Benefits and Spillovers of Greater Competition in Europe
... This implies that in a competitive economy (large θ) prices must move in tandem with the shocks affecting marginal costs, even though such flexibility entails large adjustment costs. Instead, if price setters have strong monopoly power (θ is close to one, its minimum value), they can charge a high a ...
... This implies that in a competitive economy (large θ) prices must move in tandem with the shocks affecting marginal costs, even though such flexibility entails large adjustment costs. Instead, if price setters have strong monopoly power (θ is close to one, its minimum value), they can charge a high a ...
The Global Financial Crisis and the Developing World
... economies, creates a major dilemma for the central banks and monetary authorities of these economies. The belief that any inflationary expectation could be dispelled timely and successfully by adopting an institutional framework of inflation targeting faced a severe test. Inflation targeting with fi ...
... economies, creates a major dilemma for the central banks and monetary authorities of these economies. The belief that any inflationary expectation could be dispelled timely and successfully by adopting an institutional framework of inflation targeting faced a severe test. Inflation targeting with fi ...
Central banks and the global debt overhang
... Good morning, ladies and gentlemen. It is an honour and a pleasure to be able to address you on the occasion of the 50th SEACEN Governors’ Conference in Port Moresby. For this, I thank Governor Bakani, all SEACEN Governors and the conference organisers. In my address, I will focus on what is a centr ...
... Good morning, ladies and gentlemen. It is an honour and a pleasure to be able to address you on the occasion of the 50th SEACEN Governors’ Conference in Port Moresby. For this, I thank Governor Bakani, all SEACEN Governors and the conference organisers. In my address, I will focus on what is a centr ...
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... particular variables that may influence current values of farmland. The revenue generating aspects of farmland are well recognized as being important factors in determining farmland values. Returns to farmland include income from the production and sale of farm products as well as changes in the val ...
... particular variables that may influence current values of farmland. The revenue generating aspects of farmland are well recognized as being important factors in determining farmland values. Returns to farmland include income from the production and sale of farm products as well as changes in the val ...
NBER WORKING PAPER SERIES BENEFITS AND SPILLOVERS OF GREATER COMPETITION IN EUROPE:
... This implies that in a competitive economy (large θ) prices must move in tandem with the shocks affecting marginal costs, even though such flexibility entails large adjustment costs. Instead, if price setters have strong monopoly power (θ is close to one, its minimum value), they can charge a high a ...
... This implies that in a competitive economy (large θ) prices must move in tandem with the shocks affecting marginal costs, even though such flexibility entails large adjustment costs. Instead, if price setters have strong monopoly power (θ is close to one, its minimum value), they can charge a high a ...
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... The spread of the GDP per capita is said to be outstanding among the EU countries owing to the fact that considerable differences characterize the performance of certain countries (Table 1). Luxembourg has the highest index among the 28 countries. This performance means more than two and a half high ...
... The spread of the GDP per capita is said to be outstanding among the EU countries owing to the fact that considerable differences characterize the performance of certain countries (Table 1). Luxembourg has the highest index among the 28 countries. This performance means more than two and a half high ...
Modern Macroeconomics and Monetary Policy
... • Proper timing of monetary policy is not easy: • While the Fed can institute policy changes rapidly, there will be a time lag before the change exerts much impact on output & prices. • This time lag is estimated to be 6 to 18 months in the case of output and perhaps as much as 36 months before ther ...
... • Proper timing of monetary policy is not easy: • While the Fed can institute policy changes rapidly, there will be a time lag before the change exerts much impact on output & prices. • This time lag is estimated to be 6 to 18 months in the case of output and perhaps as much as 36 months before ther ...
On the Nominal Interest Rate Yield Response to Net Government
... Jacksonville University Abstract: This study provides current empirical evidence on the impact of net U.S. government borrowing (budget deficits) on the nominal interest rate yield on ten-year Treasury notes. The model includes an ex ante real short-term real interest rate yield, an ex ante real lon ...
