Chapter 22 - The short-run treade-off between inflation and unemployment
... – 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 ...
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 ...
Determining the influence of oil and gas rent on the efficiency of
... when competitiveness of the sectors decreases. Fourthly, the government is tested by economic populism and corruption. Existence of considerable financial resources leads to increasing strength of lobbist activity. It is harder and harder for government to resist this pressure, and eventually the bu ...
... when competitiveness of the sectors decreases. Fourthly, the government is tested by economic populism and corruption. Existence of considerable financial resources leads to increasing strength of lobbist activity. It is harder and harder for government to resist this pressure, and eventually the bu ...
interest rate - Universität Bamberg
... declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices and wages • All markets contribute to eliminate external i ...
... declines, interest rate increases, which attracts capital • Over time, if a country is in short supply of gold money supply stringency creates increasing interest rates, growth slow-down, higher unemployment and a downward pressure on prices and wages • All markets contribute to eliminate external i ...
Phillips Curve - Webarchiv ETHZ / Webarchive ETH
... People base their expectations of future inflation on recently observed inflation. rational expectations: People base their expectations on all available ...
... People base their expectations of future inflation on recently observed inflation. rational expectations: People base their expectations on all available ...
Government Maturity Structure Shocks Alexandre Corhay Howard Kung Gonzalo Morales
... long-term Treasuries while excess reserves expanded dramatically.1 The series of open market operations between 2008 and 2014 reduced the average duration of U.S. government liabilities by over 20% (from 4.6 years to 3.6 years). While there is some empirical support for the effectiveness of these po ...
... long-term Treasuries while excess reserves expanded dramatically.1 The series of open market operations between 2008 and 2014 reduced the average duration of U.S. government liabilities by over 20% (from 4.6 years to 3.6 years). While there is some empirical support for the effectiveness of these po ...
Federal Reserve Transparency and Financial Market Forecasts of Short-Term Interest Rates
... risks” to its economic outlook in 1999, and began releasing individual votes of Committee members in 2002, to name just a few examples (see Table 1 for additional examples). Yet despite the apparent international consensus that increased central bank transparency conveys economic benefits, there is v ...
... risks” to its economic outlook in 1999, and began releasing individual votes of Committee members in 2002, to name just a few examples (see Table 1 for additional examples). Yet despite the apparent international consensus that increased central bank transparency conveys economic benefits, there is v ...
expectations of inflation
... 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 ...
Romania - The Bleyzer Foundation
... sector will also benefit from large infrastructure and motorway projects planned by the government during the summer/fall of this year (e.g. the upgrade of Constanta railway station, scheduled for this fall; construction of Brasov-Bors motorway, started in early summer). In June, industrial output g ...
... sector will also benefit from large infrastructure and motorway projects planned by the government during the summer/fall of this year (e.g. the upgrade of Constanta railway station, scheduled for this fall; construction of Brasov-Bors motorway, started in early summer). In June, industrial output g ...
Chapter 13 - An Introduction to International Economics
... account must by negative (positive) If the capital/financial and official reserve transaction accounts are both positive (negative), then the current account must be negative (positive) © Kenneth A. Reinert, Cambridge University Press 2012 ...
... account must by negative (positive) If the capital/financial and official reserve transaction accounts are both positive (negative), then the current account must be negative (positive) © Kenneth A. Reinert, Cambridge University Press 2012 ...
IOSR Journal of Business and Management (IOSR-JBM)
... the result is usually inflation. He added that high inflation rate has adverse effect on the economy and results in steady fall in G.D.P. Having accepted the results of the literature he reviewed, he carried out his own tests using co-integration and causality tests. He came to the same conclusion t ...
... the result is usually inflation. He added that high inflation rate has adverse effect on the economy and results in steady fall in G.D.P. Having accepted the results of the literature he reviewed, he carried out his own tests using co-integration and causality tests. He came to the same conclusion t ...
How Powerful Is Monetary Policy in the Long Run?
... academic economists and most Federal Reserve policymakers believe that monetary policy is quite powerful in the short run, they also believe that it is virtually powerless in the long run. Although opinion on this subject is far from uniform, most economists seem to believe that monetary policy can ...
... academic economists and most Federal Reserve policymakers believe that monetary policy is quite powerful in the short run, they also believe that it is virtually powerless in the long run. Although opinion on this subject is far from uniform, most economists seem to believe that monetary policy can ...
RESTRICTEDCode
... Table I.3 summarizes the major socio economic indicators in Guyana. Guyana's two most striking social statistics are the decline in per capita GDP (at factor cost), which fell by 1.4% between 1997 and 2002, and the relatively stable population size. Guyana's population was estimated at 774,800 perso ...
... Table I.3 summarizes the major socio economic indicators in Guyana. Guyana's two most striking social statistics are the decline in per capita GDP (at factor cost), which fell by 1.4% between 1997 and 2002, and the relatively stable population size. Guyana's population was estimated at 774,800 perso ...
Interest Rate Rules and Equilibrium Stability
... In this paper, I show how introducing deep habits into a model affect the performance of simple interest rate rules, and assess whether the Taylor principle is a sufficient condition for determinacy. I analyze a standard new Keynesian model economy, and in this framework allow for households to exhi ...
