Contents
... by the more expansionary fiscal policy stance announced by the new Government after the December projections had been completed. Second, in the more immediate future, the downward contribution to inflation from the expected fall in the domestic price of imported goods is now somewhat less than previ ...
... by the more expansionary fiscal policy stance announced by the new Government after the December projections had been completed. Second, in the more immediate future, the downward contribution to inflation from the expected fall in the domestic price of imported goods is now somewhat less than previ ...
Are the Effects of Monetary Policy Asymmetric?
... output, that finding would have important implications for how the Fed conducts policy. Conclusive evidence one way or the other has proven somewhat elusive, however. A number of studies do find evidence that contractionary policy has a stronger effect on output than expansionary policy, as the theo ...
... output, that finding would have important implications for how the Fed conducts policy. Conclusive evidence one way or the other has proven somewhat elusive, however. A number of studies do find evidence that contractionary policy has a stronger effect on output than expansionary policy, as the theo ...
Monetary Policy Statement December 2011 Contents
... As foreshadowed in the September Statement, global conditions have deteriorated. Continuing difficulties related to sovereign and bank debt in a growing number of European economies have resulted in high levels of volatility in financial markets. There has also been a softening in international econ ...
... As foreshadowed in the September Statement, global conditions have deteriorated. Continuing difficulties related to sovereign and bank debt in a growing number of European economies have resulted in high levels of volatility in financial markets. There has also been a softening in international econ ...
The monetary and fiscal policy mix in Poland
... The most challenging convergence criterion for Poland will be the budget deficit. It should be stressed here that the 3% budget deficit ceiling not only determines eligibility for euro zone membership, but also constitutes a requirement imposed by the Stability and Growth Pact (SGP), which Poland wi ...
... The most challenging convergence criterion for Poland will be the budget deficit. It should be stressed here that the 3% budget deficit ceiling not only determines eligibility for euro zone membership, but also constitutes a requirement imposed by the Stability and Growth Pact (SGP), which Poland wi ...
Revival of Aggregate Demand Policies – Introduction
... Andersen to be sceptical about the desirability of active fiscal stabilisation policy. He argues that proposals to delegate stabilisation policy to independent institutions (such as a “fiscal board”) will run into serious difficulties since it might be inefficient to separate stabilisation, allocati ...
... Andersen to be sceptical about the desirability of active fiscal stabilisation policy. He argues that proposals to delegate stabilisation policy to independent institutions (such as a “fiscal board”) will run into serious difficulties since it might be inefficient to separate stabilisation, allocati ...
NBER WORKING PAPER SERIES
... monetary policy. Conversely, when households and firms partly base their expectations on lagged inflation the driving force behind the changes between the two periods is a more effective anchoring of inflation expectations, which we interpret as an improvement in monetary policy credibility, with a ...
... monetary policy. Conversely, when households and firms partly base their expectations on lagged inflation the driving force behind the changes between the two periods is a more effective anchoring of inflation expectations, which we interpret as an improvement in monetary policy credibility, with a ...
NBER WORKING PAPER SERIES MARKETS Rahul Anand
... The global financial crisis has led to a vigorous debate about the appropriate objectives for monetary policy. For instance, it has been posited that a narrow version of inflation targeting (IT) could pose risks if it implies that potential asset bubbles are ignored by central banks. The emerging co ...
... The global financial crisis has led to a vigorous debate about the appropriate objectives for monetary policy. For instance, it has been posited that a narrow version of inflation targeting (IT) could pose risks if it implies that potential asset bubbles are ignored by central banks. The emerging co ...
the aggregate demand – aggregate supply model
... However, economists had information fairly early on that the last recession (2008-2009) was likely to be very severe and long-lasting. As a result, Congress passed two packages of expansionary fiscal policy measures (“stimulus”) in 2008 and 2009. Discretionary or Countercyclical Monetary Policy – de ...
... However, economists had information fairly early on that the last recession (2008-2009) was likely to be very severe and long-lasting. As a result, Congress passed two packages of expansionary fiscal policy measures (“stimulus”) in 2008 and 2009. Discretionary or Countercyclical Monetary Policy – de ...
Reflating Japan: Time to Get Unconventional?
... higher sustainable growth path and end deflation. Since it reinforces the three arrows of Abenomics, we call it Three Arrows Plus. An unorthodox component of the package is an incomes policy aimed directly at sluggish wage-price dynamics. We build on the authorities’ current policies by emphasizing ...
... higher sustainable growth path and end deflation. Since it reinforces the three arrows of Abenomics, we call it Three Arrows Plus. An unorthodox component of the package is an incomes policy aimed directly at sluggish wage-price dynamics. We build on the authorities’ current policies by emphasizing ...
Objectives for Chapter 24: Monetarism (Continued)
... What would have happened if people had had rational expectations, instead of adaptive expectations? With rational expectations, people would have realized that the Federal Reserve had increased the money supply. They would know that an increase in the money supply of that magnitude would cause infla ...
... What would have happened if people had had rational expectations, instead of adaptive expectations? With rational expectations, people would have realized that the Federal Reserve had increased the money supply. They would know that an increase in the money supply of that magnitude would cause infla ...
