This version: August 30, 2000 Forthcoming, Journal of Money, Credit
... endogenous credit constraints driven by collateral or margin requirements.5 In most models proposed in this literature, credit constraints are either always binding (as in Kiyotaki and Moore (1997) or Bernanke, Gertler and Girlchrist (1998)) or occasionally binding in the short run but never binding ...
... endogenous credit constraints driven by collateral or margin requirements.5 In most models proposed in this literature, credit constraints are either always binding (as in Kiyotaki and Moore (1997) or Bernanke, Gertler and Girlchrist (1998)) or occasionally binding in the short run but never binding ...
... Asia’s economic recovery made great progress this past year. Most of the economies hit hardest by the 1997 crisis posted dramatic output gains, inflation remained low, and the signs of social distress that emerged after the crisis have visibly abated. Many countries have shared in this improved grow ...
QUIZ 7: Macro – Winter 2011 Name
... the interest rate. Economists refer to the absence of long-run effects of money on output and the interest rate by saying that ‘money is neutral in the long-run’. However, as seen in question 3 part 1, a short-term effect of an increase in money supply is an expansion (the AD shifts out because real ...
... the interest rate. Economists refer to the absence of long-run effects of money on output and the interest rate by saying that ‘money is neutral in the long-run’. However, as seen in question 3 part 1, a short-term effect of an increase in money supply is an expansion (the AD shifts out because real ...
The Role of Policy in the Great Recession and the Weak Recovery
... the large stimulus package in 2009 which also little did to stimulate aggregate consumption or government purchases and thereby real GDP regardless of the size of the multiplier, as shown by Cogan et al (2010) and Cogan and Taylor (2012). Some argue that a larger or better designed stimulus package ...
... the large stimulus package in 2009 which also little did to stimulate aggregate consumption or government purchases and thereby real GDP regardless of the size of the multiplier, as shown by Cogan et al (2010) and Cogan and Taylor (2012). Some argue that a larger or better designed stimulus package ...
Phillips Curve
... • Rising prices → workers demand higher wages → AS decreases → inflation increases → unemployment increases → ...
... • Rising prices → workers demand higher wages → AS decreases → inflation increases → unemployment increases → ...
Capital Mobility and the Thai Crisis*
... cause the walker to lose balance. But there will be no disaster if the tightrope is close to the ground, or ...
... cause the walker to lose balance. But there will be no disaster if the tightrope is close to the ground, or ...
Refocusing the Fed
... countries, it can very difficult to discern from interest rates alone what effects monetary policy is having on the economy. Yet there is no need to abandon hope, with nothing to do but fret that the situation is simply beyond our understanding. As a matter of fact, as soon as one recognizes that, w ...
... countries, it can very difficult to discern from interest rates alone what effects monetary policy is having on the economy. Yet there is no need to abandon hope, with nothing to do but fret that the situation is simply beyond our understanding. As a matter of fact, as soon as one recognizes that, w ...
Section 38 - Carsonville Port Sanilac
... Now that we have the CPIs for both year 0 and year 1, we can now use the equation on the left to calculate the rate of change in prices. We can see after multiplying the result by 100 that prices have risen by 54%. This percentage tells us that the basket of food and clothing in year 0 costs 54% mor ...
... Now that we have the CPIs for both year 0 and year 1, we can now use the equation on the left to calculate the rate of change in prices. We can see after multiplying the result by 100 that prices have risen by 54%. This percentage tells us that the basket of food and clothing in year 0 costs 54% mor ...
Monetary Policy and Interest Rates
... for the year than I would have. They pay $10 more for the bond, but they get the same payment at the end of the year that I would have. As a result, the yield the second buyer earns would be 4% [see Column B) of Table 1]. I hope you can see how Fed open market operations influence bond yields by aff ...
... for the year than I would have. They pay $10 more for the bond, but they get the same payment at the end of the year that I would have. As a result, the yield the second buyer earns would be 4% [see Column B) of Table 1]. I hope you can see how Fed open market operations influence bond yields by aff ...
Macroeconomics - University of Oxford
... • What is the effect of higher prices on the money market? • Higher prices mean that consumers need more money for transactions. The only way they can hold more money for transactions is by holding less for speculative purposes. • Speculative demand falls when interest rates rise, therefore interest ...
... • What is the effect of higher prices on the money market? • Higher prices mean that consumers need more money for transactions. The only way they can hold more money for transactions is by holding less for speculative purposes. • Speculative demand falls when interest rates rise, therefore interest ...
PDF
... Sri Lanka was one of the first among the developing countries which implemented a far reaching program of economic policy reforms as early as 1977, mainly under the structural adjustment policy packages designed and introduced by the World Bank. Consequently the major economic policy reforms impleme ...
... Sri Lanka was one of the first among the developing countries which implemented a far reaching program of economic policy reforms as early as 1977, mainly under the structural adjustment policy packages designed and introduced by the World Bank. Consequently the major economic policy reforms impleme ...
Document
... 11. In the long run, real money balances a. are not affected by expansionary fiscal policy but increase if expansionary monetary policy is employed b. are not effected by expansionary monetary policy but increase if expansionary fiscal policy is employed c. are not affected by restrictive monetary p ...
... 11. In the long run, real money balances a. are not affected by expansionary fiscal policy but increase if expansionary monetary policy is employed b. are not effected by expansionary monetary policy but increase if expansionary fiscal policy is employed c. are not affected by restrictive monetary p ...
Mark scheme - Unit F582 - The national and international
... Producers may not pass on lower imported raw material costs to consumers. If domestic firms do not have substitutes in the form of imports they may continue to raise their prices. A higher exchange rate may discourage FDI as it will make exports from the country more expensive/encourage domestic fir ...
