A Panel Approach for Developing Countries
... undergo significant changes. New growth theory proposes output as a channel through which openness might control inflation via its presumed, yet realistic enough, positive effect on the former. Romer (1993) uses a Barro and Gordon type model to argue that since the unanticipated monetary expansion l ...
... undergo significant changes. New growth theory proposes output as a channel through which openness might control inflation via its presumed, yet realistic enough, positive effect on the former. Romer (1993) uses a Barro and Gordon type model to argue that since the unanticipated monetary expansion l ...
NBER WORKING PAPER SERIES THE BARNETT CRITIQUE AFTER THREE DECADES:
... Department of Economics 140 Commonwealth Ave. Chestnut Hill, MA 02467-3859 and NBER [email protected] ...
... Department of Economics 140 Commonwealth Ave. Chestnut Hill, MA 02467-3859 and NBER [email protected] ...
2 - Economics | Bilkent University
... To summarize, currency depreciation increases net exports and increases the cost of production. Similarly, currency appreciation decreases net exports and the cost of production. The combined effects of demand and supply channels determine the net results of exchange rate fluctuations on real outpu ...
... To summarize, currency depreciation increases net exports and increases the cost of production. Similarly, currency appreciation decreases net exports and the cost of production. The combined effects of demand and supply channels determine the net results of exchange rate fluctuations on real outpu ...
PDF - Lazard Asset Management
... inflation expectations, which have rebounded from the lows observed in February 2016. We believe that based on cyclical factors alone, inflation of 2.0%–2.5% is a probable scenario. However, in our bear case scenario in which there is a sustained backlash against globalization, populism could lead t ...
... inflation expectations, which have rebounded from the lows observed in February 2016. We believe that based on cyclical factors alone, inflation of 2.0%–2.5% is a probable scenario. However, in our bear case scenario in which there is a sustained backlash against globalization, populism could lead t ...
eee06-Nuti 3872134 en
... the rate on ten year government bonds, is everywhere below the 5.3% reference value with the exception of Hungary sufficiently close at 6.6%; moreover to a very great extent the interest rate is an administered price decided by the national Central Bank that could if it wished, at a pinch, eliminate ...
... the rate on ten year government bonds, is everywhere below the 5.3% reference value with the exception of Hungary sufficiently close at 6.6%; moreover to a very great extent the interest rate is an administered price decided by the national Central Bank that could if it wished, at a pinch, eliminate ...
NBER WORKING PAPER SERIES FEDERAL GOVERNMENT DEBTS AND INTEREST RATES Eric Engen
... ongoing for more than two decades, there still is little empirical consensus about the magnitude of the effect, and the difference in views held on this issue can be quite stark. While some economists believe there is a significant, large, positive effect of government debt on interest rates, others ...
... ongoing for more than two decades, there still is little empirical consensus about the magnitude of the effect, and the difference in views held on this issue can be quite stark. While some economists believe there is a significant, large, positive effect of government debt on interest rates, others ...
External Liberalization in Asia, Post-Socialist Europe, and Brazil Lance Taylor
... of inflows from abroad. They came in subject to the accounting restriction that an economy’s net foreign asset position (total holdings of external assets minus total external liabilities) can only change gradually over time through a deficit or surplus on the current account. Hence, when external l ...
... of inflows from abroad. They came in subject to the accounting restriction that an economy’s net foreign asset position (total holdings of external assets minus total external liabilities) can only change gradually over time through a deficit or surplus on the current account. Hence, when external l ...
Sticky Leverage Joao Gomes, Urban Jermann and Lukas Schmid February 23, 2016
... and as such alleviates the curse of dimensionality of fully nonlinear global methods.5 Other macro economic analyses with long-term debt and default include Gomes and Schmid (2013) and Miao and Wang (2010). In both cases the debt is real. In Gomes and Schmid (2013) firms pick their debt at the time ...
... and as such alleviates the curse of dimensionality of fully nonlinear global methods.5 Other macro economic analyses with long-term debt and default include Gomes and Schmid (2013) and Miao and Wang (2010). In both cases the debt is real. In Gomes and Schmid (2013) firms pick their debt at the time ...
Sticky Leverage Joao Gomes, Urban Jermann and Lukas Schmid October 14, 2014
... and as such alleviates the curse of dimensionality of fully nonlinear global methods.5 Other macro economic analyses with long-term debt and default include Gomes and Schmid (2013) and Miao and Wang (2010). In both cases the debt is real. In Gomes and Schmid (2013) firms pick their debt at the time ...
... and as such alleviates the curse of dimensionality of fully nonlinear global methods.5 Other macro economic analyses with long-term debt and default include Gomes and Schmid (2013) and Miao and Wang (2010). In both cases the debt is real. In Gomes and Schmid (2013) firms pick their debt at the time ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... it to appropriate the value of the bubble. Section 11.6 constructs an alternative equilibrium that again begins with the stock market creating a bubble that eliminates inefficient investments. The government initially refrains from running budget deficits, and this creates space for the bubble to grow ...
... it to appropriate the value of the bubble. Section 11.6 constructs an alternative equilibrium that again begins with the stock market creating a bubble that eliminates inefficient investments. The government initially refrains from running budget deficits, and this creates space for the bubble to grow ...
