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... would not be the only necessary solution to improve its profitability and to keep income parity. ...
... would not be the only necessary solution to improve its profitability and to keep income parity. ...
NBER WORKING PAPER SERIES DOES STABILIZING INFLATION CONTRIBUTE TO STABILIZING ECONOMIC ACTIVITY?
... In contrast, the run-up in energy prices since 2003 has had only modest effects on inflation for other goods; as a result, monetary policy has been able to avoid responding precipitously to higher oil prices. More generally, the period from the mid-1960s to the early 1980s was one of relatively high ...
... In contrast, the run-up in energy prices since 2003 has had only modest effects on inflation for other goods; as a result, monetary policy has been able to avoid responding precipitously to higher oil prices. More generally, the period from the mid-1960s to the early 1980s was one of relatively high ...
Monetary Stimulus DA – Kentucky 2012
... the Fed is actually doing is adjusting monetary policy to conditions in the aggregate economy. So, they'll do some quantitative easing (QE), then they'll back off; they'll do some more. Or Operation Twist. Or they'll promise to keep interest rates low for two years. And these policies are not highly ...
... the Fed is actually doing is adjusting monetary policy to conditions in the aggregate economy. So, they'll do some quantitative easing (QE), then they'll back off; they'll do some more. Or Operation Twist. Or they'll promise to keep interest rates low for two years. And these policies are not highly ...
Economic Fluctuations, Unemployment, and Inflation
... increased at an average annual rate of only 1.6%. • In contrast, the inflation rate averaged 9.2% from 1973 to 1981, reaching double-digits during several years. • Since 1982, the average rate of inflation has been lower (3.1% from 1983-2009) and more stable. Jump to first page ...
... increased at an average annual rate of only 1.6%. • In contrast, the inflation rate averaged 9.2% from 1973 to 1981, reaching double-digits during several years. • Since 1982, the average rate of inflation has been lower (3.1% from 1983-2009) and more stable. Jump to first page ...
After studying this chapter, you will able to
... Explain the short-run and long-run relationships between inflation and unemployment Explain the short-run and long-run relationships between inflation and interest rates ...
... Explain the short-run and long-run relationships between inflation and unemployment Explain the short-run and long-run relationships between inflation and interest rates ...
Document
... Money demand and the nominal interest rate • The Quantity Theory of Money assumes that the demand for real money balances depends only on real income Y. • We now consider another determinant of money demand: the nominal interest rate. • The nominal interest rate i is the opportunity cost of holding ...
... Money demand and the nominal interest rate • The Quantity Theory of Money assumes that the demand for real money balances depends only on real income Y. • We now consider another determinant of money demand: the nominal interest rate. • The nominal interest rate i is the opportunity cost of holding ...
Small is beautiful: the efficiency of credit markets in the late medieval
... that in many situations in the current “developing” world transaction costs of small loans for female and male entrepreneurs are very high, resulting in extremely high interest rates. This severely limits the number of projects that can be funded and carried out or may result in the fact that men an ...
... that in many situations in the current “developing” world transaction costs of small loans for female and male entrepreneurs are very high, resulting in extremely high interest rates. This severely limits the number of projects that can be funded and carried out or may result in the fact that men an ...
ec11 - Caritas University
... The realistic price effect involves a reduction in price of domestic output while the money demand effect appreciates domestic currency as the demand for money (of transaction) increases. ...
... The realistic price effect involves a reduction in price of domestic output while the money demand effect appreciates domestic currency as the demand for money (of transaction) increases. ...
Portfolio Funding Profile
... Long-term view of historical returns provides the best estimates for risks and correlations ...
... Long-term view of historical returns provides the best estimates for risks and correlations ...
Weekly Market Highlights
... weakness in other parts of the globe. We saw USD/JPY broke past 120 handle till Bank of Japan said to see consumer sentiment hurt by any further YEN drop and as of writing, USDJPY made new intraday low of 118.50 The Eurogroup was unable to issue a joint statement yesterday, much less come to any sor ...
... weakness in other parts of the globe. We saw USD/JPY broke past 120 handle till Bank of Japan said to see consumer sentiment hurt by any further YEN drop and as of writing, USDJPY made new intraday low of 118.50 The Eurogroup was unable to issue a joint statement yesterday, much less come to any sor ...
Fiscal Policy in a Depressed Economy
... As long as there is a short-term fiscal multiplier µ, a hysteresis shadow h, a tax-and-transfer share t, a real government borrowing rate r, and a debt amortization equation incorporating a trend growth rate g such that expression 7 holds, fiscal expansion now improves the government’s budget balanc ...
... As long as there is a short-term fiscal multiplier µ, a hysteresis shadow h, a tax-and-transfer share t, a real government borrowing rate r, and a debt amortization equation incorporating a trend growth rate g such that expression 7 holds, fiscal expansion now improves the government’s budget balanc ...
