Global Fixed Income Weekly
... As for core inflation, the pipeline inflation picture is neutral (lower energy prices but recovering industrial metal prices) implying some stabilization of PPI inflation at a time when inflation from imported core goods seems to be bottoming. This suggests that inflation for core goods and services ...
... As for core inflation, the pipeline inflation picture is neutral (lower energy prices but recovering industrial metal prices) implying some stabilization of PPI inflation at a time when inflation from imported core goods seems to be bottoming. This suggests that inflation for core goods and services ...
Chapter 24: Aggregate Demand, Aggregate Supply, and Inflation
... The Aggregate Supply Curve: A Warning • When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level means that at least some input prices will be rising as well. • The outputs of some firms are the inputs of other firms. ...
... The Aggregate Supply Curve: A Warning • When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level means that at least some input prices will be rising as well. • The outputs of some firms are the inputs of other firms. ...
Reading Ch 1 Classifying Monetary Economics
... rectangle of novel trends, we try to keep track – insofar possible and where relevant – of three aspects, namely, the most common (i) rationale, (ii) methods, and (iii) findings. 3. Fundamental Fields of Monetary Economics The usual approach in most of monetary economics is to ignore or, rather, sub ...
... rectangle of novel trends, we try to keep track – insofar possible and where relevant – of three aspects, namely, the most common (i) rationale, (ii) methods, and (iii) findings. 3. Fundamental Fields of Monetary Economics The usual approach in most of monetary economics is to ignore or, rather, sub ...
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... re-optimized, we let him choose between indexing his wage to past inflation or the inflation target of the central bank (i.e. trend inflation, which may vary). The worker’s indexation choice is based on the highest expected utility he would obtain from the two indexation schemes, given the average l ...
... re-optimized, we let him choose between indexing his wage to past inflation or the inflation target of the central bank (i.e. trend inflation, which may vary). The worker’s indexation choice is based on the highest expected utility he would obtain from the two indexation schemes, given the average l ...
Monetary Policy and the Federal Reserve: Current Policy and Issues
... when it believes it will be appropriate to raise interest rates. Most members of the FOMC currently believe it would be appropriate to raise the federal funds target before the end of 2015. 9 Before 2008, short-term interest rates had never reached the zero lower bound; rates have remained there eve ...
... when it believes it will be appropriate to raise interest rates. Most members of the FOMC currently believe it would be appropriate to raise the federal funds target before the end of 2015. 9 Before 2008, short-term interest rates had never reached the zero lower bound; rates have remained there eve ...
Sectoral Analysis
... rate is quite high: graphically the elastic real money demand curve is quite flat. The LM curve derived from the flat money demand curve along with the vertical money supply curve is quite flat, too. You may recall that the flatter the LM, the smaller the Crowdingout. Fiscal policies are quite effec ...
... rate is quite high: graphically the elastic real money demand curve is quite flat. The LM curve derived from the flat money demand curve along with the vertical money supply curve is quite flat, too. You may recall that the flatter the LM, the smaller the Crowdingout. Fiscal policies are quite effec ...
NBER WORKING PAPER SERIES COMPARING TWO VARIANTS OF CALVO-TYPE WAGE STICKINESS
... that the SGU and the EHL models induce the same equilibrium dynamics up to first order does not imply that Ramsey optimal policy under both types of wage stickiness is also identical. This is because the first-order conditions of the Ramsey problem include not only the complete set of equilibrium co ...
... that the SGU and the EHL models induce the same equilibrium dynamics up to first order does not imply that Ramsey optimal policy under both types of wage stickiness is also identical. This is because the first-order conditions of the Ramsey problem include not only the complete set of equilibrium co ...
5. The impact of real interest rates in the euro area
... will not only affect the competitiveness vis-à-vis other euro-area economies, but also lower the difference between the nominal interest rate and the inflation rate, i.e. the ex-post real interest rate. A lower real interest rate, however, makes it more attractive to advance investment and consumpti ...
