I appreciate this opportunity to discuss the paper by I have Henrik
... effects of changes in the money supply. In the short run, changes in the quantity of monetary aggregates do affect the level of output and employment in a country, though these real effects disappear in the long run when a new equilibrium point is achieved. In the long run, money and monetary policy ...
... effects of changes in the money supply. In the short run, changes in the quantity of monetary aggregates do affect the level of output and employment in a country, though these real effects disappear in the long run when a new equilibrium point is achieved. In the long run, money and monetary policy ...
what do we know about macroeconomics
... At the center of Monetary Theory was the quantity theory— the theory of how changes in money lead to movements in output and in prices. The focus was hoth on long-run neutrality and on short-run nonneutrality. The discussion of the short-run eflFects of an increase in money on output was not much im ...
... At the center of Monetary Theory was the quantity theory— the theory of how changes in money lead to movements in output and in prices. The focus was hoth on long-run neutrality and on short-run nonneutrality. The discussion of the short-run eflFects of an increase in money on output was not much im ...
Goals of the Monetary Policy and the Stability of the Purchasing
... money on real economic trends. There are different, basically opposed views and opinions, regarding the mentioned issues in the monetary theory. According to ones, the development and changes of the real economic processes and trends are dependent on the factors of production, i.e. labour and the ca ...
... money on real economic trends. There are different, basically opposed views and opinions, regarding the mentioned issues in the monetary theory. According to ones, the development and changes of the real economic processes and trends are dependent on the factors of production, i.e. labour and the ca ...
Margin regulation and volatility - ECB
... Regulating margin requirements or haircuts for securities financing transactions has for a long time been considered as a potential tool to limit the build-up of leverage and dampen volatility in financial markets. For example, following the US stock market crash in 1929 the Federal Reserve Board (F ...
... Regulating margin requirements or haircuts for securities financing transactions has for a long time been considered as a potential tool to limit the build-up of leverage and dampen volatility in financial markets. For example, following the US stock market crash in 1929 the Federal Reserve Board (F ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... simply cut taxes until the private sector expects inflation instead of deflation. At zero nominal interest rates, higher inflation expectations reduce the real rate of return thereby raising aggregate demand and the price level. An alternative is for fiscal authorities to increase debt through seeki ...
... simply cut taxes until the private sector expects inflation instead of deflation. At zero nominal interest rates, higher inflation expectations reduce the real rate of return thereby raising aggregate demand and the price level. An alternative is for fiscal authorities to increase debt through seeki ...
What is Wrong with the GDP Implicit Price Deflator
... not exact for the underlying aggregator function, which itself is assumed to be fairly general and well behaved. Specifically, we will look at the direct Paasche price index (the Laspeyres and the Fisher indexes will be briefly examined as well), while assuming that the production possibilities fron ...
... not exact for the underlying aggregator function, which itself is assumed to be fairly general and well behaved. Specifically, we will look at the direct Paasche price index (the Laspeyres and the Fisher indexes will be briefly examined as well), while assuming that the production possibilities fron ...
Preparing for inflation - Charles Schwab Bank Collective Trust Funds
... that including commodities in one’s portfolio when an economy is experiencing healthy growth can introduce additional risk that we believe is not always offset by improved returns. Approximately one-third of the time, investors would have been better off investing in several other asset classes, ins ...
... that including commodities in one’s portfolio when an economy is experiencing healthy growth can introduce additional risk that we believe is not always offset by improved returns. Approximately one-third of the time, investors would have been better off investing in several other asset classes, ins ...
A Working Solution to the Question of Nominal GDP
... consequence of such things as the payment of interest on deposits, the availability of a broader array of deposit accounts, and the greater substitution among these accounts by consumers in response to changes in user costs. In this context, it is interesting to note that Working, nearly ninety year ...
... consequence of such things as the payment of interest on deposits, the availability of a broader array of deposit accounts, and the greater substitution among these accounts by consumers in response to changes in user costs. In this context, it is interesting to note that Working, nearly ninety year ...
Mutual Funds and Bubbles: The Surprising Role of Contractual
... The third body of literature that we relate to is the one that deals with the herding of institutional investors. Grinblatt et al. (1995) and Wermers (1999) document herding among mutual fund managers and Lakonishok et al. (1992) document herding among pension funds. Finally, we also relate to the r ...
... The third body of literature that we relate to is the one that deals with the herding of institutional investors. Grinblatt et al. (1995) and Wermers (1999) document herding among mutual fund managers and Lakonishok et al. (1992) document herding among pension funds. Finally, we also relate to the r ...
Module 32 Money, Output, and Prices in the Long Run
... International Evidence of Monetary Neutrality These days monetary policy is quite similar among wealthy countries. Each major nation (or, in the case of the euro, the eurozone) has a central bank that is insulated from political pressure. All of these central banks try to keep the aggregate price le ...
... International Evidence of Monetary Neutrality These days monetary policy is quite similar among wealthy countries. Each major nation (or, in the case of the euro, the eurozone) has a central bank that is insulated from political pressure. All of these central banks try to keep the aggregate price le ...
What is the Wealth of a Nation?
