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THE FEDERAL RESERVE AND MONETARY POLICY
... more monetary reserves is known as ____________________________. 9. When interest rates are so low that the Central Bank finds it impossible to lower them any further, the economy is in a ________________________. 10. In cases where inflation is a significant problem and the banking system is unstab ...
... more monetary reserves is known as ____________________________. 9. When interest rates are so low that the Central Bank finds it impossible to lower them any further, the economy is in a ________________________. 10. In cases where inflation is a significant problem and the banking system is unstab ...
Glossary of key terms in international economics
... are sold in the forward market. Crawling peg system The system under which par values or exchange rates are changed by very small preannounced amounts at frequent and clearly specified intervals until the equilibrium exchange rate is reached. Credit tranche The amounts that a member nation could bor ...
... are sold in the forward market. Crawling peg system The system under which par values or exchange rates are changed by very small preannounced amounts at frequent and clearly specified intervals until the equilibrium exchange rate is reached. Credit tranche The amounts that a member nation could bor ...
Emerging Market Economies, Macroeconomic Policy Coordination
... may create volatility as opportunistic fund managers in the U.S. try to benefit from interest rate differentials. Conversely, if U.S. interest rates are hiked significantly, the EMEs might be adversely affected as the cost for raising funds for financing deficits or debt refinancing will rise signif ...
... may create volatility as opportunistic fund managers in the U.S. try to benefit from interest rate differentials. Conversely, if U.S. interest rates are hiked significantly, the EMEs might be adversely affected as the cost for raising funds for financing deficits or debt refinancing will rise signif ...
1 International Trade
... Stock of Foreign Direct Investment, 2010 ($ billions) This figure shows the stock of foreign direct investment (FDI) between selected countries and regions of the world for 2010 in billions of dollars. The largest stocks have the heaviest lines. © 2014 Worth Publishers International Economics, 3e | ...
... Stock of Foreign Direct Investment, 2010 ($ billions) This figure shows the stock of foreign direct investment (FDI) between selected countries and regions of the world for 2010 in billions of dollars. The largest stocks have the heaviest lines. © 2014 Worth Publishers International Economics, 3e | ...
Labor Market Institutions and Inflation Volatility in the Euro Area
... Labor market characteristics influence the dynamics of real wages and of the marginal cost of firms, which, in the standard New-Keynesian model, are a main driver of inflation. Hence it seems natural to assess the quantitative relevance of such institutions in determining differentials in inflation ...
... Labor market characteristics influence the dynamics of real wages and of the marginal cost of firms, which, in the standard New-Keynesian model, are a main driver of inflation. Hence it seems natural to assess the quantitative relevance of such institutions in determining differentials in inflation ...
Central Bank of Nigeria Communiqué` No. 102 of the Monetary
... continues, in an effort to combat the effects of deflation and high unemployment in the peripheral economies. The Bank of England has maintained its £375 billion asset purchase programme in the face of the downward trend in inflation, in most of the surrounding euro area economies. These expansionar ...
... continues, in an effort to combat the effects of deflation and high unemployment in the peripheral economies. The Bank of England has maintained its £375 billion asset purchase programme in the face of the downward trend in inflation, in most of the surrounding euro area economies. These expansionar ...
r - gwu.edu
... The Lucas critique points out that increasing the money growth rate may raise expected inflation, in which case unemployment would not necessarily fall. ...
... The Lucas critique points out that increasing the money growth rate may raise expected inflation, in which case unemployment would not necessarily fall. ...
Are We In A Different Market Paradigm?
... rate has to be roughly equal to the trend growth rate of nominal GDP to maintain monetary neutrality (i.e. for policy to be consistent with neither rising nor falling inflation). At the present time, we believe that the Fed erred in lowering the funds rate target to 1.25 percent given that nominal G ...
... rate has to be roughly equal to the trend growth rate of nominal GDP to maintain monetary neutrality (i.e. for policy to be consistent with neither rising nor falling inflation). At the present time, we believe that the Fed erred in lowering the funds rate target to 1.25 percent given that nominal G ...
