Time
... greater amplitude than production of nondurables. Production and prices of agricultural goods and natural resources have lower than average conformity. Business profits show high conformity and much greater amplitude than other series. Prices are generally procyclical. Short-term interest rates ...
... greater amplitude than production of nondurables. Production and prices of agricultural goods and natural resources have lower than average conformity. Business profits show high conformity and much greater amplitude than other series. Prices are generally procyclical. Short-term interest rates ...
Monetary Policy and Asset Prices: When Cleaning
... In this paper we link the debate on the optimal monetary reaction to asset price boom-and– bust cycles to the discussion about optimal monetary policy in the run-up to a potentially binding ZLB. Our key question can be formulated as follows: What does the ZLB imply for the choice of the optimal mone ...
... In this paper we link the debate on the optimal monetary reaction to asset price boom-and– bust cycles to the discussion about optimal monetary policy in the run-up to a potentially binding ZLB. Our key question can be formulated as follows: What does the ZLB imply for the choice of the optimal mone ...
Park Your Cash in a Safe Neighborhood
... "If we suspect that cash is going to be on the sidelines for some time, we might look at a capital preservation fund of some sort that might pay a 3% yield and be invested in very short-term government securities," McGervey says. Determining fixed expenses and considering post-retirement income sour ...
... "If we suspect that cash is going to be on the sidelines for some time, we might look at a capital preservation fund of some sort that might pay a 3% yield and be invested in very short-term government securities," McGervey says. Determining fixed expenses and considering post-retirement income sour ...
A Neo-Keynedan Vie~ of Monetary Policy
... For the purpose of isolating the effects of fiscal policy from those of monetary policy, I believe a "pure" fiscal policy action should be defined as a change in government expenditures or a change in tax rates without any accompanying change in the instruments of monetary policy. Under our present ...
... For the purpose of isolating the effects of fiscal policy from those of monetary policy, I believe a "pure" fiscal policy action should be defined as a change in government expenditures or a change in tax rates without any accompanying change in the instruments of monetary policy. Under our present ...
Inflation
... concepts of finance. Some of its manifestations include familiar concepts such as opportunity cost, capital cost, borrowing rate, lending rate and the rate of return on stocks or bonds11. It is greatly influenced in computing NPV. The selection of proper rate is critical which helps for making corre ...
... concepts of finance. Some of its manifestations include familiar concepts such as opportunity cost, capital cost, borrowing rate, lending rate and the rate of return on stocks or bonds11. It is greatly influenced in computing NPV. The selection of proper rate is critical which helps for making corre ...
NBER WORKING PAPER SERIES A MODEL OF SECULAR STAGNATION Gauti B. Eggertsson
... Keynes (1936) and Summers (2013). According to these authors, a decline in the relative price of investment may also put downward pressure on the natural rate of interest and thus serve as an additional trigger for secular stagnation - an insight that we verify in our model. We have already noted th ...
... Keynes (1936) and Summers (2013). According to these authors, a decline in the relative price of investment may also put downward pressure on the natural rate of interest and thus serve as an additional trigger for secular stagnation - an insight that we verify in our model. We have already noted th ...
Ch24
... Chapter 24 Money and Inflation 1. "There are frequently years when the inflation rate is high and yet money growth is quite low. Therefore, the statement that inflation is a monetary phenomenon cannot be correct." Comment. 2. Why do economists focus on historical episodes of hyperinflation to decide ...
... Chapter 24 Money and Inflation 1. "There are frequently years when the inflation rate is high and yet money growth is quite low. Therefore, the statement that inflation is a monetary phenomenon cannot be correct." Comment. 2. Why do economists focus on historical episodes of hyperinflation to decide ...
Inflation
... purchasing power of the cash balances held by the private sector—like a wealth tax. This tax is a drag on the economy—an "efficiency loss"— because it induces people and businesses to economize on cash balances, making it more difficult to participate in the money economy. Economic losses associated ...
... purchasing power of the cash balances held by the private sector—like a wealth tax. This tax is a drag on the economy—an "efficiency loss"— because it induces people and businesses to economize on cash balances, making it more difficult to participate in the money economy. Economic losses associated ...
35 - Cengage Learning
... Unemployment 2. . . . but in the long run, expected rate inflation falls, and the short-run Phillips curve shifts to the left. Copyright © 2011 Cengage Learning ...
... Unemployment 2. . . . but in the long run, expected rate inflation falls, and the short-run Phillips curve shifts to the left. Copyright © 2011 Cengage Learning ...
IEM Curriculum Guide - FedPolicy Market
... affects them indirectly, mainly by raising or lowering short-term interest rates. The Fed affects interest rates mainly through open market operations and the discount rate, and both of these methods work through the market for bank reserves, known as the federal funds market. The Federal Funds Mark ...
