policy platform - Research Center SAFE
... banks. The difficulties started in August 2007 when severe tensions erupted in money markets in many, if not most, advanced economies. The financial turmoil was sharply amplified following the collapse of Lehman Brothers in September 2008, which triggered the deepest recession in the developed econo ...
... banks. The difficulties started in August 2007 when severe tensions erupted in money markets in many, if not most, advanced economies. The financial turmoil was sharply amplified following the collapse of Lehman Brothers in September 2008, which triggered the deepest recession in the developed econo ...
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... Savers are hurt when unexpected inflation _reduces___ returns on investment. If inflation is expected, then savers will be compensated with higher rates of return, which offsets the inflation effect. The higher rate reflects an inflation ...
... Savers are hurt when unexpected inflation _reduces___ returns on investment. If inflation is expected, then savers will be compensated with higher rates of return, which offsets the inflation effect. The higher rate reflects an inflation ...
The Phillips curve -- is there a trade
... • When more expansionary policies were pursued during both the ’70-’73 and ’74-’82 periods, higher rates of both inflation and unemployment occurred. • In contrast, lower rates of unemployment have accompanied the lower inflation rates of the more recent periods. Jump to first page ...
... • When more expansionary policies were pursued during both the ’70-’73 and ’74-’82 periods, higher rates of both inflation and unemployment occurred. • In contrast, lower rates of unemployment have accompanied the lower inflation rates of the more recent periods. Jump to first page ...
Secular stagnation or financial cycle drag?
... is likely to persist well into the future and keep growth sluggish. Many factors are typically mentioned in this context, including ageing populations, growing income and wealth inequality, and falling tangible investment owing to technological change. Second, the pre-crisis financial boom (or “bubb ...
... is likely to persist well into the future and keep growth sluggish. Many factors are typically mentioned in this context, including ageing populations, growing income and wealth inequality, and falling tangible investment owing to technological change. Second, the pre-crisis financial boom (or “bubb ...
A soft commitment to overshoot the inflation objective
... policy challenge. Recurrent prolonged periods of very low interest rates and subdued growth could lead to ever lower inflation expectations (“un-anchoring”): economic agents could consider that the central bank would not be able to achieve its inflation objective. This loss of credibility would redu ...
... policy challenge. Recurrent prolonged periods of very low interest rates and subdued growth could lead to ever lower inflation expectations (“un-anchoring”): economic agents could consider that the central bank would not be able to achieve its inflation objective. This loss of credibility would redu ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... to be depressed. This is not surprising, since most of the adjustment to Chile’s external crisis occurred initially through import reduction induced by an aggregate expenditure contraction, while substitution effects in demand and exports showed little response. In 1983, imports were less than 50% o ...
... to be depressed. This is not surprising, since most of the adjustment to Chile’s external crisis occurred initially through import reduction induced by an aggregate expenditure contraction, while substitution effects in demand and exports showed little response. In 1983, imports were less than 50% o ...
Slide 1
... People with fixed income are hit hard by inflation (Pensioners) It decreases their realm income Low-income workers cannot keep pace with inflation Inflation impoverishes these workers ...
... People with fixed income are hit hard by inflation (Pensioners) It decreases their realm income Low-income workers cannot keep pace with inflation Inflation impoverishes these workers ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Currency Crises
... Europe, so our analysis uncovers a wide range of experience among the leavers, and to a lesser extent among the stayers.’O For instance, we will find that the frequent comparison of the United Kingdom with France is misleading because the United Kingdom is the only country in our group of twelve tha ...
... Europe, so our analysis uncovers a wide range of experience among the leavers, and to a lesser extent among the stayers.’O For instance, we will find that the frequent comparison of the United Kingdom with France is misleading because the United Kingdom is the only country in our group of twelve tha ...
FISCAL POLICY
... the banks! The Bank of Canada therefore has to use a more subtle and businesslike process known as openmarket operations, so called because it involves the Bank of Canada (or at least its agent) buying or selling bonds in a market that is open to anyone. In other words, the Bank of Canada buys and s ...
