REAL WAGES AND UNEMPLOYMENT WITH EFFECTIVE AND
... Keynes's flexible price model in a competitive goods market has been put forth by post-Keynesian authors such as Davidson (1998), Deprez (1996), Dutt (1987) and Palley (1996: 48, 78). In these models of Keynes's effective demand model of the General Theory, firms are assumed to be atomistic: there i ...
... Keynes's flexible price model in a competitive goods market has been put forth by post-Keynesian authors such as Davidson (1998), Deprez (1996), Dutt (1987) and Palley (1996: 48, 78). In these models of Keynes's effective demand model of the General Theory, firms are assumed to be atomistic: there i ...
Stock Markets: A Spur to Economic Growth
... variety of financial instruments. Through all of these channels, the removal markets are not merely casinos where players Tips for policymakers of barriers to foreign investment can improve come to place bets. Stock markets provide serGiven the important role well-functioning the operation of domest ...
... variety of financial instruments. Through all of these channels, the removal markets are not merely casinos where players Tips for policymakers of barriers to foreign investment can improve come to place bets. Stock markets provide serGiven the important role well-functioning the operation of domest ...
AND DYNAMIC ADJUSTMENT OF EXPORTS AND WAGES Working Paper No. 2078
... mally made by Dornbush (1974) using the ad-hoc expenditure function, later grounded in optimizing behavior by Dornbusch and Mussa (1975). The initial excess demand for money provoked by the devaluation is translated into an excess of income over expenthture which pushes downward the relative price o ...
... mally made by Dornbush (1974) using the ad-hoc expenditure function, later grounded in optimizing behavior by Dornbusch and Mussa (1975). The initial excess demand for money provoked by the devaluation is translated into an excess of income over expenthture which pushes downward the relative price o ...
Economics Clarifications
... discipline of economics. Because there are not enough resources to satisfy people’s wants, decisions have to be made regarding how resources are going to be used and distributed. By learning to analyze how these decisions are made, students have greater knowledge that will allow them to use their ow ...
... discipline of economics. Because there are not enough resources to satisfy people’s wants, decisions have to be made regarding how resources are going to be used and distributed. By learning to analyze how these decisions are made, students have greater knowledge that will allow them to use their ow ...
LECTURE 5 Aggregate Supply
... There are two aggregate supply curves: one for the short-run and one for the longrun. From the macroeconomic point of view, the short run is a period, during which, the changes in the prices final goods and services and in the prices of production factors are not synchronized. We will derive the sho ...
... There are two aggregate supply curves: one for the short-run and one for the longrun. From the macroeconomic point of view, the short run is a period, during which, the changes in the prices final goods and services and in the prices of production factors are not synchronized. We will derive the sho ...
Document
... than it was prior to World war II? If consumers become more confident about the future of the economy, can that confidence lead to faster economic growth? If a government increases spending by $10 billion, could total GDP increases by more than $10 billion? ...
... than it was prior to World war II? If consumers become more confident about the future of the economy, can that confidence lead to faster economic growth? If a government increases spending by $10 billion, could total GDP increases by more than $10 billion? ...
Unit 6- causes of unemployment
... Demand can have multiplied effects throughout the economy as unemployed workers cut back on their consumption due to lower _____________________, causing output of goods/services to fall further and further job cuts made. Businesses will also reduce investment as their confidence in the future falls ...
... Demand can have multiplied effects throughout the economy as unemployed workers cut back on their consumption due to lower _____________________, causing output of goods/services to fall further and further job cuts made. Businesses will also reduce investment as their confidence in the future falls ...
Chapter 2
... b. But winning the lottery makes a person wealthier, so a person will both consume more goods and take more leisure; this is a pure income effect ...
... b. But winning the lottery makes a person wealthier, so a person will both consume more goods and take more leisure; this is a pure income effect ...
public investment and competitiveness in ecowas:an empirical
... opportunities. • It also serves as an important catalyst for economic growth. • After three years of decline, public investment has started to recover as a share of GDP in emerging markets and low income developing countries but remains at historic lows in developed countries. ...
... opportunities. • It also serves as an important catalyst for economic growth. • After three years of decline, public investment has started to recover as a share of GDP in emerging markets and low income developing countries but remains at historic lows in developed countries. ...
