Bank of England Inflation Report February 2017
... the subsequent year. Measures of inflation compensation derived from financial markets have stabilised at around average historical levels, having increased during late 2016 as concerns about a period of unusually low inflation faded. Monetary policy cannot prevent either the real adjustment that is ...
... the subsequent year. Measures of inflation compensation derived from financial markets have stabilised at around average historical levels, having increased during late 2016 as concerns about a period of unusually low inflation faded. Monetary policy cannot prevent either the real adjustment that is ...
NBER WORKING PAPER SERIES THE CONQUEST OF SOUTH AMERICAN INFLATION Thomas Sargent
... theoretic ideas to develop models in which hyperinflations may be an important part of an equilibrium path. In Zarazaga (1993) and Mondino, Sturzenegger, and Tommasi (1996), conflict between different groups in determining policy results in an equilibrium path where inflation may switch between phas ...
... theoretic ideas to develop models in which hyperinflations may be an important part of an equilibrium path. In Zarazaga (1993) and Mondino, Sturzenegger, and Tommasi (1996), conflict between different groups in determining policy results in an equilibrium path where inflation may switch between phas ...
2.2.1 What
... will have a more capital in their real estate within some years. Mortgages that are offered in Iceland with indexation are around 4.10% interest rate and normal mortgages have 5.65% floating interest rate and 6.65% fixed interest rate for 3 or 5 years. The interest rate can vary from the banks or th ...
... will have a more capital in their real estate within some years. Mortgages that are offered in Iceland with indexation are around 4.10% interest rate and normal mortgages have 5.65% floating interest rate and 6.65% fixed interest rate for 3 or 5 years. The interest rate can vary from the banks or th ...
The IS-LM-FE Model - Pearson Higher Education
... assets changes hands each day. Suppliers in the goods market decide how much to produce, and buyers decide how much to purchase. Suppliers of securities in financial markets decide how much to borrow, and buyers of those securities decide how much to lend and how to allocate their wealth. In any spe ...
... assets changes hands each day. Suppliers in the goods market decide how much to produce, and buyers decide how much to purchase. Suppliers of securities in financial markets decide how much to borrow, and buyers of those securities decide how much to lend and how to allocate their wealth. In any spe ...
NBER WORKING PAPER SERIES AN ALTERNATIVE INTERPRETATION
... In the second step, we combine the empirical distribution of our parameter estimates of the Taylor rule with a calibrated standard New Keynesian model and different estimates of trend inflation to infer the likelihood that the US economy was in a determinate equilibrium each period. We find that des ...
... In the second step, we combine the empirical distribution of our parameter estimates of the Taylor rule with a calibrated standard New Keynesian model and different estimates of trend inflation to infer the likelihood that the US economy was in a determinate equilibrium each period. We find that des ...
inflation report - Bank of Mauritius
... activity contracted in several major advanced countries. China’s economic growth rate slipped into single digit in the third and fourth quarters of 2008 under the impact of the global credit crisis and shrinking export markets. Annual GDP growth slowed to 9.0 per cent in the third quarter of 2008 ...
... activity contracted in several major advanced countries. China’s economic growth rate slipped into single digit in the third and fourth quarters of 2008 under the impact of the global credit crisis and shrinking export markets. Annual GDP growth slowed to 9.0 per cent in the third quarter of 2008 ...
NBER WORKING PAPER SERIES PRACTICAL MONETARY POLICY: Lars E.O. Svensson
... more problematic. One might think that the disparate performances of the Swedish and U.S. economies could be attributed to their respective monetary policies. I will argue that on the contrary, and perhaps surprisingly, in the summer of 2010, when forecasts for inflation (too low) and unemployment ( ...
... more problematic. One might think that the disparate performances of the Swedish and U.S. economies could be attributed to their respective monetary policies. I will argue that on the contrary, and perhaps surprisingly, in the summer of 2010, when forecasts for inflation (too low) and unemployment ( ...
Inflation and the Price of Real Assets ∗ Monika Piazzesi Martin Schneider
... asset prices — house prices rose while equity prices fell, as shown in Figure 3. Compared to the big swings in the major real asset positions, households’ net position in nominal credit instruments was relatively stable. As documented below, the stability of net positions masks substantial increases ...
... asset prices — house prices rose while equity prices fell, as shown in Figure 3. Compared to the big swings in the major real asset positions, households’ net position in nominal credit instruments was relatively stable. As documented below, the stability of net positions masks substantial increases ...
Bank of England Inflation Report February 2011
... Overview In the United Kingdom, CPI inflation rose further above the 2% target while output fell. Output was, however, temporarily affected by the heavy snowfall at the end of 2010 and growth appears likely to resume. The world economy grew further, although vulnerabilities remain. Expansionary mone ...
... Overview In the United Kingdom, CPI inflation rose further above the 2% target while output fell. Output was, however, temporarily affected by the heavy snowfall at the end of 2010 and growth appears likely to resume. The world economy grew further, although vulnerabilities remain. Expansionary mone ...
