Decline in Oil Prices and the Negative Interest Rate Policy in Japan
... consumer price index). Since then, in order to achieve this target, the BOJ started to implement aggressive monetary easing through buying long-term government bonds and increasing the monetary base, in contrast to previous attempts at an expansionary monetary policy which mainly focused on buying s ...
... consumer price index). Since then, in order to achieve this target, the BOJ started to implement aggressive monetary easing through buying long-term government bonds and increasing the monetary base, in contrast to previous attempts at an expansionary monetary policy which mainly focused on buying s ...
Nudging the Fed Toward a Rules-Based Policy
... As a result, while we can expect money market interest rates— especially short-term ones—to immediately fall when the Fed injects money into the economy, it does not follow that the Fed must have injected money simply because interest rates were seen to fall. For example, let’s suppose that the Fed ...
... As a result, while we can expect money market interest rates— especially short-term ones—to immediately fall when the Fed injects money into the economy, it does not follow that the Fed must have injected money simply because interest rates were seen to fall. For example, let’s suppose that the Fed ...
Globalisation and monetary policy - from virtue to vice?
... in goods, services and financial assets, complemented by improvements in information and technology transfer) as well as with the establishment of price stability-oriented monetary policy frameworks under independent central banks. In principle, each of these factors could help to account for improv ...
... in goods, services and financial assets, complemented by improvements in information and technology transfer) as well as with the establishment of price stability-oriented monetary policy frameworks under independent central banks. In principle, each of these factors could help to account for improv ...
Parkin-Bade Chapter 21
... appear and, if they are more expensive than the goods they replace, they put an upward bias into the price index. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is not inflation. The price index counts all the price rise a ...
... appear and, if they are more expensive than the goods they replace, they put an upward bias into the price index. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is not inflation. The price index counts all the price rise a ...
12INFLATION*
... PHILLIPS CURVE : The Phillips curve and the AS/AD model are closely linked. Consider an unexpected increase in aggregate demand. In the short run, a movement occurs along the SAS curve. The price level rises, and real GDP increases above potential GDP. The rise in the price level means that inflatio ...
... PHILLIPS CURVE : The Phillips curve and the AS/AD model are closely linked. Consider an unexpected increase in aggregate demand. In the short run, a movement occurs along the SAS curve. The price level rises, and real GDP increases above potential GDP. The rise in the price level means that inflatio ...
Influence of macroeconomic fundamentals on country risk and
... current account deficit without resorting to undesirable actions, thus, as the country has more reserves, the greater its flexibility to adjust to shocks. Therefore, it is expected a negative correlation between international reserves and country risk. - Inflation targeting credibility (Credibility) ...
... current account deficit without resorting to undesirable actions, thus, as the country has more reserves, the greater its flexibility to adjust to shocks. Therefore, it is expected a negative correlation between international reserves and country risk. - Inflation targeting credibility (Credibility) ...
Forecasting Real GDP
... • Start with analyzing the past: what were key developments and how are they going to affect the present and future? We looked at recent economic developments during the first session • What do we know about the present (nowcast)? We will look at available indicators in the afternoon ...
... • Start with analyzing the past: what were key developments and how are they going to affect the present and future? We looked at recent economic developments during the first session • What do we know about the present (nowcast)? We will look at available indicators in the afternoon ...
Economic Commentaries
... inflation, for example through a rule in which monetary policy today is set as a function of inflation today (through, for example, a “Taylor rule”). In that case, it might be better to focus on a measure stripped of temporary price fluctuations.11 However, temporary price changes may also occur in ...
... inflation, for example through a rule in which monetary policy today is set as a function of inflation today (through, for example, a “Taylor rule”). In that case, it might be better to focus on a measure stripped of temporary price fluctuations.11 However, temporary price changes may also occur in ...
A Literature Survey with Special Reference to Theories of Inflation
... output unchanged. On the other hand, O’Brien writes, some classical economists like David Hume do not assume full employment and there is no room for a dichotomy. According to Hume, an increase in the money supply does increase the general price level through a different transmission mechanism. The ...
... output unchanged. On the other hand, O’Brien writes, some classical economists like David Hume do not assume full employment and there is no room for a dichotomy. According to Hume, an increase in the money supply does increase the general price level through a different transmission mechanism. The ...
Minutes of the Federal Open Market Committee June 17–18, 2014
... couple of participants suggested that adequate control of short-term rates might be accomplished with a very wide spread or even without an ON RRP facility. A few participants commented that the Committee should also be prepared to use its other policy tools, including term deposits and term reverse ...
