Stephen J. Working OF INTEREST RATES
... second half of the decade to under .3. During the middle and latter parts of the 1970's it increased to 1.6 and after becoming negative at the end of the decade, it has averaged around 2.5 during the economic expansion of the 1980's. There is an extensive literature investigating the empirical relat ...
... second half of the decade to under .3. During the middle and latter parts of the 1970's it increased to 1.6 and after becoming negative at the end of the decade, it has averaged around 2.5 during the economic expansion of the 1980's. There is an extensive literature investigating the empirical relat ...
Exchange Rates and Jobs: What Do We Learn
... This paper investigates the effect of real-exchange-rate movements on net and gross job reallocation in the U.S. manufacturing sector. Interpreting real-exchange-rate shocks as reallocation shocks, it then draws implications for modern business-cycle theories. Real exchange rates measure the relativ ...
... This paper investigates the effect of real-exchange-rate movements on net and gross job reallocation in the U.S. manufacturing sector. Interpreting real-exchange-rate shocks as reallocation shocks, it then draws implications for modern business-cycle theories. Real exchange rates measure the relativ ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Economic Policy Coordination
... circumstances, the current government must choose its optimal policy taking as given the policy rules that will be pursued in the future. That is, it must optimize today, assuming that future governments will optimize under the assumption that yet future governments will optimize, and so on. In gene ...
... circumstances, the current government must choose its optimal policy taking as given the policy rules that will be pursued in the future. That is, it must optimize today, assuming that future governments will optimize under the assumption that yet future governments will optimize, and so on. In gene ...
The IS*LM/AD*AS Model: A General Framework for Macroeconomic
... • This process is sometimes called the “monetary transmission mechanism” and it means that changes in monetary policy are transmitted through the financial markets toward the goods market. ...
... • This process is sometimes called the “monetary transmission mechanism” and it means that changes in monetary policy are transmitted through the financial markets toward the goods market. ...
Rare Events and the Equity-Premium Puzzle
... I take a similar approach to purely economic depressions, such as the Great Depression. These events often involve financial crises, which are similar in some respects to wars. However, I think that an appropriate procedure is less clear in these cases than for wars. Nine of the contractions shown ...
... I take a similar approach to purely economic depressions, such as the Great Depression. These events often involve financial crises, which are similar in some respects to wars. However, I think that an appropriate procedure is less clear in these cases than for wars. Nine of the contractions shown ...
Chapter 1: Introduction
... Suppose money supply is less than money demand, so that households and businesses want to hold more liquid money balances than exist. Businesses and households go to their banks and try to borrow to boost their cash holdings. Banks respond by raising the interest rates they charge for loans. As the ...
... Suppose money supply is less than money demand, so that households and businesses want to hold more liquid money balances than exist. Businesses and households go to their banks and try to borrow to boost their cash holdings. Banks respond by raising the interest rates they charge for loans. As the ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Japanese Monetary Policy
... Equation (4) says that the period t oil price is a predetermined variable, which in the present setup means that its innovation is contemporaneously uncorrelated with the other innovations in the model. Shapiro and Watson (1988) argue that this is reasonable because movements in oil prices are domin ...
... Equation (4) says that the period t oil price is a predetermined variable, which in the present setup means that its innovation is contemporaneously uncorrelated with the other innovations in the model. Shapiro and Watson (1988) argue that this is reasonable because movements in oil prices are domin ...
ANALYSIS OF THE ZIMBABWEAN HYPERINFLATION CRISIS: A
... effect essentially occurs because of the deterioration of a currency’s real value during the time between the assessment of the public’s tax burden, and the eventual collection of that nominal amount. This effect occurs under any level of inflation, but can be accounted for with increased tax rates ...
... effect essentially occurs because of the deterioration of a currency’s real value during the time between the assessment of the public’s tax burden, and the eventual collection of that nominal amount. This effect occurs under any level of inflation, but can be accounted for with increased tax rates ...
Currency Jumps, Cojumps and the Role of Macro News
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
Chapter 19 Output and Inflation in the Short Run: Aggregate Supply
... natural rate when people underestimate or overestimate the rate of inflation. This might seem to suggest that economic activity can only deviate from its long run trend for extended periods of time if expectations are ’sticky’ in the sense that economic agents keep on overestimating or underestimati ...
... natural rate when people underestimate or overestimate the rate of inflation. This might seem to suggest that economic activity can only deviate from its long run trend for extended periods of time if expectations are ’sticky’ in the sense that economic agents keep on overestimating or underestimati ...
Persistent Macroeconomic Imbalances in the Euro Area: Causes
... among countries with different levels of economic development. In particular, in the presence of integrated real and financial markets, we should expect countries with lower per capita income to attract foreign investment because their higher expected productivity growth and corresponding economic g ...
... among countries with different levels of economic development. In particular, in the presence of integrated real and financial markets, we should expect countries with lower per capita income to attract foreign investment because their higher expected productivity growth and corresponding economic g ...
4V - EconStor
... has stimulated much debate about the appropriate policy mix to restore macroeconomic stability in the face of the slump in world copper prices. In this paper we consider a range of potential stabilisation policies for the Chilean economy. Using a multisectoral general equilibrium model we check the ...
