Macroeconomic uncertainty
... attach greater probability to the occurrence of both higher and lower growth rates, while still believing the most likely outcome will be growth of 2.5%. This is reflected in Chart 2 by an increase in the width, or ‘second moment’ of the pdf, which shifts from the dashed blue line to the green line; ...
... attach greater probability to the occurrence of both higher and lower growth rates, while still believing the most likely outcome will be growth of 2.5%. This is reflected in Chart 2 by an increase in the width, or ‘second moment’ of the pdf, which shifts from the dashed blue line to the green line; ...
Aggregate Demand Aggregate demand
... the difference between short-run and long-run macroeconomic equilibrium. ...
... the difference between short-run and long-run macroeconomic equilibrium. ...
Chapter 12: Aggregate Demand and Aggregate Supply Analysis
... also have their wages adjusted only once a year. If …rms adjust wages only slowly, a rise in the PL will increase the pro…tability of hiring more workers and producing more output. 3. Menu costs (The costs to …rms of changing prices) make some prices sticky. Firms base their prices today partly on w ...
... also have their wages adjusted only once a year. If …rms adjust wages only slowly, a rise in the PL will increase the pro…tability of hiring more workers and producing more output. 3. Menu costs (The costs to …rms of changing prices) make some prices sticky. Firms base their prices today partly on w ...
Unemployment - Contemporary Issues in Economy
... sary condition of the practical issues, and therefore, this paper will generally consider the theoretical aspect of involuntary unemployment (Walras, 2005, p. 53). It will be shown that the kind of unemployment depends on the character of the original aggregate supply curve of labour. On the one han ...
... sary condition of the practical issues, and therefore, this paper will generally consider the theoretical aspect of involuntary unemployment (Walras, 2005, p. 53). It will be shown that the kind of unemployment depends on the character of the original aggregate supply curve of labour. On the one han ...
NBER WORXING PAPER SERIES REAL RIGIDITIES AND NON-NEUTRALITY OF MONEY Laurence Ball
... definitions of I and the not depend on particular agents). 4Our general results do not depend on how we aggregate over since the economy is price level P (that is, they do below is that if all agents (or, then P equals this price. Our only assumption the sameprice, but one) choose large, all ...
... definitions of I and the not depend on particular agents). 4Our general results do not depend on how we aggregate over since the economy is price level P (that is, they do below is that if all agents (or, then P equals this price. Our only assumption the sameprice, but one) choose large, all ...
Beyond New Keynesian Economics: Towards a Post Walrasian
... Stiglitz argument does no less than change one's conception of what is meant by a partial equilibrium supply-demand equilibrium; it deserves its own classification which conveys the breath of its import. New Keynesian is far too confining. It might be called Stiglitzian, Akerlofian, or even Akerlitz ...
... Stiglitz argument does no less than change one's conception of what is meant by a partial equilibrium supply-demand equilibrium; it deserves its own classification which conveys the breath of its import. New Keynesian is far too confining. It might be called Stiglitzian, Akerlofian, or even Akerlitz ...
Macroeconomics Chamberlin and Yueh
... – u is the unemployment rate and exerts a negative force on wage demands. The reserve army of the unemployed are taken to be the surplus labour that is available to employers. The larger this pool becomes, the more moderate wage demands will be. Workers know that if they push for too higher wages th ...
... – u is the unemployment rate and exerts a negative force on wage demands. The reserve army of the unemployed are taken to be the surplus labour that is available to employers. The larger this pool becomes, the more moderate wage demands will be. Workers know that if they push for too higher wages th ...
Uncertainty Shocks in a Model of Effective Demand No. 12-15
... reduced consumption together imply that investment must rise. If households can adjust their labor supply and consumption and leisure are both normal goods, an increase in uncertainty also induces “precautionary labor supply,” or a desire for the household to supply more labor for an given level of ...
... reduced consumption together imply that investment must rise. If households can adjust their labor supply and consumption and leisure are both normal goods, an increase in uncertainty also induces “precautionary labor supply,” or a desire for the household to supply more labor for an given level of ...
Near-Rational Exuberance - Economic Research
... Judgement is a fact of life in macroeconomic forecasting. It is widely understood that even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”–subjective changes to the forecast which depend on t ...
... Judgement is a fact of life in macroeconomic forecasting. It is widely understood that even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”–subjective changes to the forecast which depend on t ...
Shifts of the Short-Run Aggregate Supply Curve
... (inflation) leads to a rise in interest rates. Investment spending and consumer spending fall. The opposite is true also: lower interest rates will increase AD ...
... (inflation) leads to a rise in interest rates. Investment spending and consumer spending fall. The opposite is true also: lower interest rates will increase AD ...
NEER WORKING PAPER SERIES EQUILIBRIUM MODELS OF ENDOCENOUS FLUCTUATIONS: AN INTRODUCTION Michael Woodford
... Xo, 5o' k0) — ic(x1, ,c(x0, lcd)) ...
... Xo, 5o' k0) — ic(x1, ,c(x0, lcd)) ...
krugman ir macro module 29(65).indd
... First, quiz students to see if they can provide any sort of definition of monetary policy and fiscal policy. Now have them imagine they have been elected to the Senate. If the economy fell into a recession, what kind of policy would they advocate? Some students will know more than others about recen ...
... First, quiz students to see if they can provide any sort of definition of monetary policy and fiscal policy. Now have them imagine they have been elected to the Senate. If the economy fell into a recession, what kind of policy would they advocate? Some students will know more than others about recen ...