Forward Guidance in the Yield Curve: Short Rates versus Bond Supply
... that the Fed would slow or “taper” its QE program if the economy showed signs of improving. Within a week, yields of ten-year government bonds had increased by 21 basis points. On June 19, 2013, bond yields increased further following a Federal Reserve press conference, as markets feared an end to t ...
... that the Fed would slow or “taper” its QE program if the economy showed signs of improving. Within a week, yields of ten-year government bonds had increased by 21 basis points. On June 19, 2013, bond yields increased further following a Federal Reserve press conference, as markets feared an end to t ...
The Federal Reserve`s Framework for Monetary Policy
... purchases are to have the desired effect. However, asset purchases have to be carried out over a period of time, and making commitments with regard to asset purchases is potentially more complicated than in the case of the policy interest rate because, given the limited experience with these new to ...
... purchases are to have the desired effect. However, asset purchases have to be carried out over a period of time, and making commitments with regard to asset purchases is potentially more complicated than in the case of the policy interest rate because, given the limited experience with these new to ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Reducing Inflation: Motivation and Strategy
... been no legislation along those lines. It is significant, moreover, that no industrial country has fully (or even substantially) indexed its tax laws. More generally, the annual gains from shifting to price stability that are identified in this paper exceed the costs of the transition within a very ...
... been no legislation along those lines. It is significant, moreover, that no industrial country has fully (or even substantially) indexed its tax laws. More generally, the annual gains from shifting to price stability that are identified in this paper exceed the costs of the transition within a very ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Darby 1975; Feldstein 1976; Feldstein, Green, and Sheshinski 1978;Auerbach 1981; Gordon 1984).Indeed, a substantial body of research has concluded that one of the most important channels through which a change in the anticipated rate of price inflation can affect real economic activity is a nominal- ...
... Darby 1975; Feldstein 1976; Feldstein, Green, and Sheshinski 1978;Auerbach 1981; Gordon 1984).Indeed, a substantial body of research has concluded that one of the most important channels through which a change in the anticipated rate of price inflation can affect real economic activity is a nominal- ...
Monetary Policy Coordination, Monetary Integration and Other Essays
... Bayoumi (1994) and Ricci (1997). Mundell (1961) proposed a simple idea to determine whether it is beneficial for countries in a region to create a common currency area. Suppose that a region composed of two countries, A and B, is hit by an asymmetric shock. The shock is called asymmetric because it ...
... Bayoumi (1994) and Ricci (1997). Mundell (1961) proposed a simple idea to determine whether it is beneficial for countries in a region to create a common currency area. Suppose that a region composed of two countries, A and B, is hit by an asymmetric shock. The shock is called asymmetric because it ...
Economic Review, 2nd Quarter, 1999
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
Will “Velocity” Change the Conversation?
... declining. However, economic activity is broadening and strengthening in a manner which may suggest velocity has already begun to improve. In the U.S., the economy seems to be doing much better than most anticipated since the government shutdown. Indeed, private sector activity is growing above 3% a ...
... declining. However, economic activity is broadening and strengthening in a manner which may suggest velocity has already begun to improve. In the U.S., the economy seems to be doing much better than most anticipated since the government shutdown. Indeed, private sector activity is growing above 3% a ...
Mankiw 5/e Chapter 10: Aggregate Demand I
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
Tilting the Supply Schedule to Enhance Competition in
... is awarded in full, while marginal demand at the stop-out price is prorated. Since all buyers pay the same price, the uniform-price auction is analogous to a Walrasian market, with the only difference that demand schedules are submitted strategically; see Nyborg (2002). This difference makes uniform-p ...
... is awarded in full, while marginal demand at the stop-out price is prorated. Since all buyers pay the same price, the uniform-price auction is analogous to a Walrasian market, with the only difference that demand schedules are submitted strategically; see Nyborg (2002). This difference makes uniform-p ...
Monetary policy with uncertain estimates of potential output
... and prices adjust rapidly to clear all markets. According to this view, supply shocks (usually labelled technology shocks) are the sole source of fluctuations in real economic variables, such as output and employment. Demand shocks typically affect only nominal variables—the aggregate price level, f ...
... and prices adjust rapidly to clear all markets. According to this view, supply shocks (usually labelled technology shocks) are the sole source of fluctuations in real economic variables, such as output and employment. Demand shocks typically affect only nominal variables—the aggregate price level, f ...
Macroeconomics Chamberlin and Yueh
... • In the long run, the willingness of firms to produce does not depend on the price level, and therefore the aggregate supply function is vertical. • Aggregate supply in the short run, though, is different. In this case, it is argued that the schedule is upward-sloping, so supply rises with prices. ...
... • In the long run, the willingness of firms to produce does not depend on the price level, and therefore the aggregate supply function is vertical. • Aggregate supply in the short run, though, is different. In this case, it is argued that the schedule is upward-sloping, so supply rises with prices. ...