- Economic Growth and Distribution:On the
... the meanwhile, it should be appreciated that in the Classical-Keynesian approach social spending can represent an engine of growth, so that there is no necessary contradiction between greater social equity and growth.5 Welfare State expansion, although favourable to stable economic growth may howeve ...
... the meanwhile, it should be appreciated that in the Classical-Keynesian approach social spending can represent an engine of growth, so that there is no necessary contradiction between greater social equity and growth.5 Welfare State expansion, although favourable to stable economic growth may howeve ...
Keynes`s Approach to Full Employment
... hoped from proposals to offset unforeseen short-period fluctuations in investment by stimulating short-period changes in consumption” (Keynes 1980: 323). Keynes’s objections would also rule out Post Keynesian proposals of a social dividend (as in Robinson [1949]),4 and basic income guarantees (as in ...
... hoped from proposals to offset unforeseen short-period fluctuations in investment by stimulating short-period changes in consumption” (Keynes 1980: 323). Keynes’s objections would also rule out Post Keynesian proposals of a social dividend (as in Robinson [1949]),4 and basic income guarantees (as in ...
The Effectiveness of Government Spending in Deep Recessions: A
... Regardless of how low inflation may be expected to go or how severe a recession is, the central bank cannot reduce the nominal interest rate any further than to a level of zero. Importantly, once that bound on the interest rate is reached, the more depressed economic activity is, and thus the lower ...
... Regardless of how low inflation may be expected to go or how severe a recession is, the central bank cannot reduce the nominal interest rate any further than to a level of zero. Importantly, once that bound on the interest rate is reached, the more depressed economic activity is, and thus the lower ...
Paper - The Institute for New Economic Thinking
... and after the subprime financial crisis. First, it was realized that the short-term downturn was much larger than anything that the mainstream economic models (e.g., calibrated Dynamic Stochastic General Equilibrium (DSGE) models) could predict or handle. Second, it was also realized, after a while, ...
... and after the subprime financial crisis. First, it was realized that the short-term downturn was much larger than anything that the mainstream economic models (e.g., calibrated Dynamic Stochastic General Equilibrium (DSGE) models) could predict or handle. Second, it was also realized, after a while, ...
Unit 5 - Models of Output Determination
... is the foundation for neo-classical and Austrian school economics, rational expectationism, and monetarism. was dominant before the 1920s. Gained in popularity again since the 1980s. Macroeconomics ...
... is the foundation for neo-classical and Austrian school economics, rational expectationism, and monetarism. was dominant before the 1920s. Gained in popularity again since the 1980s. Macroeconomics ...
Macroeconomic Model Database (MODELBASE)
... V. A More Realistic Path for Government Purchases Although a permanent increase in government purchases of goods and services is a good way to understand the properties of a model, it is not a realistic description of the fiscal policy packages under consideration in the United States and other coun ...
... V. A More Realistic Path for Government Purchases Although a permanent increase in government purchases of goods and services is a good way to understand the properties of a model, it is not a realistic description of the fiscal policy packages under consideration in the United States and other coun ...
Free Full Text ( Final Version , 264kb )
... idea was that a ‘Social dividend’ (a weekly note for 1 £ by the post every Saturday, to every citizen) provided possibilities for changing the supply of money and the level of aggregate demand in any given economy. As she put it, “If there is unemployment on the one hand and unsatisfied needs on the ...
... idea was that a ‘Social dividend’ (a weekly note for 1 £ by the post every Saturday, to every citizen) provided possibilities for changing the supply of money and the level of aggregate demand in any given economy. As she put it, “If there is unemployment on the one hand and unsatisfied needs on the ...
Principles of Macroeconomics - Webarchiv ETHZ / Webarchive ETH
... Falling interest rates increase the quantity of goods and services demanded. ...
... Falling interest rates increase the quantity of goods and services demanded. ...
What Ended the Great Depression? - Levy Economics Institute of
... bringing the system back to equilibrium, and a moderate amount of fiscal policy is only necessary as a result of the short-term rigidities. Once the money or banking rate of interest is aligned with the natural rate of interest, the system would return to full employment.7 The problem with the conve ...
... bringing the system back to equilibrium, and a moderate amount of fiscal policy is only necessary as a result of the short-term rigidities. Once the money or banking rate of interest is aligned with the natural rate of interest, the system would return to full employment.7 The problem with the conve ...
Economics 448W – Current Macroeconomic Issues Prof. Steven
... A central focus of this course is how well evidence aligns with different theoretical perspectives. We want to explain how modern developed economics, the US in particular, operate in the reality of the early 21st century. The best way to understand realworld macroeconomics is usually not clear cut. ...
... A central focus of this course is how well evidence aligns with different theoretical perspectives. We want to explain how modern developed economics, the US in particular, operate in the reality of the early 21st century. The best way to understand realworld macroeconomics is usually not clear cut. ...
Keynesian Foundations of Modern Macroeconomics
... 1. What is the multiplier principle? What determines the size of the multiplier? Does the multiplier principle make it more or less difficult to stabilize the economy? Explain. 2. Widespread acceptance of the Keynesian aggregate expenditure (AE) model took place during and immediately following the ...
