East Africa Macroeconomic View
... making dollar denominated debt more expensive to service. According to the Bank for International Settlements, there is approximately $1.2tr in dollar based bonds outstanding from non-bank emerging markets, up from $254.0B in 2006. Moreover, the rising dollar would cause subdued demand in commoditie ...
... making dollar denominated debt more expensive to service. According to the Bank for International Settlements, there is approximately $1.2tr in dollar based bonds outstanding from non-bank emerging markets, up from $254.0B in 2006. Moreover, the rising dollar would cause subdued demand in commoditie ...
Failures of Financial Supervision and Systemic Banking Crises:Who Pays the Bill?
... indeed, this is not a variable that captures the effect of real economic costs, but only the redistributive transfers. For this reason, a most recent literature has focused attention on the loss of output, throughout it is possible to estimate the real effect of crises on economy. A first estimate ...
... indeed, this is not a variable that captures the effect of real economic costs, but only the redistributive transfers. For this reason, a most recent literature has focused attention on the loss of output, throughout it is possible to estimate the real effect of crises on economy. A first estimate ...
Government Debt
... We then look at how government debt affects the economy. Section 15-3 describes the traditional view of government debt, according to which government borrowing reduces national saving and crowds out capital accumulation. This view is held by most economists and has been implicit in the discussion o ...
... We then look at how government debt affects the economy. Section 15-3 describes the traditional view of government debt, according to which government borrowing reduces national saving and crowds out capital accumulation. This view is held by most economists and has been implicit in the discussion o ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... bank securities at market prices, but holdings of those securities could not expand by more than 10 percent per year.4 The plan effectively converted the central bank into a currency board that could issue domestic currency only in exchange for foreign currency at a fixed rate. The government encoura ...
... bank securities at market prices, but holdings of those securities could not expand by more than 10 percent per year.4 The plan effectively converted the central bank into a currency board that could issue domestic currency only in exchange for foreign currency at a fixed rate. The government encoura ...
Is higher debt more risky?
... frequency to a once in 125 year frequency. This latter still represents a rare event. There is no evidence that high debt/GDP means a higher risk of high or hyperinflation. Further there is little evidence of a systematic relationship between high debt and high real interest rates. As we are current ...
... frequency to a once in 125 year frequency. This latter still represents a rare event. There is no evidence that high debt/GDP means a higher risk of high or hyperinflation. Further there is little evidence of a systematic relationship between high debt and high real interest rates. As we are current ...
BALANCE OF PAYMENTS ADJUSTMENT
... then imports will exceed exports, resulting in a balance of payments deficit. If the opposite occurs, i.e. where income exceeds absorption, then the balance of payments will be in surplus. A balance of payments deficit can, therefore, only be corrected if the level of absorption changes relative to ...
... then imports will exceed exports, resulting in a balance of payments deficit. If the opposite occurs, i.e. where income exceeds absorption, then the balance of payments will be in surplus. A balance of payments deficit can, therefore, only be corrected if the level of absorption changes relative to ...
Rotten Parents and Disciplined Children: A Politico
... with large governments, such as the Scandinavian countries, run tighter fiscal policies than countries such as Greece and Italy, which have large debt and, arguably, provide public goods less efficiently. The theory predicts a stark divergence when governments can use lump-sum taxes: All countries, ...
... with large governments, such as the Scandinavian countries, run tighter fiscal policies than countries such as Greece and Italy, which have large debt and, arguably, provide public goods less efficiently. The theory predicts a stark divergence when governments can use lump-sum taxes: All countries, ...
THE FIRST GREAT DEPRESSION OF THE 21ST CENTURY
... is a Great Depression. It was triggered by a financial crisis in the US, but that was not its cause. This crisis is an absolutely normal phase of a longstanding recurrent pattern of capitalist accumulation in which long booms eventually give way to long downturns. When this transition occurs, the he ...
... is a Great Depression. It was triggered by a financial crisis in the US, but that was not its cause. This crisis is an absolutely normal phase of a longstanding recurrent pattern of capitalist accumulation in which long booms eventually give way to long downturns. When this transition occurs, the he ...
Staff Report
... consolidation could be considered to reduce public debt further as well as create more fiscal space for the government to respond effectively to future shocks. In order to achieve consolidation as well as allow the government to provide key public goods and services it will be essential to raise the ...
... consolidation could be considered to reduce public debt further as well as create more fiscal space for the government to respond effectively to future shocks. In order to achieve consolidation as well as allow the government to provide key public goods and services it will be essential to raise the ...
algierslessprocyclical
... the 2001-2007 expansion to run budget surpluses. Instead they ran up a lot of debt. Thus by 2010, they felt constrained by that debt to launch fiscal tightening at a time when unemployment was still very high. That describes a decade of fiscal policy that was procyclical, that is, destabilizing. Bia ...
... the 2001-2007 expansion to run budget surpluses. Instead they ran up a lot of debt. Thus by 2010, they felt constrained by that debt to launch fiscal tightening at a time when unemployment was still very high. That describes a decade of fiscal policy that was procyclical, that is, destabilizing. Bia ...
