“Quantity Theory of Money and its Applicability: The Case of
... Ashra et al (2004) examined the relationship between money, output and price level for India and found bidirectional causality between money and price level. Having used a large panel of low and high inflation countries, Gravwe and Polan (2005) found that the QTM prediction that an expansion of the ...
... Ashra et al (2004) examined the relationship between money, output and price level for India and found bidirectional causality between money and price level. Having used a large panel of low and high inflation countries, Gravwe and Polan (2005) found that the QTM prediction that an expansion of the ...
Principles of Economics, Case/Fair/Oster, 10e
... The Determination of Equilibrium Output (Income) The Saving/Investment Approach to Equilibrium Because aggregate income must be saved or spent, by definition, Y ≡ C + S, which is an identity. The equilibrium condition is Y = C + I, but this is not an identity because it does not hold when we are ou ...
... The Determination of Equilibrium Output (Income) The Saving/Investment Approach to Equilibrium Because aggregate income must be saved or spent, by definition, Y ≡ C + S, which is an identity. The equilibrium condition is Y = C + I, but this is not an identity because it does not hold when we are ou ...
The Principle of Effective Demand and the State of Post Keynesian
... changes in the level of income or activity and not the rate of interest that restores equality to saving and investment. This is fine as far as it goes but it leaves the role of rate of interest and the marginal efficiency of capital unaccounted for in what is usually pres ...
... changes in the level of income or activity and not the rate of interest that restores equality to saving and investment. This is fine as far as it goes but it leaves the role of rate of interest and the marginal efficiency of capital unaccounted for in what is usually pres ...
Unit 5 Test …may the force be with you…….
... The increase in expenditures means that government spending rises. The aggregate demand curve shifts to the right. Aggregate demand shifts farther if there is a multiplier effect or an investment accelerator and shifts less if there is crowding out or if taxes are raised to increase government expen ...
... The increase in expenditures means that government spending rises. The aggregate demand curve shifts to the right. Aggregate demand shifts farther if there is a multiplier effect or an investment accelerator and shifts less if there is crowding out or if taxes are raised to increase government expen ...
Slides - MyWeb
... Because many firms in the economy set prices as well as output, we can say an “aggregate supply curve” is really a “price/output response” curve—a curve that traces out the price decisions and output decisions of all firms in the economy under a given set of circumstances. ...
... Because many firms in the economy set prices as well as output, we can say an “aggregate supply curve” is really a “price/output response” curve—a curve that traces out the price decisions and output decisions of all firms in the economy under a given set of circumstances. ...
Memoirs of a Would-be Macroeconomist
... various viewpoints disagree. Under what circumstances is fiscal policy effective? Should we be looking at the financial sector primarily in terms of the conditions of credit markets, or is it sufficient to look at the money supply and the short-term interest rate? Is unemployment caused by an abovee ...
... various viewpoints disagree. Under what circumstances is fiscal policy effective? Should we be looking at the financial sector primarily in terms of the conditions of credit markets, or is it sufficient to look at the money supply and the short-term interest rate? Is unemployment caused by an abovee ...
Dating the Portuguese business cycle
... a now widely accepted definition of business cycles was provided (p. 3): Business cycles are a type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many econ ...
... a now widely accepted definition of business cycles was provided (p. 3): Business cycles are a type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many econ ...
ba economics
... 1. To impart knowledge on the factors which are responsible for the emergence of different economic systems. 2. To study the framework, working mechanism, and distinctive features of different economic system 3. To examine the relevance of different economic systems in relation to the present econom ...
... 1. To impart knowledge on the factors which are responsible for the emergence of different economic systems. 2. To study the framework, working mechanism, and distinctive features of different economic system 3. To examine the relevance of different economic systems in relation to the present econom ...
Italian Circuitist Approach
... recalled, the theory would lead to a model of the economy with the double features of a “barter economy” (money has no significant function) and of a “cooperative economy” (agents take production decisions together and share the final product); 2) firms pay money wages in advance. It is evident tha ...
... recalled, the theory would lead to a model of the economy with the double features of a “barter economy” (money has no significant function) and of a “cooperative economy” (agents take production decisions together and share the final product); 2) firms pay money wages in advance. It is evident tha ...
