Can, Or Should, A Central Bank InFlation Target?
... full employment, and (2) to ensure the liquidity and therefore the stability of the major financial markets in the economic system—what then is the role of the central bank in fighting inflation in Keynes’s general theory model of a money-using production economy? To comprehend the basic inflation p ...
... full employment, and (2) to ensure the liquidity and therefore the stability of the major financial markets in the economic system—what then is the role of the central bank in fighting inflation in Keynes’s general theory model of a money-using production economy? To comprehend the basic inflation p ...
Monetary and Credit Targets in an Open Economy
... Reserve, which, in the presence of new instability in the financial markets, officially abandoned its M1 target in October 1982 and adopted in February 1983 a range for the rate of growth of "total domestic nonfinancial debt."~ The fact that many countries have been using credit aggregates as target ...
... Reserve, which, in the presence of new instability in the financial markets, officially abandoned its M1 target in October 1982 and adopted in February 1983 a range for the rate of growth of "total domestic nonfinancial debt."~ The fact that many countries have been using credit aggregates as target ...
Fulltext: english,
... Russian economy is located on a natural resources-rich area. This reality significantly influences economic development and policy of the country. In such a situation the economy is vulnerable to the large extent to commodities demand fluctuations on external market, especially, to the price (quotes ...
... Russian economy is located on a natural resources-rich area. This reality significantly influences economic development and policy of the country. In such a situation the economy is vulnerable to the large extent to commodities demand fluctuations on external market, especially, to the price (quotes ...
2002 Japan Conference: A Summary of the Papers
... (1990a) examine the shift toward nonbank financing for a sample of 109 firms, and find higher sensitivity for firms that decreased their reliance on bank debt. This suggests that the net benefit to firms of bank affiliation may ...
... (1990a) examine the shift toward nonbank financing for a sample of 109 firms, and find higher sensitivity for firms that decreased their reliance on bank debt. This suggests that the net benefit to firms of bank affiliation may ...
The Impact of Foreign Interest Rates on the Economy
... percentage point decline in annual GDP growth in pegged countries as opposed to no change in countries with floats. Turning to the channels underlying this result, we find that base rates have an impact on domestic interest rates and the impact is much stronger for pegs, while they do not appear to ...
... percentage point decline in annual GDP growth in pegged countries as opposed to no change in countries with floats. Turning to the channels underlying this result, we find that base rates have an impact on domestic interest rates and the impact is much stronger for pegs, while they do not appear to ...
Problem Set 1
... of capital, both of which result in a downward shift of the IS curve. The new equilibrium is located at the intersection of the new IS curve and the new FE line. If, as shown in the figure, this intersection lies above and to the left of the original LM curve, the price level will increase and shift ...
... of capital, both of which result in a downward shift of the IS curve. The new equilibrium is located at the intersection of the new IS curve and the new FE line. If, as shown in the figure, this intersection lies above and to the left of the original LM curve, the price level will increase and shift ...
Mark scheme - Unit F585 - The global economy - June
... Latvia, is affected by its decision to operate a fixed exchange rate regime. Examples of responses in this level which explain the benefits only of a fixed exchange rate regime for macroeconomic performance • Fixed exchange rates may improve macroeconomic performance by reducing exchange rate uncert ...
... Latvia, is affected by its decision to operate a fixed exchange rate regime. Examples of responses in this level which explain the benefits only of a fixed exchange rate regime for macroeconomic performance • Fixed exchange rates may improve macroeconomic performance by reducing exchange rate uncert ...
Answers to Questions: Chapter 4
... demand for money equal to the fixed money supply. At a lower interest rate, a smaller income maintains equilibrium in the money market. 6. a. This situation is a point to the left of the IS and LM curves. Planned spending exceeds income at any point to the left of the IS curve. There is an excess s ...
... demand for money equal to the fixed money supply. At a lower interest rate, a smaller income maintains equilibrium in the money market. 6. a. This situation is a point to the left of the IS and LM curves. Planned spending exceeds income at any point to the left of the IS curve. There is an excess s ...
