NBER WORKING PAPER SERIES ON THE ORIGINS OF "A MONETARY HISTORY"
... replaced Mitchell as director of the NBER, asked Friedman to take over.6 The choice of Friedman made sense. Friedman had successfully completed several projects at the Bureau. He had already, moreover, developed an interest in the problem of inflation while working at the Treasury in World War II, ...
... replaced Mitchell as director of the NBER, asked Friedman to take over.6 The choice of Friedman made sense. Friedman had successfully completed several projects at the Bureau. He had already, moreover, developed an interest in the problem of inflation while working at the Treasury in World War II, ...
Fiscal Multiplier in a Liquidity Constrained New Keynesian Economy∗
... investment falls since the higher real interest rate increases the opportunity cost of investing in physical capital, thus the …scal multiplier is less than 1. In the DEFK model, the multiplier is large for two reasons. First, unlike in the standard model, a bond-…nanced government spending expansio ...
... investment falls since the higher real interest rate increases the opportunity cost of investing in physical capital, thus the …scal multiplier is less than 1. In the DEFK model, the multiplier is large for two reasons. First, unlike in the standard model, a bond-…nanced government spending expansio ...
Money and generalized exchange: A critical look at Neo
... money that we cannot say about the equilibrium of non-monetary economy” (Hahn, 1973, p. 160). This interpretation is from my point of view incorrect. As made clear by some of the main general equilibrium theorists, in particular Gerald Debreu (1921-2004), the proof of existence of general equilibriu ...
... money that we cannot say about the equilibrium of non-monetary economy” (Hahn, 1973, p. 160). This interpretation is from my point of view incorrect. As made clear by some of the main general equilibrium theorists, in particular Gerald Debreu (1921-2004), the proof of existence of general equilibriu ...
Money Supply, Interest Rate, Liquidity and Share Prices
... In summary, the most plausible explanation of the relationship between money supply changes and stock returns conditional on liquidity effect seems to be a combination of the quantity theory of money and asset pricing model in portfolio setting. Monetary theory is enhanced by the introduction of liq ...
... In summary, the most plausible explanation of the relationship between money supply changes and stock returns conditional on liquidity effect seems to be a combination of the quantity theory of money and asset pricing model in portfolio setting. Monetary theory is enhanced by the introduction of liq ...
II -Macro Eco - University of Mumbai
... GNP is the total market value of all final goods and services produced in a year plus net income from abroad. This is the basic social accounting measure of the total output or aggregate supply of goods and services. GNP includes four type of final goods and services. First, consumers goods and serv ...
... GNP is the total market value of all final goods and services produced in a year plus net income from abroad. This is the basic social accounting measure of the total output or aggregate supply of goods and services. GNP includes four type of final goods and services. First, consumers goods and serv ...
Money Still Matters
... A number of social institutions arise to minimize these costs. The appearance of middlemen, for example, helps to facilitate a central meeting place for exchange. This emergence of organized markets helps to economize on information costs associated with strict barter. In addition, competition amon ...
... A number of social institutions arise to minimize these costs. The appearance of middlemen, for example, helps to facilitate a central meeting place for exchange. This emergence of organized markets helps to economize on information costs associated with strict barter. In addition, competition amon ...
Economists : Occupational Outlook Handbook : U.S. Bureau of
... Research and analyze economic issues Conduct surveys and collect data Analyze data using mathematical models and statistical techniques Prepare reports, tables, and charts that present research results Interpret and forecast market trends Advise businesses, governments, and individuals on economic t ...
... Research and analyze economic issues Conduct surveys and collect data Analyze data using mathematical models and statistical techniques Prepare reports, tables, and charts that present research results Interpret and forecast market trends Advise businesses, governments, and individuals on economic t ...
medo para poupar e medo de poupar - explicando trajetórias
... With the aim to understand the growing rates of private savings during the 1980s that achieved 30% of the GDP, some economists hypothesized that the puzzling trend could be explained by positive real interest rates. Nevertheless, some empirical research led to the conclusion that “the effect of real ...