Preview - American Economic Association
... normally be accompanied by explanation of how, when demand and supply are not equal, prices and quantities will alter as agents respond to the imbalance in the market, and of how these responses can be expected to re-establish equality of demand and supply. Even if it is the case that the demand and ...
... normally be accompanied by explanation of how, when demand and supply are not equal, prices and quantities will alter as agents respond to the imbalance in the market, and of how these responses can be expected to re-establish equality of demand and supply. Even if it is the case that the demand and ...
NBER WORKING PAPER SERIES IMPERFECT INFORMATION AND STAGGERED PRICE SETTINGS Stephen G. Cecchetti
... and Monetary Economics. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research. ...
... and Monetary Economics. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research. ...
EDMOND MALINVAUD: A TRIBUTE TO HIS
... their utility in what Malinvaud saw as the ultimate mission of all econometric work – “the empirical determination of economic laws”. A mission that contributes to society through data collection, modeling economic activity at all levels, prediction in the wide sense that includes forecasting exerci ...
... their utility in what Malinvaud saw as the ultimate mission of all econometric work – “the empirical determination of economic laws”. A mission that contributes to society through data collection, modeling economic activity at all levels, prediction in the wide sense that includes forecasting exerci ...
Expectations Traps and Coordination Failures with Discretionary
... policy and fiscal policy. Fiscal policy is conducted via a mechanistic rule that relates the income tax rate to the stock of real government debt. Monetary policy, in contrast, is conducted by choosing the nominal interest rate on a one-period nominal bond optimally, but under discretion. Importantl ...
... policy and fiscal policy. Fiscal policy is conducted via a mechanistic rule that relates the income tax rate to the stock of real government debt. Monetary policy, in contrast, is conducted by choosing the nominal interest rate on a one-period nominal bond optimally, but under discretion. Importantl ...
Near-rational exuberance
... adjustment is so pervasive that it is known as the use of “add-factors”– subjective changes to the forecast which depend on the forecaster’s assessment of special circumstances that are not well summarized by the variables that are included in the econometric model. We develop a theory that takes ex ...
... adjustment is so pervasive that it is known as the use of “add-factors”– subjective changes to the forecast which depend on the forecaster’s assessment of special circumstances that are not well summarized by the variables that are included in the econometric model. We develop a theory that takes ex ...
Document
... In the main body of this paper we study an economy where traders have CARA preferences with the same risk-aversion parameter. There is one risky and one riskless asset in the economy. The signals that the agents receive are assumed to be i.i.d. conditional on the risky asset payoff. We commence by a ...
... In the main body of this paper we study an economy where traders have CARA preferences with the same risk-aversion parameter. There is one risky and one riskless asset in the economy. The signals that the agents receive are assumed to be i.i.d. conditional on the risky asset payoff. We commence by a ...
PDF
... quotas' existence lead to 'voluntary' limits on imports of beef. The CJMS (1981) study employed the price adjustment equation, but not the CJMS (1982a) study. Results differed remarkably between studies. For example, supply elasticity fell from 2.817 to 0.77 and the estimated surplus gain to the U.S ...
... quotas' existence lead to 'voluntary' limits on imports of beef. The CJMS (1981) study employed the price adjustment equation, but not the CJMS (1982a) study. Results differed remarkably between studies. For example, supply elasticity fell from 2.817 to 0.77 and the estimated surplus gain to the U.S ...
J. 1050
... are constrained in their purchases and/or sales of factors and commodities (Patinkin (1965), dower (1965), Leijohnufvud (1968) , Barro and Grossman (l97l),Malinvaud (1977)) is of a more recent vintage, the basic insight that when there is a rigidity in some factor or commodity price then the only eq ...
... are constrained in their purchases and/or sales of factors and commodities (Patinkin (1965), dower (1965), Leijohnufvud (1968) , Barro and Grossman (l97l),Malinvaud (1977)) is of a more recent vintage, the basic insight that when there is a rigidity in some factor or commodity price then the only eq ...
BUSINESS CYCLESAND FISCAL POLICY IN AN OPEN ECONOMY
... The present paper develops an intertemporal two-sector model for an open economy. The labour market is assumed to be characterized by imperfect competition implying that the level of economic activity is inefficiently low. There is access to a perfect international capital market. Shocks to producti ...
... The present paper develops an intertemporal two-sector model for an open economy. The labour market is assumed to be characterized by imperfect competition implying that the level of economic activity is inefficiently low. There is access to a perfect international capital market. Shocks to producti ...
Learning from Prices: Amplification and Sentiments ∗ Ryan Chahrour
... as shocks to “sentiments,” but the origin of sentiment in this case is quite different from that described by Angeletos and La’O (2013) or Benhabib et al. (2015).1 First, sentiments in our model emerge as a case of extreme sensitivity to fundamental shocks, rather than relying on extrinsic randomnes ...
... as shocks to “sentiments,” but the origin of sentiment in this case is quite different from that described by Angeletos and La’O (2013) or Benhabib et al. (2015).1 First, sentiments in our model emerge as a case of extreme sensitivity to fundamental shocks, rather than relying on extrinsic randomnes ...
9 Revision – Unemployment
... (frictional, structural and seasonal) may ONLY be cured by supplyside policies. Real-wage unemployment may be cured by supply-side or expansionary demand-side policies, but the demand-side policies do not cure the actual cause of the unemployment. Demand-deficient unemployment may be cured by expans ...
... (frictional, structural and seasonal) may ONLY be cured by supplyside policies. Real-wage unemployment may be cured by supply-side or expansionary demand-side policies, but the demand-side policies do not cure the actual cause of the unemployment. Demand-deficient unemployment may be cured by expans ...