Three essays about monetary policy in China - ROS Home
... informally targeting inflation although no explicit target has been announced. Chapter 2 focuses on China’s monetary conditions and aggregate demand in terms of the monetary conditions index (MCI). Different transmission channels are considered through which monetary conditions might influence aggre ...
... informally targeting inflation although no explicit target has been announced. Chapter 2 focuses on China’s monetary conditions and aggregate demand in terms of the monetary conditions index (MCI). Different transmission channels are considered through which monetary conditions might influence aggre ...
romewp2013-01 - Research on Money in the Economy” ROME
... models’ theoretical appeal, they have still not been able to adequately explain one of the oldest and most fundamental artefacts of economic life – i.e. money. The neglect of money in monetary policy circles seems to have come to an end since the dawn of the financial crisis in 2007. Since central ...
... models’ theoretical appeal, they have still not been able to adequately explain one of the oldest and most fundamental artefacts of economic life – i.e. money. The neglect of money in monetary policy circles seems to have come to an end since the dawn of the financial crisis in 2007. Since central ...
INFLATION DYNAMICS IN VIETNAM Hien Thi Thu Le
... Demand-pull inflation happens when the level of aggregate demand is growing at an unsustainable rate leading to increased pressure on scare resources and a positive output gap. Aggregate demand is made up of all spending in the economy. An increase in aggregate demand could be because consumers are ...
... Demand-pull inflation happens when the level of aggregate demand is growing at an unsustainable rate leading to increased pressure on scare resources and a positive output gap. Aggregate demand is made up of all spending in the economy. An increase in aggregate demand could be because consumers are ...
mtw11-Benz 16830266 en
... due to two opposing forces. On the one hand, a high share of oshored production increases the leverage of a given research eort and thus leads to more innovative work. On the other hand, a high share of oshored production increases the risk of imitation, which destroys pro ts from Northern innova ...
... due to two opposing forces. On the one hand, a high share of oshored production increases the leverage of a given research eort and thus leads to more innovative work. On the other hand, a high share of oshored production increases the risk of imitation, which destroys pro ts from Northern innova ...
Convertible Bonds Primer
... limited (or European style). In the case of a takeover or any activity that can increase share value, the convertible holder with limited convertibility may not be able to participate in the appreciation. Dilution Protection – Holders of convertibles are not compensated when normal dividends are dis ...
... limited (or European style). In the case of a takeover or any activity that can increase share value, the convertible holder with limited convertibility may not be able to participate in the appreciation. Dilution Protection – Holders of convertibles are not compensated when normal dividends are dis ...
Multiple Choice Questions
... Chapter 18 Equity Valuation Models 16. Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A ...
... Chapter 18 Equity Valuation Models 16. Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A ...
Estimating the e®ects of ¯scal policy in OECD countries Roberto Perotti
... and almost exclusively on US data. In this paper, I extend the structural Vector Autoregression methodology developed in Blanchard and Perotti [2002] to study the e®ects of ¯scal policy in ¯ve countries for which I was able to assemble su±ciently detailed, non-interpolated quarterly data on the budg ...
... and almost exclusively on US data. In this paper, I extend the structural Vector Autoregression methodology developed in Blanchard and Perotti [2002] to study the e®ects of ¯scal policy in ¯ve countries for which I was able to assemble su±ciently detailed, non-interpolated quarterly data on the budg ...
EAST WEST BANCORP INC (Form: 10-Q, Received
... verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncert ...
... verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncert ...
Bank of England Inflation Report August 2010
... first vertical dashed line, the distribution reflects the likelihood of revisions to the data over the past; to the right, it reflects uncertainty over the evolution of GDP growth in the future. If economic circumstances identical to today’s were to prevail on 100 occasions, the MPC’s best collectiv ...
... first vertical dashed line, the distribution reflects the likelihood of revisions to the data over the past; to the right, it reflects uncertainty over the evolution of GDP growth in the future. If economic circumstances identical to today’s were to prevail on 100 occasions, the MPC’s best collectiv ...
Investment Hangover and the Great Recession
... evidence, an additional— Keynesian— aggregate demand mechanism is needed. Accordingly, we depart from the Hayekian view by emphasizing that monetary policy plays a central role in the aggregate reallocation mechanism. If in‡ation cannot increase in the short run— an assumption that we maintain— then ...
... evidence, an additional— Keynesian— aggregate demand mechanism is needed. Accordingly, we depart from the Hayekian view by emphasizing that monetary policy plays a central role in the aggregate reallocation mechanism. If in‡ation cannot increase in the short run— an assumption that we maintain— then ...
Nominal GDP Targeting and the Taylor Rule on
... The purpose of this paper is to argue that evaluating the desirability of a nominal GDP targeting rule relative to a Taylor rule requires that the actual information available to central bankers be taken into account in any model-based comparison. To accomplish this, we consider the implications fo ...
... The purpose of this paper is to argue that evaluating the desirability of a nominal GDP targeting rule relative to a Taylor rule requires that the actual information available to central bankers be taken into account in any model-based comparison. To accomplish this, we consider the implications fo ...
Optimal fiscal and monetary policy action in a closed economy!
... short run and that these costs are not trivial. By contrast, in the medium- and long-term, debt consolidation becomes superior across all cases and this more than o¤sets its short-term costs, so that eventually lifetime, or net, utility is higher with debt consolidation.2 ...
