NBER WORKING PAPER SERIES INFLATION: THEORY AND EVIDENCE Bennett 1. McCallum
... demonstrates that the principal conclusions of theoretical analysis are not highly sensitive to details of model specification, provided that the latter posits rational agents free of money illusion. Whether one assumes finite—lived or infinite—lived agents, such models suggest that steady—state inf ...
... demonstrates that the principal conclusions of theoretical analysis are not highly sensitive to details of model specification, provided that the latter posits rational agents free of money illusion. Whether one assumes finite—lived or infinite—lived agents, such models suggest that steady—state inf ...
The Effect of Monetary Policy on Private Sector Investment in Kenya
... credit plays a significant role. Kahn (2010) explains that conventionally changes in short-term interest rates brought about by the central bank, through an open-market operations change the cost of capital, that then changes the rate of fixed investment, (housing expenditures, inventories). The cha ...
... credit plays a significant role. Kahn (2010) explains that conventionally changes in short-term interest rates brought about by the central bank, through an open-market operations change the cost of capital, that then changes the rate of fixed investment, (housing expenditures, inventories). The cha ...
princ-ch34-presentation
... The interest-rate effect helps explain why the aggregate-demand curve slopes downward: An increase in the price level raises money demand, which raises the interest rate, which reduces investment, which reduces the aggregate quantity of goods & services demanded. ...
... The interest-rate effect helps explain why the aggregate-demand curve slopes downward: An increase in the price level raises money demand, which raises the interest rate, which reduces investment, which reduces the aggregate quantity of goods & services demanded. ...
Fiscal Deficit, Trade Deficit, and Financial Account
... A more formal explanation of the triple deficits hypothesis can be started with a conventional framework of Keynesian thought, other things being equal, that twin deficits may result two possible reasons for the “third” deficit i.e. financial account deficit. The standard model of loanable fund, net ...
... A more formal explanation of the triple deficits hypothesis can be started with a conventional framework of Keynesian thought, other things being equal, that twin deficits may result two possible reasons for the “third” deficit i.e. financial account deficit. The standard model of loanable fund, net ...
Inflation in sudan.indd
... Not long enough, on the 9th of November 1981, another round of devaluation was hastily announced and as a result, the exchange rate was unified at US$ 1.11 /£S. On November 15th 1982, the fourth round of the devaluation was announced as US$ 0.7692/ £S to be followed by another devaluation policy unde ...
... Not long enough, on the 9th of November 1981, another round of devaluation was hastily announced and as a result, the exchange rate was unified at US$ 1.11 /£S. On November 15th 1982, the fourth round of the devaluation was announced as US$ 0.7692/ £S to be followed by another devaluation policy unde ...
Viewing the Current Account Deficit as a Capital Inflow
... to the type of asset it buys. In particular, the dollar can be used to purchase domestic physical capital, domestic government debt, or a foreign asset (FA) of some sort. Recalling that net issuance of government debt is equal to the government budget deficit, G - T, we have ...
... to the type of asset it buys. In particular, the dollar can be used to purchase domestic physical capital, domestic government debt, or a foreign asset (FA) of some sort. Recalling that net issuance of government debt is equal to the government budget deficit, G - T, we have ...
Why is the UK banking system so big and is that a
... face amount that is used to calculate payments made on the derivative. Data are as of end-2013 and include Barclays, Lloyds Banking Group, HSBC and Royal Bank of ...
... face amount that is used to calculate payments made on the derivative. Data are as of end-2013 and include Barclays, Lloyds Banking Group, HSBC and Royal Bank of ...
Bank Interest Rates and Loan Determinants
... present value of its future expected return. Variables of scale, such as economic activity or disposable income, accordingly reflect the ability of households to contract debt, since the expectation of higher levels of income, permitting a higher debt burden to be serviced, leads to higher indebtedne ...
... present value of its future expected return. Variables of scale, such as economic activity or disposable income, accordingly reflect the ability of households to contract debt, since the expectation of higher levels of income, permitting a higher debt burden to be serviced, leads to higher indebtedne ...
Monetary Policy and Asset Prices: When Cleaning
... credit and housing boom, central bankers thus can affect the severity of a potential bustinduced recession in the future and therefore indirectly the likelihood of reaching the ZLB. The mainstream view on monetary policy in the vicinity of the ZLB holds that interest rates should be cut faster and ...
... credit and housing boom, central bankers thus can affect the severity of a potential bustinduced recession in the future and therefore indirectly the likelihood of reaching the ZLB. The mainstream view on monetary policy in the vicinity of the ZLB holds that interest rates should be cut faster and ...
File - GBM/381 International Trade Instructor: Charissa
... – A system whereby adjustments to the par currency value are made in small, pre-announced increments to prevent destabilizing speculation. ...
... – A system whereby adjustments to the par currency value are made in small, pre-announced increments to prevent destabilizing speculation. ...
17 open economy
... well as on income and other factors. When events cause exchange rates to adjust, the levels of imports and exports will change. Changes in exports and imports can in turn affect the level of real GDP and the price level. Further, exchange rates themselves also adjust to changes in the economy. ...
... well as on income and other factors. When events cause exchange rates to adjust, the levels of imports and exports will change. Changes in exports and imports can in turn affect the level of real GDP and the price level. Further, exchange rates themselves also adjust to changes in the economy. ...
Commodity windfalls, macroeconomic management and welfare
... in the price of copper fosters the symptoms of a Dutch disease. Then we introduce an arguably active government that collects taxes from private firms, issues debt, redistributes resources back to households via transfers and invest in public capital. We ask to what extent this government may pursu ...
