The role of Monetary Policy in Post-Keynesian Stock-Flow
... held in deposits by households will be exactly equal to the value of debt of firms. Things are not dissimilar, though somewhat more complex, in the model we propose here. One first difference is that we do not assume a “pure credit” economy (as, for example, Lavoie (2001) and Graziani (1996)). In th ...
... held in deposits by households will be exactly equal to the value of debt of firms. Things are not dissimilar, though somewhat more complex, in the model we propose here. One first difference is that we do not assume a “pure credit” economy (as, for example, Lavoie (2001) and Graziani (1996)). In th ...
The liquidity effect in a small open economy model
... existence of a strong intertemporal substitution and consumption smoothing that is only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between ...
... existence of a strong intertemporal substitution and consumption smoothing that is only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between ...
Capital Inflows in a Small Open Economy
... and incomplete information, specially between the Foreign country financial market and the Domestic Currency market. Another source of friction can be a legal barrier, such as a prohibition for foreign agents to hold government debt denominated in domestic currency2 . If these frictions exist, the ...
... and incomplete information, specially between the Foreign country financial market and the Domestic Currency market. Another source of friction can be a legal barrier, such as a prohibition for foreign agents to hold government debt denominated in domestic currency2 . If these frictions exist, the ...
Financial Strategy for Economic Growth in Brazil: a Post Keynesian
... future supply potential of the economy; that is in both investment and productive capacity. Fiscal policy can have a strong impact on the level of economic activity, as it is a powerful tool to stimulate aggregate demand, triggering a multiplier effect on the private income. Fiscal policy should be ...
... future supply potential of the economy; that is in both investment and productive capacity. Fiscal policy can have a strong impact on the level of economic activity, as it is a powerful tool to stimulate aggregate demand, triggering a multiplier effect on the private income. Fiscal policy should be ...
ECON 102 Spring 2014 Homework 3 Due March 26, 2014 1. For this
... (a) The retired worker’s real income would decrease every year by approximately 10 percent of its former value. (b) If the inflation is also in the price the farmer gets for his products, he could gain. But more likely the price increase are mostly in what he buys, since farm machinery, fertilizer, ...
... (a) The retired worker’s real income would decrease every year by approximately 10 percent of its former value. (b) If the inflation is also in the price the farmer gets for his products, he could gain. But more likely the price increase are mostly in what he buys, since farm machinery, fertilizer, ...
How Can the Government Spending Multiplier Be Small at the Zero
... Eggertsson and Woodford (2003), that due to some shock desired savings increase but, because of price stickiness and the ZLB, the fall in the real interest rate is not enough to re-establish the equilibrium. In this situation desired savings must decrease, which only occurs with a potentially sharp ...
... Eggertsson and Woodford (2003), that due to some shock desired savings increase but, because of price stickiness and the ZLB, the fall in the real interest rate is not enough to re-establish the equilibrium. In this situation desired savings must decrease, which only occurs with a potentially sharp ...
Putting Power Back into Growth Theory
... the quantity of output because our unit is not socially agreed upon over time. No amount of intellectual gymnastics can get us out of this dilemma. Without an objective way to decide the year in which prices were ‘correct’6 , our measure of economic scale is simply not well defined. For those who re ...
... the quantity of output because our unit is not socially agreed upon over time. No amount of intellectual gymnastics can get us out of this dilemma. Without an objective way to decide the year in which prices were ‘correct’6 , our measure of economic scale is simply not well defined. For those who re ...
Answers to Homework #3
... change. In (b) the denominator is constant, equal to the cost of the market basket in the base year 2006, and has a value of $16. In (d) the denominator is constant, equal to the cost of the market basket in the base year 2011, and has a value of $20.50. g. Compare your answers in(c) and (e). Are th ...
... change. In (b) the denominator is constant, equal to the cost of the market basket in the base year 2006, and has a value of $16. In (d) the denominator is constant, equal to the cost of the market basket in the base year 2011, and has a value of $20.50. g. Compare your answers in(c) and (e). Are th ...
A Tour of The World
... Why do growth rates differ so much across countries, even over long periods? Has the United States entered a New Economy, in which growth will be much higher in the future? Can other countries emulate China and grow at the same rate? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice ...
... Why do growth rates differ so much across countries, even over long periods? Has the United States entered a New Economy, in which growth will be much higher in the future? Can other countries emulate China and grow at the same rate? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice ...
Austrian Macroeconomics
... model. The usual assumption is that even though investment of some positive amount is realized each period, the stock of capital remains constant. 4 With the Austrian model this assumption is unnecessary. This has the important consequence of integrating macroeconomic theory, growth theory, and busi ...
... model. The usual assumption is that even though investment of some positive amount is realized each period, the stock of capital remains constant. 4 With the Austrian model this assumption is unnecessary. This has the important consequence of integrating macroeconomic theory, growth theory, and busi ...
Ch 33
... monetary base; nominal GDP and real GDP quantity of money; the output gap and the inflation rate federal funds rate; the output gap and the inflation rate core inflation rate; the unemployment rate and the long-term interest rate E. federal funds rate; the quantity of money and the ...
