Syllabus - Harvard Kennedy School
... Topics covered: What is the role of monetary and fiscal policy in an open economy? What determines the balance of payments, the level of economic activity, and inflation? Should countries fix their exchange rates, or let them float? How does the globalization of financial markets affect these and ot ...
... Topics covered: What is the role of monetary and fiscal policy in an open economy? What determines the balance of payments, the level of economic activity, and inflation? Should countries fix their exchange rates, or let them float? How does the globalization of financial markets affect these and ot ...
Fiscal Policy and Exchange Rate Regimes
... policy impotence remains valid. These economies need to make countercyclical fiscal policy as automatic as possible, in order to avoid the legislative and managerial delays associated with discretionary fiscal policy. Examples of automatic fiscal stabilizers include unemployment benefits and progres ...
... policy impotence remains valid. These economies need to make countercyclical fiscal policy as automatic as possible, in order to avoid the legislative and managerial delays associated with discretionary fiscal policy. Examples of automatic fiscal stabilizers include unemployment benefits and progres ...
Lecture 19: From Stability to Inflation: 1950-1980
... Collapse of Bretton Woods and Restraint on Inflation • If all foreign central banks tried to convert their holdings at once, the United States would not be able to honor its obligations to convert $ into gold at $35 an ounce. • Instead: a slow run on the dollar. But U.S. does not respond by tighten ...
... Collapse of Bretton Woods and Restraint on Inflation • If all foreign central banks tried to convert their holdings at once, the United States would not be able to honor its obligations to convert $ into gold at $35 an ounce. • Instead: a slow run on the dollar. But U.S. does not respond by tighten ...
Interest Rates on Debt Securities
... 2) Federal Funds rate - Rate one bank charges another for overnight borrowing (in order to meet reserve requirement) Fed controls this rate indirectly Sets target for Federal Funds rate Rate moves toward target in response to changes in money supply ...
... 2) Federal Funds rate - Rate one bank charges another for overnight borrowing (in order to meet reserve requirement) Fed controls this rate indirectly Sets target for Federal Funds rate Rate moves toward target in response to changes in money supply ...
Test #2
... Interest-rate targeting essentially produces a horizontal LM curve – shifts in the money demand or supply (arising from either the public or banking system) curves are offset by monetary policy actions to keep the interest rate at the desired target level. Thus, those changes in financial markets ar ...
... Interest-rate targeting essentially produces a horizontal LM curve – shifts in the money demand or supply (arising from either the public or banking system) curves are offset by monetary policy actions to keep the interest rate at the desired target level. Thus, those changes in financial markets ar ...
QUESTION BANK MACROECONOMICS
... 6. Derive money demand function from the quantity theory of money. Justify the necessary assumptions. 7. Explain how the current rate of inflation depends on current money supply as well as on expected growth of money supply. 8. Write a short note on seignorage and inflation tax. 9. The demand for ...
... 6. Derive money demand function from the quantity theory of money. Justify the necessary assumptions. 7. Explain how the current rate of inflation depends on current money supply as well as on expected growth of money supply. 8. Write a short note on seignorage and inflation tax. 9. The demand for ...
Speech by Mr. Ivan Iskrov, Governor of the BNB, Delivered before
... optimum level of credit expansion. The experience of our own and of other countries indicates that maybe lending to the private sector is increasing at rates exceeding the long-term sustainable rate of growth. The Central Bank acknowledges that the credit policy pursued by commercial banks is ration ...
... optimum level of credit expansion. The experience of our own and of other countries indicates that maybe lending to the private sector is increasing at rates exceeding the long-term sustainable rate of growth. The Central Bank acknowledges that the credit policy pursued by commercial banks is ration ...
BUDGETING FOR RECOVERY The Need to Increase the Federal
... up their prices and driving down their interest rates. As fears of widespread financial institution bankruptcy abate, investors will likely be willing to exchange public for private debt instruments, and this switch would lead to an uptick in the interest rates on public debt. When that happens, it’ ...
... up their prices and driving down their interest rates. As fears of widespread financial institution bankruptcy abate, investors will likely be willing to exchange public for private debt instruments, and this switch would lead to an uptick in the interest rates on public debt. When that happens, it’ ...
Macro Exam Summer 2005
... • So if there is a current account deficit there must be a cap account surplus (inflow) • This must be the case because there is a free market in currency so flows. So if curr+cap <0 for an instant there would be excess demand for foreign currency ($) and excess supply of domestic currency (€) • Bas ...
... • So if there is a current account deficit there must be a cap account surplus (inflow) • This must be the case because there is a free market in currency so flows. So if curr+cap <0 for an instant there would be excess demand for foreign currency ($) and excess supply of domestic currency (€) • Bas ...
Practice Exam - University of Notre Dame
... present value of each potential business assuming that the market interest rate is 5%: 1) You can open a gas station, which would make a profit of $30,000 per year for four years, then sell it for $600,000 at the end of the fourth year. There is no risk that the business will fail. ______________ 2) ...
... present value of each potential business assuming that the market interest rate is 5%: 1) You can open a gas station, which would make a profit of $30,000 per year for four years, then sell it for $600,000 at the end of the fourth year. There is no risk that the business will fail. ______________ 2) ...
... each consistent with bubbles that drove prices above their fundamentals and that then crashed. Researchers studying asset price bubbles often associate them with periods when investors appear willing to accept lower compensation for holding risk, with the crash then occurring once investors become m ...
Governance, Budget Deficits And Financial Crisis: An Analysis Of
... members of the military and state security services. At the same time, there was an increase in capital flight as a number of residents and businesses fled the country. The result was a fall in government revenue; notwithstanding, government spending continued to increase. The resulting increase in ...
