SIGNIFICANCE OF CREDIT RATIONING IN UKRAINE by Ivan
... credit rationing cannot exist. In the neoclassical framework, the loan has two characteristics: interest rate and maturity. The customer's risk is known, and, provided there are no information costs, the lenders may perfectly price discriminate amongst borrowers through setting interest rates on the ...
... credit rationing cannot exist. In the neoclassical framework, the loan has two characteristics: interest rate and maturity. The customer's risk is known, and, provided there are no information costs, the lenders may perfectly price discriminate amongst borrowers through setting interest rates on the ...
This PDF is a selection from a published volume from
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
Review Quiz Answers Econ 103
... What is the key idea of classical growth theory that leads to the dismal outcome? The “dismal outcome” in classical theory is the conclusion that in the long run real GDP per person equals the subsistence level. In classical growth theory, an increase in labor productivity leads to higher incomes, w ...
... What is the key idea of classical growth theory that leads to the dismal outcome? The “dismal outcome” in classical theory is the conclusion that in the long run real GDP per person equals the subsistence level. In classical growth theory, an increase in labor productivity leads to higher incomes, w ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...
... of the economy can have an important effect on current planned investment. Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions. ...
House Prices, Interest Rates and Macroeconomic Fluctuations: International Evidence
... (in fact the actual output line and country factor lie on top of each other) while the mid 1990s recovery is largely global. For both interest rates, the two global factors seem to explain most of the movements in these variables. In a later section we will investigate whether or not this is due to ...
... (in fact the actual output line and country factor lie on top of each other) while the mid 1990s recovery is largely global. For both interest rates, the two global factors seem to explain most of the movements in these variables. In a later section we will investigate whether or not this is due to ...
Investing for the Future
... -The chance that inflation will rise faster than the return on your investment. -Government interferences EX. Taxes, regulations ...
... -The chance that inflation will rise faster than the return on your investment. -Government interferences EX. Taxes, regulations ...
SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
... In May 1993, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 114 (SFAS 114), "Accounting by Creditors for Impairment of a Loan". SFAS 114 requires the creation of a valuation allowance for impaired loans based on the present value of expected fu ...
... In May 1993, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 114 (SFAS 114), "Accounting by Creditors for Impairment of a Loan". SFAS 114 requires the creation of a valuation allowance for impaired loans based on the present value of expected fu ...
I Is Inflation Dead?
... rate for men aged 35 to 54 as a function of the group’s population share and participation rate. This new series portrays how the unemployment rate varies through time relative to the early 1960s, based on changes in basic demographics. These demographic shifts do not have a huge impact. The highest ...
... rate for men aged 35 to 54 as a function of the group’s population share and participation rate. This new series portrays how the unemployment rate varies through time relative to the early 1960s, based on changes in basic demographics. These demographic shifts do not have a huge impact. The highest ...
NBER WORKING PAPER SERIES THE DOT-COM BUBBLE, THE BUSH DEFICITS Aart Kraay
... some think that there is some probability that the US government effectively defaults on its obligations by engineering a high and unexpected inflation that reduces the real value of these payments. ...
... some think that there is some probability that the US government effectively defaults on its obligations by engineering a high and unexpected inflation that reduces the real value of these payments. ...
Jeffrey Naoko Ishii McKibbin
... the first year. This is less than for the U.S. case because of the assumption of a larger propensity to save in Japan. An interesting point to note is that the Yen appreciates in the case of a Japanese fiscal expansion (as does the U.S. dollar in the case of a U.S. Fiscal expansion). This comes from ...
... the first year. This is less than for the U.S. case because of the assumption of a larger propensity to save in Japan. An interesting point to note is that the Yen appreciates in the case of a Japanese fiscal expansion (as does the U.S. dollar in the case of a U.S. Fiscal expansion). This comes from ...
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
... Inflation tends to change relatively slowly as long as the economy is at full employment and there are no external shocks to the price level ...
... Inflation tends to change relatively slowly as long as the economy is at full employment and there are no external shocks to the price level ...
Inflation targeting vs. nominal GDP targeting
... see that it is not as easy as it seems to be. There are several reasons to set the target above zero. First, policy makers are not omnipotent people who will always achieve their target. With target inflation at 0% level, deflation becomes more likely. Deflation can be especially harmful to economy and ...
... see that it is not as easy as it seems to be. There are several reasons to set the target above zero. First, policy makers are not omnipotent people who will always achieve their target. With target inflation at 0% level, deflation becomes more likely. Deflation can be especially harmful to economy and ...
Keynes’s Monetary Theory: A Different Jnterpretation Allan H. Meltzer
... when the economy was plagued by idle capacity, Keynes held that the capital stock exerted a negative influence on real activity via its depressing effect on rates of return and the inducement to invest. In ignoring this point and arguing that Keynes believed the existing capital stock was too small ...
... when the economy was plagued by idle capacity, Keynes held that the capital stock exerted a negative influence on real activity via its depressing effect on rates of return and the inducement to invest. In ignoring this point and arguing that Keynes believed the existing capital stock was too small ...
aj-vyproty
... Money is a medium of exchange or means of payment. Money can be considered as a special commodity that mediates and facilitates the exchange of the other goods / services. a) Money enables people to exchange goods and services for other commodities – to make the transactions. b) Money also serves as ...
