• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
How The Macro economy Works
How The Macro economy Works

... exports (balance of payments deficit) AD will be reduced • If more money is being spent on exports than imports (balance of payments surplus) AD will be increased ...
Section 6 AP Macroeconomics Inflation, Unemployment
Section 6 AP Macroeconomics Inflation, Unemployment

... 2. Economists argue that money is n__________ in the long run. 3. How does money neutrality work? ...
Economic Theories
Economic Theories

... economists usually must make certain assumptions. But economists often differ in their assumptions. – For example, one economist might assume that the federal budget deficit will become larger next year. Another might not. – These different assumption could be the result of their assumptions about e ...
Economic Indicators PPT
Economic Indicators PPT

... • This is a bad form of unemployment. These workers have a difficult time finding new jobs because their skills are not needed. Need to be re-trained for the new job market ...
Read Publication - Policy Exchange
Read Publication - Policy Exchange

... experience of Germany). I believe that this will be the combined result of natural recovery-driven growth and massive and unsustainable investment driven by huge monetary growth. The model I have in mind is the early 1970s. Output in 1973Q1 was 10% higher than in 1972Q1; capital formation rose over ...
Slide 1
Slide 1

... discretionary monetary policy, and which argued—based on a belief that the velocity of money was stable—that GDP would grow steadily if the money supply grew steadily, was influential for a time but was eventually rejected by many macroeconomists. 4. The natural rate hypothesis became almost univers ...
business cycle
business cycle

... by risk sharing employment contracts. However, I will not go into these in this essay. Finally I have not talked about how RBC can explain the monetary variation. There are two ways of introducing money to RBC – by relying on Walrasian framework, or not. Although the latter approach seems more promi ...
It’s All About Interest Rates
It’s All About Interest Rates

... What most people don’t know about what really makes our economy go. (…… but should) ...
ECON 3080-002 Intermediate Macroeconomic Theory
ECON 3080-002 Intermediate Macroeconomic Theory

... Macroeconomics ls the study of the economy in the aggregate. The analysis centers on the factors determining the level of national output, employment, inflation, and interest rates. There is considerable disagreement between various schools of macroeconomic thought about how the economy works . The ...
The Enduring Legacy Of John Maynard Keynes
The Enduring Legacy Of John Maynard Keynes

... control of money supply as the key for countering America’s prolonged recession. Volker, the Federal Reserve Bank Governor became the executioner through incredible repo rate hike. From the heady pedestal of an infallible economist Keynes became a pariah in economics with Macro Economics being divid ...
Keynes Theory and Sample Questions
Keynes Theory and Sample Questions

... holding money fell, so holding money became a more viable option. c. Loanable Funds Perspective – a more recent approach Why do people demand money? To purchase goods and services When do people demand goods and services? When the prices of these items fall. As interest rates fall, the price of big ...
Boom or Bust - kristinaaustin
Boom or Bust - kristinaaustin

... Contraction. When the demand for goods and services starts to fall and unemployment rises, the peak has passed. The business cycle has entered its third phase, known as contraction. This is considered to be a bad time for consumers and businesses. Consumers are spending less and saving more—buying o ...
Chapter 17 ppoint
Chapter 17 ppoint

... discretionary monetary policy, and which argued—based on a belief that the velocity of money was stable—that GDP would grow steadily if the money supply grew steadily, was influential for a time but was eventually rejected by many macroeconomists. 4. The natural rate hypothesis became almost univers ...
The Great Economic Depression and the Fiscal Policy
The Great Economic Depression and the Fiscal Policy

... depression as a single episode, however it is composed of two business cycles. Contractile phase of the first business cycle lasted 43 months, from August 1929 until March 1933god, and is the largest economic downturn in US history. After Roosevelt became president in March 1933 and implemented a pa ...
The Political Business Cycle
The Political Business Cycle

... discretionary monetary policy, and which argued—based on a belief that the velocity of money was stable—that GDP would grow steadily if the money supply grew steadily, was influential for a time but was eventually rejected by many macroeconomists. 4. The natural rate hypothesis became almost univers ...
19 BUSINESS CYCLES
19 BUSINESS CYCLES

... 4. The Great Depression of the 1930s revealed flaws in the classical way of thinking. The economy went into a depression and showed no sign of recovery. This could not happen in a classical world. 5. An alternate theory to the classical view was provided by John Maynard Keynes. He concluded that the ...
Why the US Economy Is Not Depression-Proof
Why the US Economy Is Not Depression-Proof

