Lec_notes_1021
... out against some of the household saving. But, taken together, households save more than they borrow. The SS curve reflects net supply of loanable funds coming from households made available for business investment o You also might wonder how this model deals with the fact that much of firms’ invest ...
... out against some of the household saving. But, taken together, households save more than they borrow. The SS curve reflects net supply of loanable funds coming from households made available for business investment o You also might wonder how this model deals with the fact that much of firms’ invest ...
the neoliberal (counter)revolution
... of capitalism as “neoliberalism”. Indeed, during the transition between the 1970s and 1980s, the functioning of capitalism was deeply transformed, both within countries of the center and in the periphery. The earlier capitalist configuration is often referred to as the “Keynesian compromise.” Withou ...
... of capitalism as “neoliberalism”. Indeed, during the transition between the 1970s and 1980s, the functioning of capitalism was deeply transformed, both within countries of the center and in the periphery. The earlier capitalist configuration is often referred to as the “Keynesian compromise.” Withou ...
overview of exchange rate arrangements and
... 2001 – which has even implied slight deflation in the Federation. In recent years, price level changes have also been on an overall converging tendency between the two Entities whose economic structures are quite different. This may be a sign of increasing domestic economic integration. The monetary ...
... 2001 – which has even implied slight deflation in the Federation. In recent years, price level changes have also been on an overall converging tendency between the two Entities whose economic structures are quite different. This may be a sign of increasing domestic economic integration. The monetary ...
PDF Document - Long Wave Group
... Prepared for LongWaveGroup.com • (778) 294-4288 by • (303) 440-0157 • chartguy.com Copyright © 2010 • All rights reserved ...
... Prepared for LongWaveGroup.com • (778) 294-4288 by • (303) 440-0157 • chartguy.com Copyright © 2010 • All rights reserved ...
Briefing Paper November 2010 - Weblog Sylvester Eijffinger
... last decade. Therefore, other authors set out to use different data and different estimation methods, to determine which coefficients the ECB uses. The discussion especially focused on the use of real-time data instead of ex-post data, started by Orphanides5 in 2001. He argued that estimates of a po ...
... last decade. Therefore, other authors set out to use different data and different estimation methods, to determine which coefficients the ECB uses. The discussion especially focused on the use of real-time data instead of ex-post data, started by Orphanides5 in 2001. He argued that estimates of a po ...
Chapter 31 MONETARY POLICY AND THE NATIONAL ECONOMY
... America’s Central Bank: The Federal Reserve System ● Central Bank Independence ♦ In some other countries, the central banks are less independent. ♦ Countries without independent central banks often have less stable economies. ...
... America’s Central Bank: The Federal Reserve System ● Central Bank Independence ♦ In some other countries, the central banks are less independent. ♦ Countries without independent central banks often have less stable economies. ...
The fall of the New Zealand dollar
... have indicated. Our interest rates were well above those in major capital markets, and this attracted foreign savings into New Zealand, thus pushing up the exchange rate. But in ...
... have indicated. Our interest rates were well above those in major capital markets, and this attracted foreign savings into New Zealand, thus pushing up the exchange rate. But in ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... be sure, more recent work on small open economy models (e.g., Ball 1999) shows that reacting to the exchange rate can improve economic performance, but the gains are small and do not hold up across all models. Nevertheless, as I describe in my following discussion of Mission Impossible III, there is ...
... be sure, more recent work on small open economy models (e.g., Ball 1999) shows that reacting to the exchange rate can improve economic performance, but the gains are small and do not hold up across all models. Nevertheless, as I describe in my following discussion of Mission Impossible III, there is ...
The Forecasting and Policy System: an introduction Executive summary
... clarity which it brings to the projection, by focusing on the “big picture”. Using indicator and satellite models to supplement the core model’s analysis means that the level of detail required for making projections can be satisfied without sacrificing the speed and efficiency of model simulations. ...
... clarity which it brings to the projection, by focusing on the “big picture”. Using indicator and satellite models to supplement the core model’s analysis means that the level of detail required for making projections can be satisfied without sacrificing the speed and efficiency of model simulations. ...
Lecture 10 - UCSB Economics
... 2. Opinions about the US economy have been quite changeable this Fall quarter. At the moment, the rate of growth of the economy is slowing, but growth is still positive. How would you satisfy yourself whether a recession might be coming or not? How would you assess whether the likelihood of a reces ...
