Chapter 10
... face risk, such as the risk of becoming unemployed, and cannot borrow if they become unemployed, then the real interest rate is somewhat lower than in other RBC models without heterogeneous agents – The risk in such models also leads people to save more than they would if there were no such risk • S ...
... face risk, such as the risk of becoming unemployed, and cannot borrow if they become unemployed, then the real interest rate is somewhat lower than in other RBC models without heterogeneous agents – The risk in such models also leads people to save more than they would if there were no such risk • S ...
Economic Reforms and State Sector Bankruptcy in China* Carsten A
... state banking system and the losses of SOEs are intricately linked. For *I would like to thank Rodney Chun and Beatrix Paal, Thomas P. Lyons and Henry Wan, Jr., for inspiration and detailed feedback on earlier versions of this paper, and discussions on the implications of deteriorating state sector ...
... state banking system and the losses of SOEs are intricately linked. For *I would like to thank Rodney Chun and Beatrix Paal, Thomas P. Lyons and Henry Wan, Jr., for inspiration and detailed feedback on earlier versions of this paper, and discussions on the implications of deteriorating state sector ...
The role of the natural rate of interest in monetary policy
... then the equilibrium real interest rate will be different than if investment goods were perfect substitutes. It is instructive to consider the effects of shocks on the natural rate. For example, an expected increase in total factor productivity tends to raise the natural rate. When productivity grow ...
... then the equilibrium real interest rate will be different than if investment goods were perfect substitutes. It is instructive to consider the effects of shocks on the natural rate. For example, an expected increase in total factor productivity tends to raise the natural rate. When productivity grow ...
NBER WORKING PAPER SERIES ARE ALL BANKING CRISES ALIKE? THE JAPANESE EXPERIENCE
... problems when adverse macroeconomic shocks such as a fall in asset prices (impacting bank capital and/or collateral underlying loans) or economic activity (more delinquent loans) occurs. Adverse economic shocks may be of domestic origin (e.g. recession, inflation, budget deficits, credit slowdown) ...
... problems when adverse macroeconomic shocks such as a fall in asset prices (impacting bank capital and/or collateral underlying loans) or economic activity (more delinquent loans) occurs. Adverse economic shocks may be of domestic origin (e.g. recession, inflation, budget deficits, credit slowdown) ...
Deputy Minister of Finance speech
... It may be a natural consequence that household saving in South Africa would fall since democracy, given that a large proportion of the population was previously excluded in terms of access to credit, housing finance, job opportunities have increasingly gained access to these. However, this is not th ...
... It may be a natural consequence that household saving in South Africa would fall since democracy, given that a large proportion of the population was previously excluded in terms of access to credit, housing finance, job opportunities have increasingly gained access to these. However, this is not th ...
Why Monetary Policy Matters
... Crown corporation that operates with considerable independence from the federal government but is nonetheless ultimately accountable to Parliament.1 2. Because financial capital can move easily within Canada, interest rates on similar assets are the same across all Canadian regions. As a result, the ...
... Crown corporation that operates with considerable independence from the federal government but is nonetheless ultimately accountable to Parliament.1 2. Because financial capital can move easily within Canada, interest rates on similar assets are the same across all Canadian regions. As a result, the ...
NBER WORKING PAPER SERIES BUSINESS CYCLES Luca Guerrieri
... sector. When a shock erodes the capitalization of global banks, it reduces credit supply and depresses economic activity in both countries.6 In particular, banks’ losses raise bank intermediation costs in both countries, triggering synchronized business fluctuations. Kamber and Thonissen (2012) anal ...
... sector. When a shock erodes the capitalization of global banks, it reduces credit supply and depresses economic activity in both countries.6 In particular, banks’ losses raise bank intermediation costs in both countries, triggering synchronized business fluctuations. Kamber and Thonissen (2012) anal ...
The Monetary and Fiscal History of Latin America: Brazil M´ arcio Garcia
... to the institutionalization of mechanisms that increased the spending capacity of local governments, a phenomenon that would eventually pose great fiscal challenges taking years to be reverted. In what became known as the years of the “economic miracle”, the early 1970s, the annual GDP growth rates ...
... to the institutionalization of mechanisms that increased the spending capacity of local governments, a phenomenon that would eventually pose great fiscal challenges taking years to be reverted. In what became known as the years of the “economic miracle”, the early 1970s, the annual GDP growth rates ...
LCCARL97_en.pdf
... accompanied by debt restructuring policies. Notwithstanding these efforts, the high levels of debt continue to raise concerns (58% and 69% of GDP on average for 2004 and 2005) particularly in the cases of the smaller economies. A case in point is that of Belize whose authorities defaulted on its deb ...
... accompanied by debt restructuring policies. Notwithstanding these efforts, the high levels of debt continue to raise concerns (58% and 69% of GDP on average for 2004 and 2005) particularly in the cases of the smaller economies. A case in point is that of Belize whose authorities defaulted on its deb ...
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... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
NBER WORKING PAPER SERIES MONETARY-FISCAL POLICY INTERACTIONS BEYOND
... curve that, under the fiscal theory, is central to determining the impacts of fiscal changes on the economy. Microeconomic public finance economists should care about the fiscal theory because it identifies a new channel by which fiscal policies can affect economic activity. This channel is typically ...
