Chapter 9
... b. Business taxes may change. Increased taxes lower the expected return. c. Technology may change. Technological change often involves lower costs, which would increase expected returns. d. Stock of capital goods on hand will affect new investment. If there is abundant idle capital on hand because o ...
... b. Business taxes may change. Increased taxes lower the expected return. c. Technology may change. Technological change often involves lower costs, which would increase expected returns. d. Stock of capital goods on hand will affect new investment. If there is abundant idle capital on hand because o ...
Business Fluctuations: Aggregate Demand and Supply Business
... In 1930, depositors lost confidence in the banks. From 1930 to 1932, there were four waves of banking panics. By 1933, more than 40% of all American banks had failed. The fear and uncertainty also reduced investment spending. The U.S. capital stock was lower in 1940 than it had been in 1930. ...
... In 1930, depositors lost confidence in the banks. From 1930 to 1932, there were four waves of banking panics. By 1933, more than 40% of all American banks had failed. The fear and uncertainty also reduced investment spending. The U.S. capital stock was lower in 1940 than it had been in 1930. ...
Mankiw SM Chap13 correct size:chap13.qxd.qxd
... Beginning in long-run equilibrium, where output is at the natural level, if the Federal Reserve increases the money supply, this will cause the economy to go through an expansionary phase. Starting with the IS-LM model in Figure 13-2A, an increase in the money supply will shift the LM curve to the r ...
... Beginning in long-run equilibrium, where output is at the natural level, if the Federal Reserve increases the money supply, this will cause the economy to go through an expansionary phase. Starting with the IS-LM model in Figure 13-2A, an increase in the money supply will shift the LM curve to the r ...
Working Paper No. 59 James R. Lothian Anthony Cassese 1050
... assumptions of the polar cases. For the most part, though, the empirical application of such models has been limited. Much of the empirical work is subject to the objection that the emphasis is upon one, or at most a few, of a considerably larger number of potential avenues for the international tra ...
... assumptions of the polar cases. For the most part, though, the empirical application of such models has been limited. Much of the empirical work is subject to the objection that the emphasis is upon one, or at most a few, of a considerably larger number of potential avenues for the international tra ...
1. O verview
... policy framework which takes into account macro financial risks. Policies implemented in this period aimed at managing macro financial risks without prejudice to price stability in the medium term. To this end, additional policy instruments were developed. Under the new strategy, monetary policy put ...
... policy framework which takes into account macro financial risks. Policies implemented in this period aimed at managing macro financial risks without prejudice to price stability in the medium term. To this end, additional policy instruments were developed. Under the new strategy, monetary policy put ...
Economics Group Weekly Economic & Financial Commentary U.S. Review October 24, 2014
... that economic growth was above trend in September, while a solid gain in the Leading Economic Index suggests that there is more growth ahead. Prices remain fairly benign for the consumer, while the labor market continues to accelerate. Meanwhile, the housing market is making modest gains again after ...
... that economic growth was above trend in September, while a solid gain in the Leading Economic Index suggests that there is more growth ahead. Prices remain fairly benign for the consumer, while the labor market continues to accelerate. Meanwhile, the housing market is making modest gains again after ...
Was the New Deal Contractionary?
... Can government policies that reduce the natural level of output increase actual output? For example, can facilitating monopoly pricing of firms, increasing the bargaining power of workers’ unions or, even more exotically, burning production such as pigs, corn or cattle, increase output? Most econom ...
... Can government policies that reduce the natural level of output increase actual output? For example, can facilitating monopoly pricing of firms, increasing the bargaining power of workers’ unions or, even more exotically, burning production such as pigs, corn or cattle, increase output? Most econom ...
Central Bank of Nigeria Communique No. 112 of the Monetary
... economies and ultimately strengthen the US dollar further against other currencies. Besides, I doubt if the issue of demand pressure in the foreign exchange market has been completely dealt with. The recent rally in the value of the Naira at the BDC‟s market is not necessarily due to reduction in de ...
... economies and ultimately strengthen the US dollar further against other currencies. Besides, I doubt if the issue of demand pressure in the foreign exchange market has been completely dealt with. The recent rally in the value of the Naira at the BDC‟s market is not necessarily due to reduction in de ...
Investment Update - Australia Post Superannuation Scheme
... Important note: All investments carry risk and may rise or fall. International investing involves additional risks, including the risk of currency fluctuations. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future return ...
... Important note: All investments carry risk and may rise or fall. International investing involves additional risks, including the risk of currency fluctuations. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future return ...
