“The text was adapted by The Saylor Foundation under the CC BY
... components of aggregate demand). When the price level falls, the real value of wealth increases — it packs more purchasing power. For ex ample, if the price level falls by 25%, then $10,000 of wealth could purchase more goods and services than it would have if the price level had not fallen. An inc ...
... components of aggregate demand). When the price level falls, the real value of wealth increases — it packs more purchasing power. For ex ample, if the price level falls by 25%, then $10,000 of wealth could purchase more goods and services than it would have if the price level had not fallen. An inc ...
2010-II CENTRAL BANK OF THE REPUBLIC OF TURKEY
... Moreover, constraints related to external finance remains as a potential factor that might delay the recovery in many developing economies. Notwithstanding the lingering uncertainties regarding medium-term growth, developing economies were faced with inflationary pressures stemming from a relatively ...
... Moreover, constraints related to external finance remains as a potential factor that might delay the recovery in many developing economies. Notwithstanding the lingering uncertainties regarding medium-term growth, developing economies were faced with inflationary pressures stemming from a relatively ...
Is nominal GDP targeting a suitable tool for ECB monetary policy?
... appears to be less effective than the flexible form of Taylor rule that the ECB now uses. Nominal income targeting may be feasible, but probably not desirable Wolfgang Lechtlaer et al. (Kiel Institute for the World Economy). While it has become popular to discuss NGDP targeting as a radical departur ...
... appears to be less effective than the flexible form of Taylor rule that the ECB now uses. Nominal income targeting may be feasible, but probably not desirable Wolfgang Lechtlaer et al. (Kiel Institute for the World Economy). While it has become popular to discuss NGDP targeting as a radical departur ...
Inflation-Indexed Bonds and the Expectations
... be smaller than the stated nominal value at issuance. However, its coupons are not: the inflation-adjusted value of the principal for coupon computation purposes can fall below the initial value at issuance. In contrast, neither the principal nor the coupons on inflation-linked gilts in the UK are ...
... be smaller than the stated nominal value at issuance. However, its coupons are not: the inflation-adjusted value of the principal for coupon computation purposes can fall below the initial value at issuance. In contrast, neither the principal nor the coupons on inflation-linked gilts in the UK are ...
N - Personal.psu.edu
... II. The Aggregate Supply (AS) side of the economy When you think of AS, you should be thinking of production and all the costs associated with producing goods and services! There is a lot to discuss when thinking about any particular production process. First, we need to consider the production func ...
... II. The Aggregate Supply (AS) side of the economy When you think of AS, you should be thinking of production and all the costs associated with producing goods and services! There is a lot to discuss when thinking about any particular production process. First, we need to consider the production func ...
On the Desirability of Nominal GDP Targeting
... come close to implementing the flexible price and wage allocation. Nominal GDP targeting does almost as well as gap targeting. It is associated with smaller welfare losses than a conventionally parameterized Taylor rule and significantly outperforms inflation targeting. Nominal GDP targeting perform ...
... come close to implementing the flexible price and wage allocation. Nominal GDP targeting does almost as well as gap targeting. It is associated with smaller welfare losses than a conventionally parameterized Taylor rule and significantly outperforms inflation targeting. Nominal GDP targeting perform ...
Some Costs and Benefits of Price Stability in the United Kingdom
... Cost of economizing on real money balances-so-called shoe-leather effects; Costs of operating a less than perfectly indexed tax system; Costs of “front-end loading” of nominal debt contracts; Cost of constantly revising price lists-so-called menu costs. Feldstein (1997b) seeks to quantify the first ...
... Cost of economizing on real money balances-so-called shoe-leather effects; Costs of operating a less than perfectly indexed tax system; Costs of “front-end loading” of nominal debt contracts; Cost of constantly revising price lists-so-called menu costs. Feldstein (1997b) seeks to quantify the first ...
