Monetary Policy Statement March 2016
... New Zealand output growth has continued to recover from the weakness over the first half of 2015, but the global outlook has worsened and survey measures of inflation expectations have fallen. Annual CPI inflation for the December quarter was 0.1 percent – lower than our December Statement estimate ...
... New Zealand output growth has continued to recover from the weakness over the first half of 2015, but the global outlook has worsened and survey measures of inflation expectations have fallen. Annual CPI inflation for the December quarter was 0.1 percent – lower than our December Statement estimate ...
Convertible bonds
... There are many possible conversion prices since they depend on the past history of the stock price. Impact on bond price At high stock price (not likely to reset) or low stock price (low equity value) regions, the reset premium is low. The reset premium is significant only at intermediate stock pric ...
... There are many possible conversion prices since they depend on the past history of the stock price. Impact on bond price At high stock price (not likely to reset) or low stock price (low equity value) regions, the reset premium is low. The reset premium is significant only at intermediate stock pric ...
Phillips curve
... Paul Volcker was Fed chairman in the 1970s, inflation was widely viewed as one of the nation’s foremost problems. Volcker succeeded in reducing inflation (from 10% to 4%), but at the cost of high employment (about 10% in 1983). ...
... Paul Volcker was Fed chairman in the 1970s, inflation was widely viewed as one of the nation’s foremost problems. Volcker succeeded in reducing inflation (from 10% to 4%), but at the cost of high employment (about 10% in 1983). ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... rate but a positive inflation rate. If the AD had shifted to the left, inflation would have fallen, but unemployment would have risen. ...
... rate but a positive inflation rate. If the AD had shifted to the left, inflation would have fallen, but unemployment would have risen. ...
Research Department Working Paper No:05/07
... composition of the outstanding government securities are the dominant sources of monetary expansion in a country. On the other hand the quantity of money loses its usefulness for policy makers if the demand for money absorbs any change in money supply which may arise from the existence of absolute l ...
... composition of the outstanding government securities are the dominant sources of monetary expansion in a country. On the other hand the quantity of money loses its usefulness for policy makers if the demand for money absorbs any change in money supply which may arise from the existence of absolute l ...
NBER WORKING PAPER SERIES CAN CENTRAL BANK TRANSPARENCY GO TOO FAR?
... to increased support for the Bank of Canada policies, while it led to the granting of operational independence to the Bank of England in May of 1997. Indeed, when announcing the decision, Gordon Brown, the Chancellor of the Exchequer (equivalent to the finance minister or the secretary of the treas ...
... to increased support for the Bank of Canada policies, while it led to the granting of operational independence to the Bank of England in May of 1997. Indeed, when announcing the decision, Gordon Brown, the Chancellor of the Exchequer (equivalent to the finance minister or the secretary of the treas ...
The great turn-of-the-century housing boom
... rapid wealth accumulation. For example, according the corresponding real rate. The term “effective” means to the Survey of Consumer Finances, average family that the mortgage rate incorporates the various points, net worth increased by 72 percent between 1995 and fees, and other closing costs associ ...
... rapid wealth accumulation. For example, according the corresponding real rate. The term “effective” means to the Survey of Consumer Finances, average family that the mortgage rate incorporates the various points, net worth increased by 72 percent between 1995 and fees, and other closing costs associ ...
Preview Sample 3
... Garth Brooks, Used CDs, and the Law of Demand In 1993 country singer Garth Brooks tried to prevent his latest CD from being sold to any chain or store that also sells used CDs. His argument was that the used-CD market deprived labels and artists of earnings. His announcement came after Wherehouse En ...
... Garth Brooks, Used CDs, and the Law of Demand In 1993 country singer Garth Brooks tried to prevent his latest CD from being sold to any chain or store that also sells used CDs. His argument was that the used-CD market deprived labels and artists of earnings. His announcement came after Wherehouse En ...
Macroeconomics: an Introduction - Penn Economics
... • Real GDP: total production of goods and services in physical units. • How is real GDP computed in practice, say in 2004? ...
... • Real GDP: total production of goods and services in physical units. • How is real GDP computed in practice, say in 2004? ...
Working Paper No. 563 Whither New Consensus Macroeconomics
... Equation 1 describes an IS-type curve with the current output gap determined by past and expected future output gaps, as well the real interest rate. It is an IS-type of curve since, like the traditional IS curve of the 1960s neoclassical synthesis, it relates the real interest rate to the level of ...
... Equation 1 describes an IS-type curve with the current output gap determined by past and expected future output gaps, as well the real interest rate. It is an IS-type of curve since, like the traditional IS curve of the 1960s neoclassical synthesis, it relates the real interest rate to the level of ...