... will not only affect the competitiveness vis-à-vis other euro-area economies, but also lower the difference between the nominal interest rate and the inflation rate, i.e. the ex-post real interest rate. A lower real interest rate, however, makes it more attractive to advance investment and consumpti ...
The Elusive Costs of Inflation
... optimal level since firms find it optimal to pay the (relatively small) menu cost before this happens. This greatly limits the extent to which price dispersion rises with inflation in the menu cost model and, as a result, the welfare loss from increasing inflation is small in this model, a point emp ...
... optimal level since firms find it optimal to pay the (relatively small) menu cost before this happens. This greatly limits the extent to which price dispersion rises with inflation in the menu cost model and, as a result, the welfare loss from increasing inflation is small in this model, a point emp ...
Standard Shocks in the OECD Interlink Model
... exports. This means that the effects, at least initially, are much more substantial than if only one country expands demand (Table 1). Another example is an oil price increase, which adversely affects output in most OECD countries (except for net exporters of oil such as Canada, Mexico and Norway). ...
... exports. This means that the effects, at least initially, are much more substantial than if only one country expands demand (Table 1). Another example is an oil price increase, which adversely affects output in most OECD countries (except for net exporters of oil such as Canada, Mexico and Norway). ...
PROGRESS TOWARDS CONVERGENCE 1996
... monetary policies towards that objective. Furthermore, the recession of the early 1990s eased price and cost pressures, and, hence, is another general factor underlying these developments. In the ten Member States where inflation rates were below the reference value, there is no immediate risk that ...
... monetary policies towards that objective. Furthermore, the recession of the early 1990s eased price and cost pressures, and, hence, is another general factor underlying these developments. In the ten Member States where inflation rates were below the reference value, there is no immediate risk that ...
the use of reserve requirements in an optimal monetary policy
... A BSTRACT. We analyse three models to determine the conditions under which reserve requirements are used as a part of an optimal monetary policy framework in an inflation targeting regime. In all cases the Central Bank (CB) minimizes an objective function that depends on deviations of inflation from ...
... A BSTRACT. We analyse three models to determine the conditions under which reserve requirements are used as a part of an optimal monetary policy framework in an inflation targeting regime. In all cases the Central Bank (CB) minimizes an objective function that depends on deviations of inflation from ...
NBER Reporter Program Report
... government expenditure programs, the policy debate on two major programs has shifted quite sharply. Reforming Social Security and Medicare, long viewed as a political impossibility, has risen high on the policy agenda. While policy debate on these important issues has received little attention since ...
... government expenditure programs, the policy debate on two major programs has shifted quite sharply. Reforming Social Security and Medicare, long viewed as a political impossibility, has risen high on the policy agenda. While policy debate on these important issues has received little attention since ...
2012 IOptimal Policy and the Sectoral Composition of Output
... alone. However this is not true if there are sector specific taxes or if aggregate taxes are set under commitment. In fact, with sectoral policy, commitment for tax and monetary policies ceases to be important. This study complements an already vast literature on monetary policy in a multisector set ...
... alone. However this is not true if there are sector specific taxes or if aggregate taxes are set under commitment. In fact, with sectoral policy, commitment for tax and monetary policies ceases to be important. This study complements an already vast literature on monetary policy in a multisector set ...
Document
... Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014) and Lithuania (2015) have adopted the euro. Those Member States which are assessed as not fulfilling the necessary conditions for the adoption of the euro are referred to as "Member States with a derogation". Ar ...
... Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014) and Lithuania (2015) have adopted the euro. Those Member States which are assessed as not fulfilling the necessary conditions for the adoption of the euro are referred to as "Member States with a derogation". Ar ...
Macroeconomics - University of London International Programmes
... Published by: University of London © University of London 2014 The University of London asserts copyright over all material in this subject guide except where otherwise indicated. All rights reserved. No part of this work may be reproduced in any form, or by any means, without permission in writing ...
... Published by: University of London © University of London 2014 The University of London asserts copyright over all material in this subject guide except where otherwise indicated. All rights reserved. No part of this work may be reproduced in any form, or by any means, without permission in writing ...
