Slide 1
... Liquidity trap = a situation in which the public is prepared, at a given interest rate, to hold whatever amount of money is ...
... Liquidity trap = a situation in which the public is prepared, at a given interest rate, to hold whatever amount of money is ...
NBER WORKING PAPER SERIES REAL-FINANCIAL LINKAGES AMONG OPEN ECONOMIES Sven W. Arndt
... factors to become mobile across borders (Mundell (1957)). And since international transfers of financial purchasing power must be reversed sometime if national budget balance is to be maintained, familiar general-equilibrium models insist that long-run equilibria feature no capital—account (or curre ...
... factors to become mobile across borders (Mundell (1957)). And since international transfers of financial purchasing power must be reversed sometime if national budget balance is to be maintained, familiar general-equilibrium models insist that long-run equilibria feature no capital—account (or curre ...
direct absorption
... One of the key factors determining the elasticity of pass-through being the degree of product differentiation; the greater the degree of product differentiation then the more ability of foreign exporters to raise their prices ...
... One of the key factors determining the elasticity of pass-through being the degree of product differentiation; the greater the degree of product differentiation then the more ability of foreign exporters to raise their prices ...
ECON 111-01A Dr. John F. Olson Introduction to Economics Spring
... becomes more negative). Thus, one of two things (or a combination of them) will have to occur if private domestic savings (S) does not change. Either investment (I) will decrease as there is less total savings available (the supply of loanable funds decreases as government “crowding-out” occurs) and ...
... becomes more negative). Thus, one of two things (or a combination of them) will have to occur if private domestic savings (S) does not change. Either investment (I) will decrease as there is less total savings available (the supply of loanable funds decreases as government “crowding-out” occurs) and ...
It’s All About Interest Rates
... of money to those who are willing and able to use it most efficiently in the long run. • Act as an automatic stabilizer to inflation. ...
... of money to those who are willing and able to use it most efficiently in the long run. • Act as an automatic stabilizer to inflation. ...
How Successful Has Inflation Targeting Been?
... sluggish GDP growth and, since 1988, rising unemployment. The continuation of the disinflation during 1990-91, amid recession in many other Organization for Economic Cooperation and Development (OECD) economies, led to recession and sharply rising unemployment. In Canada, the disinflation was achiev ...
... sluggish GDP growth and, since 1988, rising unemployment. The continuation of the disinflation during 1990-91, amid recession in many other Organization for Economic Cooperation and Development (OECD) economies, led to recession and sharply rising unemployment. In Canada, the disinflation was achiev ...
Monetary Policy Objectives and Framework
... Alternative Monetary Policy Strategies Inflation Targeting Rule Inflation rate targeting is a monetary policy strategy in which the central bank makes a public commitment 1. To achieve an explicit inflation target 2. To explain how its policy actions will achieve that target Several central banks p ...
... Alternative Monetary Policy Strategies Inflation Targeting Rule Inflation rate targeting is a monetary policy strategy in which the central bank makes a public commitment 1. To achieve an explicit inflation target 2. To explain how its policy actions will achieve that target Several central banks p ...
Eco220Int Subject Ou.. - CSUSAP
... This subject builds on previous study of the principles of macroeconomics. The focus of the subject is slanted towards understanding the impact of global macroeconomic activity and international finance markets on the domestic economy. Australia can be described as a small open economy. With its adv ...
... This subject builds on previous study of the principles of macroeconomics. The focus of the subject is slanted towards understanding the impact of global macroeconomic activity and international finance markets on the domestic economy. Australia can be described as a small open economy. With its adv ...
Martin NBER WORKING PAPER SERIES OF MONETARY FLICY
... percent net—of—tax rate and a 1.6 percent real net—of—tax cost of funds. Thus, although the nominal interest rate had more than doubled and the real interest rate had also increased, the relevant net—of—tax real cost of funds had actually fallen from 1.6 percent to only 0.1 percent. As this example ...
