Mechanisms of Financial Crises in Growth and Collapse
... of economics – the experienced-base type of economics I refer to as The Other Canon – which traditionally have understood and still understand crises, but which have been marginalized. Financial crises represent imbalances which – in contrast to inflation and deflation – are not immediately visible ...
... of economics – the experienced-base type of economics I refer to as The Other Canon – which traditionally have understood and still understand crises, but which have been marginalized. Financial crises represent imbalances which – in contrast to inflation and deflation – are not immediately visible ...
Kiss Me Deadly: From Finnish Great Depression to
... By late 1988 the credit boom became apparent and raised the concerns of policy makers. A tax reform, due to take effect in 1Q 1989, included broader-based and higher taxes on capital gains, in anticipation of which the credit and price dynamics peaked in 4Q 1988. Other indirect taxes were also rais ...
... By late 1988 the credit boom became apparent and raised the concerns of policy makers. A tax reform, due to take effect in 1Q 1989, included broader-based and higher taxes on capital gains, in anticipation of which the credit and price dynamics peaked in 4Q 1988. Other indirect taxes were also rais ...
the PDF File
... is a situation of persistent and appreciable rise in prices, leading to fall in purchasing power of money. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index over time. Demand Pull Inflation : ...
... is a situation of persistent and appreciable rise in prices, leading to fall in purchasing power of money. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index over time. Demand Pull Inflation : ...
M09_ABEL4987_7E_IM_C09
... d. The result is no change in employment, output, or the real interest rate e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportio ...
... d. The result is no change in employment, output, or the real interest rate e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportio ...
Chapter 12 Aggregate Supply with Sticky Prices
... agent’s need to change prices, rather than according to a strict and exogenous schedule. In the Caplin-Spulber model, agents adjust prices when the gap between their existing price and their optimal price becomes large enough. While Romer does not present all of the underlying logic to justify this ...
... agent’s need to change prices, rather than according to a strict and exogenous schedule. In the Caplin-Spulber model, agents adjust prices when the gap between their existing price and their optimal price becomes large enough. While Romer does not present all of the underlying logic to justify this ...
Y - The University of Chicago Booth School of Business
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
Topic6 - Booth School of Business
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
Power Point - The University of Chicago Booth School of Business
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
... BUT allows the Bank to think too much - the economy is so complex that Fed policy can have delayed impact and is usually initiated too late! o Central Bank actions can often be ‘destabilizing’ (Freidman, Lucas: ...
Some Current Controversies in the Theory of Inflation
... usually trying to catch up with general inflation. Such catch-up price increases should not be interpreted as inflation-generating Similarly, when unions raise wages, they are price increases.. often just trying to catch up with past price increases or protect wages from expected future price increa ...
... usually trying to catch up with general inflation. Such catch-up price increases should not be interpreted as inflation-generating Similarly, when unions raise wages, they are price increases.. often just trying to catch up with past price increases or protect wages from expected future price increa ...
397Analysis of bubble in Shanghai housing marketHL
... recession, the sluggish recovery through mid-2003, and from the 2004 even more rapid growth. ...
... recession, the sluggish recovery through mid-2003, and from the 2004 even more rapid growth. ...
P - IS MU
... Shut down point in LR in LR the monopoly firm has to cover its total costs (at least) – monopoly shuts down if: P < AC MC ...
... Shut down point in LR in LR the monopoly firm has to cover its total costs (at least) – monopoly shuts down if: P < AC MC ...
Pepall_4e_ch05
... Price discrimination and welfare 2 • Previous analysis assumes that the same markets are served with and without price discrimination • This may not be true – uniform price is affected by demand in “weak” markets – firm may then prefer not to serve such markets without price discrimination – price ...
... Price discrimination and welfare 2 • Previous analysis assumes that the same markets are served with and without price discrimination • This may not be true – uniform price is affected by demand in “weak” markets – firm may then prefer not to serve such markets without price discrimination – price ...
Influence of Monetary Policy on Aggregate Demand
... c. adjusting the money supply in order to meet the interest rate target. d. having to make open-market sales. ANSWER: c. adjusting the money supply in order to meet the interest rate target. If the Fed targets the interest rate, a. it can then set the money supply at whatever value it wants. b. it m ...
... c. adjusting the money supply in order to meet the interest rate target. d. having to make open-market sales. ANSWER: c. adjusting the money supply in order to meet the interest rate target. If the Fed targets the interest rate, a. it can then set the money supply at whatever value it wants. b. it m ...
capital theory, inflation and deflation: the austrians and monetary
... quickly and obviously reveal the problem. The problems inflation generates are masked within the capital strwcture and are not easily revealed by macroeconomic aggregates. This presents a crucial problem for monetary policy makers. By the time most of the problems of inflation have become obvious, i ...
