The impact of government spending on demand
... technical discussion. The issue is whether these effects are likely to be sufficiently large to have a material impact on demand and supply within the usual timescale for monetary policy making of two to three years. (i) ...
... technical discussion. The issue is whether these effects are likely to be sufficiently large to have a material impact on demand and supply within the usual timescale for monetary policy making of two to three years. (i) ...
Four rescue measures for stagnant eurozone
... In addition to still-hidden legacy losses from the financial crisis, new losses are bound to have piled up as a result of the miserable economic performance of the eurozone during the past five to six years. So my money is on Profs Acharya and Steffen as better guides to the capital that would have ...
... In addition to still-hidden legacy losses from the financial crisis, new losses are bound to have piled up as a result of the miserable economic performance of the eurozone during the past five to six years. So my money is on Profs Acharya and Steffen as better guides to the capital that would have ...
Chinese Divisia Monetary Index and GDP Nowcasting William A
... (2012), and Belongia and Ireland (2014), find that the Divisia monetary aggregates help in forecasting movements in the key macroeconomic variables and outperform the simple-sum monetary aggregates. Rahman and Serletis (2013, 2015) find that, unlike simple sum monetary growth, increased Divisia mone ...
... (2012), and Belongia and Ireland (2014), find that the Divisia monetary aggregates help in forecasting movements in the key macroeconomic variables and outperform the simple-sum monetary aggregates. Rahman and Serletis (2013, 2015) find that, unlike simple sum monetary growth, increased Divisia mone ...
The Effect of Changes in the Federal Funds Rate on Stock Markets
... Reserve Bank, which has considerable clout in the functioning of the economy today via the implementation of monetary policy. The success of the Federal Reserve’s (Fed’s) monetary policy is usually measured by looking at economic variables such as output, inflation and unemployment. These aggregate ...
... Reserve Bank, which has considerable clout in the functioning of the economy today via the implementation of monetary policy. The success of the Federal Reserve’s (Fed’s) monetary policy is usually measured by looking at economic variables such as output, inflation and unemployment. These aggregate ...
Chapter 22 - Pearson Higher Education
... – This shows the effect of shifting the demand curve to the right by an increase in the money supply – Before the increase of M, individuals held the right amount of real cash balances at price P – However, when the money supply increases, people now hold too large real cash balances – They spend un ...
... – This shows the effect of shifting the demand curve to the right by an increase in the money supply – Before the increase of M, individuals held the right amount of real cash balances at price P – However, when the money supply increases, people now hold too large real cash balances – They spend un ...
MONETARY POLICY TRANSMISSION MECHANISM IN ROMANIA
... 2. Literature on monetary policy transmission mechanism in transition countries The use of VAR models to analyze the monetary policy transmission mechanism is widely spread in the economic literature. These models were used both for developed countries and emerging countries. The VAR models are cons ...
... 2. Literature on monetary policy transmission mechanism in transition countries The use of VAR models to analyze the monetary policy transmission mechanism is widely spread in the economic literature. These models were used both for developed countries and emerging countries. The VAR models are cons ...
Deflation fears in developed economies
... high cause a decline in consumption and capital investment. An inflation path below what was expected at the time of borrowing increases the real debt burden. If all debtors were able to avoid default, then income would be reallocated to creditors in a period of deflation. And since creditors tend t ...
... high cause a decline in consumption and capital investment. An inflation path below what was expected at the time of borrowing increases the real debt burden. If all debtors were able to avoid default, then income would be reallocated to creditors in a period of deflation. And since creditors tend t ...
Chapter 22
... – This shows the effect of shifting the demand curve to the right by an increase in the money supply – Before the increase of M, individuals held the right amount of real cash balances at price P – However, when the money supply increases, people now hold too large real cash balances – They spend un ...
... – This shows the effect of shifting the demand curve to the right by an increase in the money supply – Before the increase of M, individuals held the right amount of real cash balances at price P – However, when the money supply increases, people now hold too large real cash balances – They spend un ...