... tangible things like land and natural resources. But by themselves these things do not constitute wealth. If people sit on vast natural resources – e.g., oil, natural gas or potash -- but have no clue what to do with them those resources are not wealth to these people, but they might be to other peo ...
... tangible things like land and natural resources. But by themselves these things do not constitute wealth. If people sit on vast natural resources – e.g., oil, natural gas or potash -- but have no clue what to do with them those resources are not wealth to these people, but they might be to other peo ...
MerCAtUS reSeArCh A MArket-Driven noMinAl GDP tArGetinG reGiMe
... approach to monetary policy, but rather that these policy recommendations are based on fundamentally distinct ways of thinking about monetary economics in general. Indeed, it is not clear that the preceding five economists would even agree on what is meant by the term “monetary policy.” Friedman and ...
... approach to monetary policy, but rather that these policy recommendations are based on fundamentally distinct ways of thinking about monetary economics in general. Indeed, it is not clear that the preceding five economists would even agree on what is meant by the term “monetary policy.” Friedman and ...
effectiveness of monetary policy tools in
... in purchasing power. Secondly, there are tax distortions, for example, when inflation rages, the actual value of these deductions are much less than it should actually be (Ludi and Ground, 2006). There are also unfair gains and losses. When inflation hits, some people gain and some lose for example ...
... in purchasing power. Secondly, there are tax distortions, for example, when inflation rages, the actual value of these deductions are much less than it should actually be (Ludi and Ground, 2006). There are also unfair gains and losses. When inflation hits, some people gain and some lose for example ...
Credibility and Monetary Policy - Federal Reserve Bank of Kansas City
... avoid all output costs, with an extension to J-period lags straightforward. These costs will, nevertheless, be smaller the smaller is the excess of expected over actual inflation rates during the epi~ode.~ The rather different contracts of the type employed in Taylor's models (1980, 1983a)also give ...
... avoid all output costs, with an extension to J-period lags straightforward. These costs will, nevertheless, be smaller the smaller is the excess of expected over actual inflation rates during the epi~ode.~ The rather different contracts of the type employed in Taylor's models (1980, 1983a)also give ...
Marketing Time and Sales Price of Residential
... asset, its illiquidity is most often measured by the time the property spends on the market (Jud, Seaks and Winkler, 1996). Therefore, in carrying out transactions in real estate properties, sellers have to decide whether to maximize selling price and minimize time on the market (TOM). Also, buyers ...
... asset, its illiquidity is most often measured by the time the property spends on the market (Jud, Seaks and Winkler, 1996). Therefore, in carrying out transactions in real estate properties, sellers have to decide whether to maximize selling price and minimize time on the market (TOM). Also, buyers ...
The Capital Asset Pricing Model
... Thus, according to the CAPM: 1. Only assets with random returns that are positively correlated with the market return earn expected returns above the risk free rate. They must, in order to induce investors to take on more aggregate risk. ...
... Thus, according to the CAPM: 1. Only assets with random returns that are positively correlated with the market return earn expected returns above the risk free rate. They must, in order to induce investors to take on more aggregate risk. ...
A Neo-Keynedan Vie~ of Monetary Policy
... tax rates constant, would affect the economy by three different routes. First, there would be a direct expansionary income effect resulting from the purchase of output by the government. Second, there would be an expansionary wealth effect as the private sector, experiencing an increment to its weal ...
... tax rates constant, would affect the economy by three different routes. First, there would be a direct expansionary income effect resulting from the purchase of output by the government. Second, there would be an expansionary wealth effect as the private sector, experiencing an increment to its weal ...
The Theory of Relative-Price Changes, Money, and Demand Factors
... importance of supply-side factors; and monetarists note the relevance of an inappropriately conducted monetary policy in addition to the supply side. New Keynesian approaches no longer discount the potential importance of supply-side factors; rigidities are no longer assumed a priori, but are explai ...
... importance of supply-side factors; and monetarists note the relevance of an inappropriately conducted monetary policy in addition to the supply side. New Keynesian approaches no longer discount the potential importance of supply-side factors; rigidities are no longer assumed a priori, but are explai ...
Why DSGE analysis cannot accurately model financial-real sector interaction
... produce transaction costs, which money reduces in ways superficially comparable to what was described above. Yet the crucial implicit assumption is that the relevant cost is quantifiable, which requires that the uncertainty be strictly stochastic. Stochastic uncertainty, rather than ruling out perfe ...
... produce transaction costs, which money reduces in ways superficially comparable to what was described above. Yet the crucial implicit assumption is that the relevant cost is quantifiable, which requires that the uncertainty be strictly stochastic. Stochastic uncertainty, rather than ruling out perfe ...
Historical cost measurement and the use of DuPont analysis by
... capital (e.g., Romer, 1986). Our results suggest another reason that asset turnover has higher persistence. Specifically, measuring assets at historical cost but sales at current values creates the appearance of a barrier to entry, i.e., an artificial barrier to entry. This finding is important as i ...
... capital (e.g., Romer, 1986). Our results suggest another reason that asset turnover has higher persistence. Specifically, measuring assets at historical cost but sales at current values creates the appearance of a barrier to entry, i.e., an artificial barrier to entry. This finding is important as i ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
The Open Economy: Implications for Monetary and Fiscal Policy
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
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.