The quantity theory of money and Friedmanian monetary
... countries. For each they observe money growth and inflation in 1970, 1995, and 2005 and average these values. Using only 3 out of 35 data points throws away most of the information in the data. Moreover, their sample is rather small. By comparison, we use data on 148 countries from 1961 to 2005, wit ...
... countries. For each they observe money growth and inflation in 1970, 1995, and 2005 and average these values. Using only 3 out of 35 data points throws away most of the information in the data. Moreover, their sample is rather small. By comparison, we use data on 148 countries from 1961 to 2005, wit ...
file
... Competing arguments: Low income households are • less mobile (relative income position and regional location) -> „trading up the ladder“ is less likely • Wages are less variable than other components of income therefore total income might be less variable (as long as employed) ...
... Competing arguments: Low income households are • less mobile (relative income position and regional location) -> „trading up the ladder“ is less likely • Wages are less variable than other components of income therefore total income might be less variable (as long as employed) ...
Collateralized Mortgage Obligations
... people to refinance their home loans. They also spread the risk of default among a number of investors. The mortgage pools that underlie CMOs are divided into categories called tranches based on the repayment schedules of the mortgages. Bonds are then issued on each of the tranches, each with a diff ...
... people to refinance their home loans. They also spread the risk of default among a number of investors. The mortgage pools that underlie CMOs are divided into categories called tranches based on the repayment schedules of the mortgages. Bonds are then issued on each of the tranches, each with a diff ...
Press Release
... increased by 5.6 percent—after declines of 10 percent and 5 percent, respectively, in the previous two quarters—bringing the figure back to the level it was at in the first quarter of 2011. In contrast to National Accounts data, the Climate Indices which are derived from the Business Tendency Surve ...
... increased by 5.6 percent—after declines of 10 percent and 5 percent, respectively, in the previous two quarters—bringing the figure back to the level it was at in the first quarter of 2011. In contrast to National Accounts data, the Climate Indices which are derived from the Business Tendency Surve ...
the July Review - Blue Water Capital Advisors
... This report is provided for informational purposes only and does not constitute an offer or solicitation to purchase or sell any security or commodity and is not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, co ...
... This report is provided for informational purposes only and does not constitute an offer or solicitation to purchase or sell any security or commodity and is not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, co ...
Interactive Tool
... are holding in reserves by buying or selling existing U.S. Treasury bonds. When the Federal Reserve buys a bond, the seller deposits the Federal Reserves' check in her bank account. As a bank’s reserves increase, it has an increased ability to make more loans, which in turn will increase the amount ...
... are holding in reserves by buying or selling existing U.S. Treasury bonds. When the Federal Reserve buys a bond, the seller deposits the Federal Reserves' check in her bank account. As a bank’s reserves increase, it has an increased ability to make more loans, which in turn will increase the amount ...
Solutions to Problems
... 3a. Yes, Longland experiences diminishing returns. Diminishing returns are present if the marginal product of capital diminishes as capital increases, holding technology constant (see table 1). The increase in real GDP per hour of work that occurred in the question resulted from an increase in capit ...
... 3a. Yes, Longland experiences diminishing returns. Diminishing returns are present if the marginal product of capital diminishes as capital increases, holding technology constant (see table 1). The increase in real GDP per hour of work that occurred in the question resulted from an increase in capit ...
PDF
... Economic development, as distinct from mere economic growth, must combine five elements: (1) self-sustaining growth; (2) structural change in patterns of production; (3) technological upgrading; (4) social, political and institutional modernization; and (5) widespread improvement in the human condit ...
... Economic development, as distinct from mere economic growth, must combine five elements: (1) self-sustaining growth; (2) structural change in patterns of production; (3) technological upgrading; (4) social, political and institutional modernization; and (5) widespread improvement in the human condit ...
Downlaod File
... through its operations. The retained earnings are assumed to be the equity of the shareholders that have been reinvested in the company rather than paid out through dividends. The sources of capital to pay for short-term assets: (1) spontaneous are liabilities that result from the purchasing of good ...
... through its operations. The retained earnings are assumed to be the equity of the shareholders that have been reinvested in the company rather than paid out through dividends. The sources of capital to pay for short-term assets: (1) spontaneous are liabilities that result from the purchasing of good ...
Chapter 11 PPP
... If investors’ money is tied up for longer periods of time, they have less liquidity and demand higher interest rates to compensate for real or perceived risks ...
... If investors’ money is tied up for longer periods of time, they have less liquidity and demand higher interest rates to compensate for real or perceived risks ...
