foreign aid inflows and the real exchange rate in the cfa franc
... former colonies and also to exert some control over these countries. The zone was designed to allow the ability to facilitate transfers of fund between France and its ex-colonies in Africa; to convert currency at a fixed rate in the zone; and, finally, to centralise all of the monetary reserves of t ...
... former colonies and also to exert some control over these countries. The zone was designed to allow the ability to facilitate transfers of fund between France and its ex-colonies in Africa; to convert currency at a fixed rate in the zone; and, finally, to centralise all of the monetary reserves of t ...
A Theory of Macroprudential Policies in the Presence of Nominal Rigidities
... results are instead driven by Keynesian aggregate demand externalities. We provide a useful formula for the optimal policy that offers insight into the size and direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and su ...
... results are instead driven by Keynesian aggregate demand externalities. We provide a useful formula for the optimal policy that offers insight into the size and direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and su ...
A Theory of Macroprudential Policies in the Presence of Nominal Rigidities ∗
... results are instead driven by Keynesian aggregate demand externalities. We provide a useful formula for the optimal policy that offers insight into the size and direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and su ...
... results are instead driven by Keynesian aggregate demand externalities. We provide a useful formula for the optimal policy that offers insight into the size and direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and su ...
Time-Consistent Management of a Liquidity Trap
... At the onset of the Great Recession in December 2008 Federal Reserve pushed federal funds rate down next to zero. Situation when zero bound prevents monetary authority from providing enough stimuli by means of the interest rate policy is often referred to as a liquidity trap. So far it has been the ...
... At the onset of the Great Recession in December 2008 Federal Reserve pushed federal funds rate down next to zero. Situation when zero bound prevents monetary authority from providing enough stimuli by means of the interest rate policy is often referred to as a liquidity trap. So far it has been the ...
Macro Stress Testing of Credit Risk Focused on the Tails
... be even reasonable to expect the (total) covariance Σu,ε to have the same sign as γ0, respectively for each macro variable. This argument will help us choose an intuitive specification for (2) at section 4.1. Estimation of system (1)-(4) is rarely discussed in the stress-testing literature. If one b ...
... be even reasonable to expect the (total) covariance Σu,ε to have the same sign as γ0, respectively for each macro variable. This argument will help us choose an intuitive specification for (2) at section 4.1. Estimation of system (1)-(4) is rarely discussed in the stress-testing literature. If one b ...
"Great Inflation" Lessons for Monetary Policy
... money and a commodity base, such as gold or silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term infl ...
... money and a commodity base, such as gold or silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term infl ...
NBER WORKING PAPER SERIES NEW-KEYNESIAN ECONOMICS: AN AS-AD VIEW Pierpaolo Benigno
... As in Keynesian theory, the model posits some degree of short-run nominal rigidity. Nominal rigidity can be explained by the fact that price setters have some monopoly power, so that they incur only second-order costs when they do not change their prices. In the long run, the model maintains the cla ...
... As in Keynesian theory, the model posits some degree of short-run nominal rigidity. Nominal rigidity can be explained by the fact that price setters have some monopoly power, so that they incur only second-order costs when they do not change their prices. In the long run, the model maintains the cla ...
A deflationary wave has arrived in the Eurozone but it is not the next
... again in recent weeks, there is a chance that inflation could dip into negative territory over the next couple of months if oil prices remain at current levels. However, this deflation is not necessarily something to worry about – it is ‘good deflation’. For a net importer of oil like the US, lower ...
... again in recent weeks, there is a chance that inflation could dip into negative territory over the next couple of months if oil prices remain at current levels. However, this deflation is not necessarily something to worry about – it is ‘good deflation’. For a net importer of oil like the US, lower ...
The Macroeconomic Transition to High Household Debt Jeffrey R. Campbell Zvi Hercowitz
... amortizes. The implied forced savings reflected the desire of the Roosevelt administration to reduce the likelihood of a mass default of highly-leveraged mortgagees, as occurred at the beginning of the Great Depression. A host of financial regulations supported this policy. The most prominent gave t ...
... amortizes. The implied forced savings reflected the desire of the Roosevelt administration to reduce the likelihood of a mass default of highly-leveraged mortgagees, as occurred at the beginning of the Great Depression. A host of financial regulations supported this policy. The most prominent gave t ...
krugmanobstfeldch16.pp
... 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. ...
Loan supply shocks and the business cycle - ECB
... It is widely agreed that financial intermediaries and credit markets more in general appear to have played a significant role in the context of the events which led to the severe recession experienced during 2008 and 2009 by advanced economies such as the Euro Area, the United Kingdom and the United ...
... It is widely agreed that financial intermediaries and credit markets more in general appear to have played a significant role in the context of the events which led to the severe recession experienced during 2008 and 2009 by advanced economies such as the Euro Area, the United Kingdom and the United ...
IOSR Journal of Business and Management (IOSR-JBM)
... society. Its impact can no longer be ignored by both the developed and developing nations alike. Inflation is defined as a generalized increase in the level of price sustained over a long period in an economy (Lipsey and Chrystal, 1995). Inflation is a household word in many market oriented economic ...
... society. Its impact can no longer be ignored by both the developed and developing nations alike. Inflation is defined as a generalized increase in the level of price sustained over a long period in an economy (Lipsey and Chrystal, 1995). Inflation is a household word in many market oriented economic ...
Why the Federal Reserve Should Adopt Inflation Targeting
... is member of the Board of Governors of the Federal Reserve, have also worried that inflation targeting may be too rigid because inflation-targeting central banks in advanced economies have often adopted a horizon for their inflation targets of two years or so, with the Bank of England being a promin ...
... is member of the Board of Governors of the Federal Reserve, have also worried that inflation targeting may be too rigid because inflation-targeting central banks in advanced economies have often adopted a horizon for their inflation targets of two years or so, with the Bank of England being a promin ...
Economics for Investment Decision Makers Workbook
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
... Goods markets are the interactions of consumers as buyers and firms as sellers of goods and services produced by firms and bought by households. Factor markets are the interactions of firms as buyers and households as sellers of land, labor, capital, and entrepreneurial risk-taking ability. Capital mar ...
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. ...
NBER WORKING PAPER SERIES INCOMPLETE MARKET DYNAMICS IN NEOCLASSICAL PRODUCTION ECONOMY George-Marios Angeletos
... some persistence because agents seek to smooth consumption through time. When markets are incomplete, productive investment is risky and becomes even less attractive relative to current consumption. This can slow down convergence to the steady state, and thus increase the persistence of aggregate sh ...
... some persistence because agents seek to smooth consumption through time. When markets are incomplete, productive investment is risky and becomes even less attractive relative to current consumption. This can slow down convergence to the steady state, and thus increase the persistence of aggregate sh ...
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.