This PDF is a selection from a published volume
... some of our results. In this sense, we view our paper as the beginning of a research agenda, and not as the final word on policy coordination within a monetary union. We do not attempt a serious calibration to any particular country; instead, we calibrate a series of models that seem to capture impo ...
... some of our results. In this sense, we view our paper as the beginning of a research agenda, and not as the final word on policy coordination within a monetary union. We do not attempt a serious calibration to any particular country; instead, we calibrate a series of models that seem to capture impo ...
A factor portfolio
... For example, a security with a positive interest rate beta performs better when rates increase, and thus would hedge the value of a portfolio against interest rate risk. ...
... For example, a security with a positive interest rate beta performs better when rates increase, and thus would hedge the value of a portfolio against interest rate risk. ...
Topic VIII
... Fed announces Federal funds rate target Market moves to target without an actual open-market operation Interest rates in other markets move in same direction as the Federal funds rate: substitution and arbitrage ...
... Fed announces Federal funds rate target Market moves to target without an actual open-market operation Interest rates in other markets move in same direction as the Federal funds rate: substitution and arbitrage ...
Why foreign savings fail to cause growth - Bresser
... financed either by loans or by foreign direct investments, will not usually increase the rate of capital accumulation or will have little impact on it in so far as current account deficits will be associated with appreciated exchange rates, artificially increased real wages and salaries and high con ...
... financed either by loans or by foreign direct investments, will not usually increase the rate of capital accumulation or will have little impact on it in so far as current account deficits will be associated with appreciated exchange rates, artificially increased real wages and salaries and high con ...
The boom-bust cycle in Finland and Sweden 1984
... with the defense of the fixed exchange rate policy in pushing the two countries first into a phase of overheating with rising inflation and loss of competitiveness, and subsequently into a deep financial crisis with falling output and rising unemployment. The twin crisis, the domestic banking crisis ...
... with the defense of the fixed exchange rate policy in pushing the two countries first into a phase of overheating with rising inflation and loss of competitiveness, and subsequently into a deep financial crisis with falling output and rising unemployment. The twin crisis, the domestic banking crisis ...
Financial Spillovers Across Countries: The Case of Canada and the
... specific variables. Although the variables mentioned above represent the core variables included in the GVAR model, the variables in the country‐specific VARX* models differ somewhat across countries. In each country‐specific model, domestic real GDP, inflation, the short‐term intere ...
... specific variables. Although the variables mentioned above represent the core variables included in the GVAR model, the variables in the country‐specific VARX* models differ somewhat across countries. In each country‐specific model, domestic real GDP, inflation, the short‐term intere ...
3 Two Monetary Tools: Interest Rates and Haircuts
... securities can be lowered. This observation is relevant for the debate about whether central banks should extend their lending facilities to legacy securities or restrict attention to new issues. The Term AssetBacked Securities Loan Facility (TALF) program was initially focused on newly issued secur ...
... securities can be lowered. This observation is relevant for the debate about whether central banks should extend their lending facilities to legacy securities or restrict attention to new issues. The Term AssetBacked Securities Loan Facility (TALF) program was initially focused on newly issued secur ...
Institutional Failure, Monetary Scarcity, and the Depreciation of the
... The testimony of contemporaries,who often seem to have regarded the medium of exchange as outside the influence of, that is exogenous to, commerce, and available data on the real stock of paper currency indicate wide fluctuationsin long-runpaper real balances. Contemporaries often perceived a causal ...
... The testimony of contemporaries,who often seem to have regarded the medium of exchange as outside the influence of, that is exogenous to, commerce, and available data on the real stock of paper currency indicate wide fluctuationsin long-runpaper real balances. Contemporaries often perceived a causal ...
Fiscal policy - WorkBank247.com
... CHANGES IN MONETARY POLICY • In an open economy, the effects are larger. Why? • The initial effect of a contractionary monetary ...
... CHANGES IN MONETARY POLICY • In an open economy, the effects are larger. Why? • The initial effect of a contractionary monetary ...
ECONOMICS
... • Financial institutions – Financial markets – Financial intermediaries © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-prot ...
... • Financial institutions – Financial markets – Financial intermediaries © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-prot ...
The Effects of Macroeconomic Aggregates on Fertility Decisions
... business cycle. My main focus is on the effects of the national debt, government expenditures, budget deficits and taxes on fertility decisions. I consider annual data over the period 19802010 that include both macroeconomic variables and other variables that have been found, in the past, to be impo ...
... business cycle. My main focus is on the effects of the national debt, government expenditures, budget deficits and taxes on fertility decisions. I consider annual data over the period 19802010 that include both macroeconomic variables and other variables that have been found, in the past, to be impo ...
WHY FOREIGN SAVINGS FAIL TO CAUSE GROWTH Luiz Carlos Bresser-Pereira Paulo Gala
... are capital poor, current account deficits (foreign savings), financed either by loans or by foreign direct investments, will not usually increase the rate of capital accumulation or will have little impact on it in so far as current account deficits will be associated with appreciated exchange rate ...
... are capital poor, current account deficits (foreign savings), financed either by loans or by foreign direct investments, will not usually increase the rate of capital accumulation or will have little impact on it in so far as current account deficits will be associated with appreciated exchange rate ...
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.