NBER WORKING PAPER SERIES
... external shocks? Was the apparent stability due to the absence of shocks? These questions are addressed in the historical narrative section of the paper and as well as by simulation results derived from the estimated DSGE model. The unique Canadian experiment with a flexible exchange rate sparked e ...
... external shocks? Was the apparent stability due to the absence of shocks? These questions are addressed in the historical narrative section of the paper and as well as by simulation results derived from the estimated DSGE model. The unique Canadian experiment with a flexible exchange rate sparked e ...
Chapter 4: Long-Run Economic Growth: Theory
... result in order to simplify the analysis and focus it on the key, important factors that count. Because differences between businesses will not matter, let’s think about an economy with K typical--identical--competitive firms, each of which owns one unit of the economy's capital stock. Each of these ...
... result in order to simplify the analysis and focus it on the key, important factors that count. Because differences between businesses will not matter, let’s think about an economy with K typical--identical--competitive firms, each of which owns one unit of the economy's capital stock. Each of these ...
Krugman`s Chapter 32 PPT
... through indexation—contracts are written so that the terms of the contract automatically adjust for inflation. In a highly indexed economy, higher prices feed rapidly into changes in the consumer price index. That, in turn, quickly leads to increases in wages, further leading to increases in other p ...
... through indexation—contracts are written so that the terms of the contract automatically adjust for inflation. In a highly indexed economy, higher prices feed rapidly into changes in the consumer price index. That, in turn, quickly leads to increases in wages, further leading to increases in other p ...
Money and Monetary Policy for the 21st Century
... Modern market economies would not be possible without formation about relative prices and conducting transacfinancial stability. However, as events around the world in tions. Those resources could have been used to raise the the past decade demonstrated, financial institutions are “potential output” o ...
... Modern market economies would not be possible without formation about relative prices and conducting transacfinancial stability. However, as events around the world in tions. Those resources could have been used to raise the the past decade demonstrated, financial institutions are “potential output” o ...
Influence of Monetary Policy on Aggregate Demand
... c. the price level and real GDP would fall, but in the long run they would both be unaffected. d. the price level and real GDP would fall, but in the long run the price level would fall and real GDP would be unaffected. ANSWER: b. the price level and real GDP would rise, but in the long run the pric ...
... c. the price level and real GDP would fall, but in the long run they would both be unaffected. d. the price level and real GDP would fall, but in the long run the price level would fall and real GDP would be unaffected. ANSWER: b. the price level and real GDP would rise, but in the long run the pric ...
in Ahmet Kose, Fikret Senses and Erinc Yeldan (eds) Neoliberal
... The approach has now been adopted by twenty four central banks (CBs), and many more, including those in developing countries, are expressing serious interest in following suit. Initially adopted by New Zealand in 1990, the norms surrounding the IT regime have been so powerful that the Central Banks ...
... The approach has now been adopted by twenty four central banks (CBs), and many more, including those in developing countries, are expressing serious interest in following suit. Initially adopted by New Zealand in 1990, the norms surrounding the IT regime have been so powerful that the Central Banks ...
Subject_vocabulary
... stages of the business cycle: (1) recession, when economic activity slows down; (2) trough, when the recession is at its deepest; (3) recovery, when the economy begins to grow; and (4) peak/boom, when economic activity is high. ...
... stages of the business cycle: (1) recession, when economic activity slows down; (2) trough, when the recession is at its deepest; (3) recovery, when the economy begins to grow; and (4) peak/boom, when economic activity is high. ...
Epstein, Gerald and Erinc Yeldan: "Inflation Targeting, Employment
... The approach has now been adopted by twenty four central banks (CBs), and many more, including those in developing countries, are expressing serious interest in following suit. Initially adopted by New Zealand in 1990, the norms surrounding the IT regime have been so powerful that the Central Banks ...
... The approach has now been adopted by twenty four central banks (CBs), and many more, including those in developing countries, are expressing serious interest in following suit. Initially adopted by New Zealand in 1990, the norms surrounding the IT regime have been so powerful that the Central Banks ...
