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 ...
Monetary Policy Transparency and Private Sector Forecasts
... The central bank implements policy by moving the actual policy rate above or below the neutral rate when the output gap and inflation gap are nonzero. For example, if an economic shock causes weaker economic growth, the central bank would lower the policy rate below the neutral rate by an amount tha ...
... The central bank implements policy by moving the actual policy rate above or below the neutral rate when the output gap and inflation gap are nonzero. For example, if an economic shock causes weaker economic growth, the central bank would lower the policy rate below the neutral rate by an amount tha ...
US, China and Europe`s imbalances
... equalisation payments, thus averting the present bias towards downward fiscal adjustments, not to speak of the 3% deficit rule. • The ECB and the national central banks normally do not purchase government securities, and they certainly never do it directly. Thus, unless households or their banks dec ...
... equalisation payments, thus averting the present bias towards downward fiscal adjustments, not to speak of the 3% deficit rule. • The ECB and the national central banks normally do not purchase government securities, and they certainly never do it directly. Thus, unless households or their banks dec ...
Fiscal Policy - Macmillan Learning
... and services (G), and the value of exports (X) minus the value of imports (IM). It includes all the sources of aggregate demand. The government directly controls one of the variables on the right-hand side of Equation 13-1: government purchases of goods and services (G). But that’s not the only effe ...
... and services (G), and the value of exports (X) minus the value of imports (IM). It includes all the sources of aggregate demand. The government directly controls one of the variables on the right-hand side of Equation 13-1: government purchases of goods and services (G). But that’s not the only effe ...
Economic Outlook Presentation to Workers’ Compensation Trust
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
... banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, General Theory, 1937) Tuesday, May 23, 2017 ...
Commentary: How Should Monetary Policy Be ∗ Michael Woodford
... achieve lower inflation than would result from purely discretionary optimizing behavior on the part of the central bank, with little loss of output. Indeed, this understanding of the value of commitment to a low average rate of inflation is one of the main reasons for the popularity in recent years ...
... achieve lower inflation than would result from purely discretionary optimizing behavior on the part of the central bank, with little loss of output. Indeed, this understanding of the value of commitment to a low average rate of inflation is one of the main reasons for the popularity in recent years ...
Lecture 6 - Universität Bamberg
... Prof. Dr. Herbert Brücker Lehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer Arbeitsmärkte Universität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker ...
... Prof. Dr. Herbert Brücker Lehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer Arbeitsmärkte Universität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker ...
(2011): DELFI: DNB`s Macroeconomic Policy Model of the Netherlands
... user to analyze the effects of financial turmoil. If pension funds see their funding ratios drop below the regulatory minimum, they might decide to raise the pension premium or reduce benefits. Both actions affect the real economy, either by increasing production costs or by lowering disposable inco ...
... user to analyze the effects of financial turmoil. If pension funds see their funding ratios drop below the regulatory minimum, they might decide to raise the pension premium or reduce benefits. Both actions affect the real economy, either by increasing production costs or by lowering disposable inco ...
The Importance of Being Earnest About Fiscal Responsibility
... accelerate growth and raise the tax buoyancy, and the higher revenues so generated will be more than sufficient to meet the additional debt service obligations. In other words, through a ‘borrow and invest’ fiscal stance, the economy can ge t on to a virtuous circle of higher growth and higher reven ...
... accelerate growth and raise the tax buoyancy, and the higher revenues so generated will be more than sufficient to meet the additional debt service obligations. In other words, through a ‘borrow and invest’ fiscal stance, the economy can ge t on to a virtuous circle of higher growth and higher reven ...
Determinants of Inflation in Nepal: An Empirical Assessment
... macroeconomic variables. Among these most striking effect of budget deficits is on inflation. For this reason, budget deficit is largely considered as one of the major determinants of the inflation. Deficit compels the central bank to print new money to finance the budget deficit which led to an inc ...
... macroeconomic variables. Among these most striking effect of budget deficits is on inflation. For this reason, budget deficit is largely considered as one of the major determinants of the inflation. Deficit compels the central bank to print new money to finance the budget deficit which led to an inc ...
A history of public debt in Australia
... The case of Japan most clearly illustrates how only considering gross debt can result in a skewed interpretation of government finances. Using the gross debt measure, Japan, at 173 per cent of GDP, appears to have the highest debt level of the G7, well above the level of Italy. When the net debt mea ...
... The case of Japan most clearly illustrates how only considering gross debt can result in a skewed interpretation of government finances. Using the gross debt measure, Japan, at 173 per cent of GDP, appears to have the highest debt level of the G7, well above the level of Italy. When the net debt mea ...
English - Inter-American Development Bank
... policy shocks have sizable monetary effects, we can also test whether they enable the emergence of a non-conventional bank lending channel. That is to say, to what extent do exogenous monetary innovations—not related to monetary policy—bring about an increase in loan supply. Second, we want to find ...
... policy shocks have sizable monetary effects, we can also test whether they enable the emergence of a non-conventional bank lending channel. That is to say, to what extent do exogenous monetary innovations—not related to monetary policy—bring about an increase in loan supply. Second, we want to find ...
Measuring financial sector output and its
... (ii) intermediation, that is, transforming deposits from savers into funding for households, companies or governments who wish to borrow; and (iii) risk transfer and insurance. Banks’ gross output is, in principle, just the sum of the output of each of these individual services. But some of them are ...
