Chapter 6
... Terms of trade effect. Terms of trade is the ratio of export price to import price. In the previous example, China’s terms of trade is 6/12 = 0.5 before devaluation. It means one unit of exports can buy ½ units of imports. The terms of trade deteriorates after the devaluation, because it is 6/14 = 0 ...
... Terms of trade effect. Terms of trade is the ratio of export price to import price. In the previous example, China’s terms of trade is 6/12 = 0.5 before devaluation. It means one unit of exports can buy ½ units of imports. The terms of trade deteriorates after the devaluation, because it is 6/14 = 0 ...
Innovation and Development
... Demand flows amongst others signal the shape and focus of research, and the decision as to which technologies from among the range of the possible will be developed and the speed of diffusion. Demand is not articulated at arms length through the market, but may take place through a variety of non-ma ...
... Demand flows amongst others signal the shape and focus of research, and the decision as to which technologies from among the range of the possible will be developed and the speed of diffusion. Demand is not articulated at arms length through the market, but may take place through a variety of non-ma ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... actual volume of sales or employment is equal to the smaller of current supply and demand in that market. When there is excess supply of output, firms demand the cost-minimizing input bundle for producing the quantity of output demanded. When there is excess demand for labor, firms supply only what ...
... actual volume of sales or employment is equal to the smaller of current supply and demand in that market. When there is excess supply of output, firms demand the cost-minimizing input bundle for producing the quantity of output demanded. When there is excess demand for labor, firms supply only what ...
solution 2
... A country's Balance of Payments which is a record of that country's economic transactions with the rest of the world is divided into two principal sections namely the current account and the capital account. The current account relates to transactions relating to the purchase or sale of goods and se ...
... A country's Balance of Payments which is a record of that country's economic transactions with the rest of the world is divided into two principal sections namely the current account and the capital account. The current account relates to transactions relating to the purchase or sale of goods and se ...
SNA production boundary
... supplying some of the services that make up the total supply of goods and services and they are also treated as consumers of the services they produce. They should have had a column to themselves in the Uses side of the SUT. The reason we ignored them is that they are relatively insignificant in man ...
... supplying some of the services that make up the total supply of goods and services and they are also treated as consumers of the services they produce. They should have had a column to themselves in the Uses side of the SUT. The reason we ignored them is that they are relatively insignificant in man ...
Print this article - Nepal Journals Online
... energy to supply not only in the national market but also in the huge markets of neighboring countries. As discussed, domestic market is limited for its full potential to consume. Obviously, hydropower if developed would seek foreign market. In this connection it would be appropriate to quote “The d ...
... energy to supply not only in the national market but also in the huge markets of neighboring countries. As discussed, domestic market is limited for its full potential to consume. Obviously, hydropower if developed would seek foreign market. In this connection it would be appropriate to quote “The d ...
PAGE ONE ECONOMICS NEWSLETTER
... tips (i.e., some portion of their income). As a result, these workers also have to reduce their consumption because they are earning less. If society (as opposed to an individual as in our example) follows this saving pattern, this snowball (or Keynesian multiplier) effect could ultimately lead to d ...
... tips (i.e., some portion of their income). As a result, these workers also have to reduce their consumption because they are earning less. If society (as opposed to an individual as in our example) follows this saving pattern, this snowball (or Keynesian multiplier) effect could ultimately lead to d ...
macroeconomic outcomes of changing bargaining
... policies that rise the wage share and maintain a balanced trade even for exportled economies. We then discuss the relevance of income policies and suggest that profit share flexibility encounters the same kind of political opposition as that used against permanent full employment described by Kaleck ...
... policies that rise the wage share and maintain a balanced trade even for exportled economies. We then discuss the relevance of income policies and suggest that profit share flexibility encounters the same kind of political opposition as that used against permanent full employment described by Kaleck ...
presentation made by Peter Havlik
... ACs will face labour market shortages due to low birth rates and aging populations ...
... ACs will face labour market shortages due to low birth rates and aging populations ...
ADAS - YSU
... • When anything other than price level cause equilibrium GDP to change, the AD curve shifts. ...
... • When anything other than price level cause equilibrium GDP to change, the AD curve shifts. ...
17th Conference of the Research Network Macroeconomics and
... Global imbalances: Should we use fundamental equilibrium exchange rates? Jamel Saadaoui, University of Strasbourg, France ...
... Global imbalances: Should we use fundamental equilibrium exchange rates? Jamel Saadaoui, University of Strasbourg, France ...
department of economics
... The concept of inflation, Demand pull and Cost push inflation, hyperinflation, social cost of inflation, theory of stagflation, The Relation of Wages Changes to Unemployment. The Philips curve – the theoretical basis for the Philips curve. Unemployment and price expectations. The long-run Philips cu ...
... The concept of inflation, Demand pull and Cost push inflation, hyperinflation, social cost of inflation, theory of stagflation, The Relation of Wages Changes to Unemployment. The Philips curve – the theoretical basis for the Philips curve. Unemployment and price expectations. The long-run Philips cu ...
Advances in Environmental Biology Rate and Oil Revenues
... calculated on the basis of inflation are effective. To overcome the problems of inflation in a monetary economy, Internal and external balance of the economy with economic growth, Coordination between monetary policy, fiscal, and exchange and to consider the effect of price changes and exchange rate ...
... calculated on the basis of inflation are effective. To overcome the problems of inflation in a monetary economy, Internal and external balance of the economy with economic growth, Coordination between monetary policy, fiscal, and exchange and to consider the effect of price changes and exchange rate ...
Deflation - Tata Mutual Fund
... • How: Deflation occurs when the annual inflation rate falls below zero percent and prices continue to fall on a sustained basis • Why: Deflation is caused by a shift in the supply and demand curve for goods and interest, particularly a fall in the aggregate level of demand. • So: As of now the Indi ...
... • How: Deflation occurs when the annual inflation rate falls below zero percent and prices continue to fall on a sustained basis • Why: Deflation is caused by a shift in the supply and demand curve for goods and interest, particularly a fall in the aggregate level of demand. • So: As of now the Indi ...
Tanzania`s Growth Experience Following Economic Reforms
... training capacity. This had begun even in the early stages of independence struggle. A strong commitment to investment in human capital in Vietnam included a comprehensive basic education program, resulting in very high levels of literacy in rural as well as urban areas. Adult literacy rates were at ...
... training capacity. This had begun even in the early stages of independence struggle. A strong commitment to investment in human capital in Vietnam included a comprehensive basic education program, resulting in very high levels of literacy in rural as well as urban areas. Adult literacy rates were at ...
135 Fiscal policy in a monetary union from the perspective of the
... union. Therefore, our conclusions have the valor of universality – they can be applied not only to existing monetary unions, but also to those that seized to exist, or will be born in the future. One of the first growth models with explicit public sector was developed by Tobin (1965). It was, howeve ...
... union. Therefore, our conclusions have the valor of universality – they can be applied not only to existing monetary unions, but also to those that seized to exist, or will be born in the future. One of the first growth models with explicit public sector was developed by Tobin (1965). It was, howeve ...
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.