... quickly and obviously reveal the problem. The problems inflation generates are masked within the capital strwcture and are not easily revealed by macroeconomic aggregates. This presents a crucial problem for monetary policy makers. By the time most of the problems of inflation have become obvious, i ...
... What is the current level of systemic risk in the global financial system? We cannot manage what we do not measure. Some research does exist that builds on measures of risk exposures of stochastic cash flows in asset pricing models, characterizing risk and return relations using statistical methods. ...
Should monetary policy lean against the wind?
... analyze how different instrument rules perform in a model with the simultaneous presence of a borrower balance-sheet and a bank credit-supply channel. In doing so we show that, when credit supply effects are present, responding to financial variables allows the central bank to achieve a better trade-off ...
... analyze how different instrument rules perform in a model with the simultaneous presence of a borrower balance-sheet and a bank credit-supply channel. In doing so we show that, when credit supply effects are present, responding to financial variables allows the central bank to achieve a better trade-off ...
Did Greenspan Deserve Support for Another Term?
... Deflation phobia had been ignited earlier in the United States by a few isolated monthly declines in consumer and producer prices that occurred in the latter half of 2001. Almost immediately a deluge of articles gushed forth to warn of the looming prospect of a catastrophic, Japanese-style deflation ...
... Deflation phobia had been ignited earlier in the United States by a few isolated monthly declines in consumer and producer prices that occurred in the latter half of 2001. Almost immediately a deluge of articles gushed forth to warn of the looming prospect of a catastrophic, Japanese-style deflation ...
NBER WORKING PAPER SERIES Laurence Ball N. thegory Manldw Working Paper No. 4677
... economy, how can heretics maintain that mone is neutral? A common argument is that causality runs from output to money, rather than the other way around. We agree that it is difficult to establish the direction of causation. Indeed, the identification problem leads us to put little weight on the ma ...
... economy, how can heretics maintain that mone is neutral? A common argument is that causality runs from output to money, rather than the other way around. We agree that it is difficult to establish the direction of causation. Indeed, the identification problem leads us to put little weight on the ma ...
likviditás és reálgazdaság kapcsolata - doktori
... productive activity – is the ease of money function transformation. Economic agents pile up money for its store of value function and invest to earn some return. Issuers of credit instruments and shares look for money for its medium of exchange function to achieve investments, pay debts and consume. ...
... productive activity – is the ease of money function transformation. Economic agents pile up money for its store of value function and invest to earn some return. Issuers of credit instruments and shares look for money for its medium of exchange function to achieve investments, pay debts and consume. ...
Collateral Shortages, Asset Price and Investment
... agents in this economy agree to disagree).1 There is a unique …nal good used for consumption and investment, and several real and …nancial assets. There are two classes of real assets: one class of assets, which I call trees, are in …xed supply and the other class of assets are in elastic supply. O ...
... agents in this economy agree to disagree).1 There is a unique …nal good used for consumption and investment, and several real and …nancial assets. There are two classes of real assets: one class of assets, which I call trees, are in …xed supply and the other class of assets are in elastic supply. O ...
Macro, Money and Finance: A Continuous
... The recent financial crisis in the US and the subsequent Euro Crisis are vivid reminders of the importance of financial frictions in understanding macroeconomic trends and cycles. While financial markets are self-stabilizing in normal times, economies become vulnerable to a crisis after a run up of ...
... The recent financial crisis in the US and the subsequent Euro Crisis are vivid reminders of the importance of financial frictions in understanding macroeconomic trends and cycles. While financial markets are self-stabilizing in normal times, economies become vulnerable to a crisis after a run up of ...
Globalisation and monetary policy - from virtue to vice?
... to the crisis stemmed from the potential impact of more integrated financial markets on the monetary policy transmission mechanism, for example by increasing the sensitivity of investors to (now lower) interest rate differentials. From a theoretical point of view, some observers argued that key dete ...
... to the crisis stemmed from the potential impact of more integrated financial markets on the monetary policy transmission mechanism, for example by increasing the sensitivity of investors to (now lower) interest rate differentials. From a theoretical point of view, some observers argued that key dete ...
Price rigidity and flexibility: recent theoretical developments
... changing delivery time and improve other auxiliary services rather than change prices. Epstein derives conditions under which an inventory policy, with regard to changes in waiting times and prices, will be optimal, i.e., preferred to a policy where sales are from current production. Epstein shows t ...
... changing delivery time and improve other auxiliary services rather than change prices. Epstein derives conditions under which an inventory policy, with regard to changes in waiting times and prices, will be optimal, i.e., preferred to a policy where sales are from current production. Epstein shows t ...
Economic bubble
An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have been suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation, or bounded rationality. In such cases, the bubbles may be argued to be rational, where investors at every point fully compensated for the possibility that the bubble might collapse by higher returns. These approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. It has also been suggested that bubbles might ultimately be caused by processes of price coordination or emerging social norms.