
The Study of Economics
... which there is a surplus of labor at the market wage rate, creating structural unemployment. As a result, the natural rate of unemployment, the sum of frictional and structural employment, is well above zero, even when jobs are plentiful. ...
... which there is a surplus of labor at the market wage rate, creating structural unemployment. As a result, the natural rate of unemployment, the sum of frictional and structural employment, is well above zero, even when jobs are plentiful. ...
NBER WORKING PAPER SERIES WHY IS THE DOLLAR SO HIGH? Martin Feldstein
... rates on long term mortgages. Since households can pay off and refinance their mortgages without penalty, many households did just that. They repaid their existing mortgages by borrowing at new lower interest rates. Because of the rising value of their homes, they were able to borrow more than the a ...
... rates on long term mortgages. Since households can pay off and refinance their mortgages without penalty, many households did just that. They repaid their existing mortgages by borrowing at new lower interest rates. Because of the rising value of their homes, they were able to borrow more than the a ...
Stephen J. Working OF INTEREST RATES
... Equation (la) is the IS curve, where the relevant interest rate is taken to be the long—term real rate. This reflects the fact that real expenditures include investment, which given adjustment costs depend upon the long—term real rate.3 Money market equilibrium is described by (ib), where the demand ...
... Equation (la) is the IS curve, where the relevant interest rate is taken to be the long—term real rate. This reflects the fact that real expenditures include investment, which given adjustment costs depend upon the long—term real rate.3 Money market equilibrium is described by (ib), where the demand ...
Chapter 18 - The Citadel
... As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what they were doing before. Slide ...
... As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what they were doing before. Slide ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
The Open Economy: Implications for Monetary and Fiscal Policy
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
... The exchange rate has by the mid-1980s become as central in United States economic policy discussions as it has long been in the rest of the world. Economists argue that the rapid dollar appreciation in the current disinflation has contributed powerfully to the speed of the disinflation. The 1984 Ec ...
The Broken Bank White Paper_v10
... has contributed to systemic inflation and more severe economic cycles. According to the Consumer Price Index, inflation has increased 2,324.3 percent since the inception of the Federal Reserve in 19135. An item that cost $100 in 19136 now costs $2,324.30. This system gives central banks the ability ...
... has contributed to systemic inflation and more severe economic cycles. According to the Consumer Price Index, inflation has increased 2,324.3 percent since the inception of the Federal Reserve in 19135. An item that cost $100 in 19136 now costs $2,324.30. This system gives central banks the ability ...
Despite all this, the public sector could play an important role in
... Opportunity cost of money keeping (Revenue that could be attained if money were invested rather than saving it, represented by market interest rate, where higher interest rates leads to higher opportunity cost and the lower the quantity demanded). The other type of cost is represented by the loss re ...
... Opportunity cost of money keeping (Revenue that could be attained if money were invested rather than saving it, represented by market interest rate, where higher interest rates leads to higher opportunity cost and the lower the quantity demanded). The other type of cost is represented by the loss re ...
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... analyse and present the information contained in the monetary aggregates in a manner that offers a coherent and credible guide for monetary policy aimed at the maintenance of price stability over the medium term (ECB, 1999c). Two characteristics of the quantitative reference value for monetary growt ...
... analyse and present the information contained in the monetary aggregates in a manner that offers a coherent and credible guide for monetary policy aimed at the maintenance of price stability over the medium term (ECB, 1999c). Two characteristics of the quantitative reference value for monetary growt ...
The Risks of Sovereign Lending: Lessons from History
... Most of the defaults in the 1820s were by new countries still struggling for their freedom. The demand for loans arose from the need for armaments to protect the borrowers' newly won independence and maintain internal order, not for investments in productive capacity that could repay, the loans. Bet ...
... Most of the defaults in the 1820s were by new countries still struggling for their freedom. The demand for loans arose from the need for armaments to protect the borrowers' newly won independence and maintain internal order, not for investments in productive capacity that could repay, the loans. Bet ...
Overlapping Generations Model
... Assuming positive bequests, these conditions are identical to the planned optimum, which is an important result. In this case, the interest rate is equal to the modified golden rule. Bequests prevent the interest rate from being higher than the modified golden rule. So, the capital stock cannot be t ...