... couple of participants suggested that adequate control of short-term rates might be accomplished with a very wide spread or even without an ON RRP facility. A few participants commented that the Committee should also be prepared to use its other policy tools, including term deposits and term reverse ...
Menu Costs and Phillips Curves
... distribution of firms’ relative prices, and as a monetary expansion proceeds, the firms at the low end of this distribution reprice to the high end. The repricing rate is very low—prices are very “sticky”—but no price stickiness can be seen at the aggregate level. The key to the example is that the ...
... distribution of firms’ relative prices, and as a monetary expansion proceeds, the firms at the low end of this distribution reprice to the high end. The repricing rate is very low—prices are very “sticky”—but no price stickiness can be seen at the aggregate level. The key to the example is that the ...
Menu Costs and Phillips Curves - The University of Chicago Booth
... distribution of firms’ relative prices, and as a monetary expansion proceeds, the firms at the low end of this distribution reprice to the high end. The repricing rate is very low—prices are very “sticky”—but no price stickiness can be seen at the aggregate level. The key to the example is that the ...
... distribution of firms’ relative prices, and as a monetary expansion proceeds, the firms at the low end of this distribution reprice to the high end. The repricing rate is very low—prices are very “sticky”—but no price stickiness can be seen at the aggregate level. The key to the example is that the ...
U.S. Monetary Policy Since Late 2007 Structure of the Federal
... added to the excess supply of houses and thus, to downward pressure on house prices. For the many borrowers with little or no equity in their homes, a drop in house prices meant “negative equity”-- owing more on their homes than the homes were worth. This gave such borrowers—even those who could mak ...
... added to the excess supply of houses and thus, to downward pressure on house prices. For the many borrowers with little or no equity in their homes, a drop in house prices meant “negative equity”-- owing more on their homes than the homes were worth. This gave such borrowers—even those who could mak ...
Macro Risks and the Term Structure
... employ, because supply shocks include productivity shocks which tend to have a longer run effect on output. From an empirical perspective, the distinction between supply and demand shocks seems surely relevant. Nobody would dispute that in the 1970s ”supply shocks” as defined above ...
... employ, because supply shocks include productivity shocks which tend to have a longer run effect on output. From an empirical perspective, the distinction between supply and demand shocks seems surely relevant. Nobody would dispute that in the 1970s ”supply shocks” as defined above ...
interest rate, exchange rate and inflation in romania
... capital in the current expression at market price. This interest is characterized by dynamic, some instability, oscillation and volatility. From this definition we can see the strong link of inflation with the interest rates. The relationship between nominal interest rates and inflation has been fre ...
... capital in the current expression at market price. This interest is characterized by dynamic, some instability, oscillation and volatility. From this definition we can see the strong link of inflation with the interest rates. The relationship between nominal interest rates and inflation has been fre ...
Long-Run and Short-Run Concerns: Growth, Productivity
... and Productivity Growth • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been in ...
... and Productivity Growth • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been in ...
Nicholas
... prices to foreign price shocks or exchange rate changes. However, except for the extreme case of perfect, instantaneous indexing, the effets on the output—inflation tradeoff would be similar to those obtained in this paper. At this point it is useful to review briefly how this aggregate supply ...
... prices to foreign price shocks or exchange rate changes. However, except for the extreme case of perfect, instantaneous indexing, the effets on the output—inflation tradeoff would be similar to those obtained in this paper. At this point it is useful to review briefly how this aggregate supply ...
Mishkin11
... Phillips curve with rising inflation – In the long run, expected inflation must gravitate to actual inflation, so that the Phillips curve shifts upward until expected inflation equals the new inflation rate – The line connecting the shifting expectationsaugmented Phillips curve is the long-run Phill ...
... Phillips curve with rising inflation – In the long run, expected inflation must gravitate to actual inflation, so that the Phillips curve shifts upward until expected inflation equals the new inflation rate – The line connecting the shifting expectationsaugmented Phillips curve is the long-run Phill ...
article - Federal Reserve Bank of Richmond
... research will be published in their forthcoming book, Monetary Politics: Congress and the Federal Reserve, 1913-2016.) Binder and Spindel also found differences between the two political parties. Democrats were more likely to introduce legislation when unemployment spiked, although this subsided som ...
... research will be published in their forthcoming book, Monetary Politics: Congress and the Federal Reserve, 1913-2016.) Binder and Spindel also found differences between the two political parties. Democrats were more likely to introduce legislation when unemployment spiked, although this subsided som ...