Borrower of Last Resort - Tiemann Investment Advisors, LLC
... replaced one asset, cash, with another — my debt to them. But Wells Fargo’s balance sheet has still grown by $14. By lending me $14, Bank of America has increased the aggregate balance sheet of the banking system by $14. In effect, they have called into being $14 of money that did not exist before. ...
... replaced one asset, cash, with another — my debt to them. But Wells Fargo’s balance sheet has still grown by $14. By lending me $14, Bank of America has increased the aggregate balance sheet of the banking system by $14. In effect, they have called into being $14 of money that did not exist before. ...
14.02 Principles of Macroeconomics Spring 06 Quiz 1
... Consider the IS model: Extend the consumption function to be: C = c0 + c1 (Y − T ) + c2 (Y e − T e ) , where C is annual consumption, Y is current annual income, Y e is expected future annual income (think of it as the annual income that people expect to receive on average in the future), T is curre ...
... Consider the IS model: Extend the consumption function to be: C = c0 + c1 (Y − T ) + c2 (Y e − T e ) , where C is annual consumption, Y is current annual income, Y e is expected future annual income (think of it as the annual income that people expect to receive on average in the future), T is curre ...
monetary policy introduction the money market the price of money
... Rather than risking upsetting these long-term decisions, monetarists advocate steady and predictable changes in the money supply. ...
... Rather than risking upsetting these long-term decisions, monetarists advocate steady and predictable changes in the money supply. ...
REAL%THEORY%OF%THE%PRICE%LEVEL% Background%
... their bond yields. Eurozone nations issue debt in euro, but the quantity of euro is controlled by the European Central Bank rather than individual member nations. To those countries, their debt issuances are effectively real, demanding real (tax) backing. When the backing is not assured, default pro ...
... their bond yields. Eurozone nations issue debt in euro, but the quantity of euro is controlled by the European Central Bank rather than individual member nations. To those countries, their debt issuances are effectively real, demanding real (tax) backing. When the backing is not assured, default pro ...
causes of great depression powerpoint
... • Banks started to close, increasing the panic. • 1930, 60 banks fail every month, by 1933 over 9,000 banks fail (40% of the 1929 total) ...
... • Banks started to close, increasing the panic. • 1930, 60 banks fail every month, by 1933 over 9,000 banks fail (40% of the 1929 total) ...
The Triumph of Monetarism
... comes from Friedman (1953a). The importance of thinking not just about what policy would be best in response to this particular shock but what policy rule would be best in general comes from Friedman (1960). That policy should be stabilization policy rather than gap-closing policy was the principal ...
... comes from Friedman (1953a). The importance of thinking not just about what policy would be best in response to this particular shock but what policy rule would be best in general comes from Friedman (1960). That policy should be stabilization policy rather than gap-closing policy was the principal ...
The Triumph of Monetarism
... comes from Friedman (1953a). The importance of thinking not just about what policy would be best in response to this particular shock but what policy rule would be best in general comes from Friedman (1960). That policy should be stabilization policy rather than gap-closing policy was the principal ...
... comes from Friedman (1953a). The importance of thinking not just about what policy would be best in response to this particular shock but what policy rule would be best in general comes from Friedman (1960). That policy should be stabilization policy rather than gap-closing policy was the principal ...
Essential Understandings Economic Philosophies Basic concepts of
... Discuss the impact of interest rates on the demand for money (Theory of liquidity preference) Impact of interest rates on Money Supply? ...
... Discuss the impact of interest rates on the demand for money (Theory of liquidity preference) Impact of interest rates on Money Supply? ...
THE FEDERAL RESERVE AND MONETARY POLICY
... decisions made at the Fed impact the macroeconomy. You will be introduced to the market for federal funds, and learn how the Federal Reserve attempts to expand or cool off the economy using monetary policy. You will also be introduced to the quantity equation, the quantity theory of money, and monet ...
... decisions made at the Fed impact the macroeconomy. You will be introduced to the market for federal funds, and learn how the Federal Reserve attempts to expand or cool off the economy using monetary policy. You will also be introduced to the quantity equation, the quantity theory of money, and monet ...
lecture notes
... B. Money is debt; paper money is a debt of Federal Reserve Banks and checkable deposits are liabilities of banks and thrifts because depositors own them. C. Value of money arises not from its intrinsic value, but its value in exchange for goods and services. 1. It is acceptable as a medium of exchan ...
... B. Money is debt; paper money is a debt of Federal Reserve Banks and checkable deposits are liabilities of banks and thrifts because depositors own them. C. Value of money arises not from its intrinsic value, but its value in exchange for goods and services. 1. It is acceptable as a medium of exchan ...
The ECB`s Expanded Asset Purchase Programme
... takes' to save the euro. They are therefore already at a very low level, therefore reducing significantly the scope of QE; the fact that about 80% of the financing of the real economy in the euro area originates from the banking sector implies that the success of the EAPP depends ultimately on the ...
... takes' to save the euro. They are therefore already at a very low level, therefore reducing significantly the scope of QE; the fact that about 80% of the financing of the real economy in the euro area originates from the banking sector implies that the success of the EAPP depends ultimately on the ...
Fiscal Policy: Alive and Well
... tired of thinking about fine-tuning the economy through tax and expenditure policy, while economists often argue that the nation's macroeconomic position should be regulated almost entirely through monetary policy. Like all conventional wisdom, however, this bit of lore is often misleading and somet ...
... tired of thinking about fine-tuning the economy through tax and expenditure policy, while economists often argue that the nation's macroeconomic position should be regulated almost entirely through monetary policy. Like all conventional wisdom, however, this bit of lore is often misleading and somet ...
Inflation & Deflation
... • Under what conditions would you expect to see inflation (rise in price level)? Inflation can be caused by an increase in aggregate demand Inflation can be caused by a decrease in aggregate supply ...
... • Under what conditions would you expect to see inflation (rise in price level)? Inflation can be caused by an increase in aggregate demand Inflation can be caused by a decrease in aggregate supply ...
Due Date: Thursday, September 8th (at the beginning of class)
... 3) Econoland finances government expenditures with an inflation tax. a) Explain who pays the tax and how it is paid. Holders of money pay the inflation tax as the purchasing power of their money holdings declines as a result of inflation generated when the government prints more money. b) What are t ...
... 3) Econoland finances government expenditures with an inflation tax. a) Explain who pays the tax and how it is paid. Holders of money pay the inflation tax as the purchasing power of their money holdings declines as a result of inflation generated when the government prints more money. b) What are t ...
How Banks Create Money
... There is a decrease in the size of commercial banks' excess reserves, the money supply decreases, and the interest rates rise, thereby causing a decrease in investment spending and real GDP . C) There is a decrease in the size of commercial banks' excess reserves, the money supply decreases, and int ...
... There is a decrease in the size of commercial banks' excess reserves, the money supply decreases, and the interest rates rise, thereby causing a decrease in investment spending and real GDP . C) There is a decrease in the size of commercial banks' excess reserves, the money supply decreases, and int ...
Banking System and Money Supply
... a. Commercial banks are a main source of checkable deposits for households and businesses. b. Thrift institutions (savings and loans, credit unions, mutual savings banks) also have checkable deposits. 3. Qualification: Currency and checkable deposits held by the federal government, Federal Reserve, ...
... a. Commercial banks are a main source of checkable deposits for households and businesses. b. Thrift institutions (savings and loans, credit unions, mutual savings banks) also have checkable deposits. 3. Qualification: Currency and checkable deposits held by the federal government, Federal Reserve, ...