The Fed Needs to Change Course (Fall 2013)
... other with the Fed as counterparty) has fallen to $100 billion from a $400 billion level prior to the 2008 crisis. Once viewed as critical to efficient capital allocation, these markets will take time to rebuild when interest rates normalize. With the Fed a heavy buyer of longer-maturity Treasuries, ...
... other with the Fed as counterparty) has fallen to $100 billion from a $400 billion level prior to the 2008 crisis. Once viewed as critical to efficient capital allocation, these markets will take time to rebuild when interest rates normalize. With the Fed a heavy buyer of longer-maturity Treasuries, ...
Measuring the Stance of Monetary Policy in Vietnam: A Structural
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
A Multi-sector Model of the Australian Economy Research Discussion
... match those in the data. ξc,t are preference shocks that account for changes in consumption not explained by other economic features of the model. These innovations follow a stationary autoregressive process. Households have access to incomplete international financial markets in which they can buy ...
... match those in the data. ξc,t are preference shocks that account for changes in consumption not explained by other economic features of the model. These innovations follow a stationary autoregressive process. Households have access to incomplete international financial markets in which they can buy ...
AN AGGREGATE MODEL FOR THE EUROPEAN UNION Alberto
... In designing the structure of the underlying theoretical model we started from the open economy portfolio and macroeconomic equilibrium scheme consisting of three sectors (the private sector, government, the rest of the world) and four markets (output, domestic money, foreign money, bonds). Wealth e ...
... In designing the structure of the underlying theoretical model we started from the open economy portfolio and macroeconomic equilibrium scheme consisting of three sectors (the private sector, government, the rest of the world) and four markets (output, domestic money, foreign money, bonds). Wealth e ...
Chapter 4: Money and Inflation
... Relative price Firms facing menu costs change prices distortions infrequently Unfair tax treatment Some taxes are not adjusted to account for inflation, such as the capital gains tax. General Inflation makes it harder to compare inconvenience nominal values from different time periods complicates l ...
... Relative price Firms facing menu costs change prices distortions infrequently Unfair tax treatment Some taxes are not adjusted to account for inflation, such as the capital gains tax. General Inflation makes it harder to compare inconvenience nominal values from different time periods complicates l ...
Exchange Rates
... currencies. The index weights, which change over time, are derived from U.S. export shares. The index is calculated in indirect terms so higher values imply a stronger USD. Foreign Exchange ...
... currencies. The index weights, which change over time, are derived from U.S. export shares. The index is calculated in indirect terms so higher values imply a stronger USD. Foreign Exchange ...
The Relationship between Savings and Growth in South Africa
... agents face the choice of allocating resources not used for consumption either to the purchase of physical capital, or to money balances. Since it is physical investment that is the source of economic growth, if money balances are not made available for investment, but rather held as a stock of purc ...
... agents face the choice of allocating resources not used for consumption either to the purchase of physical capital, or to money balances. Since it is physical investment that is the source of economic growth, if money balances are not made available for investment, but rather held as a stock of purc ...
Document
... is business expectations If firms become more pessimistic about profit prospects, planned investment will decrease at every level of income as shown by the shift in the investment function from I to I’ in Exhibit 9 On the other hand, if profit expectations become rosier, the investment function will ...
... is business expectations If firms become more pessimistic about profit prospects, planned investment will decrease at every level of income as shown by the shift in the investment function from I to I’ in Exhibit 9 On the other hand, if profit expectations become rosier, the investment function will ...
Chapter 11 Applications of the Ramsey model
... of , has a kink at time 0 Correspondingly, control variables are in economics often called jump variables or forward-looking variables. The latter name comes from the notion that a decision variable can immediately shift to another value if new information arrives so as to alter the expected cir ...
... of , has a kink at time 0 Correspondingly, control variables are in economics often called jump variables or forward-looking variables. The latter name comes from the notion that a decision variable can immediately shift to another value if new information arrives so as to alter the expected cir ...
Re-Targeting the Fed
... cite — the impact of rising prices on consumers. After all, when prices rise, incomes usually rise as well. Instead, many economists would argue that high inflation is a sort of tax on capital: Our tax system punishes savers during high-inflation periods like the 1970s, as people must pay taxes on c ...
... cite — the impact of rising prices on consumers. After all, when prices rise, incomes usually rise as well. Instead, many economists would argue that high inflation is a sort of tax on capital: Our tax system punishes savers during high-inflation periods like the 1970s, as people must pay taxes on c ...
NBER WORKING PAPER SERIES DEFYING GRAVITY: Takeo Hoshi
... exceeds the domestic private sector financial assets is close, the yield will have to rise. This paper also points out such a change can be sudden and unpredictable, and describes possible scenarios of the economic impacts of such a debt crisis. The rest of the paper is organized as follows. Sectio ...
... exceeds the domestic private sector financial assets is close, the yield will have to rise. This paper also points out such a change can be sudden and unpredictable, and describes possible scenarios of the economic impacts of such a debt crisis. The rest of the paper is organized as follows. Sectio ...
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.