... 2. Opinions about the US economy have been quite changeable this Fall quarter. At the moment, the rate of growth of the economy is slowing, but growth is still positive. How would you satisfy yourself whether a recession might be coming or not? How would you assess whether the likelihood of a reces ...
How Fast Has Real GDP per Person Grown?
... Summary: Key Points in the Article A depression is defined as a severe recession. But what constitutes severe? Since the Great Depression of the 1930s we have had short-lived and relatively shallow downturns in economic activity. But many forecasters and pundits are throwing the term 'depression' a ...
... Summary: Key Points in the Article A depression is defined as a severe recession. But what constitutes severe? Since the Great Depression of the 1930s we have had short-lived and relatively shallow downturns in economic activity. But many forecasters and pundits are throwing the term 'depression' a ...
5-Open Economy
... 3. dirty float with "sterilization". An expansionary monetary policy will raise the level of income to Y1; now, however, the deficit (ab) will be larger than the case of zero capital immobility (cb) because with lower interest rates there are also outflows of capital. ...
... 3. dirty float with "sterilization". An expansionary monetary policy will raise the level of income to Y1; now, however, the deficit (ab) will be larger than the case of zero capital immobility (cb) because with lower interest rates there are also outflows of capital. ...
NBER WORKING PAPER SERIES FISCAL PREREQUISITES FOR A VIABLE A NON-TECHNICAL
... impose any constraint on the growth rate of domestic credit, arising through the government's need to remain solvent. Obstfeld's proposition to the contrary is due to the omission of government bonds and borrowing. There is not yet any "deep structural" theory justifying the (exogenous) lower bounds ...
... impose any constraint on the growth rate of domestic credit, arising through the government's need to remain solvent. Obstfeld's proposition to the contrary is due to the omission of government bonds and borrowing. There is not yet any "deep structural" theory justifying the (exogenous) lower bounds ...
Seigniorage and the relationship between monetary and
... ▪ If money demand depends on expected inflation: lower money supply growth may even lead to higher inflation now JEM027 – Monetary Economics ...
... ▪ If money demand depends on expected inflation: lower money supply growth may even lead to higher inflation now JEM027 – Monetary Economics ...
Document
... The simple Keynesian model for a closed economy without its own currency: Assumption: The short-run supply curve is horizontal (= P is fixed), which implies that aggregate demand alone determines output. The model also assumes that the real interest rate is fixed; and that planned investment is an e ...
... The simple Keynesian model for a closed economy without its own currency: Assumption: The short-run supply curve is horizontal (= P is fixed), which implies that aggregate demand alone determines output. The model also assumes that the real interest rate is fixed; and that planned investment is an e ...
The Exchange Rate Mechanism and the Ruble Devaluation of 1998
... order to pay domestic debt, such as wages for government workers and to pay for other government projects including infrastructure construction and maintenance... For all the things that governments do.... The effect of this is to create excessive demand for the domestic currency. A demand that is ...
... order to pay domestic debt, such as wages for government workers and to pay for other government projects including infrastructure construction and maintenance... For all the things that governments do.... The effect of this is to create excessive demand for the domestic currency. A demand that is ...
AD and AS - uwcmaastricht-econ
... Expectations about future income and the economy. Expectations of increasing incomes in the future or optimistic expectations about the economy will increase spending by consumers because they know they will have more money. Interest rates. Some consumer spending is financed by borrowing and thus se ...
... Expectations about future income and the economy. Expectations of increasing incomes in the future or optimistic expectations about the economy will increase spending by consumers because they know they will have more money. Interest rates. Some consumer spending is financed by borrowing and thus se ...
Fiscal and Monetary Policies Interrelation and Inflation over the
... policies have been coordinated in the United States. Specifically, the question is which authority imposes discipline on whom and (ii) to test a price equation level, which takes into account, for a given monetary base, whether a lower/higher interest rate leads to a lower/higher price level over th ...
... policies have been coordinated in the United States. Specifically, the question is which authority imposes discipline on whom and (ii) to test a price equation level, which takes into account, for a given monetary base, whether a lower/higher interest rate leads to a lower/higher price level over th ...
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.