... Jacksonville University Abstract: This study provides current empirical evidence on the impact of net U.S. government borrowing (budget deficits) on the nominal interest rate yield on ten-year Treasury notes. The model includes an ex ante real short-term real interest rate yield, an ex ante real lon ...
CH_14_13th
... • Proper timing of monetary policy is not easy: • While the Fed can institute policy changes rapidly, there will be a time lag before the change exerts much impact on output & prices. • This time lag is estimated to be 6 to 18 months in the case of output and perhaps as much as 36 months before ther ...
... • Proper timing of monetary policy is not easy: • While the Fed can institute policy changes rapidly, there will be a time lag before the change exerts much impact on output & prices. • This time lag is estimated to be 6 to 18 months in the case of output and perhaps as much as 36 months before ther ...
Monetary Policy in Fiji Monetary Policy in Fiji
... all other central banks, is tasked with managing the overall supply of money in the economy. This process is known as monetary policy. The decisions that the RBF makes in formulating monetary policy are predominantly aimed at improving the overall performance of the economy via the achievement of it ...
... all other central banks, is tasked with managing the overall supply of money in the economy. This process is known as monetary policy. The decisions that the RBF makes in formulating monetary policy are predominantly aimed at improving the overall performance of the economy via the achievement of it ...
A Working Solution to the Question of Nominal GDP
... M1 and MZM are drawn from the Federal Reserve Bank of St. Louis’ FRED database; Anderson and Jones (2011) describe their construction in detail. With quite similar results, not shown, we also replicated the analysis using Anderson and Jones’ Divisia M2 series, as well as the much broader, Divisia M ...
... M1 and MZM are drawn from the Federal Reserve Bank of St. Louis’ FRED database; Anderson and Jones (2011) describe their construction in detail. With quite similar results, not shown, we also replicated the analysis using Anderson and Jones’ Divisia M2 series, as well as the much broader, Divisia M ...
Lecture 2 Open Economy Macroeconomics: IS
... more goods are likely to hold more money. • When prices P are high the demand for money is high since people need more money to complete their transactions. • Higher total output implies higher transaction demand. So for given level of nominal money supply, high demand implies the interest rate that ...
... more goods are likely to hold more money. • When prices P are high the demand for money is high since people need more money to complete their transactions. • Higher total output implies higher transaction demand. So for given level of nominal money supply, high demand implies the interest rate that ...
A socioeconomics approach
... are quickly incorporated in expectations and thus, in market behavior. For example, when the central bank raises nominal interest rates to fight inflation, if there are consistent expectations, markets quickly lower their inflation forecasts. This makes the real interest rate (nominal rate less expe ...
... are quickly incorporated in expectations and thus, in market behavior. For example, when the central bank raises nominal interest rates to fight inflation, if there are consistent expectations, markets quickly lower their inflation forecasts. This makes the real interest rate (nominal rate less expe ...
NBER WORKING PAPER SERIES A MODEL OF SECULAR STAGNATION Gauti B. Eggertsson
... natural rate of interest of arbitrary persistence that can, therefore, explain long-lasting slumps. This is particularly relevant when considering the Great Depression in the US (where the short term interest rate started to drop in 1929 only to finally start rising again in 1947) or current day Jap ...
... natural rate of interest of arbitrary persistence that can, therefore, explain long-lasting slumps. This is particularly relevant when considering the Great Depression in the US (where the short term interest rate started to drop in 1929 only to finally start rising again in 1947) or current day Jap ...
Balance Sheet Effects, Bailout Guarantees and Financial Crises (2004, Review of Economic Studies)
... is profitable and the increase in cash flow stimulates investment demand for N-goods. Future prices are in turn high because higher investment increases future output and cash flow and so on. This “self-feeding” investment boom is sustainable because the eventual increase in demand from other sector ...
... is profitable and the increase in cash flow stimulates investment demand for N-goods. Future prices are in turn high because higher investment increases future output and cash flow and so on. This “self-feeding” investment boom is sustainable because the eventual increase in demand from other sector ...
