SSA "peak" at 1966, while others choose 1973 on the grounds that severe macroeconomic problems began after the latter year. From 1973-79 both inflation and unemployment showed rising trends, the international monetary system exhibited increasing instability, a ...
Analyzing Market-based Resource Allocation Strategies
... “belongs” to the Grid so producers are not concerned with occupancy. This assumption corresponds to the behavior of some batch systems in which, once a job is allowed to occupy its processors, it is allowed to run either until completion, or until its user’s allocation is exhausted. Producers are co ...
... “belongs” to the Grid so producers are not concerned with occupancy. This assumption corresponds to the behavior of some batch systems in which, once a job is allowed to occupy its processors, it is allowed to run either until completion, or until its user’s allocation is exhausted. Producers are co ...
Foreign Asset Accumulation, Macroeconomic Policies and
... Smith, some formal models of mercantilism have been developed. In a framework of the strategic trade theory, Irwin (1991) develops a model of mercantilism and proves that it is pro…table for the country utilizing trade protection policies (that is, export subsidies). Zou (1997) o¤ers a dynamic model ...
... Smith, some formal models of mercantilism have been developed. In a framework of the strategic trade theory, Irwin (1991) develops a model of mercantilism and proves that it is pro…table for the country utilizing trade protection policies (that is, export subsidies). Zou (1997) o¤ers a dynamic model ...
Franz Seitz - OTH Amberg
... recession relaxes credit constraints by lowering interest rates. But this will not necessarily boost borrowing and spending if a slowing economy has reduced the demand for credit. Thus if the credit constraint is no longer binding before policy is eased, relaxing the constraint will not augment easy ...
... recession relaxes credit constraints by lowering interest rates. But this will not necessarily boost borrowing and spending if a slowing economy has reduced the demand for credit. Thus if the credit constraint is no longer binding before policy is eased, relaxing the constraint will not augment easy ...
Crisis Prevention through Global Surveillance: A Task beyond the IMF
... the imminent avalanche. Indeed, the overall tone of the report was very favorable to Iceland: Unlike during a similar period last year, the króna has remained strong and confidence in Icelandic banks stayed high as indicated by their equity prices and credit default spreads. In addition to reflectin ...
... the imminent avalanche. Indeed, the overall tone of the report was very favorable to Iceland: Unlike during a similar period last year, the króna has remained strong and confidence in Icelandic banks stayed high as indicated by their equity prices and credit default spreads. In addition to reflectin ...
C ARE CREDIT BOOMS IN EMERGING MARKETS A CONCERN? CHAPTER IV
... absorption than output, because export firms tend to be larger and much less dependent on bank credit (Tornell and Westermann, 2003), credit and the current account balance in these economies would move in opposite directions. These possibly large fluctuations are not unusual as they are induced by ...
... absorption than output, because export firms tend to be larger and much less dependent on bank credit (Tornell and Westermann, 2003), credit and the current account balance in these economies would move in opposite directions. These possibly large fluctuations are not unusual as they are induced by ...
Prices in Motion: Towards a Schumpeterian Price Theory*
... Although his analysis is holistic, price movements provide a logical starting point for Schumpeter’s discussion of movements in measures of economic activity. By focusing on the price level Schumpeter is able to provide clearer predictions than are possible for individual prices or for many other ec ...
... Although his analysis is holistic, price movements provide a logical starting point for Schumpeter’s discussion of movements in measures of economic activity. By focusing on the price level Schumpeter is able to provide clearer predictions than are possible for individual prices or for many other ec ...
Principles of Economics, Case and Fair,9e
... 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 ...
Leverage and Disagreement ∗ François Geerolf UCLA
... The positive sorting result allows to solve in a very tractable way for the competitive equilibrium of what then becomes an assignment model in the tradition of Sattinger (1975). Lenders choose loans which are fully secured according to their beliefs. The leverage ratios of these loans are higher wh ...
... The positive sorting result allows to solve in a very tractable way for the competitive equilibrium of what then becomes an assignment model in the tradition of Sattinger (1975). Lenders choose loans which are fully secured according to their beliefs. The leverage ratios of these loans are higher wh ...
Garrison Lect-1. 4 Hayek and Friedman
... Holders of cash will…bid up the price of assets. If the extra demand is initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into wh ...
... Holders of cash will…bid up the price of assets. If the extra demand is initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into wh ...
Macroprudential Policy: Promise and Challenges * By Enrique G
... factors and to global spillovers in the form of shifts in global liquidity, news about global fundamentals, and the recurrent waves of financial innovation and structural/regulatory change in world financial markets. Macroprudential regulation can be implemented with rules simpler than the optimal r ...
... factors and to global spillovers in the form of shifts in global liquidity, news about global fundamentals, and the recurrent waves of financial innovation and structural/regulatory change in world financial markets. Macroprudential regulation can be implemented with rules simpler than the optimal r ...
PDF
... approach, namely, the extent of asset substitutability between bonds and agricultural products, to explain the conflicting empirical observations. Perhaps for operational convenience, Frankel (1986), and Lai, Hu, and Wang (1996) make a special assumption in their analyses: the public treats both bon ...
... approach, namely, the extent of asset substitutability between bonds and agricultural products, to explain the conflicting empirical observations. Perhaps for operational convenience, Frankel (1986), and Lai, Hu, and Wang (1996) make a special assumption in their analyses: the public treats both bon ...
IS-LM and Monetarism
... A second issue is that the quantity theorist regards the supply of money as affected by factors other than those affecting the demand for money. A third issue is that Keynes asserts that under conditions of underemployment, when interest rates are positive but low, a liquidity trap exists such that ...
