Download or read book The Fear Economy A Theory of Output Interest and Safe Assets written by Ruchir Agarwal and published by International Monetary Fund. This book was released on 2022-09-09 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a fear theory of the economy, based on the interplay between fear of rare disasters and the interest rate on safe assets. To do this, I study the macroeconomic consequences of government-administered interest rates in the neoclassical real business cycle model. When the government has the power to fix the safe real interest rate, the gap between the `sticky real safe rate' and the `neutral rate' can generate far-reaching aggregate distortions. When fear exogenously rises, the demand for safe assets rise and the neutral rate falls. If the central bank does not lower the safe rate by the same amount, savings rise leading to a decline in consumption and aggregate demand. The same mechanism works in reverse, when fear falls. Quantitatively, I show that a single fear factor can simultaneously (i) generate cross-correlations in output, labor, consumption, and investment consistent with the postwar US economy; and (ii) generates variation in equity prices, bond prices, and a large risk premium in line with the asset pricing data. Six novel insights emerge from the model: (1) actively regulating the safe interest rate (in both directions) can mitigate the fluctuations generated by fear cycles; (2) recessions will be deeper and longer when central banks accept the zero lower bound and are unwilling to use negative rates; (3) a commitment to use negative rates in recessions—even if never implemented—raises both the short- and long-run real neutral rates, and moderates the business cycle; (4) counter-cyclical fiscal policy can act as disaster insurance and be expansionary by reducing fear; (5) quantitative easing can be narrowly effective only when fear is high at the lower bound; and (6) when fear is high, especially at the lower bound, policies that boost productivity also help fight recessions.
Download or read book The Great Issues written by Wharton Barker and published by Philadelphia, W. Barker. This book was released on 1902 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Standard written by and published by . This book was released on 1917 with total page 772 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulation of Railway Rates written by United States. Congress. Senate. Committee on Interstate Commerce and published by . This book was released on 1905 with total page 1170 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mechanical Excavation in Mining and Civil Industries written by Nuh Bilgin and published by CRC Press. This book was released on 2013-12-05 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: The secret to streamlined project scheduling is a solid understanding of basic rock cutting mechanics. Comparing theoretical values with experimental and real-world results, Mechanical Excavation in Mining and Civil Industries explains rock cutting theories for chisel, conical, disc, and button cutters. The authors provide numerical examples on the effect of independent variables on dependent variables, as well as examples from real-life mining and civil engineering jobs. The book assists students and engineers in machinery selection and performance prediction, and discusses rock cutting mechanics and mechanical miners.
Download or read book International Library of Technology written by and published by . This book was released on 1909 with total page 606 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Steamship Conference Study written by United States. Congress. House. Committee on Merchant Marine and Fisheries and published by . This book was released on 1959 with total page 1056 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Druggists Circular written by and published by . This book was released on 1916 with total page 812 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Spectator written by and published by . This book was released on 1909 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The International Encyclopaedic Dictionary written by and published by . This book was released on 1901 with total page 1578 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book American Lumberman written by and published by . This book was released on 1894 with total page 1420 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The American Dictionary and Cyclopedia written by Robert Hunter and published by . This book was released on 1900 with total page 514 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Appletons Annual Cyclopaedia and Register of Important Events written by and published by . This book was released on 1890 with total page 894 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The National Underwriter written by and published by . This book was released on 1903 with total page 816 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Journal of the Institute of Transport written by and published by . This book was released on 1927 with total page 1020 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Executive Documents of the State of Minnesota for the Year written by Minnesota and published by . This book was released on 1887 with total page 834 pages. Available in PDF, EPUB and Kindle. Book excerpt:
