Keynesian and monetarist views of the monetary policy transmission mechanism?
Q. Keynesian and monetarist views of the monetary policy transmission mechanism?
Asked by lu z - Wed Jun 18 19:18:05 2008 - - 1 Answers - 0 Comments
A. According to the traditional Keynesian interest rate channel, a policy induced increase in the short term nominal interest rate leads first to an increase in longer term nominal interest rates, as investors act to arbitrage away differences in risk adjusted expected returns on debt instruments of various maturities, as described by the expectations hypothesis of the term structure. When nominal prices are slow to adjust, these movements in nominal interest rates translate into movements in real interest rates as well. Firms, finding that their real cost of borrowing over all horizons has increased, cut back on their investment expenditures. Likewise, households facing higher real borrowing costs scale back on their purchases of homes,… [cont.]
Answered by 8^3release - Sun Jun 22 08:05:55 2008
Q. Keynesian and monetarist views of the monetary policy transmission mechanism?
Asked by lu z - Wed Jun 18 19:18:05 2008 - - 1 Answers - 0 Comments
A. According to the traditional Keynesian interest rate channel, a policy induced increase in the short term nominal interest rate leads first to an increase in longer term nominal interest rates, as investors act to arbitrage away differences in risk adjusted expected returns on debt instruments of various maturities, as described by the expectations hypothesis of the term structure. When nominal prices are slow to adjust, these movements in nominal interest rates translate into movements in real interest rates as well. Firms, finding that their real cost of borrowing over all horizons has increased, cut back on their investment expenditures. Likewise, households facing higher real borrowing costs scale back on their purchases of homes,… [cont.]
Answered by 8^3release - Sun Jun 22 08:05:55 2008
What are the main Keynesian views and theories for economics?
Q. I know that monetarist views are that inflation is caused by excess money supply and that government intervention in trying to manage growth and aggregate demand doesn't work, but I'm finding it hard to sum up the main Keynesian ideas. If anyone could do this for me I would be very appreciative :) Thanks!
Asked by cafff - Sun Nov 29 16:12:45 2009 - - 1 Answers - 0 Comments
A. Wages are sticky down. Contrary to Classical belief, Keynes pointed out that wages (and prices) do not adjust to economic downturns. So if wages fail to fall unemployment will rise and the economy will be stuck in a vicious cycle of low employment, low demand and low employment.
Answered by Jonathan - Mon Nov 30 16:04:57 2009
Q. I know that monetarist views are that inflation is caused by excess money supply and that government intervention in trying to manage growth and aggregate demand doesn't work, but I'm finding it hard to sum up the main Keynesian ideas. If anyone could do this for me I would be very appreciative :) Thanks!
Asked by cafff - Sun Nov 29 16:12:45 2009 - - 1 Answers - 0 Comments
A. Wages are sticky down. Contrary to Classical belief, Keynes pointed out that wages (and prices) do not adjust to economic downturns. So if wages fail to fall unemployment will rise and the economy will be stuck in a vicious cycle of low employment, low demand and low employment.
Answered by Jonathan - Mon Nov 30 16:04:57 2009
Explain the concept of the Philip curve. Is there any difference between monetarist and Keynesian's views of t
Q. Philip curve?
Asked by Nabil CY - Mon Oct 29 14:16:27 2007 - - 1 Answers - 0 Comments
A. The Phillips curve is a historical inverse relation and tradeoff between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of change in wages paid to labor in that economy. There are at least two different mathematical derivations of the Phillips curve. First, there is the traditional or Keynesian version. Then, there is the new Classical version associated with Robert J. Lucas. The original Phillips curve literature was not based on the unaided application of economic theory. Instead, it was based on empirical generalizations. After that, economists tried to develop theories that fit the data. The Phillips curve equation can be derived from… [cont.]
