The Fed`s Monetary Policy during the 1930`s: A Critical Evaluation
... policy operations from its liquidity policy by changing the spread between the funds rate and the IOR. (Goodfriend 2009). Unlike the Fed of the 1930s, today’s Fed can use reverse repos or open market sales of its long-term securities to do the tightening. Were it to wish to reduce excess reserves to ...
... policy operations from its liquidity policy by changing the spread between the funds rate and the IOR. (Goodfriend 2009). Unlike the Fed of the 1930s, today’s Fed can use reverse repos or open market sales of its long-term securities to do the tightening. Were it to wish to reduce excess reserves to ...
1 Tight Money, High Wages: a review of Scott Sumner`s The Midas
... monetize new gold to satisfy “rules of the game” – nor did central banks of the US, France, or Germany show much inclination to monetize excess reserves a few years later. Also, only the US among major economies was on a gold standard during the early 1920s, so there would have been no central bank ...
... monetize new gold to satisfy “rules of the game” – nor did central banks of the US, France, or Germany show much inclination to monetize excess reserves a few years later. Also, only the US among major economies was on a gold standard during the early 1920s, so there would have been no central bank ...
Chapter 28: Monetary Policy in the Short Run
... The Demand for Money • Money is simply a part of your wealth. You can hold assets such as stocks or bonds, or you can hold wealth in the form of money. • Holding wealth in currency or checking deposits means that you sacrifice the potential income from interest and dividends earned on stocks and bo ...
... The Demand for Money • Money is simply a part of your wealth. You can hold assets such as stocks or bonds, or you can hold wealth in the form of money. • Holding wealth in currency or checking deposits means that you sacrifice the potential income from interest and dividends earned on stocks and bo ...
Lesson 5 - University of British Columbia
... Just as GDP measures the economy's total output of goods and services, the consumer price index (CPI) measures the cost of living over time. Chapter 6 of the text discusses the CPI, its construction, limitations, and uses. Chapter 12 analyzes inflation by applying the material presented in Chapter 6 ...
... Just as GDP measures the economy's total output of goods and services, the consumer price index (CPI) measures the cost of living over time. Chapter 6 of the text discusses the CPI, its construction, limitations, and uses. Chapter 12 analyzes inflation by applying the material presented in Chapter 6 ...
macro final.tst
... A) irrelevant because workers focus on their real wage rate and intertemporal substitution. B) sticky in the short run. C) sticky for an extended period of time. D) fully flexible. ...
... A) irrelevant because workers focus on their real wage rate and intertemporal substitution. B) sticky in the short run. C) sticky for an extended period of time. D) fully flexible. ...
2- money - Macroeconomics@Lourdes College
... their demand for currency and deposits as represented by the currencydeposit-ratio. On the other hand, the banks' behavior may be represented by the reserve-deposit ratio where bank reserves refer to coins and paper bills that are held by banks and those which they deposit with the BSP. The BSP's be ...
... their demand for currency and deposits as represented by the currencydeposit-ratio. On the other hand, the banks' behavior may be represented by the reserve-deposit ratio where bank reserves refer to coins and paper bills that are held by banks and those which they deposit with the BSP. The BSP's be ...
capital theory, inflation and deflation: the austrians and monetary
... of productivity, but rather as a interconnected, intertemporal structure that is reflective of the plans of the various actors in an economic system. As Ludwig Lachmann (1978, pp. 2-3) has argued, we cannot simply add up existing capital goods and get a meaningful measure of capital. For one, the ve ...
... of productivity, but rather as a interconnected, intertemporal structure that is reflective of the plans of the various actors in an economic system. As Ludwig Lachmann (1978, pp. 2-3) has argued, we cannot simply add up existing capital goods and get a meaningful measure of capital. For one, the ve ...
The Quantity Theory of Money
... exogenous to the quantity theory itself. In other words, monetary factors do not influence developments in the realeconomy. The third assumption states that causality runs from money to prices. Thus, the quantity theory of money can be represented as ...
