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Three essays about monetary policy in China - ROS Home
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 ...
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... 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
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... 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 ...
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... 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 prots from Northern innova ...
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... 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 ...
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... 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 ...
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... 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 ...
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... 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 ...
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... 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. ...


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... 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 ...
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... 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 ...
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... 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:
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... 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 ...
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... 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?
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 ...
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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.
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