Questions tagged [monetary-policy]
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. Further goals of a monetary policy are usually to contribute to economic growth and stability, to low unemployment, and to predictable exchange rates with other currencies.
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Would a variable mandatory-savings policy be an effective alternative to interest-rate hikes for reducing consumer demand?
I’m not an economist, but I’ve been thinking about how monetary policy works in an environment where most mortgages are now on fixed rates. For example, in the UK roughly 88% of mortgages are ...
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Is the Fed tight?
I have heard several experts on TV saying that the federal Reserve is currently tight and they need to reduce interest rates to get to neutral. I do not understand this. I look at this chart:
Chart of ...
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Distribution of loans by yields
Does anyone have, or knows where I could find, a distribution curve of household loans by yield/interest rate?
Ideally US but anywhere is good.
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Why is the output gap only loosely correlated with inflation?
It seems, based on some recent reading I've done that the output gap is only loosely correlated with inflation, with the strength of the correlation varying over time
Is this because part of inflation ...
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What happens if members of a monetary union have different reserve requirements?
In this answer by 1muflon1 it's stated that (heavily abridged):
Does joining the Eurozone require a change in the minimum reserve? If yes, is it needed for economic or political reasons?
Once country ...
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Why does increasing the money supply lower the interest rates when the policy rate remains the same?
Let's say a central bank sets a particular policy rate and it also engages in open market operations to increase the supply of money. Why would this lower the interbank rate and the rate the bank ...
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How does a central bank inject reserves into the banking system/the economy initially? [duplicate]
there are a lot of explanations of central bank operations in a functioning monetary system. However, I've been asking myself how a central bank or a government inject the initial reserves into the ...
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Why is money creation in private hands?
I research the topic of money both in academic publications (e.g. Richard Werner, Michael Hudson, David Graeber, etc.) as well as with AI and it seems that we can savely conclude that money creation 1)...
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Financing the United Sovereign Wealth Fund and Strategic Cryptocurrency Reserve
Where will the funds for the United States' Sovereign Wealth Fund and Strategic Cryptocurrency Reserve come from, as proposed by Donald Trump?
Specifically, what are the potential sources of funding, ...
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How much of a role do wages play in interest rate adjustment?
I understand that inflation expectations influence consumer and firm decision-making, however I keep hearing that if people believe inflation with keep high/keep rising, they'll demand higher nominal ...
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Why Has the Price of Gold Been Rising Continuously? Will It Continue to Rise?
Recently, the price of gold has been increasing steadily. What are the main reasons behind this trend? Will the price continue to rise in the future? Additionally, what are the key factors that ...
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Why do income tax slabs even exist? Instead, why not use a continuously increasing function that outputs the tax payable
Seeing people whose income falls just above in a higher tax slab be disappointed, I always wondered why there isn't a tax system where the government made a continuously increasing mathematical ...
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Commercial banks as 'underwriters' of national debt?
With the advent of the Bank of England (BoE) and the idea of a 'funded' debt, the English Government gained access to virtually infinite sums of money, since the BoE could just create any amount of it ...
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How to Embed Bayesian Linear Model to Taylor Rule Estimation?
I am trying hard to grasp the idea of interpreting Taylor rule by utilizing Bayesian Linear regression. My main purpose is to estimate the effects of macroeconomic variables on the determination of ...
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Why do fiscal policies only shift the IS curve?
We have been studying the IS-LM model in class, and while I understand how to derive these curves, I am struggling to understand what the model really represents. I am aware that the model implies an ...
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