Objectives for Chapter 24: Monetarism (Continued) Chapter 24: The
... What would have happened if people had had rational expectations, instead of adaptive expectations? With rational expectations, people would have realized that the Federal Reserve had increased the money supply. They would know that an increase in the money supply of that magnitude would cause infla ...
... What would have happened if people had had rational expectations, instead of adaptive expectations? With rational expectations, people would have realized that the Federal Reserve had increased the money supply. They would know that an increase in the money supply of that magnitude would cause infla ...
Is Openness Inflationary? Imperfect Competition and Monetary
... been the subject of a large body of research beginning as early as 1962 and continuing to the present. Most of these papers have been empirical in focus and provide strong evidence of a negative relationship between openness and inflation. However, much less work exists that structurally models this ...
... been the subject of a large body of research beginning as early as 1962 and continuing to the present. Most of these papers have been empirical in focus and provide strong evidence of a negative relationship between openness and inflation. However, much less work exists that structurally models this ...
The Interaction Between Monetary and Fiscal Policies
... Mundell had used quite restrictive assumptions regarding prices and expectations of exchange rate changes and inflation in his simple models. It is important to note, however, that relaxing these assumptions, while maintaining a hypothesis of perfect asset substitutability, still leads to the conclu ...
... Mundell had used quite restrictive assumptions regarding prices and expectations of exchange rate changes and inflation in his simple models. It is important to note, however, that relaxing these assumptions, while maintaining a hypothesis of perfect asset substitutability, still leads to the conclu ...
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... tends to focus on the short-run fluctuations in the natural rate, taking the long-run value as constant. In the latter approach, the real natural rate is the inflation-adjusted rate of interest that would prevail after wages and prices adjust to drive economic activity to its most efficient level, m ...
... tends to focus on the short-run fluctuations in the natural rate, taking the long-run value as constant. In the latter approach, the real natural rate is the inflation-adjusted rate of interest that would prevail after wages and prices adjust to drive economic activity to its most efficient level, m ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... banks lending margin and it makes them more responsive to market rates which should increase the speed and the degree of the pass-through. The importance of the bank credit in monetary policy transmission mechanism has also been stressed and it is presented below: The Credit Channel of Monetary Poli ...
... banks lending margin and it makes them more responsive to market rates which should increase the speed and the degree of the pass-through. The importance of the bank credit in monetary policy transmission mechanism has also been stressed and it is presented below: The Credit Channel of Monetary Poli ...
04 fontana.pmd
... another, was adopted by a number of industrialized countries including New Zealand, Canada, the United Kingdom, Sweden, Finland, Israel, Spain, and Australia. It has also been adopted by the new European Central Bank (ECB). Although the reaction function under IT will, in general, not be a Taylor-ty ...
... another, was adopted by a number of industrialized countries including New Zealand, Canada, the United Kingdom, Sweden, Finland, Israel, Spain, and Australia. It has also been adopted by the new European Central Bank (ECB). Although the reaction function under IT will, in general, not be a Taylor-ty ...
The stability of full employment
... It has now become usual to interpret Keynesian theory as “sticky price-macroeconomics” (cf. e.g. McCallum 1986) and to consider a Keynesian-type stabilisation policy primarily as a substitute for wage flexibility. However, if the market failure of unemployment is just due to the “friction” of insuff ...
... It has now become usual to interpret Keynesian theory as “sticky price-macroeconomics” (cf. e.g. McCallum 1986) and to consider a Keynesian-type stabilisation policy primarily as a substitute for wage flexibility. However, if the market failure of unemployment is just due to the “friction” of insuff ...
Monetary Policy: Recent Experience and Future Directions
... sector. As a consequence, the financial intermediaries, financial frictions and asset price bubbles and corrections that have played a key role in the events of the past three years were neglected. To illustrate, imagine a scenario where inflation falls because of a positive supply shock, such as a ...
... sector. As a consequence, the financial intermediaries, financial frictions and asset price bubbles and corrections that have played a key role in the events of the past three years were neglected. To illustrate, imagine a scenario where inflation falls because of a positive supply shock, such as a ...
Chapter 12 Aggregate Supply, Aggregate Demand
... we explained economic theories concerning fiscal and monetary policy. So far our models have all been "demand side," illustrated by shifts of the Aggregate Demand curve. In this chapter, we complete the demand side story so that it includes explicit attention to the upturn side of the story and the ...
... we explained economic theories concerning fiscal and monetary policy. So far our models have all been "demand side," illustrated by shifts of the Aggregate Demand curve. In this chapter, we complete the demand side story so that it includes explicit attention to the upturn side of the story and the ...
Minutes of the Federal Open Market Committee April 28-29, 2009
... The Manager of the System Open Market Account reported on recent developments in domestic and foreign financial markets. The Manager also reported on System open market operations in Treasury securities and in agency debt and agency mortgage-backed securities (MBS) during the period since the Commit ...
... The Manager of the System Open Market Account reported on recent developments in domestic and foreign financial markets. The Manager also reported on System open market operations in Treasury securities and in agency debt and agency mortgage-backed securities (MBS) during the period since the Commit ...
