Estimation of discount factor (beta) and coefficient of relative risk
... as inflation has to be considered in decision making by the economic agents because it tends to erode the real value of assets. Future inflation expectations based on lagged inflation level (technically explained by the term ”adaptive inflation expectations”) are gernerally used to convert the inte ...
... as inflation has to be considered in decision making by the economic agents because it tends to erode the real value of assets. Future inflation expectations based on lagged inflation level (technically explained by the term ”adaptive inflation expectations”) are gernerally used to convert the inte ...
Fiscal Policy in a Depressed Economy
... bound, and that the central bank is unable or unwilling to provide additional stimulus through quantitative easing or other means—an assumption we discuss further in Section V. The fact that most estimates of Federal Reserve reaction functions suggest that, if it were possible to have negative short ...
... bound, and that the central bank is unable or unwilling to provide additional stimulus through quantitative easing or other means—an assumption we discuss further in Section V. The fact that most estimates of Federal Reserve reaction functions suggest that, if it were possible to have negative short ...
Chapter # 6
... previous peak or (2) the level it would have experienced had it remained on trend ...
... previous peak or (2) the level it would have experienced had it remained on trend ...
Stabilization policy, output, and employment
... 3. Suppose that the inflation rate had been constant at approximately 2% during the last several years. However, monetary policy has become substantially more expansionary during recent months. How will this shift to a more expansionary monetary policy affect the expected rate of inflation under the ...
... 3. Suppose that the inflation rate had been constant at approximately 2% during the last several years. However, monetary policy has become substantially more expansionary during recent months. How will this shift to a more expansionary monetary policy affect the expected rate of inflation under the ...
chapter overview
... policy) is likely to move the attached object to its desired destination, pushing on a string is not. ...
... policy) is likely to move the attached object to its desired destination, pushing on a string is not. ...
An Estimation of Inflation Threshold for Nigeria 1970-2008
... threshold effects and ascertain robustness by estimating the impact of sensitivity to the estimated method, high inflation observation, the location of the threshold, date frequency and the sensitivity to additional explanatory variables. They discovered that the pace at which the rates of inflation ...
... threshold effects and ascertain robustness by estimating the impact of sensitivity to the estimated method, high inflation observation, the location of the threshold, date frequency and the sensitivity to additional explanatory variables. They discovered that the pace at which the rates of inflation ...
Economic and Strategy Viewpoint Schroders Keith Wade
... Meanwhile, the US Federal Reserve (Fed) is still expected to look through the current low headline CPI rate and focus on a firmer core rate of inflation and a tightening labour market so as to raise rates in September 2015. We expect the Fed funds rate to rise to 0.75% by end-2015 and 2% by end-2016 ...
... Meanwhile, the US Federal Reserve (Fed) is still expected to look through the current low headline CPI rate and focus on a firmer core rate of inflation and a tightening labour market so as to raise rates in September 2015. We expect the Fed funds rate to rise to 0.75% by end-2015 and 2% by end-2016 ...
chap10
... printing money coupled with aggressive open market purchases could have produced inflation • real interest rates would not have risen and investment spending would have been less affected ...
... printing money coupled with aggressive open market purchases could have produced inflation • real interest rates would not have risen and investment spending would have been less affected ...
Cost of living and inflation measurement in Lebanon
... • The Central Administration of Statistics (CAS) is the principal national institution responsible for measuring inflation in Lebanon. • CAS started tracking the price of consumer goods since December 1998. – It published a quarterly CPI since 1999 with the technical assistance of IMF. – In 2007, th ...
... • The Central Administration of Statistics (CAS) is the principal national institution responsible for measuring inflation in Lebanon. • CAS started tracking the price of consumer goods since December 1998. – It published a quarterly CPI since 1999 with the technical assistance of IMF. – In 2007, th ...
FRBSF E L CONOMIC ETTER
... actual vacancy rates for this market. While conditions there were extremely tight during the dot-com boom, the ensuing dot-com bust coincided with an actual vacancy rate almost 2.5 percentage points above the estimated natural rate. Interestingly, the one major exception to this pattern is Seattle, ...
... actual vacancy rates for this market. While conditions there were extremely tight during the dot-com boom, the ensuing dot-com bust coincided with an actual vacancy rate almost 2.5 percentage points above the estimated natural rate. Interestingly, the one major exception to this pattern is Seattle, ...