... Producers may not pass on lower imported raw material costs to consumers. If domestic firms do not have substitutes in the form of imports they may continue to raise their prices. A higher exchange rate may discourage FDI as it will make exports from the country more expensive/encourage domestic fir ...
Document
... zero inflation rate due to its optimality to the society; Private agents expect the inflation rate to be zero; the economy reaches point ...
... zero inflation rate due to its optimality to the society; Private agents expect the inflation rate to be zero; the economy reaches point ...
Macroeconomic Fluctuations in the UK Economy
... quantification of the actual economy. In particular, the real business cycle programme is part of a larger new classical economics, which is argued to provide satisfactory microfoundations for macroeconomics in a way that Keynesian models conspicuously failed to do (e.g. Lucas and Sargeant. (1979)). ...
... quantification of the actual economy. In particular, the real business cycle programme is part of a larger new classical economics, which is argued to provide satisfactory microfoundations for macroeconomics in a way that Keynesian models conspicuously failed to do (e.g. Lucas and Sargeant. (1979)). ...
Y * 1
... From budget deficit to budget surplus Who is Greenspan? Why is he worry? Why we care? Asian 1980’s miracle and 1990’s crisis and the political consequences Russia and Latin America financial crises ...
... From budget deficit to budget surplus Who is Greenspan? Why is he worry? Why we care? Asian 1980’s miracle and 1990’s crisis and the political consequences Russia and Latin America financial crises ...
Asia and the Global Financial Crisis Ben S. Bernanke Welcome Address
... Since the beginning of this decade, Asia has accounted for more than one-third of the world’s economic growth, raising its share of global gross domestic product (GDP) from 28 percent to 32 percent.2 Importantly, its economic success has resulted in large-scale reductions in poverty and substantial ...
... Since the beginning of this decade, Asia has accounted for more than one-third of the world’s economic growth, raising its share of global gross domestic product (GDP) from 28 percent to 32 percent.2 Importantly, its economic success has resulted in large-scale reductions in poverty and substantial ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: The International Transmission of Inflation
... both “asset market approaches,” in the sense that the balance-ofpayments or exchange-rate fluctuations are caused basically by asset disequilibrium. However, there are some major differences. In MA, it is implicitly (e.g. most of the articles in Frenkel and Johnson 1978) or explicitly (e.g. Frenkel ...
... both “asset market approaches,” in the sense that the balance-ofpayments or exchange-rate fluctuations are caused basically by asset disequilibrium. However, there are some major differences. In MA, it is implicitly (e.g. most of the articles in Frenkel and Johnson 1978) or explicitly (e.g. Frenkel ...
Refocusing the Fed
... countries, it can very difficult to discern from interest rates alone what effects monetary policy is having on the economy. Yet there is no need to abandon hope, with nothing to do but fret that the situation is simply beyond our understanding. As a matter of fact, as soon as one recognizes that, w ...
... countries, it can very difficult to discern from interest rates alone what effects monetary policy is having on the economy. Yet there is no need to abandon hope, with nothing to do but fret that the situation is simply beyond our understanding. As a matter of fact, as soon as one recognizes that, w ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... He clearly argued that monetary policy could affect aggregate demand, raise the unemployment rate, and reduce inflation, but that the cost of reducing inflation was too high. Rudd thought that this all stemmed from Chairman ...
... He clearly argued that monetary policy could affect aggregate demand, raise the unemployment rate, and reduce inflation, but that the cost of reducing inflation was too high. Rudd thought that this all stemmed from Chairman ...
Unit 6 Review Game
... A. Business cycles are associated with fluctuations in money demand. B. Activist monetary policy is the best way to address business cycles. C. Discretionary monetary policy is effective while discretionary fiscal policy is not. D. The Fed should follow a monetary policy rule. E. All of the above. ...
... A. Business cycles are associated with fluctuations in money demand. B. Activist monetary policy is the best way to address business cycles. C. Discretionary monetary policy is effective while discretionary fiscal policy is not. D. The Fed should follow a monetary policy rule. E. All of the above. ...
How much have exchange rate movements reduced
... Because the wine industry has become more globalized in the past two decades, and most countries now have flexible exchange rates, winemakers in most countries are highly exposed to exchange rate movements. They are affected by an appreciation or depreciation not only in their own country’s currency ...
... Because the wine industry has become more globalized in the past two decades, and most countries now have flexible exchange rates, winemakers in most countries are highly exposed to exchange rate movements. They are affected by an appreciation or depreciation not only in their own country’s currency ...
Economic Policy of the New Consensus
... followed by the real rate of interest affected in the same way (price and wage rigidity is assumed); Changes in the real rate of interest can only affect aggregate demand in the short run; It should be noted that investment in this theoretical framework reflects changes in the capital stock, whi ...
... followed by the real rate of interest affected in the same way (price and wage rigidity is assumed); Changes in the real rate of interest can only affect aggregate demand in the short run; It should be noted that investment in this theoretical framework reflects changes in the capital stock, whi ...
NBER WORKING PAPER SERIES G7 CURRENT ACCOUNT IMBALANCES: SUSTAINABILITY AND ADJUSTMENT
... in goods and services and the volume of two way trade in financial assets is the backbone of a successful industrialization and development strategy. If the price to be paid for this strategy includes financing a large US current account deficit governments in the periphery will see it in their inte ...
... in goods and services and the volume of two way trade in financial assets is the backbone of a successful industrialization and development strategy. If the price to be paid for this strategy includes financing a large US current account deficit governments in the periphery will see it in their inte ...