liquidity trapNew Keynesian modelindeterminacymonetary policyTaylor ruleTaylor principleinterest rate ruleforward guidanceI give necessary and sufficient conditions under which interest-rate feedback rules eliminate aggregate instability by inducing a globally unique optimal equilibrium in a canonical New ...
The bank won’t help you reach your long-term retirement goals but they can help you solve pressing problems during crunch time. Make sure you have adequate emergency cash set aside – despite the low returns. Don’t Fall Into This Trap When Rates Are Low When rates are low, you will ...
Though it is not bank reform, we need to end the Greenspan/Bernanke Put. The Fed encouraged risk-taking by the banks by not allowing recessions to damage them. They tightened too late, and loosened too early, and that pushed us into a liquidity trap. Monetary policy that is too loose c...
How would you solve/reduce unemployment by using Keynesian economics? Explain the theory of liquidity preference. How does it help explain the downward slope of the aggregate-demand curve? If the economy is self-regulating, what happens if it is in a recessionary gap?
I wanted to pick a time period when the economy was clearly not in any sort of liquidity trap, in order to show that the zero bound isn’t the real problem. Everyone knows that if fiat money regimes really want to inflate, they can find a way (well perhaps everyone except MMTers.) ...
Any company that aims to provide good service sometimes have drills for an applicant to pass, where they are presented with desperate situations and are then evaluated on how they solve it. Acknowledging problems, applying interventions, solving problems, all while you maintain your poise and ...
How can DMEX solve the pain spots of mining industry with existing mining power? To address this pain spot, the DMEX team proposed the decentralized mining power platform, it is based on Ethereum intelligent contract in the industry. To address the opacity of mining power services provided ...
They’re newer and less proven than Bitcoin or Ether, but they’re trying to solve specific problems in the blockchain world, such as scalability or transaction speed. Keeping this portion small helps you participate in their growth without taking on too much risk. 10% stablecoins/flatcoins:...
Interest rate manipulation may no longer be enough to generate new economic activity if it can’t spur investment, and the attempt at generating economic recovery may stall completely. This is a type ofliquidity trap. When lower interest rates fail to deliver results, Keynesian economists argue th...
A bear trap occurs when the price of a financial asset appears to be on a steady decline. This leads investors to expect a further drop, and they short-sell to profit from the continuing downtrend. The trap is now set: instead of continuing to fall, the price suddenly reverses and goes...