Power of monetary policy

Advocates of active monetary and fiscal policy view the economy as inherently unstable and believe policy can be used to offset this inherent instability. Critics of active policy emphasize that policy affects the economy with a lag and our ability to forecast future economic conditions is poor, both of which can lead to policy being destabilizing. Advocates of rules for monetary policy argue that discretionary policy can suffer from incompetence, abuse of power, and time inconsistency.

24p larachdumlanat125 01-12-2020 9 1   Download

this study is to investigate inflation in Vietnam on the ground of the taylor rule. We will observe changes in the interest rate and its relationship with inflation so as to interpret the feasibility of the monetary policy in its ability to achieve growth goals and control the inflation based on the basis of a consistent rule.

6p chauchaungayxua8 02-10-2020 15 1   Download

(bq) part 2 book "economics principles and policy" has contents: pricing the factors of production; poverty, inequality, and discrimination; an introduction to macroeconomics; aggregate demand and the powerful consumer; money and the banking system; budget deficits in the short and long run,...and other contents.

435p bautroibinhyen23 02-04-2017 50 3   Download

A central concern of economics is how society allocates its resources. Modern economies rely on two institutions to allocate: markets and governments. But how much of the allocating should be performed by markets and how much by governments? This collection of readings will help students appreciate the power of the market. It supplements theoretical explanations of how markets work with concrete examples, addresses questions about whether markets actually work well and offers evidence that supposed "market failures" are not as serious as claimed. ...

458p buoi_chieu 23-04-2013 72 6   Download

Inflation is contemporary America's most pressing economic, social, and political problem. Reliable sources are available to describe the history of inflation in this and other soc ieties, to explain its cause of effects, and to indicate the 1/ pOlicies necessary to eradicate it.- ·Unfortunately, the vast majority of the American people receives its information on this ~ubject, not from capable economists and historians, but instead from the electronic media -- the performance.

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The different views presented in the previous section suggest different aspects of how the SGP could affect capital market expectations about future developments, and hence prices for fixed government securities. If a strict interpretation of the SGP reduces budgetary flexibility and short-term growth prospects, it might lead to lower short or medium term interest rates. Conversely, if the central bank considers any breach or lax implementation of the Pact as an indication of an unduly expansionary fiscal policy leading to higher inflation, it could foreclose a monetary easing.

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This paper investigates the commonly held belief that government spending is normally financed through a combination of taxes and bond sales. The argument is a technical one and requires a detailed analysis of reserve accounting at the central bank. After carefully considering the complexities of reserve accounting, it is argued that the proceeds from taxation and bond sales are technically incapable of financing government spending and that modern governments actually finance all of their spending through the direct creation of high-powered money.

28p taisaocothedung 12-01-2013 61 4   Download

Clearly, interest rate policy implemented by the Fed’s current operating procedures could not survive in this case. If the Fed persisted in implementing interest rate policy with its current procedures, the Fed would continually sell securities to withdraw reserves and currency. Reserves, for example, would be withdrawn to keep their marginal narrow liquidity services yield from falling below the interest opportunity cost represented by the federal funds rate target.

18p taisaocothedung 09-01-2013 67 5   Download

TTrade, he Senate Committee on Environment and Public Works, the House Committee on Foreign Affairs, the House Committee on Energy and Commerce, the Senate Committee on Foreign Relations, and the House Subcommittee on International Development, Finance, and Monetary Policy requested an assessment of energy and environmental technology transfer to Central Europe and the former Soviet Union. The intent was to determine how U.S. energy technology can help resolve the economic and environmental problems in the region....

210p camnhung_1 14-12-2012 57 4   Download

Federal Reserve Chairman Alan Greenspan is perceived as an enigma, a man whose message is cloaked behind a wall of obtuse language. The markets spend an inordinate amount of time trying to break down that wall, hoping they might at last find the Holy Grail on Greenspanisms. But for most, understanding Greenspan to the point where both he and the Fed are even semi- predictable, and hence, tradable, is an elusive challenge. Greenspan is therefore seen as a distraction to investors who would rather focus on companies and industry fundamentals than monetary policy.

3p duypha 16-07-2009 84 6   Download