... In this paper, I show how introducing deep habits into a model affect the performance of simple interest rate rules, and assess whether the Taylor principle is a sufficient condition for determinacy. I analyze a standard new Keynesian model economy, and in this framework allow for households to exhi ...
Was the New Deal Contractionary?
... and Woodford (2003), I show that excessive deflation will follow from persistent deflationary shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would ...
... and Woodford (2003), I show that excessive deflation will follow from persistent deflationary shocks that imply that a negative real interest rate is needed for the efficient equilbrium. In this case a central bank, having cut the interest rate to zero, cannot accommodate the shocks because that would ...
Fiscal Consequences for Mexico of Adopting the Dollar
... For the purposes of thinking about dollarization, the main point to emerge from (4) is that it implies a set of tradeoffs for fiscal policy in the face of a surprise disturbance to current and expected future levels of the right-hand side variables. Severe, sudden fiscal stress can arise from war, n ...
... For the purposes of thinking about dollarization, the main point to emerge from (4) is that it implies a set of tradeoffs for fiscal policy in the face of a surprise disturbance to current and expected future levels of the right-hand side variables. Severe, sudden fiscal stress can arise from war, n ...
34 The Influence of Monetary and Fiscal Policy on Aggregate Demand
... in such a way as to minimize the fluctuations in output and to maintain output at the long-run natural rate. As such, activist stabilization policy is sometimes called discretionary policy to distinguish it from automatic stabilizers. It is also called aggregate demand management because monetary an ...
... in such a way as to minimize the fluctuations in output and to maintain output at the long-run natural rate. As such, activist stabilization policy is sometimes called discretionary policy to distinguish it from automatic stabilizers. It is also called aggregate demand management because monetary an ...
A survey of the world economy September 16th 2006
... strong growth and heavy government borrowing. Oil prices have tripled since 2002, yet global growth remains robust and ination, though rising, is still relatively low. House prices, however, have been soaring in many countries. Puzzling it out This survey will argue that all of these puzzles can be ...
... strong growth and heavy government borrowing. Oil prices have tripled since 2002, yet global growth remains robust and ination, though rising, is still relatively low. House prices, however, have been soaring in many countries. Puzzling it out This survey will argue that all of these puzzles can be ...
US, China and Europe`s imbalances
... – USA, East Asia (China), and two Eurozone countries • I will have to split the analysis into two models, which were previously built, each with three countries: – The first one contains the USA, on a flexible exchange rate with Europe, itself divided into two countries. – The second model has the U ...
... – USA, East Asia (China), and two Eurozone countries • I will have to split the analysis into two models, which were previously built, each with three countries: – The first one contains the USA, on a flexible exchange rate with Europe, itself divided into two countries. – The second model has the U ...
What can monetary policy do?
... Cochrane argues that these properties of some models at the ZLB depend on expectation dynamics that are somewhat ad-hoc and not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and un ...
... Cochrane argues that these properties of some models at the ZLB depend on expectation dynamics that are somewhat ad-hoc and not very plausible. Cochrane’s critique is that the paradoxes of the NK models around the ZLB (discontinuities with respect to the degree of price stickiness; very large and un ...
Chapter X: template (1 - The Good, the Bad and the Economist
... better information and thus the ability to cope with inflation by finding assets which are relatively secure in value-retention, such as land and other fixed assets. (Type 4 Smaller heading) Negative effects on growth Inflation causes an increase in interest rates and will therefore have a negative ...
... better information and thus the ability to cope with inflation by finding assets which are relatively secure in value-retention, such as land and other fixed assets. (Type 4 Smaller heading) Negative effects on growth Inflation causes an increase in interest rates and will therefore have a negative ...
The Effect of Macroeconomic Variables on Market Risk
... This paper contains a short overview on the literature that has been identified as potentially interesting for being used in writing the thesis on the topic defined above. The choice of the macroeconomic variables was not sporadic. It was motivated by number of articles that have investigated the ma ...
... This paper contains a short overview on the literature that has been identified as potentially interesting for being used in writing the thesis on the topic defined above. The choice of the macroeconomic variables was not sporadic. It was motivated by number of articles that have investigated the ma ...
economics
... This figure assumes a price level of 100 for the year 2020 and charts possible outcomes for the year 2021. Panel (a) shows the model of aggregate demand and aggregate supply. If aggregate demand is low, the economy is at point A; output is low (15,000), and the price level is low (102). If aggregate ...
... This figure assumes a price level of 100 for the year 2020 and charts possible outcomes for the year 2021. Panel (a) shows the model of aggregate demand and aggregate supply. If aggregate demand is low, the economy is at point A; output is low (15,000), and the price level is low (102). If aggregate ...
Liquidity Traps and the Stability of Money Demand: Is Japan Really
... Recent theoretical contributions on liquidity traps also suggest that the economy at the zero interest rate bound has important implications in terms of economic dynamics. For instance, Buiter and Panigirtozoglou (1999) develop a dynamic framework where monetary policy is assumed to follow an active ...
... Recent theoretical contributions on liquidity traps also suggest that the economy at the zero interest rate bound has important implications in terms of economic dynamics. For instance, Buiter and Panigirtozoglou (1999) develop a dynamic framework where monetary policy is assumed to follow an active ...