Inflation and Hyperinflation
... rate of inflation. When inflation rises the rate of the inflation tax (π) increases, but the base (L(π)) on which the tax is levied decreases since the real monetary base is reduced as individual reduce their money demand. The bell shape of the steady-state seigniorage Laffer curve is due to the fac ...
... rate of inflation. When inflation rises the rate of the inflation tax (π) increases, but the base (L(π)) on which the tax is levied decreases since the real monetary base is reduced as individual reduce their money demand. The bell shape of the steady-state seigniorage Laffer curve is due to the fac ...
debt and macroeconomic stability
... amplified, particularly when asset price boom-bust cycles act through the value of collateral and associated margin calls, which accentuate cyclical fluctuations and generate debt-deflation pressures. Borrowers using assets as collateral are limited in their ability to borrow if the market value of ...
... amplified, particularly when asset price boom-bust cycles act through the value of collateral and associated margin calls, which accentuate cyclical fluctuations and generate debt-deflation pressures. Borrowers using assets as collateral are limited in their ability to borrow if the market value of ...
Slide 1
... ◦ Commit to the target and keep increasing money supply in a sustained fashion ◦ Eventually, public start expecting future inflation ◦ Currency starts depreciating ◦ Spending, investment, and demand for exports restart the growth process… ...
... ◦ Commit to the target and keep increasing money supply in a sustained fashion ◦ Eventually, public start expecting future inflation ◦ Currency starts depreciating ◦ Spending, investment, and demand for exports restart the growth process… ...
Macroeconomic Modeling for Monetary Policy
... assess the implications of different policy paths for the economy. Within the last decade, however, quantitative macroeconomic frameworks for monetary policy evaluation have made a comeback. What facilitated the development of these frameworks were two independent literatures that emerged in respons ...
... assess the implications of different policy paths for the economy. Within the last decade, however, quantitative macroeconomic frameworks for monetary policy evaluation have made a comeback. What facilitated the development of these frameworks were two independent literatures that emerged in respons ...
The long shadow of a fiscal expansion
... Second, we assess the long run consequences of this financing choice. We show that after the end of the fiscal stimulus, the off-balance sheet financial institutions continued to grow as local governments found themselves with powerful new tool to circumvent the financial controls on their budgets. ...
... Second, we assess the long run consequences of this financing choice. We show that after the end of the fiscal stimulus, the off-balance sheet financial institutions continued to grow as local governments found themselves with powerful new tool to circumvent the financial controls on their budgets. ...
The Fisher Relation in the Great Depression and the Great Recession
... Meltzer’s basic point is well taken. A good example, recently documented by Romer and Romer (2012), of how even well informed contemporary commentary stopped short of explicitly deploying the distinction is provided by Business Week magazine. Here, the observation that deflation was interacting with ...
... Meltzer’s basic point is well taken. A good example, recently documented by Romer and Romer (2012), of how even well informed contemporary commentary stopped short of explicitly deploying the distinction is provided by Business Week magazine. Here, the observation that deflation was interacting with ...
File
... population lead to a lower percentage of teenagers in the labor force, we would expect the natural rate of unemployment to decrease. In the 1990s, there were fewer teenagers than adults in the labor force. This change in demographics appears to have been what caused the natural rate of unemployment ...
... population lead to a lower percentage of teenagers in the labor force, we would expect the natural rate of unemployment to decrease. In the 1990s, there were fewer teenagers than adults in the labor force. This change in demographics appears to have been what caused the natural rate of unemployment ...
Central banks and the global debt overhang
... Good morning, ladies and gentlemen. It is an honour and a pleasure to be able to address you on the occasion of the 50th SEACEN Governors’ Conference in Port Moresby. For this, I thank Governor Bakani, all SEACEN Governors and the conference organisers. In my address, I will focus on what is a centr ...
... Good morning, ladies and gentlemen. It is an honour and a pleasure to be able to address you on the occasion of the 50th SEACEN Governors’ Conference in Port Moresby. For this, I thank Governor Bakani, all SEACEN Governors and the conference organisers. In my address, I will focus on what is a centr ...
Monthly statistics on the Public Sector Finances: A methodological
... particularly important or difficult decisions, makes use of its panel of classification experts, known as the National Accounts Classification Committee (NACC). The international statistical manuals (ESA95, SNA93 etc) provide the broad framework and principles for making classification decisions. It ...
... particularly important or difficult decisions, makes use of its panel of classification experts, known as the National Accounts Classification Committee (NACC). The international statistical manuals (ESA95, SNA93 etc) provide the broad framework and principles for making classification decisions. It ...
annual advantage forum april 27th, 2015 at fondazione giorgio cini
... sector’s contribution to employment creation is through following key aspects: ⇒ Filling the funding gap for projects; ⇒ Creating a more competitive environment that enhances expansion; ⇒ Providing technological and management expertise; and ⇒ Reducing the business operating costs hence attracting m ...
... sector’s contribution to employment creation is through following key aspects: ⇒ Filling the funding gap for projects; ⇒ Creating a more competitive environment that enhances expansion; ⇒ Providing technological and management expertise; and ⇒ Reducing the business operating costs hence attracting m ...
Memoirs of a Would-be Macroeconomist
... impact on my own thinking, and such ideas will not be covered here. Organizing this intellectual history has been a challenge. There is a multi-dimensional matrix to be filled in. One dimension consists of different macroeconomic viewpoints. These tend to go by the pretentious term “models,” such as ...
... impact on my own thinking, and such ideas will not be covered here. Organizing this intellectual history has been a challenge. There is a multi-dimensional matrix to be filled in. One dimension consists of different macroeconomic viewpoints. These tend to go by the pretentious term “models,” such as ...