... I would like to thank Kenna Taylor of Rollins College, Larry Wimmer of Brigham Young University, Murray Rothbard of the University of Nevada at Las Vegas, Walter Block of the Fraser Institute, and Harry Browne for their comments and suggestions. Special thanks go to Warren Heller of Veribanc, Inc., ...
keynesian economics - Cabarrus County Schools
keynesian economics - Cabarrus County Schools

... Demand-side economics – the idea that govt. spending and tax cuts help an economy by raising demand John Maynard Keynes - developed this theory after the Great Depression. His ultimate goal was to tell economists and politicians how to get out of and avoid economic crisis. Keynes believe that 2 thin ...
practice essay - The Bored of Studies Community
practice essay - The Bored of Studies Community

... crash of Wall St. in 1987 and the Asian Crisis of 1997. The Asian Crisis caused world GDP to fall 2% in the following year and has left lasting effects on the countries involved in the crisis. The Asian Crisis was caused by a collapse of the Thai Baht which triggered increasing uncertainty toward th ...
Business Cycles
Business Cycles

... a recession households will cut back more on purchases of durables than they will on purchases of services. • The establishment of unemployment insurance and other government transfer programs that provide funds to the unemployed. Government programs enacted after the 1930s have made it possible for ...
Bank of England Inflation Report February 2015 Money and asset
Bank of England Inflation Report February 2015 Money and asset

... (b) Number of residential property transactions for values of £40,000 or above. ...
T Low Interest Rates Have Yet To Spur Job Growth
T Low Interest Rates Have Yet To Spur Job Growth

... target rate unchanged until the unemployment rate falls to 6.5 percent or inflation projections rise to 2.5 percent. According to the most recent FOMC forecasts, neither is expected to occur before 2015. ...
EC5102 Macroeconomic Theory Instructor: Zhang Jie Course
EC5102 Macroeconomic Theory Instructor: Zhang Jie Course

... This course is designed to provide modern macroeconomic models which are essential in the study of economics at the graduate level. The course will develop the key models and techniques in use in modern macroeconomics. The course materials will analyze the general equilibrium foundations and the two ...
The Federal Reserve
The Federal Reserve

... Interest Rates and Spending • If the Fed adopts an easy money policy, it will increase the money supply. This will lower interest rates and increase spending. This causes the economy to expand. • If the Fed adopts a tight money policy, it will decrease the money supply. This will push interest rates ...
ECON 3080-002 Intermediate Macroeconomic Theory
ECON 3080-002 Intermediate Macroeconomic Theory

... The Age Of Diminished Expectations-Paul Krugman, 1994 The goal of this course is to prepare students for higher-level economics courses by providing them with background in current macroeconomic theory. The objective will be to teach the microeconomic foundations of the macroeconomy and use these to ...
< 1 ... 40 41 42 43 44 45 46 47 48 ... 65 >

Austrian business cycle theory

The Austrian business cycle theory (ABCT) is an economic theory developed by the Austrian School of economics about how business cycles occur. The theory views business cycles as the consequence of excessive growth in bank credit, due to artificially low interest rates set by a central bank or fractional reserve banks. The Austrian business cycle theory originated in the work of Austrian School economists Ludwig von Mises and Friedrich Hayek. Hayek won the Nobel Prize in economics in 1974 (shared with Gunnar Myrdal) in part for his work on this theory.Proponents believe that a sustained period of low interest rates and excessive credit creation result in a volatile and unstable imbalance between saving and investment. According to the theory, the business cycle unfolds in the following way: Low interest rates tend to stimulate borrowing from the banking system. It is argued that this leads to an increase in capital spending funded by newly issued bank credit. Proponents hold that a credit-sourced boom results in widespread malinvestment. In the theory, a correction or ""credit crunch"" – commonly called a ""recession"" or ""bust"" – occurs when the credit creation has run its course. Then the money supply contracts, causing resources to be reallocated back towards their former uses.The Austrian explanation of the business cycle differs significantly from the mainstream understanding of business cycles and is generally rejected by mainstream economists. Mainstream economists generally do not support Austrian school explanations for business cycles, on both theoretical as well as real-world empirical grounds.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report