CH 9 PDF
... • Application: Oil price shocks revisited – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily ...
... • Application: Oil price shocks revisited – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily ...
An Assessment of Price and Wage Setting in South Africa and
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
Power Point-Chapter 17
... Explore online information about the topics introduced in this chapter. Click on the Connect button to launch your browser and go to the Economics: Today and Tomorrow Web site. At this site, you will find interactive activities, current events information, and Web sites correlated with the chapters ...
... Explore online information about the topics introduced in this chapter. Click on the Connect button to launch your browser and go to the Economics: Today and Tomorrow Web site. At this site, you will find interactive activities, current events information, and Web sites correlated with the chapters ...
Inflation Risk Management in Project Finance
... “Contractual” inflation differs fro m “market” inflation, since in the first case the risk is previously agreed by the public and private counterparts – always considering even the sponsoring banks of the latter – whereas market risk is a wider and mult ilateral exposure to inflation, not always or ...
... “Contractual” inflation differs fro m “market” inflation, since in the first case the risk is previously agreed by the public and private counterparts – always considering even the sponsoring banks of the latter – whereas market risk is a wider and mult ilateral exposure to inflation, not always or ...
Price-level targeting as a monetary policy strategy
... Safeguarding price stability has increasingly become a primary objective of monetary policy worldwide in recent decades. Price stability is generally taken in this context to mean a low inflation rate. In recent times, however, an ever-growing number of academics, in particular, have been asking whe ...
... Safeguarding price stability has increasingly become a primary objective of monetary policy worldwide in recent decades. Price stability is generally taken in this context to mean a low inflation rate. In recent times, however, an ever-growing number of academics, in particular, have been asking whe ...
Will my portfolio give me an inflation plus return?
... investors a high level of certainty about the asset mix in their portfolio. It also reduced the risks of asset allocators making shortterm ‘market calls’, which could increase risk or reduce returns. Such asset allocation adjustments are a concern where investment decision making rests (as is common ...
... investors a high level of certainty about the asset mix in their portfolio. It also reduced the risks of asset allocators making shortterm ‘market calls’, which could increase risk or reduce returns. Such asset allocation adjustments are a concern where investment decision making rests (as is common ...
Chapter 14
... amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. An increase in expected future profit increases the i ...
... amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. An increase in expected future profit increases the i ...
Introduction to Macroeconomics Lecture Notes
... Capital stock is the stock of fixed capital (machines, buildings, ...) in enterprises and in the general government sector. This must be distinguished carefully from the informal usage of the word ‘capital’ as ‘money, liquid wealth’. By definition, capital contains all produced means of production. ...
... Capital stock is the stock of fixed capital (machines, buildings, ...) in enterprises and in the general government sector. This must be distinguished carefully from the informal usage of the word ‘capital’ as ‘money, liquid wealth’. By definition, capital contains all produced means of production. ...
Lecture Notes on Macroeconomic Principles
... 2. Goods and services are selling at higher prices. Since what people really care about is the total volume of available goods and services, and not so much the prices at which these goods and services sell, we want to correct GDP for the effects of inflation, that is, for rising prices. Real GD ...
... 2. Goods and services are selling at higher prices. Since what people really care about is the total volume of available goods and services, and not so much the prices at which these goods and services sell, we want to correct GDP for the effects of inflation, that is, for rising prices. Real GD ...
NBER WORKING PAPER SERIES A MODEL OF SECULAR STAGNATION Gauti B. Eggertsson
... natural rate of interest of arbitrary persistence that can, therefore, explain long-lasting slumps. This is particularly relevant when considering the Great Depression in the US (where the short term interest rate started to drop in 1929 only to finally start rising again in 1947) or current day Jap ...
... natural rate of interest of arbitrary persistence that can, therefore, explain long-lasting slumps. This is particularly relevant when considering the Great Depression in the US (where the short term interest rate started to drop in 1929 only to finally start rising again in 1947) or current day Jap ...
Inflation and the business cycle
... • Deflators (GDP deflator, Consumption Expenditure Deflator) ...
... • Deflators (GDP deflator, Consumption Expenditure Deflator) ...
Basics of Engineering Economy
... • Purchasing power of deflated currency is greater in future than at present • Sounds good after inflationary period, however … • There are fewer jobs, less credit and fewer loans available; overall ‘tighter’ money ...
... • Purchasing power of deflated currency is greater in future than at present • Sounds good after inflationary period, however … • There are fewer jobs, less credit and fewer loans available; overall ‘tighter’ money ...
CH 11 PDF
... • Since prices are sticky in the short run in the Keynesian model, the price level doesn't adjust to restore general equilibrium – Keynesians assume that when not in general equilibrium, the economy lies at the intersection of the IS and LM curves, and may be off the FE line – This represents the as ...
... • Since prices are sticky in the short run in the Keynesian model, the price level doesn't adjust to restore general equilibrium – Keynesians assume that when not in general equilibrium, the economy lies at the intersection of the IS and LM curves, and may be off the FE line – This represents the as ...
Aggregate Demand and Aggregate Supply
... • Because prices are sticky in the short run, economists think of GDP as being determined primarily by demand factors in the short run. • The aggregate demand curve depicts the relationship between the price level and total demand for real output in the economy. The aggregate demand curve is downwar ...
... • Because prices are sticky in the short run, economists think of GDP as being determined primarily by demand factors in the short run. • The aggregate demand curve depicts the relationship between the price level and total demand for real output in the economy. The aggregate demand curve is downwar ...
Real-Wage Rigidity - Pearson Higher Education
... – The FE line is vertical, as in the classical model, since fullemployment output is determined in the labor market and doesn't depend on the real interest rate – But in the Keynesian model, changes in labor supply don't affect the FE line, since they don't affect equilibrium employment – A change i ...
... – The FE line is vertical, as in the classical model, since fullemployment output is determined in the labor market and doesn't depend on the real interest rate – But in the Keynesian model, changes in labor supply don't affect the FE line, since they don't affect equilibrium employment – A change i ...
CHAP1.WP (Word5)
... they are somehow prevented from filling the available vacancies. The main reasons for this mismatch are lack of skills, race and sex discrimination, and geographical disparity. Turnover unemployment consists of those individuals in the work force who are “between jobs,” usually by choice, and are se ...
... they are somehow prevented from filling the available vacancies. The main reasons for this mismatch are lack of skills, race and sex discrimination, and geographical disparity. Turnover unemployment consists of those individuals in the work force who are “between jobs,” usually by choice, and are se ...
Chapter 8 Aggregate Demand and Aggregate Supply
... – Because higher prices reduce real spending power, prices and output are negatively related. ...
... – Because higher prices reduce real spending power, prices and output are negatively related. ...
