Foreign Exchange Market (FOREX)
... they like the variety of colors that they come in. Also assume the Euro-area countries are in the midst of an economic recovery AND the U.S. economy is in a recession which has depressed the average price level. – This example hits four of the factors that affect the exchange rates between two curre ...
... they like the variety of colors that they come in. Also assume the Euro-area countries are in the midst of an economic recovery AND the U.S. economy is in a recession which has depressed the average price level. – This example hits four of the factors that affect the exchange rates between two curre ...
Embargoed for release at 2:00 ... Economic Projections of Federal Reserve ...
... participants who judge that the initial increase in the target federal funds rate (from its current range of 0 to ¼ percent) would appropriately occur in the specified calendar year. In the lower panel, the dots represent individual policymakers’ assessments of the appropriate federal funds rate ...
... participants who judge that the initial increase in the target federal funds rate (from its current range of 0 to ¼ percent) would appropriately occur in the specified calendar year. In the lower panel, the dots represent individual policymakers’ assessments of the appropriate federal funds rate ...
Economics for Today 2nd edition Irvin B. Tucker
... 7. Which of the following would overstate the consumer price index? a. Substitution bias. b. Improving quality of products. c. Neither (a) nor (b). d. Both (a) and (b). D. Substitution bias refers to the law of demand in which people buy less when the price rises. However, the CPI is based on a fix ...
... 7. Which of the following would overstate the consumer price index? a. Substitution bias. b. Improving quality of products. c. Neither (a) nor (b). d. Both (a) and (b). D. Substitution bias refers to the law of demand in which people buy less when the price rises. However, the CPI is based on a fix ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... 1. The object of the NBER is to ascertain and present to the economics profession, and to the public more generally, important economic facts and their interpretation in a scientific manner without policy recommendations. The Board of Directors is charged with the responsibility of ensuring that the ...
... 1. The object of the NBER is to ascertain and present to the economics profession, and to the public more generally, important economic facts and their interpretation in a scientific manner without policy recommendations. The Board of Directors is charged with the responsibility of ensuring that the ...
the surge in the loonie
... Cuts in policy interest rates: The fed funds rate cut by 75 basis points to 4.5%, while every other central bank in the world is raising policy rates Deteriorating inflation-adjusted interest differentials with the rest of the world The growing cost and burden on the U.S. A. of the war on terror and ...
... Cuts in policy interest rates: The fed funds rate cut by 75 basis points to 4.5%, while every other central bank in the world is raising policy rates Deteriorating inflation-adjusted interest differentials with the rest of the world The growing cost and burden on the U.S. A. of the war on terror and ...
THE SURGE IN THE LOONIE:
... Cuts in policy interest rates: The fed funds rate cut by 75 basis points to 4.5%, while every other central bank in the world is raising policy rates Deteriorating inflation-adjusted interest differentials with the rest of the world The growing cost and burden on the U.S. A. of the war on terror and ...
... Cuts in policy interest rates: The fed funds rate cut by 75 basis points to 4.5%, while every other central bank in the world is raising policy rates Deteriorating inflation-adjusted interest differentials with the rest of the world The growing cost and burden on the U.S. A. of the war on terror and ...
What are Interest Rates?
... The actual real interest rate reflect the impact of inflation. r ≈ i - π, where the actual real interest rate, r, equals the nominal interest rate minus the actual inflation rate. With increasing inflation rates, inflation premiums, πe, may less than actual inflation rates, π, yielding low or even n ...
... The actual real interest rate reflect the impact of inflation. r ≈ i - π, where the actual real interest rate, r, equals the nominal interest rate minus the actual inflation rate. With increasing inflation rates, inflation premiums, πe, may less than actual inflation rates, π, yielding low or even n ...
MACROECONOMICS. FALL 2010. EXAM 1.
... = (MPC – 1) ∆T. Remember that ∆T = ∆G. The above expression tells us that the impact on saving of an equal increase in T and G depends on the size of the marginal propensity to consume. The closer the MPC is to 1, the smaller is the fall in saving. For example, if the MPC equals 1, then the fall in ...