The Zero Bound in an Open Economy: A Foolproof Way of Escaping from
... even negligible. McCallum does not provide any calculations of the magnitude of the foreign-exchange interventions that would be needed to significantly depreciate the yen. Bernanke (1999), analyzing the situation in Japan, discusses several potential remedies, especially a relatively high inflatio ...
... even negligible. McCallum does not provide any calculations of the magnitude of the foreign-exchange interventions that would be needed to significantly depreciate the yen. Bernanke (1999), analyzing the situation in Japan, discusses several potential remedies, especially a relatively high inflatio ...
INFLATIONARY PRESSURES IN SOUTH ASIA
... include minimum price support, buffer stock, trade and public distribution schemes. More openness changes the inflationary dynamics. Does high economic growth in some countries imply that infrastructural and other capacity constraints are contributing to inflationary pressures? Data and analysis sug ...
... include minimum price support, buffer stock, trade and public distribution schemes. More openness changes the inflationary dynamics. Does high economic growth in some countries imply that infrastructural and other capacity constraints are contributing to inflationary pressures? Data and analysis sug ...
The eagle. A model for policy analysis of macroeconomic
... of firms. One type produces final nontradable goods under perfect competition using domestic tradable, imported tradable and nontradable intermediate goods. The final goods can be used for private consumption and for private investment. The intermediate goods are produced by firms under monopolistic ...
... of firms. One type produces final nontradable goods under perfect competition using domestic tradable, imported tradable and nontradable intermediate goods. The final goods can be used for private consumption and for private investment. The intermediate goods are produced by firms under monopolistic ...
Chapter 9: Unemployment and Inflation
... …rst, it is $0.25 per hour. After in‡ation-adjusted, it becomes $4.15 per hour). In November 2010, legislators of the Hong Kong Government agreed to set a minimum wage level of HK$28 ($4.70). ...
... …rst, it is $0.25 per hour. After in‡ation-adjusted, it becomes $4.15 per hour). In November 2010, legislators of the Hong Kong Government agreed to set a minimum wage level of HK$28 ($4.70). ...
IS PAPER SERIES
... The economy consists of identical households, each maximizing its utility over an infinite lifetime. Instantaneous utility is derived from consumption of two goods, one of which must be imüorted from abroad and one of which is available at home in fixed supply. Households may ...
... The economy consists of identical households, each maximizing its utility over an infinite lifetime. Instantaneous utility is derived from consumption of two goods, one of which must be imüorted from abroad and one of which is available at home in fixed supply. Households may ...
The Asset Market, Money, and Prices
... which is equal to “η” derived in slide 30 above: ΔM ΔY π ηY M Y ...
... which is equal to “η” derived in slide 30 above: ΔM ΔY π ηY M Y ...
A Structural Model of Australia as a Small Open Economy
... goods from the world and resells them domestically. Firms have some market power over the price of the goods that they are selling since consumers prefer a mixture of differentiated goods rather than consuming just one variety. Unlike the case when all goods are perfect substitutes, this means that ...
... goods from the world and resells them domestically. Firms have some market power over the price of the goods that they are selling since consumers prefer a mixture of differentiated goods rather than consuming just one variety. Unlike the case when all goods are perfect substitutes, this means that ...
Are Chinese trade flows different?
... prowess and ballooning trade surplus over the past decade have elicited charges of unfair competition. In some interpretations, China’s current account surplus has been identified as the cause of the global financial crisis of 2008 (e.g., Council of Economic Advisers, 2009). An often heard proposed re ...
... prowess and ballooning trade surplus over the past decade have elicited charges of unfair competition. In some interpretations, China’s current account surplus has been identified as the cause of the global financial crisis of 2008 (e.g., Council of Economic Advisers, 2009). An often heard proposed re ...
No:10 Research Department Working Paper
... (See Chart 1) Acceleration in inflation in 1990s compared to the preceding decade was apparent. After inflation was brought down from its peak in 1980, there had been two apparent jumps in 1988 and 1994. (See Chart 2 ) Depreciation in Turkish lira also gained momentum in 1990s. As interest rate in r ...