... monetary base; nominal GDP and real GDP quantity of money; the output gap and the inflation rate federal funds rate; the output gap and the inflation rate core inflation rate; the unemployment rate and the long-term interest rate E. federal funds rate; the quantity of money and the ...
Business Investment
... By extension, the growth of investment (the first derivative) is a function of the acceleration (the second derivative) in output: Hence ...
... By extension, the growth of investment (the first derivative) is a function of the acceleration (the second derivative) in output: Hence ...
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... corner. . . . Economies are behaving unpredictably and will continue to do so. The instability is both cause and consequence of the great uncertainty that has been spreading out from the financial markets. Fearful and confused, people react erratically to changing news, reinforcing confused market b ...
... corner. . . . Economies are behaving unpredictably and will continue to do so. The instability is both cause and consequence of the great uncertainty that has been spreading out from the financial markets. Fearful and confused, people react erratically to changing news, reinforcing confused market b ...
How capitalists learned to stop worrying and love the crisis
... groups in society. In order to increase their power, approximated by their income share, capitalists have to strategically sabotage the rest of society. And one of their key weapons in this struggle is unemployment. The effect of unemployment on distribution is not obvious, at least not at first sig ...
... groups in society. In order to increase their power, approximated by their income share, capitalists have to strategically sabotage the rest of society. And one of their key weapons in this struggle is unemployment. The effect of unemployment on distribution is not obvious, at least not at first sig ...
Finding the Equilibrium Real Interest Rate in a
... Many of the recommendations for monetary policy are in the form of how the central bank’s monetary policy rule should be adapted, modified, or even thrown out in light of the findings. Although much of the research is new, it can be traced to a 2003 paper by Laubach and Williams (2003) on estimatin ...
... Many of the recommendations for monetary policy are in the form of how the central bank’s monetary policy rule should be adapted, modified, or even thrown out in light of the findings. Although much of the research is new, it can be traced to a 2003 paper by Laubach and Williams (2003) on estimatin ...
Decreasing Returns, Risk Premium Shocks, and Optimal Monetary
... marginal utility of consumption. If , then the consumption level is constant and equal to . Besides, if , then by using equation (3), we get . ...
... marginal utility of consumption. If , then the consumption level is constant and equal to . Besides, if , then by using equation (3), we get . ...
Economics Exit Exam Preparation
... remain). With case (b), in the LR, an increase in demand leaves price unchanged, but increases market quantity (more firms have entered). Monopoly: A single firm industry A Monopoly Market has "Barriers to Entry." That is, things such as limited access to resources, licenses, huge startup costs, vio ...
... remain). With case (b), in the LR, an increase in demand leaves price unchanged, but increases market quantity (more firms have entered). Monopoly: A single firm industry A Monopoly Market has "Barriers to Entry." That is, things such as limited access to resources, licenses, huge startup costs, vio ...
Putting Power Back Into Growth Theory
... the quantity of output because our unit is not socially agreed upon over time. No amount of intellectual gymnastics can get us out of this dilemma. Without an objective way to decide the year in which prices were ‘correct’6 , our measure of economic scale is simply not well defined. For those who re ...
... the quantity of output because our unit is not socially agreed upon over time. No amount of intellectual gymnastics can get us out of this dilemma. Without an objective way to decide the year in which prices were ‘correct’6 , our measure of economic scale is simply not well defined. For those who re ...
Solow Model of Growth Notes
... What are the main implications of the Solow model? First it says that if two countries have the exact same production capabilities (capital and technology) and the same level of savings, they will reach the same steady state level of growth. Additionally, countries grow quicker when there is less ca ...
... What are the main implications of the Solow model? First it says that if two countries have the exact same production capabilities (capital and technology) and the same level of savings, they will reach the same steady state level of growth. Additionally, countries grow quicker when there is less ca ...
ARCHIVE: MARX, CLASSICAL POLITICAL ECONOMY AND THE
... make up this 'battle-front', such as John Locke in his polemic against 'unproductive' feudal land-ownership and ground-rent, which in his view, 'does not differ at all from usury . The position adopted by the Classical economists becomes particularly clear in their doctrine of 'productive and 'unpro ...
... make up this 'battle-front', such as John Locke in his polemic against 'unproductive' feudal land-ownership and ground-rent, which in his view, 'does not differ at all from usury . The position adopted by the Classical economists becomes particularly clear in their doctrine of 'productive and 'unpro ...
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... is very rich, Kollmann et al. (2015) resort to a very stylized reduced-form representation of the REA consisting of a Phillips curve and a dynamic IS curve only. (Giesen et al., 2012) estimate a multi country model in which, however, Germany as well as the other economies are represented by simple r ...
... is very rich, Kollmann et al. (2015) resort to a very stylized reduced-form representation of the REA consisting of a Phillips curve and a dynamic IS curve only. (Giesen et al., 2012) estimate a multi country model in which, however, Germany as well as the other economies are represented by simple r ...