Stephen J. Working OF INTEREST RATES
... on the variances of the interest rates. First there is a direct effect; given the parameters of the model, a larger variance in policy will translate to a larger variance in the rates. Secondly, by influencing private speculative behavior, it also has another indirect effect. This may either reinfor ...
... on the variances of the interest rates. First there is a direct effect; given the parameters of the model, a larger variance in policy will translate to a larger variance in the rates. Secondly, by influencing private speculative behavior, it also has another indirect effect. This may either reinfor ...
Fiscal Volatility Shocks and Economic Activity
... was little consensus among policymakers about the fiscal mix and timing going forward.2 In this paper, we investigate whether this increased uncertainty about fiscal policy has a detrimental impact on economic activity (following the literature, we use the term “uncertainty” as shorthand for what wo ...
... was little consensus among policymakers about the fiscal mix and timing going forward.2 In this paper, we investigate whether this increased uncertainty about fiscal policy has a detrimental impact on economic activity (following the literature, we use the term “uncertainty” as shorthand for what wo ...
NBER WORKING PAPER SERIES THE BARNETT CRITIQUE AFTER THREE DECADES:
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
... resolve the merits of simple-sum versus superlative indexes of money on the basis of goodnessof-fit criteria or have judged money not to be an important variable when a simple-sum measure alone was used in empirical work, the current paper shows that, with a model fully-specified at the level of ta ...
Economic Fluctuations, Unemployment, and Inflation
... 1. Suppose that the CPI was 150 at the end of last year and 157.5 at the end of this year. What was the inflation rate during the year? 2. If decision makers anticipate an inflation rate of 3% at the start of a year and prices rise by 7% during the year, this is an example of a. anticipated inflatio ...
... 1. Suppose that the CPI was 150 at the end of last year and 157.5 at the end of this year. What was the inflation rate during the year? 2. If decision makers anticipate an inflation rate of 3% at the start of a year and prices rise by 7% during the year, this is an example of a. anticipated inflatio ...
ESSAYS ON FINANCIAL REFORMS AND MONETARY POLICY IN MALAWI A Thesis
... appeared to be associated with depreciations of the exchange rate rather than the expected real appreciation. There is also evidence of limited impact of a positive aid shock on depreciation and inflation when RBM targets monetary aggregates compared to when the authorities use the Taylor rule and i ...
... appeared to be associated with depreciations of the exchange rate rather than the expected real appreciation. There is also evidence of limited impact of a positive aid shock on depreciation and inflation when RBM targets monetary aggregates compared to when the authorities use the Taylor rule and i ...
Monetary Policy, Part 2
... • Other ways to achieve central bank credibility: ¾ Increase central bank independence: • People are more likely to believe that the central bank is committed to keeping inflation low if the government cannot interfere with the central bank and cannot create a political business cycle. – Evidence sh ...
... • Other ways to achieve central bank credibility: ¾ Increase central bank independence: • People are more likely to believe that the central bank is committed to keeping inflation low if the government cannot interfere with the central bank and cannot create a political business cycle. – Evidence sh ...
Aggregate Supply, Aggregate Demand, and Inflation: Putting It All
... 6. When demand for labor and other resources is high, and that bids up wages, which in turn bids up prices as producers try to cover their higher cost of production, which then puts further upward pressure on wages as workers demand compensation for higher prices, etc., the result is what is called ...
... 6. When demand for labor and other resources is high, and that bids up wages, which in turn bids up prices as producers try to cover their higher cost of production, which then puts further upward pressure on wages as workers demand compensation for higher prices, etc., the result is what is called ...
chapter summary
... The opportunity cost of holding money is the higher interest forgone by not holding other financial assets instead. Along a given money demand curve, the quantity of money demanded relates inversely to the interest rate. The demand for money curve shifts rightward as a result of an increase in the p ...
... The opportunity cost of holding money is the higher interest forgone by not holding other financial assets instead. Along a given money demand curve, the quantity of money demanded relates inversely to the interest rate. The demand for money curve shifts rightward as a result of an increase in the p ...
