Monetary policy
... • After the failure of Lehman Brothers, a major investment bank that many thought was Too Big to Fail, panic gripped financial markets. The major players stopped lending to each other ... There was a silent run on major financial institutions. • In October 2008, Congress passed the Troubled Asset Re ...
... • After the failure of Lehman Brothers, a major investment bank that many thought was Too Big to Fail, panic gripped financial markets. The major players stopped lending to each other ... There was a silent run on major financial institutions. • In October 2008, Congress passed the Troubled Asset Re ...
`ECONOMIC AND PRICE STABILITY`?
... free of potential inflationary or deflationary pressures” At that time, many in the Central Bank, including the present writer, did not fully understand the wisdom enshrined in that statement. It even led to confusion by many that the Bank had been mandated to stabilize the growth rate as well, in a ...
... free of potential inflationary or deflationary pressures” At that time, many in the Central Bank, including the present writer, did not fully understand the wisdom enshrined in that statement. It even led to confusion by many that the Bank had been mandated to stabilize the growth rate as well, in a ...
b. - phoenix
... d. cannot be determined from this information because aggregate demand is not given ...
... d. cannot be determined from this information because aggregate demand is not given ...
b. - phoenix
... d. cannot be determined from this information because aggregate demand is not given ...
... d. cannot be determined from this information because aggregate demand is not given ...
understanding the financial planning process
... •Basic asset decisions •Credit decisions •Insurance decisions •Investment decisions •Retirement and estate decisions ...
... •Basic asset decisions •Credit decisions •Insurance decisions •Investment decisions •Retirement and estate decisions ...
I. Reconciling Psychology and Economics
... Based on the notion of efficient markets and a narrow definition of economic rationality, standard financial theory is unable to explain the boom and bust patterns that characterize real world markets as well as to serve as a basis for the development of tools to improve decision making. Behavioral ...
... Based on the notion of efficient markets and a narrow definition of economic rationality, standard financial theory is unable to explain the boom and bust patterns that characterize real world markets as well as to serve as a basis for the development of tools to improve decision making. Behavioral ...
The causes of the Great Recession:
... The Great Recession of 2008-9 really was great. It was the longest and deepest in its contraction of output that the global capitalist economy, as represented by the 30 advanced capitalist nations of the OECD, has experienced since the Great Depression of 1929-32. From the peak of the previous boom ...
... The Great Recession of 2008-9 really was great. It was the longest and deepest in its contraction of output that the global capitalist economy, as represented by the 30 advanced capitalist nations of the OECD, has experienced since the Great Depression of 1929-32. From the peak of the previous boom ...
Implications of insights from behavioral economics for
... and more within macroeconomics. There are two main reasons for this change. First, an increasing body of research by cognitive psychologists and experimental economists has documented a number of systematic deviations in the thinking and decision-making of human beings compared to the traditional “e ...
... and more within macroeconomics. There are two main reasons for this change. First, an increasing body of research by cognitive psychologists and experimental economists has documented a number of systematic deviations in the thinking and decision-making of human beings compared to the traditional “e ...
The Global Financial Crisis: Overview
... reducing the economy’s demand for goods and services. Finally, the balance sheets of both the U.S. government and the Federal Reserve play starring roles in current events. The Congressional Budget Office projects that federal debt as a ratio to GDP will double over the next decade, from 41% to 82%, ...
... reducing the economy’s demand for goods and services. Finally, the balance sheets of both the U.S. government and the Federal Reserve play starring roles in current events. The Congressional Budget Office projects that federal debt as a ratio to GDP will double over the next decade, from 41% to 82%, ...
Balance Sheet Crises: Causes, Consequences and Responses
... prices of new and existing homes. 5 Aggregate mortgage debt is seen to rise steadily along with the increased asset value of all homes, unperturbed by the minor recession of 2001. Housing wealth reached a peak in the first quarter of 2006, flattened out, fell abruptly throughout 2007 and 2008, perha ...
... prices of new and existing homes. 5 Aggregate mortgage debt is seen to rise steadily along with the increased asset value of all homes, unperturbed by the minor recession of 2001. Housing wealth reached a peak in the first quarter of 2006, flattened out, fell abruptly throughout 2007 and 2008, perha ...
Document
... SG = T – G SP = private saving; SG = government saving; Yd = disposable income; T = net tax. Then SP = (C + I + G + CA) – T – C = I + CA + (G - T) where G – T = government budget deficit. So CA = SP – I – (G – T) A large gov’t budget deficit leads to a large current ...