... percent net—of—tax rate and a 1.6 percent real net—of—tax cost of funds. Thus, although the nominal interest rate had more than doubled and the real interest rate had also increased, the relevant net—of—tax real cost of funds had actually fallen from 1.6 percent to only 0.1 percent. As this example ...
Annual Economic Outlook 2016
... The contrast between strong services and weaker manufacturing is reflected in the relative performance of the PMI indicators. While the composite PMI index (which includes manufacturing and services but not construction) showed an expansion to 55.8 in November, the manufacturing PMI was 52.7 whereas ...
... The contrast between strong services and weaker manufacturing is reflected in the relative performance of the PMI indicators. While the composite PMI index (which includes manufacturing and services but not construction) showed an expansion to 55.8 in November, the manufacturing PMI was 52.7 whereas ...
Growth 3 Convergence and TP
... given the restrictive assumptions of the model, is found in the lower initial endowment capital of the poorest countries that guarantees them higher returns and growth over time. ...
... given the restrictive assumptions of the model, is found in the lower initial endowment capital of the poorest countries that guarantees them higher returns and growth over time. ...
NBER WORKING PAPER SERIES MODIGLIANIESQUE MACRO MODELS Stanley Fischer Working Paper No. 1797
... (1969). With q normally inversely related to r, an open market purchase that reduces the interest rate then increases aggregate demand both through a wealth effect on Consumption demand and a cost of capital effect on investment (Modigliani, 1971). However, as Tobin shows, the inclusion of q does no ...
... (1969). With q normally inversely related to r, an open market purchase that reduces the interest rate then increases aggregate demand both through a wealth effect on Consumption demand and a cost of capital effect on investment (Modigliani, 1971). However, as Tobin shows, the inclusion of q does no ...
Section 5 REVIEW Saving-Investment Identity (Remember: One
... * Deep recessionary gap → expansionary monetary policy could be used to assist expansionary fiscal policy to quickly move to full employment. RISK = a burst of inflation * Mild recessionary gap → contractionary monetary policy could be used to offset expansionary fiscal policy to gradually move to f ...
... * Deep recessionary gap → expansionary monetary policy could be used to assist expansionary fiscal policy to quickly move to full employment. RISK = a burst of inflation * Mild recessionary gap → contractionary monetary policy could be used to offset expansionary fiscal policy to gradually move to f ...
Indonesia - Lazard Asset Management
... the interest-rate corridor around the policy rate. Usually the lending rate defines the top of the corridor, and the deposit rate defines the bottom of the corridor. When evaluating the monetary policy stance, it is useful to take into account that a 1% real policy rate is considered neutral by the ...
... the interest-rate corridor around the policy rate. Usually the lending rate defines the top of the corridor, and the deposit rate defines the bottom of the corridor. When evaluating the monetary policy stance, it is useful to take into account that a 1% real policy rate is considered neutral by the ...
ECB response to the crisis
... stable exchange rates in relation to most important trading partners ...
... stable exchange rates in relation to most important trading partners ...
Working Paper No. 59 James R. Lothian Anthony Cassese 1050
... The final equilibrium position is one in which monetary growth, inflation and the nominal interest rate on bonds both in the reserve currency country and abroad are all higher; holdings of real cash balances are lower and inter- ...
... The final equilibrium position is one in which monetary growth, inflation and the nominal interest rate on bonds both in the reserve currency country and abroad are all higher; holdings of real cash balances are lower and inter- ...
KAZAKHSTAN/AZERBAIJAN: Oil can unbalance economies
... Kazakhstan's employment but less than 10% of GDP, indicating persistent undercapitalisation and heavy reliance on manual labour. Currency appreciation Since 2000, the tenge has appreciated about 30% in real terms against the dollar. Despite this, it is still undervalued; the IMF says it must appreci ...