PDF
... in Malawi has increased by 141 percent between 1998 and 2008, and has been rising along with the food prices of many other commodities over this period. This study therefore investigates the determinants of food inflation rate in Malawi and its effect on the economy. Monthly and annual data were col ...
... in Malawi has increased by 141 percent between 1998 and 2008, and has been rising along with the food prices of many other commodities over this period. This study therefore investigates the determinants of food inflation rate in Malawi and its effect on the economy. Monthly and annual data were col ...
BNR ECONOMIC REVIEW Vol. 9
... effects of fiscal policy on inflation and money market interest rates in Rwanda. This paper uses structural autoregressive models over the period from 2006Q1 to 2015Q4. Indeed, the results show that both the government spending and government tax revenues affect positively and significantly nominal ...
... effects of fiscal policy on inflation and money market interest rates in Rwanda. This paper uses structural autoregressive models over the period from 2006Q1 to 2015Q4. Indeed, the results show that both the government spending and government tax revenues affect positively and significantly nominal ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: American Economic Policy in the 1980s
... fore, can conveniently be divided into major episodes corresponding to the main thrust of the Federal Reserve’s policy. However, within each major episode, decisions are continually made to adjust (or not to adjust) the degree of tightness or ease of monetary policy. The analysis of monetary policy ...
... fore, can conveniently be divided into major episodes corresponding to the main thrust of the Federal Reserve’s policy. However, within each major episode, decisions are continually made to adjust (or not to adjust) the degree of tightness or ease of monetary policy. The analysis of monetary policy ...
Language after Liftoff: Fed Communication Away from the Zero
... progress. Before the 1990s central banks pursued communication strategies with very limited transparency. This was particularly true for the Federal Reserve. Prior to 1995, the FOMC did not even publicly announce its target for the federal funds rate, its primary monetary policy instrument, forcing ...
... progress. Before the 1990s central banks pursued communication strategies with very limited transparency. This was particularly true for the Federal Reserve. Prior to 1995, the FOMC did not even publicly announce its target for the federal funds rate, its primary monetary policy instrument, forcing ...
NBER WORKING PAPER SERIES MONETARY POLICY MATTER? A NEW TEST IN
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
Chapter 8—Unemployment and Inflation
... 21. If top government officials claim that "more people are working now than ever before," which of the following must be true? a. The unemployment rate is lower now than ever before. b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever bef ...
... 21. If top government officials claim that "more people are working now than ever before," which of the following must be true? a. The unemployment rate is lower now than ever before. b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever bef ...
WAS THE FED A GOOD IDEA? Charles I. Plosser Jerry L. Jordan
... expanded dramatically. The Fed’s ultra-low interest rates and quantitative easing have distorted capital markets, increased risk taking, politicized credit allocation, monetized government debt, and allowed the government to expand its size and scope. Moreover, the Fed’s regulatory powers have incre ...
... expanded dramatically. The Fed’s ultra-low interest rates and quantitative easing have distorted capital markets, increased risk taking, politicized credit allocation, monetized government debt, and allowed the government to expand its size and scope. Moreover, the Fed’s regulatory powers have incre ...
Chapter 7--Unemployment and Inflation
... 22. If top government officials claim that "more people are working now than ever before," which of the following must be true? a. The unemployment rate is lower now than ever before. b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever bef ...
... 22. If top government officials claim that "more people are working now than ever before," which of the following must be true? a. The unemployment rate is lower now than ever before. b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever bef ...
Chapter 22 - Samuel Moon Jung
... 1) The aggregate demand curve is the total quantity of an economy's A) intermediate goods demanded at different inflation rates. B) intermediate goods demanded at a particular inflation rate. C) final goods and services demanded at a particular inflation rate. D) final goods and services demanded at ...
... 1) The aggregate demand curve is the total quantity of an economy's A) intermediate goods demanded at different inflation rates. B) intermediate goods demanded at a particular inflation rate. C) final goods and services demanded at a particular inflation rate. D) final goods and services demanded at ...