... in the price of copper fosters the symptoms of a Dutch disease. Then we introduce an arguably active government that collects taxes from private firms, issues debt, redistributes resources back to households via transfers and invest in public capital. We ask to what extent this government may pursu ...
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... withdrawn when the money budgeted for the fiscal expansion had been spent. The deficits, that existed after that money had been spent, were still very large. In the G7 countries they were still over 6 percent of GDP in 2012, but these deficits reflected »austerity« in the view of some economists. Se ...
... withdrawn when the money budgeted for the fiscal expansion had been spent. The deficits, that existed after that money had been spent, were still very large. In the G7 countries they were still over 6 percent of GDP in 2012, but these deficits reflected »austerity« in the view of some economists. Se ...
Monetary Policy - Federal Reserve Bank of Philadelphia
... Discuss the following: a. Which function of the Federal Reserve can be used to affect overall economic conditions by changing the growth of the money supply and, in turn, interest rates? (Monetary policy.) b. Why is the growth of the money supply critical to the economy? (The growth of the money sup ...
... Discuss the following: a. Which function of the Federal Reserve can be used to affect overall economic conditions by changing the growth of the money supply and, in turn, interest rates? (Monetary policy.) b. Why is the growth of the money supply critical to the economy? (The growth of the money sup ...
Pay settlements and average earnings outline
... The National Minimum Wage that has been relabelled by the government as the “national living wage” is a figure that has not been worked out on a rigorous basis related to the actual cost of living. Over time it is set to move toward a target rate set at 60% of average earnings, which is a valuable b ...
... The National Minimum Wage that has been relabelled by the government as the “national living wage” is a figure that has not been worked out on a rigorous basis related to the actual cost of living. Over time it is set to move toward a target rate set at 60% of average earnings, which is a valuable b ...
30 - Weebly
... money in favor of the role that credit money plays in the economy. Post-Keynesians also emphasize the role that nominal debt plays: since nominal amounts of debt are not in general linked to inflation, inflation erodes the real value of nominal debt, and deflation increases it, causing real economic ...
... money in favor of the role that credit money plays in the economy. Post-Keynesians also emphasize the role that nominal debt plays: since nominal amounts of debt are not in general linked to inflation, inflation erodes the real value of nominal debt, and deflation increases it, causing real economic ...
Economic Dualism - Central Bank of Nigeria
... the traditional agricultural sector for the modern capitalist centres, the modernformal capitalist sector was unable to absorb them, or even absorb some of the unemployed in the urban centers. As a result, because capital-intensive production did not require much labor, a different dichotomy became ...
... the traditional agricultural sector for the modern capitalist centres, the modernformal capitalist sector was unable to absorb them, or even absorb some of the unemployed in the urban centers. As a result, because capital-intensive production did not require much labor, a different dichotomy became ...
ECONOMICS - University of Maryland, College Park
... • Consequences of budget deficit – raising interest rates (Loanable funds) – crowding out consumption and investment spending – an increase in the government’s debt ...
... • Consequences of budget deficit – raising interest rates (Loanable funds) – crowding out consumption and investment spending – an increase in the government’s debt ...
Monetary Theory and Monetary Policy: Reflections on the
... economically justified and necessary, as it serves production and turnover of goods, it does not create artificial purchasing power” (Protocol, p. 2; translation by Issing). At the same time the Reichsbank apologized for not being able to satisfy fully the demand for banknotes and justified the deci ...
... economically justified and necessary, as it serves production and turnover of goods, it does not create artificial purchasing power” (Protocol, p. 2; translation by Issing). At the same time the Reichsbank apologized for not being able to satisfy fully the demand for banknotes and justified the deci ...
Monetary Policy Responses in Japan - Konstantin Wacker
... well known from another large economy, Japan. The past 25 years in Japan were characterized by GDP stagnation and persistent deflation. Between 1992 and 2014, average real GDP growth in Japan was just 0.7 percent.1 To jump-start the economy, the Bank of Japan (BoJ) implemented several monetary easin ...
... well known from another large economy, Japan. The past 25 years in Japan were characterized by GDP stagnation and persistent deflation. Between 1992 and 2014, average real GDP growth in Japan was just 0.7 percent.1 To jump-start the economy, the Bank of Japan (BoJ) implemented several monetary easin ...
Money In Modern Macro Models: A Review of the Arguments
... policy got more and more into doubt. In particular, owing to the seminal works by Kydland & Prescott (1982) and Long & Posser (1983), Real Business Cycle (RBC) and recently Dynamic Stochastic General Equilibrium (DSGE) models gained importance for monetary policy purposes. Despite these models’ theo ...
... policy got more and more into doubt. In particular, owing to the seminal works by Kydland & Prescott (1982) and Long & Posser (1983), Real Business Cycle (RBC) and recently Dynamic Stochastic General Equilibrium (DSGE) models gained importance for monetary policy purposes. Despite these models’ theo ...
Planned Investment and the Interest Rate
... Decrease in Net Taxes on the AD Curve An increase in government purchases (G) or a decrease in net taxes (T) causes the aggregate demand curve to shift to the right, from AD0 to AD1. The increase in G increases planned aggregate expenditure, which leads to an increase in output at each possible pric ...
... Decrease in Net Taxes on the AD Curve An increase in government purchases (G) or a decrease in net taxes (T) causes the aggregate demand curve to shift to the right, from AD0 to AD1. The increase in G increases planned aggregate expenditure, which leads to an increase in output at each possible pric ...
Chapter 9 Buffer stocks and price stability
... The question that arises is whether using a persistent pool of unemployed (or casualised underemployed) is the most cost effective way to achieve price stability? The ...
... The question that arises is whether using a persistent pool of unemployed (or casualised underemployed) is the most cost effective way to achieve price stability? The ...