Monetary Science, Fiscal Alchemy
... of a macroeconomist. There are clear parallels between the two macro policy tools. Both can have strong effects on aggregate demand, inflation, and economic activity. Dynamics, expectations, and asset prices play central roles in transmitting the impacts of both policies. Dynamic private behavior cr ...
... of a macroeconomist. There are clear parallels between the two macro policy tools. Both can have strong effects on aggregate demand, inflation, and economic activity. Dynamics, expectations, and asset prices play central roles in transmitting the impacts of both policies. Dynamic private behavior cr ...
Price Level Targeting - The Market Monetarist
... eective. Price level targeting, however, presents the optimal way of anchoring expectations by increasing ination expectations in a deationary environment and vice versa. This improves monetary policy in general and in a zero interest rate environment, which keeps the conventional interest rate o ...
... eective. Price level targeting, however, presents the optimal way of anchoring expectations by increasing ination expectations in a deationary environment and vice versa. This improves monetary policy in general and in a zero interest rate environment, which keeps the conventional interest rate o ...
Chapter 25 Aggregate Demand and Supply Analysis
... The aggregate demand curve is downward sloping because (a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending. (b) a lower price level, holding the nomina ...
... The aggregate demand curve is downward sloping because (a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending. (b) a lower price level, holding the nomina ...
Fiscal and Monetary Policy under Imperfect Commitment Davide Debortoli Universitat Pompeu Fabra
... methodologies and applications to show how different degrees of policymakers’ credibility affect the determination of policy choices, such as taxes or monetary instruments, and more generally the economic outcomes. In particular, I try to understand how the economy behaves when building fully credib ...
... methodologies and applications to show how different degrees of policymakers’ credibility affect the determination of policy choices, such as taxes or monetary instruments, and more generally the economic outcomes. In particular, I try to understand how the economy behaves when building fully credib ...
Theory - Universität Bamberg
... Member States (hereinafter referred to as ‘national central banks’) in favour of Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase ...
... Member States (hereinafter referred to as ‘national central banks’) in favour of Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase ...
CEEC – Transition and Enlargement
... fiscal crisis (default of government bonds) Prof. Dr. Herbert Brücker Lehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer Arbeitsmärkte Universität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker ...
... fiscal crisis (default of government bonds) Prof. Dr. Herbert Brücker Lehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer Arbeitsmärkte Universität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker ...
monetary policy rules and macroeconomic stability: evidence and
... changes in expectations. These sunspot uctuations may arise under this rule because individuals (correctly) anticipate that the Federal Reserve will accommodate a rise in expected ination by letting short-term real interest rates decline (which in turn stimulates the rise in aggregate demand and i ...
... changes in expectations. These sunspot uctuations may arise under this rule because individuals (correctly) anticipate that the Federal Reserve will accommodate a rise in expected ination by letting short-term real interest rates decline (which in turn stimulates the rise in aggregate demand and i ...
Macroeconomics
... devote to producing goods and services is called labor. Labor includes the physical and mental efforts of all the people who work on farms and construction sites and in factories, shops, and offices. The quality of labor depends on human capital, which is the knowledge and skill that people obtain f ...
... devote to producing goods and services is called labor. Labor includes the physical and mental efforts of all the people who work on farms and construction sites and in factories, shops, and offices. The quality of labor depends on human capital, which is the knowledge and skill that people obtain f ...
Understanding Inflation as a Joint Monetary-Fiscal Phenomenon Eric M. Leeper Campbell Leith
... 8. With an increasing number of central banks now paying interest on reserves at rates close to those on short-term government bonds, one important distinction between high-powered money and nominal government bonds has disappeared, removing a principal distinction between monetary and fiscal policy ...
... 8. With an increasing number of central banks now paying interest on reserves at rates close to those on short-term government bonds, one important distinction between high-powered money and nominal government bonds has disappeared, removing a principal distinction between monetary and fiscal policy ...
Understanding Inflation as a Joint Monetary-Fiscal Phenomenon Eric M. Leeper Campbell Leith
... 8. With an increasing number of central banks now paying interest on reserves at rates close to those on short-term government bonds, one important distinction between high-powered money and nominal government bonds has disappeared, removing a principal distinction between monetary and fiscal policy ...
... 8. With an increasing number of central banks now paying interest on reserves at rates close to those on short-term government bonds, one important distinction between high-powered money and nominal government bonds has disappeared, removing a principal distinction between monetary and fiscal policy ...
convergence report 1998
... impediments. This will be paramount in reducing high levels of unemployment, which cannot be regarded as sustainable over the long term. Such policies would also contribute to increasing the ability of Member States economies to respond quickly and effectively to country-specific developments in Sta ...
... impediments. This will be paramount in reducing high levels of unemployment, which cannot be regarded as sustainable over the long term. Such policies would also contribute to increasing the ability of Member States economies to respond quickly and effectively to country-specific developments in Sta ...
Fiscal sustainability report
... these measures, the central projection in each of our reports over the past five years has pointed to an unsustainable fiscal position over the long term. It is important to emphasise that the long-term outlook for public spending and revenues is subject to huge uncertainties. Even backward-looking ...
... these measures, the central projection in each of our reports over the past five years has pointed to an unsustainable fiscal position over the long term. It is important to emphasise that the long-term outlook for public spending and revenues is subject to huge uncertainties. Even backward-looking ...
Geoff Tily, Another “Useful Fiction”?
... the so-called real balance effect.”5 It was in this version that “unemployment became a disequilibrium phenomenon” (24). While “this interpretation … may seem a long way from Keynes,” Backhouse finds that it “fits in well with the second of Keynes’s statements about the relationship between his theo ...