... the banks! The Bank of Canada therefore has to use a more subtle and businesslike process known as openmarket operations, so called because it involves the Bank of Canada (or at least its agent) buying or selling bonds in a market that is open to anyone. In other words, the Bank of Canada buys and s ...
The Macroeconomic Situation in the Czech Republic - Cerge-Ei
... were reflected in reduced real demand for consumer goods and investment, which contributed to the contraction of GDP by 5.1 points and which had a corresponding effect on the rise of unemployment. Another important factor within the reform package was the massive devaluation of CSK (accompanied by s ...
... were reflected in reduced real demand for consumer goods and investment, which contributed to the contraction of GDP by 5.1 points and which had a corresponding effect on the rise of unemployment. Another important factor within the reform package was the massive devaluation of CSK (accompanied by s ...
Interest Rates and Monetary Policy in the Short Run and the Long Run
... price level is increasing, they will take steps to maintain their real income. Nominal wages will rise, and the nominal and real interest rates will start to rise. ...
... price level is increasing, they will take steps to maintain their real income. Nominal wages will rise, and the nominal and real interest rates will start to rise. ...
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... must also increase (thus k* must decrease) in order for investment to be maintained at its long-run equilibrium level i(n). Also an increase in the market rate of return above its long-run equilibrium level must be accompanied by a higher capital-labor ratio (k*), and thus lower average product of c ...
... must also increase (thus k* must decrease) in order for investment to be maintained at its long-run equilibrium level i(n). Also an increase in the market rate of return above its long-run equilibrium level must be accompanied by a higher capital-labor ratio (k*), and thus lower average product of c ...
How can Asia insulate itself?
... Europe’s financial linkages – Beyond risk aversion, could credit availability suffer? Recent developments provide some optimism that the worst may be over for the sell-off in risk assets in Asia. While Citi analysts think the latest proposals from European policy leaders are unlikely to conclusively ...
... Europe’s financial linkages – Beyond risk aversion, could credit availability suffer? Recent developments provide some optimism that the worst may be over for the sell-off in risk assets in Asia. While Citi analysts think the latest proposals from European policy leaders are unlikely to conclusively ...
public debt, external competitiveness, and fiscal discipline in
... Tax revenues have been low in debtor countries not only because of the lack of political commitment to tax reform but also because they have been depressed by the debt crisis itself. Reductions in consumption, profits, wages, per capita incomes, and imports, mostly unavoidable if overall demand is t ...
... Tax revenues have been low in debtor countries not only because of the lack of political commitment to tax reform but also because they have been depressed by the debt crisis itself. Reductions in consumption, profits, wages, per capita incomes, and imports, mostly unavoidable if overall demand is t ...
Chapter 5: Goods and Financial Markets: The IS
... The demand for goods is an increasing function of output. Equilibrium requires that the demand for goods be equal to output. Note: The ZZ line is flatter than the 45° line only if increases in consumption and investment do not exceed the corresponding increase in output. © 2003 Prentice Hall Busines ...
... The demand for goods is an increasing function of output. Equilibrium requires that the demand for goods be equal to output. Note: The ZZ line is flatter than the 45° line only if increases in consumption and investment do not exceed the corresponding increase in output. © 2003 Prentice Hall Busines ...
Interactive Tool
... The FOMC used monetary policies actively throughout much of the 1990s. The FOMC lowered the target federal funds rate in a series of steps beginning in July of 1990 until September of 1992, all in response to a recession beginning in July of 1990 and ending in March of 1991. Then as inflationary pre ...
... The FOMC used monetary policies actively throughout much of the 1990s. The FOMC lowered the target federal funds rate in a series of steps beginning in July of 1990 until September of 1992, all in response to a recession beginning in July of 1990 and ending in March of 1991. Then as inflationary pre ...
