Resolution of Banking Crises: The Good, the Bad, and the Ugly
... backed commercial paper), without the backing of adequate capital. The growing importance of this shadow banking system highly dependent on short term funding, combined with lax regulatory oversight, was a key contributor to the asset price bubble (Gorton, 2008, Brunnermeier, 2009, and Acharya and R ...
... backed commercial paper), without the backing of adequate capital. The growing importance of this shadow banking system highly dependent on short term funding, combined with lax regulatory oversight, was a key contributor to the asset price bubble (Gorton, 2008, Brunnermeier, 2009, and Acharya and R ...
Inflation, Disinflation, and Deflation
... increases than can countries such as Zimbabwe. So Japanese monetary and fiscal policy will be more effective than Zimbabwean monetary and fiscal policy in reducing unemployment below the NAIRU. However, given a sufficiently long period of higherthan-expected inflation, the Japanese people will revis ...
... increases than can countries such as Zimbabwe. So Japanese monetary and fiscal policy will be more effective than Zimbabwean monetary and fiscal policy in reducing unemployment below the NAIRU. However, given a sufficiently long period of higherthan-expected inflation, the Japanese people will revis ...
Public debt: nothing to fear but fear itself
... Fiscal policymakers must realise that the headwinds they will face going forward are far greater than in the past. Countries did not need to default when debt ratios exceeded ...
... Fiscal policymakers must realise that the headwinds they will face going forward are far greater than in the past. Countries did not need to default when debt ratios exceeded ...
Budget Deficit, Money Supply and Inflation: The Case of Pakistan
... In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) finds no relationship between budget deficit and inflation. Neyapti’s (1998) empirical analysis based on the data set for 44 developing and ...
... In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) finds no relationship between budget deficit and inflation. Neyapti’s (1998) empirical analysis based on the data set for 44 developing and ...
What can monetary policy do?
... not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and unstable multipliers for fiscal policy or forward guidance), that have been shown by others before him, are a consequence of a ...
... not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and unstable multipliers for fiscal policy or forward guidance), that have been shown by others before him, are a consequence of a ...
School of Oriental and African Studies University of London London
... governments and central banks to influence price levels over a short time period. This discussion produces the obvious conclusion that governments and central banks do not in practice have the power to influence "the price level", because there is none. To varying degrees they can influence componen ...
... governments and central banks to influence price levels over a short time period. This discussion produces the obvious conclusion that governments and central banks do not in practice have the power to influence "the price level", because there is none. To varying degrees they can influence componen ...
The characteristics of a monetary economy: a Keynes
... economy in which money is just an instrument that makes it possible to reduce the costs of the exchange; the use of money does not change the structure of the economic system with respect to a barter economy. Like Keynes, Schumpeter states that the presence of a fiat money gives the economy a comple ...
... economy in which money is just an instrument that makes it possible to reduce the costs of the exchange; the use of money does not change the structure of the economic system with respect to a barter economy. Like Keynes, Schumpeter states that the presence of a fiat money gives the economy a comple ...
ECONOMIC BULLETIN yayah
... foreign funded capital expenditures were lower than budgeted. The budget deficit was largely financed by borrowing from the domestic securities market during the review period. On a year-on-year basis, broad money grew by 21.5 percent at the end of June 2014. Similarly, reserve money grew by 25 perc ...
... foreign funded capital expenditures were lower than budgeted. The budget deficit was largely financed by borrowing from the domestic securities market during the review period. On a year-on-year basis, broad money grew by 21.5 percent at the end of June 2014. Similarly, reserve money grew by 25 perc ...
FRBSF E L CONOMIC ETTER
... revised, and sometimes the revisions can be quite substantial. For instance, consider real GDP growth in the second quarter of 2001. According to the real-time macroeconomic data set collected by the Federal Reserve Bank of Philadelphia, it was initially estimated to be 0.7% at an annual rate; a few ...
... revised, and sometimes the revisions can be quite substantial. For instance, consider real GDP growth in the second quarter of 2001. According to the real-time macroeconomic data set collected by the Federal Reserve Bank of Philadelphia, it was initially estimated to be 0.7% at an annual rate; a few ...
IOSR Journal Of Humanities And Social Science (JHSS)
... The Purchasing Power Parity (PPP) simply states that a unit of any given currency should be able to buy the same quantity of goods in all countries. Many economists believe that the ppp describes the forces that determine exchange rates in the long run. Accordingly, the nominal exchange rate between ...
... The Purchasing Power Parity (PPP) simply states that a unit of any given currency should be able to buy the same quantity of goods in all countries. Many economists believe that the ppp describes the forces that determine exchange rates in the long run. Accordingly, the nominal exchange rate between ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... nearly zero and kept it there through 2011, but faced a liquidity trap when many banks began piling up excess reserves rather than lending the funds out to those whose financial positions had been damaged by the recession. © 2013 Pearson Education, Inc. Publishing as Prentice Hall ...
... nearly zero and kept it there through 2011, but faced a liquidity trap when many banks began piling up excess reserves rather than lending the funds out to those whose financial positions had been damaged by the recession. © 2013 Pearson Education, Inc. Publishing as Prentice Hall ...
