The same time the flips - the other flipside of this is also that those people who managed to move into their own homes had to borrow more money, had to take out more exotic mortgages - options only, adjust rate mortgages - that left them ultimately more vulnerable.
It can buy and sell assets at will, and adjust the IOR rate at will.
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Authorities have been using monetary policy instruments to cool inflation rather than adjust an exchange rate which many consider to be undervalued.
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Its ability to adjust the benchmark rate, in an attempt to minimize the whiplash of recession, has the unfortunate effect of helping one goal at the expense of the other.
This means you can, in effect, get inflation protection for free because these adjustable rate securities adjust for inflation.
Pegged rates are also susceptible to speculative attack, whereas a floating rate can adjust more smoothly to market forces.
Obviously, the bigger concern is whether the stock market is starting to adjust for a slower rate of economic growth.
Of course, that is even greater if you adjust for the faster rate of inflation in China relative to the United States.
Precisely because the exchange rate cannot adjust, it reduces a country's ability to cope with shocks, such as a big change in commodity prices.
It would oblige Argentina to continue trying to adjust its real exchange rate by deflation (cutting nominal wages and prices in nominal terms), a process which has already forced the collapse of many businesses.
On floating-rate debt, the yields can adjust and allow investors to get paid more in a rising-rate environment.
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In order to get real GDP growth figures you collect the nominal GDP figures (fairly easy) and then adjust them by the inflation rate.
One big difference is that Australia, unlike the East Asians before their currencies plunged, has a floating exchange rate which can adjust smoothly to market pressures.
India will also sell from next month government bonds that will adjust returns based on the rate of inflation, a move aimed in part at weaning away small investors from buying gold as a hedge against high inflation.
What should give policymakers in the UK some pause for thought is that in Ireland and Spain, two economies which are locked into the euro and therefore don't have the benefit of an exchange rate which can adjust to their national economic conditions, there has been significant recovery in their respective current account deficits.
Governments cannot use the exchange rate to help the economy adjust to outside shocks, such as a fall in export prices or sharp shifts in capital flows.
Hardest hit, says Robert Gordon of Twenty-First Securities, could be utility stocks and fixed-rate preferreds with no way to adjust upward.
Yes that means taking credit risk, but it also means making loans tied to the prime rate and therefore, loans which adjust with the coming inflation.
Rato said the transition to higher interest rates had gone smoothly so far but was not finished and urged central bankers to communicate their rate plans to markets to let them adjust.
If we adjust the unemployment numbers to a labor force participation rate of 65.8% (which is likely what was assumed by Romer and Bernstein), then we see that the unemployment rate actually peaked at the equivalent of 11.7% in July 2011.
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Because most American Bitcoin vendors automatically adjust their prices to the current dollar-Bitcoin exchange rate, Bitcoin-denominated prices would quickly fall to reflect the new, higher Bitcoin price.
The chief advantage is that this outlaws any national discretion in the conduct of monetary policy: interest rates and the money supply adjust automatically to changes in economic circumstances, with the exchange rate totally fixed.
Floating-rate funds are pools of bank loans made to companies, and the interest rates on those loans adjust as interest rates change.
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