William A. Niskanen POLITICAL GUIDANCE ON MONETARY POLICY
... tions, and a price rule can lead to considerable instability in other markets. The long experience with the several types of gold standards, for example, included several short periods ofinflation caused by major gold discoveries, long periods of deflation, frequent recessions, and the Great Depress ...
... tions, and a price rule can lead to considerable instability in other markets. The long experience with the several types of gold standards, for example, included several short periods ofinflation caused by major gold discoveries, long periods of deflation, frequent recessions, and the Great Depress ...
Review Sheet - Syracuse University
... 1. A medium of exchange is: (a) what sellers generally accept and buyers generally use to pay for goods and services. (b) an asset that can be used to transport purchasing power from one period of time to another. (c) a standard unit that provides a consistent way of quoting prices. (d) the ability ...
... 1. A medium of exchange is: (a) what sellers generally accept and buyers generally use to pay for goods and services. (b) an asset that can be used to transport purchasing power from one period of time to another. (c) a standard unit that provides a consistent way of quoting prices. (d) the ability ...
Bolivia_en.pdf
... order to address the effects of the international financial crisis, the 2009 financial programme provided for a further expansion of liquidity and more financing for the NFPS than in previous years, by setting less ambitious goals for the accumulation of net international reserves and reducing net d ...
... order to address the effects of the international financial crisis, the 2009 financial programme provided for a further expansion of liquidity and more financing for the NFPS than in previous years, by setting less ambitious goals for the accumulation of net international reserves and reducing net d ...
Rational Expectations
... businesses will use all the information available to them when making economic decisions. People and businesses understand that when a government deficit spends, this causes an increase in prices. Households will supply less labor unless wages are matched, and businesses will supply less products if ...
... businesses will use all the information available to them when making economic decisions. People and businesses understand that when a government deficit spends, this causes an increase in prices. Households will supply less labor unless wages are matched, and businesses will supply less products if ...
ECON 401 November 19, 2012 Fragile Economy in the 1990s
... The stock of domestic debt was only about 6% of the GNP in 1989, just when the liberalization of the capital account was completed. It grew rapidly, and reached 20% by 1997. In 1993, shortly before the onset of the crisis almost all the central government’ s budgetary expenditures were being allocat ...
... The stock of domestic debt was only about 6% of the GNP in 1989, just when the liberalization of the capital account was completed. It grew rapidly, and reached 20% by 1997. In 1993, shortly before the onset of the crisis almost all the central government’ s budgetary expenditures were being allocat ...
Misunderstanding the Great Depression, making the next one worse
... – Neoclassical macroeconomics is a baby that should never have been conceived ...
... – Neoclassical macroeconomics is a baby that should never have been conceived ...
ch30
... Within the EMU, individual countries were limited in fiscal policy responses due to restrictions on debt outstanding – Further, the ECB supposedly follows an inflation target rule and thus is not able to directly intervene to stabilize outcome – In the end, countries did take fiscal actions and the ...
... Within the EMU, individual countries were limited in fiscal policy responses due to restrictions on debt outstanding – Further, the ECB supposedly follows an inflation target rule and thus is not able to directly intervene to stabilize outcome – In the end, countries did take fiscal actions and the ...
Review of the Theories of Financial Crises
... mobility, but faces conflicting policy needs, such as fiscal imbalances or fragile financial sector, that need to be resolved by independent monetary policy, and effectively shift the regime from the first solution of the tri-lemma described above to the second solution and the tri-lemma. ...
... mobility, but faces conflicting policy needs, such as fiscal imbalances or fragile financial sector, that need to be resolved by independent monetary policy, and effectively shift the regime from the first solution of the tri-lemma described above to the second solution and the tri-lemma. ...
Economics Chapter 15 Fiscal Policy
... The government can pay for budget deficits by creating money. Creating money, however, increases demand for goods and services and can lead to inflation. The government can also pay for budget deficits by borrowing money. ...
... The government can pay for budget deficits by creating money. Creating money, however, increases demand for goods and services and can lead to inflation. The government can also pay for budget deficits by borrowing money. ...
Ireland: Exit from Crisis
... C. Change in liquid assets €bn cash balances NPRF Total New Borrowing €bn (A+B+C) ...
... C. Change in liquid assets €bn cash balances NPRF Total New Borrowing €bn (A+B+C) ...
Chronology of Events
... Instead of reducing government spending, the country attempted to levy taxes against the citizens to solve their problems. Historically, Argentines paid very little taxes with about 40% not paying any taxes. Thus, increasing taxes was met with high resistance and little success. ...
