Mauritius - COMESA Monetary Institute (CMI)
... The advent of inflation-targeting, emergence of ‘Taylor’s rule’ and more work on the benefits of independent central bank have brought new light on the coordination framework between monetary policy and fiscal policy. Investigating how fiscal policy affects monetary policy through estimates of their ...
... The advent of inflation-targeting, emergence of ‘Taylor’s rule’ and more work on the benefits of independent central bank have brought new light on the coordination framework between monetary policy and fiscal policy. Investigating how fiscal policy affects monetary policy through estimates of their ...
Reinventing Fiscal Policy Philip Arestis and Malcolm Sawyer The
... policy. In the same paper we also explore the role of fiscal policy, and argue that within the “new consensus” there is barely mention of fiscal policy.4 We strongly suggest there that fiscal policy should be reinstated, and conclude that “fiscal policy remains a potent tool for offsetting major cha ...
... policy. In the same paper we also explore the role of fiscal policy, and argue that within the “new consensus” there is barely mention of fiscal policy.4 We strongly suggest there that fiscal policy should be reinstated, and conclude that “fiscal policy remains a potent tool for offsetting major cha ...
UNDERSTANDING MONETARY POLICY SERIES NO 3 CENTRAL BANK OF NIGERIA
... There is also the issue of which of the two main intermediate targets (monetary aggregates and interest rates) monetary authorities should adopt. Generally, the choice between monetary aggregates and the interest rate depends on the policy objective of the monetary authorities, the structure of the ...
... There is also the issue of which of the two main intermediate targets (monetary aggregates and interest rates) monetary authorities should adopt. Generally, the choice between monetary aggregates and the interest rate depends on the policy objective of the monetary authorities, the structure of the ...
24.3 Implementing Monetary Policy: Tools of the Fed
... been quite stable over a long period of time, particularly using the M2 definition. However, velocity is less stable when measured using the M1 definition and over shorter periods of time. ...
... been quite stable over a long period of time, particularly using the M2 definition. However, velocity is less stable when measured using the M1 definition and over shorter periods of time. ...
Policy Biases when the Monetary and Fiscal Authorities
... the control of inflation (see Cukierman, 1992; Walsh, 1993). In fact, in recent years several central banks around the world have adopted inflation targeting as the cornerstone of their monetary policy (see Bernanke and others, 1999). For their part, fiscal authorities in many countries have also co ...
... the control of inflation (see Cukierman, 1992; Walsh, 1993). In fact, in recent years several central banks around the world have adopted inflation targeting as the cornerstone of their monetary policy (see Bernanke and others, 1999). For their part, fiscal authorities in many countries have also co ...
The Established Strategy for Economic Recovery in the United
... disagreement within the macroeconomic policymaking process ceases. Disagreements however tend to be more muted than in successive phases of the model, focusing less on macroeconomic norms, objectives and policy instruments and more on microeconomic policy and normative concerns regarding the sustai ...
... disagreement within the macroeconomic policymaking process ceases. Disagreements however tend to be more muted than in successive phases of the model, focusing less on macroeconomic norms, objectives and policy instruments and more on microeconomic policy and normative concerns regarding the sustai ...
Escaping from a Liquidity Trap and Deflation: The Foolproof Way
... recession and deflation. Nominal interest rates cannot fall below zero, since potential lenders would then hold cash rather than lend at negative interest rates. This is the so-called “zero lower bound for interest rates.” In particular, conventional monetary policy seems unable to provide sufficien ...
... recession and deflation. Nominal interest rates cannot fall below zero, since potential lenders would then hold cash rather than lend at negative interest rates. This is the so-called “zero lower bound for interest rates.” In particular, conventional monetary policy seems unable to provide sufficien ...
Reinventing fiscal policy
... target, RR* is the "equilibrium" real rate of interest, that is the rate of interest consistent with zero output gap which implies from equation (2), a constant rate of inflation, si (with i = 1, 2) represents stochastic shocks, and Et refers to expectations held at time t. Equation (1) is the aggre ...
... target, RR* is the "equilibrium" real rate of interest, that is the rate of interest consistent with zero output gap which implies from equation (2), a constant rate of inflation, si (with i = 1, 2) represents stochastic shocks, and Et refers to expectations held at time t. Equation (1) is the aggre ...
Monetary Policy Practice Questions
... A) open market operations C) changes in tax rates B) changes in banking laws D) changes in government ...
... A) open market operations C) changes in tax rates B) changes in banking laws D) changes in government ...
NBER WORKING PAPER SERIES ON THE OR IRRELEVANCE OF PUBLIC
... that they fail to take into account the implicit liability associated with government bonds, and the change in that liability with a change in the level ...
... that they fail to take into account the implicit liability associated with government bonds, and the change in that liability with a change in the level ...
The data are collected at a quarterly frequency, over a
... The informational usefulness of monetary aggregates may particularly relevant in present situation, where both short and long-run interest rates are relatively low levels. There is significant evidence that the relationship between interest rates and money demand may be non-linear, with the interest ...