... 1. What is the multiplier principle? What determines the size of the multiplier? Does the multiplier principle make it more or less difficult to stabilize the economy? Explain. 2. Widespread acceptance of the Keynesian aggregate expenditure (AE) model took place during and immediately following the ...
The IS curve.
... 3. Keynesian Theory The Keynesian theory is a set of economic theories pioneered by John Maynard Keynes in his seminal work, The General Theory of Employment, Interest, and Money (1936). The crux of the Keynesian theory lies on the belief that the private sector does not always possess the self-cor ...
... 3. Keynesian Theory The Keynesian theory is a set of economic theories pioneered by John Maynard Keynes in his seminal work, The General Theory of Employment, Interest, and Money (1936). The crux of the Keynesian theory lies on the belief that the private sector does not always possess the self-cor ...
here - Hans-Böckler
... which is equal to the sum of real consumption spending (C), planned investment spending (I), government spending (G) and exports (X) minus imports (M). Equation (6) determines aggregate consumption. It is a positive function of disposable income, a negative function of the real interest rate, and a ...
... which is equal to the sum of real consumption spending (C), planned investment spending (I), government spending (G) and exports (X) minus imports (M). Equation (6) determines aggregate consumption. It is a positive function of disposable income, a negative function of the real interest rate, and a ...
Grundzüge Mikroökonomik Arbeitsunterlage 4: Grundlagen der
... - The World Economic Crisis was lasting much longer than Hayek expected and was finally overcome in Germany (and later in other countries too) when the government started military spending programs. ...
... - The World Economic Crisis was lasting much longer than Hayek expected and was finally overcome in Germany (and later in other countries too) when the government started military spending programs. ...
Contents - Scuola Superiore Sant`Anna
... Understanding why the economy fluctuates over time is perhaps one of the main tasks of macroeconomics. According to Snowdon and Vane (2005, p. 304), for example, the central goal of macroeconomics is to provide “coherent and robust explanations of aggregate movements of output, employment and the pr ...
... Understanding why the economy fluctuates over time is perhaps one of the main tasks of macroeconomics. According to Snowdon and Vane (2005, p. 304), for example, the central goal of macroeconomics is to provide “coherent and robust explanations of aggregate movements of output, employment and the pr ...
The AD Curve
... was caused by an oversupply of goods that glutted the market. They wanted the government to hire the unemployed even if the work was not needed. ...
... was caused by an oversupply of goods that glutted the market. They wanted the government to hire the unemployed even if the work was not needed. ...
Lecture 10: Macro: Simple Keynesian Model of Aggregate Demand
... Neoclassical economists assumed • That the employment of labor would be determined by the supply and demand for labor, along with the wage in purchasing power terms. • The employment of labor, together with the productivity of labor, would determine production as measured by RGDP. • Then the Great ...
... Neoclassical economists assumed • That the employment of labor would be determined by the supply and demand for labor, along with the wage in purchasing power terms. • The employment of labor, together with the productivity of labor, would determine production as measured by RGDP. • Then the Great ...
Chapter 34
... • Government purchases are said to have a multiplier effect on aggregate demand. • Each dollar spent by the government may raise the aggregate demand for goods and services by more than a dollar. • Government spending increases income and thereby increases consumer spending which leads to further in ...
... • Government purchases are said to have a multiplier effect on aggregate demand. • Each dollar spent by the government may raise the aggregate demand for goods and services by more than a dollar. • Government spending increases income and thereby increases consumer spending which leads to further in ...
as a PDF
... (1998) stress an effect on labour markets. The argument is that higher income taxes will reduce the labour supply by shifting the decision between spare time and work towards spare time as taxes reduce wages. This theory was developed further by Alesina and Ardagna (1999) where a link between labour ...
... (1998) stress an effect on labour markets. The argument is that higher income taxes will reduce the labour supply by shifting the decision between spare time and work towards spare time as taxes reduce wages. This theory was developed further by Alesina and Ardagna (1999) where a link between labour ...
2.4 Fiscal Policy
... small increase in the price level. Also there is a relatively large deflationary gap so increases in AD do not cause demand-pull inflation. As there is lots of spare capacity and there are lots of factors available, firms are easily able to increase output in response to an increase in aggregate dem ...
... small increase in the price level. Also there is a relatively large deflationary gap so increases in AD do not cause demand-pull inflation. As there is lots of spare capacity and there are lots of factors available, firms are easily able to increase output in response to an increase in aggregate dem ...
Lecture 11 Monetary and Fiscal Policy
... • People choose to hold money instead of other assets that offer higher rates of return because money can be used to buy goods and services. • The opportunity cost of holding money is the interest that could be earned on interest-earning assets. • An increase in the interest rate raises the opportun ...
... • People choose to hold money instead of other assets that offer higher rates of return because money can be used to buy goods and services. • The opportunity cost of holding money is the interest that could be earned on interest-earning assets. • An increase in the interest rate raises the opportun ...
Intention, Immanence, and the Individual in Development Theory
... means to re-create a world in which it is once again possible to pursue social goals through the collective effort of the societies and communities to which people belong.” What we have here is an expression of a distinction in development theory between development as something that happens and dev ...
... means to re-create a world in which it is once again possible to pursue social goals through the collective effort of the societies and communities to which people belong.” What we have here is an expression of a distinction in development theory between development as something that happens and dev ...