Differing views on monetary policy - Bank for International Settlements
... time as Sweden, the average inflation rate has instead been on target. At the same time, inflation expectations in Sweden have been anchored to the target. According to established economic analysis, anchored inflation expectations lead to a negative relationship between average inflation and averag ...
... time as Sweden, the average inflation rate has instead been on target. At the same time, inflation expectations in Sweden have been anchored to the target. According to established economic analysis, anchored inflation expectations lead to a negative relationship between average inflation and averag ...
Franz Seitz - OTH Amberg
... which are exacerbated by increases in average inflation. And Macklem et al. (1996) show that both anticipated and unanticipated monetary shocks may generate asymmetries. They also find no robust evidence of asymmetric output effects of factors other than domestic monetary policy shocks in Canada.3 F ...
... which are exacerbated by increases in average inflation. And Macklem et al. (1996) show that both anticipated and unanticipated monetary shocks may generate asymmetries. They also find no robust evidence of asymmetric output effects of factors other than domestic monetary policy shocks in Canada.3 F ...
Monetary Policy Statement March 2009 Contents
... partners. A lot of this relates to the better capital position ...
... partners. A lot of this relates to the better capital position ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... same time in the 1980s, by adding stock trading value and import prices into the list of explanatory variables in the domestic price equation. Since the impact of import prices on the WPI and CPI is so apparent, we take the GDP deflator as the measure of domestic prices. Although, as mentioned above ...
... same time in the 1980s, by adding stock trading value and import prices into the list of explanatory variables in the domestic price equation. Since the impact of import prices on the WPI and CPI is so apparent, we take the GDP deflator as the measure of domestic prices. Although, as mentioned above ...
Sense and Nonsense About Deflation
... disagreements and technical issues surrounding the incorporation of asset price movements into a generalized measure of inflation, we continue to rely on indexes that are based on the evolution of prices of goods and services to evaluate the stance of monetary policy. Indeed, central banks even bega ...
... disagreements and technical issues surrounding the incorporation of asset price movements into a generalized measure of inflation, we continue to rely on indexes that are based on the evolution of prices of goods and services to evaluate the stance of monetary policy. Indeed, central banks even bega ...
Mod 6.1: Monetary Policy
... either case, will be that demand will adjust to supply of money at the new price (interest rate) of money and a new quantity. (C) Red Hill Capital Corp., Delaware, USA ...
... either case, will be that demand will adjust to supply of money at the new price (interest rate) of money and a new quantity. (C) Red Hill Capital Corp., Delaware, USA ...
NBER WORKING PAPER SERIES MONETARY POLICIES FOR DEVELOPING COUNTRIES: Haizhou Huang
... investigated the consequences of weak public institutions including corruption for economic growth, capital controls, stock market volatility, tax evasion, and international capital flows. For the purpose of our paper, we model corruption as an erosion of a government’s ability to collect revenue th ...
... investigated the consequences of weak public institutions including corruption for economic growth, capital controls, stock market volatility, tax evasion, and international capital flows. For the purpose of our paper, we model corruption as an erosion of a government’s ability to collect revenue th ...
Nr. 111 The Differential Factors Influencing Saving through Life
... their saving through life insurance policies are usually manifested by technical or actuarial reserves with some nominal crediting rates, cash values adjust correspondingly in the light of actuarial reserves. Policyholders’ savings through life insurance thus are mostly composed of nominal cash valu ...
... their saving through life insurance policies are usually manifested by technical or actuarial reserves with some nominal crediting rates, cash values adjust correspondingly in the light of actuarial reserves. Policyholders’ savings through life insurance thus are mostly composed of nominal cash valu ...
Problem Set 4 Question 2
... equilibrium has a lower output level, Y1, and also a lower price level, P1. This lower price level feeds back into the IS-LM model, as it raises the real money supply (M/P) and so shifts the LM Curve downwards, from LM0 to LM1. The new (short run) equilibrium is at A1, with lower output level Y1, lo ...
... equilibrium has a lower output level, Y1, and also a lower price level, P1. This lower price level feeds back into the IS-LM model, as it raises the real money supply (M/P) and so shifts the LM Curve downwards, from LM0 to LM1. The new (short run) equilibrium is at A1, with lower output level Y1, lo ...
Forward Guidance and Macroeconomic Outcomes Since the Financial Crisis ∗ Jeffrey R. Campbell
... As such we identify forward guidance as interpreted by market participants, which may or may not be as intended by the members of the FOMC. In addition to introducing forward guidance to the monetary policy rule we make two changes to the preferences of the workhorse model. First, we include an addi ...
... As such we identify forward guidance as interpreted by market participants, which may or may not be as intended by the members of the FOMC. In addition to introducing forward guidance to the monetary policy rule we make two changes to the preferences of the workhorse model. First, we include an addi ...
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.