... The informational usefulness of monetary aggregates may particularly relevant in present situation, where both short and long-run interest rates are relatively low levels. There is significant evidence that the relationship between interest rates and money demand may be non-linear, with the interest ...
How Friedman and Schwartz became monetarists
... “the great volume of unused lending power in the hands of the banks”. (Friedman, Hart and Jacoby, 1946). In further contrast to his 1942 congressional testimony, Friedman argued against price controls, including rent controls, and also against the Federal Reserve's policy of pegging the interest rat ...
... “the great volume of unused lending power in the hands of the banks”. (Friedman, Hart and Jacoby, 1946). In further contrast to his 1942 congressional testimony, Friedman argued against price controls, including rent controls, and also against the Federal Reserve's policy of pegging the interest rat ...
NBER WORKING PAPER SERIES ON THE ORIGINS OF "A MONETARY HISTORY"
... a contraction. The contraction, which would also diffuse widely, then produced changes in relative prices, such as a fall in costs relative to final product prices, which produced expansion. Friedman and Schwartz agreed that adjustments in relative prices would reverse contractions, so that in the e ...
... a contraction. The contraction, which would also diffuse widely, then produced changes in relative prices, such as a fall in costs relative to final product prices, which produced expansion. Friedman and Schwartz agreed that adjustments in relative prices would reverse contractions, so that in the e ...
Lecture Notes on Macroeconomic Principles
... Since bank accounts, bonds, automobile loans, and mortgages all make or require dollar payments at different points in time, the interest rates on these investments or loans must also be corrected for the effects of inflation to gauge their true economic significance. Suppose, for example, that y ...
... Since bank accounts, bonds, automobile loans, and mortgages all make or require dollar payments at different points in time, the interest rates on these investments or loans must also be corrected for the effects of inflation to gauge their true economic significance. Suppose, for example, that y ...
Monetary Policy - Macmillan Learning
... holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits and on currency and the interest rate on CDs. These differences—the opportunity cost of holding money rather than interest-bearing assets—declined sh ...
... holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits and on currency and the interest rate on CDs. These differences—the opportunity cost of holding money rather than interest-bearing assets—declined sh ...
Money, Banking, and the Financial System
... A) they tend to be dominated by the agricultural sector, where productivity is usually low. B) they tend to have authoritarian governments that stifle innovation. C) they tend to be plagued by superstitious beliefs that stifle innovation. D) the high transactions costs associated with barter. Answer ...
... A) they tend to be dominated by the agricultural sector, where productivity is usually low. B) they tend to have authoritarian governments that stifle innovation. C) they tend to be plagued by superstitious beliefs that stifle innovation. D) the high transactions costs associated with barter. Answer ...
Fiscal and Monetary Policies The Nominal Anchor
... the long-run equilibrium values of real variables (e.g., employment, output, real interest rates) don’t depend on monetary conditions The Quantity Theory of Money (MV = PY ) was typically the link between the money supply and the price level But some classical (neoclassical) economists discussed pri ...
... the long-run equilibrium values of real variables (e.g., employment, output, real interest rates) don’t depend on monetary conditions The Quantity Theory of Money (MV = PY ) was typically the link between the money supply and the price level But some classical (neoclassical) economists discussed pri ...
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38
... monetary shock. By preventing gold inflows from becoming part of the monetary base, this policy brought to an abrupt halt to what had been a strong monetary expansion. After growing at about a 17 percent annual rate from 1934-36, the monetary base ceased expanding in 1937. This shift in policy was e ...
... monetary shock. By preventing gold inflows from becoming part of the monetary base, this policy brought to an abrupt halt to what had been a strong monetary expansion. After growing at about a 17 percent annual rate from 1934-36, the monetary base ceased expanding in 1937. This shift in policy was e ...
Sample
... AACSB: Reflective Thinking 12) When economists refer to the role of money as a standard of deferred payment, they mean that A) payments by checks are usually deferred until the checks clear the bank. B) money earns interest while loan payments are deferred. C) money provides a standard for payments ...
... AACSB: Reflective Thinking 12) When economists refer to the role of money as a standard of deferred payment, they mean that A) payments by checks are usually deferred until the checks clear the bank. B) money earns interest while loan payments are deferred. C) money provides a standard for payments ...
Sustainable Future Fiscal and Debt Policies
... correct macroeconomic imbalances Lesson 5: Fiscal policy must not only take into account macroeconomic imbalances but also financial imbalances Lesson 6: Fiscal and monetary policies must be properly coordinated Lesson 7: An expansionary (countercyclical) fiscal policy must be based on higher expend ...
... correct macroeconomic imbalances Lesson 5: Fiscal policy must not only take into account macroeconomic imbalances but also financial imbalances Lesson 6: Fiscal and monetary policies must be properly coordinated Lesson 7: An expansionary (countercyclical) fiscal policy must be based on higher expend ...