Graduate School of Management
... equivalent of the Federal Reserve System) independent of the government. The government also resumed the gold standard. These measures had credibility. Inflation halted almost overnight, and there were few effects on unemployment and GDP. In sum, credibility matters. Summary What then should Upper B ...
... equivalent of the Federal Reserve System) independent of the government. The government also resumed the gold standard. These measures had credibility. Inflation halted almost overnight, and there were few effects on unemployment and GDP. In sum, credibility matters. Summary What then should Upper B ...
Some Monetary Facts
... Congress is the assumption that the Fed has the ability, through its monetary policy, to control these economic variables. Does it? Clearly, it does have a measure of control over some definitions of money. But the links between money and the other economic variables have yet to be conclusively esta ...
... Congress is the assumption that the Fed has the ability, through its monetary policy, to control these economic variables. Does it? Clearly, it does have a measure of control over some definitions of money. But the links between money and the other economic variables have yet to be conclusively esta ...
A Comparison of Twelve Macroeconomic Models
... the performance of some of the simple rules, particularly interest-rate-smoothing rules and rules that have a high coefficient on the inflation gap, can deviate substantially from the optimal rule and can even be unstable in some models.2 Our results are thus very different from those of Levin, Wiel ...
... the performance of some of the simple rules, particularly interest-rate-smoothing rules and rules that have a high coefficient on the inflation gap, can deviate substantially from the optimal rule and can even be unstable in some models.2 Our results are thus very different from those of Levin, Wiel ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... This can be achieved through lowering interest rates by increasing money supply. With increased money supply economic agents increase their expenditures of domestic goods and services thereby inducing an increase in output and prices. Japan is one country that also experienced serious deflation. In ...
... This can be achieved through lowering interest rates by increasing money supply. With increased money supply economic agents increase their expenditures of domestic goods and services thereby inducing an increase in output and prices. Japan is one country that also experienced serious deflation. In ...
NBER WO~G PAPER SERIES MACROECONOMIC POLICY ~ THE PRESENCE OF STRUCTURAL
... real wages to keep pace with productivity. ...
... real wages to keep pace with productivity. ...
The Role of Government: Impact on Macroeconomy
... because it conveys positive externalities. An educated person, for instance, might generate new ideas about how best to produce goods and services. If these ideas enter society’s pool of knowledge, so everyone can use them, then the ideas are an external benefit of education. This argument would jus ...
... because it conveys positive externalities. An educated person, for instance, might generate new ideas about how best to produce goods and services. If these ideas enter society’s pool of knowledge, so everyone can use them, then the ideas are an external benefit of education. This argument would jus ...
Fiscal and monetary policy: interdependence and possible sources
... Must there necessarily be tension between monetary and fiscal policy? This might be true if these two areas of economic policy were pursuing conflicting goals. However, if we look at the objectives of monetary and fiscal policy, we can see that they are very similar (cf. chart 1). Today, in most adv ...
... Must there necessarily be tension between monetary and fiscal policy? This might be true if these two areas of economic policy were pursuing conflicting goals. However, if we look at the objectives of monetary and fiscal policy, we can see that they are very similar (cf. chart 1). Today, in most adv ...
THE CAPITAL ASSET PRICING MODEL`S RISK
... No previous study has attempted to identify the appropriate risk-free rate for the CAPM. Academics and practitioners arbitrarily use short-term or long-term government securities as proxies for the risk-free security. Bruner et al. (1998) found wide variation in the choice of risk-free rates for the ...
... No previous study has attempted to identify the appropriate risk-free rate for the CAPM. Academics and practitioners arbitrarily use short-term or long-term government securities as proxies for the risk-free security. Bruner et al. (1998) found wide variation in the choice of risk-free rates for the ...
Download paper (PDF)
... immediately. Output then stays at this higher level for 20 quarters before falling back to steady state in quarter 21. To understand why output responds in this way, it is important to consider that the shock changes the relative price of consumption between quarters 20 and 21 (since it is the real ...
... immediately. Output then stays at this higher level for 20 quarters before falling back to steady state in quarter 21. To understand why output responds in this way, it is important to consider that the shock changes the relative price of consumption between quarters 20 and 21 (since it is the real ...
Monetary Policy in Fiji Monetary Policy in Fiji
... the BDD rate also increases making it more attractive for commercial banks to deposit funds with the RBF. Under this framework, the Reserve Bank sets the overnight policy rate. Changes in the OPR are used to signal to commercial banks the direction desired by the Reserve Bank for short term interest ...
... the BDD rate also increases making it more attractive for commercial banks to deposit funds with the RBF. Under this framework, the Reserve Bank sets the overnight policy rate. Changes in the OPR are used to signal to commercial banks the direction desired by the Reserve Bank for short term interest ...