... A second issue is that the quantity theorist regards the supply of money as affected by factors other than those affecting the demand for money. A third issue is that Keynes asserts that under conditions of underemployment, when interest rates are positive but low, a liquidity trap exists such that ...
Chapter 7 The Asset Market, Money, and Prices
... and why are they doing so? Should U.S. policymakers be concerned about this? Why? Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political instability in their countries. Policymakers shouldn’t be very concerned, since foreigners’ dol ...
... and why are they doing so? Should U.S. policymakers be concerned about this? Why? Answer: Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political instability in their countries. Policymakers shouldn’t be very concerned, since foreigners’ dol ...
Chapter 12 New Keynesian Economics
... general views does not do them justice, we first briefly highlight the main difference between the two points of view. RBC Theory views periodic expansions and recessions as natural, indeed efficient, responses of the economy to the ups and downs of the state of “technology” of the economy.72 As suc ...
... general views does not do them justice, we first briefly highlight the main difference between the two points of view. RBC Theory views periodic expansions and recessions as natural, indeed efficient, responses of the economy to the ups and downs of the state of “technology” of the economy.72 As suc ...
deflation - Mises Institute
... a matter of fact, the wage decreases occurred mainly after the deflation was over: “Most of the price deflation took place in 1921, whereas wage deflation took place primarily in 1922” (p. 101). This delayed adjustment, and not deflation per se, explains why unemployment skyrocketed in 1921 to 25 pe ...
... a matter of fact, the wage decreases occurred mainly after the deflation was over: “Most of the price deflation took place in 1921, whereas wage deflation took place primarily in 1922” (p. 101). This delayed adjustment, and not deflation per se, explains why unemployment skyrocketed in 1921 to 25 pe ...
A Primer on Economics: `X` Marks the Spot
... cannot be physically measured Bentham assumed they can be reified, i.e., an abstraction made concrete, in this case of happiness made money. The presence of money brings pleasure; its absence pain. The willingness to pay in monetary terms is taken as the measure of the happiness a consumer believes ...
... cannot be physically measured Bentham assumed they can be reified, i.e., an abstraction made concrete, in this case of happiness made money. The presence of money brings pleasure; its absence pain. The willingness to pay in monetary terms is taken as the measure of the happiness a consumer believes ...
Guide to the Markets - JP Morgan Asset Management
... Source: BLS, FactSet, J.P. Morgan Asset Management. *Aging effect on the labour force participation rate is the estimated number of people who are no longer employed or looking for work because they are retired. Cyclical effect is the estimated numbers of people who lose their jobs and stop looking ...
... Source: BLS, FactSet, J.P. Morgan Asset Management. *Aging effect on the labour force participation rate is the estimated number of people who are no longer employed or looking for work because they are retired. Cyclical effect is the estimated numbers of people who lose their jobs and stop looking ...
Economics of Money, Banking, and Financial Markets, 8e
... 12) Monetarists contend that the channels of monetary influence in Keynesian structural models are too ________ defined, ________ the importance of monetary policy. A) broadly; exaggerating B) broadly; understating C) narrowly; understating D) narrowly; exaggerating Answer: C Ques Status: Previous E ...
... 12) Monetarists contend that the channels of monetary influence in Keynesian structural models are too ________ defined, ________ the importance of monetary policy. A) broadly; exaggerating B) broadly; understating C) narrowly; understating D) narrowly; exaggerating Answer: C Ques Status: Previous E ...
QE: the story so far
... Each of these central banks, as well as the Bank of Japan, subsequently significantly expanded their balance sheets. Until the Bank of Japan’s quantitative and qualitative easing (QQE) announced in April 2013, these expansions were of a similar scale relative to nominal GDP, at around 20% (Figure 2) ...
... Each of these central banks, as well as the Bank of Japan, subsequently significantly expanded their balance sheets. Until the Bank of Japan’s quantitative and qualitative easing (QQE) announced in April 2013, these expansions were of a similar scale relative to nominal GDP, at around 20% (Figure 2) ...
W What is the Monetary Standard, Or, How Did the Volcker-Greenspan FOMCs
... public’s inflationary expectations differ from its objective for trend inflation. To understand this ability, consider the case where the price level evolves unpredictably.9 Assume, for illustrative purposes, that each period the central bank chooses a random, unannounced target for the price level. ...
... public’s inflationary expectations differ from its objective for trend inflation. To understand this ability, consider the case where the price level evolves unpredictably.9 Assume, for illustrative purposes, that each period the central bank chooses a random, unannounced target for the price level. ...
Land-Price Dynamics and Macroeconomic Fluctuations
... I. Introduction The recent financial crisis caused by a collapse of the housing market propelled the U.S. economy into the Great Recession. A notable development during the crisis period was a slump in business investment in tandem with a sharp decline in land prices (Figure 1). The crisis has gener ...
... I. Introduction The recent financial crisis caused by a collapse of the housing market propelled the U.S. economy into the Great Recession. A notable development during the crisis period was a slump in business investment in tandem with a sharp decline in land prices (Figure 1). The crisis has gener ...
Subtleties of the Supply and Demand Model: Price Floors, Price
... A. The price elasticity of demand is the ratio of the percentage change in quantity demanded to the percentage change in price. 1. Convention treats price elasticity of demand as positive even though the demand curve has a negative slope. 2. Elasticity is a unit-free measure. This makes comparison b ...
... A. The price elasticity of demand is the ratio of the percentage change in quantity demanded to the percentage change in price. 1. Convention treats price elasticity of demand as positive even though the demand curve has a negative slope. 2. Elasticity is a unit-free measure. This makes comparison b ...
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.