Secular stagnation or financial cycle drag?
... equilibrium) real interest rate has been falling steadily and has been negative for some time.4 Now, the natural or equilibrium interest rate is typically defined as the rate that would prevail if output was at its potential level and hence inflation was stable. So, in plainer language, given the ma ...
... equilibrium) real interest rate has been falling steadily and has been negative for some time.4 Now, the natural or equilibrium interest rate is typically defined as the rate that would prevail if output was at its potential level and hence inflation was stable. So, in plainer language, given the ma ...
CHAPTER 14: Monetary Policy What Is Monetary Policy?
... The Money Market and the Fed’s Choice of Targets The Importance of the Federal Funds Rate ...
... The Money Market and the Fed’s Choice of Targets The Importance of the Federal Funds Rate ...
Current challenges for Europe
... inflationary pressure has a slower impact on price dynamics. Adjustment to macroeconomic shocks initially tends to have an effect above all on employment and economic activity, only impacting on prices later. It follows that if inflation is allowed to grow, it is then far more costly and difficult f ...
... inflationary pressure has a slower impact on price dynamics. Adjustment to macroeconomic shocks initially tends to have an effect above all on employment and economic activity, only impacting on prices later. It follows that if inflation is allowed to grow, it is then far more costly and difficult f ...
Annual Meeting - Lorenzo Bini Smaghi
... I’m giving these numbers for purely illustrative reasons - but is certainly not appropriate for an economy growing in real terms at 6% or more, as required by the catching-up process. As the inflationary pressures arise in East, the monetary policy becomes procyclical, further destabilising the econ ...
... I’m giving these numbers for purely illustrative reasons - but is certainly not appropriate for an economy growing in real terms at 6% or more, as required by the catching-up process. As the inflationary pressures arise in East, the monetary policy becomes procyclical, further destabilising the econ ...
Budget Deficit, Money Supply and Inflation: The Case of Pakistan
... among developing countries as well as countries characterized by high inflation, but not among advanced economies with low-inflation. In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) find ...
... among developing countries as well as countries characterized by high inflation, but not among advanced economies with low-inflation. In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) find ...
2. I E D nternational
... among the main factors to shape oil prices in the upcoming period. While the US shale oil industry faces a contraction, Iran’s likely return to the international oil market may balance the supply. Against this background, the global supply glut will support the current level of oil prices in the sho ...
... among the main factors to shape oil prices in the upcoming period. While the US shale oil industry faces a contraction, Iran’s likely return to the international oil market may balance the supply. Against this background, the global supply glut will support the current level of oil prices in the sho ...
Macroeconomic Modeling for Monetary Policy
... affects real activity in the short run purely through its effect on market interest rates. In particular, the central bank affects aggregate spending by controlling the short-term interest rate and, through market expectations of its future short rate decisions, by influencing the full yield curve. ...
... affects real activity in the short run purely through its effect on market interest rates. In particular, the central bank affects aggregate spending by controlling the short-term interest rate and, through market expectations of its future short rate decisions, by influencing the full yield curve. ...
Charles Schwab STANDARD PPT 2010 Template
... "transaction fees or other related expenses"), and cannot be invested in directly. The Conference Board's Coincident Economic Index (CEI) is a composite average of four individual economic indicators (employees on nonagricultural payrolls, personal income less transfer payments, industrial productio ...
... "transaction fees or other related expenses"), and cannot be invested in directly. The Conference Board's Coincident Economic Index (CEI) is a composite average of four individual economic indicators (employees on nonagricultural payrolls, personal income less transfer payments, industrial productio ...
ECON 102 Spring 2014 Homework 3 Due March 26, 2014 1. For this
... (a) The retired worker’s real income would decrease every year by approximately 10 percent of its former value. (b) If the inflation is also in the price the farmer gets for his products, he could gain. But more likely the price increase are mostly in what he buys, since farm machinery, fertilizer, ...
... (a) The retired worker’s real income would decrease every year by approximately 10 percent of its former value. (b) If the inflation is also in the price the farmer gets for his products, he could gain. But more likely the price increase are mostly in what he buys, since farm machinery, fertilizer, ...
