He said State Bank of Pakistan had already clarified that the supply and demand of dollar against rupee had reached to its
equilibrium level.
To examine how political contributions influence the
equilibrium level of reform, we use a common agency model of lobbying (Grossman and Helpman 1994), which is a two-stage game.
The economy is now further away from its
equilibrium level. Since the level of natural output is unchanged, the economy will converge to its initial
equilibrium level and will do so in an oscillatory fashion, after a very sharp decrease in output in the first periods.
That is, until rents are ascending, development plans will naturally be postponed; rents will not ascend until vacancy has dropped below
equilibrium level. The commitment to develop is based on many factors other than the movements of rent, but financial feasibility is a major consideration.
"We would further improve the market-oriented mechanism for the formation of renminbi exchange rate, and keep the currency's exchange rate basically stable at a reasonable
equilibrium level," it said.
They make a case for why free markets that provide people what they want (as long as there are incentives in place) at an
equilibrium level can be manipulated or distorted, thereby creating a new equilibrium that they call a "phishing equilibrium."
Finding that the observed REER was 12% above its estimated
equilibrium level in 2015; the report said however, "the depreciation of the ERER should reverse in the coming years" in response to the authorities' fiscal consolidation efforts (mainly through real spending declines) and the projected small improvement in terms of trade with gradual recovery in oil prices.
"The PBOC will continue to intervene and guide the yuan to a reasonable
equilibrium level," Tommy Xie, an economist at Oversea-Chinese Banking Corp.
After all in 2003 it was Vince Cable, a former economics lecturer with minimal business experience, who asked former politics lecturer with no business experience Gordon Brown, then Chancellor: "Is not the brutal truth that...the growth of the British economy is sustained by consumer spending pinned against record levels of personal debt, which is secured, if at all, against house prices that the Bank of England describes as well above
equilibrium level?" He was right - we know what happened next.
Nevertheless, considerable uncertainty surrounds monetary policy on several dimensions: the path of interest rate rises, where market expectations remain for a rate rise in early 2015; the new
equilibrium level, which the Bank has said is likely to be materially below 5 per cent; and the exit strategy for quantitative easing, and in particular whether this is used as an active policy tool.