Answered by ~ CJ ~ - Tue Oct 30 10:58:56 2007
Q. Philip curve?
Asked by Nabil CY - Mon Oct 29 14:16:27 2007 - - 1 Answers - 0 Comments
A. The Phillips curve is a historical inverse relation and tradeoff between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of change in wages paid to labor in that economy. There are at least two different mathematical derivations of the Phillips curve. First, there is the traditional or Keynesian version. Then, there is the new Classical version associated with Robert J. Lucas. The original Phillips curve literature was not based on the unaided application of economic theory. Instead, it was based on empirical generalizations. After that, economists tried to develop theories that fit the data. The Phillips curve equation can be derived from… [cont.]
Answered by ~ CJ ~ - Tue Oct 30 10:58:56 2007
How does Monetary policy effect teh economy? What is teh diff between Classical view and Monetarist View ?
Q. What is the Quantity Theory of Money? I need to write a 5 pg paper please help!
Asked by Justina - Fri Dec 8 14:23:30 2006 - - 2 Answers - 0 Comments
A. 5 pages is a bit much for yahoo answers. start by reading
Answered by meg - Fri Dec 8 19:42:56 2006
Q. What is the Quantity Theory of Money? I need to write a 5 pg paper please help!
Asked by Justina - Fri Dec 8 14:23:30 2006 - - 2 Answers - 0 Comments
A. 5 pages is a bit much for yahoo answers. start by reading
Answered by meg - Fri Dec 8 19:42:56 2006
Can anyone tell me about the different views of the Keynesians and the monetarists in relation to.............
Q. Hey...I dont know a lot about economics, and in order for me to understand the next few chapters of this book i am reading, i want to know if anyone can explainn the different/contrasting views of the Keynesians and the monetarists in relation to an appropriate expansionary policy to bring an economy out of a period of high unemployment cause by not enough aggregate demand
Asked by Steve G - Thu Mar 6 15:46:03 2008 - - 1 Answers - 0 Comments
A. Keynesians believe the economy is incapable of securing full employment in the absence of state intervention. At the microeconomic level, markets are seen to be prone to failure where markets either do not provide, or do not provide adequately, goods and services (see public goods and merit goods). At the macroeconomic level, Keynesians see unemployment as persistent in the absence of state provision. Monetarists see the state, in its role as a provider, as a source of economic instability; the government is inefficient, consumes scarce resources, crowds out private sector activity by taxation and government borrowing, consumes resources and in so doing may add little or nothing to national income and in the worst case inflation not real… [cont.]
Answered by solecism - Thu Mar 6 18:09:40 2008
Q. Hey...I dont know a lot about economics, and in order for me to understand the next few chapters of this book i am reading, i want to know if anyone can explainn the different/contrasting views of the Keynesians and the monetarists in relation to an appropriate expansionary policy to bring an economy out of a period of high unemployment cause by not enough aggregate demand
Asked by Steve G - Thu Mar 6 15:46:03 2008 - - 1 Answers - 0 Comments
A. Keynesians believe the economy is incapable of securing full employment in the absence of state intervention. At the microeconomic level, markets are seen to be prone to failure where markets either do not provide, or do not provide adequately, goods and services (see public goods and merit goods). At the macroeconomic level, Keynesians see unemployment as persistent in the absence of state provision. Monetarists see the state, in its role as a provider, as a source of economic instability; the government is inefficient, consumes scarce resources, crowds out private sector activity by taxation and government borrowing, consumes resources and in so doing may add little or nothing to national income and in the worst case inflation not real… [cont.]
Answered by solecism - Thu Mar 6 18:09:40 2008
what is the monetarist's view of money demand? and how does it relate to velocity?
Q. what is the monetarist's view of money demand? and how does it relate to velocity?
Asked by T.O. - Sun May 4 17:24:16 2008 - - 1 Answers - 0 Comments
A. They think that they can affect demand by giving more money though effect only temporary and only temporary due to contradiction with "money neutrality" theory. So in a long-run money haven't much effect on economy but only on a price-level. Money balances directly interrelated with velocity of money through money equation M/P=Y/V M - quantity of money; P - price level; Y - real GDP V - velocity.