Interest Rate Conundrums in the Twenty-First Century
... 6-month or 12-month horizon) in short- and long- term interest rates was quite strong before 2000, but has weakened substantially in recent years. In contrast, the association between high- frequency changes (say, at a daily or 1-month horizon) in short- and long-term interest rates has strengthened ...
... 6-month or 12-month horizon) in short- and long- term interest rates was quite strong before 2000, but has weakened substantially in recent years. In contrast, the association between high- frequency changes (say, at a daily or 1-month horizon) in short- and long-term interest rates has strengthened ...
CHAPTER 1: ECONOMICS AND ECONOMIC REASONING
... The following answers are meant as guides to answering the end-of-chapter questions, not as definitive answers. The same questions often have many answers; this is especially true of policy-oriented questions. Although we have tried hard to see that mistakes are eliminated, the reality is that, as i ...
... The following answers are meant as guides to answering the end-of-chapter questions, not as definitive answers. The same questions often have many answers; this is especially true of policy-oriented questions. Although we have tried hard to see that mistakes are eliminated, the reality is that, as i ...
the nature and scope of economics
... approximation of the real world. This is true even of the complicated computerised models used by government economists in their attempts to predict economic trends. The complexity of a real-life economy is simply too great to be simulated in a model. Despite this, economic models (even the simplest ...
... approximation of the real world. This is true even of the complicated computerised models used by government economists in their attempts to predict economic trends. The complexity of a real-life economy is simply too great to be simulated in a model. Despite this, economic models (even the simplest ...
Aggregate Supply and Aggregate Demand
... They make supply plans in the short run. Imagine a photo of the economy at a moment in time. There are existing inputs (which determine production possibilities and long-run aggregate supply), and businesses face given input prices. They know what the wage rate is if they want to hire more labour; t ...
... They make supply plans in the short run. Imagine a photo of the economy at a moment in time. There are existing inputs (which determine production possibilities and long-run aggregate supply), and businesses face given input prices. They know what the wage rate is if they want to hire more labour; t ...
1 Principles of Macroeconomics, 9e
... A) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to decrease. B) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to increase. C) the interest rate to decrease, the quantity demanded of money t ...
... A) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to decrease. B) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to increase. C) the interest rate to decrease, the quantity demanded of money t ...
Bank of England Inflation Report May 2016
... resumption of capital flows to emerging market economies, and a sharp rise in the price of oil. Near-term prospects for China and other emerging market economies have improved a little, although medium-term downside risks remain. In the advanced economies, growth has picked up in the euro area in Q1 ...
... resumption of capital flows to emerging market economies, and a sharp rise in the price of oil. Near-term prospects for China and other emerging market economies have improved a little, although medium-term downside risks remain. In the advanced economies, growth has picked up in the euro area in Q1 ...
The Macroeconomic Effects of Large-Scale Asset Purchase Programs
... Counterfactual simulations suggest that the commitment to hold the short-term nominal interest rate at the ZLB increases the response of real activity and inflation roughly by factors of three and two, respectively, and introduces upward skewness in the uncertainty surrounding the median estimates. ...
... Counterfactual simulations suggest that the commitment to hold the short-term nominal interest rate at the ZLB increases the response of real activity and inflation roughly by factors of three and two, respectively, and introduces upward skewness in the uncertainty surrounding the median estimates. ...
Macroeconomics – Austrians vs. Keynesians
... Claussen in Distance Education for her online support; Margaret Bryner and Brian Bolling in Technology Services for their technical support; Mark Rowh was helpful with legal and publishing advice; Debbie Bond was most helpful with the intricacies of working with Word, Joyce Taylor for help with InDe ...
... Claussen in Distance Education for her online support; Margaret Bryner and Brian Bolling in Technology Services for their technical support; Mark Rowh was helpful with legal and publishing advice; Debbie Bond was most helpful with the intricacies of working with Word, Joyce Taylor for help with InDe ...