Efficient Sovereign Default Alessandro Dovis October 12, 2013 Penn State and Princeton IES
... Lack of Commitment: Thomas and Worrall (1994), Kocherlakota (1996), Kehoe and Perri (2002), Alburquerque and Hopenhayn (2004), Aguiar, Amador and Gopinath (2009) ...
... Lack of Commitment: Thomas and Worrall (1994), Kocherlakota (1996), Kehoe and Perri (2002), Alburquerque and Hopenhayn (2004), Aguiar, Amador and Gopinath (2009) ...
The effectiveness of fiscal policy in Australia
... consumption; they are forward looking; and effectively ‘infinitely lived’ through a bequest motive inspired by each generation's concern about the welfare of the next generation.1 The set of assumptions required for full Ricardian equivalence to hold is clearly unrealistic. However, the key issue fo ...
... consumption; they are forward looking; and effectively ‘infinitely lived’ through a bequest motive inspired by each generation's concern about the welfare of the next generation.1 The set of assumptions required for full Ricardian equivalence to hold is clearly unrealistic. However, the key issue fo ...
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 better off. More formally, I shall ask whether the decentralized equilib ...
... 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 better off. More formally, I shall ask whether the decentralized equilib ...
No.376 / September 2011 External Imbalances and Macroeconomic Policy in New Zealand
... cases, the sudden reversal in private capital ‡ows has required several de…cit countries to seek o¢ cial assistance (Iceland, Ireland, Latvia, Greece and Portugal among them). In Europe, these painful lessons from the crisis have resulted in a major reform in the European-level macroeconomic policy ...
... cases, the sudden reversal in private capital ‡ows has required several de…cit countries to seek o¢ cial assistance (Iceland, Ireland, Latvia, Greece and Portugal among them). In Europe, these painful lessons from the crisis have resulted in a major reform in the European-level macroeconomic policy ...
NBER WORKING PAPER SERIES FISCAL RULES IN INDIA: ARE THEY EFFECTIVE?
... Fear that the government may, at some future instance, be tempted to inflate away part or all of the burden of the domestic-currency denominated debt, usually manifests itself before the event through the rising nominal rates associated with higher expected inflation and possibly also with a higher ...
... Fear that the government may, at some future instance, be tempted to inflate away part or all of the burden of the domestic-currency denominated debt, usually manifests itself before the event through the rising nominal rates associated with higher expected inflation and possibly also with a higher ...
eee06-Nuti 3872134 en
... great extent the interest rate is an administered price decided by the national Central Bank that could if it wished, at a pinch, eliminate in any case a small gap with the Maastricht target value. Both for inflation and interest rates the comparison with the so-called Club Med countries (Spain, Por ...
... great extent the interest rate is an administered price decided by the national Central Bank that could if it wished, at a pinch, eliminate in any case a small gap with the Maastricht target value. Both for inflation and interest rates the comparison with the so-called Club Med countries (Spain, Por ...
Non-Stationarity and Instability in Small Open
... where F is decreasing in b, b is the steady-state value of b, and F (0) = R ∗ . If a country is a net foreign borrower, it pays an interest rate that is higher than the world interest rate. The reference point for the assessment of the risk premium is the country’s steady state. Intuitively, b repre ...
... where F is decreasing in b, b is the steady-state value of b, and F (0) = R ∗ . If a country is a net foreign borrower, it pays an interest rate that is higher than the world interest rate. The reference point for the assessment of the risk premium is the country’s steady state. Intuitively, b repre ...
Journal of Financial Stability Asset prices and banking distress: A macroeconomic approach
... 1998; Diamond and Rajan, 2001, 2006), ours provides an asset-based explanation of banking distress: in taking a macroeconomic approach, we link bank assets to firms, and firms’ financial position to asset prices and macroeconomic aggregates. This goes beyond Diamond and Rajan (2006) where an exogenous ...
... 1998; Diamond and Rajan, 2001, 2006), ours provides an asset-based explanation of banking distress: in taking a macroeconomic approach, we link bank assets to firms, and firms’ financial position to asset prices and macroeconomic aggregates. This goes beyond Diamond and Rajan (2006) where an exogenous ...
L7-9InstrumentsMABP
... • 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 such as I and consumer durables. E.g., Taylor rule sets i. • Or it can be defined in terms of money supply M. – In which case it is a rightward s ...
... • 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 such as I and consumer durables. E.g., Taylor rule sets i. • Or it can be defined in terms of money supply M. – In which case it is a rightward s ...
NBK Kuwait
... supported by stronger credit conditions. (Chart 21.) Private sector credit accounts for the majority of all bank assets. The rise in foreign assets – which had been a driving force behind bank balance sheet expansion since 2011 – abated in 1H 2013. This could suggest that banks were utilizing funds ...
... supported by stronger credit conditions. (Chart 21.) Private sector credit accounts for the majority of all bank assets. The rise in foreign assets – which had been a driving force behind bank balance sheet expansion since 2011 – abated in 1H 2013. This could suggest that banks were utilizing funds ...