Answered by RUS - Sun May 4 17:47:53 2008
Q. what is the monetarist's view of money demand? and how does it relate to velocity?
Asked by T.O. - Sun May 4 17:24:16 2008 - - 1 Answers - 0 Comments
A. They think that they can affect demand by giving more money though effect only temporary and only temporary due to contradiction with "money neutrality" theory. So in a long-run money haven't much effect on economy but only on a price-level. Money balances directly interrelated with velocity of money through money equation M/P=Y/V M - quantity of money; P - price level; Y - real GDP V - velocity.
Answered by RUS - Sun May 4 17:47:53 2008
Please answer this econ class problem?
Q. Monetarists argue that Central Banks should implement a policy so that the Money Supply grows according to some agreed upon constant rate. Consider the equation P x Q = M x V. The monetarist view implies that: i. Velocity never changes ii. Velocity is not important, even if it does change iii. The growth in money supply should match the growth in real GDP iv. Inflation is a bad thing v. unemployment will generally be low if the above rule is followed a. iv B. i C. i,iii,iv,v D. i,iii,iv E. ii
Asked by unknown - Fri Dec 11 18:13:37 2009 - - 1 Answers - 0 Comments
A. i dont know why you wouldn't agree
Answered by Sarah - Mon Dec 14 21:09:41 2009
Q. Monetarists argue that Central Banks should implement a policy so that the Money Supply grows according to some agreed upon constant rate. Consider the equation P x Q = M x V. The monetarist view implies that: i. Velocity never changes ii. Velocity is not important, even if it does change iii. The growth in money supply should match the growth in real GDP iv. Inflation is a bad thing v. unemployment will generally be low if the above rule is followed a. iv B. i C. i,iii,iv,v D. i,iii,iv E. ii
Asked by unknown - Fri Dec 11 18:13:37 2009 - - 1 Answers - 0 Comments
A. i dont know why you wouldn't agree
Answered by Sarah - Mon Dec 14 21:09:41 2009
discuss the various competing views of macroeconomics.?
Q. want to learn about the different perspectives of macroeconomics theory.that is about th keynesians, classicals, noe-keynesians, neo-classicals and the monetarists.
Asked by joyce a - Wed Feb 14 07:44:57 2007 - - 6 Answers - 0 Comments
A. I'm an econ grad student at UGA--here's the short and sweet answer: Classical is the basis of macro--the first real theory; supported by Adam Smith and his "invisible hand" concept. When production and GDP are not at their equilibrium (above or below) the market will quickly (within a year or two) work back towards equilibrium all on its own. That is, the market is self-correcting, so the government should not take action. Keynes offered another view in response to the Great Depression--sometimes the market isn't self correcting (producers wont lower prices). He didn't explain why they would not; but the idea is that government should take action to solve recessions via increased government spending, increase money supply, and/or… [cont.]
Answered by Econissexy - Wed Feb 14 13:00:41 2007
Q. want to learn about the different perspectives of macroeconomics theory.that is about th keynesians, classicals, noe-keynesians, neo-classicals and the monetarists.
Asked by joyce a - Wed Feb 14 07:44:57 2007 - - 6 Answers - 0 Comments
A. I'm an econ grad student at UGA--here's the short and sweet answer: Classical is the basis of macro--the first real theory; supported by Adam Smith and his "invisible hand" concept. When production and GDP are not at their equilibrium (above or below) the market will quickly (within a year or two) work back towards equilibrium all on its own. That is, the market is self-correcting, so the government should not take action. Keynes offered another view in response to the Great Depression--sometimes the market isn't self correcting (producers wont lower prices). He didn't explain why they would not; but the idea is that government should take action to solve recessions via increased government spending, increase money supply, and/or… [cont.]
Answered by Econissexy - Wed Feb 14 13:00:41 2007
Economic help 10 pts!?