Keynesian Macroeconomics without the LM Curve
... by money targeting.2 The Bundesbank’s money targets were explicitly tied to underlying inflation targets, and implicitly to output and exchange rate objectives. The Bundesbank was willing to miss the money targets when they conflicted with those macroeconomic objectives. As a result, one can provide ...
... by money targeting.2 The Bundesbank’s money targets were explicitly tied to underlying inflation targets, and implicitly to output and exchange rate objectives. The Bundesbank was willing to miss the money targets when they conflicted with those macroeconomic objectives. As a result, one can provide ...
CEOs` Economic Outlook Dims as More Plan to
... American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it as an increase in G and/or a lower T) on jobs and GDP growth (Click Here for paper). In order to do so, they make assumptions about the size of Government spending and tax multiplier ...
... American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it as an increase in G and/or a lower T) on jobs and GDP growth (Click Here for paper). In order to do so, they make assumptions about the size of Government spending and tax multiplier ...
2. I E D nternational
... Reserve Bank of Peru, the Bank of Mexico and the Bank of Thailand each slashed policy rates by 25 basis points, while the Central Bank of Chile opted to cut rates by 50 basis points and the Magyar Nemzeti Bank and the National Bank of Romania each announced a 75 basis point rate cut. Against this ba ...
... Reserve Bank of Peru, the Bank of Mexico and the Bank of Thailand each slashed policy rates by 25 basis points, while the Central Bank of Chile opted to cut rates by 50 basis points and the Magyar Nemzeti Bank and the National Bank of Romania each announced a 75 basis point rate cut. Against this ba ...
Monetary Policy Transmission
... makes the forecast of the ultimate policy target equal to the target. If the ultimate policy goal is a 2 percent inflation rate and the instrument is the federal funds rate, … then the targeting rule sets the federal funds rate at a level that makes the forecast of the inflation rate equal to 2 ...
... makes the forecast of the ultimate policy target equal to the target. If the ultimate policy goal is a 2 percent inflation rate and the instrument is the federal funds rate, … then the targeting rule sets the federal funds rate at a level that makes the forecast of the inflation rate equal to 2 ...
Special Focus: Mastering Economic Thinking Skills
... charged with the task of deciding which topics in microeconomics and macroeconomics to assign to my very capable writers. From my years of experience on the AP Economics Development Committee, I knew that a few topics in each area were new and perplexing to both students and teachers. From my years ...
... charged with the task of deciding which topics in microeconomics and macroeconomics to assign to my very capable writers. From my years of experience on the AP Economics Development Committee, I knew that a few topics in each area were new and perplexing to both students and teachers. From my years ...
Lecture 4: Productivity, Output, and Unemployment in the Short Run
... associated with the technocracy movement during the Great Depression (and Luddites and Saboteurs)—that unemployment comes from the introduction of machinery. • In its crudest form, the argument that technological progress must lead to unemployment is false, as there have been large increases in the ...
... associated with the technocracy movement during the Great Depression (and Luddites and Saboteurs)—that unemployment comes from the introduction of machinery. • In its crudest form, the argument that technological progress must lead to unemployment is false, as there have been large increases in the ...
CYCLICAL INDICATORS IN ARGENTINA A Tool for Monitoring
... indicators that are both coincident and leading. Thus the US leading economic indicators published monthly by the Conference Board1 is one of the most closely-watched economic statistics in that country, having been used for many years as a guide on the future direction of the economic activity. The ...
... indicators that are both coincident and leading. Thus the US leading economic indicators published monthly by the Conference Board1 is one of the most closely-watched economic statistics in that country, having been used for many years as a guide on the future direction of the economic activity. The ...
MacroeconoMics for a Modern econoMy
... (at present output) – the sum of its payroll costs plus turnover costs. In terms of a later construct, the “wage curve” is lowered by firms’ underestimating what will be the going wage at their competitors.10 Such a lowering of the wage curve serves to lower firms’ cost curves, thus to lower the pr ...
... (at present output) – the sum of its payroll costs plus turnover costs. In terms of a later construct, the “wage curve” is lowered by firms’ underestimating what will be the going wage at their competitors.10 Such a lowering of the wage curve serves to lower firms’ cost curves, thus to lower the pr ...
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.