“Good Governance” in Monetary Policy and the Negative Real
... explore the short-run tradeoff between inflation and output will lead to higher inflation rates and no permanent gains in terms of output. This essay intends to consider the prospects for the adoption of inflation targeting regimes in emerging market economies. In particular, it will focus on the ca ...
... explore the short-run tradeoff between inflation and output will lead to higher inflation rates and no permanent gains in terms of output. This essay intends to consider the prospects for the adoption of inflation targeting regimes in emerging market economies. In particular, it will focus on the ca ...
Chapter 32
... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
Chapter 33
... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
NBER WORKING PAPER SERIES FISCAL PREREQUISITES FOR A VIABLE A NON-TECHNICAL
... lower bounds on the stock of foreign exchange reserves characteristic of the collapsing exchange rate literature. Absent such a theory of "international liquidity," one cannot model satisfactorily a foreign exchange crisis that is not at the same time a government solvency crisis. Given such a lower ...
... lower bounds on the stock of foreign exchange reserves characteristic of the collapsing exchange rate literature. Absent such a theory of "international liquidity," one cannot model satisfactorily a foreign exchange crisis that is not at the same time a government solvency crisis. Given such a lower ...
7. Medium-Term Projections
... growth and appreciation pressures, short-term interest rates are kept at low levels while tightening through reserve requirement policy. Macro prudential measures will continue to be taken, should the recent global trends persist and credit growth expectations exceed 15 percent for a long period. On ...
... growth and appreciation pressures, short-term interest rates are kept at low levels while tightening through reserve requirement policy. Macro prudential measures will continue to be taken, should the recent global trends persist and credit growth expectations exceed 15 percent for a long period. On ...
Monetary Policy
... In the global economy, foreign-exchange market stability, or limited fluctuations in the foreign-exchange value of the dollar, is an important monetary policy goal of the Fed. A stable dollar simplifies planning for commercial and financial transactions. Fluctuations in the dollar’s value change the ...
... In the global economy, foreign-exchange market stability, or limited fluctuations in the foreign-exchange value of the dollar, is an important monetary policy goal of the Fed. A stable dollar simplifies planning for commercial and financial transactions. Fluctuations in the dollar’s value change the ...
a case study of class-based political business cycles
... The Whitlam Government was elected in December 1972 against a backdrop of a fully employed economy and even a one-off year (197273) of balance of payments surplus. The economic bounty suggested that it would be practical to implement Whitlam’s election promises. The only apparent bugbear was that th ...
... The Whitlam Government was elected in December 1972 against a backdrop of a fully employed economy and even a one-off year (197273) of balance of payments surplus. The economic bounty suggested that it would be practical to implement Whitlam’s election promises. The only apparent bugbear was that th ...
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Governance, Regulation, and Privatization
... the banks and allow them to be the means through which resources would be channeled to the nascent private sector. The expectation of an extraordinary growth in exports, as well as implicit bailout guarantees, generated privatization prices for the banks that were way above standard multiples-to-boo ...
... the banks and allow them to be the means through which resources would be channeled to the nascent private sector. The expectation of an extraordinary growth in exports, as well as implicit bailout guarantees, generated privatization prices for the banks that were way above standard multiples-to-boo ...
ue02-fehn 223213 en
... persistence if not even hysteresis in Germany. It is furthermore striking to note that Germany’s unemployment rate almost continuously increased over the 1990s and into the 21st century whereas other countries such as the US, the UK or the Netherlands were much more successful over this time period ...
... persistence if not even hysteresis in Germany. It is furthermore striking to note that Germany’s unemployment rate almost continuously increased over the 1990s and into the 21st century whereas other countries such as the US, the UK or the Netherlands were much more successful over this time period ...
ECON 300 Fall 2007 Midterm Essay 1. (30 points) In the general
... D. rise because the real exchange rate would fall. 17. A competitive firm rents capital until the marginal product of capital equals the A. real wage. B. rental price of capital. C. price of output. D. capital/labor ratio. 18. The government is running a budget surplus if A. government spending is g ...
... D. rise because the real exchange rate would fall. 17. A competitive firm rents capital until the marginal product of capital equals the A. real wage. B. rental price of capital. C. price of output. D. capital/labor ratio. 18. The government is running a budget surplus if A. government spending is g ...
Bade_Parkin_Macro_Lecture_CH13
... • The inflation tax is bigger than the tax on money holding, and it interacts with the income tax to lower saving and investment. • The core of the problem is that inflation increases the nominal interest rate, and because income taxes are paid on nominal interest income, the true income tax rate ri ...