... Kazakhstan's employment but less than 10% of GDP, indicating persistent undercapitalisation and heavy reliance on manual labour. Currency appreciation Since 2000, the tenge has appreciated about 30% in real terms against the dollar. Despite this, it is still undervalued; the IMF says it must appreci ...
Macroeconomics Review 2
... production function Y K [(1 u) L]1, where K is capital, L is the labor force, and u is the natural rate of unemployment. The national saving rate is s , the labor force grows at rate n , and capital depreciates at rate d . 1) Express output per worker (y Y / L) as a function of capital p ...
... production function Y K [(1 u) L]1, where K is capital, L is the labor force, and u is the natural rate of unemployment. The national saving rate is s , the labor force grows at rate n , and capital depreciates at rate d . 1) Express output per worker (y Y / L) as a function of capital p ...
AP Macroeconomics Unit 4 Review Session Money Market
... If the public does not change its currency holdings, what will happen to the level of checkable deposits in Macroland, relative to their initial level, if the central bank of Macroland purchases $10 million worth of Treasury bills in the open market? Provide the numerical answer and explain. When ce ...
... If the public does not change its currency holdings, what will happen to the level of checkable deposits in Macroland, relative to their initial level, if the central bank of Macroland purchases $10 million worth of Treasury bills in the open market? Provide the numerical answer and explain. When ce ...
Cunningham EMBA LA Syllabus 2014
... The purpose of this session is to help you understand trade policy, what the international monetary system is and how the choice of system affects currency values. It also provides an historical background of the international monetary system. This gives you perspective when trying to interpret the ...
... The purpose of this session is to help you understand trade policy, what the international monetary system is and how the choice of system affects currency values. It also provides an historical background of the international monetary system. This gives you perspective when trying to interpret the ...
End of an Epoch: Britain`s Withdrawal from the Gold Standard
... Britain’s withdrawal from the gold standard in September 1931 was the end of an epoch and the start of a new one. The gold standard was an exchange rate regime which provided the framework for the global monetary system for much of the interwar period. When Britain withdrew, the whole system was und ...
... Britain’s withdrawal from the gold standard in September 1931 was the end of an epoch and the start of a new one. The gold standard was an exchange rate regime which provided the framework for the global monetary system for much of the interwar period. When Britain withdrew, the whole system was und ...
the macedonian economy and the european union
... approximately 25 percent of the people with Albanian ethnic background, 4 percent with Turkish, 3 percent with Roma and 2 percent with Serbian. Macedonia was the only Yugoslav republic that was not involved in the wars after the breakup of Yugoslavia. However, there was an inter-ethnic internal conf ...
... approximately 25 percent of the people with Albanian ethnic background, 4 percent with Turkish, 3 percent with Roma and 2 percent with Serbian. Macedonia was the only Yugoslav republic that was not involved in the wars after the breakup of Yugoslavia. However, there was an inter-ethnic internal conf ...
The Yield Curve in a Small Open Economy February 2010
... from a short-term nominal interest rate to a long-term real interest rate, which in turn influences aggregate demand. Of course, for a short-term nominal rate to influence a long-term real rate, the short-term nominal rate must influence long-term nominal rates. The view of a decoupled yield curve i ...
... from a short-term nominal interest rate to a long-term real interest rate, which in turn influences aggregate demand. Of course, for a short-term nominal rate to influence a long-term real rate, the short-term nominal rate must influence long-term nominal rates. The view of a decoupled yield curve i ...
Greek Fiscal Crisis: Is a First World Debt Crisis in the
... Reinhart & Rogoff report the following findings: 1) There have been long periods where a high percentage ( > 40%) of countries have been in a state of default or restructuring 2) Since 1800, there have been 5 major default cycles. with one ot two decade lulls in between 3) Serial default is ...
... Reinhart & Rogoff report the following findings: 1) There have been long periods where a high percentage ( > 40%) of countries have been in a state of default or restructuring 2) Since 1800, there have been 5 major default cycles. with one ot two decade lulls in between 3) Serial default is ...