... (ii) intermediation, that is, transforming deposits from savers into funding for households, companies or governments who wish to borrow; and (iii) risk transfer and insurance. Banks’ gross output is, in principle, just the sum of the output of each of these individual services. But some of them are ...
Economics of Money, Banking, and Financial Markets, 8e
... 27) Explain the Keynesian theory of money demand. What motives did Keynes think determined money demand? What are the two reasons why Keynes thought velocity could not be treated as a constant? Answer: Keynes believed the demand for money depended on income and interest rates. Money was held to faci ...
... 27) Explain the Keynesian theory of money demand. What motives did Keynes think determined money demand? What are the two reasons why Keynes thought velocity could not be treated as a constant? Answer: Keynes believed the demand for money depended on income and interest rates. Money was held to faci ...
Government of Iceland
... Iceland’s tourism industry has boomed in recent years owing in part to the low real exchange rate, Iceland’s natural beauty, and the eruption of the Eyjafjallajökull volcano in 2010, which put the country in newspaper headlines around the globe. The industry has served as a positive external shock t ...
... Iceland’s tourism industry has boomed in recent years owing in part to the low real exchange rate, Iceland’s natural beauty, and the eruption of the Eyjafjallajökull volcano in 2010, which put the country in newspaper headlines around the globe. The industry has served as a positive external shock t ...
frenchdavis2001financialcrisis_en.pdf
... stock of external liabilities.4 All these macroeconomic variables experienced some overshooting.5 Adjustment was frequently anchored to one dominant balance, which generated imbalances in other macroeconomic variables, as in a falling inflation rate associated with real exchange rate appreciation a ...
... stock of external liabilities.4 All these macroeconomic variables experienced some overshooting.5 Adjustment was frequently anchored to one dominant balance, which generated imbalances in other macroeconomic variables, as in a falling inflation rate associated with real exchange rate appreciation a ...
Shifting gear: why have neutral interest rates fallen?
... 5. Measurement of neutral interest rates We have seen these changes in the real economy, but how in practice do we estimate the level of the neutral interest rate? Neutral interest rates are not observable in the way that the 90-day rate or retail interest rates are. Instead, neutral has to be infer ...
... 5. Measurement of neutral interest rates We have seen these changes in the real economy, but how in practice do we estimate the level of the neutral interest rate? Neutral interest rates are not observable in the way that the 90-day rate or retail interest rates are. Instead, neutral has to be infer ...
NBER WORKING PAPER SERIES MONETARIST INTERPRETATIONS OF THE GREAT DEPRESSION:
... of time allowed for adjustment. From this orientation, a modern monetarist would not be required to devote excessive attention to showing that money played a major causal role in the Great Depression, because the potency of money is no longer a matter for debate.-11 He would be more interested in de ...
... of time allowed for adjustment. From this orientation, a modern monetarist would not be required to devote excessive attention to showing that money played a major causal role in the Great Depression, because the potency of money is no longer a matter for debate.-11 He would be more interested in de ...
Commentary on " Are Contemporary Central Banks
... disturbance, et>0. A policy that tries to stabilize xtL needs to let xtNK rise. That is, output will expand above the flexible-price equilibrium level. In contrast, if the central bank focuses on stabilizing xtNK, it will allow output to fall below the natural rate in the face of a positive producti ...
... disturbance, et>0. A policy that tries to stabilize xtL needs to let xtNK rise. That is, output will expand above the flexible-price equilibrium level. In contrast, if the central bank focuses on stabilizing xtNK, it will allow output to fall below the natural rate in the face of a positive producti ...
Private Debt Overhang and the Government Spending Multiplier
... of fiscal consolidations are probably not very harmful. In contrast, at times of debt overhang in the private sector, or periods when highly indebted private sector agents repair their balance sheets, deficit-financed government spending is probably able to support the economy. In other words, as ar ...
... of fiscal consolidations are probably not very harmful. In contrast, at times of debt overhang in the private sector, or periods when highly indebted private sector agents repair their balance sheets, deficit-financed government spending is probably able to support the economy. In other words, as ar ...
International Dimensions Of Monetary And Fiscal Policy
... An economy with fixed exchange rates is much more restricted in its monetary and fiscal policies than one with flexible exchange rates. ...
... An economy with fixed exchange rates is much more restricted in its monetary and fiscal policies than one with flexible exchange rates. ...
interest rate - Universität Bamberg
... • Financial markets support equilibrium: if money supply declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices a ...
... • Financial markets support equilibrium: if money supply declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices a ...
The Interaction Between Monetary and Fiscal Policies
... trade-off between inflation and unemployment.5 Those who believed that there was, were more willing to engage in a high level of fine-tuning the real economy. Models were used to mimic finetuning exercises, with interest rates or fiscal policy levers changed to get back quickly to desired output lev ...
... trade-off between inflation and unemployment.5 Those who believed that there was, were more willing to engage in a high level of fine-tuning the real economy. Models were used to mimic finetuning exercises, with interest rates or fiscal policy levers changed to get back quickly to desired output lev ...
Fiscal Consolidation - Does it deliver?
... payments) in a given year. However, debt dynamics are also driven by changes in the real burden of the underlying debt stock (the ‘snowball effect’) and a host of ‘other factors’ beyond those already captured through the deficit channel. In light of these distortions, a preferable lens through which ...
... payments) in a given year. However, debt dynamics are also driven by changes in the real burden of the underlying debt stock (the ‘snowball effect’) and a host of ‘other factors’ beyond those already captured through the deficit channel. In light of these distortions, a preferable lens through which ...