MICHAL KALECKI
... the contemporary New Keynesian claim that with a strong enough price flexibility unemployment might be removed no matter how low investment is. However, Kalecki’s viewpoint was different from theirs. In the first place, due to the pervasiveness of market imperfections in modern capitalism, he did no ...
... the contemporary New Keynesian claim that with a strong enough price flexibility unemployment might be removed no matter how low investment is. However, Kalecki’s viewpoint was different from theirs. In the first place, due to the pervasiveness of market imperfections in modern capitalism, he did no ...
Towards an integrated theory of value, capital and money
... by their production or acquisition, and a ‘labour-commanded’ theory that applied to a capitalist society where production was undertaken for profit and addressed to the market. The external measure of value was money; the internal measure was the amount of labour-time for which a commodity exchanged ...
... by their production or acquisition, and a ‘labour-commanded’ theory that applied to a capitalist society where production was undertaken for profit and addressed to the market. The external measure of value was money; the internal measure was the amount of labour-time for which a commodity exchanged ...
Monetary Growth and Business Cycles
... periods by external factors, such as the discovery of new sources of gold, and in other periods, by conscious policy decisions, such as increases in discount rates or reserve requirements. In each case, however, appreciable changes in the rate of monetary growth have been accompanied by appreciable ...
... periods by external factors, such as the discovery of new sources of gold, and in other periods, by conscious policy decisions, such as increases in discount rates or reserve requirements. In each case, however, appreciable changes in the rate of monetary growth have been accompanied by appreciable ...
Shifting gear: why have neutral interest rates fallen?
... 5. Measurement of neutral interest rates We have seen these changes in the real economy, but how in practice do we estimate the level of the neutral interest rate? Neutral interest rates are not observable in the way that the 90-day rate or retail interest rates are. Instead, neutral has to be infer ...
... 5. Measurement of neutral interest rates We have seen these changes in the real economy, but how in practice do we estimate the level of the neutral interest rate? Neutral interest rates are not observable in the way that the 90-day rate or retail interest rates are. Instead, neutral has to be infer ...
What is critical urban theory?
... but most crucially here, Frankfurt School theorists also applied it to the realm of social science. In this sense, critical theory entails a forceful rejection of instrumental modes of social scientific knowledge—that is, those designed to render existing institutional arrangements more efficient an ...
... but most crucially here, Frankfurt School theorists also applied it to the realm of social science. In this sense, critical theory entails a forceful rejection of instrumental modes of social scientific knowledge—that is, those designed to render existing institutional arrangements more efficient an ...
Small open economies in the vast ocean of global high finance
... 1. The table shows the development of each variable compared to its long-term trend for the five years in the run-up to and in the aftermath of a financial crisis (starting in 2008). The long-term trend is estimated for 1870-2013 using the Hodrick-Prescott filter with a smoothing parameter equal to ...
... 1. The table shows the development of each variable compared to its long-term trend for the five years in the run-up to and in the aftermath of a financial crisis (starting in 2008). The long-term trend is estimated for 1870-2013 using the Hodrick-Prescott filter with a smoothing parameter equal to ...
Money, Interest, and Capital Accumulation in Karl Marx`s
... crisis. In the second part of the paper we will show that Marx’s theory of labour value has to be considered a „monetary theory of value“ because „abstract labour“ as the social substance of value cannot be measured without a social standard of value. Money as a social representative of value, there ...
... crisis. In the second part of the paper we will show that Marx’s theory of labour value has to be considered a „monetary theory of value“ because „abstract labour“ as the social substance of value cannot be measured without a social standard of value. Money as a social representative of value, there ...
Inflation Cycles
... But other sources might be international disturbances, climate fluctuations, or natural disasters. We’ll explore RBC theory by looking first at its impulse and then at the mechanism that converts that impulse into a cycle in real GDP. ...
... But other sources might be international disturbances, climate fluctuations, or natural disasters. We’ll explore RBC theory by looking first at its impulse and then at the mechanism that converts that impulse into a cycle in real GDP. ...