Foreign-Exchange Market and Exchange Rates
... The monetary transmission mechanism describes the paths by which changes in monetary policy affect aggregate demand. You should understand the linkages. How does the interest-rate channel of monetary policy work? How does the exchange-rate channel of monetary policy work? How do changes in asset pri ...
... The monetary transmission mechanism describes the paths by which changes in monetary policy affect aggregate demand. You should understand the linkages. How does the interest-rate channel of monetary policy work? How does the exchange-rate channel of monetary policy work? How do changes in asset pri ...
Saudi Arabia`s Exchange Rate Policy Its Impact on Historical
... credible, 2) lower interest rates, 3) provision of a clear and easy-to-understand nominal anchor, and 4) moderation of inflationary expectations for high inflation countries. Disadvantages are: 1) susceptibility to currency crises, if capital markets are open to international flows, 2) requirement o ...
... credible, 2) lower interest rates, 3) provision of a clear and easy-to-understand nominal anchor, and 4) moderation of inflationary expectations for high inflation countries. Disadvantages are: 1) susceptibility to currency crises, if capital markets are open to international flows, 2) requirement o ...
The Lessons from the Housing Market Crisis Elias Karakitsos
... ‘originate-and-distribute’ one. ‘Bad’ financial engineering, in the form of synthetic products, such as Collateralised Debt Obligations (CDO) and derivative products, such as Credit Default Swaps (CDS), has disproportionately expanded credit to households. Banks set up a ‘shadow banking’ through Str ...
... ‘originate-and-distribute’ one. ‘Bad’ financial engineering, in the form of synthetic products, such as Collateralised Debt Obligations (CDO) and derivative products, such as Credit Default Swaps (CDS), has disproportionately expanded credit to households. Banks set up a ‘shadow banking’ through Str ...
Revisiting Monetary Policy in a Low Inflation Environment: Boston’s 55
... decade later, Japan continues to combat deflation with its policy still running up against the zero lower bound. Other participants at the earlier conference for the most part viewed Japan as an anomaly, and seemed to think that the likelihood of others ending up in Japan’s predicament was quite low ...
... decade later, Japan continues to combat deflation with its policy still running up against the zero lower bound. Other participants at the earlier conference for the most part viewed Japan as an anomaly, and seemed to think that the likelihood of others ending up in Japan’s predicament was quite low ...
NBER WORKING PAPER SERIES INFLATION TARGETING AND DEBT: LESSONS FROM BRAZIL
... growth rate of money can result in higher, rather than lower inflation if the government relies on seigniorage as a source of revenue and the budget surplus is not adjusted after the fall in seigniorage revenue. Sometimes, and often with specific reference to Latin America, this situation has been r ...
... growth rate of money can result in higher, rather than lower inflation if the government relies on seigniorage as a source of revenue and the budget surplus is not adjusted after the fall in seigniorage revenue. Sometimes, and often with specific reference to Latin America, this situation has been r ...
Chapter 4 Study Guide
... would shift the supply of loanable funds to the right and lower interest rates. b. would shift the supply of loanable funds to the left and increase interest rates. c. would shift the supply of loanable funds to the right and increase interest rates. d. would shift the supply of loanable funds to th ...
... would shift the supply of loanable funds to the right and lower interest rates. b. would shift the supply of loanable funds to the left and increase interest rates. c. would shift the supply of loanable funds to the right and increase interest rates. d. would shift the supply of loanable funds to th ...
The 'Sense and Nonsense of Maastricht' revisited: What have we learnt about stabilization in EMU?
... annum deemed a possibility in the future), 1.2 to 1.5 percent per annum for Poland, 1.9 percent per annum for Hungary and 1.6 percent per annum for the Czech Republic. All these estimates have the obvious shortcoming that they are based on very short datasets that do not allow the authors to filter ...
... annum deemed a possibility in the future), 1.2 to 1.5 percent per annum for Poland, 1.9 percent per annum for Hungary and 1.6 percent per annum for the Czech Republic. All these estimates have the obvious shortcoming that they are based on very short datasets that do not allow the authors to filter ...