Macroeconomics, Fall 2010, Final Exam
... b. was very substantial during the first four years of the Great Depression, prices fall ing 10 percent per year or more. c. probably created difficulties in Japan during the late 1990s and early 2000s. d. creates a problem for the Fed, because nominal interest rates cannot be lower than zero and t ...
... b. was very substantial during the first four years of the Great Depression, prices fall ing 10 percent per year or more. c. probably created difficulties in Japan during the late 1990s and early 2000s. d. creates a problem for the Fed, because nominal interest rates cannot be lower than zero and t ...
6285 (9) Cost Cutting or Stagflation?
... Industrialized Countries: Long-Term Inflation and Growth ...
... Industrialized Countries: Long-Term Inflation and Growth ...
Chapter 14 Monetary Policy
... relative to their customer deposits. 1. Raising the reserve ratio increases required reserves and shrinks excess reserves. Any loss of excess reserves shrinks banks’ lending ability and, therefore, the potential money supply by a multiple amount of the change in excess reserves. 2. Lowering the rese ...
... relative to their customer deposits. 1. Raising the reserve ratio increases required reserves and shrinks excess reserves. Any loss of excess reserves shrinks banks’ lending ability and, therefore, the potential money supply by a multiple amount of the change in excess reserves. 2. Lowering the rese ...
Lecture 16
... A simple rule, is something like: Conduct open market operations so that M1 grows by five percent per year. Another way of stating this rule is: Adopt a long-term policy for the money supply. If it turns out that aggregate demand and aggregate supply are not in balance, wait for the normal adjustmen ...
... A simple rule, is something like: Conduct open market operations so that M1 grows by five percent per year. Another way of stating this rule is: Adopt a long-term policy for the money supply. If it turns out that aggregate demand and aggregate supply are not in balance, wait for the normal adjustmen ...
Differences in Economic Fluctuations in Japan and the United States
... Just as Tobin (1980) argued that researchers should “take some encouragement from the [improved] economic performance of the advanced capitalist economies in the post World War II period,” so also might they take encouragement from the macroeconomic performance of the Japanese economy during the las ...
... Just as Tobin (1980) argued that researchers should “take some encouragement from the [improved] economic performance of the advanced capitalist economies in the post World War II period,” so also might they take encouragement from the macroeconomic performance of the Japanese economy during the las ...
Search theory and applied economic research
... (Wallace 2001). Theses shortcuts do not permit to investigate why a loss of confidence in a currency can occur, the consequences of such a currency crises for trade, the emergence or disappearance of parallel currencies, or the preconditions for the successful launch of a new currency (e. g. the Eur ...
... (Wallace 2001). Theses shortcuts do not permit to investigate why a loss of confidence in a currency can occur, the consequences of such a currency crises for trade, the emergence or disappearance of parallel currencies, or the preconditions for the successful launch of a new currency (e. g. the Eur ...
Chapter 15 Inflation A Monetary Phenomenon
... elect to cover the appendix (Money Creation and Monetary Policy), another session or two will be required. In defining inflation, it is important that students understand that inflation is a continuing, or long-run, phenomenon. Once-and-for-all increases in the price level are excluded because no po ...
... elect to cover the appendix (Money Creation and Monetary Policy), another session or two will be required. In defining inflation, it is important that students understand that inflation is a continuing, or long-run, phenomenon. Once-and-for-all increases in the price level are excluded because no po ...
NBER WORKING PAPER SERIES INFLATION AND LABOR—MARKET ADJUSTMENT Working Paper No. 1153
... Professor of Economics, Michigan State Unversity, and Research Associate, National Bureau of Economic Research. Support for this research vas provided by the Alfred P. Sloan Foundation. Helpful coxnnnts were provided by James Brown, John Carlson, James Johannes, Lawrence Kahn, and participants in se ...
... Professor of Economics, Michigan State Unversity, and Research Associate, National Bureau of Economic Research. Support for this research vas provided by the Alfred P. Sloan Foundation. Helpful coxnnnts were provided by James Brown, John Carlson, James Johannes, Lawrence Kahn, and participants in se ...
Inflation targeting vs. nominal GDP targeting
... annual inflation rate, usually a low one, and endeavour to achieve this goal. By this nominal anchor they attempt to maintain price stability, which is understood to be a low and stable inflation rate. The predecessor of inflation targeting was monetary targeting (where central banks target money suppl ...