... exogenous to the quantity theory itself. In other words, monetary factors do not influence developments in the realeconomy. The third assumption states that causality runs from money to prices. Thus, the quantity theory of money can be represented as ...
w05ex3 - Rose
... C. The aggregate demand curve is downward sloping because a decrease in the price level causes an increase in the interest rate and a decline in household and business spending on goods and services. D. A decrease in stock prices causes the aggregate demand curve to shift to the right. E. An increas ...
... C. The aggregate demand curve is downward sloping because a decrease in the price level causes an increase in the interest rate and a decline in household and business spending on goods and services. D. A decrease in stock prices causes the aggregate demand curve to shift to the right. E. An increas ...
Macroeconomic Adjustment and Structural Reform
... stimulate supply (shift AS right) in addition to reducing demand End result is point E with balance of payments equilibrium (B = 0). Level of GNP is unchanged, but its composition has changed. Price level is lower. ...
... stimulate supply (shift AS right) in addition to reducing demand End result is point E with balance of payments equilibrium (B = 0). Level of GNP is unchanged, but its composition has changed. Price level is lower. ...
Ragan_13ce_ch19_ch29Review
... As long as the number of claims grows at the same rate as the output of goods and services produced each period (GDP), then the money is good in the sense that it retains its value – the amount of goods and services that you can get with one unit of the money remains constant. A Simple Rule The mone ...
... As long as the number of claims grows at the same rate as the output of goods and services produced each period (GDP), then the money is good in the sense that it retains its value – the amount of goods and services that you can get with one unit of the money remains constant. A Simple Rule The mone ...
Unemployment, Inflation, and Interest Rates
... price change in society, like price tags or advertising. Because of this, sticky prices have been used to explain the shape of the short-run aggregate supply (SRAS)curve because the quantity of goods supplied (Qs) does depend on the price level. Page 3 ...
... price change in society, like price tags or advertising. Because of this, sticky prices have been used to explain the shape of the short-run aggregate supply (SRAS)curve because the quantity of goods supplied (Qs) does depend on the price level. Page 3 ...
Chapters 21-25
... will find their way to another bank, leading to excess reserves at that bank, and so on. Each time a bank obtains new reserves and lends out the excess, it ends up with more deposits than it started with. As the process continues, the total quantity of demand deposits—and with it the money supply—in ...
... will find their way to another bank, leading to excess reserves at that bank, and so on. Each time a bank obtains new reserves and lends out the excess, it ends up with more deposits than it started with. As the process continues, the total quantity of demand deposits—and with it the money supply—in ...
global business environment
... From the Short Run to the Long Run. In the short run prices are sticky and in some cases fixed resulting in a horizontal aggregate demand curve. Changes in aggregate demand have no impact on prices but do affect output. Assume as we did before there is downward shift (reduction) in aggregate demand, ...
... From the Short Run to the Long Run. In the short run prices are sticky and in some cases fixed resulting in a horizontal aggregate demand curve. Changes in aggregate demand have no impact on prices but do affect output. Assume as we did before there is downward shift (reduction) in aggregate demand, ...
Limits to Inflation Targeting
... Here we return to modeling both bonds and money, so that we can discuss policy in terms of an interest rate rule, as has recently been standard practice. We also introduce a foreign-currency denominated asset, so that we can consider a central bank with reserves only, and no access to a backup taxin ...
... Here we return to modeling both bonds and money, so that we can discuss policy in terms of an interest rate rule, as has recently been standard practice. We also introduce a foreign-currency denominated asset, so that we can consider a central bank with reserves only, and no access to a backup taxin ...
Lecture Outline
... Any asset’s liquidity refers to the ease with which that asset can be converted into a medium of exchange. Thus, money is the most liquid asset in the economy. The liquidity of money explains why people choose to hold it instead of other assets that could earn them a higher return. However, th ...
... Any asset’s liquidity refers to the ease with which that asset can be converted into a medium of exchange. Thus, money is the most liquid asset in the economy. The liquidity of money explains why people choose to hold it instead of other assets that could earn them a higher return. However, th ...