... Instead of reducing government spending, the country attempted to levy taxes against the citizens to solve their problems. Historically, Argentines paid very little taxes with about 40% not paying any taxes. Thus, increasing taxes was met with high resistance and little success. ...
fiscal & monetary policy
... • British economist John Maynard Keynes - a new theory to explain the Depression. • Keynes argued that the Depression was continuing because neither consumers nor businesses had an incentive to spend enough to increase production. • The only way to end the Depression, according to Keynes, would be ...
... • British economist John Maynard Keynes - a new theory to explain the Depression. • Keynes argued that the Depression was continuing because neither consumers nor businesses had an incentive to spend enough to increase production. • The only way to end the Depression, according to Keynes, would be ...
The Macroeconomic Environment
... At “high” interest rates, we expect them to fall … i.e., bond prices will soon be rising. Wealth-max. strategy - buy bonds now. MD At “low” interest rates, we expect them to rise … i.e., bond prices will soon be falling. Wealth-max strategy - sell bonds now. MD Changes in MS will change i and ...
... At “high” interest rates, we expect them to fall … i.e., bond prices will soon be rising. Wealth-max. strategy - buy bonds now. MD At “low” interest rates, we expect them to rise … i.e., bond prices will soon be falling. Wealth-max strategy - sell bonds now. MD Changes in MS will change i and ...
Depression in Finland in the early 1990s
... the benefit of banks: deposit interest rates were not taxed and interst payments on loans were fully tax deductible in taxation (reducing significantly the after-tax rate of interest) ...
... the benefit of banks: deposit interest rates were not taxed and interst payments on loans were fully tax deductible in taxation (reducing significantly the after-tax rate of interest) ...
the Money Supply?
... • Medium of exchange • Used to buy/sell goods • Unit of account • Goods are valued in dollars • Store of value • A place to store wealth. ...
... • Medium of exchange • Used to buy/sell goods • Unit of account • Goods are valued in dollars • Store of value • A place to store wealth. ...
Chapter 5 Power Point Presentation
... 1. Market in which banks borrow and lend excess reserves 2. Short term borrowing 3. If a bank lacks sufficient reserves against deposits, it can borrow from a commercial bank 4. If a bank has excess reserves, it can loan the reserves to a bank that needs them ...
... 1. Market in which banks borrow and lend excess reserves 2. Short term borrowing 3. If a bank lacks sufficient reserves against deposits, it can borrow from a commercial bank 4. If a bank has excess reserves, it can loan the reserves to a bank that needs them ...
Interest Rates - McGraw Hill Higher Education
... • Increases Federal funds rate • Increases money supply • Increases other interest rates ...
... • Increases Federal funds rate • Increases money supply • Increases other interest rates ...
Bolivia_en.pdf
... credit and net domestic credit to the non-financial public sector. During the first half of the year, total net domestic credit did not meet the programme target. After leaving the repo rate unchanged for more than one and a half years, the central bank raised this rate in June 2011 as part of its c ...
... credit and net domestic credit to the non-financial public sector. During the first half of the year, total net domestic credit did not meet the programme target. After leaving the repo rate unchanged for more than one and a half years, the central bank raised this rate in June 2011 as part of its c ...
Chapter 4 The Classical Model
... the demand curve for bonds will shift right and bond prices will rise (interest rates fall) • If the government or firms borrow more the supply curve for bonds will shift to the right and bond prices will fall (interest rates ...
... the demand curve for bonds will shift right and bond prices will rise (interest rates fall) • If the government or firms borrow more the supply curve for bonds will shift to the right and bond prices will fall (interest rates ...
chapter 33 (18)
... When someone sends 100 British pounds to a friend in the United States, the transaction will show up in the component of the current account called net transfers, which include foreign aid, gifts, and other payments to individuals not exchanged for goods or services. It will also appear on the capit ...
... When someone sends 100 British pounds to a friend in the United States, the transaction will show up in the component of the current account called net transfers, which include foreign aid, gifts, and other payments to individuals not exchanged for goods or services. It will also appear on the capit ...
Econ110: Principles of Economics TEST YOUR UNDERSTANDING
... Table 1: The information in the table pertains to an imaginary economy. Type of Money Large time deposits Small time deposits Demand deposits Other checkable deposits Savings deposits ...
... Table 1: The information in the table pertains to an imaginary economy. Type of Money Large time deposits Small time deposits Demand deposits Other checkable deposits Savings deposits ...
The World Bank
... • Post-independence: consolidation of unitary administrations on governorate model. ...
... • Post-independence: consolidation of unitary administrations on governorate model. ...