... = (MPC – 1) ∆T. Remember that ∆T = ∆G. The above expression tells us that the impact on saving of an equal increase in T and G depends on the size of the marginal propensity to consume. The closer the MPC is to 1, the smaller is the fall in saving. For example, if the MPC equals 1, then the fall in ...
Argentina: A Decade of the Convertibility Regime
... of economic activity in the tradable sectors, particularly in manufactures, as was observed in the cases of Brazil and Mexico. Even in expansionary periods, the increases in the demand for manufactured goods could not offset a number of negative effects. These effects resulted from the direct displa ...
... of economic activity in the tradable sectors, particularly in manufactures, as was observed in the cases of Brazil and Mexico. Even in expansionary periods, the increases in the demand for manufactured goods could not offset a number of negative effects. These effects resulted from the direct displa ...
World Economic Outlook Update, January 2016
... contributed to tighter external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies. Headline inflation has broadly moved sideways in most countries, but with renewed declines in commodity prices and weakness in global manufacturing wei ...
... contributed to tighter external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies. Headline inflation has broadly moved sideways in most countries, but with renewed declines in commodity prices and weakness in global manufacturing wei ...
Investigating Business Cycle Synchronization in West Africa
... It has been argued that regions that have closer trade linkages tend to have more closely synchronised business cycles, therefore policies that enhance economic and trade integration between countries are likely to lead to more synchronised cycles and therefore make currency unions more advantageous ...
... It has been argued that regions that have closer trade linkages tend to have more closely synchronised business cycles, therefore policies that enhance economic and trade integration between countries are likely to lead to more synchronised cycles and therefore make currency unions more advantageous ...
NBER WORKING PAPER SERIES HONG KONG’S CURRENCY BOARD AND CHANGING MONETARY
... pound. The Exchange Fund would also buy the CIS from the banks if the latter decided to decrease the money supply. Thus, the monetary system had all the features of a currency board, with the exception that legal tenders were issued by authorized private banks rather than directly by the board. The ...
... pound. The Exchange Fund would also buy the CIS from the banks if the latter decided to decrease the money supply. Thus, the monetary system had all the features of a currency board, with the exception that legal tenders were issued by authorized private banks rather than directly by the board. The ...
Remarks by Chairman Ben S. Bernanke Before the Economic Club
... fraught with hazards, I would not interpret the currently very flat yield curve as indicating a significant economic slowdown to come, for several reasons. First, in previous episodes when an inverted yield curve was followed by recession, the level of interest rates was quite high, consistent with ...
... fraught with hazards, I would not interpret the currently very flat yield curve as indicating a significant economic slowdown to come, for several reasons. First, in previous episodes when an inverted yield curve was followed by recession, the level of interest rates was quite high, consistent with ...
exchange rate
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
... The Open Economy with Flexible Exchange Rates Factors that Affect Exchange Rates Purchasing Power Parity: The Law of One Price law of one price If the costs of transportation are small, the price of the same good in different countries should be roughly the same. purchasing-power-parity theory A the ...
instructions to candidates
... If initially there existed an excess supply of money in the economy, equilibrium in the money market would be restored through a. individuals buying bonds, causing the price of bonds to rise and the interest rate to fall. b. individuals selling bonds, causing the price of bonds to fall and the inter ...
... If initially there existed an excess supply of money in the economy, equilibrium in the money market would be restored through a. individuals buying bonds, causing the price of bonds to rise and the interest rate to fall. b. individuals selling bonds, causing the price of bonds to fall and the inter ...
Page 1 Econ 303: Intermediate Macroeconomics I Dr. Sauer Sample
... 24. Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the ISLM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; ...
... 24. Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the ISLM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; ...
The Monetary Policy Transmission Process: What Do We Know
... conditioned by their view on how serious the central bank is about achieving and maintaining price stability. Monetary policy actions (or, for that matter, inactions) will be interpreted by the public in this context, and have the potential to be a powerful and direct influence on prices. A central ...