... curve that, under the fiscal theory, is central to determining the impacts of fiscal changes on the economy. Microeconomic public finance economists should care about the fiscal theory because it identifies a new channel by which fiscal policies can affect economic activity. This channel is typically ...
Implications for Aggregate Fiscal Discipline [220K
... management • Who defines what is a “prudent” level of debt, or a “reasonable” period of time over which the budget should be balanced? • The government of the time • However, the government must justify its interpretation of what is prudent and reasonable in parliament, as well as to the general pub ...
... management • Who defines what is a “prudent” level of debt, or a “reasonable” period of time over which the budget should be balanced? • The government of the time • However, the government must justify its interpretation of what is prudent and reasonable in parliament, as well as to the general pub ...
Introduntion - Hakan Berument`sHomepage
... (expenditure switching effect). Then, the net effect on trade balance will depend upon the relative magnitudes of income and expenditure switching effects. On the other hand, opportunistic government likes to increase its spending when it is possible especially just before elections or when there is ...
... (expenditure switching effect). Then, the net effect on trade balance will depend upon the relative magnitudes of income and expenditure switching effects. On the other hand, opportunistic government likes to increase its spending when it is possible especially just before elections or when there is ...
Harvard Kennedy School
... • is another instrument to affect the level of spending. • It can be defined in terms of the interest rate i, which in turn affects i-sensitive components E.g., Taylor Rule sets i. such as I & consumer durables. • Or it can be defined in terms of money supply M. – In which case an expansion is a rig ...
... • is another instrument to affect the level of spending. • It can be defined in terms of the interest rate i, which in turn affects i-sensitive components E.g., Taylor Rule sets i. such as I & consumer durables. • Or it can be defined in terms of money supply M. – In which case an expansion is a rig ...
NATIONAL OPEN UNIVERSITY OF NIGERIA MACROECONOMIC
... what you should be able to do by the time you have completed the unit. You should use these objectives to guide your study. When you have finished the unit you must go back and check whether you have achieved the objectives. If you make a habit of doing this you will significantly improve your chanc ...
... what you should be able to do by the time you have completed the unit. You should use these objectives to guide your study. When you have finished the unit you must go back and check whether you have achieved the objectives. If you make a habit of doing this you will significantly improve your chanc ...
MacroPractice
... d. leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. e. leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict. 10. The difference between the ...
... d. leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. e. leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict. 10. The difference between the ...
Optimal Reserves in Financially Closed Economies
... must manage reserves in such a way that the private sector faces the same interest rate on domestic securities as it would on foreign securities, which implies that there is no quasi-fiscal cost of holding reserves. A positive quasifiscal cost arises only if the government accumulates more reserves ...
... must manage reserves in such a way that the private sector faces the same interest rate on domestic securities as it would on foreign securities, which implies that there is no quasi-fiscal cost of holding reserves. A positive quasifiscal cost arises only if the government accumulates more reserves ...
Fiscal and monetary coordination, Reserve Bank of New Zealand
... changes to private disposable income through the taxation and benefit system. In these ways, fiscal policy affects demand and inflation pressure, in much the same way as changes in trading-partner demand for our exports, or confidence-based changes in private investment, for example. While demand – ...
... changes to private disposable income through the taxation and benefit system. In these ways, fiscal policy affects demand and inflation pressure, in much the same way as changes in trading-partner demand for our exports, or confidence-based changes in private investment, for example. While demand – ...
Searching for Non-Keynesian Effects of Fiscal Policy
... Even though fiscal policy is a classic theme in macroeconomics, there is no consensus about the size or even the sign of its effects on private sector behavior. Renewed interest in this question has been spurred by the surprising consequences of two instances of fiscal retrenchment in Europe during ...
... Even though fiscal policy is a classic theme in macroeconomics, there is no consensus about the size or even the sign of its effects on private sector behavior. Renewed interest in this question has been spurred by the surprising consequences of two instances of fiscal retrenchment in Europe during ...
Real Economic Consequences of Financial Crises
... points lower in 2009 than forecast by Danmarks Nationalbank in the 1st quarter of 2008, cf. Chart 1.1. While around half of the forecast error could be attributed to lower export market growth, the other half primarily reflected "other factors". The "other factors" item covers many different circums ...
... points lower in 2009 than forecast by Danmarks Nationalbank in the 1st quarter of 2008, cf. Chart 1.1. While around half of the forecast error could be attributed to lower export market growth, the other half primarily reflected "other factors". The "other factors" item covers many different circums ...
BNR ECONOMIC REVIEW Vol. 9
... assessing whether the various financial innovation that have taken place over the past years pose difficulties on the conduct of monetary policy in Rwanda. In the context of the current monetary policy framework, this assessment starts by examining whether the velocity of money and money multiplier ...
... assessing whether the various financial innovation that have taken place over the past years pose difficulties on the conduct of monetary policy in Rwanda. In the context of the current monetary policy framework, this assessment starts by examining whether the velocity of money and money multiplier ...
Stimulus and the great recession
... • Great nations are never impoverished by private, though they sometimes are by publick prodigality and misconduct. The whole, or almost the whole publick revenue, is in most countries employed in maintaining unproductive hands. Such are the people who compose a numerous and splendid court, a great ...
... • Great nations are never impoverished by private, though they sometimes are by publick prodigality and misconduct. The whole, or almost the whole publick revenue, is in most countries employed in maintaining unproductive hands. Such are the people who compose a numerous and splendid court, a great ...
Download paper (PDF)
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...