A simple framework for international monetary policy analysis
... In this paper we revisit these classic issues by developing a simple two-country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this ...
... In this paper we revisit these classic issues by developing a simple two-country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this ...
The Danish Referendum on Economic and
... supply-and sales material directed towards the euro area and sales via the Internet. The costs of adapting should not be overemphasised. Business considerations will determine the extent of adaptation. The consequences for import and export enterprises will, however, be significantly larger than for ...
... supply-and sales material directed towards the euro area and sales via the Internet. The costs of adapting should not be overemphasised. Business considerations will determine the extent of adaptation. The consequences for import and export enterprises will, however, be significantly larger than for ...
Empirical Analysis on the Validity of Chinese Monetary Policy under
... First, the practical money demand is higher than the region of the virtual value of the virtual value theoretical model occurred in 2007 and 2008. In early 2007, American subprime mortgage crisis began to appear, but had very little influence on China. In the second half of 2007, the financial storm ...
... First, the practical money demand is higher than the region of the virtual value of the virtual value theoretical model occurred in 2007 and 2008. In early 2007, American subprime mortgage crisis began to appear, but had very little influence on China. In the second half of 2007, the financial storm ...
1. O verview
... net exports were the main contributor to growth. Thus, the current account balance improved substantially in 2014. Data released for the first quarter of 2015 point to a loss of pace in economic activity driven by both domestic and external demand. Following the sluggish first quarter, economic acti ...
... net exports were the main contributor to growth. Thus, the current account balance improved substantially in 2014. Data released for the first quarter of 2015 point to a loss of pace in economic activity driven by both domestic and external demand. Following the sluggish first quarter, economic acti ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... honest effort to correct the deficit. Some among them argued that Brazilian inflation was different from that elsewhere and that the budget deficit did not have a role in it; inflation was purely inertial and all that was needed to stop it was a price freeze and some formulae to recalculate wages, r ...
... honest effort to correct the deficit. Some among them argued that Brazilian inflation was different from that elsewhere and that the budget deficit did not have a role in it; inflation was purely inertial and all that was needed to stop it was a price freeze and some formulae to recalculate wages, r ...
Chapter 16 power point - The College of Business UNR
... to the economy to deal with the high unemployment, what would it do? What would be the problem of acting this way? Suppose that the Fed reacts to a series of negative real shocks by increasing AD every time. What will happen to the inflation rate? ...
... to the economy to deal with the high unemployment, what would it do? What would be the problem of acting this way? Suppose that the Fed reacts to a series of negative real shocks by increasing AD every time. What will happen to the inflation rate? ...
Discussion by J. Imbs
... Sector volatility higher and sector productivity lower in poor countries (NOT controlling for aggregates – could be higher/lower across all sectors) Labor productivity higher, less volatile in sectors that, in the US, use capital inputs originating from a large number of other sectors. ...
... Sector volatility higher and sector productivity lower in poor countries (NOT controlling for aggregates – could be higher/lower across all sectors) Labor productivity higher, less volatile in sectors that, in the US, use capital inputs originating from a large number of other sectors. ...
Chap31
... employers have the time to adjust fully to any unexpected change in aggregate demand As long as prices and wages are flexible, the rate of unemployment, in the long run, is independent of the rate of inflation Policy makers can only choose among alternative rates of inflation ...
... employers have the time to adjust fully to any unexpected change in aggregate demand As long as prices and wages are flexible, the rate of unemployment, in the long run, is independent of the rate of inflation Policy makers can only choose among alternative rates of inflation ...
A Note on Macroeconomic Policy that is Good for the Poor
... better. The medium-term benefits of good macro policy for building a middle class argue all the more for what are sometimes painful macro decisions in the short run. Defining the middle class. Inclusive growth implies an increase in the proportion of people in the middle class (implying some exit of ...
