Alternatively, it can soak up reserves by raising its rate and persuading the banks to reduce borrowing.
Then he said raising the rate was essential to pay state bills and wouldn't hurt the economy.
When money loses value, it's the equivalent of governments raising the rate at which we pay income taxes.
You just went through the fiscal cliff process where you extracted these concessions from the Republicans in raising the rate.
Raising the rate of interest paid on excess reserves can make new bank loans less attractive, thus tempering overall credit creation.
The Federal Reserve is preparing to narrow this spread, first by raising the rate it charges on loans through its discount window.
Mr Jones said it was too early to consider raising the rate of the National Minimum Wage, despite union anger at reports that it is to be frozen until next year.
Raising the rate paid on reserve balances also discourages excessive growth in money or credit, because banks will not want to lend out their reserves at rates below what they can earn at the Fed.
Specifically, he's proposing a November ballot initiative raising the state's top income tax rate to 12.3%, making it the nation's highest, and raising the basic state sales tax rate, already the nation's highest, to 7.75% from 7.25%.
And raising that discount rate really does lower that social cost of carbon emissions.
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Arguments for raising the top rate have been dropped until after the 2012 election.
Raising their tax rate could potentially cost successful partnerships tens of millions of dollars.
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How large was the effect of extended benefits in raising the unemployment rate?
In that way the trapped saver cannot respond by raising the interest rate to compensate for the falling value of debt.
Markets are relieved that the latest round of interest-rate raising wasn't worse.
But given that -- you're asking now the GOP to go further than they've gone before by raising the top rate on top earners.
And that is when the bank is likely to start restoring more normal monetary settings, by raising the base rate from its all-time low of 0.5%.
Instead, the Ryan plan proposed wrenching changes in the areas of taxation, discretionary spending, and entitlements for the sake of raising the growth rate by only 0.22 percentage points.
In other words - and this is how most economists would view it - raising the inflation rate is a cheeky way of achieving the same outcome as an interest rate cut.
Late Thursday afternoon, it surprised the markets by raising the discount rate it charges though its emergency window to 0.75% from 0.50% while keeping its targeted Federal funds rate at between zero and 0.25%.
Mr. Stringer said raising the tax rate to 4.332% from 3.876% for the wealthiest New Yorkers, a move he described as a "tweak, " would allow for a "huge, meaningful" tax cut to 95% of the city.
Would the Fed use a quick depression as a cure to devalue the over-priced durable goods by raising the interest rate as a catalyst to thwart off the irrational exuberance since the economy is doomed to the Self-induced Paralysis?
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The Lib Dems have also ditched any policies that might put off potential supporters, such as raising the basic rate of income tax, and they have stopped banging on about things that do not stir the popular imagination, such as proportional representation.
The report points out that the vast majority (85%) of tax revenues already come from people in the top half of the distribution, but if the government wants to raise more from them, raising the basic rate of income tax for the first time in 40 years would be a decent place to start.
That can be done by making one or two more discount rate only moves, or by raising both rates together with the discount rate going up more.
To explain it another way, consider the opposite policy of raising the payroll tax rate.
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Boeing is considering raising the 737 production rate from 37 aircraft a month to 40.
If oil prices keep weakening, I doubt there will be any considerable raising of the interest rate above zero.
So the new law increases the tax incentive to give by raising his marginal tax rate (and making deductions more valuable).
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