70
... The …rst two are SAM equations and the last is, of course, the consumption function. These are three equations in the unknowns Y; S and C: The rest of the symbols in the model are parameters determined exogenously, either from the SAM or other sources such as our consumption-income time series. Note ...
... The …rst two are SAM equations and the last is, of course, the consumption function. These are three equations in the unknowns Y; S and C: The rest of the symbols in the model are parameters determined exogenously, either from the SAM or other sources such as our consumption-income time series. Note ...
Official PDF , 25 pages
... Despite the change in terminology, I adopt as the basic framework the Schultz theory on the two agricultural problems. In addition, I would propose it useful to identify another agricultural problem specifically faced by middle-income countries. This problem is brought about by a lag in productivity ...
... Despite the change in terminology, I adopt as the basic framework the Schultz theory on the two agricultural problems. In addition, I would propose it useful to identify another agricultural problem specifically faced by middle-income countries. This problem is brought about by a lag in productivity ...
Peter McCawley_KeyNote
... poverty remains the single greatest cause of misery; and the surest remedy for poverty is economic growth. It is true that growth can create problems of its own (congestion and pollution, for instance) ... But such ills pale in comparison with the harm caused by the economic backwardness of poor cou ...
... poverty remains the single greatest cause of misery; and the surest remedy for poverty is economic growth. It is true that growth can create problems of its own (congestion and pollution, for instance) ... But such ills pale in comparison with the harm caused by the economic backwardness of poor cou ...
Growth of government and the politics of fiscal policy
... theory shows that over subperiods, Wagner’s law holds as the growth of the ‘welfare state’ exceeds output growth.4 We demonstrate that after government expenditures become a large proportion of the economy, a threshold emerges at which politicians optimally reduce the size of the welfare state— at l ...
... theory shows that over subperiods, Wagner’s law holds as the growth of the ‘welfare state’ exceeds output growth.4 We demonstrate that after government expenditures become a large proportion of the economy, a threshold emerges at which politicians optimally reduce the size of the welfare state— at l ...
PDF
... This prediction has been borne out. Having risen at around 2 per cent per year between 1995 and 1999, the ABS estimate of multifactor of productivity has shown no net increase over the period since then. Over the period 2003-04 to 2007-08) there was an overall decline 0.2 per cent per year. As a res ...
... This prediction has been borne out. Having risen at around 2 per cent per year between 1995 and 1999, the ABS estimate of multifactor of productivity has shown no net increase over the period since then. Over the period 2003-04 to 2007-08) there was an overall decline 0.2 per cent per year. As a res ...
SESSION NOTES OECD/ESCAP/ADB REGIONAL CONSULTATION ON INCLUSIVE GROWTH IN
... A strategy for more inclusive growth is needed in order for the region to ensure sustained growth and continued convergence in living standards towards the advanced economies. Disparities can be reduced or contained through a wide range of policy responses including, among other things, more efficie ...
... A strategy for more inclusive growth is needed in order for the region to ensure sustained growth and continued convergence in living standards towards the advanced economies. Disparities can be reduced or contained through a wide range of policy responses including, among other things, more efficie ...
Kazakhstan - Economy and Values Research Center
... • Though the volume of external public debt has increased by 46% since 2007, Kazakhstan is still considered low indebted country according to WB classification. ...
... • Though the volume of external public debt has increased by 46% since 2007, Kazakhstan is still considered low indebted country according to WB classification. ...
Aggregate Demand
... The mul9plier effect refers to the addi8onal shiRs in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending. That is, each dollar s ...
... The mul9plier effect refers to the addi8onal shiRs in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending. That is, each dollar s ...
IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925.
... the wholesale price index (WPI). In Nigeria the most widely used measure of inflation is the consumer price index because it is readily available on monthly, quarterly and annual basis. In the classicalist theory of monetary transmission mechanism, increased money stock only leads to an inflationary ...
... the wholesale price index (WPI). In Nigeria the most widely used measure of inflation is the consumer price index because it is readily available on monthly, quarterly and annual basis. In the classicalist theory of monetary transmission mechanism, increased money stock only leads to an inflationary ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.