... better. The medium-term benefits of good macro policy for building a middle class argue all the more for what are sometimes painful macro decisions in the short run. Defining the middle class. Inclusive growth implies an increase in the proportion of people in the middle class (implying some exit of ...
Chapter 15 Macro Stabilization Policy
... the long-run growth rate of real GDP. 2. The federal budget should be balanced over the business cycle. Surpluses in the recovery phase should equal deficits in the recession phase. C) Nonactivists make several arguments for their position. 1. They claim that the economy is naturally stable and that ...
... the long-run growth rate of real GDP. 2. The federal budget should be balanced over the business cycle. Surpluses in the recovery phase should equal deficits in the recession phase. C) Nonactivists make several arguments for their position. 1. They claim that the economy is naturally stable and that ...
Mankiw 6e PowerPoints
... In the most recent recession, however, the average reached about 41 weeks, and it still stands at more than 36 weeks. In other words, after more than four years of recovery, the economy still has an unprecedented number of long-term unemployed. Some economists believe that long-term unemployment lea ...
... In the most recent recession, however, the average reached about 41 weeks, and it still stands at more than 36 weeks. In other words, after more than four years of recovery, the economy still has an unprecedented number of long-term unemployed. Some economists believe that long-term unemployment lea ...
NBER WORKING PAPER SERIES MONETARY POLICIES FOR DEVELOPING COUNTRIES: Haizhou Huang
... assumed away in this paper. It is sometimes thought that a similar type of inflation target would benefit developing countries as well. For example, the IMF has advised several transition and emerging market economies to adopt inflation targeting with a similarly narrow range. The empirical evidence ...
... assumed away in this paper. It is sometimes thought that a similar type of inflation target would benefit developing countries as well. For example, the IMF has advised several transition and emerging market economies to adopt inflation targeting with a similarly narrow range. The empirical evidence ...
EXPORT DYNAMISM AND GROWTH IN CHILE SINCE THE 1980s Ricardo Ffrench-Davis
... If we are to draw any conclusions from the trade reform processes experienced by Chile, one of them must certainly be that the second reform program yielded better results than the first (chap. 3; and ECLAC, 1998, chap. V; Ffrench-Davis, Leiva and Madrid, 1993). ...
... If we are to draw any conclusions from the trade reform processes experienced by Chile, one of them must certainly be that the second reform program yielded better results than the first (chap. 3; and ECLAC, 1998, chap. V; Ffrench-Davis, Leiva and Madrid, 1993). ...
Practice Questions-ch28
... 14) According to real business cycle theory, if the Bank of Canada increases the quantity of money when real GDP decreases, real GDP A) will decrease due to the inefficiencies introduced into production as a result. B) will increase but only temporarily. C) and the price level will both be unaffecte ...
... 14) According to real business cycle theory, if the Bank of Canada increases the quantity of money when real GDP decreases, real GDP A) will decrease due to the inefficiencies introduced into production as a result. B) will increase but only temporarily. C) and the price level will both be unaffecte ...
The European Central Bank — History, Structure, and the Decision
... financial system will go under. Another reason why banks should be regulated is because it increases consumer confidence so that they are more inclined to invest in what they perceive to be a more secure financial system. The ECB is not obligated to act as a lender of last resort but large integrate ...
... financial system will go under. Another reason why banks should be regulated is because it increases consumer confidence so that they are more inclined to invest in what they perceive to be a more secure financial system. The ECB is not obligated to act as a lender of last resort but large integrate ...
Course Outline
... a) frictional unemployment includes people who are temporarily between jobs. They may have quit one job to find another, or they could be trying to find the best opportunity after graduating from high school or college. b) Cyclical unemployment rises in a recession. For example, too little spending ...
... a) frictional unemployment includes people who are temporarily between jobs. They may have quit one job to find another, or they could be trying to find the best opportunity after graduating from high school or college. b) Cyclical unemployment rises in a recession. For example, too little spending ...