... annual inflation rate, usually a low one, and endeavour to achieve this goal. By this nominal anchor they attempt to maintain price stability, which is understood to be a low and stable inflation rate. The predecessor of inflation targeting was monetary targeting (where central banks target money suppl ...
FISCAL POLICY
... The bank rate is the upper limit (4.75 percent) of this band and is the rate at which the Bank will loan oneday funds to financial institutions (deficit clearers). The lower limit is the rate the Bank will pay on one-day funds deposited by those same institutions (surplus clearers). Now the overnigh ...
... The bank rate is the upper limit (4.75 percent) of this band and is the rate at which the Bank will loan oneday funds to financial institutions (deficit clearers). The lower limit is the rate the Bank will pay on one-day funds deposited by those same institutions (surplus clearers). Now the overnigh ...
The Impact of Budget Deficit
... Since becoming an independent state Ukraine has experienced high levels of both inflation and budget deficit, making itself an interesting case study of the relationship between the two fundamental indicators. In early 90-s consumer price inflation reached a 10000% a year, the highest level among tr ...
... Since becoming an independent state Ukraine has experienced high levels of both inflation and budget deficit, making itself an interesting case study of the relationship between the two fundamental indicators. In early 90-s consumer price inflation reached a 10000% a year, the highest level among tr ...
Document
... Consequently, the 'aggregate demand rises which shifts the D curve to the right to DI and thus excess demand in created equivalent to EEl (=YFY1) in Panel (B) of the figure. This raises the price level, the aggregate supply being fixed, as shown by the vertical portion of the supply curve S. The ri ...
... Consequently, the 'aggregate demand rises which shifts the D curve to the right to DI and thus excess demand in created equivalent to EEl (=YFY1) in Panel (B) of the figure. This raises the price level, the aggregate supply being fixed, as shown by the vertical portion of the supply curve S. The ri ...
Realising our potential: Potential output and the monetary policy framework
... In an ideal world, we would take full account of these short to medium term influences on potential, but it is difficult to measure and interpret these movements in real time. The Reserve Bank’s use of trends in estimating potential output means these estimates capture the large permanent or persist ...
... In an ideal world, we would take full account of these short to medium term influences on potential, but it is difficult to measure and interpret these movements in real time. The Reserve Bank’s use of trends in estimating potential output means these estimates capture the large permanent or persist ...
Macroeconomic Shocks and Monetary Policy
... variables. Monetary policy can only respond to unexpected economic shocks first after they have ...
... variables. Monetary policy can only respond to unexpected economic shocks first after they have ...
The Impact of the Great Recession on Monetary and Fiscal Policy in
... Vol. 6 No. 1 / March 2015 ...
... Vol. 6 No. 1 / March 2015 ...
Fiat Value in the Theory of Value
... function is not differentiable at points along that line. The MP of money is bounded away from zero above the line and is zero below the line. The derivative from below is the value of the MP of money for points on this line. Variable y is the output of the business sector and does not include ...
... function is not differentiable at points along that line. The MP of money is bounded away from zero above the line and is zero below the line. The derivative from below is the value of the MP of money for points on this line. Variable y is the output of the business sector and does not include ...
Impact of Inflation on Fiscal Aggregates in Austria
... social security contributions. To prevent (real and inflation-induced) wage increases from pushing more and more people over these limits, which would exempt a growing share of their income from contributions, countries generally adopt laws stipulating that such caps be indexed to inflation. Austria ...
... social security contributions. To prevent (real and inflation-induced) wage increases from pushing more and more people over these limits, which would exempt a growing share of their income from contributions, countries generally adopt laws stipulating that such caps be indexed to inflation. Austria ...
FRBSF E L CONOMIC ETTER
... further and further below the estimated level.To counteract what was thought to be a weak economy, the Fed followed an expansionary policy, contributing to the high inflation the U.S. experienced during this period. In light of Orphanides’s research, some economists have argued that the output gap i ...
... further and further below the estimated level.To counteract what was thought to be a weak economy, the Fed followed an expansionary policy, contributing to the high inflation the U.S. experienced during this period. In light of Orphanides’s research, some economists have argued that the output gap i ...