... SG = T – G SP = private saving; SG = government saving; Yd = disposable income; T = net tax. Then SP = (C + I + G + CA) – T – C = I + CA + (G - T) where G – T = government budget deficit. So CA = SP – I – (G – T) A large gov’t budget deficit leads to a large current ...
What causes housing bubbles? A theoretical and - LaI FU
... Before presenting the empirical literature on the causes of housing bubbles, we will briefly summarize the theoretical models that aim to explain such bubbles. As will be discussed in more detail in section two, bubbles occur once an asset price exceeds the asset’s fundamental value (Brunnermeier 2 ...
... Before presenting the empirical literature on the causes of housing bubbles, we will briefly summarize the theoretical models that aim to explain such bubbles. As will be discussed in more detail in section two, bubbles occur once an asset price exceeds the asset’s fundamental value (Brunnermeier 2 ...
Chapter 17 ppoint
... 8. There are continuing debates about the appropriate role of monetary policy. Some economists advocate the explicit use of an inflation target, but others oppose it. There’s also a debate about whether monetary policy should take steps to manage asset prices and what kind of unconventional monetary ...
... 8. There are continuing debates about the appropriate role of monetary policy. Some economists advocate the explicit use of an inflation target, but others oppose it. There’s also a debate about whether monetary policy should take steps to manage asset prices and what kind of unconventional monetary ...
Existential Angst
... intent of her committee), she characterized the stance as “modestly accommodative” and no longer mentioned the time frame of “coming months.” Even more significant, the message the Fed chair read from the employment report was not that the unemployment rate, at 4.7%, was below the median of all FOMC ...
... intent of her committee), she characterized the stance as “modestly accommodative” and no longer mentioned the time frame of “coming months.” Even more significant, the message the Fed chair read from the employment report was not that the unemployment rate, at 4.7%, was below the median of all FOMC ...
The Political Business Cycle
... 8. There are continuing debates about the appropriate role of monetary policy. Some economists advocate the explicit use of an inflation target, but others oppose it. There’s also a debate about whether monetary policy should take steps to manage asset prices and what kind of unconventional monetary ...
... 8. There are continuing debates about the appropriate role of monetary policy. Some economists advocate the explicit use of an inflation target, but others oppose it. There’s also a debate about whether monetary policy should take steps to manage asset prices and what kind of unconventional monetary ...
Document
... operate “a huge system of credits and debits, of claims and debts, by which capitalist society carries on its daily business of production and consumption.” Thus it is “more useful to start from the credit transactions and look upon capitalist finance as a clearing system that cancels claims and deb ...
... operate “a huge system of credits and debits, of claims and debts, by which capitalist society carries on its daily business of production and consumption.” Thus it is “more useful to start from the credit transactions and look upon capitalist finance as a clearing system that cancels claims and deb ...
Section 1
... demonstrate and explain each step completely (e.g. action taken today, payoffs in the future). 4. Let C(t) and P(t) represent the prices of a European call and put option respectively. K is the strike price of each option, S(t) is the price of a single share of stock, F(t) is the forward price of th ...
... demonstrate and explain each step completely (e.g. action taken today, payoffs in the future). 4. Let C(t) and P(t) represent the prices of a European call and put option respectively. K is the strike price of each option, S(t) is the price of a single share of stock, F(t) is the forward price of th ...
The Impact of the Great Recession on Monetary and Fiscal Policy in
... advocate their position by the assumption that lowering interest rates would create conditions for an expansive monetary policy. Expansive monetary policy would be used as a reaction not only to financial, but to other shocks which may arise. The second reason is the fact that the zero lower bound p ...
... advocate their position by the assumption that lowering interest rates would create conditions for an expansive monetary policy. Expansive monetary policy would be used as a reaction not only to financial, but to other shocks which may arise. The second reason is the fact that the zero lower bound p ...
第七部分
... • If market participants are unsure about the future direction of macroeconomic policies, sterilized intervention may give an ...
... • If market participants are unsure about the future direction of macroeconomic policies, sterilized intervention may give an ...
Newsletter September 2013 - Danielson Financial Group
... highs. Bond prices, which were hurt by the fear of an impending Fed taper (and thus the start of its unwinding of its easy monetary policy), rallied significantly, as the 10-year Treasury yield fell from 2.88% to 2.69%. So why did the Fed elect not to taper? Fed Chairman Ben Bernanke hinted at sever ...
... highs. Bond prices, which were hurt by the fear of an impending Fed taper (and thus the start of its unwinding of its easy monetary policy), rallied significantly, as the 10-year Treasury yield fell from 2.88% to 2.69%. So why did the Fed elect not to taper? Fed Chairman Ben Bernanke hinted at sever ...
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.