Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn

Question:

Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn that quantitative easing and low interest rates make discipline in government budgeting more important. Debt and deficits must be cut.

How might a government budget deficit and debt threaten financial stability and make the central bank’s job harder?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

See More Books

Question Posted: May 22, 2018 01:22 AM

See More Questions

Central bankers often believe that their hands are tied by the public. Arthur Burns, the Fed chairman under President Nixon, reportedly said in the November 1970 Federal Reserve board meeting that he...
Central bankers are reluctant to try to pop alleged bubbles. Which topics covered in this chapter might explain why they are reluctant to do so?
One of the nightmares of central bankers is the liquidity trap. This occurs when nominal interest rates approach or even equal zero. Once the interest rate has declined to zero, monetary expansion is...
Rocket Science A rocket has total mass Mi = 360 kg, including 330 kg of fuel and oxidizer. In interstellar space it starts from rest, turns on its engine at time t = 0, and puts out exhaust with...
Describe the contemporary team and virtual network structures and why they are being adopted by organizations.
What do economists mean by an exchange rate system? What do economists mean by a managed float exchange rate system?
Variable overheads vary with time. State whether the following statements are true or false:
Consider the following project activities: a. Draw the project network diagram. b. Identify all the paths through the network and their lengths. c. Identify all the critical activities and path(s)....
El inventario inicial es de 5000 unidades. Se vendieron todas las unidades fabricadas durante el perodo y 3000 unidades del inventario inicial. Los costos fijos iniciales del inventario son $25 por...
The budget director of Heather's Florist has prepared the following sales budget. The company had $50,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts...
A tax cut increases _______. A. Aggregate demand but has no effect on aggregate supply B. Aggregate demand because it increases disposable income and increases aggregate supply because it is an...
What is the Feds dual mandate for the conduct of monetary policy? What are the means to achieving the goals of the dual mandate?
Using the following categories, indicate the effects (direction and amount) of the transactions referenced in MD-5. Use + for increase and for decrease. Data From MD-5: Using the data in MD-3,...
Beginning with Eq. (11.16), prove that Data from Eq. 11.16 Data from Eq. 11.21 where we have defined D8 = - 3 2 F = FiFi T = F + F + F Y = F8. 3 Show that this leads to Eq. (11.21) with the...
Consider the light bulb that is the object in Figure 33.28. If you move the bulb to the left, does the image shift left, shift right, or stay in the same place? Data from Figure 33.28 (a) The three...
Two models of light emitted from a light bulb are illustrated in Figure P33.5. (a) Describe the difference in the behavior of light in each model. (b) Describe an experiment that can determine which...
Parallel red and green laser rays are incident on a glass slab as shown in Figure P33.24. Sketch the rays as they pass through the slab and after they have entered the air to the right of the slab....
Consider the following five operations: constructing a luxury cruise ship, operating a casual dining restaurant, staging a professional sports match, manufacturing a patented drug, and rescuing...
In Exercises 123, solve each equation or inequality. Other than , use interval notation to express solution sets of inequalities and graph these solution sets on a number line. x + 4 + x 1= 5
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
Isolated Island has two taxi companies, one owned by Ann and the other owned by Zack. Figure 18.3 shows the market demand curve for taxi rides, D, and the average total cost curve of one of the...
Suppose that Tommy Hilfigers marginal cost of a jacket is a constant $100 and at one of the firms shops, total fixed cost is $2,000 a day. The profit maximizing number of jackets sold in this shop is...
Suppose that Tommy Hilfigers marginal cost of a jacket is a constant $100 and at one of the firms shops, total fixed cost is $2,000 a day. The profit maximizing number of jackets sold in this shop is...
you are analyzing the cost of debt for a firm. Do you know that the firms 14 year maturity, 7.8 Percent coupon bonds are selling at a price of $834. The Barnes pay interest semi annually. If these...
***Please answer the following using excel and showcasing the formulas/calculations used*** thank you so much Financial information on AAA Ltd. is shown below. AAA Ltd. Income Statement For the Year...
2. In an account Anh Paglinawan currently has $216,670.00. At a rate of 8.00% how long will it take for them to have $298,390.00 assuming semi-annually compounding? (Hint: compute the exact years, do...

Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn

Question:

Step by Step Answer:

A large budget deficit means that the government must borrow in the loanable funds market An incr...View the full answer

Foundations of Macroeconomics

Students also viewed these Business questions