years from stability to crisis

... Interlude 55 77 Paul Volcker and the Victory over Inflation 89 The Greenspan Years, from Stability to Crisis 119 Bernanke and the Response to the Great Credit Crisis The Fed and Its Image Concluding ... Martin came to the Fed in the early spring of 1951, he had contributed to restoration of public confidence in the stock exchange and to the Fed’s ability to employ all its powers to fight inflation ... willingness to exert an effort to persuade his fellow policymakers to so depend to a great extent on his artistic bent By “artistic bent,” I mean an ability to sense the times, an ability to act a...

Ngày tải lên: 30/10/2014, 16:54

... still some way to travel Together with other economic policymakers and the private sector, the Federal Reserve remains committed to playing its part to help the U.S economy return to sustained, ... temporary and special factors Generally, the arithmetic contribution of net exports to growth in the gross domestic product tends to be much closer to zero, and that is likely to be the case in coming ... underscored the Committee’s intent to maintain accommodative financial conditions as needed to support the recovery We will continue to monitor economic developments closely and to evaluate whether additional...

Ngày tải lên: 08/03/2014, 08:20

... spending cuts.12 In relation to GDP, government spending was reduced from 50.2 percent to 38.6 percent in only three years between 1986 and 1989 The period from 1987 to 1994 can be regarded as ... significantly relative to average wages (Barrell and Genre 1999) Since many social benefits are linked to the minimum wage, this led to a decrease in many social benefits too In order to make trade unions ... employment (average annual growth of 5.3 percent from 1995 to 2001), which led to a fall in the level of unemployment from 14.7 percent (1994) to percent (2001) The turning point in Irish economic...

Ngày tải lên: 20/02/2014, 20:20

... would continue to transfer reserve deposits among themselves to settle payment orders initiated by their depositors However, banks would greatly enlarge their inventory of reserves, stockouts would ... need to pay interest in this regime The central bank would continue to accommodate the demand for currency as the Fed does today Thus, the interest-on-reserves regime would enable the Fed to exercise ... fact that the Fed cut interest rates sharply in response to two of the most serious financial crises in recent years: the October 1987 stock market break and the turmoil following the Russian...

Ngày tải lên: 06/03/2014, 02:21

... unconditional variance due to FOMC statements Federal funds futures months ahead Treasury yields 2-year 10-year Treasury forward rates to year ahead to years ahead to years ahead to years ahead Greenspan ... appropriate adjustments to policy.”12 (Yet less than five years later, he voluntarily did precisely that.) From today’s standpoint, the objections of Volcker and Greenspan to this minimalist disclosure ... attempted to quantify communication in order to assess both the direction and magnitude of its effects on asset prices—and thus to determine to what extent communication has its intended effects.25 To...

Ngày tải lên: 15/03/2014, 10:20

... inserted in order to capture specific institutional characteristics) The vector of explanatory variables (X) includes: net interest margin over total assets (profitability indicator), other operating ... market investors, need to be considered, together with the other indicators (i.e size, liquidity and capitalization), traditionally used in the bank lending channel literature to assess a bank’s ... risk and incentive problems arising from/ for bank managers Borio and Zhu (2008) argue that financial innovation together with changes to the capital regulatory framework (Basel II) have enhanced...

Ngày tải lên: 15/03/2014, 10:20

... greater their incentives to fund risky firms This trade-off underlies the problem of the regulator, whose objective is to maximize w 4.2 The regulator’s tool If the regulator were to possess perfect ... the crisis may have made monetary policy less able to affect financial stability in the future That ability of monetary policy to influence the financial sector only matters if the bank regulator ... why cannot the bank regulator alone take care of bank risk? Is there really a need to use the blunt tool of monetary policy to achieve several targets (Svensson, 2009)? To analyze this question...

Ngày tải lên: 22/03/2014, 21:20

...  Slovik (2011) p.6. To put this otherwise, the ratio of total loans to total assets for Deutsche Bank fell from 85  percent in 1990 to 27 percent in 2010. For UBS the decline was from 78 percent to 22 percent, and for Bank of  America from 58 to 42 percent. See Slovik Table 1.   ... ratio  of  risk  weighted  assets  to total  assets  fell  almost  monotonically from 70 percent of GDP in 1992 to just 35 percent just prior to the onset of the  crisis.   The  implication  he  ... subsequent easing of policy in the AME’s led to massive capital inflows into SEA contributing to the  subsequent  Asian  crisis in  1997.  This  crisis was  used  as  justification  for  a  failure  to raise  policy ...

Ngày tải lên: 22/03/2014, 23:20

... to r in all states, patient depositors face too much risk To compensate them for this risk, their expected consumption must be increased to the detriment of impatient depositors The results from ... available to patient depositors will yield less consumption than the amount promised to impatient depositors This will create a run as all patient depositors will have an incentive to claim to be ... us from studying issues related to counterparty risk, it provides valuable insights into the optimal policy of central banks during the …rst part of the crisis, which occurred from mid-2007 to...