... With the aim to understand the growing rates of private savings during the 1980s that achieved 30% of the GDP, some economists hypothesized that the puzzling trend could be explained by positive real interest rates. Nevertheless, some empirical research led to the conclusion that “the effect of real ...
On our own? The Icelandic business cycle in an international context
... imports (M ). Each sub-component is weighted with its average expenditure share over the same time period. From Figure 2b it can be seen that volatility in investment is almost always the largest contributor to fluctuations in output growth although its share in GDP is only around 20%.3 The excepti ...
... imports (M ). Each sub-component is weighted with its average expenditure share over the same time period. From Figure 2b it can be seen that volatility in investment is almost always the largest contributor to fluctuations in output growth although its share in GDP is only around 20%.3 The excepti ...
Mankiw 6e PowerPoints
... Competitive firms hire each factor until its marginal product equals its price. ...
... Competitive firms hire each factor until its marginal product equals its price. ...
Financial versus real economic variables in explaining growth and
... eventually lead to higher price and interest rates levels respectively. Also, this period is associated with an increase in imports. The third stage is the Peak phase, where GDP is beyond the full employment level, firms are nearing capacity, labor market is characterized by excess demand and the w ...
... eventually lead to higher price and interest rates levels respectively. Also, this period is associated with an increase in imports. The third stage is the Peak phase, where GDP is beyond the full employment level, firms are nearing capacity, labor market is characterized by excess demand and the w ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... derives theoretical support from Slutsky, who demonstrated that the accumulation of small shocks could generate data that mimicked the behavior of macroeconomic time series. It has been forcefully restated by Lucas (1977). The alternative view is less often articulated but clearly underlies many des ...
... derives theoretical support from Slutsky, who demonstrated that the accumulation of small shocks could generate data that mimicked the behavior of macroeconomic time series. It has been forcefully restated by Lucas (1977). The alternative view is less often articulated but clearly underlies many des ...
A Model of Moral Hazard Credit Cycles
... Since Becker and Stigler (1974) and Shapiro and Stiglitz (1984), it has been well understood in agency theory that dynamic moral-hazard problems with limited liability are efficiently solved by promising large end-of-career rewards for agents who maintain good performance records. So an efficient s ...
... Since Becker and Stigler (1974) and Shapiro and Stiglitz (1984), it has been well understood in agency theory that dynamic moral-hazard problems with limited liability are efficiently solved by promising large end-of-career rewards for agents who maintain good performance records. So an efficient s ...
Money Overhang, Credit Overhang and Financial Imbalances in the
... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt. 2 Feldstein and Horioka (1980) empirica ...
... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt. 2 Feldstein and Horioka (1980) empirica ...
The relevance of Keynes
... policy was being set by the doctrines of the Chicago School. Their ‘new classical economics’ was simply a mathematically souped-up version of the old classical economics, which Keynes had overthrown in the 1930s. Markets were deemed to be optimally self-regulating; the macroeconomic task of governme ...
... policy was being set by the doctrines of the Chicago School. Their ‘new classical economics’ was simply a mathematically souped-up version of the old classical economics, which Keynes had overthrown in the 1930s. Markets were deemed to be optimally self-regulating; the macroeconomic task of governme ...
The Contributions of Milton Friedman to Economics
... ilton Friedman died November 16, 2006, at the age of 94. Any attempt to put his contributions to economics into perspective can only begin to suggest the vast variety of ideas he discussed. Burton (1981, 53) commented that “attempting to portray the work of Milton Friedman . . . is like trying to ca ...
... ilton Friedman died November 16, 2006, at the age of 94. Any attempt to put his contributions to economics into perspective can only begin to suggest the vast variety of ideas he discussed. Burton (1981, 53) commented that “attempting to portray the work of Milton Friedman . . . is like trying to ca ...
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... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt.3 Feldstein and Horioka (1980) empirical ...
... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt.3 Feldstein and Horioka (1980) empirical ...
mmi14-vanveen 19106661 en
... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt.3 Feldstein and Horioka (1980) empirica ...
... between domestic savings and investments. The consequent current account imbalances are no problem in this view as well-functioning financial markets will price foreign assets and liabilities efficiently and prevent the emergence of unsustainable foreign debt.3 Feldstein and Horioka (1980) empirica ...
Leveraged Bubbles
... finance capitalism over the last 150 years. Financial crises and asset price boom-busts are relatively rare events. Thus, any empirical study must employ very long time series and the historical experience of more than one country to have any hope of conducting a reasonable statistical analysis, as ...
... finance capitalism over the last 150 years. Financial crises and asset price boom-busts are relatively rare events. Thus, any empirical study must employ very long time series and the historical experience of more than one country to have any hope of conducting a reasonable statistical analysis, as ...
Chapter 15: Explanations of Business Investment Spending
... (the GDP Deflator rose 41% of the same period). Thus, changes in the prices of capital goods do not explain the poor investment performance of that period. The same conclusion holds for the decade of the 1970s. However, in the second half of the 1990s, business investment spending boomed. About half ...
... (the GDP Deflator rose 41% of the same period). Thus, changes in the prices of capital goods do not explain the poor investment performance of that period. The same conclusion holds for the decade of the 1970s. However, in the second half of the 1990s, business investment spending boomed. About half ...
Inflation, Crisis and Money
... had successfully kept inflation around a desirable level for nearly twenty years by adjusting Bank Rate. Studies on the monetary policy of the BOE in this period concerned the issues of the interest rate response to the economy. Especially since Taylor-Rule type reaction functions had been used as a ...
... had successfully kept inflation around a desirable level for nearly twenty years by adjusting Bank Rate. Studies on the monetary policy of the BOE in this period concerned the issues of the interest rate response to the economy. Especially since Taylor-Rule type reaction functions had been used as a ...
NBER WORKING PAPER SERIES TOWARDS A THEORY OF CURRENT ACCOUNTS Jaume Ventura
... across countries for both permanent and temporary reasons, they constitute a source of variation in investment rates both between and within countries. Movements in the interest rate lead to synchronized movements in investment. If world saving is low and world average growth in population and produ ...
... across countries for both permanent and temporary reasons, they constitute a source of variation in investment rates both between and within countries. Movements in the interest rate lead to synchronized movements in investment. If world saving is low and world average growth in population and produ ...
Leveraged Bubbles
... varieties of asset price bubbles and the damage they might wreak on the economy. This paper aims to close this gap by studying the nexus between credit, asset prices, and economic outcomes in advanced economies since 1870. We use a dataset that spans the near universe of advanced economies in the er ...
... varieties of asset price bubbles and the damage they might wreak on the economy. This paper aims to close this gap by studying the nexus between credit, asset prices, and economic outcomes in advanced economies since 1870. We use a dataset that spans the near universe of advanced economies in the er ...
Lucas on the relationship between theory and ideology M. De Vroey
... The real business cycle literature offered a new methodology, both for theoretical analysis and for empirical testing. … It showed how [Lucas-type] models could be made quantitative, emphasizing the assignment of realistic numerical parameter values and the computation of numerical solutions to the ...
... The real business cycle literature offered a new methodology, both for theoretical analysis and for empirical testing. … It showed how [Lucas-type] models could be made quantitative, emphasizing the assignment of realistic numerical parameter values and the computation of numerical solutions to the ...
Velocity: Money`s Second Dimension
... expected increase in interest rates. Those who hold money because they believe the yield on money balances will exceed the yield on alternative assets are said to exhibit liquidity preference.1° Keynes hypothesized that more individuals expect a future increase in market interest rates when the curr ...
... expected increase in interest rates. Those who hold money because they believe the yield on money balances will exceed the yield on alternative assets are said to exhibit liquidity preference.1° Keynes hypothesized that more individuals expect a future increase in market interest rates when the curr ...