INFLATION IN VIETNAM
... most prominent success of this innovation was the success of combined various supply-side policies somewhat helped ease the excess demand strain and eventually the inflation rate suddenly dropped to 37.7% in 1989. This can be considered as the initial success of the innovation program, triggering a ...
... most prominent success of this innovation was the success of combined various supply-side policies somewhat helped ease the excess demand strain and eventually the inflation rate suddenly dropped to 37.7% in 1989. This can be considered as the initial success of the innovation program, triggering a ...
mmi11 Watzka 15082660 en
... We study the real effects of Quantitative Easing (QE) in a structural VAR (SVAR) when the shortterm interest rate is constrained by the Zero-Lower-Bound (ZLB). Using monthly Japanese data since 1995 - a period during which the Bank of Japan’s target rate, the overnight call rate, has been very close ...
... We study the real effects of Quantitative Easing (QE) in a structural VAR (SVAR) when the shortterm interest rate is constrained by the Zero-Lower-Bound (ZLB). Using monthly Japanese data since 1995 - a period during which the Bank of Japan’s target rate, the overnight call rate, has been very close ...
MONETARY POLICY REPORT
... Given the relative stable external environment and internal financial conditions, the slowdown of the annual GDP reduction will continue. However, the development and strengthening of positive trends in the economic activity will take some time. The situation in industry is marked by instability and ...
... Given the relative stable external environment and internal financial conditions, the slowdown of the annual GDP reduction will continue. However, the development and strengthening of positive trends in the economic activity will take some time. The situation in industry is marked by instability and ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... . ~ particular, changes in output that result from nominal disturbances are always accompanied by changes in the markup. The approach that we take differs from those taken in other chapters in this volume. While we are making progress on building a small-scale, fully articulated macroeconomic model ...
... . ~ particular, changes in output that result from nominal disturbances are always accompanied by changes in the markup. The approach that we take differs from those taken in other chapters in this volume. While we are making progress on building a small-scale, fully articulated macroeconomic model ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
... the increase in the average money wage rate for the whole economy reflects an average of the expected long-run rates of inflation prevailing in a number of past quarters. The behavior of the GDP deflator is assumed to follow the behavior of the average money wage rate. The important consequence of t ...
NBER WORKING PAPER SERIES TECHNOLOGY SHOCKS AND MONETARY POLICY: Jordi Galí
... Since the seminal work of Taylor (1993), many macroeconomists have shifted their attention to the analysis of the endogenous component of monetary policy, and its role in shaping the responses of nominal and real variables to different shocks. The contribution of the present paper to that research pr ...
... Since the seminal work of Taylor (1993), many macroeconomists have shifted their attention to the analysis of the endogenous component of monetary policy, and its role in shaping the responses of nominal and real variables to different shocks. The contribution of the present paper to that research pr ...
Fiscal and monetary coordination, Reserve Bank of New Zealand
... Another dimension in any assessment of how monetary and fiscal policy should be used to stabilise demand, and hence inflation, concerns the degree of stabilisation being sought. In this regard, we need to acknowledge that there are limits to the extent to which monetary policy – or fiscal policy – c ...
... Another dimension in any assessment of how monetary and fiscal policy should be used to stabilise demand, and hence inflation, concerns the degree of stabilisation being sought. In this regard, we need to acknowledge that there are limits to the extent to which monetary policy – or fiscal policy – c ...
Bade_Parkin_Macro_Lecture_CH13
... • The inflation tax is bigger than the tax on money holding, and it interacts with the income tax to lower saving and investment. • The core of the problem is that inflation increases the nominal interest rate, and because income taxes are paid on nominal interest income, the true income tax rate ri ...
... • The inflation tax is bigger than the tax on money holding, and it interacts with the income tax to lower saving and investment. • The core of the problem is that inflation increases the nominal interest rate, and because income taxes are paid on nominal interest income, the true income tax rate ri ...
Real Fluctuations at the Zero Lower Bound
... At the zero lower bound, however, the central bank continues to respond to the state of the economy by adjusting its future path of desired policy rates. By including smoothing in the desired nominal policy rate at the zero lower bound, nominal policy rates become a function of current and past econ ...
... At the zero lower bound, however, the central bank continues to respond to the state of the economy by adjusting its future path of desired policy rates. By including smoothing in the desired nominal policy rate at the zero lower bound, nominal policy rates become a function of current and past econ ...
specimen
... Answer all the questions. Do not write in the bar codes. Do not write outside the box bordering each page. Write your answer to each question in the space provided. ...
... Answer all the questions. Do not write in the bar codes. Do not write outside the box bordering each page. Write your answer to each question in the space provided. ...