in International Studies. Any expressed are those of the
... The point of this paper is a technical one: In the United States, dynamic inconsistencies do not result from treating government expenditures, taxes, and base—nioney growth as simultaneously exogenous. A current deficit is therefore not per se inflationary in the sense of requiring future increased ...
... The point of this paper is a technical one: In the United States, dynamic inconsistencies do not result from treating government expenditures, taxes, and base—nioney growth as simultaneously exogenous. A current deficit is therefore not per se inflationary in the sense of requiring future increased ...
The Great Depression
... Prices and the Output Ratio • Does the behavior of output and the price level support the Keynesian assumption of rigid nominal wages or the classical interpretation of a self-correcting economy? – If the classical story is correct, then decreases in the price level should cause the economy to retu ...
... Prices and the Output Ratio • Does the behavior of output and the price level support the Keynesian assumption of rigid nominal wages or the classical interpretation of a self-correcting economy? – If the classical story is correct, then decreases in the price level should cause the economy to retu ...
MACROECONOMICS. FALL 2010. EXAM 1.
... MACROECONOMICS. FALL 2010. EXAM 1. 2) [20 POINTS] In Ghana, the velocity of money is constant. Real GDP grows by 10% per year, the money stock grows by 25% per year and the nominal interest rate is 21%. Calculate the real interest rate? The real interest rate is the difference between the nominal i ...
... MACROECONOMICS. FALL 2010. EXAM 1. 2) [20 POINTS] In Ghana, the velocity of money is constant. Real GDP grows by 10% per year, the money stock grows by 25% per year and the nominal interest rate is 21%. Calculate the real interest rate? The real interest rate is the difference between the nominal i ...
Principles of Macroeconomics
... Suppose that the lack confidence in the United State’s banking system causes depositors to withdrawal $10 million from their bank accounts and convert it into cash. After the banks have time to adjust (so that excess reserves are zero again), how much will M1 change by? What will be the impact on th ...
... Suppose that the lack confidence in the United State’s banking system causes depositors to withdrawal $10 million from their bank accounts and convert it into cash. After the banks have time to adjust (so that excess reserves are zero again), how much will M1 change by? What will be the impact on th ...
Money matters
... argued that the “liquidity trap” cited by Keynesian fiscalists for the impotence of monetary policy was a paper tiger. The quantitative easing by the US Fed, the UK’s Bank of England, and the ECB had increased the broad money supply (M2/M3) in their respective regions, which through the “real balanc ...
... argued that the “liquidity trap” cited by Keynesian fiscalists for the impotence of monetary policy was a paper tiger. The quantitative easing by the US Fed, the UK’s Bank of England, and the ECB had increased the broad money supply (M2/M3) in their respective regions, which through the “real balanc ...