ISLM: Part V: A Fiscal and Monetary Workout
... Using this analysis, we see that the multiplier effect is sometimes not as great as the simple multipliers imply, owing to a change in the rate of interest and hence a movement along the demand for investment funds. In a number of applications, however, the simple multipliers do apply. That is, ΔY = ...
... Using this analysis, we see that the multiplier effect is sometimes not as great as the simple multipliers imply, owing to a change in the rate of interest and hence a movement along the demand for investment funds. In a number of applications, however, the simple multipliers do apply. That is, ΔY = ...
ECONOMICS AND ECONOMIC HISTORY
... probability and statistics; the linear regression model: the two-variable model, estimation and hypothesis testing; multiple regression estimation, goodness of fit and hypothesis testing; functional forms of regression models: how to measure elasticity and the growth rate, reciprocal models; regress ...
... probability and statistics; the linear regression model: the two-variable model, estimation and hypothesis testing; multiple regression estimation, goodness of fit and hypothesis testing; functional forms of regression models: how to measure elasticity and the growth rate, reciprocal models; regress ...
Comparing the monetary transmission mechanism in France
... policy rates will probably—on most empirical estimates— appear to have a smaller pass-through from policy to market interest rates. In the United Kingdom, France and Germany, monetary policy is set with reference to different targets (for inflation, the exchange rate and monetary growth), but in eac ...
... policy rates will probably—on most empirical estimates— appear to have a smaller pass-through from policy to market interest rates. In the United Kingdom, France and Germany, monetary policy is set with reference to different targets (for inflation, the exchange rate and monetary growth), but in eac ...
Ecs1028 (1) - gimmenotes
... Money is created by banks and not by a mint or printing press. Money/credit creation: money consists of notes, coins and demand deposits. Demand deposits can be activated by writing out cheques and are very convenient ways of holding money. Banks can create demand deposits by granting credit in the ...
... Money is created by banks and not by a mint or printing press. Money/credit creation: money consists of notes, coins and demand deposits. Demand deposits can be activated by writing out cheques and are very convenient ways of holding money. Banks can create demand deposits by granting credit in the ...
Chapter 27
... would cut the money supply and force the Fed to stick to a fixed money supply growth rate. In the short run, the unemployment rate will rise, but in the long-run, it selfcorrects to the natural rate. ...
... would cut the money supply and force the Fed to stick to a fixed money supply growth rate. In the short run, the unemployment rate will rise, but in the long-run, it selfcorrects to the natural rate. ...
Mankiw 6e PowerPoints
... To spend more without raising taxes or selling bonds, the govt can print money. ...
... To spend more without raising taxes or selling bonds, the govt can print money. ...
The Theory of Unconventional Monetary Policy
... from the fact that, for a given transfer, additional seigniorage revenues reduce the tax burden on all three types. More generally, the wealth effect of a transfer policy will depend on the population growth rate and the period length. 6It would be relatively simple to extend our model to allow for ...
... from the fact that, for a given transfer, additional seigniorage revenues reduce the tax burden on all three types. More generally, the wealth effect of a transfer policy will depend on the population growth rate and the period length. 6It would be relatively simple to extend our model to allow for ...
Topic VIII
... Fed announces Federal funds rate target Market moves to target without an actual open-market operation Interest rates in other markets move in same direction as the Federal funds rate: substitution and arbitrage ...
... Fed announces Federal funds rate target Market moves to target without an actual open-market operation Interest rates in other markets move in same direction as the Federal funds rate: substitution and arbitrage ...
A Graceful Return of the Drachma
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...
In a mixed economy, what to produce and how much to produce are
... c. The federal government spends more than it collects in taxes in a given year d. High levels of unemployment use up tax collections e. Interest payments on the national debt increase from one year to the next 6. Under which of the following conditions would consumer spending most likely increase? ...
... c. The federal government spends more than it collects in taxes in a given year d. High levels of unemployment use up tax collections e. Interest payments on the national debt increase from one year to the next 6. Under which of the following conditions would consumer spending most likely increase? ...
Taylor Economics Chapter 31 Test Bank
... 34. Referring to the diagram above, which of the following statements is true? A. Monetary policy that increases the money supply also increases the level of potential GDP. B. Tight monetary policy expands the economy by increasing the level of potential GDP. C. This contractionary monetary policy s ...
... 34. Referring to the diagram above, which of the following statements is true? A. Monetary policy that increases the money supply also increases the level of potential GDP. B. Tight monetary policy expands the economy by increasing the level of potential GDP. C. This contractionary monetary policy s ...
Saving and Investment
... When the government spends more than it receives in tax revenue, the resulting budget deficit lowers national saving. The supply of loanable funds decreases, and the equilibrium interest rate rises. Thus, when the government borrows to finance its budget deficit, it crowds out households and firms t ...
... When the government spends more than it receives in tax revenue, the resulting budget deficit lowers national saving. The supply of loanable funds decreases, and the equilibrium interest rate rises. Thus, when the government borrows to finance its budget deficit, it crowds out households and firms t ...
New Zealand’s macro-economic performance in the 1990s: trends and policy debates
... Following from the macro-economic policy side, there was a belief that the low saving rate and high current account deficits were not a problem if they reflected decisions by individuals to save, invest and borrow, provided the behaviour wasn’t distorted by government regulation. By the end of the ...
... Following from the macro-economic policy side, there was a belief that the low saving rate and high current account deficits were not a problem if they reflected decisions by individuals to save, invest and borrow, provided the behaviour wasn’t distorted by government regulation. By the end of the ...