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 ...
The CPI and the Cost of Living C H A P T E R C H E C K L I S T
... The PCE deflator is an average of current prices of all the goods and services included in the consumption expenditure component of GDP expressed as a percentage of base-year prices. The PCE deflator has the same advantages as GDP deflator—it uses current information on quantities and to some degree ...
... The PCE deflator is an average of current prices of all the goods and services included in the consumption expenditure component of GDP expressed as a percentage of base-year prices. The PCE deflator has the same advantages as GDP deflator—it uses current information on quantities and to some degree ...
15.2 THE CPI AND OTHER PRICE LEVEL MEASURES The
... The PCE deflator is an average of current prices of all the goods and services included in the consumption expenditure component of GDP expressed as a percentage of base-year prices. The PCE deflator has the same advantages as GDP deflator—it uses current information on quantities and to some degree ...
... The PCE deflator is an average of current prices of all the goods and services included in the consumption expenditure component of GDP expressed as a percentage of base-year prices. The PCE deflator has the same advantages as GDP deflator—it uses current information on quantities and to some degree ...
The 3-Equation New Keynesian Model — a Graphical
... As Romer argues, monetary policy is now usually thought about in terms of a reaction function that the central bank uses to respond to shocks to the economy and steer it toward an explicit or implicit inflation target. The first task of the reaction function is to provide a nominal anchor for the me ...
... As Romer argues, monetary policy is now usually thought about in terms of a reaction function that the central bank uses to respond to shocks to the economy and steer it toward an explicit or implicit inflation target. The first task of the reaction function is to provide a nominal anchor for the me ...
Vo l u m e 6 5 ... C o n t e n t s
... – such as a fundamental misunderstanding of the workings of the economy – that would systematically af fect future monetary policy outcomes unless corrected. In this article we focus particularly on our CPI inflation forecasting performance, but also examine our forecasts of other key macroeconomic ...
... – such as a fundamental misunderstanding of the workings of the economy – that would systematically af fect future monetary policy outcomes unless corrected. In this article we focus particularly on our CPI inflation forecasting performance, but also examine our forecasts of other key macroeconomic ...
Determinants of Microfinance Loan Performance and Fluctuation Over the Business Cycle
... pressure on NPL. Deflation can make repayment harder as well by increasing the real cost of repayment. Furthermore, high inflation or hyperinflation is often occurs during periods of instability and may be associated with a high level of non-performing loans. Empirically, Klein (2013) does find a si ...
... pressure on NPL. Deflation can make repayment harder as well by increasing the real cost of repayment. Furthermore, high inflation or hyperinflation is often occurs during periods of instability and may be associated with a high level of non-performing loans. Empirically, Klein (2013) does find a si ...
The Transmission of Monetary Policy Operations through
... from or control for the distributional e§ects they cause–and there is no accompanying fiscal policy that undoes them. Hence, to understand the e§ects of those interventions on activity, researchers need to take into account the potential impact of the redistribution caused by the policy interventio ...
... from or control for the distributional e§ects they cause–and there is no accompanying fiscal policy that undoes them. Hence, to understand the e§ects of those interventions on activity, researchers need to take into account the potential impact of the redistribution caused by the policy interventio ...
Munir
... As shown in Table-1, the correlation between the exchange rate and price level is -0.80; between exchange rate and output, it is -0.75. These negative and statistically significant coefficients indicate that devaluations have an expansionary effect on the Pakistan economy as predicted by the convent ...
... As shown in Table-1, the correlation between the exchange rate and price level is -0.80; between exchange rate and output, it is -0.75. These negative and statistically significant coefficients indicate that devaluations have an expansionary effect on the Pakistan economy as predicted by the convent ...
McCallum rule and Chinese monetary policy
... Compared to advanced economies, various studies note the role of interest rates in the Chinese economy to being minor (see e.g. Laurens and Maino, 2007; Mehrotra, 2007; Koivu, 2008). Even if authorities define a number of interest rates (the central bank lending rate, rediscount rate and benchmark ...
... Compared to advanced economies, various studies note the role of interest rates in the Chinese economy to being minor (see e.g. Laurens and Maino, 2007; Mehrotra, 2007; Koivu, 2008). Even if authorities define a number of interest rates (the central bank lending rate, rediscount rate and benchmark ...