FiMod – a DSGE model for fiscal policy simulations
... But which taxes should be increased? Which spending components should be cut? All across Europe, countries such as Germany, Greece, Portugal, Spain and others have put forward consolidation plans that include cuts in public employment, public wages and public investment as well as increases in VAT a ...
... But which taxes should be increased? Which spending components should be cut? All across Europe, countries such as Germany, Greece, Portugal, Spain and others have put forward consolidation plans that include cuts in public employment, public wages and public investment as well as increases in VAT a ...
A Antonio Martino
... temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedman 1968, 1975, 1977; Bordo and Schwartz 1983). Manipulation of monetary ...
... temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedman 1968, 1975, 1977; Bordo and Schwartz 1983). Manipulation of monetary ...
Monetary Explanations of the Great Depression
... ciently to inform Fed policymakers at the time of the Great Depression—that analysis as found in Friedman and Schwartz (1963) would have been too revolutionary (see Steindl 1995 and Wicker 1999, countered by Humphrey 2001). Although in the minority at the time, Currie (1934) argues that the lack of ...
... ciently to inform Fed policymakers at the time of the Great Depression—that analysis as found in Friedman and Schwartz (1963) would have been too revolutionary (see Steindl 1995 and Wicker 1999, countered by Humphrey 2001). Although in the minority at the time, Currie (1934) argues that the lack of ...
Axel A Weber: The role of interest rates in theory and practice
... The concept of a natural rate of interest goes back to Wicksell. He defined it as the level of the real interest rate at which prices have no tendency to move either upward or downward. The starting point of his analysis is the assumption that any movement in the price of a single good must have bee ...
... The concept of a natural rate of interest goes back to Wicksell. He defined it as the level of the real interest rate at which prices have no tendency to move either upward or downward. The starting point of his analysis is the assumption that any movement in the price of a single good must have bee ...
The Unemployment Bias of the New Consensus View of
... Lindsey offered this argument in an attempt to explain that the NAIRU is invariant to aggregate demand, and monetary policy alike. The argument is also offered in the standard New Consensus framework, where there are one-off output costs and permanent benefits from price stability. Accepting all the ...
... Lindsey offered this argument in an attempt to explain that the NAIRU is invariant to aggregate demand, and monetary policy alike. The argument is also offered in the standard New Consensus framework, where there are one-off output costs and permanent benefits from price stability. Accepting all the ...
A Framework for Reducing the Lebanese Budget Deficit
... segments of the state's fiscal policy related to each other. It would be prudent to include the annual spending from the $1 billion project within a consolidated state budget. On September 24, 1997 the Council of Ministers failed to approve the so- called "$1 billion project" now reduced to $800 mil ...
... segments of the state's fiscal policy related to each other. It would be prudent to include the annual spending from the $1 billion project within a consolidated state budget. On September 24, 1997 the Council of Ministers failed to approve the so- called "$1 billion project" now reduced to $800 mil ...
Some Monetary Facts - Federal Reserve Bank of Minneapolis
... While correlations are not direct evidence of causality, they do lend support to causal hypotheses that yield predictions consistent with the correlations. Consider, for example, the hypothesis that a monetary policy with a higher growth rate of money will result in a higher inflation rate than a po ...
... While correlations are not direct evidence of causality, they do lend support to causal hypotheses that yield predictions consistent with the correlations. Consider, for example, the hypothesis that a monetary policy with a higher growth rate of money will result in a higher inflation rate than a po ...
... flows, exchange rates are central macroeconomic variables. As such, they influence, and are influenced by, all of the important forces of the economy. The general 1970s move to more flexible exchange rates has given rise to a variety of apparently competing theories of exchange rate determination. S ...
Chapter 18 Preview Macroeconomic Goals Macroeconomic Goals
... of the non-reserve financial account, gold earned from exports flows into the country—raising prices in that country and lowering prices in foreign countries. Goods from the domestic country become expensive and goods from foreign countries become cheap, reducing the current account surplus of the ...