... has stimulated much debate about the appropriate policy mix to restore macroeconomic stability in the face of the slump in world copper prices. In this paper we consider a range of potential stabilisation policies for the Chilean economy. Using a multisectoral general equilibrium model we check the ...
PDF
... decision-making in investment is subject to the comparative profit rates, which correspond to the comparative costs. The second model takes place when the comparative profit rates contradict comparative costs due to existing monopolistic elements in industries. Kojima (1975) used different terms to ...
... decision-making in investment is subject to the comparative profit rates, which correspond to the comparative costs. The second model takes place when the comparative profit rates contradict comparative costs due to existing monopolistic elements in industries. Kojima (1975) used different terms to ...
ResearchBrief173
... fallacious. The second-sub period with unchanged informality rate for wage earners covers the crisis period and recovery period after the crises. First, GDP declined due to crises and after which it started to increase again. Indeed, average growth rate of GDP and average growth rate of wage earner ...
... fallacious. The second-sub period with unchanged informality rate for wage earners covers the crisis period and recovery period after the crises. First, GDP declined due to crises and after which it started to increase again. Indeed, average growth rate of GDP and average growth rate of wage earner ...
Capital Inflows and Balance of Payments Pressures
... emerging market economies (EMEs) ran current account surpluses, further contributing to positive balance of payments (BOP) pressures. Moreover, despite the recent turmoil in financial markets, many EMEs continue to face positive capital flows and balance of payments pressures. Recognizing the import ...
... emerging market economies (EMEs) ran current account surpluses, further contributing to positive balance of payments (BOP) pressures. Moreover, despite the recent turmoil in financial markets, many EMEs continue to face positive capital flows and balance of payments pressures. Recognizing the import ...
Chapter 15 Monetary Policy
... which would (lower/raise) interest rates & (incr/decr) Ig, “C”, Xn, & Y. 63. If the Fed were to buy government securities in the open market, we would anticipate (lower/higher) interest rates, an (expanded/contracted) GDP, and (appreciation/depreciation) of the dollar. 64. If the Fed were reducing d ...
... which would (lower/raise) interest rates & (incr/decr) Ig, “C”, Xn, & Y. 63. If the Fed were to buy government securities in the open market, we would anticipate (lower/higher) interest rates, an (expanded/contracted) GDP, and (appreciation/depreciation) of the dollar. 64. If the Fed were reducing d ...
Capital Controls and Monetary Policy in Developing Countries
... In high-income and some middle-income countries the central bank prevents (or attempts to correct) this situation by means of open market operations which, up until several years ago, were aimed at controlling the amount of money in circulation. 2 Obviously this control requires that economic author ...
... In high-income and some middle-income countries the central bank prevents (or attempts to correct) this situation by means of open market operations which, up until several years ago, were aimed at controlling the amount of money in circulation. 2 Obviously this control requires that economic author ...
IOSR Journal of Business and Management (IOSR-JBM)
... check on private expenditure which is dependent upon government demand for goods and services in order to curb inflation. Also, personal consumption expenditure should be cut by raising the rates of direct taxes, in order to reduce the disposable income, but it does not adversely affect savings, inv ...
... check on private expenditure which is dependent upon government demand for goods and services in order to curb inflation. Also, personal consumption expenditure should be cut by raising the rates of direct taxes, in order to reduce the disposable income, but it does not adversely affect savings, inv ...
current politics and economics of europe
... currencies, this special issue looks at the question of monetary integration for the cases of Britain and Canada. This special issue adopts a comparative, multi- and interdisciplinary perspective on these matters. In the final years of the 1990s and into the infancy of the new millennium a discussio ...
... currencies, this special issue looks at the question of monetary integration for the cases of Britain and Canada. This special issue adopts a comparative, multi- and interdisciplinary perspective on these matters. In the final years of the 1990s and into the infancy of the new millennium a discussio ...
Impact of the Euro adoption on the Economy of Latvia
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
... tuations of the euro and the US dollar are likely to occur also in the future, an inference can be made that the lats peg to the euro will completely eliminate lats fluctuations relative to euro, while Latvia's exporters to the countries of the US dollar bloc are likely to experience an 8.2% increa ...
Chapter 27 The Phillips Curve and Expectations Theory 1. The
... b. Incorrect. Expansionary policy can reduce unemployment in the short run. c. Incorrect. Expansionary policy increases the inflation rate. d. Incorrect. Answer a. is correct. 12. "Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are there ...
... b. Incorrect. Expansionary policy can reduce unemployment in the short run. c. Incorrect. Expansionary policy increases the inflation rate. d. Incorrect. Answer a. is correct. 12. "Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are there ...
The Austrian School
... The pattern of resource allocation associated with intertemporal equilibrium exhibits a certain uniformity in terms of the value differentials that separate the stages of production. The difference in the value of the output of one stage and the value of output of the next stage reflects, among othe ...
... The pattern of resource allocation associated with intertemporal equilibrium exhibits a certain uniformity in terms of the value differentials that separate the stages of production. The difference in the value of the output of one stage and the value of output of the next stage reflects, among othe ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119.Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin (or profit) in trading, or else the margin may be recovered in the form of a commission or in some other way. Different rates may also be quoted for cash (usually notes only), a documentary form (such as traveler's cheques) or electronically (such as a credit card purchase). The higher rate on documentary transactions has been justified to compensate for the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.