... short run and that these costs are not trivial. By contrast, in the medium- and long-term, debt consolidation becomes superior across all cases and this more than o¤sets its short-term costs, so that eventually lifetime, or net, utility is higher with debt consolidation.2 ...
Negotiable Certificates of Deposit
... having either transactions accounts or nonpersonal time deposits (which include virtually all negotiable CDs) will be required to hold reserves as specified in Regulation D. Reserve requirements increase the cost of funds to depository institutions since a portion of total assets must be set aside i ...
... having either transactions accounts or nonpersonal time deposits (which include virtually all negotiable CDs) will be required to hold reserves as specified in Regulation D. Reserve requirements increase the cost of funds to depository institutions since a portion of total assets must be set aside i ...
Good
... macroeconomic behavior reflects the behaviors of many individuals and firms interacting in markets. These markets of the economy are added together (or aggregated). Thus in macroeconomics we study the aggregate market(s). In microeconomics, on the other hand, we study an individual market, say, a co ...
... macroeconomic behavior reflects the behaviors of many individuals and firms interacting in markets. These markets of the economy are added together (or aggregated). Thus in macroeconomics we study the aggregate market(s). In microeconomics, on the other hand, we study an individual market, say, a co ...
APMacroPracFIN
... a. in which prices are unstable. b. in which prices are lowest. c. in which prices are highest. d. that serves as a reference point or benchmark. e. in which nominal output is largest. ...
... a. in which prices are unstable. b. in which prices are lowest. c. in which prices are highest. d. that serves as a reference point or benchmark. e. in which nominal output is largest. ...
chapter xii international bond markets
... When Eurocurrency markets started to emerge, a typical Eurodeposit involved a time deposit, that is, a non-negotiable, registered instrument with a fixed maturity. When investing in a Eurocurrency time deposit, the investor commits funds for a certain period of time, at a specified rate. At maturity ...
... When Eurocurrency markets started to emerge, a typical Eurodeposit involved a time deposit, that is, a non-negotiable, registered instrument with a fixed maturity. When investing in a Eurocurrency time deposit, the investor commits funds for a certain period of time, at a specified rate. At maturity ...
CHAPTER 12 Government Bonds
... therefore cannot trade among investors. For example, a U.S. Savings Bond is a nonmarketable security. If an investor wishes to sell a U.S. Savings Bond, it must be redeemed by the U.S. Treasury. This is normally a simple procedure, since most banks handle the purchase and sale of U.S. Savings Bonds ...
... therefore cannot trade among investors. For example, a U.S. Savings Bond is a nonmarketable security. If an investor wishes to sell a U.S. Savings Bond, it must be redeemed by the U.S. Treasury. This is normally a simple procedure, since most banks handle the purchase and sale of U.S. Savings Bonds ...
UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION II SEMESTER BA ECONOMICS
... inquiry, there must be regularities in production and exchange; and for the inquiry to be non-trivial, these regularities must go beyond what is obvious to the producers, consumers, and exchangers themselves. Only in the eighteenth century, most clearly illustrated by the work of Cantillon (1755), t ...
... inquiry, there must be regularities in production and exchange; and for the inquiry to be non-trivial, these regularities must go beyond what is obvious to the producers, consumers, and exchangers themselves. Only in the eighteenth century, most clearly illustrated by the work of Cantillon (1755), t ...
What Drives the German Current Account? And How Does it Affect
... underscores the importance of analyzing the current account using a structural model that captures the relevant shocks, and their transmission to the macroeconomy. This paper therefore studies the German current account using an estimated Dynamic Stochastic General Equilibrium (DSGE) model with thre ...
... underscores the importance of analyzing the current account using a structural model that captures the relevant shocks, and their transmission to the macroeconomy. This paper therefore studies the German current account using an estimated Dynamic Stochastic General Equilibrium (DSGE) model with thre ...
ABSTRACT Title of Document:
... rates. Our findings also support Tornell and Velasco’s core prediction that fixed regimes induce less discipline than flexible arrangements. Consistent with our model, we test the main theoretical implications considering only relatively “tranquil” times. For this reason, we exclude observations ass ...
... rates. Our findings also support Tornell and Velasco’s core prediction that fixed regimes induce less discipline than flexible arrangements. Consistent with our model, we test the main theoretical implications considering only relatively “tranquil” times. For this reason, we exclude observations ass ...
16: Asset Valuation: Derivative Investments
... Arbitrage is defined as the existence of riskless profit without investment and involves selling an asset and simultaneously buying the same asset for a lower price. Since the trades cancel each other, no investment is required. Because it is done simultaneously, a profit is guaranteed, making the ...
... Arbitrage is defined as the existence of riskless profit without investment and involves selling an asset and simultaneously buying the same asset for a lower price. Since the trades cancel each other, no investment is required. Because it is done simultaneously, a profit is guaranteed, making the ...
What drives the German current account?
... is thus crucial for positive and normative evaluations of the current account, and for policy advice (Obstfeld and Rogoff (1996), Obstfeld (2012), Kollmann (1998, 2001, 2004)). This underscores the importance of analyzing the current account using a structural model that captures the relevant shock ...
... is thus crucial for positive and normative evaluations of the current account, and for policy advice (Obstfeld and Rogoff (1996), Obstfeld (2012), Kollmann (1998, 2001, 2004)). This underscores the importance of analyzing the current account using a structural model that captures the relevant shock ...
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.