département de science économique department of economics
... Does money cause real output? If the Federal Reserve were suddenly, capriciously, without warning, to cut the money supply by 20%, what e¤ect would this have? Nearly all macro-economists would agree that the cut in the money supply would cause a fall in aggregate demand, and that the fall in aggrega ...
... Does money cause real output? If the Federal Reserve were suddenly, capriciously, without warning, to cut the money supply by 20%, what e¤ect would this have? Nearly all macro-economists would agree that the cut in the money supply would cause a fall in aggregate demand, and that the fall in aggrega ...
Unexpected Consequences of Ricardian Expectations
... from capital ownership, but it does not include income from interest on government bonds, to be introduced later. The economy is initially in full equilibrium with an interest rate r > g . The rate of interest is assumed to exceed the growth rate. This assumption is also made by Barro; otherwise the ...
... from capital ownership, but it does not include income from interest on government bonds, to be introduced later. The economy is initially in full equilibrium with an interest rate r > g . The rate of interest is assumed to exceed the growth rate. This assumption is also made by Barro; otherwise the ...
The theoretical and empirical credibility of commodity money
... necessary, and the anchor is a money commodity. Commodity money, which is central to the irresolvable contradiction between value in use and value in exchange, proves the key to unlock both the mysteries of the increasingly esoteric financial system and why capital generates periodic financial disru ...
... necessary, and the anchor is a money commodity. Commodity money, which is central to the irresolvable contradiction between value in use and value in exchange, proves the key to unlock both the mysteries of the increasingly esoteric financial system and why capital generates periodic financial disru ...
Currency Wars, Coordination, and Capital Controls
... advice, but if it is correct, countries should do much of it on their own, whether or not other countries do what is asked of them. I shall instead take coordination to mean a set of changes in policies which makes all countries agree makes them better off. More formally, I shall ask whether the dece ...
... advice, but if it is correct, countries should do much of it on their own, whether or not other countries do what is asked of them. I shall instead take coordination to mean a set of changes in policies which makes all countries agree makes them better off. More formally, I shall ask whether the dece ...
I - Niehaus Center for Globalization and Governance
... population. This should especially be the case when policymaking authority is less-thanfully centralized: leaders will face strong incentives to build coalitions with a variety of social groups when power is spread across different regions or branches of government (Bates 1997). Most politicians wil ...
... population. This should especially be the case when policymaking authority is less-thanfully centralized: leaders will face strong incentives to build coalitions with a variety of social groups when power is spread across different regions or branches of government (Bates 1997). Most politicians wil ...
Highly Important Question National Income and
... 35. Explain the concept of deflationary gap. Explain two measures by which a central bank can attempt to reduce this gap. 36. State whether the following statements are true or false. Give reasons for your answer: (a) When marginal propensity to consume is greater than marginal propensity to save, ...
... 35. Explain the concept of deflationary gap. Explain two measures by which a central bank can attempt to reduce this gap. 36. State whether the following statements are true or false. Give reasons for your answer: (a) When marginal propensity to consume is greater than marginal propensity to save, ...
Budget Balance and Trade Balance: Kin or Strangers A Case
... Equation (3) states that the government budget balance comprises the trade balance and the excess of private investment over private savings (I – S). It provides the fundamentals for the Keynesian proposition of the ‘twin deficits’, i.e. the budget deficit and the trade deficit are closely linked. T ...
... Equation (3) states that the government budget balance comprises the trade balance and the excess of private investment over private savings (I – S). It provides the fundamentals for the Keynesian proposition of the ‘twin deficits’, i.e. the budget deficit and the trade deficit are closely linked. T ...
Macro coordination: Forward Guidance as `cheap
... that it incorporates Say’s Law: so supply automatically creates its own demand. How so? Trade is barter with ‘all units ... swapped on a one-for-one basis and promptly consumed: consequently, with the demand of the employed being what they produce, and the demand of the unemployed being zero, a shif ...
... that it incorporates Say’s Law: so supply automatically creates its own demand. How so? Trade is barter with ‘all units ... swapped on a one-for-one basis and promptly consumed: consequently, with the demand of the employed being what they produce, and the demand of the unemployed being zero, a shif ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... On the other hand, those who support large holdings of reserves argue that the opportunity cost of holding the foreign reserves is small compared to the economic consequences of sharp devaluation of the currency (Aizenmanand Marion 2004). Reserves are held to control the exchange rate of a currency ...
... On the other hand, those who support large holdings of reserves argue that the opportunity cost of holding the foreign reserves is small compared to the economic consequences of sharp devaluation of the currency (Aizenmanand Marion 2004). Reserves are held to control the exchange rate of a currency ...
Pay settlements and average earnings outline
... Before public sector average earnings growth dropped well below the private sector rate in 2013, average earnings were often used as a basis to argue that the public sector continues to see improvements in pay that are not matched by the private sector and particularly as a basis for attacking pay p ...
... Before public sector average earnings growth dropped well below the private sector rate in 2013, average earnings were often used as a basis to argue that the public sector continues to see improvements in pay that are not matched by the private sector and particularly as a basis for attacking pay p ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... had to purchase CIS with U.S. dollars at this rate from the Exchange Fund. The reserves accumulated were invested mainly in interest-bearing U.S. government securities. Table 15.1 summarizes the historical evolution of Hong Kong’s monetary institutions. Several new changes to the currency board syst ...
... had to purchase CIS with U.S. dollars at this rate from the Exchange Fund. The reserves accumulated were invested mainly in interest-bearing U.S. government securities. Table 15.1 summarizes the historical evolution of Hong Kong’s monetary institutions. Several new changes to the currency board syst ...