Unemployment and Inflation, Part 3 Agenda Inflation and the triangle
... ¾ In Year 2, inflation will begin to fall. • In Year 2, the SRAS curve shifts down because of the insufficient aggregate demand in Year 1, i.e., Y1 < Y*. – As the SRAS curve shifts down, inflation falls. ...
... ¾ In Year 2, inflation will begin to fall. • In Year 2, the SRAS curve shifts down because of the insufficient aggregate demand in Year 1, i.e., Y1 < Y*. – As the SRAS curve shifts down, inflation falls. ...
Chapter 16 Output and the Exchange Rate in the Short Run
... Introduction Macroeconomic changes that affect exchange rates, interest rates, and price levels may also affect output. ...
... Introduction Macroeconomic changes that affect exchange rates, interest rates, and price levels may also affect output. ...
Inflation, Deflation and All That
... to a cyclical period of demand weakness in an otherwise healthy economy is not obviously cause for much more concern than crossing the 2 per cent line would be in the other imaginary economy here. At least, that is so provided that the drop is temporary, and that expectations about future price chan ...
... to a cyclical period of demand weakness in an otherwise healthy economy is not obviously cause for much more concern than crossing the 2 per cent line would be in the other imaginary economy here. At least, that is so provided that the drop is temporary, and that expectations about future price chan ...
Chapter 12: The Cost of Capital
... Marginal Cost of Capital • Gallagher’s weighted average cost will change if one component cost of capital changes. • This may occur when a firm raises a particularly large amount of capital such that investors think that the firm is riskier. • The WACC of the next dollar of capital raised in called ...
... Marginal Cost of Capital • Gallagher’s weighted average cost will change if one component cost of capital changes. • This may occur when a firm raises a particularly large amount of capital such that investors think that the firm is riskier. • The WACC of the next dollar of capital raised in called ...
macroeconomics-7th-edition-abel-test-bank
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
Economics II - RCCM Indore
... 3. There is perfect competition in labor market and product market. 4. Labor is homogenous. 5. Total out put of the economy is divided between consumption and investment expenditure. 6. The quantity of money is given. 7. Wages and prices are flexible. 8. Money wages and real wages are directly relat ...
... 3. There is perfect competition in labor market and product market. 4. Labor is homogenous. 5. Total out put of the economy is divided between consumption and investment expenditure. 6. The quantity of money is given. 7. Wages and prices are flexible. 8. Money wages and real wages are directly relat ...
Macroeconomic Measurements, Part I: Prices and Unemployment
... Smithies will do at work? This section shows how to compute the CPI: define the market basket of goods, collect prices in the base year and current year, and carry out some simple arithmetic operations. Does it matter whether prices rise or fall? As you will find out in later chapters, it does. For ...
... Smithies will do at work? This section shows how to compute the CPI: define the market basket of goods, collect prices in the base year and current year, and carry out some simple arithmetic operations. Does it matter whether prices rise or fall? As you will find out in later chapters, it does. For ...
Egypt - COMESA Monetary Institute
... Germany, France, and Italy. The authors have supported Perotti’s (2002) evidence about the weak impact of fiscal policy shocks on the economy. Additionally, Fernández and De Cos (2006) have used data for Spain. They have found a positive impact of an expenditure shock on output and the three-year in ...
... Germany, France, and Italy. The authors have supported Perotti’s (2002) evidence about the weak impact of fiscal policy shocks on the economy. Additionally, Fernández and De Cos (2006) have used data for Spain. They have found a positive impact of an expenditure shock on output and the three-year in ...
Collateral and Credit Issues in Derivatives Pricing
... The main focus of this paper is to show how the arguments used to calculate the no-default value of a derivative can be extended to incorporate changing contractual arrangements. Previous research in this area includes Piterbarg (2010, 2012), Kjaer (2011), Burgard and Kjaer (2011a, 2011b, 2012), an ...
... The main focus of this paper is to show how the arguments used to calculate the no-default value of a derivative can be extended to incorporate changing contractual arrangements. Previous research in this area includes Piterbarg (2010, 2012), Kjaer (2011), Burgard and Kjaer (2011a, 2011b, 2012), an ...
Chapter 12 Unemployment and Inflation
... (b) cannot exploit the Phillips curve in the short run. (c) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. (d) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. Ans ...
... (b) cannot exploit the Phillips curve in the short run. (c) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. (d) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. Ans ...
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.