Aggregate Demand I: Building the IS
... • For an economy to be in equilibrium, unplanned increase in inventory must be zero • Therefore, actual expenditure = planned expenditure + unplanned increase in inventory = planned expenditure • But recall that actual expenditure is actual GDP or Y, and planned expenditure is C + I + G • Therefore, ...
... • For an economy to be in equilibrium, unplanned increase in inventory must be zero • Therefore, actual expenditure = planned expenditure + unplanned increase in inventory = planned expenditure • But recall that actual expenditure is actual GDP or Y, and planned expenditure is C + I + G • Therefore, ...
A socioeconomics approach
... closely linked to nominal GDP (this can be stated alternatively as velocity had become unstable). Further, it did seem to many that money matters, in the sense that monetary policy affects unemployment and growth in fairly predictable—even if moderate—ways. Without money rules to guide them, central ...
... closely linked to nominal GDP (this can be stated alternatively as velocity had become unstable). Further, it did seem to many that money matters, in the sense that monetary policy affects unemployment and growth in fairly predictable—even if moderate—ways. Without money rules to guide them, central ...
Modern Money: Fiat or Credit? Author(s): Perry Mehrling Source:
... anotherof Wray's secondarypropositions. All these propositionsare asserted to go throughalso in an economy with private productionfor private markets in which households and businesses issue andtradetheir own financialassets. "Oncehouseholds have a demandfor governmentfiat money to pay taxes, it is ...
... anotherof Wray's secondarypropositions. All these propositionsare asserted to go throughalso in an economy with private productionfor private markets in which households and businesses issue andtradetheir own financialassets. "Oncehouseholds have a demandfor governmentfiat money to pay taxes, it is ...
Keynes`s Theory of Depression
... would require a much smaller percent increase in spending by businesses to make up the difference. In fact, this is what would be experienced in the economy. If wage rates, total wage payments, and consumption decline and businesses thus have more funds available for the purchase of capital goods, a ...
... would require a much smaller percent increase in spending by businesses to make up the difference. In fact, this is what would be experienced in the economy. If wage rates, total wage payments, and consumption decline and businesses thus have more funds available for the purchase of capital goods, a ...
NBER WORKING PAPER SERIES RECENT DEVELOPMENTS IN MACROECONOMICS Working Paper No. 2473
... should have produced a greater than one—for—one effect of inflation on nominal ...
... should have produced a greater than one—for—one effect of inflation on nominal ...
PDF
... ideas of Slutsky (1927) and Frisch (1933), this theory is based on the hypotheses of perfect markets and rational expectations. RBC theory states that business cycles are due to exogenous shocks in “real” (i.e. not purely monetary) variables and processes (e.g., sudden changes in technology, consum ...
... ideas of Slutsky (1927) and Frisch (1933), this theory is based on the hypotheses of perfect markets and rational expectations. RBC theory states that business cycles are due to exogenous shocks in “real” (i.e. not purely monetary) variables and processes (e.g., sudden changes in technology, consum ...
Endogenous Business Cycles and the Economic Response to
... ideas of Slutsky (1927) and Frisch (1933), this theory is based on the hypotheses of perfect markets and rational expectations. RBC theory states that business cycles are due to exogenous shocks in “real” (i.e. not purely monetary) variables and processes (e.g., sudden changes in technology, consum ...
... ideas of Slutsky (1927) and Frisch (1933), this theory is based on the hypotheses of perfect markets and rational expectations. RBC theory states that business cycles are due to exogenous shocks in “real” (i.e. not purely monetary) variables and processes (e.g., sudden changes in technology, consum ...
The Money Supply and the Federal Reserve System
... reduced, the planned aggregate expenditure function may shift from C + I + Gʹ to C + Iʹ + Gʹ because the reduction in output will cause A) money supply to increase, the interest rate to decrease, and planned investment to increase. B) money supply to decrease, the interest rate to decrease, and plan ...
... reduced, the planned aggregate expenditure function may shift from C + I + Gʹ to C + Iʹ + Gʹ because the reduction in output will cause A) money supply to increase, the interest rate to decrease, and planned investment to increase. B) money supply to decrease, the interest rate to decrease, and plan ...