... the so-called real balance effect.”5 It was in this version that “unemployment became a disequilibrium phenomenon” (24). While “this interpretation … may seem a long way from Keynes,” Backhouse finds that it “fits in well with the second of Keynes’s statements about the relationship between his theo ...
Keynes`s economics and the question of public debt
... distinction between the government’s current and capital budgetary items. Keynes opposed discretionary budget deficits of current expenditures over current revenue. However, Keynes did maintain that public capital expenditures should be at least partly debt-financed. As such, Keynes’s concern was w ...
... distinction between the government’s current and capital budgetary items. Keynes opposed discretionary budget deficits of current expenditures over current revenue. However, Keynes did maintain that public capital expenditures should be at least partly debt-financed. As such, Keynes’s concern was w ...
This PDF is a selection from a published volume from
... flexibility and credibility in such an instance? (2) How does an inflation-targeting regime work in a disinflation process? And in a credibilitybuilding process? (3) How can a country deal with shocks that represent important changes in relative prices? (4) Should bands be wider and the central poin ...
... flexibility and credibility in such an instance? (2) How does an inflation-targeting regime work in a disinflation process? And in a credibilitybuilding process? (3) How can a country deal with shocks that represent important changes in relative prices? (4) Should bands be wider and the central poin ...
Public Debt Structure and Dynamics in the Czech Republic
... interest rates in the future and large costs of debt servicing, can be more inflationary than monetary policy that accommodates fiscal policy. This is however not an inevitable consequence of bond-financed deficits. As Sachs and Larrain (1993) have pointed out, debt financing by itself does not allo ...
... interest rates in the future and large costs of debt servicing, can be more inflationary than monetary policy that accommodates fiscal policy. This is however not an inevitable consequence of bond-financed deficits. As Sachs and Larrain (1993) have pointed out, debt financing by itself does not allo ...
The Unemployment Rate The Other Factors - U
... equal to the real wage implied by price setting. (This way of stating equilibrium may sound strange if you learned to think in terms of labor supply and labor demand in your microeconomics course. The relation between wage setting and price setting, on the one hand, and labor supply and labor demand ...
... equal to the real wage implied by price setting. (This way of stating equilibrium may sound strange if you learned to think in terms of labor supply and labor demand in your microeconomics course. The relation between wage setting and price setting, on the one hand, and labor supply and labor demand ...
N - Piazza
... the best textbook is one written with an abiding respect for both student and instructor. What does this mean exactly? In practice it means that we explore more state-ofthe-art research than is customary in undergraduate textbooks, allowing students a point of departure for deeper exploration of var ...
... the best textbook is one written with an abiding respect for both student and instructor. What does this mean exactly? In practice it means that we explore more state-ofthe-art research than is customary in undergraduate textbooks, allowing students a point of departure for deeper exploration of var ...
Download paper (PDF)
... debt maturity policies by the government. We consider a setting in which the government has access to two debt instruments: a non-decaying consol and a decaying perpetuity. Under full commitment, the government holds a highly tilted debt maturity, where each position is large in absolute value and c ...
... debt maturity policies by the government. We consider a setting in which the government has access to two debt instruments: a non-decaying consol and a decaying perpetuity. Under full commitment, the government holds a highly tilted debt maturity, where each position is large in absolute value and c ...
Economics of Money, Banking, and Financial Markets, 8e
... planned investment spending, federal government spending, and state and local government spending. B) Keynes recognized that equilibrium would occur in the economy when total quantity of output supplied (aggregate output produced) equals quantity of output demanded (Yad ), that is, when Y = Yad . C) ...
... planned investment spending, federal government spending, and state and local government spending. B) Keynes recognized that equilibrium would occur in the economy when total quantity of output supplied (aggregate output produced) equals quantity of output demanded (Yad ), that is, when Y = Yad . C) ...
In Defense of Employer of Last Resort: a response to Malcolm Sawyer
... Frankly, we do not know if this is the case - the converse could well be true that people would prefer work over ‘leisure’ even at the same rate of compensation (see Mitchell and Watts, 2001 who conduct simulations using plausible assumptions to demonstrate the conditions under which the ELR is pre ...
... Frankly, we do not know if this is the case - the converse could well be true that people would prefer work over ‘leisure’ even at the same rate of compensation (see Mitchell and Watts, 2001 who conduct simulations using plausible assumptions to demonstrate the conditions under which the ELR is pre ...
NBER WORKING PAPER SERIES MONETARY POLICY MATTER? A NEW TEST IN
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
... On three occasions the System deliberately took policy steps of major magnitude which cannot be regarded as necessary or inevitable economic consequences of contemporary changes in money income and prices. Like the crucial experiments of the physical scientist, the results are so consistent and shar ...
... Fiscal Imbalance and Fiscal Stimulus Fiscal imbalance also addresses a different question than whether increased expenditure during recessions—fiscal stimulus—is a desirable or effective way to moderate the business cycle fluctuations of the aggregate economy.5 The standard Keynesian argument for su ...
Sovereign Defaults during the Great Depression: New Data
... idea that fiscal capacity is the result of a secular process. The idea that countries might be unwilling to default in order not to lose access to financial markets is supported in a broader sense than the one hinted above by the finding that countries, which had a higher amount of dollar-denominate ...
... idea that fiscal capacity is the result of a secular process. The idea that countries might be unwilling to default in order not to lose access to financial markets is supported in a broader sense than the one hinted above by the finding that countries, which had a higher amount of dollar-denominate ...