NBER WORKING PAPER SERIES Matthew Canzoneri
... In this paper, we develop a model in which banks create deposits and make loans. Both of these activities are costly, creating financial frictions that make monetary aggregates “matter” for economic activity. Moreover, bank deposits offer an alternative way for households to do their transacting, an ...
... In this paper, we develop a model in which banks create deposits and make loans. Both of these activities are costly, creating financial frictions that make monetary aggregates “matter” for economic activity. Moreover, bank deposits offer an alternative way for households to do their transacting, an ...
Monetary Policy Statement September 2012 Contents
... Zealand dollar continues to undermine export earnings and encourage substitution toward imported goods and services. Underlying annual inflation, which recently moved below 2 percent, is expected to settle near the mid-point of the target range over the medium term. It remains appropriate for the OC ...
... Zealand dollar continues to undermine export earnings and encourage substitution toward imported goods and services. Underlying annual inflation, which recently moved below 2 percent, is expected to settle near the mid-point of the target range over the medium term. It remains appropriate for the OC ...
Inflation differentials in the euro area during the last decade
... cyclical conditions would move back into line with the euro area average relatively rapidly. By contrast, a potential source of persistence of inflation differentials could stem from the pro-cyclical working of the “real interest rate” channel. As long as national inflation expectations are affected ...
... cyclical conditions would move back into line with the euro area average relatively rapidly. By contrast, a potential source of persistence of inflation differentials could stem from the pro-cyclical working of the “real interest rate” channel. As long as national inflation expectations are affected ...
G97/1 A measure of monetary conditions Richard Dennis
... and the weights applied to each variable. The Bank of Canada use weights of three on the interest rate and one on the exchange rate - thus their MCI ratio is 3:1 - indicating that the effect on demand pressure of a one percentage point interest rate increase can be offset by a three percent deprecia ...
... and the weights applied to each variable. The Bank of Canada use weights of three on the interest rate and one on the exchange rate - thus their MCI ratio is 3:1 - indicating that the effect on demand pressure of a one percentage point interest rate increase can be offset by a three percent deprecia ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... 1. Price stability: Rising prices erode the value of money as a medium of exchange and a store of value. Three Fed chairmen, Volcker, Greenspan, and Bernanke, argued that if in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unem ...
... 1. Price stability: Rising prices erode the value of money as a medium of exchange and a store of value. Three Fed chairmen, Volcker, Greenspan, and Bernanke, argued that if in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unem ...
Did Macroeconomic Policy Play a Different Role in the
... in a range that reasonable forecasts as of 2007 would have anticipated. I know that I, at least, have been surprised at every step of this chain. In the mid-2000s I was looking for financial tail risks to come from Wall Street banks having sold unhedged foreign-exchange puts via derivatives and thus ...
... in a range that reasonable forecasts as of 2007 would have anticipated. I know that I, at least, have been surprised at every step of this chain. In the mid-2000s I was looking for financial tail risks to come from Wall Street banks having sold unhedged foreign-exchange puts via derivatives and thus ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... 1. Price stability: Rising prices erode the value of money as a medium of exchange and a store of value. Three Fed chairmen, Volcker, Greenspan, and Bernanke, argued that if in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unem ...
... 1. Price stability: Rising prices erode the value of money as a medium of exchange and a store of value. Three Fed chairmen, Volcker, Greenspan, and Bernanke, argued that if in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unem ...
This is caused by it taking time to find a job
... Spend more Tax more and reduce the deficit Tax more and increase the deficit Increase the money supply Increase interest rate targets ...
... Spend more Tax more and reduce the deficit Tax more and increase the deficit Increase the money supply Increase interest rate targets ...
Discussion on “Monetary Policy “Contagion” in the Pacific: A Historical Inquiry
... tightening, in comparison with EMEs’ own policy tightening, on their macro-fundamentals and capital flows – Explore how some EMEs are more vulnerable than others ...
... tightening, in comparison with EMEs’ own policy tightening, on their macro-fundamentals and capital flows – Explore how some EMEs are more vulnerable than others ...
The Effectiveness of Government Spending in Deep Recessions: A
... ZKLFKH[SHFWDWLRQVRILQÀDWLRQLQFUHDVH it involves raising short-term interest rates when economic growth is strong or when inflationary pressures build up. It has been theoretically shown in a wide class of economic models that low and stable inflation allows the economy to employ resources more ...
... ZKLFKH[SHFWDWLRQVRILQÀDWLRQLQFUHDVH it involves raising short-term interest rates when economic growth is strong or when inflationary pressures build up. It has been theoretically shown in a wide class of economic models that low and stable inflation allows the economy to employ resources more ...
The Natural Rate as Economic Forecasting Tool
... Adapting Keynesian Tools to Non-Keynesian Economies,” by Evan F. Koenig, Federal Reserve Bank of Dallas Economic Review, Third Quarter, 1993, and Fourth Quarter, 1993. ...