Year of the Monkey
... With that as the backdrop, let us start with taxes. Not surprisingly, the Republican candidates are proposing sweeping personal and corporate level tax cuts, which will have varying degrees of market-moving implications. A few Republican candidates would like to reduce or eliminate the home mortgag ...
... With that as the backdrop, let us start with taxes. Not surprisingly, the Republican candidates are proposing sweeping personal and corporate level tax cuts, which will have varying degrees of market-moving implications. A few Republican candidates would like to reduce or eliminate the home mortgag ...
fiscal policy in an expectations driven liquidity trap
... acknowledges financial support from the Centre for Macroeconomics. ...
... acknowledges financial support from the Centre for Macroeconomics. ...
macroeconomics class review
... Why does anyone bother to estimate the GNP or GDP? For the same reasons statistical data is also gathered on unemployment rates, consumer price levels, the international trade balance and so on – that is, to facilitate economic policy making by government, to assist in planning by decision-makers in ...
... Why does anyone bother to estimate the GNP or GDP? For the same reasons statistical data is also gathered on unemployment rates, consumer price levels, the international trade balance and so on – that is, to facilitate economic policy making by government, to assist in planning by decision-makers in ...
Monetary Policy Reaction Function in Turkey
... debt dynamics together with increase in country’s risk premium. Under these conditions, the CBRT implemented its monetary and exchange rate policy without announcing any operating targets. However the monitored balance sheet structure was almost same with the previous two years. Since the short term ...
... debt dynamics together with increase in country’s risk premium. Under these conditions, the CBRT implemented its monetary and exchange rate policy without announcing any operating targets. However the monitored balance sheet structure was almost same with the previous two years. Since the short term ...
Monetary Policy Statement June 2010 Contents
... In New Zealand, growth of around 3½ percent is expected this year and next. The main drivers of this outlook are higher export prices and volume growth, an improving labour market and a pick-up in residential and business investment. However, we expect households to remain relatively cautious, with ...
... In New Zealand, growth of around 3½ percent is expected this year and next. The main drivers of this outlook are higher export prices and volume growth, an improving labour market and a pick-up in residential and business investment. However, we expect households to remain relatively cautious, with ...
This version: August 30, 2000 Forthcoming, Journal of Money, Credit
... -91995 because of the limited availability of the land price index. Table 1 reports statistics summarizing the features of variability, co-movement and persistence of Mexico’s business cycle. These stylized facts are qualitatively consistent with the stylized facts of business cycles observed in ot ...
... -91995 because of the limited availability of the land price index. Table 1 reports statistics summarizing the features of variability, co-movement and persistence of Mexico’s business cycle. These stylized facts are qualitatively consistent with the stylized facts of business cycles observed in ot ...
67051073I_en.pdf
... Foreign capital, which went mainly to the export mining sector and public utilities, once again occupied a leading place in the economy, through the acquisition of many of the privatized State enterprises.13 The closure of almost the entire State development banking system, which played an important ...
... Foreign capital, which went mainly to the export mining sector and public utilities, once again occupied a leading place in the economy, through the acquisition of many of the privatized State enterprises.13 The closure of almost the entire State development banking system, which played an important ...
NBER WORKING PAPER SERIES TECHNOLOGY SHOCKS AND MONETARY POLICY: Jordi Galí
... Since the seminal work of Taylor (1993), many macroeconomists have shifted their attention to the analysis of the endogenous component of monetary policy, and its role in shaping the responses of nominal and real variables to different shocks. The contribution of the present paper to that research pr ...
... Since the seminal work of Taylor (1993), many macroeconomists have shifted their attention to the analysis of the endogenous component of monetary policy, and its role in shaping the responses of nominal and real variables to different shocks. The contribution of the present paper to that research pr ...
Chapter X - mcdonald - University of Illinois at Chicago
... being equal to the rate of discount which would make the present value of the series of annuities given by the returns expected from the capital asset during its life just equal to its supply price.” In the basic theory of finance, this is the internal rate of return for an investment, which is r in ...
... being equal to the rate of discount which would make the present value of the series of annuities given by the returns expected from the capital asset during its life just equal to its supply price.” In the basic theory of finance, this is the internal rate of return for an investment, which is r in ...
increase
... a. It must also show a deficit in its capital account. b. It must show a surplus in its capital account. c. It must increase the purchases of foreign goods and services. d. It must increase the domestic interest rates on its bonds. e. It must limit the flow of foreign capital investment. (59%) 8. Ec ...
... a. It must also show a deficit in its capital account. b. It must show a surplus in its capital account. c. It must increase the purchases of foreign goods and services. d. It must increase the domestic interest rates on its bonds. e. It must limit the flow of foreign capital investment. (59%) 8. Ec ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.