35 - Mersin
... points of annual output that is lost in the process of reducing inflation by one percentage point. • An estimate of the sacrifice ratio is five. • To reduce inflation from about 10% in 1979-1981 to 4% would have required an estimated sacrifice of 30% of annual output! ...
... points of annual output that is lost in the process of reducing inflation by one percentage point. • An estimate of the sacrifice ratio is five. • To reduce inflation from about 10% in 1979-1981 to 4% would have required an estimated sacrifice of 30% of annual output! ...
Lecture 12
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
NBER WORXING PAPER SERIES CURRENT ACCOUNT AND BUDGET DEFICITS IN AN
... It is assumed for accounting simplicity that the government finances its budget deficits through external borrowing and does not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3 ...
... It is assumed for accounting simplicity that the government finances its budget deficits through external borrowing and does not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3 ...
DETERMINANTS OF U.S. PRIVATE FOREIGN DIRECT
... Developing nations in particular are employing the stock of FDI as a source of capital, technology, managerial know-how and other resources that are essential for sustainable and stable economic development and growth. This phenomenon was widespread during the early 1990s, as developing countries an ...
... Developing nations in particular are employing the stock of FDI as a source of capital, technology, managerial know-how and other resources that are essential for sustainable and stable economic development and growth. This phenomenon was widespread during the early 1990s, as developing countries an ...
File
... A major change in monetary policy allowed the Bank of England to be free to pursue its policy goals without direct political control. An economist studied how the British bond market reacted to the policy change by comparing the interest rates changes on two types of long-term bonds: bonds that are ...
... A major change in monetary policy allowed the Bank of England to be free to pursue its policy goals without direct political control. An economist studied how the British bond market reacted to the policy change by comparing the interest rates changes on two types of long-term bonds: bonds that are ...
Capital-Skill Complementarity and Economic Development
... of developing and developed countries from the Penn World Table (2006). We find that for a majority of the fastest growing economies capital deepening is an important source of output growth. We also find that capital deepening is often accompanied by increasing investment rates, a pattern that is v ...
... of developing and developed countries from the Penn World Table (2006). We find that for a majority of the fastest growing economies capital deepening is an important source of output growth. We also find that capital deepening is often accompanied by increasing investment rates, a pattern that is v ...
Basics of Engineering Economy
... As f and if increase, the P/A and P/F factors decrease, thus making the PW values smaller Moving debt to the future and paying with future (inflated) money seems financially ‘smart’, BUT … If cash is not available in the future, debt-laden people, companies and countries will suffer and may go ...
... As f and if increase, the P/A and P/F factors decrease, thus making the PW values smaller Moving debt to the future and paying with future (inflated) money seems financially ‘smart’, BUT … If cash is not available in the future, debt-laden people, companies and countries will suffer and may go ...
Chapter 1: Introduction
... Y means that the equilibrium nominal interest rate varies whenever real GDP Y varies. At each possible level of total income Y, there is a different curve showing money demand as a function of the nominal interest rate, as Figure 11.2 shows. With a fixed money supply, each of these money demand curv ...
... Y means that the equilibrium nominal interest rate varies whenever real GDP Y varies. At each possible level of total income Y, there is a different curve showing money demand as a function of the nominal interest rate, as Figure 11.2 shows. With a fixed money supply, each of these money demand curv ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... • They used inflation rate instead of the nominal wage increase. • Once this relationship is established, it made sense in the sixties to talk about the choice a government had. – Low inflation and high unemployment – High inflation and low unemployment Econ 202 Dr. Ugur Aker ...
... • They used inflation rate instead of the nominal wage increase. • Once this relationship is established, it made sense in the sixties to talk about the choice a government had. – Low inflation and high unemployment – High inflation and low unemployment Econ 202 Dr. Ugur Aker ...
