Government Spending Effects in Low-income Countries
... transmission mechanism of public spending increases. While higher externally-financed spending may be associated with more real exchange rate appreciation and more pronounced declines of the traded good sector (Rajan and Subramanian (2011)), a low degree of home bias can help counteract these apprec ...
... transmission mechanism of public spending increases. While higher externally-financed spending may be associated with more real exchange rate appreciation and more pronounced declines of the traded good sector (Rajan and Subramanian (2011)), a low degree of home bias can help counteract these apprec ...
140225_Presentation_Intro_Update
... Sit alongside: Other vehicles accessing the same underlying asset ...
... Sit alongside: Other vehicles accessing the same underlying asset ...
10.00 points - HCC Learning Web
... If the price level is 100 for 2005 and the price level is 106.5 in 2007, a nominal GDP in 2007 of $15,600 billion would mean that real GDP in 2007 (in 2005 prices) would be closest to ...
... If the price level is 100 for 2005 and the price level is 106.5 in 2007, a nominal GDP in 2007 of $15,600 billion would mean that real GDP in 2007 (in 2005 prices) would be closest to ...
Monetary Institutions, Partisanship, and Inflation Targeting Bumba
... target serve as a visible signal of the central bank’s monetary policy goals. The public at large is acutely aware of changes in the price level; individual consumers may not have the capacity to ascertain day-to-day changes in the price indexes used by central banks, but they certainly do feel the ...
... target serve as a visible signal of the central bank’s monetary policy goals. The public at large is acutely aware of changes in the price level; individual consumers may not have the capacity to ascertain day-to-day changes in the price indexes used by central banks, but they certainly do feel the ...
1 - Hans-Böckler
... room for an output response to policy induced changes in AD. Moreover, the issue is relevant for fiscal policy analysis over all time horizons – short, medium, or long. Classical macroeconomics describes the economy as being at full employment and without excess capacity. Output (Y) is equal to pot ...
... room for an output response to policy induced changes in AD. Moreover, the issue is relevant for fiscal policy analysis over all time horizons – short, medium, or long. Classical macroeconomics describes the economy as being at full employment and without excess capacity. Output (Y) is equal to pot ...
Chapter 12 Aggregate Supply, Aggregate Demand
... we explained economic theories concerning fiscal and monetary policy. So far our models have all been "demand side," illustrated by shifts of the Aggregate Demand curve. In this chapter, we complete the demand side story so that it includes explicit attention to the upturn side of the story and the ...
... we explained economic theories concerning fiscal and monetary policy. So far our models have all been "demand side," illustrated by shifts of the Aggregate Demand curve. In this chapter, we complete the demand side story so that it includes explicit attention to the upturn side of the story and the ...
Evaluating Interest Rate Covariance Models Within a Value-at
... produce useful out-of-sample forecasts is a clear test of model performance because it only uses the same information set available to agents at each point in time.3 Previous studies across several financial markets have compared the out-of-sample forecasting ability of several generalized autoregre ...
... produce useful out-of-sample forecasts is a clear test of model performance because it only uses the same information set available to agents at each point in time.3 Previous studies across several financial markets have compared the out-of-sample forecasting ability of several generalized autoregre ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 19
... Answer: For a given level of national saving, an increased current account surplus implies lower investment in domestic plant and equipment. A few reasons why: first, the returns to domestic savings may be easier to tax than those on assets abroad; second, an addition to the home capital stock may r ...
... Answer: For a given level of national saving, an increased current account surplus implies lower investment in domestic plant and equipment. A few reasons why: first, the returns to domestic savings may be easier to tax than those on assets abroad; second, an addition to the home capital stock may r ...
ISS research paper template
... paid to the domestic debts and its potential risks on the economy. This has led to substitution of external debts for domestic debts in some countries. The question of domestic debts is therefore pertinent to the economies of developing countries given the increased scope for expanding domestic deb ...
... paid to the domestic debts and its potential risks on the economy. This has led to substitution of external debts for domestic debts in some countries. The question of domestic debts is therefore pertinent to the economies of developing countries given the increased scope for expanding domestic deb ...
Alternatives jor Debt Management
... with long rates generally above short rates. The rate structure, however, is almost invariant with respect to changes in the composition of government debt. A number of studies of the effect of the composition of government debt on the term structure of interest rates point to these conclusions and ...
... with long rates generally above short rates. The rate structure, however, is almost invariant with respect to changes in the composition of government debt. A number of studies of the effect of the composition of government debt on the term structure of interest rates point to these conclusions and ...
Macro Sample Questions All Chapters McConnell 20 edition TO
... A and D only. B. B and C only. C. A , D, and E. D. A , D, and B. 76 Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equi ...
... A and D only. B. B and C only. C. A , D, and E. D. A , D, and B. 76 Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equi ...
Exchange Rates - Carleton University
... predetermined indicators or events that deem adjustment necessary 12 . The main objective is to allow adjustments in accordance with the parity in a less abrupt fashion than an adjustable peg. For example, under an adjustable peg, when authorities deem a change necessary the change can be very abrup ...
... predetermined indicators or events that deem adjustment necessary 12 . The main objective is to allow adjustments in accordance with the parity in a less abrupt fashion than an adjustable peg. For example, under an adjustable peg, when authorities deem a change necessary the change can be very abrup ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... better still if it “cheats” on the agreement. That is, it will be able to do better in the short-run, assuming that the other countries leave their policies as agreed; in future periods, the other countries will presumably retaliate by also abandoning the agreement. But economists have probably over ...
... better still if it “cheats” on the agreement. That is, it will be able to do better in the short-run, assuming that the other countries leave their policies as agreed; in future periods, the other countries will presumably retaliate by also abandoning the agreement. But economists have probably over ...
BIS 76th Annual Report - June 2006
... Flattening yield curves in the United States and the euro area . . . . . . . . . . Subdued inflation expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Low volatilities and term premia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Institution ...
... Flattening yield curves in the United States and the euro area . . . . . . . . . . Subdued inflation expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Low volatilities and term premia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Institution ...
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.