Ngày tải lên: 29/03/2014, 13:20

... truyền dẫn tỷ giá hối đoái: + Hiệu ứng truyền dẫn hoàn to n: tỷ giá thay đổi 1% số giá nội địa thay đổi 1% + Hiệu ứng truyền dẫn không hoàn to n: tỷ lệ thay đổi số giá nội địa không tương ứng với ... theo tác giả nghiên cứu phân tích hiệu ứng truyền dẫn hoàn to n Thay vào đó, có nhiều nghiên cứu phân tích hiệu ứng truyền dẫn không hoàn to n Ví dụ như: TỔNG QUAN LÝ THUYẾT  Nghiên cứu Goldberg ... (1989)…  Nghiên cứu giá hàng hóa nhập nước nhập không phản ứng hoàn to n với thay đổi tỷ giá Vấn đề đặt hiệu ứng truyền dẫn không hoàn to n? Tổng quan nghiên cứu trước  Dornbusch , 1987, “Exchange...

Ngày tải lên: 10/04/2014, 13:10

Ngày tải lên: 31/05/2014, 01:31

... •Structural vector auto-regression Policy Implications and Conclusions Vietnam has made good progress over the past three decades and has many strengths  Transition from a centrally-planned to a ‘socialist ... ti Inflation dropped to below 20 percent in 1992 and to close t d dt b l ti dt l to 10 percent in 1995  2004 and mid-2008: peaked at 25 percent in 2008  Due in large part to rising international ... (credit to the p economy) shock after j months 25 Impulse responses from Structural VAR estimation Accumulated Responses of Core Inflation to One Standard Deviation Shocks Accum ulated Res pons es to...

Ngày tải lên: 12/07/2014, 12:01

... prices relative to their impact on economic activity and inflation, as would seem to be an important precondition for monetary policy to be used to mitigate asset price movements To raise the precision ... in prices of 15-20%, one is led to conclude that the cost of using monetary policy to slow down asset-price movements in order to reduce threats to financial stability might be large in terms ... that the proponents of using monetary policy to lean against asset-price fluctuations in order to ensure financial stability may have been too hasty to conclude that this is a sensible strategy...

Ngày tải lên: 24/10/2012, 09:40

... available to the banking system, to affect the supply of intermediated loans That is, the intermediary sector as a whole must not be able to completely insulate its lending activities from shocks to ... attempts to monitor Thus it can make sense to create an intermediary to serve as a single "delegated monitor", thereby circumventing these free-rider problems and conserving on aggregate monitoring ... monitors the delegated monitor?" In other words, what is to prevent the intermediary from taking investors' money and 10 squandering it by making bad loans (i.e, by lending without going to the...

Ngày tải lên: 06/09/2013, 05:46

... output stability economic growth stability of financial markets interest-rate stability stability in foreign exchange markets © 2013 Pearson Education, Inc All rights reserved Should Price Stability ... employment (output stability •Price Stability as the Primary, Long-Run Goal of Monetary Policy - Either type of mandate is acceptable as long as it operates to make price stability the primary ... financial crisis is very high • Price and output stability not ensure financial stability 16-13 © 2013 Pearson Education, Inc All rights reserved Lessons for Monetary Policy Strategy from the...

Ngày tải lên: 15/11/2013, 20:27

... regulation Bank of Canada Historical Perspective: The Early Years • • • • • Bretton Wood (1945-1970s) 1971 flexible exchange rate with the U.S Expansionary MP in 1970s lead to high inflation Rise of ... of Reserve Bank to make Policy Targets Agreement • Governor of the Reserve Bank was held accountable for the success of monetary policy • Inflation brought down from above 5% to below 2% by the ... of England was given power to set interest rates (provided independence) • December 2003, target was changed to 2% • Growth in U.K economy has been strong leading to reduction in the unemployment...

Ngày tải lên: 05/01/2014, 16:58

... Factors that Shift the IS Curve • A change in autonomous factors that is unrelated to the interest rate – Changes in autonomous consumer expenditure – Changes ... are positively related to government spending and negatively related to taxes Response of Aggregate Output and Interest Rate to Expansionary Fiscal Policy Effects from Factors That Shift the IS ... money supply • Autonomous changes in money demand Shift in the LM Curve from an Increase in the Money Supply Shift in the LM Curve from a Decrease in the Money Supply Response to a Change in Monetary...

Ngày tải lên: 05/01/2014, 17:00

... adolescents define their autonomy by being resolutely contrary, and often damage to themselves (and others) by being deaf to common sense or to appeals to common standards just to stay contrary Independent ... after (until 1951) The right way to interpret this removal of independence is as a response to the Fed’s failure to respond adequately to (in fact, to its actions to exacerbate) the Great Depression ... that have to with the power to say no when confronted with a demand to buy bonds And these are what support from the society confers on a central bank Other trappings sometimes thought to be associated...

Ngày tải lên: 15/02/2014, 13:20

... it could be said that the forecastability of future policy rates becomes another key to loan rate stability Policy rate smoothing will contribute to loan rate stability by revealing some information ... the owner of each intermediate-goods firm has to pay wages in advance to workers at the beginning of each period The owner thereby needs to borrow funds from a commercial bank since they cannot receive ... denotes the stochastic dis(Ct ;ξt count factor up to period t + s τ f represents a subsidy rate, where τ f = 1/(θ − 1).10 Log-linearizing the resultant first-order condition leads to πt = βEt πt+1...

Ngày tải lên: 17/02/2014, 03:20