... affects them indirectly, mainly by raising or lowering short-term interest rates. The Fed affects interest rates mainly through open market operations and the discount rate, and both of these methods work through the market for bank reserves, known as the federal funds market. The Federal Funds Mark ...
Improving Profitability by Managing FX Risk
... Fluctuating exchange rates and a changing landscape of legislation create challenges to trading profitability when making and receiving international payments, and potentially create cash flow unpredictability Companies are increasingly looking for long term partners to support short and long te ...
... Fluctuating exchange rates and a changing landscape of legislation create challenges to trading profitability when making and receiving international payments, and potentially create cash flow unpredictability Companies are increasingly looking for long term partners to support short and long te ...
NBER WORKING PAPER SERIES THE EFFECT OF CONVENTIONAL AND UNCONVENTIONAL MONETARY
... is unlikely that the simultaneous occurrence of large changes in the Fed’s balance sheet with large changes in asset price movements was coincidental. I conclude that the core monetary model developed in this paper can explain both conventional and unconventional roles of monetary policy and is cons ...
... is unlikely that the simultaneous occurrence of large changes in the Fed’s balance sheet with large changes in asset price movements was coincidental. I conclude that the core monetary model developed in this paper can explain both conventional and unconventional roles of monetary policy and is cons ...
Presentation by the Bosnian Delegation (Republica Srpska)
... 1,5% accrual rate between 20 and 40 years Maximum 75% with 40 years of contribution ...
... 1,5% accrual rate between 20 and 40 years Maximum 75% with 40 years of contribution ...
NBER WORKING PAPER SERIES DEFICIT AND INTERGENERATIONAL WELFARE IN OPEN ECONOMIES Torsten Persson
... Deficits and Intergenerational Welfare in a Small Open Economy ...
... Deficits and Intergenerational Welfare in a Small Open Economy ...
Aggregate Demand and Aggregate Supply Analysis This lecture
... 5. Stagflation describes a situation where inflation is rising but aggregate output is falling. ...
... 5. Stagflation describes a situation where inflation is rising but aggregate output is falling. ...
T N M R
... It has sometimes been said that, in contrast with developed countries, Mexico is an emerging economy whose high degree of balance of payments openness makes the peso an ideal candidate for speculative attacks. This explanation cannot be totally dismissed, since a currency’s position is related to do ...
... It has sometimes been said that, in contrast with developed countries, Mexico is an emerging economy whose high degree of balance of payments openness makes the peso an ideal candidate for speculative attacks. This explanation cannot be totally dismissed, since a currency’s position is related to do ...
Solution - UW AFSA
... 5. In 2001, DAL Co. had a fixed asset turnover of 1.63 compared to ABC Co. of 1.10. What is the most likely cause of DAL Co.'s higher ratio? A) DAL Co. is less efficient in generating net sales from its operational assets. B) DAL Co. is more efficient at generating net income from employing its oper ...
... 5. In 2001, DAL Co. had a fixed asset turnover of 1.63 compared to ABC Co. of 1.10. What is the most likely cause of DAL Co.'s higher ratio? A) DAL Co. is less efficient in generating net sales from its operational assets. B) DAL Co. is more efficient at generating net income from employing its oper ...
Real interest rate
... in real terms. Real income is nominal income minus inflation. An inflation rate of 10%, for example, accompanied by no change in nominal incomes would mean the average household was 10% poorer at the end of the year than at the beginning. ·Loss of savings: Savers are negatively effected by inflation ...
... in real terms. Real income is nominal income minus inflation. An inflation rate of 10%, for example, accompanied by no change in nominal incomes would mean the average household was 10% poorer at the end of the year than at the beginning. ·Loss of savings: Savers are negatively effected by inflation ...
Real Theory of Interest
... Underlying the different points on the frontier are different levels of investment (figure 3). For example, a point down and right on the frontier has high current consumption and low future consumption. The high current consumption means that current investment must be low. As this investment is lo ...
... Underlying the different points on the frontier are different levels of investment (figure 3). For example, a point down and right on the frontier has high current consumption and low future consumption. The high current consumption means that current investment must be low. As this investment is lo ...
An introduction to pricing methods for credit derivatives
... A contract where A pays periodic premium payments until maturity or until the default of C; If C defaults, B pays A a default payment (for instance, default payment could mimic the loss that A suffers on a bond issue by C to A). The premium payments are quoted in annualized percentage x ∗ of the not ...
... A contract where A pays periodic premium payments until maturity or until the default of C; If C defaults, B pays A a default payment (for instance, default payment could mimic the loss that A suffers on a bond issue by C to A). The premium payments are quoted in annualized percentage x ∗ of the not ...
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.