Q. What is the basic equation of monetarism? What ll be the monetarist s view of the macroeconomic instability?
Asked by Rick - Wed Dec 10 13:08:05 2008 - - 2 Answers - 0 Comments
A. Monetarism Equation Of Exchange M V = P Q ; ( PQ = NGDP) where M is a measure money supply, V represents the velocity of money, P is the price level and Q is the output of the economy. From this equation we can write: mv p = --- Q
Answered by David Salti - Wed Dec 10 13:16:27 2008
Q. What is the basic equation of monetarism? What ll be the monetarist s view of the macroeconomic instability?
Asked by Rick - Wed Dec 10 13:08:05 2008 - - 2 Answers - 0 Comments
A. Monetarism Equation Of Exchange M V = P Q ; ( PQ = NGDP) where M is a measure money supply, V represents the velocity of money, P is the price level and Q is the output of the economy. From this equation we can write: mv p = --- Q
Answered by David Salti - Wed Dec 10 13:16:27 2008
I need some Macroeconomics help?
Q. Can someone please help me with these 3 multiple choice questions? 1) A difference between the monetarist and (Modern) Keynesian views on monetary policy is that monetarists... A- believe monetary policy can affect output while Keynesians do not. B- believe monetary policy is ineffective while the Keynesians believe it is effective. C- favor a constant money growth rule while the Keynesians oppose such a rule D- favor discretionary monetary policy while the Keynesians do not 2) With respect to Friedman's natural rate theory, expansionary monetary policies can... A- move output above the natural rate but leave unemployment at the natural rate B- move output above the natural rate and move the unemployment rate below the natural rate… [cont.]
Asked by Chase - Mon Dec 1 13:52:48 2008 - - 1 Answers - 0 Comments
A. Well I can tell you what I think the answers are but I hate these type of questions because it's possible to argue that more than one is true. Anyway. 1) C 2) B 3) This one's a nightmare to answer. The point is that agents have rational expectations, that is they are correct in their expectations on average given the information they have. I would say the most likely is B.
Answered by John G - Mon Dec 1 16:39:26 2008
Q. Can someone please help me with these 3 multiple choice questions? 1) A difference between the monetarist and (Modern) Keynesian views on monetary policy is that monetarists... A- believe monetary policy can affect output while Keynesians do not. B- believe monetary policy is ineffective while the Keynesians believe it is effective. C- favor a constant money growth rule while the Keynesians oppose such a rule D- favor discretionary monetary policy while the Keynesians do not 2) With respect to Friedman's natural rate theory, expansionary monetary policies can... A- move output above the natural rate but leave unemployment at the natural rate B- move output above the natural rate and move the unemployment rate below the natural rate… [cont.]
Asked by Chase - Mon Dec 1 13:52:48 2008 - - 1 Answers - 0 Comments
A. Well I can tell you what I think the answers are but I hate these type of questions because it's possible to argue that more than one is true. Anyway. 1) C 2) B 3) This one's a nightmare to answer. The point is that agents have rational expectations, that is they are correct in their expectations on average given the information they have. I would say the most likely is B.
Answered by John G - Mon Dec 1 16:39:26 2008
how would you design monetary policy considering the current macro economic problems?
Q. from a monetarists point of view
Asked by ilstugotsil - Sun Dec 10 00:00:31 2006 - - 1 Answers - 0 Comments
A. Inflation is low and GDP growth is slowing so the fed will probably lower interest rates. The fact that long term rates are lower than short term means the bond market thinks they will.
Answered by meg - Sun Dec 10 03:09:20 2006
Q. from a monetarists point of view
Asked by ilstugotsil - Sun Dec 10 00:00:31 2006 - - 1 Answers - 0 Comments
A. Inflation is low and GDP growth is slowing so the fed will probably lower interest rates. The fact that long term rates are lower than short term means the bond market thinks they will.
