What causes housing bubbles? A theoretical and - LaI FU
... bubbles, but the blame is not on the national central bank. According to Bernanke (2010, 2005), high saving rates in emerging markets have led to a global excess of savings which has poured into the United States in the form of capital imports and depressed the level of (long-term) interest rates, w ...
... bubbles, but the blame is not on the national central bank. According to Bernanke (2010, 2005), high saving rates in emerging markets have led to a global excess of savings which has poured into the United States in the form of capital imports and depressed the level of (long-term) interest rates, w ...
MacroPolicy - Purdue Agriculture
... These ideas were put together first by an 18th century professor from Glasgow, Scotland, named Adam Smith. Smith became famous throughout Europe by teaching moral philosophy at the university there. (He was also famous as an absent-minded professor. He once brewed a beverage of bread and butter, and ...
... These ideas were put together first by an 18th century professor from Glasgow, Scotland, named Adam Smith. Smith became famous throughout Europe by teaching moral philosophy at the university there. (He was also famous as an absent-minded professor. He once brewed a beverage of bread and butter, and ...
NBER WORKING PAPER SERIES MACROECONOMIC POLICIES IN THE OECD Warwick McKibbin
... Washington D.C. The second author would like to thank the Reserve Bank of Australia for financial support. We would also like to thank DRI for use of computing facilities. The research reported here is part of the N3ERs research program in International Studies and project in Productivity (World Eco ...
... Washington D.C. The second author would like to thank the Reserve Bank of Australia for financial support. We would also like to thank DRI for use of computing facilities. The research reported here is part of the N3ERs research program in International Studies and project in Productivity (World Eco ...
Bond Positions, Expectations, And The Yield Curve∗
... the yield curve. Subjective premia of long bond are thus not only less volatile, but also much less cyclical. The lesson we draw for the structural modelling of long bonds is that the puzzle is less that premia are cyclical, but rather that they were much higher in the early 1980s than at other tim ...
... the yield curve. Subjective premia of long bond are thus not only less volatile, but also much less cyclical. The lesson we draw for the structural modelling of long bonds is that the puzzle is less that premia are cyclical, but rather that they were much higher in the early 1980s than at other tim ...
Working Paper 189 - An Empirical Investigation of the Taylor Curve
... crisis and the ongoing euro area sovereign debt crisis, expectations about the role that monetary should play in trying to stimulate growth have been raised. At the same time, the domestic economy has been subject to a number of severe supply-side shocks and the output gap remains negative and wide. ...
... crisis and the ongoing euro area sovereign debt crisis, expectations about the role that monetary should play in trying to stimulate growth have been raised. At the same time, the domestic economy has been subject to a number of severe supply-side shocks and the output gap remains negative and wide. ...
midterm exam 1 - University of Guelph
... c. Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. d. Both countries will have higher levels of real GDP per person, and the temporary increase in growth i ...
... c. Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. d. Both countries will have higher levels of real GDP per person, and the temporary increase in growth i ...
The Woodlands office market sees uptick in leasing activity and
... The Woodlands office market not isolated from Houston’s current market conditions Lisa Bridges Director of Market Research | Houston The Woodlands’ office market continues to feel the effects of Houston’s office market woes. The Woodlands is not isolated from Houston’s current market conditions, but ...
... The Woodlands office market not isolated from Houston’s current market conditions Lisa Bridges Director of Market Research | Houston The Woodlands’ office market continues to feel the effects of Houston’s office market woes. The Woodlands is not isolated from Houston’s current market conditions, but ...
Credit spreads - Bank of England
... have tended to be riskier than loans to large firms, meaning that interest rates have typically been higher in order to compensate banks for bearing additional risk. Calculating credit spreads for companies requires more judgement than for households because data on the cost of new bank loans to com ...
... have tended to be riskier than loans to large firms, meaning that interest rates have typically been higher in order to compensate banks for bearing additional risk. Calculating credit spreads for companies requires more judgement than for households because data on the cost of new bank loans to com ...
Chapter 1: Introduction
... This chapter has two major goals: to complete the construction of the sticky-price model begun in chapter 9, and to link up the sticky-price model analysis begun in chapter 9 with the flexible-price model analysis of chapters 6 through 8. The key tool in both of these is the Phillips curve: the rela ...
... This chapter has two major goals: to complete the construction of the sticky-price model begun in chapter 9, and to link up the sticky-price model analysis begun in chapter 9 with the flexible-price model analysis of chapters 6 through 8. The key tool in both of these is the Phillips curve: the rela ...
Inflation differentials in the euro area during the last decade
... ten-year Bund rates) and its long-term trend (extracted using the Hodrick-Prescott filter with data since 1993) and adminpriceit is the administered price inflation rate from Eurostat. All variables are included in deviations from euro area averages. αi captures fixed country effects and εit is an e ...