... Money is a medium of exchange or means of payment. Money can be considered as a special commodity that mediates and facilitates the exchange of the other goods / services. a) Money enables people to exchange goods and services for other commodities – to make the transactions. b) Money also serves as ...
Special Focus: Mastering Economic Thinking Skills
... B. To maximize profits, a firm chooses the quantity where MC = MR. Therefore, we should review a firm’s profit. 1. Profit = TR – TC. Recall that economic profits consist of the amount of money the firm brings in from sales (TR) minus their costs (TC), which include opportunity costs. C. However, MR ...
... B. To maximize profits, a firm chooses the quantity where MC = MR. Therefore, we should review a firm’s profit. 1. Profit = TR – TC. Recall that economic profits consist of the amount of money the firm brings in from sales (TR) minus their costs (TC), which include opportunity costs. C. However, MR ...
INFLATION
... Higher than anticipated inflation lowers the real wage rate and employers gain at the expense of workers. Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. Higher than anticipated inflation lowers the real wage rate, increases the quantity of la ...
... Higher than anticipated inflation lowers the real wage rate and employers gain at the expense of workers. Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. Higher than anticipated inflation lowers the real wage rate, increases the quantity of la ...
University of Lethbridge — Department of Economics
... 9) An increase in the price level due to an increase in the price of oil A) leads to an increase in the money wage rate. B) creates stagflation in the short-run and will trigger a cost-push inflation. C) increases output above potential GDP. D) leads to a decrease in the money wage rate. E) creates ...
... 9) An increase in the price level due to an increase in the price of oil A) leads to an increase in the money wage rate. B) creates stagflation in the short-run and will trigger a cost-push inflation. C) increases output above potential GDP. D) leads to a decrease in the money wage rate. E) creates ...
Monetary Policy Spillovers and the Trilemma in the - UW
... term policy interest rate and the rate of change in the real effective exchange rate (REER). We also tested the linkages of stock market price changes and the sovereign bond spread between the center and non-center economies. However, the results are much less robust or yield fewer insightss at time ...
... term policy interest rate and the rate of change in the real effective exchange rate (REER). We also tested the linkages of stock market price changes and the sovereign bond spread between the center and non-center economies. However, the results are much less robust or yield fewer insightss at time ...
- Munich Personal RePEc Archive
... will push the economy beyond full capacity, resulting with the positive NGAP having a greater inflationary impact and a lower unemployment impact than with negative NGAP. While this does make a good story, we do realize that this study focuses on recessions where NGAP tends to be negative. Hence, ou ...
... will push the economy beyond full capacity, resulting with the positive NGAP having a greater inflationary impact and a lower unemployment impact than with negative NGAP. While this does make a good story, we do realize that this study focuses on recessions where NGAP tends to be negative. Hence, ou ...
Banks, Market Organization, and Macroeconomic Performance: An Agent-Based Computational Analysis ∗ Quamrul Ashraf
... especially in worst-case scenarios. It is generally accepted that although finance may help promote economic growth and development, this long-run benefit comes at a cost of increased short-run volatility. This notion is embodied in the basic idea of the financial accelerator that Williamson (1987), ...
... especially in worst-case scenarios. It is generally accepted that although finance may help promote economic growth and development, this long-run benefit comes at a cost of increased short-run volatility. This notion is embodied in the basic idea of the financial accelerator that Williamson (1987), ...
ExamView Pro - ec1001june2009.tst
... ____ 13. If a central bank supplies more money than the quantity people want to hold a. spending will decrease and the price level will fall. b. spending will increase and the price level will rise. c. spending will remain constant but the price level will rise. d. there will be no change in the lev ...
... ____ 13. If a central bank supplies more money than the quantity people want to hold a. spending will decrease and the price level will fall. b. spending will increase and the price level will rise. c. spending will remain constant but the price level will rise. d. there will be no change in the lev ...
Quantitative Easing and Proposals for Reform of Monetary Policy
... Beyond its original mission to “furnish an elastic currency” as lender of last resort and manager of the payments system, the Federal Reserve has always been responsible (along with the Treasury) for regulating and supervising member banks. After World War II, Congress directed the Fed to pursue a d ...
... Beyond its original mission to “furnish an elastic currency” as lender of last resort and manager of the payments system, the Federal Reserve has always been responsible (along with the Treasury) for regulating and supervising member banks. After World War II, Congress directed the Fed to pursue a d ...
PDF
... knowledge. Finally, imperfect competition specially in the innovation markets is modelled. However, the new growth theory ignores altogether the interaction between growth and environment, even though there has been an increasing concern about the environment. The reason behind this concern is that ...
... knowledge. Finally, imperfect competition specially in the innovation markets is modelled. However, the new growth theory ignores altogether the interaction between growth and environment, even though there has been an increasing concern about the environment. The reason behind this concern is that ...
NBER WORKING PAPER SERIES THE FELDSTEIN-HORIOKA FACT Domenico Giannone Michele Lenza
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
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.