Reputation And Liquidity Traps
Download Reputation And Liquidity Traps full books in PDF, epub, and Kindle. Read online free Reputation And Liquidity Traps ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Slow Moving Capital
Author | : Mark Mitchell |
Publisher | : |
Total Pages | : 0 |
Release | : 2007 |
Genre | : Arbitrage |
ISBN | : |
We study three cases in which specialized arbitrageurs lost significant amounts of capital and, as a result, became liquidity demanders rather than providers. The effects on security markets were large and persistent: Prices dropped relative to fundamentals and the rebound took months. While multi-strategy hedge funds who were not capital constrained increased their positions, a large fraction of these funds actually acted as net sellers consistent with the view that information barriers within a firm (not just relative to outside investors) can lead to capital constraints for trading desks with mark-to-market losses. Our findings suggest that real world frictions impede arbitrage capital.
How to Fight Deflation in a Liquidity Trap
Author | : Mr.Gauti B. Eggertsson |
Publisher | : International Monetary Fund |
Total Pages | : 43 |
Release | : 2003-03-01 |
Genre | : Business & Economics |
ISBN | : 1451848587 |
I model deflation, at zero nominal interest rate, in a microfounded general equilibrium model. I show that deflation can be analyzed as a credibility problem if the government has only one policy instrument, money supply carried out by means of open market operations in short-term bonds, and cannot commit to future policies. I propose several policies to solve the credibility problem. They involve printing money or nominal debt and either (1) cutting taxes, (2) buying real assets such as stocks, or (3) purchasing foreign exchange. The government credibly "commits to being irresponsible" by using these policy instruments. It commits to higher money supply in the future so that the private sector expects inflation instead of deflation. This is optimal, since it curbs deflation and increases output by lowering the real rate of return.
How to Fight Deflation in a Liquidity Trap
Author | : Mr. Gauti B. Eggertsson |
Publisher | : International Monetary Fund |
Total Pages | : 43 |
Release | : 2003-03-01 |
Genre | : Business & Economics |
ISBN | : 1451895208 |
I model deflation, at zero nominal interest rate, in a microfounded general equilibrium model. I show that deflation can be analyzed as a credibility problem if the government has only one policy instrument, money supply carried out by means of open market operations in short-term bonds, and cannot commit to future policies. I propose several policies to solve the credibility problem. They involve printing money or nominal debt and either (1) cutting taxes, (2) buying real assets such as stocks, or (3) purchasing foreign exchange. The government credibly "commits to being irresponsible" by using these policy instruments. It commits to higher money supply in the future so that the private sector expects inflation instead of deflation. This is optimal, since it curbs deflation and increases output by lowering the real rate of return.
Credible Commitment to Optimal Escape from a Liquidity Trap
Author | : Mr.Olivier Jeanne |
Publisher | : International Monetary Fund |
Total Pages | : 45 |
Release | : 2004-09-01 |
Genre | : Business & Economics |
ISBN | : 145185790X |
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange rate peg. This way, the central bank can implement the optimal escape from a liquidity trap, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the central bank cannot commit itself to a particular future money supply. It supports the feasibility of Svensson's Foolproof Way to escape from a liquidity trap.
Trade, Reputation, and Child Labor in Twentieth-Century Egypt
Author | : E. Goldberg |
Publisher | : Springer |
Total Pages | : 224 |
Release | : 2004-09-03 |
Genre | : Political Science |
ISBN | : 140397683X |
The conventional wisdom that political and economic actors in colonial countries are passive and reactive is undermined by Goldberg's close examination of the decisions and calculations of leading political and economic actors. Goldberg shows how critical decisions affecting Egypt's integration into the world economy were based on clear understandings of what policies were most likely to advance the interests of leading interest groups, with results that continue to bedevil Egypt's political economy today. Drawing on core concepts in political economy, Goldberg focuses on how Egyptian cotton growers decided to invest in the development of product reputation, developed institutions to protect that reputation, and engaged in coalition politics to protect their interests. The result was a heavy reliance on child labour and thus the failure to provide education and skills necessary for economic development, undermining subsequent attempts to industrialize Egypt and move it away from the production of primary goods. This is a tale of paradoxes and unintended consequences of rational action.
International Macroeconomics in the Wake of the Global Financial Crisis
Author | : Laurent Ferrara |
Publisher | : Springer |
Total Pages | : 300 |
Release | : 2018-06-13 |
Genre | : Business & Economics |
ISBN | : 3319790757 |
This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.
Law and Macroeconomics
Author | : Yair Listokin |
Publisher | : Harvard University Press |
Total Pages | : 281 |
Release | : 2019-03-11 |
Genre | : Law |
ISBN | : 0674976053 |
After 2008, private-sector spending took a decade to recover. Yair Listokin thinks we can respond more quickly to the next meltdown by reviving and refashioning a policy approach, used in the New Deal, to harness law’s ability to function as a macroeconomic tool, stimulating or relieving demand as required under certain crisis conditions.
Monetary Policy Strategy
Author | : Frederic S. Mishkin |
Publisher | : MIT Press |
Total Pages | : 561 |
Release | : 2009-08-21 |
Genre | : Business & Economics |
ISBN | : 0262513374 |
A leading academic authority and policymaker discusses monetary policy strategy from the perspectives of both scholar and practitioner, offering theory, econometric evidence, and extensive case studies. This book by a leading authority on monetary policy offers a unique view of the subject from the perspectives of both scholar and practitioner. Frederic Mishkin is not only an academic expert in the field but also a high-level policymaker. He is especially well positioned to discuss the changes in the conduct of monetary policy in recent years, in particular the turn to inflation targeting. Monetary Policy Strategy describes his work over the last ten years, offering published papers, new introductory material, and a summing up, “Everything You Wanted to Know about Monetary Policy Strategy, But Were Afraid to Ask,” which reflects on what we have learned about monetary policy over the last thirty years. Mishkin blends theory, econometric evidence, and extensive case studies of monetary policy in advanced and emerging market and transition economies. Throughout, his focus is on these key areas: the importance of price stability and a nominal anchor; fiscal and financial preconditions for achieving price stability; central bank independence as an additional precondition; central bank accountability; the rationale for inflation targeting; the optimal inflation target; central bank transparency and communication; and the role of asset prices in monetary policy.