Monetary policy rules in economies with traded and non
... stabilization problem. Second, the traded goods sector in our model is much more sensitive to interest rate and exchange rate ‡uctuations than the nontraded sector. This re‡ects both the key in‡uence of the exchange rate on the demand for home-produced traded goods, and that capital goods are produc ...
... stabilization problem. Second, the traded goods sector in our model is much more sensitive to interest rate and exchange rate ‡uctuations than the nontraded sector. This re‡ects both the key in‡uence of the exchange rate on the demand for home-produced traded goods, and that capital goods are produc ...
Money and Inflation in Colonial Massachusetts
... percent. During the decade 1970-80, the annual inflation rate in the United States never rose above 13.3 percent; in contrast, from 1745 until 1749 the annual inflation rate in Massachusetts never fell below 19 percent. Yet in 1750 Massachusetts abruptly ended its inflation and currency depreciation ...
... percent. During the decade 1970-80, the annual inflation rate in the United States never rose above 13.3 percent; in contrast, from 1745 until 1749 the annual inflation rate in Massachusetts never fell below 19 percent. Yet in 1750 Massachusetts abruptly ended its inflation and currency depreciation ...
Brazil: how macroeconomic variables affect consumer confidence
... known as “rescue packages”, have been used by the world’s leading economies (Europe, Japan and the United States) to put the economy back on track. In short, there is now a consensus that it is not possible to wait for market forces to fix the crisis. An important question that has to be asked in th ...
... known as “rescue packages”, have been used by the world’s leading economies (Europe, Japan and the United States) to put the economy back on track. In short, there is now a consensus that it is not possible to wait for market forces to fix the crisis. An important question that has to be asked in th ...
This PDF is a selection from a published volume from
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
Fiscal Stimulus and Potential Inflationary Risks
... created by the RBI (i.e. net RBI credit to the Government), or through higher aggregate demand associated with an expansionary fiscal stance (which could increase growth in broad money). Empirical estimates of this paper conducted over the sample period 1953-2009 suggest that one percentage point in ...
... created by the RBI (i.e. net RBI credit to the Government), or through higher aggregate demand associated with an expansionary fiscal stance (which could increase growth in broad money). Empirical estimates of this paper conducted over the sample period 1953-2009 suggest that one percentage point in ...
The Information Content of Inflationary Expectations Derived from
... difficulty is to use annual data. However, this involves the loss of a large number of observations. (Our data is for the period 1990:1 until 2004:2, i.e. 58 quarterly observations. The move to annual data leaves us with only 14 observations.) Nevertheless, in order to test the robustness of the re ...
... difficulty is to use annual data. However, this involves the loss of a large number of observations. (Our data is for the period 1990:1 until 2004:2, i.e. 58 quarterly observations. The move to annual data leaves us with only 14 observations.) Nevertheless, in order to test the robustness of the re ...
Minutes of the Federal Open Market Committee June 23-24, 2009
... Minutes of the Meeting of June 23-24, 2009 little, but the number of individuals receiving unemployment insurance benefits continued to increase. Industrial production decreased in April and May but at a slower pace than in the first quarter. Manufacturing output also fell in those months, and the ...
... Minutes of the Meeting of June 23-24, 2009 little, but the number of individuals receiving unemployment insurance benefits continued to increase. Industrial production decreased in April and May but at a slower pace than in the first quarter. Manufacturing output also fell in those months, and the ...
IMPACT OF INTEREST RATE AND INFLATION ON GDP IN
... economic growth and bigger living standards. The country is not part of the EU, but economy is associated to European countries which are the biggest source of investment and trade partners. Although the economy was stroked from the economic crisis in the euro zone, it maintained macroeconomic stabi ...
... economic growth and bigger living standards. The country is not part of the EU, but economy is associated to European countries which are the biggest source of investment and trade partners. Although the economy was stroked from the economic crisis in the euro zone, it maintained macroeconomic stabi ...
A Primer on Inflation
... businesses, and government difficult. Eventually, inflation may strain a country’s social fabric as each group in society competes with other groups to ensure its wages are keeping up with the rising level of prices. The social and economic costs of inflation have made authorities more concerned wit ...
... businesses, and government difficult. Eventually, inflation may strain a country’s social fabric as each group in society competes with other groups to ensure its wages are keeping up with the rising level of prices. The social and economic costs of inflation have made authorities more concerned wit ...
Department of Land Economy
... politicians but by experts (whether banks, economists or others) in the form of an ‘independent’ Central Bank. Such a bank would also have greater credibility in the financial markets and be seen to have a stronger commitment to low inflation than politicians do. Credibility is recognised as paramou ...