From the impossible monetary trinity towards economic depression*
... of the country. We can term this phenomenon as the impossible monetary trinity. In such conditions the Croatian development strategy suffers too large constraints in order to successfully overcome long-term recession which transited into the state of depression of the Croatian economy in whole, for ...
... of the country. We can term this phenomenon as the impossible monetary trinity. In such conditions the Croatian development strategy suffers too large constraints in order to successfully overcome long-term recession which transited into the state of depression of the Croatian economy in whole, for ...
Banking Crises and Crises Dating: Theory and Evidence*
... all the four BC indicators considered —it turns out that the probability of a systemic bank shock in countries where explicit deposit insurance is in place may be even lower than in countries that lack such a system. Lastly, we find that exchange rate depreciations, the worsening of terms of trade, ...
... all the four BC indicators considered —it turns out that the probability of a systemic bank shock in countries where explicit deposit insurance is in place may be even lower than in countries that lack such a system. Lastly, we find that exchange rate depreciations, the worsening of terms of trade, ...
Chapter 16 Output and the Exchange Rate in the Short Run
... It is derived by the schedule of interest rate and output combinations that are consistent with equilibrium in the domestic money market and the foreign exchange market. ...
... It is derived by the schedule of interest rate and output combinations that are consistent with equilibrium in the domestic money market and the foreign exchange market. ...
NBER WORKING PAPER SERIES DO CAPITAL ADEQUACY REQUIREMENTS MATTER FOR MONETARY POLICY?
... Next we need to model the relationship between bank deposits and bank capital on the one hand, and macroeconomic variables like output, interest rates, and inßation on the other. We assume that the level of real bank deposits, D, depends on both the level of real output and the real short-term inter ...
... Next we need to model the relationship between bank deposits and bank capital on the one hand, and macroeconomic variables like output, interest rates, and inßation on the other. We assume that the level of real bank deposits, D, depends on both the level of real output and the real short-term inter ...
economic growth - The Bleyzer Foundation
... regarded as a great achievement taking into account the pressures associated with elections and accelerating dynamics of the international oil prices. Steady disinflation throughout the year was the result of a combination of prudent fiscal and accommodative monetary policies. During the year, the N ...
... regarded as a great achievement taking into account the pressures associated with elections and accelerating dynamics of the international oil prices. Steady disinflation throughout the year was the result of a combination of prudent fiscal and accommodative monetary policies. During the year, the N ...
ec22 - Caritas University
... supply. This is because the country’s financial markets are still not relatively developed. Another type of money supply is the base money identified as M0. It comprises of all currencies in circulation and all reserves of banks including the Central Bank. It is a high powered money used in creating ...
... supply. This is because the country’s financial markets are still not relatively developed. Another type of money supply is the base money identified as M0. It comprises of all currencies in circulation and all reserves of banks including the Central Bank. It is a high powered money used in creating ...
NBER WORKING PAPER SERIES MACROECONOMIC RESPONSES BY DEVELOPING COUNTRIES TO CHANGES
... than in the rural sector), a problem that is sometimes compounded by a policy of paving higher food subsidies to urban than to rural consumers. Many other forms of government—created or government—sponsored ...
... than in the rural sector), a problem that is sometimes compounded by a policy of paving higher food subsidies to urban than to rural consumers. Many other forms of government—created or government—sponsored ...
Question No: 2 ( M - 1 )
... The primary disagreement between new classical and new Keynesian economists is over how quickly wages and prices adjust. New classical economists build their macroeconomic theories on the assumption that wages and prices are flexible. Question No: 23 (M-1) The aggregate demand curve is downward slop ...
... The primary disagreement between new classical and new Keynesian economists is over how quickly wages and prices adjust. New classical economists build their macroeconomic theories on the assumption that wages and prices are flexible. Question No: 23 (M-1) The aggregate demand curve is downward slop ...
Government Spending Might Not Create Jobs, Even during
... the expenditure is financed by borrowing, then this borrowing might exert upward pressure on interest rates, which, in turn, would cause a reduction in private investment. Similarly, a surge in fiscal spending may bid up wages, thereby reducing the demand for labor in the private sector. Times of hi ...
... the expenditure is financed by borrowing, then this borrowing might exert upward pressure on interest rates, which, in turn, would cause a reduction in private investment. Similarly, a surge in fiscal spending may bid up wages, thereby reducing the demand for labor in the private sector. Times of hi ...
LM Curve
... Figure 4-10 The Effect on Real Income of a Fiscal Stimulus With Three Alternative Monetary Policies (1 of 3) ...
... Figure 4-10 The Effect on Real Income of a Fiscal Stimulus With Three Alternative Monetary Policies (1 of 3) ...
Document
... 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. ...
Document
... external balance, perfect capital mobility and flexible exchange rates. Expansionary fiscal policy shifts the IS to IS’ to point F at Y=1500. But this tends to increase i to 6.25% at point E’. This leads to massive capital inflows and appreciation. Exports decrease and imports increase and shifts IS ...
... external balance, perfect capital mobility and flexible exchange rates. Expansionary fiscal policy shifts the IS to IS’ to point F at Y=1500. But this tends to increase i to 6.25% at point E’. This leads to massive capital inflows and appreciation. Exports decrease and imports increase and shifts IS ...
Slide - MyWeb
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...