(Closed Economy) Dynamic Stochastic General Equilibrium Model
... likelihood to analyze which of the model’s different nominal and real frictions are important in the light of Philippines data. Also, the model is estimated for different subperiods (i.e., the power and Asian crises, and pre-inflation targeting vs. post-inflation targeting eras) in order to shed li ...
... likelihood to analyze which of the model’s different nominal and real frictions are important in the light of Philippines data. Also, the model is estimated for different subperiods (i.e., the power and Asian crises, and pre-inflation targeting vs. post-inflation targeting eras) in order to shed li ...
Exchange Rate Regime, Financial Market Bubbles and
... growing incentive to convert dollars into other currencies. In Japan the built up of foreign-currency denominated assets was mainly driven by private capital outflows, with foreign reserve accumulation substituting private foreign assets only discretionally. 7 With short-term and long-term interest ...
... growing incentive to convert dollars into other currencies. In Japan the built up of foreign-currency denominated assets was mainly driven by private capital outflows, with foreign reserve accumulation substituting private foreign assets only discretionally. 7 With short-term and long-term interest ...
04/2012 Rohit Azad and Anupam Das Abstract
... improves the ability of the triangle model to forecast inflation over the full 1990:2 to 2000:4 business cycle. He concludes that the combination of low unemployment and inflation, at least to some significant degree, was a reflection of the ‘traumatization’ of US workers due to the threat of job fl ...
... improves the ability of the triangle model to forecast inflation over the full 1990:2 to 2000:4 business cycle. He concludes that the combination of low unemployment and inflation, at least to some significant degree, was a reflection of the ‘traumatization’ of US workers due to the threat of job fl ...
NBER WORKING PAPER SERIES DEPRESSION Peter F. Basile
... while most economic ideas seem to have long and disputed pedigrees, there is wide agreement that the idea of a liquidity trap begins with Keynes. Keynes argued that the demand for money could become perfectly elastic (or almost perfectly elastic) with respect to the rate of interest, especially at v ...
... while most economic ideas seem to have long and disputed pedigrees, there is wide agreement that the idea of a liquidity trap begins with Keynes. Keynes argued that the demand for money could become perfectly elastic (or almost perfectly elastic) with respect to the rate of interest, especially at v ...
OCR GCSE (9-1) Geography B Dynamic Development Learner
... OCR’s resources are provided to support the teaching of OCR specifications, but in no way constitute an endorsed teaching method that is required by the Board, and the decision to use them lies with the individual teacher. Whilst every effort is made to ensure the accuracy of the content, OCR cannot ...
... OCR’s resources are provided to support the teaching of OCR specifications, but in no way constitute an endorsed teaching method that is required by the Board, and the decision to use them lies with the individual teacher. Whilst every effort is made to ensure the accuracy of the content, OCR cannot ...
The social and scientific temporal correlates of genotypic
... Ages, highest gains in 20th century Meisenberg, Lawless, Lambert, and Newton (2005): Sigmoidal gain curve, ended around 1980 for Western world In current study assumption that IQ rose by 3 points a decade until 2000, at which point it ceased People living during the renaissance could realistically h ...
... Ages, highest gains in 20th century Meisenberg, Lawless, Lambert, and Newton (2005): Sigmoidal gain curve, ended around 1980 for Western world In current study assumption that IQ rose by 3 points a decade until 2000, at which point it ceased People living during the renaissance could realistically h ...
Economic Survey
... a) A small town has only two grocery stores, which are located one block away from each other. b)Two neighbors buy the same model of automobile. c) Two farms are separated by a stream that provides water for the cattle raised on each farm. d) Two high schools have excellent football teams. 11. In th ...
... a) A small town has only two grocery stores, which are located one block away from each other. b)Two neighbors buy the same model of automobile. c) Two farms are separated by a stream that provides water for the cattle raised on each farm. d) Two high schools have excellent football teams. 11. In th ...
Expectations, Deflation Traps and Macroeconomic Policy∗
... More specifically, under learning private agents are assumed to form expectations using an adaptive forecasting rule, which they update over time in accordance with standard statistical procedures. The analysis of Evans, Guse, and Honkapohja (2008) was conducted in a standard New Keynesian model wit ...
... More specifically, under learning private agents are assumed to form expectations using an adaptive forecasting rule, which they update over time in accordance with standard statistical procedures. The analysis of Evans, Guse, and Honkapohja (2008) was conducted in a standard New Keynesian model wit ...
What s the alternative: five reasons to move away from the mainstream
... which add a risk premium to a risk-free rate – usually a government bond yield. A higher risk-free yield added on to the risk premium equates to a higher required rate of return. However, we believe alternatives can moderate against this. Analysis by Doherty and Bone (2012) suggests that the relativ ...