Monetary Policy and European Unemployment
... actual structural characteristics of the labor and commodity markets are imbedded in the model, including market imperfections, stochastic variability in demand and supplies, the cost of gathering information about job vacancies and labor availabilities, the cost of mobility, and so on.” (Friedman 1 ...
... actual structural characteristics of the labor and commodity markets are imbedded in the model, including market imperfections, stochastic variability in demand and supplies, the cost of gathering information about job vacancies and labor availabilities, the cost of mobility, and so on.” (Friedman 1 ...
Simple and Robust Rules for Monetary Policy by
... include the simple three equation model in Taylor (1979), the multi-equation international models in the comparative studies by Bryant, Hooper, and Mann (1993), and the econometric models in robustness analyses of Levin, Wieland, and Williams (1999). More or less simultaneously practical experience ...
... include the simple three equation model in Taylor (1979), the multi-equation international models in the comparative studies by Bryant, Hooper, and Mann (1993), and the econometric models in robustness analyses of Levin, Wieland, and Williams (1999). More or less simultaneously practical experience ...
DETERMINANTS OF INFLATION IN MALAYSIA
... The main objective of this research study is to examine the factors that determine inflation in Malaysia. The relationship between macroeconomic factors namely money supply, unemployment rate, exchange rate, and oil price with inflation are studied. This research study covers annual data for the tim ...
... The main objective of this research study is to examine the factors that determine inflation in Malaysia. The relationship between macroeconomic factors namely money supply, unemployment rate, exchange rate, and oil price with inflation are studied. This research study covers annual data for the tim ...
On the Causes of the Increased Stability of the U.S. Economy
... deviation in the later period. This is precisely the pattern observed in the aggregate data, and it is matched in no sector other than durables. The volatility in the nondurables and structures sectors more closely follows the pattern of inflation volatility, being high in the middle period but pres ...
... deviation in the later period. This is precisely the pattern observed in the aggregate data, and it is matched in no sector other than durables. The volatility in the nondurables and structures sectors more closely follows the pattern of inflation volatility, being high in the middle period but pres ...
Defying Gravity: How Long Will Japanese Government Bond Prices
... rate for the next 10 years is assumed to jump to 4% (and going back to the benchmark case of 2% growth thereafter). Since the sustained TFP growth of 4% for 10 years is highly unlikely for Japan (and any developed economy), their finding suggests that the growth alone cannot stabilize the Japanese d ...
... rate for the next 10 years is assumed to jump to 4% (and going back to the benchmark case of 2% growth thereafter). Since the sustained TFP growth of 4% for 10 years is highly unlikely for Japan (and any developed economy), their finding suggests that the growth alone cannot stabilize the Japanese d ...
An Introduction to Basic Macroeconomic Markets
... price level & quantity of output after decision makers have had sufficient time to adjust their prior commitments where possible. • LRAS is related to the economy's production possibilities constraint. • A higher price level does not loosen the constraints imposed by the economy's resource base, lev ...
... price level & quantity of output after decision makers have had sufficient time to adjust their prior commitments where possible. • LRAS is related to the economy's production possibilities constraint. • A higher price level does not loosen the constraints imposed by the economy's resource base, lev ...
Phillip`s Curve, Unemployment and Inflation tradeoff
... – The public – did not believe them • When he announced monetary policy to reduce inflation ...
... – The public – did not believe them • When he announced monetary policy to reduce inflation ...
CAPITAL FLOWS AND THEIR IMPLICATION FOR CENTRAL BANK
... IMF staffs’ report (January 2007) documented that the impact of the BOM’s intervention on the market rate is limited. The BOM’s interventions are atypical of central banks’ interventions, whereby the central banks buy or sell foreign exchange in order to affect the exchange rate level. Nevertheless, ...
... IMF staffs’ report (January 2007) documented that the impact of the BOM’s intervention on the market rate is limited. The BOM’s interventions are atypical of central banks’ interventions, whereby the central banks buy or sell foreign exchange in order to affect the exchange rate level. Nevertheless, ...