... Assuming positive bequests, these conditions are identical to the planned optimum, which is an important result. In this case, the interest rate is equal to the modified golden rule. Bequests prevent the interest rate from being higher than the modified golden rule. So, the capital stock cannot be t ...
Policies to boost savings via capital markets : Case of Korea
... (1) Sharply decreased HH saving rate implies limited role of banks in the future (2) Aging society & growth potential of public pension and retirement pension (3) Low growth- low interest rate increasing need for diversification and medium risk & medium return products So, need to strengthen anoth ...
... (1) Sharply decreased HH saving rate implies limited role of banks in the future (2) Aging society & growth potential of public pension and retirement pension (3) Low growth- low interest rate increasing need for diversification and medium risk & medium return products So, need to strengthen anoth ...
FRBSF E L
... quarter of this year, the published output gap is only 0.2 percentage point wider than the double seasonally adjusted version, so using the balanced-approach policy rule, this would imply a first-quarter funds rate that is too low by 0.2 percentage point. Again, this small effect would be unwound la ...
... quarter of this year, the published output gap is only 0.2 percentage point wider than the double seasonally adjusted version, so using the balanced-approach policy rule, this would imply a first-quarter funds rate that is too low by 0.2 percentage point. Again, this small effect would be unwound la ...
The case for fiscal policy
... unemployment, the NAIRU), and that the level of aggregate demand would adjust to be consistent with that supply-side equilibrium. In the context of an exogenous money supply, this came through the assertion of a "real balance" effect, with changes in the price level generating changes in the real v ...
... unemployment, the NAIRU), and that the level of aggregate demand would adjust to be consistent with that supply-side equilibrium. In the context of an exogenous money supply, this came through the assertion of a "real balance" effect, with changes in the price level generating changes in the real v ...
file
... – Loan details and interest rate – Some borrower personal characteristics – Details on property which loan is secured against ...
... – Loan details and interest rate – Some borrower personal characteristics – Details on property which loan is secured against ...
2. International Economic Developments
... an EU and IMF-based financial support. However, the amount of the probable support to be higher than the other countries raises concerns over the sufficiency of the currently available resources. Meanwhile, public borrowing rates in Italy have also reached distressing levels that can challenge debt ...
... an EU and IMF-based financial support. However, the amount of the probable support to be higher than the other countries raises concerns over the sufficiency of the currently available resources. Meanwhile, public borrowing rates in Italy have also reached distressing levels that can challenge debt ...
Course Outline
... GDP does NOT count in intermediate goods/services, secondhand goods, financial transactions (e.g. stocks, bonds), transfer payments (e.g. social security, unemployment insurance), profits/income earned by U.S. companies/individuals overseas. ...
... GDP does NOT count in intermediate goods/services, secondhand goods, financial transactions (e.g. stocks, bonds), transfer payments (e.g. social security, unemployment insurance), profits/income earned by U.S. companies/individuals overseas. ...
On the Markets - Morgan Stanley Locator
... unconditional recession probability for the next 12 months is only 13%. Therefore, the unconditional probability of recession could very well be lower than 20% once we take into account a declining time trend and recent examples. However, the probability of recession should increase as the business ...
... unconditional recession probability for the next 12 months is only 13%. Therefore, the unconditional probability of recession could very well be lower than 20% once we take into account a declining time trend and recent examples. However, the probability of recession should increase as the business ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... The stability of inflation since 2000 is not consistent with a conventional Phillips curve. Such an equation predicts accelerating deflation when the output gap is negative. The cause of this anomaly is unclear, but Blanchard (2000) suggests one possibility. The accelerationist Phillips curve is bas ...
... The stability of inflation since 2000 is not consistent with a conventional Phillips curve. Such an equation predicts accelerating deflation when the output gap is negative. The cause of this anomaly is unclear, but Blanchard (2000) suggests one possibility. The accelerationist Phillips curve is bas ...
Vilhjálmur Egilsson
... billion ISK. The next thing to read is that the flow of investments into these stocks during the whole year 2006 was 93.1 billion ISK. So the stock increases by more than 300 billion ISK and less than 100 billion ISK is due to investments. This should normally lead to the conclusion that there was ...
... billion ISK. The next thing to read is that the flow of investments into these stocks during the whole year 2006 was 93.1 billion ISK. So the stock increases by more than 300 billion ISK and less than 100 billion ISK is due to investments. This should normally lead to the conclusion that there was ...
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.