... which add a risk premium to a risk-free rate – usually a government bond yield. A higher risk-free yield added on to the risk premium equates to a higher required rate of return. However, we believe alternatives can moderate against this. Analysis by Doherty and Bone (2012) suggests that the relativ ...
Eco120Int Tutorials
... Assume the country initially starts out at full-employment output. (a) World culinary tastes are fickle. Your major export, the legs of spiny purple frogs, is declared “flavour of last month” by Epicureans Monthly, and so exports drop dramatically. Your AD curve shifts to the left. Graph the initial ...
... Assume the country initially starts out at full-employment output. (a) World culinary tastes are fickle. Your major export, the legs of spiny purple frogs, is declared “flavour of last month” by Epicureans Monthly, and so exports drop dramatically. Your AD curve shifts to the left. Graph the initial ...
Spending, taxes, and the budget deficit
... Over short-run periods and for much of the last 40 years, it appears that the real interest rate falls when the government budget goes into the red. Deficits do not appear to cause high real interest rates. Before jumping to conclusions, recall the previous discussion, which pointed to the cyclic ...
... Over short-run periods and for much of the last 40 years, it appears that the real interest rate falls when the government budget goes into the red. Deficits do not appear to cause high real interest rates. Before jumping to conclusions, recall the previous discussion, which pointed to the cyclic ...
A small New Keynesian model to analyze business cycle dynamics
... (1982) model-implied theoretical moments and crosscorrelations were remarkably compatible with actual United States data. A harsh hypothesis adopted by the RBC school was the impossibility of economic policymakers to affect real variables. The New Keynesian paradigm restored monetary non-neutrality ...
... (1982) model-implied theoretical moments and crosscorrelations were remarkably compatible with actual United States data. A harsh hypothesis adopted by the RBC school was the impossibility of economic policymakers to affect real variables. The New Keynesian paradigm restored monetary non-neutrality ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... An increase in the interest rate from 3 percent to 6 percent reduces planned investment from I0 to I1. ...
... An increase in the interest rate from 3 percent to 6 percent reduces planned investment from I0 to I1. ...
Some international trends in the regulation of mortgage markets
... countries variable rates are the rule, whereas in others they are the exception, constituting a good example of the dispersion in the mortgages models of developed countries. In fact, there seems not to be a general trend toward increasing the proportion of variable or fixed rates, as heterogeneous ...
... countries variable rates are the rule, whereas in others they are the exception, constituting a good example of the dispersion in the mortgages models of developed countries. In fact, there seems not to be a general trend toward increasing the proportion of variable or fixed rates, as heterogeneous ...
The effects of a government expenditures shock
... consider three military build-up episodes in the US as their exogenous government expenditure shocks.1 Within this approach, the dynamic e¤ects of the government spending shock are traced as the responses to innovations in the dummies corresponding to each of the three episodes. This alternative me ...
... consider three military build-up episodes in the US as their exogenous government expenditure shocks.1 Within this approach, the dynamic e¤ects of the government spending shock are traced as the responses to innovations in the dummies corresponding to each of the three episodes. This alternative me ...
1. O verview
... rebalancing process evidenced by recent data on the current account and the composition of growth, had favorable impact on risk perceptions towards Turkish economy. Moreover, the disinflationary impact of domestic demand has become more significant. Against this backdrop, the CBRT increased the liqu ...
... rebalancing process evidenced by recent data on the current account and the composition of growth, had favorable impact on risk perceptions towards Turkish economy. Moreover, the disinflationary impact of domestic demand has become more significant. Against this backdrop, the CBRT increased the liqu ...
del11 Carlin 16783019 en
... current account balance (Table 1, Col. 2 and 7 ). Ireland's current account balance deteriorated more or less continuously from a small surplus in 1999 to a deficit of 5.3% of GDP in 2007. This reflects over-heating of the domestic economy. Table 1 also reports an indicator of export market performa ...
... current account balance (Table 1, Col. 2 and 7 ). Ireland's current account balance deteriorated more or less continuously from a small surplus in 1999 to a deficit of 5.3% of GDP in 2007. This reflects over-heating of the domestic economy. Table 1 also reports an indicator of export market performa ...
3. Determinants of Demand for Goods and Services
... existing capital • Households buy new houses • Quantity of investment demanded depends on the interest rate • Interest rate measures the cost of funds to finance the investment Source: Mankiw (2000) Macroeconomics, Chapter 3 p. 42-76 ...
... existing capital • Households buy new houses • Quantity of investment demanded depends on the interest rate • Interest rate measures the cost of funds to finance the investment Source: Mankiw (2000) Macroeconomics, Chapter 3 p. 42-76 ...
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.