... Adapting Keynesian Tools to Non-Keynesian Economies,” by Evan F. Koenig, Federal Reserve Bank of Dallas Economic Review, Third Quarter, 1993, and Fourth Quarter, 1993. ...
Sample Final Exam - Bellarmine University
... C. Banking reform has proceeded much too slowly since 1998. D. All the above. ...
... C. Banking reform has proceeded much too slowly since 1998. D. All the above. ...
32.1 the short-run phillips curve
... 32.2 SHORT-RUN AND LONG-RUN ... But if aggregate demand increases to AD2 and aggregate supply changes to AS2, the price level rises by 7 percent to 107. In both cases, real GDP remains at $10 trillion, and because the economy is at full employment, unemployment remains at the natural unemployment r ...
... 32.2 SHORT-RUN AND LONG-RUN ... But if aggregate demand increases to AD2 and aggregate supply changes to AS2, the price level rises by 7 percent to 107. In both cases, real GDP remains at $10 trillion, and because the economy is at full employment, unemployment remains at the natural unemployment r ...
instructional objectives
... (restrictive monetary policy) is likely to move the attached object to its desired destination, pushing on a string is not. 4. The impact on investment may be less than traditionally thought. Japan provides a case example. Despite interest rates of zero, investment spending remained low during the r ...
... (restrictive monetary policy) is likely to move the attached object to its desired destination, pushing on a string is not. 4. The impact on investment may be less than traditionally thought. Japan provides a case example. Despite interest rates of zero, investment spending remained low during the r ...
Optimal Monetary Policy in a Currency Area
... explaining the transmission mechanism of monetary policy. The normative results are rooted in the analysis of the existing distortions. In our framework there are three sources of inefficiency: i) the monopolistic distortion that induces an inefficient level of output; ii) inflation in each region that ...
... explaining the transmission mechanism of monetary policy. The normative results are rooted in the analysis of the existing distortions. In our framework there are three sources of inefficiency: i) the monopolistic distortion that induces an inefficient level of output; ii) inflation in each region that ...
Chapter 15
... Demand-pull inflation is inflation that results from an initial increase in aggregate demand. This can result from an: • Increase in the money supply • Increase in government purchases • Increase in exports Copyright © 2000 Addison Wesley Longman, Inc. ...
... Demand-pull inflation is inflation that results from an initial increase in aggregate demand. This can result from an: • Increase in the money supply • Increase in government purchases • Increase in exports Copyright © 2000 Addison Wesley Longman, Inc. ...
Spanish unemployment and inflation persistence: are there phillips
... framework?; How can we measure the costs of disinflation?; How does this depend upon high persistence in both unemployment and inflation?; and finally, How does the sacrifice ratio change across the identification schemes and over time? The goal of this paper is to deal with those issues through the ...
... framework?; How can we measure the costs of disinflation?; How does this depend upon high persistence in both unemployment and inflation?; and finally, How does the sacrifice ratio change across the identification schemes and over time? The goal of this paper is to deal with those issues through the ...
monetary policy report
... suggests that lower inflation has reduced the persistence of inflationary shocks (Taylor 2000). If changes in relative costs and prices, such as fluctuations in the cost of imported goods and services, are not viewed as persistent, they are less likely to affect inflation expectations and, hence, th ...
... suggests that lower inflation has reduced the persistence of inflationary shocks (Taylor 2000). If changes in relative costs and prices, such as fluctuations in the cost of imported goods and services, are not viewed as persistent, they are less likely to affect inflation expectations and, hence, th ...
The Economic Outlook and Monetary Policy
... the FOMC is discussing its reinvestment policy, but no decisions have been made. In my view, if economic conditions evolve as I anticipate, I would be comfortable changing our reinvestment policy this year. I view this as consistent with our principles of policy normalization and our statement that ...
... the FOMC is discussing its reinvestment policy, but no decisions have been made. In my view, if economic conditions evolve as I anticipate, I would be comfortable changing our reinvestment policy this year. I view this as consistent with our principles of policy normalization and our statement that ...
Contents
... but the OCR will always be a rather blunt instrument. In particular, it cannot be fine-tuned to affect different sectors of the economy differentially. The inherent limitations of tools like the OCR face other countries too. ...
... but the OCR will always be a rather blunt instrument. In particular, it cannot be fine-tuned to affect different sectors of the economy differentially. The inherent limitations of tools like the OCR face other countries too. ...
The 3-Equation New Keynesian Model — a Graphical
... simple models found in principles and intermediate macro textbooks — notably, the IS-LM -AS approach — and the models currently at the heart of the debates in monetary macroeconomics in academic and central bank circles that are taught in graduate courses. Our aim is to show how a graphical approach ...
... simple models found in principles and intermediate macro textbooks — notably, the IS-LM -AS approach — and the models currently at the heart of the debates in monetary macroeconomics in academic and central bank circles that are taught in graduate courses. Our aim is to show how a graphical approach ...
Long-Run and Short-Run Concerns: Growth, Productivity
... • The opportunity cost of holding cash is high during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...
... • The opportunity cost of holding cash is high during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...