... ten-year Bund rates) and its long-term trend (extracted using the Hodrick-Prescott filter with data since 1993) and adminpriceit is the administered price inflation rate from Eurostat. All variables are included in deviations from euro area averages. αi captures fixed country effects and εit is an e ...
Inflation: Causes and Consequences
... Inflation arises whenever the growth rate of nominal aggregate demand exceeds the growth rate of aggregate supply over sustained periods of time. One-time changes in government spending or taxes cannot by themselves produce inflation, as just defined. This is because such inflation would have to res ...
... Inflation arises whenever the growth rate of nominal aggregate demand exceeds the growth rate of aggregate supply over sustained periods of time. One-time changes in government spending or taxes cannot by themselves produce inflation, as just defined. This is because such inflation would have to res ...
Offering Circular - Church Extension Fund
... “audited financial statements” means financial statements that have been audited and reported upon by an independent public accounting firm in accordance with auditing standards generally accepted in the United States. ...
... “audited financial statements” means financial statements that have been audited and reported upon by an independent public accounting firm in accordance with auditing standards generally accepted in the United States. ...
The US Model Workbook
... explained output and inflation in the 1970s. Given the actual values of the exogenous variables over this period, the model can be solved for the endogenous variables. The solution values of the endogenous variables are the predicted values. If the predicted values of output and inflation are close ...
... explained output and inflation in the 1970s. Given the actual values of the exogenous variables over this period, the model can be solved for the endogenous variables. The solution values of the endogenous variables are the predicted values. If the predicted values of output and inflation are close ...
Inflation - American University
... Quantity theory is best viewed as a theory of the long run. The best short-run application of quantity theory is to high inflation economies, where M is changing much more than real variables such as Y . We also expect this theory to be useful in low inflation economies if we are looking at them ove ...
... Quantity theory is best viewed as a theory of the long run. The best short-run application of quantity theory is to high inflation economies, where M is changing much more than real variables such as Y . We also expect this theory to be useful in low inflation economies if we are looking at them ove ...
inflation report - Bank of Mauritius
... million in 2008. Moreover, leading indicators suggest the downturn would likely be prolonged despite massive monetary and fiscal policy boosts by the US Federal Reserve and the US government. In January 2009, the IMF projected a contraction of 1.6 per cent of the US economy in 2009. ...
... million in 2008. Moreover, leading indicators suggest the downturn would likely be prolonged despite massive monetary and fiscal policy boosts by the US Federal Reserve and the US government. In January 2009, the IMF projected a contraction of 1.6 per cent of the US economy in 2009. ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... accommodate those expectations to meet other objectives, for example, to avoid a costly recession. A key element in the story is the presence of multiple expectational equilibria. While under commitment a unique equilibrium with low inflation obtains, episodes of high and low inflation can arise in ...
... accommodate those expectations to meet other objectives, for example, to avoid a costly recession. A key element in the story is the presence of multiple expectational equilibria. While under commitment a unique equilibrium with low inflation obtains, episodes of high and low inflation can arise in ...
M.A. FINAL ECONOMICS
... This means that the expenditure of buyers (households) becomes income for sellers (firms). The firms then spend this income on factors of production such as labour, capital and raw materials, "transferring" their income to the factor owners. The factor owners spend this income on goods which leads t ...
... This means that the expenditure of buyers (households) becomes income for sellers (firms). The firms then spend this income on factors of production such as labour, capital and raw materials, "transferring" their income to the factor owners. The factor owners spend this income on goods which leads t ...
Lessons from a Century of Fed Policy
... level of interest rates for the whole economy. Assets are acquired only as a means of injecting bank reserves and currency into the economy. Hence, monetary policy can be implemented by confining asset purchases to Treasury securities. And “Treasuries only” insulates the independent central bank som ...
... level of interest rates for the whole economy. Assets are acquired only as a means of injecting bank reserves and currency into the economy. Hence, monetary policy can be implemented by confining asset purchases to Treasury securities. And “Treasuries only” insulates the independent central bank som ...
FY 2016 Results - Direct Line Group
... As a result of the recent reduction in the Ogden discount rate, operating profit from Ongoing operations for 2016 has reduced by £175.1 million; the combined operating ratio (“COR”) from Ongoing operations has increased by 5.9 percentage points, mostly relating to 2015 and prior years business, with ...
... As a result of the recent reduction in the Ogden discount rate, operating profit from Ongoing operations for 2016 has reduced by £175.1 million; the combined operating ratio (“COR”) from Ongoing operations has increased by 5.9 percentage points, mostly relating to 2015 and prior years business, with ...
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.