... members of the military and state security services. At the same time, there was an increase in capital flight as a number of residents and businesses fled the country. The result was a fall in government revenue; notwithstanding, government spending continued to increase. The resulting increase in ...
Monetary Policy
... 2. Loans to commercial banks (Note: again commercial banks term is used even though the chapter analysis also applies to other thrift institutions.) B. The liability side of the balance sheet contains three major items. 1. Reserves of banks held as deposits at Federal Reserve Banks, 2. U.S. Treasury ...
... 2. Loans to commercial banks (Note: again commercial banks term is used even though the chapter analysis also applies to other thrift institutions.) B. The liability side of the balance sheet contains three major items. 1. Reserves of banks held as deposits at Federal Reserve Banks, 2. U.S. Treasury ...
The Government Securities Market
... – Sovereign Borrowings only from Multilateral/Bilateral Sources – States not permitted to raise external debt directly – Foreign investment allowed in locaL currency bonds but within an overall ceiling ...
... – Sovereign Borrowings only from Multilateral/Bilateral Sources – States not permitted to raise external debt directly – Foreign investment allowed in locaL currency bonds but within an overall ceiling ...
Dr. Yetkiner when he is young and
... 2. (20 Points) Suppose that firms in Turkey are become infected with optimism due to increase in global liquidity (e.g., US Fed prints US Dollars jauntily), and they expect that uncertainty will be lower in the current period. (a) Determine how does this affect current macroeconomic variables in a M ...
... 2. (20 Points) Suppose that firms in Turkey are become infected with optimism due to increase in global liquidity (e.g., US Fed prints US Dollars jauntily), and they expect that uncertainty will be lower in the current period. (a) Determine how does this affect current macroeconomic variables in a M ...
Slide 1
... excess supply of money LM curve shifts out to LM’ Public adjusts by buying other assets Asset prices increase, and yields decrease move to point E1 Money market clears, with lower interest rate Decline in interest rate results in excess demand for goods: goods market out of equilibrium at E1 Out ...
... excess supply of money LM curve shifts out to LM’ Public adjusts by buying other assets Asset prices increase, and yields decrease move to point E1 Money market clears, with lower interest rate Decline in interest rate results in excess demand for goods: goods market out of equilibrium at E1 Out ...
ch25 - Index of
... The main components of spending that depend on the real interest rate are spending by households on durable goods and investment – When these components of spending are sensitive to the interest rate, then the Fed can influence the economy through small variations in its target federal funds rate ...
... The main components of spending that depend on the real interest rate are spending by households on durable goods and investment – When these components of spending are sensitive to the interest rate, then the Fed can influence the economy through small variations in its target federal funds rate ...
Pareto Optimality
... skilfully presented a few case studies and pointed out, for example, that big bang or shock therapy approaches in reform are not really in the long-term interests of the people. What I found most interesting, as a hiker, is his analogy to getting to the top of a mountain. The shortest way is of cour ...
... skilfully presented a few case studies and pointed out, for example, that big bang or shock therapy approaches in reform are not really in the long-term interests of the people. What I found most interesting, as a hiker, is his analogy to getting to the top of a mountain. The shortest way is of cour ...
ECON 4423-001 International Finance
... understanding of recent events and current policy issues. The theory presented in this course covers a broad range of topics including exchange rate determination, monetary and fiscal policy in an open economy, balance of payments crises, the choice of exchange rate systems, and international debt. ...
... understanding of recent events and current policy issues. The theory presented in this course covers a broad range of topics including exchange rate determination, monetary and fiscal policy in an open economy, balance of payments crises, the choice of exchange rate systems, and international debt. ...
A Case for Sector Institutions
... Institutions (Cont’d) Who are the drivers of the diversification process? In Uganda, diversification is advancing at a rather slow pace. The private sector does not have the sufficient thrust to accelerate the diversification. The SSI’s are ill equipped and under resourced ...
... Institutions (Cont’d) Who are the drivers of the diversification process? In Uganda, diversification is advancing at a rather slow pace. The private sector does not have the sufficient thrust to accelerate the diversification. The SSI’s are ill equipped and under resourced ...
Economics Principles and Applications - YSU
... Market • Important insight of money market analysis in this ...
... Market • Important insight of money market analysis in this ...
Economics Principles and Applications
... Market • Important insight of money market analysis in this ...
... Market • Important insight of money market analysis in this ...
The Great Depression
... bring in tax revenue, helping to balance the budget. Between 1933 and 1938, the New Deal programme in America involved a public works programme designed to stimulate output and employment. Despite being against budget deficits, the US government found itself running them to pay for the programmes. N ...
... bring in tax revenue, helping to balance the budget. Between 1933 and 1938, the New Deal programme in America involved a public works programme designed to stimulate output and employment. Despite being against budget deficits, the US government found itself running them to pay for the programmes. N ...
DOC - World bank documents
... transparency and capacity of state institutions. The Bank is supporting the latter efforts through sector investment operations, including an IDA Economic Governance and Recovery Grant (development policy grant). The Government’s emphasis on also restoring private sector confidence and capacity refl ...
... transparency and capacity of state institutions. The Bank is supporting the latter efforts through sector investment operations, including an IDA Economic Governance and Recovery Grant (development policy grant). The Government’s emphasis on also restoring private sector confidence and capacity refl ...
International Lecture - Rockhurst University
... Stocks (measured at a point in time eg. Balance sheet items): ...
... Stocks (measured at a point in time eg. Balance sheet items): ...