Volume 72 No. 2, June 2009 Contents
... The Reserve Bank of New Zealand has developed a new core macroeconomic model to replace the existing FPS (Forecasting and Policy System) model. KITT (Kiwi Inflation Targeting Technology), the new model, advances our modelling towards the frontier in terms of both theory and empirics. KITT reconfirms ...
... The Reserve Bank of New Zealand has developed a new core macroeconomic model to replace the existing FPS (Forecasting and Policy System) model. KITT (Kiwi Inflation Targeting Technology), the new model, advances our modelling towards the frontier in terms of both theory and empirics. KITT reconfirms ...
Complete issue
... regional network report high capacity utilisation but moderating growth in most of the industries. They are expecting growth to slow further in the coming six months. The number of building starts has declined. Household goods consumption has not increased since last autumn. On the other hand, publi ...
... regional network report high capacity utilisation but moderating growth in most of the industries. They are expecting growth to slow further in the coming six months. The number of building starts has declined. Household goods consumption has not increased since last autumn. On the other hand, publi ...
aggregate demand and aggregate supply
... Thus far we have found that changes in the price level cause changes in the level of spending by domestic consumers, businesses, government and foreign buyers in such a way that we can predict changes in the amount of real domestic output; that is, an increase in the price level, other things being ...
... Thus far we have found that changes in the price level cause changes in the level of spending by domestic consumers, businesses, government and foreign buyers in such a way that we can predict changes in the amount of real domestic output; that is, an increase in the price level, other things being ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... have less confidence in the government’s ability or willingness to respond to inflation shocks in a way that maintains the initial inflation rate. If so, any given positive demand shock may lead to more inflation and may require a greater output loss to reverse than would be true in an economy with ...
... have less confidence in the government’s ability or willingness to respond to inflation shocks in a way that maintains the initial inflation rate. If so, any given positive demand shock may lead to more inflation and may require a greater output loss to reverse than would be true in an economy with ...
Advanced Macroeconomics - Juridica – Kolegji Evropian
... international factors affecting macroeconomics. Words fall short to express my deep sense of gratitude to my research guide, Dr. Neeraj Hatekar, Professor, Department of Economics, University of Mumbai, Mumbai, India. His continuous support in my research was a source of inspiration. He taught me va ...
... international factors affecting macroeconomics. Words fall short to express my deep sense of gratitude to my research guide, Dr. Neeraj Hatekar, Professor, Department of Economics, University of Mumbai, Mumbai, India. His continuous support in my research was a source of inspiration. He taught me va ...
The output gap and inflation - Bank for International Settlements
... In the event of a (positive) output gap caused by a positive demand shock, firms will employ more labour in the short-run for a given capital stock to produce the extra output to meet demand. To induce a greater supply of labour, firms must bid up the real wage rate (this is consistent with a large ...
... In the event of a (positive) output gap caused by a positive demand shock, firms will employ more labour in the short-run for a given capital stock to produce the extra output to meet demand. To induce a greater supply of labour, firms must bid up the real wage rate (this is consistent with a large ...
Monetary policy, doubts and asset prices
... a wedge between average real marginal costs (or average output) and average inflation. The wedge is driven by the comovements between the stochastic discount factor and the real marginal costs. Since the stochastic discount factor is negatively related to long-run productivity, it is countercyclical ...
... a wedge between average real marginal costs (or average output) and average inflation. The wedge is driven by the comovements between the stochastic discount factor and the real marginal costs. Since the stochastic discount factor is negatively related to long-run productivity, it is countercyclical ...
Inflation Targeting, Reserves Accumulation, and Exchange Rate
... the central bank. Hence, in an IT regime, the central bank is not “goal independent” since its ultimate objective is fixed.2 However, the central bank is “instrument independent,” in the sense that it is free to try to attain the inflation target by adjusting any policy instrument it controls. Often ...
... the central bank. Hence, in an IT regime, the central bank is not “goal independent” since its ultimate objective is fixed.2 However, the central bank is “instrument independent,” in the sense that it is free to try to attain the inflation target by adjusting any policy instrument it controls. Often ...