Inflation Cycles
... If the oil producers raise the price of oil to try to keep its relative price higher, and the Fed responds by increasing the quantity of money, a process of cost-push inflation continues. © 2012 Pearson Education ...
... If the oil producers raise the price of oil to try to keep its relative price higher, and the Fed responds by increasing the quantity of money, a process of cost-push inflation continues. © 2012 Pearson Education ...
File
... unemployment will fall below the natural rate. That’s why we often see an association between increases in the inflation rate and a decrease in the unemployment rate. Table 16.2 summarizes the key points about the expectations Phillips curve. Two broad classes of theories attempt to explain how the ...
... unemployment will fall below the natural rate. That’s why we often see an association between increases in the inflation rate and a decrease in the unemployment rate. Table 16.2 summarizes the key points about the expectations Phillips curve. Two broad classes of theories attempt to explain how the ...
What Is Price Level Stability?
... The ideal feedback rule will keep aggregate demand close to AD0 so that the price level remains almost constant and real GDP remains close to potential GDP. A feedback policy might be implemented badly with greater fluctuations in the price level and real GDP than with a fixed rule. ...
... The ideal feedback rule will keep aggregate demand close to AD0 so that the price level remains almost constant and real GDP remains close to potential GDP. A feedback policy might be implemented badly with greater fluctuations in the price level and real GDP than with a fixed rule. ...
FINANCIAL STABILITY AND MONETARY POLICY: A R EDUCED
... The second school of thought takes the view that asset prices are often subject to bubbles and crashes. These can have strong pro-cyclical effects and can also affect the stability of financial markets. Since central banks are responsible for financial stability, they should monitor asset prices and ...
... The second school of thought takes the view that asset prices are often subject to bubbles and crashes. These can have strong pro-cyclical effects and can also affect the stability of financial markets. Since central banks are responsible for financial stability, they should monitor asset prices and ...
What Is Price Level Stability?
... The ideal feedback rule will keep aggregate demand close to AD0 so that the price level remains almost constant and real GDP remains close to potential GDP. A feedback policy might be implemented badly with greater fluctuations in the price level and real GDP than with a fixed rule. ...
... The ideal feedback rule will keep aggregate demand close to AD0 so that the price level remains almost constant and real GDP remains close to potential GDP. A feedback policy might be implemented badly with greater fluctuations in the price level and real GDP than with a fixed rule. ...
83081100I_en.pdf
... higher public spending and lower interest rates, combined with a policy of macroeconomic balance and price and real exchange-rate stability (via a dirty float), would open the way for higher private-sector investment. Nonetheless, total gross investment, which had fallen by 26% in 1997-2001, grew by ...
... higher public spending and lower interest rates, combined with a policy of macroeconomic balance and price and real exchange-rate stability (via a dirty float), would open the way for higher private-sector investment. Nonetheless, total gross investment, which had fallen by 26% in 1997-2001, grew by ...
Robert NBER WORKING PAPER SERIES PUBLIC FINANCE IN MODELS OF ECONOMIC GROWTH
... The recent literature on endogenous economic growth allows for effects of fiscal policy on long-term growth. If the social rate of return on investment exceeds the private return, then tax policies that encourage investment can raise the growth rate and levels of utility. An excess of the social ret ...
... The recent literature on endogenous economic growth allows for effects of fiscal policy on long-term growth. If the social rate of return on investment exceeds the private return, then tax policies that encourage investment can raise the growth rate and levels of utility. An excess of the social ret ...
will there be deflation and current account surpluses?
... meaning that any attempt to raise employment by resorting to monetary policy will eventually end in inflation; (vi) contrariwise, low inflation levels are not associated with high unemployment rates; (vii) thus, inflation is always a monetary phenomenon and the long-term monetary policy objective mu ...
... meaning that any attempt to raise employment by resorting to monetary policy will eventually end in inflation; (vi) contrariwise, low inflation levels are not associated with high unemployment rates; (vii) thus, inflation is always a monetary phenomenon and the long-term monetary policy objective mu ...