tailieunhanh - Ebook Price stability: Why is it importantfor you?

Lectures Price Stability: Why is it importantfor you? Chapter 4 presents the content: Introduction, Money – a short history, The importance of price stability, Factors determining price development, The ECB’s monetary policy, Invite you to consult. | P R I C E S TA B I L I T Y: W H Y I S I T I M P O R TA N T F O R YO U ? CONTENTS 1 2 3 4 5 Foreword 5 Price stability: why is it important for you? Summary 6 6 Chapter 2 Money – a short history 15 2 Forms of money Functions of money 16 18 1 Chapter 1 Introduction 11 B OX E S Measuring inflation – a simple example 26 28 31 32 3 Chapter 3 The importance of price stability 23 The relationship between expected inflation and interest rates – the so-called “Fisher effect” Hyperinflation What is price stability? Measuring inflation 24 The benefits of price stability 29 25 Demand for cash 2 4 Chapter 4 Factors determining price developments 35 Money and interest rates – how can monetary policy influence interest rates? Factors driving price developments over shorter-term horizons What monetary policy can and cannot do – an overview 36 38 B OX E S Why can central banks influence (ex ante) real interest rates? The role of “sticky” prices 39 40 How do changes in interest rates affect the expenditure decisions taken by consumers and firms? 38 Factors driving price developments over longer-term horizons 44 46 How do changes in aggregate demand affect economic activity and price developments? The quantity theory of money 47 B OX E S The road to the single currency, the euro Convergence criteria Construction and features of the HICP A safety margin against deflation The medium-term orientation of the ECB’s monetary policy 51 54 60 61 62 64 66 67 5 Chapter 5 The ECB’s monetary policy 49 Real economic and financial indicators Euro area macroeconomic projections Monetary aggregates A short historical overview The institutional framework 50 The ECB’s monetary policy strategy Overview of the Eurosystem’s operational framework 57 71 53 The ECB’s reference value for monetary growth 68 Glossary Bibliography 74 76 3 ACKNOWLEDGEMENTS This book has benefited greatly .