... (See Chart 1) Acceleration in inflation in 1990s compared to the preceding decade was apparent. After inflation was brought down from its peak in 1980, there had been two apparent jumps in 1988 and 1994. (See Chart 2 ) Depreciation in Turkish lira also gained momentum in 1990s. As interest rate in r ...
effectiveness of monetary policy tools in
... unemployment rises, and rises if unemployment falls below normal levels. Therefore, the economy is better off with stable output at optimal employment levels as against fluctuating output and employment (Rasche, 2005). 1.1.1 Monetary Policy Tools The set of instruments available to monetary authorit ...
... unemployment rises, and rises if unemployment falls below normal levels. Therefore, the economy is better off with stable output at optimal employment levels as against fluctuating output and employment (Rasche, 2005). 1.1.1 Monetary Policy Tools The set of instruments available to monetary authorit ...
Dynamics of Firms and Trade in General Equilibrium
... partners’ goods become relatively more expensive, we expect that Japanese exports would increase and imports would decrease through substitution e¤ect. However, such a relationship between trade and the real exchange rate is not evident in Figure 1a. As the Japanese real exchange rate depreciates, e ...
... partners’ goods become relatively more expensive, we expect that Japanese exports would increase and imports would decrease through substitution e¤ect. However, such a relationship between trade and the real exchange rate is not evident in Figure 1a. As the Japanese real exchange rate depreciates, e ...
Short-run Phillips Curve
... • Monetary policy can’t be used because nominal interest rates cannot fall below the zero bound. • This liquidity trap can occur whenever there is a sharp reduction in demand for loanable funds. ...
... • Monetary policy can’t be used because nominal interest rates cannot fall below the zero bound. • This liquidity trap can occur whenever there is a sharp reduction in demand for loanable funds. ...
PDF
... of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND. Won W. Koo is professor and director of Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND. ...
... of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND. Won W. Koo is professor and director of Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND. ...
laura a. wolff - Pearson Higher Education
... 19. The requirement that borrowing nations change their policies so that the economic crisis cannot recur as a condition of taking a loan __________________ 20. The right of nations to pursue domestic policies that they perceive to be in their national interest and to be free from the intervention o ...
... 19. The requirement that borrowing nations change their policies so that the economic crisis cannot recur as a condition of taking a loan __________________ 20. The right of nations to pursue domestic policies that they perceive to be in their national interest and to be free from the intervention o ...
Document
... the interest rate, i. The lower interest rate stimulates investment spending, I, which leads to an increase in aggregate demand from AD to AD'. At a given price level, real GDP demanded increases. The entire sequence is traced out in Exhibit 3 by the movement from point a to b ...
... the interest rate, i. The lower interest rate stimulates investment spending, I, which leads to an increase in aggregate demand from AD to AD'. At a given price level, real GDP demanded increases. The entire sequence is traced out in Exhibit 3 by the movement from point a to b ...
Venezuela Economics-Assessing default risks and haircut scenarios
... Dolartoday, well above the most pessimistic CPI estimates (e.g. the IMF’s), but volumes in the parallel market (USD31m per day in 2015, see figure 5) remained under the USD46.7m daily average of 2010-12. Despite the huge depreciation, parallel market dollar supply failed to pick up further because o ...
... Dolartoday, well above the most pessimistic CPI estimates (e.g. the IMF’s), but volumes in the parallel market (USD31m per day in 2015, see figure 5) remained under the USD46.7m daily average of 2010-12. Despite the huge depreciation, parallel market dollar supply failed to pick up further because o ...
NBER WORKING PAPER SERIES GOVERNMENT SPENDING, INTEREST RATES, PRICES, AND BUDGET DEFICITS
... increase in real interest rates applies as well to the case of public investment, which may substitute imperfectly for private investment. The basic idea is that a higher real interest rate is the appropriate price signal when the government's demand for goods is temporarily high.1 This signal motiv ...
... increase in real interest rates applies as well to the case of public investment, which may substitute imperfectly for private investment. The basic idea is that a higher real interest rate is the appropriate price signal when the government's demand for goods is temporarily high.1 This signal motiv ...
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.