NBER WORKING PAPER SERIES LOST DECADE IN TRANSLATION:
... Nikkei also bottomed out roughly two years after the GDP peak before staging a comeback, yet to this day it stands at a fraction of the level reached at the end of 1999. In addition to the stock market bubble, Japan experienced a property market bubble in the late 1980s, which continues to affect ba ...
... Nikkei also bottomed out roughly two years after the GDP peak before staging a comeback, yet to this day it stands at a fraction of the level reached at the end of 1999. In addition to the stock market bubble, Japan experienced a property market bubble in the late 1980s, which continues to affect ba ...
The Return of Saving Martin Feldstein
... investors diversified their investments by moving into the U.S. market because they thought the potential equity returns in the United States were favorable in comparison to the risks. Now, in contrast, the flow of equity investment to the United States is very small—often less than the equity investm ...
... investors diversified their investments by moving into the U.S. market because they thought the potential equity returns in the United States were favorable in comparison to the risks. Now, in contrast, the flow of equity investment to the United States is very small—often less than the equity investm ...
Monetary policy operating procedures in Saudi Arabia
... prescribed cash reserves. This is a regulation of principle, designed both as a monetary policy measure and to ensure that the banks have adequate liquidity to cover their customers’ deposits. This is the most powerful instrument of liquidity policy available to SAMA. However, it has been applied on ...
... prescribed cash reserves. This is a regulation of principle, designed both as a monetary policy measure and to ensure that the banks have adequate liquidity to cover their customers’ deposits. This is the most powerful instrument of liquidity policy available to SAMA. However, it has been applied on ...
AP Macroeconomics Unit III Fall 2011
... price of a fixed basket of goods and services to the price of the basket in the base year (only occasionally does the BLS change the basket)... • …whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year. ...
... price of a fixed basket of goods and services to the price of the basket in the base year (only occasionally does the BLS change the basket)... • …whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year. ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... their model, describe their results, and then ask whether the results are right and what policy conclusions should we draw from them. The Model The chapter develops a small open economy dynamic stochastic general equilibrium (DSGE) model along the lines of Gertler, Gilchrist, and Natalucci (2007) to ...
... their model, describe their results, and then ask whether the results are right and what policy conclusions should we draw from them. The Model The chapter develops a small open economy dynamic stochastic general equilibrium (DSGE) model along the lines of Gertler, Gilchrist, and Natalucci (2007) to ...
THE THEORY OF THE GLOBAL “SAVINGS GLUT”
... and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of the three variables anywhere to change at all. It follows that if we notice an expansi ...
... and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of the three variables anywhere to change at all. It follows that if we notice an expansi ...
APS6
... b) An implicit understanding exists between firms and workers that firms will not do anything to harm workers relative to other workers in the same industry. c) Because the economy changes all the time, firms have only imperfect information and may set wage rates too high or too low. d) Firms may se ...
... b) An implicit understanding exists between firms and workers that firms will not do anything to harm workers relative to other workers in the same industry. c) Because the economy changes all the time, firms have only imperfect information and may set wage rates too high or too low. d) Firms may se ...
CIO Investment spotlight
... financial conditions. Efforts by the Fed so far in raising rates have (if anything) seen financial conditions ease. These moves have encouraged the market to believe the business cycle can be extended, supporting both share and debt markets. For the moment, the Fed feels it can take its time due to ...
... financial conditions. Efforts by the Fed so far in raising rates have (if anything) seen financial conditions ease. These moves have encouraged the market to believe the business cycle can be extended, supporting both share and debt markets. For the moment, the Fed feels it can take its time due to ...
AP Exam Review wk 6
... • Despite our steady debt-GDP ratio, some experts on long-run budget issues view the situation in the U.S. with alarm due to implicit liabilities. – Spending promises made by governments that represent a future debt but are not included in the usual debt statistics (i.e. transfer payments). – Social ...
... • Despite our steady debt-GDP ratio, some experts on long-run budget issues view the situation in the U.S. with alarm due to implicit liabilities. – Spending promises made by governments that represent a future debt but are not included in the usual debt statistics (i.e. transfer payments). – Social ...
Money, inflation and interest rates
... market operations are what the FED does to implement its policy of targeting of the Federal Funds Rate. The Federal Funds rate is the rate at which banks lend to each other balances they held at the Federal Reserve overnight. Banks need to satisfy their reserve requirement and, as we discussed, they ...
... market operations are what the FED does to implement its policy of targeting of the Federal Funds Rate. The Federal Funds rate is the rate at which banks lend to each other balances they held at the Federal Reserve overnight. Banks need to satisfy their reserve requirement and, as we discussed, they ...
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.