... conditioned by their view on how serious the central bank is about achieving and maintaining price stability. Monetary policy actions (or, for that matter, inactions) will be interpreted by the public in this context, and have the potential to be a powerful and direct influence on prices. A central ...
March 14, 2012: The Not-So-Simple Arithmetic of Fiscal Policy in a
... ordinary times and in extraordinary times. Specifically, you speak of zeta, the fiscal drag coefficient, as being "future output lost... through distortionary taxes". As a matter of personal preference, I am not fond of the habit of economists to refer to taxes as distortionary -- it tends to imply ...
... ordinary times and in extraordinary times. Specifically, you speak of zeta, the fiscal drag coefficient, as being "future output lost... through distortionary taxes". As a matter of personal preference, I am not fond of the habit of economists to refer to taxes as distortionary -- it tends to imply ...
DIVERGENT INFLATION RATES BETWEEN MEMBERS OF THE EURO B
... under the Single European act and furthered by EMU will lead to a converging structure in production resulting in the convergence of sector patterns, increased intra-industry trade 15 and shocks being predominantly symmetric resulting in symmetric effects. While these consequences of trade integrati ...
... under the Single European act and furthered by EMU will lead to a converging structure in production resulting in the convergence of sector patterns, increased intra-industry trade 15 and shocks being predominantly symmetric resulting in symmetric effects. While these consequences of trade integrati ...
Chapter 32 Inflation and Growth: The Phillips Curve
... When unemployment and inflation were both falling in the 1990s, it was because aggregate supply was increasing at an unusually rapid rate-in response to a series of favorable supply shocks (low oil prices, advances in technology, strong U.S. dollar). This extraordinary economic performance does not ...
... When unemployment and inflation were both falling in the 1990s, it was because aggregate supply was increasing at an unusually rapid rate-in response to a series of favorable supply shocks (low oil prices, advances in technology, strong U.S. dollar). This extraordinary economic performance does not ...
About the ICP and PPPs
... The biggest challenge in international comparisons of economic aggregates is the conversion of national currency denominated values into a common currency. The literature on international economics supported by common sense indicates that cross-country comparisons that rely on market exchange rates ...
... The biggest challenge in international comparisons of economic aggregates is the conversion of national currency denominated values into a common currency. The literature on international economics supported by common sense indicates that cross-country comparisons that rely on market exchange rates ...
Insert title here
... Laura is a 40 year old investment banker who was laid off six months ago. She decided to switch careers and has spent those six months figuring out what she wants to do instead of applying for jobs in the banking field Tom is a 36 year old accountant who quit his job so he could go to ...
... Laura is a 40 year old investment banker who was laid off six months ago. She decided to switch careers and has spent those six months figuring out what she wants to do instead of applying for jobs in the banking field Tom is a 36 year old accountant who quit his job so he could go to ...
The effects of exchange rate fluctuations on economic activity in
... forecasts of the exchange rate. Recent experiences of currency crises have brought to the forefront the importance of anchoring agents’ forecasts in the design of an appropriate exchange rate policy. Hence, the theory aims to separate the effects of anticipated shifts in the exchange rate from unant ...
... forecasts of the exchange rate. Recent experiences of currency crises have brought to the forefront the importance of anchoring agents’ forecasts in the design of an appropriate exchange rate policy. Hence, the theory aims to separate the effects of anticipated shifts in the exchange rate from unant ...
Significance of Keynesian Legacy
... considered to be mainstream in the so-called standard textbooks of ‘advanced’ macroeconomics.2 Another legacy is the ‘Keynesian’ legacy in a broad sense, which is often considered to be out of fashion. In the ‘classical’ legacy, it is taken for granted that the full employment equilibrium will be au ...
... considered to be mainstream in the so-called standard textbooks of ‘advanced’ macroeconomics.2 Another legacy is the ‘Keynesian’ legacy in a broad sense, which is often considered to be out of fashion. In the ‘classical’ legacy, it is taken for granted that the full employment equilibrium will be au ...