... politicians but by experts (whether banks, economists or others) in the form of an ‘independent’ Central Bank. Such a bank would also have greater credibility in the financial markets and be seen to have a stronger commitment to low inflation than politicians do. Credibility is recognised as paramou ...
Monetary Policy Statement December 2008 Contents
... The Official Cash Rate (OCR) has been reduced from 6.5 percent to 5.0 percent. Ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today’s decision. Activity in most of our trading partners is now expected to contract or ...
... The Official Cash Rate (OCR) has been reduced from 6.5 percent to 5.0 percent. Ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today’s decision. Activity in most of our trading partners is now expected to contract or ...
Inflation in Pakistan: Money or Oil Prices
... disposable income leads to the high spending of consumers. Another reason of cost push inflation is when the raw material used in production becomes expensive and when the import prices of products increases due to devaluation of imported goods means the local currency is needed more for purchase of ...
... disposable income leads to the high spending of consumers. Another reason of cost push inflation is when the raw material used in production becomes expensive and when the import prices of products increases due to devaluation of imported goods means the local currency is needed more for purchase of ...
PDF
... It is worth stressing the intuition behind this simple result that inflation is negatively correlated with birth and death rates. By construction each agent has access to an investment technology, that is, each young agent has the option to start a firm that lasts either one or two periods. Over the ...
... It is worth stressing the intuition behind this simple result that inflation is negatively correlated with birth and death rates. By construction each agent has access to an investment technology, that is, each young agent has the option to start a firm that lasts either one or two periods. Over the ...
Social Conflict and the Effectiveness of Aggregate Demand
... some of them not part of the economy as such, that can hold it together, if only for a time.2 Similarly, for economists working within the regulation school,3 what needs to be explained are not so much unsuccessful periods of economic performance in terms of exogenous shocks, policy mistakes, or irr ...
... some of them not part of the economy as such, that can hold it together, if only for a time.2 Similarly, for economists working within the regulation school,3 what needs to be explained are not so much unsuccessful periods of economic performance in terms of exogenous shocks, policy mistakes, or irr ...
Financial Stability and Monetary Policy Erdem BAŞÇI Hakan KARA
... Increased predictability of the macroeconomic relationships during the period of “great moderation” (from 1990s to mid-2000s), led to the misconception that economic dynamics can be described by a simple analytical framework. There was a broad consensus on the “science” of monetary policy. In fact, ...
... Increased predictability of the macroeconomic relationships during the period of “great moderation” (from 1990s to mid-2000s), led to the misconception that economic dynamics can be described by a simple analytical framework. There was a broad consensus on the “science” of monetary policy. In fact, ...
the impact of fiscal policy on the output and inflation
... policy may also affect the supply side that is more long-term, through increased economic capacity. In the macroeconomic stability management, fiscal policy will interact with monetary policy. Keynes stated that there is a significant influence of fiscal policy on the economy. Prior toKeynes, a gove ...
... policy may also affect the supply side that is more long-term, through increased economic capacity. In the macroeconomic stability management, fiscal policy will interact with monetary policy. Keynes stated that there is a significant influence of fiscal policy on the economy. Prior toKeynes, a gove ...
Parkin-Bade Chapter 21
... Price Level, Inflation, and Deflation Unpredictable changes in the inflation rate redistribute income in arbitrary ways between employers and workers and between borrowers and lenders. A high inflation rate is a problem because it diverts resources from productive activities to inflation forecastin ...
... Price Level, Inflation, and Deflation Unpredictable changes in the inflation rate redistribute income in arbitrary ways between employers and workers and between borrowers and lenders. A high inflation rate is a problem because it diverts resources from productive activities to inflation forecastin ...
Weekly Focus - Deflation grabs the headlines again
... On a euro area level real M1 growth and retail sales have also underpinned the expectation of recovery. Looking forward we expect the euro economy to gain some momentum during H1 in response to a sharp decline in gasoline prices, a substantial weakening of the euro and the fading effect of the Ukrai ...
... On a euro area level real M1 growth and retail sales have also underpinned the expectation of recovery. Looking forward we expect the euro economy to gain some momentum during H1 in response to a sharp decline in gasoline prices, a substantial weakening of the euro and the fading effect of the Ukrai ...
The Close Connection Between Nominal
... According to equation 6, in‡ation in excess of long-run target in‡ation is acceptable to the extent that real output falls short of the estimate of potential output that was available when the nominal GDP target was announced. Equivalently, in‡ation in excess of long-run target in‡ation is acceptabl ...
... According to equation 6, in‡ation in excess of long-run target in‡ation is acceptable to the extent that real output falls short of the estimate of potential output that was available when the nominal GDP target was announced. Equivalently, in‡ation in excess of long-run target in‡ation is acceptabl ...