Monetary policy
... The Changing Mortgage Market • By the 1990s, a large secondary market existed in mortgages, with funds flowing from investors through Fannie Mae and Freddie Mac to banks and, ultimately, to individuals and families borrowing money to buy houses. • Major commercial and investment banks borrowed heavi ...
... The Changing Mortgage Market • By the 1990s, a large secondary market existed in mortgages, with funds flowing from investors through Fannie Mae and Freddie Mac to banks and, ultimately, to individuals and families borrowing money to buy houses. • Major commercial and investment banks borrowed heavi ...
CONTENTS
... Vulnerable to trade and financial exposure ................................................... Exposure to developed-country demand ....................................................... Exposure to capital flows ............................................................................... Capita ...
... Vulnerable to trade and financial exposure ................................................... Exposure to developed-country demand ....................................................... Exposure to capital flows ............................................................................... Capita ...
Business Cycles, Unemployment, and Inflation
... real output is at or very close to the economy’s capacity. The price level is likely to rise at this level. Recession – period of decline in total output, income, and employment. The downturn, which lasts 6 months or more, is marked by widespread contraction of business activity in many industries. ...
... real output is at or very close to the economy’s capacity. The price level is likely to rise at this level. Recession – period of decline in total output, income, and employment. The downturn, which lasts 6 months or more, is marked by widespread contraction of business activity in many industries. ...
Notes
... One limitation of the Keynesian Cross is that investment is treated as exogenous. In reality, investment (buying new house or new capital goods) depends on interest rates. In this chapter we learn how interest rate is determined. Then we can allow investment to be endogenous. Key idea 3: people face ...
... One limitation of the Keynesian Cross is that investment is treated as exogenous. In reality, investment (buying new house or new capital goods) depends on interest rates. In this chapter we learn how interest rate is determined. Then we can allow investment to be endogenous. Key idea 3: people face ...
... incentives, price cuts at some point in the future seem almost inevitable. Indeed, we have already seen that the pace of house-price appreciation has clearly moderated, and there are signs that it may continue. For example, one indicator we have been following is the Case-Shiller house price index, ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconomics 2007
... holds as "labor"income. The fractionk is subjectto shocks. A crucial questionhere is whether we reallywant to treatchanges in income distribution as exogenous and its fluctuations as structuralshocks. The question is importantbecause the answer has implicationsnot only for measurementand calibration ...
... holds as "labor"income. The fractionk is subjectto shocks. A crucial questionhere is whether we reallywant to treatchanges in income distribution as exogenous and its fluctuations as structuralshocks. The question is importantbecause the answer has implicationsnot only for measurementand calibration ...
Characteristics and Possible Motivations
... 14% over 2002, this amount was 69% lower than the 5.4 billion pesos exported in 1989. Merchandise exports increased to 2.2 billion pesos in 2004, but were still 59% below 1989 levels. Cuba’s hard currency debt grew slightly during the 2000–2004 period, and remittances continued to play a key role as ...
... 14% over 2002, this amount was 69% lower than the 5.4 billion pesos exported in 1989. Merchandise exports increased to 2.2 billion pesos in 2004, but were still 59% below 1989 levels. Cuba’s hard currency debt grew slightly during the 2000–2004 period, and remittances continued to play a key role as ...
MACROECONOMICS AND THE GLOBAL BUSINESS ENVIRONMENT
... • If expectations < reality, then W/P low, unemployment is low •If expectations > reality, then W/P high, unemployment is high ...
... • If expectations < reality, then W/P low, unemployment is low •If expectations > reality, then W/P high, unemployment is high ...
While there has been considerable work critical of the East... actually anticipated the East Asian debacle of 1997-98 (e.g. see... I005
... contribute to export earnings, they aggravated the problem of currency mismatch, with foreign borrowings invested in activities not generating foreign exchange. An additional problem of 'term mismatch’ also arose as a high proportion of these foreign borrowings were short-term in nature (Table 4), b ...
... contribute to export earnings, they aggravated the problem of currency mismatch, with foreign borrowings invested in activities not generating foreign exchange. An additional problem of 'term mismatch’ also arose as a high proportion of these foreign borrowings were short-term in nature (Table 4), b ...