... • The inflation tax is bigger than the tax on money holding, and it interacts with the income tax to lower saving and investment. • The core of the problem is that inflation increases the nominal interest rate, and because income taxes are paid on nominal interest income, the true income tax rate ri ...
The Role of Expectations in the FRB/US Macroeconomic Model
... The lack of adequate data has meant that builders of macroeconomic models have had to specify a priori how individuals form expectations (see box ‘‘Assumptions about the Ways in Which Expectations Are Formed’’). Most models developed in the 1960s and 1970s, including MPS, incorporated the simplifyin ...
... The lack of adequate data has meant that builders of macroeconomic models have had to specify a priori how individuals form expectations (see box ‘‘Assumptions about the Ways in Which Expectations Are Formed’’). Most models developed in the 1960s and 1970s, including MPS, incorporated the simplifyin ...
If a certain combination of goods or services lies outside the
... d. appreciate, making United States imports from Britain cheaper e. purchase 3 times more British goods than before the change occurred ...
... d. appreciate, making United States imports from Britain cheaper e. purchase 3 times more British goods than before the change occurred ...
NBER WORKING PAPER SERIES BOOM-BUST CYCLES IN MIDDLE INCOME COUNTRIES: Aaron Tornell
... by the interaction of two characteristics of financing typical of middle income countries: asymmetric financing opportunities and risky currency mismatch in the balance sheets of banks and firms. While the T-sector has access to several sources of external finance, the N-sector is heavily dependent ...
... by the interaction of two characteristics of financing typical of middle income countries: asymmetric financing opportunities and risky currency mismatch in the balance sheets of banks and firms. While the T-sector has access to several sources of external finance, the N-sector is heavily dependent ...
Document
... 3. Suppose that in recent years prescription drug costs have been rising at about 200% of the annual inflation rate. Expected inflation is expected to be 3% this year. A senior citizen on a fixed income of $35,000 per year who spent 10% of their annual income on prescription drugs last year can expe ...
... 3. Suppose that in recent years prescription drug costs have been rising at about 200% of the annual inflation rate. Expected inflation is expected to be 3% this year. A senior citizen on a fixed income of $35,000 per year who spent 10% of their annual income on prescription drugs last year can expe ...
NBER WORKING PAPER SERIES OKUN’S LAW Menzie D. Chinn
... continued on into the recovery period, although the most recent observations have been above the regression line. There does seem to be a consistent pattern wherein contractions are associated with employment growth below that implied by the relationship that obtains over both upswings ...
... continued on into the recovery period, although the most recent observations have been above the regression line. There does seem to be a consistent pattern wherein contractions are associated with employment growth below that implied by the relationship that obtains over both upswings ...
Decomposing Sources of Inflation
... between inflationary pressure and economic growth. Concerning price fluctuations, the source of instabilities have implications to policy setting. Hence, a central bank that aims to conduct effective monetary policy must comprehend with what is hidden behind the inflation shocks. Many discussions re ...
... between inflationary pressure and economic growth. Concerning price fluctuations, the source of instabilities have implications to policy setting. Hence, a central bank that aims to conduct effective monetary policy must comprehend with what is hidden behind the inflation shocks. Many discussions re ...
Ito Technical Working Paper No. 1
... as constants. Furthermore, the distribution of profits by firms will play no role, for the sake of simplicity. There are two possible explanations: (i) profits of the current period are distributed only in the following period and consumers may not borrow against them; or (ii) the government has lev ...
... as constants. Furthermore, the distribution of profits by firms will play no role, for the sake of simplicity. There are two possible explanations: (i) profits of the current period are distributed only in the following period and consumers may not borrow against them; or (ii) the government has lev ...
mmi03-westermann 223302 en
... the post-liberalization period, even if we do not condition on the occurrence of crises. Panel regressions reveal that credit growth is positively correlated with the ratio of N-to-T output, with changes in the real exchange rate, and with investment growth. However, credit growth is not significan ...
... the post-liberalization period, even if we do not condition on the occurrence of crises. Panel regressions reveal that credit growth is positively correlated with the ratio of N-to-T output, with changes in the real exchange rate, and with investment growth. However, credit growth is not significan ...
Monetary Policy Statement December 2007 Contents
... take advantage of the revenue surprise, by increasing spending or cutting taxes, that will undermine the role of the automatic stabilisers and will exacerbate pressures on inflation. ...
... take advantage of the revenue surprise, by increasing spending or cutting taxes, that will undermine the role of the automatic stabilisers and will exacerbate pressures on inflation. ...
Early 1980s recession
The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985. Long-term effects of the recession contributed to the Latin American debt crisis, the savings and loans crisis in the United States, and a general adoption of neoliberal economic policies throughout the 1980s and 1990s.