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... (1). We then predict that the French franc would not succumb to any attack. The Italian lira would be devalued because both relative prices were “out of line” and because the equilibrium real exchange declined. We suggest that our analysis has many useful implications and applications. There is grea ...
... (1). We then predict that the French franc would not succumb to any attack. The Italian lira would be devalued because both relative prices were “out of line” and because the equilibrium real exchange declined. We suggest that our analysis has many useful implications and applications. There is grea ...
Financial Cycle, Financial Stability and Monetary Policy
... a bubble has emerged, it will probably be too late to act with interest rate hikes. • Pursuing a separate asset price objective could mean having to compromise on the inflation objective. A central bank’s focus on assets could lead to public confusion about its policy objectives (Giavazzi and Mishki ...
... a bubble has emerged, it will probably be too late to act with interest rate hikes. • Pursuing a separate asset price objective could mean having to compromise on the inflation objective. A central bank’s focus on assets could lead to public confusion about its policy objectives (Giavazzi and Mishki ...
Studies on the Macroeconomics of Monetary Union - Jultika
... mobility between countries, all of the countries in the EMU would not profit from the Monetary Union. A system of flexible exchange rates stabilizes unemployment and inflation; depreciation of a currency can help lower unemployment rate while appreciation can slow down local inflation. The exchange ...
... mobility between countries, all of the countries in the EMU would not profit from the Monetary Union. A system of flexible exchange rates stabilizes unemployment and inflation; depreciation of a currency can help lower unemployment rate while appreciation can slow down local inflation. The exchange ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... The macroeconomic adjustment process in East Asia is in general consistent with these stylized patterns. However, the degree of initial contraction and following recovery has been far greater in East Asia than what the cross-country evidence predicts. This paper tries to make an evaluation of what f ...
... The macroeconomic adjustment process in East Asia is in general consistent with these stylized patterns. However, the degree of initial contraction and following recovery has been far greater in East Asia than what the cross-country evidence predicts. This paper tries to make an evaluation of what f ...
Study material for Less Achievers Macro Economics XII
... The rate at which currency of one country is exchanged with currency of other country is known as foreign exchange rate. Q.3 what are two systems of determining foreign exchange rate? 1.Fixed exchange rate system-rate which is determined by govt 2.flexible exchange rate-rate which is determined by m ...
... The rate at which currency of one country is exchanged with currency of other country is known as foreign exchange rate. Q.3 what are two systems of determining foreign exchange rate? 1.Fixed exchange rate system-rate which is determined by govt 2.flexible exchange rate-rate which is determined by m ...
INTERNATIONAL TRADE
... through FDI and MNCs The existence of low wages because of relative labor abundance in the recipient country is an attraction when the production process is labor intensive Firms also argue that they need to invest abroad for defensive purpose to protect market share Firms may want to invest abr ...
... through FDI and MNCs The existence of low wages because of relative labor abundance in the recipient country is an attraction when the production process is labor intensive Firms also argue that they need to invest abroad for defensive purpose to protect market share Firms may want to invest abr ...
Keynesian Macroeconomics without the LM Curve
... more complicated model would not have this advantage. The relevant question, then, is whether the IS-LM-AS model’s choices about how to construct a simple macroeconomic model are the best ones for analyzing short-run fluctuations today. The model’s two best-known and most controversial choices are, ...
... more complicated model would not have this advantage. The relevant question, then, is whether the IS-LM-AS model’s choices about how to construct a simple macroeconomic model are the best ones for analyzing short-run fluctuations today. The model’s two best-known and most controversial choices are, ...
Article 10
... how central banks manage liquidity to create economic growth (Amadeo, 2017).Implementation of the monetary policy is carried on by the central bank. There are two types of monetary policy: expansionary and restrictive monetary policy. Expansionary monetary policy is when a central bank uses its tool ...
... how central banks manage liquidity to create economic growth (Amadeo, 2017).Implementation of the monetary policy is carried on by the central bank. There are two types of monetary policy: expansionary and restrictive monetary policy. Expansionary monetary policy is when a central bank uses its tool ...