Answered by meg - Sun Dec 10 03:09:20 2006
The policy position that the supply of money should be increased at a constant rate each year is a view of:?
Q. a)Keynesians b) monetarists c)central bankers d)supply siders e)liberals
Asked by Hollie Q - Mon May 19 14:22:51 2008 - - 1 Answers - 0 Comments
A. b is the answer
Answered by Dan C - Thu May 22 15:33:08 2008
Q. a)Keynesians b) monetarists c)central bankers d)supply siders e)liberals
Asked by Hollie Q - Mon May 19 14:22:51 2008 - - 1 Answers - 0 Comments
A. b is the answer
Answered by Dan C - Thu May 22 15:33:08 2008
The Monetarist and Keynesian theories present alternative views on how the money supply affects the economy.
Q. On some issues they agree but on others they disagree. This question tests your knowledge of these areas of agreement and disagreement. Select the multiple choice option that best describes the statement below. "The effectiveness of monetary policy on the economy depends primarily on how monetary policy influences interest rates." a. Monetarists agree with this statement but Keynesians do not. B. Neither Monetarists nor Keynesians agree with this statement. C. Monetarists and Keynesians agree with this statement. D. Keynesians agree with this statement but Monetarists do not.
Asked by TF - Thu Jul 31 20:47:10 2008 - - 1 Answers - 0 Comments
A. D. Keynesian's agree with this statement but Monetarists do not. For Keynesian's IS-LM model show it all, but for Monetarists - they believed that higher interest rates is due to excessive fiscal policies.
Answered by Jurij-EU - Mon Aug 4 17:40:28 2008
Q. On some issues they agree but on others they disagree. This question tests your knowledge of these areas of agreement and disagreement. Select the multiple choice option that best describes the statement below. "The effectiveness of monetary policy on the economy depends primarily on how monetary policy influences interest rates." a. Monetarists agree with this statement but Keynesians do not. B. Neither Monetarists nor Keynesians agree with this statement. C. Monetarists and Keynesians agree with this statement. D. Keynesians agree with this statement but Monetarists do not.
Asked by TF - Thu Jul 31 20:47:10 2008 - - 1 Answers - 0 Comments
A. D. Keynesian's agree with this statement but Monetarists do not. For Keynesian's IS-LM model show it all, but for Monetarists - they believed that higher interest rates is due to excessive fiscal policies.
Answered by Jurij-EU - Mon Aug 4 17:40:28 2008
The Monetarist and Keynesian theories present alternative views on how the money supply affects the economy.
Q. On some issues they agree but on others they disagree. This question tests your knowledge of these areas of agreement and disagreement. Select the multiple choice option that best describes the statement below. "The value of velocity in the equation of exchange is reasonably stable." a. Monetarists and Keynesians agree with this statement. B. Neither Monetarists nor Keynesians agree with this statement. C. Monetarists agree with this statement but Keynesians do not. D. Keynesians agree with this statement but Monetarists do not.
Asked by TF - Thu Jul 31 21:02:05 2008 - - 1 Answers - 0 Comments
A. C. Monetarists agree with this statement but Keynesian's do not. But post-Keynesian's actually partially agree with that.
Answered by Jurij-EU - Mon Aug 4 17:20:54 2008
Q. On some issues they agree but on others they disagree. This question tests your knowledge of these areas of agreement and disagreement. Select the multiple choice option that best describes the statement below. "The value of velocity in the equation of exchange is reasonably stable." a. Monetarists and Keynesians agree with this statement. B. Neither Monetarists nor Keynesians agree with this statement. C. Monetarists agree with this statement but Keynesians do not. D. Keynesians agree with this statement but Monetarists do not.
Asked by TF - Thu Jul 31 21:02:05 2008 - - 1 Answers - 0 Comments
A. C. Monetarists agree with this statement but Keynesian's do not. But post-Keynesian's actually partially agree with that.
Answered by Jurij-EU - Mon Aug 4 17:20:54 2008
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