Sample
... transactions involve fixed nominal payments. For example, some retirees receive fixed nominal incomes (although the text notes that U.S. Social Security payments rise with the CPI). Inflation may be costly, but there are also economic problems associated with deflation (negative inflation). For exam ...
... transactions involve fixed nominal payments. For example, some retirees receive fixed nominal incomes (although the text notes that U.S. Social Security payments rise with the CPI). Inflation may be costly, but there are also economic problems associated with deflation (negative inflation). For exam ...
Policy Note THE FUTURE OF THE DOLLAR Has the Unthinkable Become Thinkable?
... ballooning twin deficits (current account and government) at a time of escalating military engagement is reminiscent of the Vietnam era. Today’s easy money and lax U.S. fiscal policy are helping to keep the dollar afloat, however, by providing hope that a U.S. economic recovery is alive. Without a f ...
... ballooning twin deficits (current account and government) at a time of escalating military engagement is reminiscent of the Vietnam era. Today’s easy money and lax U.S. fiscal policy are helping to keep the dollar afloat, however, by providing hope that a U.S. economic recovery is alive. Without a f ...
National Asset-Liability Management Europe Symposium
... underdeveloped nature of financial markets in EMEs made financial crises unavoidable. In addition, inability to implement countercyclical policies made EMEs suffer from larger damaging effects of financial crises on their real economies than otherwise. It is noteworthy that despite the lack of capac ...
... underdeveloped nature of financial markets in EMEs made financial crises unavoidable. In addition, inability to implement countercyclical policies made EMEs suffer from larger damaging effects of financial crises on their real economies than otherwise. It is noteworthy that despite the lack of capac ...
macro98b
... This section of the course provides an overview of macroeconomic analysis. It is an intermediate economic analysis course. The material covered in Junior Freshman Economics is the starting point of this year's work so you are urged to revise introductory principles as we proceed. Macroeconomics is a ...
... This section of the course provides an overview of macroeconomic analysis. It is an intermediate economic analysis course. The material covered in Junior Freshman Economics is the starting point of this year's work so you are urged to revise introductory principles as we proceed. Macroeconomics is a ...
1 Quantity Theory of Money
... growth). In addition, unexpected changes in the stock of money (or the money growth rate) appear to be associated with changes in real economic activity. From a theoretical point of view, the QTM also leaves much to be desired. To begin, the theory assumes that the monetary authority has direct and ...
... growth). In addition, unexpected changes in the stock of money (or the money growth rate) appear to be associated with changes in real economic activity. From a theoretical point of view, the QTM also leaves much to be desired. To begin, the theory assumes that the monetary authority has direct and ...
Presidential Pay - Cornell University, ILR School
... performance? Would it make sense to increase the pay of the president if GDP per capita (the size of the domestic economy averaged over the number of people in the U.S. population) increased? What about linking presidential pay to increasing how many people have jobs, or the high school graduation r ...
... performance? Would it make sense to increase the pay of the president if GDP per capita (the size of the domestic economy averaged over the number of people in the U.S. population) increased? What about linking presidential pay to increasing how many people have jobs, or the high school graduation r ...
Macroeconomics
... really essential because it covers almost all the material studied in the course. Nevertheless it does not provide students with necessary analytical tools. It also oversimplifies some microfoundations and behavioural functions that are ignored in our course because they are thoroughly explained in ...
... really essential because it covers almost all the material studied in the course. Nevertheless it does not provide students with necessary analytical tools. It also oversimplifies some microfoundations and behavioural functions that are ignored in our course because they are thoroughly explained in ...
Periodism of Chinese Current Account Surplus
... trade balance moved together. Before 1993, trade balance and the current account balance were small in number, surplus and deficit appeared alternately. Because this time is the early stage of reform and opening up, merchandise exports have just started. At the same time, demand for foreign advanced ...
... trade balance moved together. Before 1993, trade balance and the current account balance were small in number, surplus and deficit appeared alternately. Because this time is the early stage of reform and opening up, merchandise exports have just started. At the same time, demand for foreign advanced ...