86007026I_en.pdf
... by a boom in bank lending, which in turn has fuelled a boom in consumption spending (Sachs, Tornell and Velasco, 1996). Initially, pegs tend to lower inflation, which in turn produces a rise in real-money balances, both as a result of central bank intervention to peg the currency and of higher money ...
... by a boom in bank lending, which in turn has fuelled a boom in consumption spending (Sachs, Tornell and Velasco, 1996). Initially, pegs tend to lower inflation, which in turn produces a rise in real-money balances, both as a result of central bank intervention to peg the currency and of higher money ...
A Modest Proposal for Reforming the Undergraduate
... economy (One prominent example of such a relationship is: while the net financial wealth of each person might be positive or negative, it must necessarily be zero in a closed economy or in the world.) But although this fallacy of composition is often mentioned, it is not treated systematically. This ...
... economy (One prominent example of such a relationship is: while the net financial wealth of each person might be positive or negative, it must necessarily be zero in a closed economy or in the world.) But although this fallacy of composition is often mentioned, it is not treated systematically. This ...
The Norwegian banking crisis
... some extent for small …rms. In addition, 8 subsidiaries of foreign banks had a combined market share of only 0.5 per cent of the domestic market for bank credit. Only two commercial banks were operating nationwide with a combined market share of 27 per cent. In addition, there were three large but m ...
... some extent for small …rms. In addition, 8 subsidiaries of foreign banks had a combined market share of only 0.5 per cent of the domestic market for bank credit. Only two commercial banks were operating nationwide with a combined market share of 27 per cent. In addition, there were three large but m ...
Paper - Department of Economics | Washington University in St. Louis
... real interest rate becomes negative for several periods.4 The reason is that savings must be reallocated to lower productivity entrepreneurs, but they will only be willing to do it for a lower interest rate. To put it differently, the “demand” for loans falls, which in turn pushes down the real inter ...
... real interest rate becomes negative for several periods.4 The reason is that savings must be reallocated to lower productivity entrepreneurs, but they will only be willing to do it for a lower interest rate. To put it differently, the “demand” for loans falls, which in turn pushes down the real inter ...
Arab Republic of Egypt Request For Extended Arrangement Under
... exchange shortages. The new exchange rate regime will be supported by prudently tight monetary policy to anchor inflation expectations, contain domestic and external demand pressures, and allow accumulation of foreign exchange reserves. “Reducing fiscal deficits considerably and thereby placing publ ...
... exchange shortages. The new exchange rate regime will be supported by prudently tight monetary policy to anchor inflation expectations, contain domestic and external demand pressures, and allow accumulation of foreign exchange reserves. “Reducing fiscal deficits considerably and thereby placing publ ...
Internal Balance
... making the real value of the monetary unit less certain and thus a less useful guide for economic decisions. ...
... making the real value of the monetary unit less certain and thus a less useful guide for economic decisions. ...
Fiscal Consequences for Mexico of Adopting the Dollar
... the theory of corporate finance, asking if dollarization will reduce the cost of funds. Section V presents annual estimates of the unanticipated returns to holders of US government debt, to show that these are substantial and are to some extent timed to match legitimate periods of fiscal stress, as ...
... the theory of corporate finance, asking if dollarization will reduce the cost of funds. Section V presents annual estimates of the unanticipated returns to holders of US government debt, to show that these are substantial and are to some extent timed to match legitimate periods of fiscal stress, as ...
Fiscal Policy Framework in West African Monetary Zone (WAMZ
... Through literature, fiscal sustainability in a monetary union was subject of several studies in a different point of view. The classic test is that of Hamilton and Flavin (1986), who implemented the Flood-Garber (1980) test for price bubbles to the PVBC for the postwar United States. These two autho ...
... Through literature, fiscal sustainability in a monetary union was subject of several studies in a different point of view. The classic test is that of Hamilton and Flavin (1986), who implemented the Flood-Garber (1980) test for price bubbles to the PVBC for the postwar United States. These two autho ...
ECON 2020-001 Principles of Macroeconomics
... weather as precisely as they can guess the day after tomorrow's . But no bank or big business would be so rash as to consult astrologers rather than trained econometricians, or try to wing it by guess and by gosh. Paul A. Samuelson, 1991. Cours e Objective The ambition of this course is to provide y ...
... weather as precisely as they can guess the day after tomorrow's . But no bank or big business would be so rash as to consult astrologers rather than trained econometricians, or try to wing it by guess and by gosh. Paul A. Samuelson, 1991. Cours e Objective The ambition of this course is to provide y ...
Emerging countries` foreign exchange reserves and accumulation
... (1) In addition to their Central Bank reserves, several countries have set up sovereign wealth funds (SWF). Most of these SWFs are funded through the national budget (as in the case of Russia) and thus serve as stabilization funds for use in times of crisis. In some cases, as in that of China, the S ...
... (1) In addition to their Central Bank reserves, several countries have set up sovereign wealth funds (SWF). Most of these SWFs are funded through the national budget (as in the case of Russia) and thus serve as stabilization funds for use in times of crisis. In some cases, as in that of China, the S ...
View/Open
... increase in government spending (although the Keynesian school in the original version sees the effects of the increase in public spending to changes in employment and output, and later the effects of a decrease in tax revenues). In general, differences in attitudes about the deficit and public debt ...
... increase in government spending (although the Keynesian school in the original version sees the effects of the increase in public spending to changes in employment and output, and later the effects of a decrease in tax revenues). In general, differences in attitudes about the deficit and public debt ...