Understanding The Relationship Between Nominal And Real Money Pdf
Understanding The Relationship Between Nominal And Real Money Is Known

That is, the price level is directly related to the nominal money supply and to real money demand (which is a function of real income and the nominal interest rate). Using the above relationship between the aggregate price level, nominal money supply and real money demand we may derive a link between inflation, growth in the money supply.

Causality between money supply and nominal GDP has emerged as arecurrent issue inrecentdecades. There is theoretical debate whether money supply can augment output. This study suggests thatproper money supply is linked with nominal GDP growth. Earn easy money online uk. According to the quantity theory of money themoney supply is positively related with GDP. This studyhasattemptedto establish the causal relationshipof the stipulated variables with the help of. Real variables are those where the effects of prices and/or inflation have been taken out. In contrast, nominal variables are those where the effects of inflation have not been controlled for. As a result, nominal but not real variables are affected by changes in prices and inflation. A few examples illustrate the difference. A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an.

Threaded Mode | Linear Mode

Modern Money & Public Purpose 4: Real vs. Nominal Economy

Author

Message

Helsworth
Heathen
Posts: 8,854
Words count: 1,597,451
Group: Super Moderators
Joined: Nov2008
Status: Offline
Reputation: 146
Experience: 859
Glory Points: 260
Medals: 11

Post: #1

Modern Money & Public Purpose 4: Real vs. Nominal Economy

The Unemployment Action Center Proudly Presents:
DEBT, DEFICITS OR UNEMPLOYMENT? IDENTIFYING REAL THREATS TO GROWTH
Moderator: Nathan C. Tankus, Economics Student, University of Ottawa & Member, Occupy Wall Street Alternative Banking Working Group
Speaker 1: John T. Harvey, Professor of Economics, Texas Christian University
Speaker 2: Jan Kregel, Program Director, Levy Economics Institute of Bard College & Professor of Development Finance, Tallin University of Technology
Tuesday, November 13, 2012
Part of the 2012-2013 Seminar Series on Contemporary Issues in Law and Political Economics organized by the Workers' Rights Student Coalition
http://www.modernmoneyandpublicpurpose.com
TOPIC SUMMARY
This seminar explores the intersection between the real and monetary (or nominal) economy. It addresses the relationship between money and economic growth, and explores popular misconceptions surrounding the 'sustainability' of government deficits, national debt and trade deficits for developed and developing nations. Questions to be addressed include:
Why does unemployment exist in a monetary economy?
How does a nation's developmental stage affect the sustainability of government deficits?
Is national debt a problem, and if so, under what conditions?
Can developing nations 'afford' welfare programs?
What is the relationship between capital flows, trade and exchange rates?
What is the relationship between money creation, exchange rates and global competitiveness?
Further reading: http://www.modernmoneyandpublicpurpose.c..nar-4.html
FEATURED SPEAKERS
John T. Harvey, Ph.D. is a Professor and former Chair of the Department of Economics at Texas Christian University. In 2010, Dr. Harvey published a book titled Currencies, Capital Flows and Crises (Routledge), which presented a Post-Keynesian explanation of exchange rate determination based on the premise that it is financial capital flows and not international trade that represents the driving force behind currency movements. Dr. Harvey currently writes an economics blog for Forbes called Pragmatic Economics, which offers economic commentary in a manner understandable to the general public, and can also be followed on Twitter.
Jan Kregel, Ph.D. is a Professor of Development Finance at Tallinn University of Technology and a Senior Scholar at the Levy Economics Institute of Bard College, where he also serves as the Director of the Institute's Monetary Policy and Financial Structure program. He has previously served as Rapporteur of the President of the UN General Assembly's Commission on Reform of the International Financial System, Director of the Policy Analysis and Development Branch of the UN Financing for Development Office, and Deputy Secretary of the UN Committee of Experts on International Cooperation in Tax Matters.

https://www.patreon.com/SerbanVCEnache

28.01.2013 12:41

« Next Oldest | Next Newest »

Understanding The Relationship Between Nominal And Real Money Pdf

Possibly Related Threads..
Thread:		Author	Replies:	Views:	Last Post
The real, fundamental, cause of low growth in developed economies	CommieScum	3	1,569	10.07.2021 14:55 Last Post: Al1sonPayne
Economics is not a real science (xpost r/badphilosophy)	gamora77	4	1,206	07.04.2020 22:37 Last Post: dragonflare89
Money Growth Does Not Cause Inflation!	Helsworth	18	6,019	26.09.2017 02:04 Last Post: Hilder
The Quantity Theory of Money: A Critique	Helsworth	1	1,137	18.01.2017 23:24 Last Post: VineFynn
A few simple steps to restore the American Economy to greatness again	yangusbeef	4	1,406	14.12.2016 16:13 Last Post: yangusbeef
Why Positive Money is wrong, by Mike King	Helsworth	2	1,775	16.07.2016 08:33 Last Post: Helsworth
Money & the Myth of Barter	Helsworth	0	1,378	09.03.2016 18:26 Last Post: Helsworth
My view on how to fix the US economy(with some added assumptions and perspectives:)	yangusbeef	7	1,966	27.02.2016 18:13 Last Post: Helsworth
Economy relies on excess debt in order to bootstrap	Helsworth	0	1,537	16.12.2015 22:38 Last Post: Helsworth
The 'Angry Birds' Approach to Understanding Deficits in the Modern Economy	Helsworth	0	1,853	16.06.2015 22:30 Last Post: Helsworth

View a Printable Version
Send this Thread to a Friend
Subscribe to this Thread | Add Thread to Favorites