NBER WORKING PAPER SERIES FISCAL LIMITS AND MONETARY POLICY Eric M. Leeper
... European Monetary Union fall into this category, as their monetary policy is controlled by the European Central Bank, which is dominated by countries not now experiencing sovereign debt problems. A higher probability of outright default reduces the value of outstanding government bonds and raises so ...
... European Monetary Union fall into this category, as their monetary policy is controlled by the European Central Bank, which is dominated by countries not now experiencing sovereign debt problems. A higher probability of outright default reduces the value of outstanding government bonds and raises so ...
The Big Picture of Monetary–Fiscal Interactions
... adoption of the regime, and (ii) contrast these with outcomes in the main non-EIT (United States, Switzerland and Japan).11 As a starting point, it is illustrative to examine the behaviour of central government debt to GDP ratio, reported in Figure 3 separately for the two groups of countries. In al ...
... adoption of the regime, and (ii) contrast these with outcomes in the main non-EIT (United States, Switzerland and Japan).11 As a starting point, it is illustrative to examine the behaviour of central government debt to GDP ratio, reported in Figure 3 separately for the two groups of countries. In al ...
30 - Weebly
... you'll see that prices rose 1.6 percent from 2001 to 2002. • Another way of thinking about the inflation rate is to ask how much will a dollar buy now versus what a dollar would have bought before? In our example, $1.00 in 2001 had the same value as $1.06 in 2002. In terms of what you can buy with o ...
... you'll see that prices rose 1.6 percent from 2001 to 2002. • Another way of thinking about the inflation rate is to ask how much will a dollar buy now versus what a dollar would have bought before? In our example, $1.00 in 2001 had the same value as $1.06 in 2002. In terms of what you can buy with o ...
Macroeconomics: Events and Ideas
... fiscal policies to fight a recession. Others believed that such policies would worsen the slump or merely postpone the inevitable. For example, in 1934 Harvard’s Joseph Schumpeter, now famous for his early recognition of the importance of technological change, warned that any attempt to alleviate th ...
... fiscal policies to fight a recession. Others believed that such policies would worsen the slump or merely postpone the inevitable. For example, in 1934 Harvard’s Joseph Schumpeter, now famous for his early recognition of the importance of technological change, warned that any attempt to alleviate th ...
From bimetallism to monetarism
... what would later be called the “Real Bills Doctrine”, which held that, so long as the banking system confined its lending to good quality short term commercial bills, the quantity of money would automatically accommodate itself to the changing needs of trade without imparting either inflationary or ...
... what would later be called the “Real Bills Doctrine”, which held that, so long as the banking system confined its lending to good quality short term commercial bills, the quantity of money would automatically accommodate itself to the changing needs of trade without imparting either inflationary or ...
the parallel economy in india: causes, impacts
... income income on which tax has been (black income) would probably be Rs. 700 crores and Rs. 1000 crores for the years 1961‐62 and 1965‐66 respectively. Projecting this estimate further to 1968‐69 on the basis of percentage increase in national income from 1961‐62 to 1968‐69, the income on which t ...
... income income on which tax has been (black income) would probably be Rs. 700 crores and Rs. 1000 crores for the years 1961‐62 and 1965‐66 respectively. Projecting this estimate further to 1968‐69 on the basis of percentage increase in national income from 1961‐62 to 1968‐69, the income on which t ...
Document
... (a) because the Federal Reserve Act mandated that targets be specified. (b) following its difficulties during the Great Depression. (c) in the early 1950s following its struggle with the U.S. Treasury for control of monetary policy. (d) in an attempt to deal with accelerating inflation during the la ...
... (a) because the Federal Reserve Act mandated that targets be specified. (b) following its difficulties during the Great Depression. (c) in the early 1950s following its struggle with the U.S. Treasury for control of monetary policy. (d) in an attempt to deal with accelerating inflation during the la ...
CHAPTER 27: The Role of Monetary Policy
... Rules versus Discretion in the Conduct of Monetary Policy Since monetary policy cannot have long-lasting real effects, it has been argued that the authorities should follow a monetary policy rule (fixing the money supply according to a rule) such as the one given by the equation Pt = aMt-1. The Poli ...
... Rules versus Discretion in the Conduct of Monetary Policy Since monetary policy cannot have long-lasting real effects, it has been argued that the authorities should follow a monetary policy rule (fixing the money supply according to a rule) such as the one given by the equation Pt = aMt-1. The Poli ...
the Lecture Notes
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
... • Financing by money creation is more expansionary than financing by bond sales • Both money creation and bond sales are more expansionary than financing by increased taxation • Higher interest rates has a dual effect – Reducing investment spending, – People economize on cash balances which supplies ...
From Bimetallism to Monetarism
... To begin with, the “monetarist-structuralist debate” about inflation and growth was well under way in Latin America by the early 1960s, before the monetarist controversy had gathered much momentum in the United States and Europe, and Friedman’s work played only a peripheral role in this, particularl ...
... To begin with, the “monetarist-structuralist debate” about inflation and growth was well under way in Latin America by the early 1960s, before the monetarist controversy had gathered much momentum in the United States and Europe, and Friedman’s work played only a peripheral role in this, particularl ...
French circuit theory
... To hammer our point home, suppose now that the goods produced are sold for £900. How is this to be analysed? Firms actually make a loss: they spend £1,000 and recoup £900 only. Keynes examined such a case in his Treatise on Money (1930, pp. 159–60). He explained that the incomes that consumers do no ...
... To hammer our point home, suppose now that the goods produced are sold for £900. How is this to be analysed? Firms actually make a loss: they spend £1,000 and recoup £900 only. Keynes examined such a case in his Treatise on Money (1930, pp. 159–60). He explained that the incomes that consumers do no ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... Velocity has not been constant over the period from 1960 to 2010. There is a long-term trend—velocity has been rising. There are also fluctuations, some of them quite large. ...
... Velocity has not been constant over the period from 1960 to 2010. There is a long-term trend—velocity has been rising. There are also fluctuations, some of them quite large. ...
Macroeconomic Performance - Federal Reserve Bank of San
... doctrine in 1705, the classic statement on this subject was provided by Adam Smith (1776). Smith suggested that an appropriate rule for money creation is for each bank to "discount(s) to a merchant a real bill of exchange drawn by a real creditor upon a real debtor, and which as soon as it is due, i ...
... doctrine in 1705, the classic statement on this subject was provided by Adam Smith (1776). Smith suggested that an appropriate rule for money creation is for each bank to "discount(s) to a merchant a real bill of exchange drawn by a real creditor upon a real debtor, and which as soon as it is due, i ...
Is Fiscal Austerity Good for the Economy?
... debt crisis, the International Monetary Fund (IMF) and Euro-area governments attempted to calm markets through various lending programs, and fiscal contraction was often a precondition of those rescue packages. In the United States, deficit reduction recently has been the result of a “sequester” tha ...
... debt crisis, the International Monetary Fund (IMF) and Euro-area governments attempted to calm markets through various lending programs, and fiscal contraction was often a precondition of those rescue packages. In the United States, deficit reduction recently has been the result of a “sequester” tha ...
Modern Macroeconomics and Monetary Policy
... publicly accessible web site, in whole or in part. ...
... publicly accessible web site, in whole or in part. ...
capital theory, inflation and deflation: the austrians and monetary
... discussion of capital and provides no real sense of any intertemporal discoordination engendered by deflation. Lacking an explicit theory of capital, it can only observe aggregate movements as evidence of a downturn.3 This is a likely explanation for the theory's almost exclusive ...
... discussion of capital and provides no real sense of any intertemporal discoordination engendered by deflation. Lacking an explicit theory of capital, it can only observe aggregate movements as evidence of a downturn.3 This is a likely explanation for the theory's almost exclusive ...
Fiscal and monetary coordination, Reserve Bank of New Zealand
... changes to private disposable income through the taxation and benefit system. In these ways, fiscal policy affects demand and inflation pressure, in much the same way as changes in trading-partner demand for our exports, or confidence-based changes in private investment, for example. While demand – ...
... changes to private disposable income through the taxation and benefit system. In these ways, fiscal policy affects demand and inflation pressure, in much the same way as changes in trading-partner demand for our exports, or confidence-based changes in private investment, for example. While demand – ...
Eichner`s monetary economics Ahead of its time
... investment depends far more on the lending policies of the banks, including the central bank, than on the willingness of households to forego consumption” (Eichner 1987, p. 138). • “If additional investment is going to be undertaken, it can only be financed ... through bank loans” (Eichner 1987, p. ...
... investment depends far more on the lending policies of the banks, including the central bank, than on the willingness of households to forego consumption” (Eichner 1987, p. 138). • “If additional investment is going to be undertaken, it can only be financed ... through bank loans” (Eichner 1987, p. ...
Inflation, Crisis and Money
... had successfully kept inflation around a desirable level for nearly twenty years by adjusting Bank Rate. Studies on the monetary policy of the BOE in this period concerned the issues of the interest rate response to the economy. Especially since Taylor-Rule type reaction functions had been used as a ...
... had successfully kept inflation around a desirable level for nearly twenty years by adjusting Bank Rate. Studies on the monetary policy of the BOE in this period concerned the issues of the interest rate response to the economy. Especially since Taylor-Rule type reaction functions had been used as a ...
Mankiw 6e PowerPoints
... No economy would suffer from over production, as supply will automatically create its own demand. ...
... No economy would suffer from over production, as supply will automatically create its own demand. ...