... of the non-reserve financial account, gold earned from exports flows into the country—raising prices in that country and lowering prices in foreign countries. Goods from the domestic country become expensive and goods from foreign countries become cheap, reducing the current account surplus of the ...
Chapter 18
... fixed exchange rates, using the US dollar as the reserve currency. 5. The IMF was also established to provide countries with financing for balance of payments deficits and to judge if changes in fixed rates were necessary. 6. Under the Bretton Woods system, fiscal policies were used to achieve inter ...
... fixed exchange rates, using the US dollar as the reserve currency. 5. The IMF was also established to provide countries with financing for balance of payments deficits and to judge if changes in fixed rates were necessary. 6. Under the Bretton Woods system, fiscal policies were used to achieve inter ...
Practice Test # 3
... there was an inflationary gap in the economy and that there needed to be a reduction to be operating at potential rather than above it. This would reduce the price level in the economy and reduce any inflation that was occurring due to this over-heated economy. If there is a shift inward MS (i.e. fr ...
... there was an inflationary gap in the economy and that there needed to be a reduction to be operating at potential rather than above it. This would reduce the price level in the economy and reduce any inflation that was occurring due to this over-heated economy. If there is a shift inward MS (i.e. fr ...
NATIONAL BANK OF POLAND WORKING PAPER No. 135
... demand function are able to reflect the long-term relationship between money Other microeconomic justification for including money in macroeconomic models is provided by cash-in-advance models (CIA, Clower 1967) in which the importance of money results from the technology of concluding transactions, ...
... demand function are able to reflect the long-term relationship between money Other microeconomic justification for including money in macroeconomic models is provided by cash-in-advance models (CIA, Clower 1967) in which the importance of money results from the technology of concluding transactions, ...
NBER WORKING PAPER SERIES THE DOT-COM BUBBLE, THE BUSH DEFICITS Aart Kraay
... Over the past decade the US has experienced widening current account deficits and a steady deterioration of its net foreign asset position. During the second half of the 1990s, this deterioration was fueled by foreign investment in a booming US stock market. During the first half of the 2000s, this ...
... Over the past decade the US has experienced widening current account deficits and a steady deterioration of its net foreign asset position. During the second half of the 1990s, this deterioration was fueled by foreign investment in a booming US stock market. During the first half of the 2000s, this ...
The Misperceptions Theory and the Nonneutrality of Money
... – Besides, fiscal policy increases output by making workers worse off, since they face higher taxes – Instead, government spending should be determined by cost-benefit analysis ...
... – Besides, fiscal policy increases output by making workers worse off, since they face higher taxes – Instead, government spending should be determined by cost-benefit analysis ...
The Conditional Imminence of the Reserve Currency Transition
... American tourist goes abroad, he or she can often and in many places buy goods and services for dollars because the latter are widely accepted or easily exchanged for local currency. A Thai tourist, on the other hand, will have had to go to the bank to get the relevant local currency for his expendi ...
... American tourist goes abroad, he or she can often and in many places buy goods and services for dollars because the latter are widely accepted or easily exchanged for local currency. A Thai tourist, on the other hand, will have had to go to the bank to get the relevant local currency for his expendi ...
Taylor Economics Chapter 33 Test Bank
... Multiple Choice Questions 1. When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? A. central bank prints more money B. increase in household savings C. decrease in borrowing by pri ...
... Multiple Choice Questions 1. When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? A. central bank prints more money B. increase in household savings C. decrease in borrowing by pri ...
NBER WORXING PAPER SERIES CURRENT ACCOUNT AND BUDGET DEFICITS IN AN
... not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3) below) domestic bonds issued by the government and held by the private sector would cancel out leaving the budget constrain ...
... not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3) below) domestic bonds issued by the government and held by the private sector would cancel out leaving the budget constrain ...