Given the different risk preferences of economic agents, the resulting redistribution of risks to those who were most capable of managing them was believed to enhance the efficiency of the whole economy.
Because the finances for this function are sparse, it is difficult for the relationship between the part that forms the individual economic entities and the economy as a whole to penetrate to all members of society.
The United Nations Universal Declaration of Human Rights requires each individual, every organ of society and, by extension, economic agents and businesses, to contribute towards the observation of these rights.
In economics, it is generally assumed that most decision-making by economic entities does not depend solely on events in the present; they are also affected by predictions and expectations of future events.
Looking back at the experience of Japan during the bubble period, the expectations of economic agents became extremely bullish, to an extent which seems incredible in hindsight, and now we are facing a completely opposite situation.
What we should do is to relax or strengthen market controls and cause the economic entities to compete or cooperate with one another depending on the trends of goods.
The two partners have already put pen on paper on a memorandum of understanding(MoU) that will enable the Deutsche Telekom's T-Labs to source the skills for designing an autonomous economic agents(AEAs) system.
First, the risk taking capacity of various economic entities was severely damaged, and, as a result, the effectiveness of conventional monetary policy was seriously hampered.
More precisely, risk perception and risk tolerance of economic agents change gradually but steadily under benign economic and financial conditions, thereby affecting their risk-taking behavior.
To ensure that this recovery will become sustainable and to overcome deflation, the Bank considers it essential that a wide range of economic entities continue to make efforts to revitalize the economy.
One of the distinct differences between Japan and the United States in terms of the conduct of monetary policy amid balance-sheet adjustments concerns the income transfer effects between economic entities.
During a pre-crisis period, benign economic conditions, just like the"Great Moderation" prior to the current crisis, usually prevail for some time, and the risk-taking attitude of economic agents becomes aggressive.
For Japan's economy to escape this situation and restore its vitality, it is most important to first overcome deflation and change the mindsets of economic entities such as firms and households so that they become more proactive.
The financial services industry is immense, developing a variety of financial products, taking on various risks through the sale of such products, and reallocating these risks to economic agents.
For Japan's economy to get out of the vicious cycle and recover sustainably, it is critical first to overcome deflation, thereby turning the behavior of economic entities, such as firms and households, positive.
With a steady eye on regional, national and international developments, College of DuPage fulfills its mission as an educational and economic agent of change for the residents it serves.
In fact, as the disinflationary trend continues, short- and medium-term inflation expectations by economic entities and the markets have already started to decline somewhat in the euro area as well.
A horizontal balance means a balance of economic entities, that is, the balance of finance, private sector, household budgets and overseas income and expenditure. A vertical balance is like the relationship between the current account and capital account.
Of course, we still cannot deny the possibility that the demand for excess reserves will lead to a change in the portfolio of economic entities and ultimately stimulate economic activity in the long run.
Introduction The Flow of Funds Accounts(hereafter FFA) are comprehensive financial statistics that show the movements of funds among economic entities such as enterprises, households, and the government, and the claim/debt relationships between them.
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